High Grade - All Articles

  • China issuers sneak into closing bond window

    A host of Chinese issuers found one of the last windows to sell bonds on Thursday ahead of the US presidential elections at the beginning of November and a public holiday in Hong Kong early next week.

    • 23 Oct 2020
  • A2A breaks long end yield record for Italian corporates, Blackstone prices

    A2A, the Italian multi-utility, pre-funded for 2021 with a €500m trade on Wednesday, getting what the lead manager said was the lowest yield for a deal of its type. The company is preparing a new business plan that will see it printing more green and sustainability-linked debt.

    • 22 Oct 2020
  • Upstart broker rocks up in Schuldschein to spur secondary trading

    The secondary market in Schuldscheine is rudimentary, partly as the arranging banks have never wanted to encourage it. But a little known brokerage firm is quietly acting as a go-between, helped by its contacts with non-traditional investors, writes Silas Brown.

    • 22 Oct 2020
  • IG secondaries spur records but fears grow about reckoning

    High grade corporate bond spreads face a rocky few weeks after six months of consistent tightening, as coronavirus lockdowns and corporate earnings blackouts contribute to increased short term volatility.

    • 22 Oct 2020
  • Meituan makes ‘stunning’ debut with $2bn bond

    Meituan, a Chinese e-commerce platform and food delivery company, sold its first dollar bond on Wednesday, netting $2bn on the back of an order book that reached $16bn at its peak.

    • 22 Oct 2020
  • Bunzl sees 4.5 times oversubscription for sterling trade

    Bunzl, the distribution and services company, topped off a strong few days by printing a £400m from bulging order books a week after announcing growth in its third quarter trading statement.

    • 21 Oct 2020
  • Iberdrola electrifies hybrid market with €3bn trade as jumbo hybrids in vogue

    Iberdrola, the Spanish energy utility, launched a €3bn dual tranche hybrid capital bond on Wednesday, as syndicate bankers say the hunt for yield is encouraging issuers to push boundaries on the amounts they raise in hybrid issues.

    • 21 Oct 2020
  • Dairy producers Glanbia, Müller milk private placements

    Bavarian dairy group Müller is marketing US private placements, according to market sources, alongside nutrition group Glanbia.

    • 21 Oct 2020
  • Hon Hai puts together $1.4bn bond return

    Taiwanese electronics giant Hon Hai Precision Industry Co shook off trade war concerns to raise $1.4bn from the bond market on Tuesday.

    • 21 Oct 2020
  • Transition bonds: not so sustainable after all

    Enel, the Italian energy company, scored a number of firsts last week when it sold a sterling sustainability-linked bond. But the effect of that deal that might last the longest could be that it has brought about the end of transition bonds.

    • 20 Oct 2020
  • Investment grade corporate spreads forecast to widen

    High grade corporate bond spreads face a rocky few weeks after six months of consistent tightening, as coronavirus lockdowns and corporate earnings blackouts contribute to increased short term volatility.

    • 20 Oct 2020
  • Aero supplier Meggitt looks to sell US private placements

    Aerospace and defence supplier Meggitt has entered the US private placement market, according to sources, on the hunt for at least $200m. Like others in the sector, Meggitt has struggled through the pandemic.

    • 20 Oct 2020
  • Blackstone gets real estate risk through high grade market

    Blackstone Property Partners, the pan-European real estate company, got solid demand for its April 2027 bond on Monday, after last week’s tepid reaction from investors to the sector that saw a deal pulled.

    • 19 Oct 2020
  • Euro bond indices break records despite stuttering recoveries

    The S&P euro investment grade corporate bond index hit a record high on Friday’s close, but corporate bankers believe that there is little to justify the complete reversal of the fall seen in the depths of the spring Covid-19 crisis apart from central bank splurging.

    • 19 Oct 2020
  • Quadgas breaks utilities’ silence in private placements

    Quadgas, a gas asset and infrastructure investment consortium that sits above UK utility Cadent Gas, has launched a US private placement, in the first whiff of a deal from the sector in the UK for more than six months.

    • 19 Oct 2020
  • MUFG hires levfin banker to lead capital markets

    JP Morgan's Raj Kapadia has joined MUFG as international head of capital markets, as the firm increases its leveraged finance focus. It has also set up a new group to advise clients at the C-suite level on market and macroeconomic developments, led by Tom Joyce, a hire from Deutsche Bank.

    • 16 Oct 2020
  • Bond bonanza in Asia as corporates go for dollars

    Asia’s dollar bond market has been swamped with new deals this week. Thursday was no different, with corporate borrowers from Greater China alone raising just over $3bn between them.

