HSBC

The additional tier one deal pipeline may have shuddered back into life earlier than expected this week as two banks announced roadshows following a rally inspired by inspired by dovish comments from European Central Bank president Mario Draghi. But volatility has since set back into the market and looks ready to test the asset class’s hardiness, writes Graham Bippart.

Burgan Bank has set investor meetings for the first ever international perpetual tier one bond from Kuwait. The Reg S benchmark dollar bond is being arranged by Citi, HSBC, JP Morgan and National Bank of Abu Dhabi.

Insurance conglomerate China Taiping kicked off investor meetings on August 28 for a subordinated perpetual offering. If the deal goes ahead, Taiping will be the first Asian insurance company to issue a dollar perpetual hybrid.

Bank of China has held a beauty parade for its inaugural Basel III compliant tier two offering this week and is understood to have mandated three banks for the offering.

Hong Kong took another step towards its long awaited debut sukuk issue on Thursday, announcing roadshow dates for the proposed dollar deal. The transaction is the first step in the financial centre’s bid to establish itself as a regional Islamic financing hub. But scepticism of the plan and its chances of success remains high, write Virginia Furness and Isabella Zhong.

Concerns that there would be a dearth of additional tier one (AT1) deals ahead of the European Central Bank’s Asset Quality Review appear to be receding as Santander joins the pipeline, mandating leads for its second euro denominated AT1.

The brewery, pub and hotel company Fuller, Smith & Turner, famous for its London Pride premium ale, has signed two revolving credit facilities totalling £180m.

HSBC has promoted Andy Grisdale to chief of staff for commercial banking in Asia Pacific, with Mahbub Rahman moving into his old role as head of commercial banking HSBC Malaysia.

Yingde Gases Investment took advantage of strong technical demand for Asian high yield to price a deal capped at $250m on August 21. Scarcity value — both in terms of size and sector — also buoyed investor support for the bond, which was 10 times subscribed.

India’s Yes Bank is back in the market for a $275m fundraising that is split into one, two and three year portions and offers banks the option of participating in euros or dollars.

CapitaLand made a return to the capital markets on August 21, pricing a S$500m ($400m) 10 year bond. The deal is the largest single tranche Singapore dollar corporate bond this year and wraps up a busy couple of weeks for that market.

Indian company Rural Electrification Corp has launched into general syndication the $170m greenshoe portion of its five year loan. The funds for the original $230m have already been provided by the six bookrunners and mandated lead arrangers and the $170m greenshoe is being syndicated on a best efforts basis.