Corporate Bonds - Article Archive

  • Science-Based Targets prove their worth as emissions come down

    The power of Science-Based Targets as a sustainable finance tool was highlighted this week by research which showed for the first time that companies with SBTs are succeeding in cutting greenhouse gas emissions much faster than the wider economy. Many are even ahead of their own targets.

  • More fallen angels expected but also a drop in default rates

    Corporate default rates are expected to decline towards the end of this year after peaking in the next few months, but the number of borrowers facing a plunge into junk ratings is near a record high. Lenders say that they are taking a pragmatic view on the companies in their loan portfolios to try and prevent defaults.

  • Green finance to boom, led by US and LatAm

    Sustainable bond issuance has made its strongest start to the year ever, thrusting the market towards what most observers believe will be a year when many records will be broken — especially in north and south America, where environmental and social consciousness is rising. Jon Hay, Mike Turner and Oliver West report.

  • Patchy hybrid response will not put off more subordinated trades

    Europe’s corporate bond investors had the chance to pick up some paper from the riskier end of their credit spectrum as the week began, with Portuguese power company Energias de Portugal (EDP) and Swedish housing firm Heimstaden Bostad out with hybrid capital issues.

  • TalkTalk and Thames tap in sterling

    UK broadband company TalkTalk sold an add-on to its existing high yield notes this week, raising new term debt to pay down its revolver. The company is subject to a takeover bid from Toscafund and Penta Capital, which will leave its existing bonds in place, but grant them security, as well as layering in extra leverage with a PIK toggle from Ares.

  • TeamSystem sells bond for second fund-switch deal

    Hellman & Friedman refinanced the capital structure of portfolio company TeamSystem this week as it moved ownership between funds. H&F recently completed a similar transfer of its Verisure holding but, unlike that switch, this move isn’t accompanied by a monster dividend payment to the new fund, although the TeamSystem deal still boosts leverage.

  • Biogroup bond debut shines in unsecured

    Biogroup’s debut in the high yield bond market has become one of the tightest ever triple-C rated issues, validating the former loan-only company’s decision to turn to public markets to add subordination to the refinancing of its capital structure.

  • Trafigura returns to euros after long wait

    Trafigura returned to the bond market in euros this week, having been absent since 2015. The commodities trading giant is diversifying its access to funding and is also producing its debut Schuldschein issue alongside the €400m bond.

  • Will ESG-linked debt prosper in private debt?

    European and US direct lending’s insatiable rise to relevance has so far not brought with it a push towards sustainable finance. But this year may be different, as certain private debt funds are setting out ESG blueprints for others to follow.

  • Thom tests retail appetite

    A bond for French jewellery store operator Thom Group showed that investors can digest debt from lesser loved sectors like retail, though the decision to opt for bonds to refinance its existing loan capital structure might have been prompted by the greater taste for adventure typically seen in the public market.

  • IG corporate market predicts March correction

    Europe’s investment grade corporate bond bankers and investors are looking to the end of this earnings season for a “needed” correction to trading levels, though some warn it will be shortlived.

  • Will sustainability-linked debt prosper in private credit?

    European and US direct lending’s insatiable rise to relevance has so far not brought with it a push towards sustainable finance. But this year may be different, as certain private debt funds are setting out ESG blueprints for others to follow.

  • Yuexiu Transport nabs Rmb1bn from Panda

    Red chip issuer Yuexiu Transport Infrastructure ditched its usual bullet bond structure in favour of a five year puttable Panda outing this week.

  • Hainan SOE bags $300m from debut

    Hainan State Farms Investment Holdings Group Co debuted in the dollar market on Wednesday with a three year bond.

  • Kaisa adds $200m from bond tap

    Chinese property company Kaisa Group Holdings raised $200m from a rapid return to the debt market this week.

  • Deutsche Bahn turns screws on sterling spread

    Deutsche Bahn, the German state railway company, launched a £300m bond at a wafer thin spread on Wednesday, but investor demand still more than twice covered the deal.

  • Hyderabad airport soars in bond comeback

    GMR Hyderabad International Airport swooped into the bond market on Tuesday for $300m, adding money to its coffers ahead of an expectation of a revival in passenger growth.

  • China property builds on dollar momentum

    More Chinese real estate borrowers headed to the dollar bond market on Tuesday, as bankers tackle a supply rush in the lead up to the Chinese New Year holidays in mid-February.

  • Onshore yields surge on policy, liquidity concerns

    Chinese domestic bonds plummeted on Tuesday and continued their fall on Wednesday morning, amid growing concerns around recent tight liquidity conditions onshore and a potential tightening in monetary policy.

