Loans and High Yield

Deutsche Lufthansa deferred the coupon on its hybrid debt, surprising the market and sending the bonds spiralling down almost nine points. The company said the decision came as the coupon payment would have violated state aid rules in relation to Lufthansa’s bail-out from the German government.

Indonesian multi-finance companies are continuing to favour club loans over syndicated deals, with Federal International Finance becoming the latest firm to use this route for its fundraising. Pan Yue reports.

Akropolis, which operates shopping centres in the Baltic region, is readying a debut high yield bond issue.

Premier Foods announced a long-expected refinancing of its main wholesale debt, a £300m 2023 bond which first came up for call last year. The refi comes as the firm published preliminary results to the end of Q1 showing profits up more than 20% for the year, and debt levels coming down.

A landmark in global energy policy was reached on Tuesday when the International Energy Agency published its Net Zero by 2050 model, its first detailed attempt to set out how the energy industry could transition to net zero greenhouse gas emissions.

Leveraged loan investors that took a punt on Carnival’s rescue financing last year are set for a huge payout, as the cruise operator looks to reprice its term loan Bs.

David Cameron’s involvement with Greensill Capital blew a financial scandal into a political crisis, as details emerged of the close contacts between the company, civil servants, ministers and the British establishment. Last week, UK lawmakers had their chance to grill Cameron directly, in a session which can’t have been too comfortable. But amid the self-exculpation, the ex-Prime Minister had a couple of good points.

Indonesian multi-finance company Federal International Finance is making a quick return to the market for a $250m new money loan, having closed two deals in the past year.

Chinese issuers Redsun Properties Group and Shandong Hi-Speed Group Co have hit the offshore bond market, grabbing a brief issuance window ahead of a public holiday on Wednesday.

Singapore’s food and agri-business Olam has raised a $1bn loan to support its acquisition of US spices and seasoning company Olde Thompson.

Barclays has hired Mani Joseph from Goldman Sachs to lead its Asia special situations team.

With inflation expected in the coming months, investors are set to allocate more cash to floating rate instruments – tipping the scales toward loans in leveraged buyout financings.