Corporate Bonds - Article Archive

  • QE restart sees rapacious ECB guzzle covered bonds

    The European Central Bank’s (ECB) overarching presence in the covered bond market was conspicuous this week but, with relative value waning and yields likely to fall, it may not prevent spread widening early next year. There was evidence of its hand too in the corporate bond market. Bill Thornhill, Burhan Khadbai and Mike Turner report.

  • Corporate dollar spurt too little too late

    Dollar volumes proved higher than expected as the US investment grade market roared back to life following earnings blackouts, with a string of front-loaded deals ahead of the Fed’s meeting on Wednesday.

  • Carmila sticks to curve in MTN debut

    French shopping centre operator Carmila visited the MTN market for the first time on Monday, 18 months after it last sold a bond via syndication. Rare issuer Toyota Industries Finance International returned to private placements at the end of last week to place its second euro floating rate MTN of the year.

  • JP Morgan unveils bond terms for Casino rescue

    French supermarket group Casino started marketing work for the bond it is relying on to unlock a new revolving credit facility, terming out its debt maturity and relieving some financial pressure.

  • Sustainability-linked Schuldscheine solidifies as trend

    Austrian cellulose fibre maker Lenzing has launched a Schuldschein with a sustainability-linked pricing ratchet, just days before Italian infrastructure engineering firm Maire Tecnimont came with its own sustainability-linked deal..

  • E.On breezes through as market looks for ECB activity

    Germany’s E.On came with a €500m no-grow 2031 trade on Thursday, as corporate bond syndicate bankers said it was still too early to judge the scale of the European Central Bank’s bond buying programme.

  • Lewellen lays out new top brass for Deutsche’s EMEA DCM biz

    Newly appointed EMEA investment grade DCM head Mark Lewellen has outlined the management team for Deutsche Bank’s bond operations in the region, creating a new role running real estate origination, giving Achim Linsenmaier responsibility for the public sector business, and giving Federica Calvetti environmental, social and governance responsibilities.

  • Verizon pioneers long hop in Kanga market

    Verizon Communications, the US telecoms group, returned for the second time to the Kangaroo market on Wednesday to extend its curve out to 20 years in what one lead manager described as a first for the market.

  • Maire Tecnimont ramps up sustainability delta in Schuldschein market

    Italian infrastructure engineering firm Maire Tecnimont has brought a sustainability-linked note to the Schuldschein market, the second to be launched this week. However, with this debut issue, the margin rise or fall is larger than the previous two, making it an interesting test for investors.

  • Gestamp closes as Schuldschein spreads toward Italy and Spain

    Gestamp, the Spanish automotive engineering company, has closed its Schuldschein with indications of a final size at about €180m. Market players believe that Spain and Italy may be the next key sources of growth in the years to come.

  • Nine lives: Zhenro returns for more dollar bonds

    Zhenro Properties Group returned to the dollar bond market for the ninth time in 2019 on Wednesday. The real estate borrower raised $300m from what is likely to be its last deal of the year.

  • Cromwell’s hopes of SSD debut remain alive

    One of the more fascinating transactions to reach the Schuldschein market in the past few months is from the European arm of Singapore-listed real estate investment trust (Reit) Cromwell. The transaction’s closing date was postponed by more than a month, as many away from the deal claimed the deal was struggling to find traction. But bankers close to the situation were quick to assure that it was still on track and investors just needed more time to analyse the credit.

  • Market awaits ECB largesse in high grade corps

    Germany’s Daimler and the Netherlands’ KPN were out for euro bonds on Wednesday. High grade corporate bond players kept an eagle eye on the trades to see what shape the European Central Bank’s bond buying programme would take this time round.

  • Atos cuts Wordline stake with complex block, EB combo

    Atos, the French IT services and consulting company, has reduced its exposure to Worldline via an intricate transaction involving a share sale, an exchangeable bond and a private placement of stock. In addition to the sale of shares owned by Atos, SIX Group entered into a collar transaction to hedge its exposure in Worldline.

  • Analysts give thumbs up to Fiat Chrysler-PSA merger

    Fiat Chrysler Automobiles (FCA) and France’s PSA Group are bringing a potential $50bn mega merger to Europe’s automobile market, with credit and equity analysts agreeing that the deal makes sense for both parties.

  • Dechra Pharmaceuticals to debut in US PPs

    Dechra Pharmaceuticals, the UK veterinary pharmaceuticals company, has entered the US private placement (US PP) market, according to sources, in a debut set to test institutional appetite for the sector.

  • SMC Global returns to perps with popular trade

    Philippine company SMC Global Power Holdings Corp has priced its second senior perpetual bond of the year, raising $500m from a four times covered deal at a yield that met the issuer’s target.

