Corporate Bonds - Article Archive

  • PWLB’s lending level to local authorities rises, sets PP agents' eyes alight

    Capital markets have long been unattractive funding routes for UK local authorities as the Public Works Loan Board (PWLB) — a government body that provides loans from the National Loans Fund to public bodies — has offered lending levels that public and private markets couldn’t compete with. But a recent Treasury announcement may have tipped the scales in PP players' favour.

  • Dollar market slows to trickle

    US corporate dollar bond supply is on course for a disappointing month after the size of the new issue calendar fell short of expectations for the second week running.

  • Brexit deal chance lights up UK cap market hopes

    A surprise agreement between the UK government and the European Union has led to renewed optimism for the country's capital markets. There is hope that an orderly Brexit, or even a long extension, will lead to an increase in investment from UK companies, particularly in the form of M&A. Investors are more than willing to finance these deals, write Sam Kerr, Jasper Cox and Mike Turner.

  • Bel sells first sustainability-linked Euro PP notes

    The Bel Group, the French cheese company behind brands Babybel and The Laughing Cow, has become the first company to issue Euro private placement (Euro PP) notes with sustainability-linked margins, following in the footsteps of the loan market, the Schuldschein market and subsequently the bond market.

  • E.On and Engie sooth jitters over wider spreads

    E.On and Engie pushed ahead with tightly priced deals on Thursday, easing concerns from earlier in the week that ZF Freidrichshafen’s widely priced bonds would create a new level for issuance.

  • Single-B rated Kaisa revives Chinese HY property 144A bonds

    Chinese real estate company Kaisa Group Holdings chose to go down the 144A route for its latest bond, raising $400m from a deal that hit the higher end of its size expectations. But bankers say it is unlikely many issuers will follow suit. Addison Gong reports.

  • CNTS meets leftover demand with longer bonds

    Chinese central government-owned China National Travel Service Group Corp (CNTS) made a quick return to the dollar bond market this week, extending its maturity profile with a $600m dual-tranche transaction.

  • Mann+Hummel struggles in Schuldschein market amid splurge in auto trades

    Mann+Hummel, a veteran borrower in the Schuldschein market, struggled to place a Schuldschein, according to market sources, with participants citing ZF Friedrichshafen’s blockbuster transaction as well as the market’s over-indulgence in the auto sector this year as chief reasons.

  • SG, Mariner bring new impact securitization structure

    Société Générale has engaged in a $3.4bn synthetic securitization and pledged to reinvest some of the freed-up capital to increase its ‘positive impact finance’ lending. The investor, New York hedge fund Mariner Investment Group, has given it a financial incentive to go even further.

  • Caffeinated high yield buzzing as coffee bonds mandated

    Two coffee firms are marketing high yield bonds this week, as a strong market backdrop encourages sponsors to lock in cheap funding. The two issues sit at opposite ends of the coffee spectrum — service station self-serve and high end barista-style kit — but both companies are sponsor-owned single-B names.

  • Goldman slips up as JPM powers ahead

    JP Morgan, Citi and Goldman Sachs kicked off the third quarter results season for investment banks on Tuesday. While debt and equity underwriting revenues grew substantially at JP Morgan compared with the equivalent quarter of last year, they fell at Goldman.

  • US investors use NSVs to lend to Germans

    Institutional investors from the US have been lending to German borrowers using the Namensschuldverschreibungen (NSV) — a non-callable registered instrument that is, unlike the Schuldschein, non-cancellable after 10 years. But some are sceptical of their involvement in the market, as they are of US lenders participating in the Schuldschein market.

  • Kunming LGFV debuts offshore with $300m bond

    High yield issuer Kunming Municipal Urban Construction Investment & Development Co priced its inaugural dollar bond on Monday, raising $300m at a yield that was comparable to some higher rated local government financing vehicles (LGFVs).

