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High grade and crossover bonds

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  • H Lundbeck, the Danish pharmaceutical company, has mandated banks for a five year debut euro benchmark from its new bond programme, after gaining US regulatory approval for a new migraine treatment.
  • Four Chinese property companies raised $2bn between them from dollar bonds on Monday, coming at a particularly turbulent day for markets globally as fears rise around the rapid spread of Covid-19 outside of the Mainland.
  • Severn Trent, one of the UK’s three listed water companies, is looking to sell US private placements via its holding company, according to market sources. This is the first PP transaction from a UK water company since regulator Ofwat set out a new price review for the sector in December.
  • The rise of the Covid-19 coronavirus in Italy has tapped the brakes on the zooming high grade corporate bond primary market. Concerns over the spread of the illness have sent corporate spreads wider and rates tighter.
  • Three Chinese issuers visited the dollar bond market on Thursday, raising $1.2bn between them.
  • HSBC’s corporate finance staff have survived its restructuring largely unscathed, but the more ambitious among them will see the bank’s plans as a missed opportunity, writes David Rothnie. And with no answer yet on the identity of the next full-time CEO, the uncertainty is not over.