Corporate Bonds - Article Archive

  • Second AGM motion jabs Barclays on fossil fuel support

    Barclays is to face a second shareholder resolution on its response to climate change at its annual general meeting in May, urging it to set more ambitious targets to phase out financing of fossil fuels.

  • Vedanta builds war chest for corporate revamp

    Mining giant Vedanta Resources was back in the debt market on Thursday with a $1.2bn trade, giving further comfort to investors that it has not abandoned its plans to clean up its corporate structure.

  • GlobalCapital Syndicated Loan, Leveraged Finance and Private Debt Awards 2020: the full results

    After a poll of market participants at the end of 2020, GlobalCapital can now reveal the winners of its annual Syndicated Loan and Leveraged Finance Awards. GlobalCapital can also reveal the winners of the Private Debt Awards. Regrettably, we still cannot celebrate the awards with you in person, but we congratulate all the winners and nominees in this exceptionally challenging year.

  • Size over price: Qingdao LGFV nets $600m

    Huatong International Investment Holdings Co, a Chinese local government financing vehicle, raised $600m from its bond on Thursday, but had to sacrifice a tighter price for a larger transaction.

  • Schuldscheine: die or defer

    The Schuldschein market must adapt if it wants to win back its international borrower base. While competing with public bonds on price may be out of reach, the instrument can take a leaf out of the US private placement’s book and introduce deferred funding.

  • Finance is fossilised

    Look at any bank’s website or hear its CEO speak and you will get a torrent of virtuous words about climate change, sustainability and supporting clients on their journeys to net zero. The same goes for big investors, from BlackRock down, but the windows of their ivory towers are misted up with all the hot air being spouted.

  • Big guns defy sell-off as US high grade bonds hold firm

    The sell-off in the US Treasury and equity markets intensified this week as hopes rose of faster economic growth which could lead the Federal Reserve to taper quantitative easing. But that did not stop Japanese telecoms company Nippon Telegraph and Telephone Corp raising $8bn with its first dollar bond issue for nine years, amid a stampede for cheap funding.

  • Dyal Capital sells billions of PP debt to distribute to investors

    Dyal Capital, the US private equity firm that specialises in buying minority equity stakes in private equity and hedge fund managers, has employed a financing method — private placements securitized on fund cashflows — rarely seen before in its industry, writes Silas Brown.

  • US and Japanese names welcomed in euros

    Non-European names hit the euro market this week with a trio of US companies and Japan’s Nippon Telegraph & Telephone Corp (NTT) raising debt. But syndicate bankers say rising US rates are still way off the sweet spot that would make the euro market irresistible for all Reverse Yankee issuers.

  • SPAC fever spills into HY as Ardagh strikes can deal

    High yield market darling Ardagh has joined in with the SPAC fever sweeping capital markets, announcing on Tuesday the merger of its drinks can business with a SPAC sponsored by billionaire Alec Gores. The combined business wasted no time in launching the debt finance for the deal, with a $2.3bn-equivalent four tranche green bond following on Thursday.

  • NTT dials in blowout transatlantic trade

    Nippon Telegraph & Telephone Corp (NTT) had a storming outing in the bond markets this week, easily raising €1bn in Europe and $8bn on the other side of the Atlantic to refinance M&A bridge debt.

  • Aston taps pricey rescue deal after long rally

    Aston Martin has launched a £70m-equivalent tap of its $1.085bn 10.5% notes, which have been trading more than nine points higher than when they were priced last year in the teeth of market volatility leading into the US presidential election.

  • BlackRock and Amundi: climate actions to speak louder than words

    BlackRock and Amundi, the largest asset managers in the US and Europe, have both published policies on how they intend to engage with companies about climate change. After widespread criticism, BlackRock has moved a long way towards a more proactive stance, but it is not clear yet that either firm is prepared to get really tough with high carbon emitters — especially in their passive portfolios.

  • NatWest picks new head of debt origination

    NatWest has promoted Carla Floyd to head of debt and financing solutions — a newly created job that sits in its ringfenced bank but nonetheless effectively involves running debt capital markets origination for corporate clients.

  • Investors dial in to Bharti Airtel's dollar return

    Indian telecommunication company Bharti Airtel found strong support from global investors for its bond this week, allowing it to raise more money than expected and price the $1.25bn deal at a tight level.

  • Guangzhou R&F makes quick comeback for $325m

    Guangzhou R&F Properties Co made a rapid return to the debt market this week for a $325m bond that proved popular with investors in the primary and secondary markets.

  • Easyjet zooms back to bond market

    Easyjet, the UK budget airline, avoided any turbulence on its return to the bond market on Wednesday, managing to land a €1.2bn deal with no new issue premium that was almost five times oversubscribed.

