HSBC

The Asia ex-Japan convertible bond market is finally seeing some action following a subdued start to 2015 thanks to United Microelectronics Corporation (UMC), which opened books to a $600m currency-linked CB on May 11.

Indonesian tower company Solusi Tunas Pratama’s latest borrowing has received $185m in commitments. The deal, which will refinance what is left of a bridge it sealed with five banks in December last year, is due to close imminently.

China Merchants Bank (CMB) New York branch scored an international bond market debut on May 7, receiving strong support from Asian investors but leaving enough money on the table to embrace the price demands of US investors. The borrower is the first of a string of Chinese banks lining up to sell bonds through their US branches.

Swiss cement maker Holcim is in a stand-off with its relationship banks over whether it can receive negative interest payments on its Swiss franc revolving credit facility, amid deeply negative interest rates, writes Elly Whittaker.

Execution risk has been pushed sky high in bank capital after NordLB, a German bank, was forced to pull an additional tier one print on Thursday, writes Tom Porter.

Colgate-Palmolive took advantage of strong demand for floating rate notes on Thursday to price a €500m four year FRN, arguably inside where it could have issued a fixed rate bond.

Equity capital markets bankers are ready for the UK general election to produce a period of disrupted markets if the result is inconclusive. But they emphasise that wider factors governing supply and demand for European stocks are likely to be the dominant factor in whether UK ECM is busy for the rest of 2015.

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The dollar market is providing public sector issuers with an opportunity for primary issuance as other major currencies — euros and sterling — are wracked with uncertainty.

Profit in HSBC’s global banking and markets division in the first quarter increased 10% on the year to $2.95bn, a surge which took group profits up 4% to $7.06bn.

HSBC’s gains in ECM and M&A are offsetting fee compression in its traditional areas of strength such as DCM, writes David Rothnie.

Bankers are preparing the ground for the first Turkish covered bond with Akbank and Garanti Bank lining up for issuance. Pricing for both will be wide of the sovereign and the banks are preparing extensive investor roadshows. While funding officials are confident that the bonds will sell well, syndicate bankers question whether they will find a substantial buyer base.