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Issuer could step up pace of deals
German promissory notes come into their own in times of stress
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Company last issued Schuldscheine in 2019
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There is a hiatus in the Schuldschein new issue market, as the slew of transactions launched in January are weighed up and processed before settlement dates. Amid the calm, Schuldschein bankers are beginning to question whether the unrated bond market is a threat.
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US private placement specialists are hoping the market will this year beat 2017’s record of 14 deals larger than $750m. They are playing up the ‘bells and whistles’ of the market – delayed draws, multiple currencies and varied tenors – to entice borrowers away from other funding sources.
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US private placement issuers are regularly selecting more than one agent to arrange a transaction, forcing fees down and arranging standards to slip, according to two agents.
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Nordex, a German wind turbine manufacturer, began selling a €275m high yield bond this week as it plans to extend its debt maturities by taking out shorter-dated and floating rate Schuldschein paper.
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Scotiabank looks set to enter the US private placement market, after it hired an experienced banker from National Australia Bank.
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Telefonica Deutschland has been forced to issue a second round of price guidance on its €150m Schuldschein issue after launching it in early January, after investors' demand was cooler than expected.