Loans and High Yield

Gansu Provincial Highway Aviation Tourism Investment Group Co priced a $300m bond that was over eight times covered at its peak, in yet another busy week for issuance from Chinese local government financing vehicles (LGFVs).

China’s tighter grip on offshore bonds from local government financing vehicles (LGFVs) has given a short-term boost to issuance volume in the past few weeks. But although the deal flow from the sector is set to slow down, concerns over LGFV risks are far from over.

Leveraged credit investor group the European Leveraged Finance Alliance, which started this year supported by the Association for Financial Markets in Europe, has parted ways from the larger organisation, following a six month trial period.

The board of BCA Marketplace, a UK second hand car trading website, announced on Wednesday that it would recommend a £1.9bn offer from TDR Capital to take the company private. BCA owns the WeBuyAnyCar.com website.

SMC Global Power Holdings Corp (SMCGP) has added an opportunistic $300m to its coffers from a reopening of its popular 6.5% perpetual bond, spying a good window to return to the market.

Shanghai Shangshi (Group), part of Chinese state-owned Shanghai Industrial Investment Holdings, is tapping the offshore loan market for $190m.

CMB Financial Leasing raised $1bn from two dollar bonds on a day that a number of Chinese local government financing vehicles (LGFVs) and property developers also cashed in on the conducive market backdrop for new issuance.

Travelodge is planning to dip into the sterling market to refinance all its bonds, issuing up to £440m in senior secured floating rate notes. It would take advantage of a window for UK issuance before the likely resumption of political worries in the autumn as the Brexit deadline approaches.

The US Commodity Futures Trading Commission and the UK’s Financial Conduct Authority have added regulatory pressure to the credit default swap market, pledging to clamp down on manufactured credit events.

Fosun International has raised a larger-than-expected $700m to help fund a tender offer that will close next week, while Kaisa Group Holdings was in and out of the market with a $500m tap of two existing bonds.

State-owned Argentine oil and gas company YPF became the first borrower from the country to tap international bond markets in 14 months on Monday. Yet despite a healthy reception from investors, bankers do not expect copycat trades from other Argentine issuers.

Crédit Agricole CIB has reorganised its leveraged credit business, bringing leveraged loan and high yield bond syndicate and sales together, while also combining LBO, telecoms, and high yield bond origination.