JP Morgan

Singapore can finally lay claim to a covered bond market after its largest bank, DBS, this week printed the country’s first deal in the asset class. The build-up was hardly plain sailing, but that did not stop DBS executing a very successful trade that will serve as a benchmark for its peers, writes Rev Hui.

It has been mooted for years but investors are finally getting their first taste of covered bonds out of Singapore with the Lion City’s largest bank DBS opening books to a dollar offering on July 29.

Agence Française de Développement sold a dollar syndication on Tuesday, but with the latest statement from the US Federal Reserve’s Federal Open Market Committee due on Wednesday further deals are unlikely this week, said SSA bankers.

Zegona Communications, an Aim-listed operating company set up to buy, fix and sell European telecoms firms, is acquiring the entirety of Telecable de Asturias for €369m.

China’s eHi Car Services and Tingyi Holding Corp will be on the road for investor meetings this week ahead of dollar and offshore renminbi (CNH) notes, respectively.

KfW was able to double its minimum target with a rare 20 year bond on Friday, using a tactic that SSA bankers away from the deal believe other issuers could follow over the summer.

Two Chinese issuers in the commodities sector – China Oilfield Services (COSL) and China Minmetals Corp – launched bookbuilding for dollar bonds on July 23. But there was little concern about the competition as the borrowers only looking to raise $1bn each and bankers were confident about the amount of liquidity in the market.

The European high yield market this week saw towering deals like SoftBank’s $4.5bn and Synlab’s €1.1bn, but investors also found a place in their portfolios for smaller notes.

Beni Stabili, the Italian property company largely owned by Foncière des Régions, priced on Thursday a €200m convertible bond at a 0.875% coupon and 32.5% conversion premium.

Austrian insurer Uniqa Group proved that subordinated debt is back on the table on Monday, paving the way for Ibercaja to print a tier two.

The primary market for peripheral European covered bonds leapt back to life this week after a 12 week hiatus, with investors queuing up to buy a series of deals that emerged in quick succession.

Armenian financial Ardshinbank priced a $100m five year amortising deal on Wednesday, and became one of only a handful of CEEMEA borrowers in recent years to offer a 12% yield.