    • 16 Oct 2020
  • Toyota has the road to itself as holiday and blackouts stymie dollar market

    The dollar market has endured one of its slowest weeks since the onset of the Covid 19 pandemic, with just one corporate borrower coming to the market.

    • 15 Oct 2020
  • High grade investors given ample chance to pick up crossover-rated securities

    High grade corporate bond investors had their pick of crossover deals this week, with Inwit, Veolia and Cellnex offering trades on the periphery of junk ratings, with demand solid as risk appetite remains strong.

    • 15 Oct 2020
  • Enel sterling builds on SLB market, govs and banks to follow

    Enel, the Italian energy company, printed the first sustainability-linked bond in sterling this week well through its curve, sparking expectations of far wider issuance in the still fledgling market.

    • 15 Oct 2020
  • Ewe comes through tough day almost unscathed

    Ewe, the German utility, braved a shaky day in the markets on Thursday for its €500m no-grow 12 year bond issue, and still managed a single digit new issue premium.

    • 15 Oct 2020
  • Körber enters Schuldschein market for new cash

    German technology company Körber has entered the Schuldschein market, on the hunt for at least €200m. This figure could rise with additional demand.

    • 15 Oct 2020
  • Veolia and Cellnex dial in crossover rated trades

    Veolia, the French water and waste company, and Spanish telecoms infrastructure firm Cellnex were out with crossover rated debt on Wednesday, giving investment grade corporate investors a double chance to pick up spreads at the higher end of their remit.

    • 14 Oct 2020
  • Investors pour into Asahi acquisition refi bond

    Asahi, Japan’s largest brewer, drew the biggest demand in the high grade corporate bond market on Wednesday, adding to the recent trend of issuers from the country getting a roaring response from investors in Europe.

    • 14 Oct 2020
  • Triton bolsters European biz with new debt fund

    Triton has closed a €744m private debt fund, Triton Debt Opportunities II (TDO II), focused on Northern Europe’s mid-market.

    • 14 Oct 2020
  • L&G offers HA Bernicia lengthy debt

    Bernicia, a housing association in the northeast of England, has sold long-term private debt to Legal & General. Housing associations have been a bright spark in an otherwise bleak picture for private market deal flow.

    • 14 Oct 2020
  • M&A banker Le Milon jumps to Barclays

    Barclays has hired Gauthier Le Milon as head of M&A for France, Belgium and Luxembourg.

    • 14 Oct 2020
  • Enel prints first sterling SLB

    Enel, the Italian energy company, proved that there is sterling demand for sustainability-linked bonds on Tuesday, with the borrower repeating its achievement in dollars and euros by creating the market in the currency.

    • 13 Oct 2020
  • Putting the 'K' in capital markets

    The coronavirus crisis will continue to lead to divergence in economic fortunes, and that will play out in European capital markets as well.

    • 13 Oct 2020
  • Inwit gets chunky demand as Veolia and Ewe line up euros

    Crossover credit Inwit showed that the return of risk demand is still going strong this week, with the Italian wireless infrastructure company drumming up €3.7bn of demand for its trade.

    • 13 Oct 2020
  • Edeka stocks up on Schuldschein

    Germany’s largest supermarket chain, Edeka, launched a Schuldschein on Tuesday, looking for at least €200m.

    • 13 Oct 2020
  • SLB champion Enel plans first sterling trade using structure

    Enel, the Italian power and gas company, is set to push the nascent sustainability-linked bond market to a new currency this week after the company mandated for the first deal in the format in sterling.

    • 12 Oct 2020
  • EnBW uses new bond sale to update on sustainability plan

    Energie Baden-Württemberg (EnBW), the Germany electricity company, opened books on its €500m no-grow 10 year on Monday, almost a week after the issuer started marketing the trade, which it took as an opportunity to update investors on its sustainability ambitions.

    • 12 Oct 2020
  • Munich Airport seeks cash in Schuldschein market

    Munich Airport has launched a Schuldschein with an initial target of €200m, the first airport to enter the market since a flurry of deals in March as the coronavirus pandemic hit Europe.

    • 09 Oct 2020
  • Euronext preps equity sale to fund Borsa Italiana deal

    Euronext is preparing for a €2.4bn equity raise after it agreed a deal with London Stock Exchange Group for the Borsa Italiana.

    • 09 Oct 2020
  • High grade corporate issuers find roaring reception from market as window narrows

    Risk appetite has returned to the high grade corporate bond market this week, as investors looked to snap up what they could before presidential election volatility and earnings blackouts create a desolate primary market.

    • 08 Oct 2020
  • Gold top: cream of direct lending biz covers up pain beneath

    Large deals and fundraising from a clutch of elite direct lenders, alongside high profile tie-ups with sovereign wealth funds, have prompted many to characterise direct lending as enjoying a golden age. But the success of some funds looks set to come at the expense of many others, writes Silas Brown.

