Loans and High Yield

Chinese real estate companies Logan Property Holdings Co and Times China Holdings managed to aggressively tighten a pair of $400m four year callable bonds this week.

Vietnamese property developer Novaland Investment Joint Stock Co is making its loan market debut with a $250m facility.

Seven out of eight big companies with heavy carbon emissions are still behaving in a way that will lead to disastrous climate change, according to a report on Wednesday. The finding is not surprising, but underlines the reality that the growth of responsible investing has done far too little to make the economy sustainable.

Leveraged loan and high yield bond documentation is starting to see a new feature creep in — anti “net short” language, which attempts to stop creditors that are short the company from getting a place at the table in a restructuring. The funds targeted by the new provisions aren’t exactly the cuddliest citizens of the capital markets, but they won’t be the only casualties.

Language to prevent ‘net short’ debt activist investors manipulating distressed corporates to benefit CDS positions could prove ineffective in bond documentation, shutting down the changes almost as soon as they have been introduced in the market.

Powerlong Real Estate Holdings has received a $200m term loan from three banks, making a comeback to the loan market after one year.

UniCredit has hired for a range of posts in its financing and advisory team, including roles in infrastructure, high yield, debt origination and as head of the Asia Pacific region.

Shimao Property Holdings and China Overseas Land and Investment took advantage of a strong market backdrop and renewed investor interest in duration to price seven and 10 year bonds, respectively.

China’s Wolong Electric Group is tapping the offshore market for the first time, seeking a €150m loan through sole lead bank Standard Chartered.

Carsten Woehrn will lead JP Morgan’s financial sponsors group for M&A in Europe, the Middle East and Africa.

Oil and gas firm Ithaca Energy is to issue a new $700m unsecured bond as part of the financing for its acquisition of Chevron’s North Sea assets.

Debt-laden Kangde Xin Composite Material Group is facing punishment from a Chinese regulator for inventing Rmb11.9bn ($1.73bn) of profits on its book over the past four years despite being loss-making, and could be forced to exit the A-share market.