  • América Móvil cheapens €2.2bn exchangeable

    América Móvil, the Mexican telecommunications company controlled by Carlos Slim, had to cheapen the terms of its €2.2bn bond exchangeable into shares in Dutch telco KPN, but still achieved a remarkably cheap refinancing of a non-core stake.

  • Glencore gets tepid demand as rarities line up

    Glencore, the Swiss commodity trading company, got a lukewarm response from the euro bond market on Tuesday, as investors prepared their cash piles for a flurry of deals from rare and high beta names.

  • PMM: Corporate-like Hochbahn stirs up SSA market

    SSA bond supply dwindled last week meaning an outstanding performance from Hamburger Hochbahn’s debut bond, which was six times subscribed and managed a huge 26bp tightening from initial price thoughts, weighed heavily on primary market indicators.

  • Victoria fills acquisition war chest with general purpose bond

    Victoria plc, the UK listed carpet maker, is marketing a new bond with most of the proceeds earmarked for cash on balance sheet, an unusual move in the high yield market, where deals are typically aimed at refinancing or specific corporate actions. The company says it will be on the hunt for acquisition opportunities, funded by the Koch Brothers’ preferred equity injection last year as well as the new debt.

  • Investors demand premium from Aoyuan

    China Aoyuan Group had to pay up to sell a $350m bond on Monday, as investors demanded compensation for the property company’s low rating and the deal’s long tenor.

  • REC snaps up $500m from bond

    India's REC has raised $500m from a tightly priced bond that appealed to investors because of its relatively short tenor of 5.5 years amid volatility in the longer end of the yield curve.

  • HPS provides rescue loan to Hostelworld

    Online travel agency Hostelworld has signed a five year €30m secured loan facility with HPS Investment Partners, the asset manager headquartered in New York.

  • Single-A supply printed tight as ECB squeezes investors into low spreads

    EnBW, the German electrical utility, and the financing arm of a Dutch truck company, DAF Paccar Financial, hit screens with highly rated euro trades on Monday. Central bank bond buying higher than forecast, pushed investors to oversubscribe the deals even though the spreads on offer were thin.

  • US corporates pour into high grade euro market

    US high grade corporate names hit the European market at the outset this week with WP Carey and General Motors selling bonds and Equinix mandating for a green deal. But syndicate bankers say rising US rates are still some way off the sweet spot to make the euro market irresistible for all Reverse Yankee issuers.

  • CPI Property repays Schuldschein early

    Listed real estate firm CPI Property is repaying a portion of its Schuldschein early at par, taking advantage of favourable legal conditions in Germany regarding early prepayments of floating rate loans. Sources say other companies may use this option if funding conditions remain so attractive in public markets.

  • Bots hires two ahead of live pilot of DCM platform in Q2

    Bond Origination Technologies (Bots), a new tech company that aims to automate pricing indications in the primary debt capital markets, has made two hires as it prepares to launch its first live pilot in the second quarter.

  • Sovereign pair hit centuries in MTNs

    A pair of sovereigns privately placed century bonds this week, with one of the borrowers — Ireland — dipping below the 1% point for the first time at this sort of tenor.

  • Bubble called as H&M debut soars

    Hennes & Mauritz, the Swedish clothing retailer, earned blowout demand for its sustainability-linked debut bond, but bankers off the trade said on Thursday that the exuberance was indicative of just how far capital markets have strayed from reality.

  • Post-Covid extremes are not inevitable

    Two factors bear outsized influence on capital markets — Covid-19 and central bank stimulus. But the temptation to see these powerful forces culminating in one of two extreme outcomes — another crash as a feeble economy flounders, or a boom like the 1920s US — must be resisted.

  • Geneva Airport makes tight landing

    The rally in Swiss fixed income over the last year allowed Geneva Airport to price a new 10 year deal this week 70bp tighter than where it printed a three year deal last April.

  • Investors snap up thinly priced corporate debt as more stacks up

    Europe’s high grade bond investors showed they are still willing to swallow ultra-thin spreads this week, when Dutch leasing company LeasePlan priced a green bond well inside fair value and Deutsche Boerse won ample demand for a thinly priced €1bn deal.

  • H&M gets €5.4bn of orders for SLB debut bond

    H&M, the Swedish clothing retail company, has received blowout demand for its debut bond, as the “perfect storm” of ESG criteria and European Central Bank rule changes to allow it to buy sustainability-linked bonds saw the order book bulge to almost 11 times subscribed at guidance.

  • WP Carey mandates for euro trade as rates flash arb signs

    WP Carey, the US REIT, has mandated for a euro bond through its Dutch subsidiary, as Europe’s syndicate bankers say that there are signs in the rates market that Reverse Yankees could become a popular choice again.

  • Bank CEOs join Prince Charles’s net zero bid

    Working out how banks can take credible pathways towards net zero emissions will be top of the agenda for the A-list of the banking industry’s chief executives who have joined the Prince of Wales’ new Financial Services Task Force.