Credit Suisse

China Auto Rental (CAR) broke new ground when it became the first Asian car rental company to sell an offshore bond on January 28. Strong demand from investors allowed it to increase the deal and bankers hope its success will encourage some much needed diversification in the high yield market, writes Narae Kim.

Indian companies were out in full force this week to tap the equity capital markets. Leading the way was the Indian government’s long-awaited $3.95bn divestment of its stake in Coal India.

Malaysian sovereign wealth fund Khazanah Nasional priced its largest ever follow-on in Tenaga Nasional on January 28, as investors jumped at the chance to grab a slice of the state-owned power producer. Despite Malaysia’s slumping stock market, Khazanah sold the most shares of any block trade it has done in Tenaga since 2009, raising MR1.62bn ($455.79m).

Energy firm Viridian Group began a roadshow on Thursday for a €600m senior secured bond, which it will use to redeem its $670m-equivalent debut bond, amid renewed investor interest for strong single B-rated names.

Solenis, the US chemicals producer, has closed books on an €85m six year term loan that backs its acquisition of Clearwater Specialties, increasing the facility by €10m.

China Auto Rental (CAR) finally started taking orders on Wednesday, January 28, for what looks to be the first offshore bond by an Asian auto rental company. Due to its strong North American ties, the borrower waited until the US markets looked favourable and is hoping to see US funds jump in its maiden outing in the offshore bond market.

Meif Renewables, Macquarie European Infrastructure Fund Renewable Energy UK, priced its first bond issue on Thursday.

Wittur, the German lift components producer, set price guidance for its €285m acquisition loan at a London bank meeting on Monday, only a day before its new private equity owner, Bain Capital, added TI Automotive to its portfolio.

Despite a strong backdrop for issuance this week few SSAs are willing to bring benchmark deals in euros, as issuers wait until the full effect of the European Central Bank’s quantitative easing announcement last week plays out. Meanwhile, the next meeting of the US Federal Reserve’s Federal Open Market Committee and a winter storm approaching New York are limiting dollar issuance windows.

Wittur, a German lift components maker, is holding a London bank meeting today as it markets a €485m debt package to investors.

One of the most anticipated high yield bond issues of the year so far, Altice’s transaction to refinance its buyout of Portugal Telecom, is set to be priced today (Friday), and bankers believe it will confirm the market's vigorous health at the start of 2015.

US corporate new issues have plunged to multi year lows as issuers shrug off strong demand due to the cost of carry. Even Thursday’s confirmation of European Central Bank quantitative easing, which opened the floodgates for FIG issuers, could not move corporate borrowers off the sidelines.