  • Buma returns with tender, new money

    Indonesian mining company Bukit Makmura Mandiri Utama (Buma) returned to the bond market on Tuesday to raise $400m after a three-year hiatus.

  • Citic Bank gets $550m from bond return

    China Citic Bank Corp has raised $550m from its return to the public dollar debt market after a break of more than three years. The bank priced inside fair value estimates, leading to a large drop in the final order book.

  • Outlook strong in container ABS after booming 2020

    Container ABS thrived last year, setting a new issuance record after two decades. Several factors are working in favour of container ABS this year as well, including increased consumption of goods and an opportunity for containers to be used in vaccine distribution.

  • Patchy demand no problem: hybrid issuance to boom

    Corporate bond bankers in Europe are convinced that hybrid capital issuance will continue this year at a similar blistering pace to 2020, despite some deals so far having had tepid demand.

  • BlackRock’s Fink backs net zero, leaves responsibility to clients

    BlackRock wants to move a long way towards catching up with leading investors in its response to climate change, its CEO Larry Fink indicated in his annual letter to chief executives on Tuesday. BlackRock stopped short of setting a net zero carbon emissions target for its $8.7tr of assets under management, or committing to swift decarbonisation. But it did publish a ‘net zero commitment’ saying it would “support the goal of net zero emissions by 2050 or sooner”.

  • Will direct lenders prove to be wolves in sheep’s clothing?

    Direct lenders and debt funds have always pitched themselves as being more suitable partners for businesses than banks, bondholders, or other institutional lenders. When the going gets tough, they can be quicker to waive covenants and offer new money than a less concentrated creditor group. But this also puts them in pole position to take the keys from a business should things go wrong — which we may see happen this year.

  • TalkTalk taps HY ahead of Toscafund takeover

    UK broadband company TalkTalk is marketing an add-on to its existing high yield notes, raising new term debt to pay down its revolver. The company is subject to a takeover bid from Toscafund and Penta Capital, which will leave the existing bonds in place, but grant them security, as well as layering in extra leverage with a PIK toggle from Ares.

  • China property bond spree continues

    Three Chinese property companies announced dollar bond transactions on Monday, continuing the run of issuance seen from the high yield market since the beginning of the year.

  • Tower Bersama pulls tap on pricing, demand mismatch

    Indonesia's Tower Bersama Infrastructure took an aggressive pricing approach to a tap of its dollar bond on Monday. But when investor response fell short of expectations, the issuer was forced to pull its fundraising.

  • Stabilus launches SSD as autos return

    German car part maker Stabilus began marketing a Schuldschein on Monday, as many consider whether the automotive sector should be back on investors' buy lists.

  • EDP and Heimstaden Bostad bring hybrid risk out of the gates

    Europe’s corporate bond investors had the chance to pick up some paper from the hairier end of their credit spectrum as this week began, with Portuguese power company Energias de Portugal and Swedish housing firm Heimstaden Bostad out with hybrid capital issues.

  • H&F preps second fund-switch transaction with TeamSystem

    Hellman & Friedman is looking to refinance the capital structure of portfolio company TeamSystem, as part of the sale of the firm from its seventh fund to its ninth, a transfer also recently completed by Verisure. Unlike Verisure, the fund switch isn’t accompanied by a monster dividend payment to the new fund, but the new deal will still jack up leverage levels.

  • Future Retail misses dollar bond payment again

    India's Future Retail failed to make an interest payment on its dollar bonds last Friday, making it the second time it has missed a coupon on its debut notes as it struggles to overcome Covid-related woes.

  • BNP Paribas, CS and ING to cut Amazon oil financing

    Three of the most active banks in financing oil exports from the Ecuadorian Amazon — an environmentally destructive industry with a long track record of trampling on indigenous people’s rights — have agreed to cease important parts of their financial support, after pressure from NGOs and a devastating oil spill in 2020.

  • Sanctioned Avic pays premium for bond

    China's Avic International Holding Corp had to offer investors a premium for its latest dollar bond, to compensate them for the risk associated with its inclusion on a US sanctions list.

  • Investors flock to PFC for yield pickup

    Power Finance Corp netted $500m from a bond that was printed at a negative new issue premium, but still attracted investors for the yield it offered compared to peers.

  • Aircraft lessors crowd to market after monster rally

    Companies in the same sector often copy each other, but this year's string of bond issues by aircraft lessors has been exceptional, and is prompted by the sector's credit rehabilitation. Air Lease Corp took the recovery past a new milestone this week.

  • Buyers queue down the aisle for Tesco SLB

    Tesco, the UK grocer, made a storming debut in the nascent sustainability-linked bond market on Wednesday, encouraging bankers who already expect corporate issuance using the novel structure to rocket this year.