  • Abyss separates climate-conscious savers from sluggish financial sector

    The inertia dragging on financial markets’ response to climate change is brought home by an opinion poll in the UK, published on Wednesday. When asked questions in the survey, about 60% of people say financial institutions and banks should no longer invest in fossil fuels. Yet Shell and BP are still the first and third biggest stocks in the FTSE 100.

  • UKLAs loan squeeze makes no sense

    The Public Works Loans Board has given investment banks and asset managers the Christmas present they have been praying for for years. By hiking the cost of loans to local authorities, it will force them into private capital markets. Big mistake.

  • TVO makes opportunistic MTN return

    The Swedish krona MTN market’s bumper year received a further boost as nuclear power plant operator Teollisuuden Voima Oy (TVO) returned to the MTN market for the first time in five years to place a pair of notes in the currency. However, the return may be short lived, as TVO has plenty of access to cash and will take an opportunistic approach to future issuance.

  • Eli Lilly raises euros for dollar buyback

    US pharmaceuticals firm Eli Lilly headed out into the euro market on Tuesday for a €1.6bn dual tranche trade, which will partially finance a tender offer on dollar debt.

  • Alibaba backing sends Meinian dollar bond soaring

    Meinian Onehealth Healthcare Holdings Co’s only offshore bond rocketed in the secondary market after Chinese technology giant Alibaba Group Holding became its second largest shareholder.

  • Verizon prepares second mega-Kangaroo with longer legs

    Verizon Communications, the US telecoms group, is preparing to return to the Kangaroo bond market with a multi-tranche deal, offering maturities up to 20 years — far longer than its longest outstanding 10 year tranche.

  • Vicinity uses euro bond lull but tightens little

    Australia’s Vicinity Centres, a real estate investment trust, issued a €500m bond on Monday, slipping into what is expected to be a week of weak activity before the high grade bond markets light up again next month.

  • Sovereign Housing rides out Brexit noise

    Sovereign Housing Association, which has 58,000 homes, mainly in the southwest of England, received chunky demand for a 29 year sterling bond issue on Monday, as the extension of the UK's Brexit deadline piqued investors' appetite for sterling assets.

  • Rare Toyota Industries deal spices up MTN menu

    Infrequent issuer Toyota Industries Finance International revisited the MTN market at the end of last week to place its second euro floater of the year. Meanwhile, in dollars, a trio of emerging market banks have printed fixed and floating rate paper in the last week.

  • New World adds $400m to fixed-for-life perp

    New World Development Co reopened a perpetual bond from earlier this year that came with an aggressive fixed-for-life structure. It raised an additional $400m ahead of yet another widely-anticipated Federal Reserve interest rate cut this week.

  • SPDB closes in on big four FRN pricing

    Shanghai Pudong Development Bank Co priced a $300m floating rate note (FRN) at just a marginal premium over the curve of the big four Chinese lenders.

  • Adaro Energy skirts ESG hurdles for bond market return

    With the growth of socially responsible investing (SRI), coal companies are having an increasingly hard time appealing to bond investors. But Indonesia's Adaro Energy wooed accounts to its $750m deal with its efforts to clean up its business.

  • UK local authorities: prepare for a shock

    A UK government body providing cheap debt to local authorities increases its lending margins, so in step nimble institutional investors to capture a slice of a new asset class. It sounds poetically simple. The reality will be more prosaic.

  • Netflix boosts bond size as it tools up for content competition

    Streaming giant Netflix sold a $2.2bn 10.5-year bond euros and dollars this week, as it prepares to battle Disney and Apple for content. The unsecured senior notes come with a non-call life clause, offered to investors as a carrot, which helped get the deal size up from the announced $2bn issue.

  • Delta comes with a belter

    Dollar supply is set to begin its year-end dash in the coming days after earnings season peaked.

  • PWLB rate rise shoves UK councils towards private markets

    The UK Treasury’s decision to raise the cost of borrowing for local authorities has caused quite a stir in private placement markets, as players realise institutional investors are prepared to offer debt at more attractive rates than the Public Works Loan Board (PWLB). But the more adventurous local authorities may find capital markets a tougher pitch to play on, writes Silas Brown.

  • People moves in brief

    JP Morgan changes line-up for energy and utilities, multi-nationals, UK ECM and UK M&A — UniCredit swaps out CEE investment bank head — Pigasse exits Lazard

  • IG buyers fret CSPP might not be enough

    High grade corporate bond investors found themselves in a tricky spot this week, with issuers entering earnings blackout periods just as the European Central Bank adds a huge technical bid in the form of its asset purchase scheme. Meanwhile, the macroeconomic picture is starting to look increasingly frayed at the edges for debt markets. Mike Turner reports.

  • Yield-hungry investors swarm Accor hybrid

    Investors piled into a new hybrid bond for hotel group Accor this week to oversubscribe the €500m deal by almost six times. The demand reflected a ramping up of the hunt for yield as the European Central Bank stokes the fires of its corporate bond buying programme.