JP Morgan

Mongolia proved this week that it has gone some way to shaking off the twin stigmas of political uncertainty and reliance on commodity income by pulling off a liability management exercise, the new debt portion of which attracted $5.5bn of orders. Addison Gong reports.

Abu Dhabi Crude Oil Pipeline, a wholly owned subsidiary and strategic asset of Abu Dhabi National Oil Co (Adnoc), has launched its $3bn dual trancher on Thursday with coupons set at the tight end of final guidance and books in excess of $11bn. Though an analyst said the levels offered looked fair, he said he was disappointed by the lack of transparency into Adnoc offered by the note.

Russian steel company TMK has launched a consent solicitation for its $500m 6.75% 2020s with the purpose of removing IPSCO Tubulars, its US based subsidiary, as a guarantor on the notes. An investor in London said that he expects bondholders to agree to the changes.

JP Morgan made an aggressive manoeuvre in the equity-linked bond market on Tuesday night by placing a $250m tap of BASF’s innovative bond with warrants, having outbid other banks, including Deutsche Bank, which had structured and led the original deal.

Another pair of public sector borrowers tapped the dollar market, hitting two and three years respectively, in contrast to Tuesday’s salvo of long end trades. One of the issuers printed well beyond its initial size expectations.

Industrial & Financial Systems (IFS) closed the loan funding for its acquisition of WorkWave without further syndication on Wednesday, evidence the market is still keen on small size offerings amid a raft of large deals.

Ineos, the Anglo-Swiss chemicals manufacturer, cut costs on its term loans for the second time this year on Tuesday, after S&P joined Moody's in upgrading the rating of the new facility on Monday.

Abu Dhabi Crude Oil Pipeline, a wholly owned subsidiary and strategic asset of Abu Dhabi National Oil Co. (Adnoc), has released initial price thoughts on a $3bn dual tranche senior unsecured bond and intends to print the note on Thursday.

Poland’s Bank Gospodarstwa Krajowego (BGK) printed a €750m long 10 year bond on Tuesday from a book of more than €1.1bn and with only a 3bp new issue premium.

Russian gold miner Petropavlovsk has mandated four banks for its debut in the international bond markets, a dollar benchmark.

China Literature’s IPO in Hong Kong, set to raise up to HK$8.3bn ($1.1bn), has been hotly received by investors. Books were well oversubscribed with no price sensitivity at the range given, said a banker at one of the leads.

The Government of Mongolia, rated Caa1/B-/B-, has released initial price guidance for a new 2023 bond, part of a liability management exercise aimed at extending the borrower's maturity curve.