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◆ Deal attracts highest bid-to-cover ratio of the year so far ◆ Extensive marketing helps fuel demand ◆ Pinpointing fair value tricky
◆ First Swissie corporate bond since Alphabet's finds size ◆ Dual tranche trade lands tight ◆ Domestic corporate undersupply helps demand
◆ Issuers opt for extra guidance as market softens ◆ Enexis takes size at six years ◆ DSM-Firmenich lands tight
This week's flurry of deals takes year to date volume beyond £8bn
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Serco has sold $200m of US private placements, according to market sources. The deal shows there is still muted support for UK support services, given the right credit and offer, after the sector fell out of favour with PP investors a few years ago.
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Japan Tobacco lit up the corporate market on Wednesday with its debut euro hybrid. The borrower built an order book six times the deal size, despite some parts of the market claiming that investors are shunning the sector.
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China Merchants Port Holdings Co (CMP) paid a generous premium to close a $600m dual-tranche bond on Tuesday, responding to weakness in the secondary prices of similar deals.
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The UK’s InterContinental Hotels and Italian airport Società Esercizi Aeroportuali have mandated for bond issues, giving investors another attempt to pick up some potentially higher yielding debt than has been on offer recently.
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Investment grade companies are filtering into the euro bond market in the run-up to the last quarter of the year, including Informa, the UK publishing and exhibition company, which wants to swap its private placements for public bonds.
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Adidas showed that the sustainability bond market has further to run on Tuesday, when the German sportswear company launched its debut trade in the format inside fair value.