  • IG corporates kick week off with bulging order books

    High grade corporate borrowers were quick out of the traps on Monday, cramming in before the blackout period to raise around €5bn-equivalent of bond funding from order books many multiples of that.

  • ZF Friedrichshafen gets €9.2bn book for multi-trancher

    Germany’s ZF Friedrichshafen set final terms on a multi-tranche €2.7bn bond on Monday, with the car parts maker seeing far more demand at wider spreads than where it raised a similar amount in the Schuldschein market in recent weeks.

  • Bureau Veritas returns to US PP market

    Bureau Veritas, the unrated certification agency headquartered in Paris, has entered the US private placement, according to market participants.

  • Yancheng Oriental, Shandong Shipping go offshore

    Yancheng Oriental Investment & Development Group Co raised $360m from a bond on Thursday, while another Chinese government-owned issuer, Shandong Shipping Corp, priced a $200m three year deal.

  • Enel shows euro funds buy into sustainability coupon ratchet

    Enel, the Italian power and gas company that is the first, and only, issuer of bonds with sustainability-linked coupons, proved this week that the structure appeals to European green-minded investors, by raising €2.5bn at a spread several basis points tighter than it could have achieved with a normal bond. Jon Hay and Mike Turner report.

  • People moves in brief

    UBS names levfin head — Mizuho finds four high yield bankers — Fintech firm Nivaura gives role to ex-HSBC syndicator

  • Flickers of secondaries appear in Schuldschein market

    The Schuldschein market has for many centuries attracted buy-and-hold investors, but this may change as some arranging banks are offering lenders opportunities to buy sections of their own Schuldschein positions. But many fear that the whiff of secondary markets will see regulators reclassify the instrument as a security, instead of a loan.

  • Continental rolls in with fixed rate note

    German tyre manufacturer Continental rolled into the market on Wednesday, one week after it priced its debut floater in the MTN market last week. The manufacturer had enjoyed several years away from the capital markets, before returning in September with a series of public deals. Elsewhere, political events in Turkey have left lira issuance surrounded in “uncertainty.”

  • Cadent hits cap in £400m tender

    Cadent Gas, the UK gas distribution company, concluded a tender offer, buying back £400m ($498.25m) of its 2021 bonds, with investors offering to sell back more than the maximum target.

  • Deutsche Bahn casts assorted comp net for hybrid

    Deutsche Bahn, the German railways company, wrapped up a roadshow for a dual tranche hybrid on Thursday, with investors looking at a trio of other issuers from a variety of industries for comparable notes.

  • Kernel ‘aggressive’ with IPTs despite Ukraine concerns

    Kernel, a Ukrainian agricultural producer, hit the market on Thursday with a five year non-call three year. In spite of fears around Ukraine’s future relationship with the IMF, the leads have set initial price thoughts at a level onlookers are calling “aggressive”.

  • Mizuho picks up four HY bankers

    A clutch of traders and sales bankers are joining Mizuho International within fixed income, focusing on high yield, investment grade, securitization and SSA.

  • Sritex offers investors rare high yield Indonesian bond

    Sri Rejeki Isman (Sritex) sold an opportunistic $225m bond on Wednesday, becoming the first high yield Indonesian issuer in five months. The company offered investors a juicy premium, which was necessary to appease buyers burnt by turmoil around fellow textile company Duniatex.

  • Ronshine taps 2022 bond again for $265m

    Chinese property company Ronshine China Holdings brought its 2022 notes to the market again on Wednesday, tapping the 8.75% bonds for a second time and adding $265m to its coffers.

  • Triton accused of ‘unsavoury panoply of self-dealing’ in Galapagos

    Triton Partners and secured bondholders enforced a share pledge over German heat exchanger company Galapagos, selling the company itself back to Triton, and leaving unsecured bondholders facing an empty shell. But the unsecured bondholders won’t go down without a fight, with Signal Capital Partners filing a lawsuit in New York seeking to tear up the sale.