    • 08 Oct 2020
  • Supply concerns see IG corporates brush off macro worries

    Europe’s high grade corporate market was red hot this week with bulging order books and negative concessions, as concerns about scant primary supply to come washed away investor jitters about a collapsed $2.2tr fiscal stimulus deal in the US.

    • 08 Oct 2020
  • Immofinanz and Heimstaden Bostad push real estate risk through market

    Europe’s investment grade corporate bond market saw trades from the Covid-19 rocked real estate sector on Thursday, with Immofinanz and Heimstaden Bostad attracting less demand than recent similarly rated trades.

    • 08 Oct 2020
  • Unrated Dürr guides market towards double-B pricing

    Dürr, the unrated German mechanical and plant engineering firm, is guiding investors on its final day of marketing towards it issuing a €250m bond with a yield aligned to issuers in the double-B ratings bracket.

    • 08 Oct 2020
  • EMEA high grade debt soars 26% to $4.4tr

    Total debt among investment grade EMEA companies has rocketed by almost $1tr since last year, with more debt expected to be needed if a weak recovery leads to lower earnings and cashflow.

    • 08 Oct 2020
  • Primary scarcity covers cracks in euro IG corp market

    Europe’s high grade corporate issuers secured another day of bulging order books on Wednesday, as concerns about scant primary supply to come washed away investor jitters about a collapsed $2.2tr fiscal stimulus deal in the US.

    • 07 Oct 2020
  • Amprion powers into Schuldschein market

    German electricity transmission firm Amprion launched Schuldschein and Namensschuldverschreibungen (NSV) notes on Wednesday, becoming the first borrower to launch a deal into the market this month. Bankers are gearing up for a busy fourth quarter.

    • 07 Oct 2020
  • Star Energy’s rare project bond attracts investors

    Indonesia’s Star Energy Geothermal found solid investor demand for Asia’s first dollar-denominated project bond of the year. The deal was helped by the issuer’s investment grade rating and a green label that helped reduce pricing. Morgan Davis reports.

    • 07 Oct 2020
  • Baidu connects with investors for $950m bond

    US investors shrugged off concerns over tensions between their country and China to support internet company Baidu’s $950m dual-tranche bond outing this week.

    • 07 Oct 2020
  • German IG companies lead fresh mandates

    Europe’s investment grade corporate bond market is lining up more mandates, with German companies making up the bulk of new deals announced on Tuesday.

    • 06 Oct 2020
  • Eni strikes oil with hybrid, considering printing SLB

    Eni, the Italian oil and gas company, got blowout demand for its debut hybrid capital issue on Tuesday, as yield-hungry investors pumped about €14bn of orders into the dual tranche trade.

    • 06 Oct 2020
  • Fears of PP exodus as amendment round looms

    US private placement market insiders fear a round of early prepayments, as companies look to wriggle out of the straightjackets of financial covenants and issue public market bonds instead. Amendments brokered at the start of the coronavirus pandemic are up for review now, and sources think these talks will involve tough conversations between borrowers and lenders.

    • 06 Oct 2020
  • Asian bond issuers: time is running out

    Asian borrowers looking to tap the international dollar bond market this year have only a small window of opportunity to raise funds. They should act quickly.

    • 06 Oct 2020
  • IG corporate bond investors flock to final primary surge of year

    Risk appetite has returned to the high grade corporate bond market, with UK airport Heathrow and US drinks firm PepsiCo managing to move spreads by around 45bp during execution.

    • 05 Oct 2020
  • VTG sells hefty Euro and US PPs

    German railway wagon lessor VTG has sold €550m of private placements to institutional investors in Europe and the US, according to market sources. More and more, US PPs are being marketed to traditional Euro PP investors.

    • 05 Oct 2020
  • Eni, Arkema and Lundbeck line up IG corporate firsts

    A trio of firsts are coming to the high grade corporate bond market this week, with a debut hybrid from Italian oil and gas firm Eni, a green first for French chemicals company Arkema and a postponed entry to the Eurobond market for Danish pharmaceutical firm Lundbeck.

    • 05 Oct 2020
  • IHG has no vacancies for premiums in new deal

    InterContinental Hotels (IHG), the UK hotel group, sold sterling and euro debt on Thursday without paying a concession, as market technicals and the potential for a substantial coupon increase proved enough to sweep away investors’ concerns about the sector.

    • 01 Oct 2020
  • Schuldschein bankers ready market for busy October

    Schuldschein lenders are gearing up for a wave of borrowers to tap the market this month, looking to capitalise on mounting piles of investor cash.

    • 01 Oct 2020