Loans and High Yield
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The European high yield market appeared unfazed by the spike in Italian risk despite its heavy exposure, with calm secondary trading and Italian names daring to roadshow for new bonds. -
Sri Lanka’s Nations Trust Bank (NTB) has raised a $50m five year loan arranged by Dutch development bank FMO.
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Asia Pacific Resources International Group, a pulp and paper producer also known as April, is self-arranging an up to $1bn offshore loan.
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Turbulence in China’s equities and bond markets forced Shimao Property Holdings to cull one portion of a dual-tranche dollar bond deal this week as investors shied away from the longer tenor.
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Yields on dollar bonds from Chinese issuers have jumped this year, but investors don’t appear to be rising to the bait. A rethink of borrowers’ fundraising strategies should be on the cards.
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Leveraged buyouts are making a comeback in the European high yield market in October, with the new €1.3bn note for CVC’s acquisition of Italian pharmaceutical firm Recordati the latest example.
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Chinese stock markets led the decline among all major Asian indices on Monday, as woes in the region’s bond market also continued. Debt issuers aiming to kick off their deals this week have their work cut out for them.
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A spike in US Treasury yields on Thursday had a knock-on effect on bond spreads in Asia, posing an additional challenge for issuers ready to head out the gates next week.
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As environmental and social “impact” becomes a ubiquitous buzzword in financial markets, the risk of muddle and conflict over what it means has intensified, even giving rise to the term “impact washing”. But efforts to shed light and bring harmony are advancing rapidly, with three major contributions in the space of three weeks.
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The International Finance Corp will launch next week at the World Bank/IMF annual meetings in Bali a set of Operating Principles for Impact Management, which are designed to complement the framework for analysing impact produced by the Impact Management Project.
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Most European leveraged loan deals in October are achieving savings of 25bp and more over price talk, with demand on the rise. The loan offering to fund Advent’s buyout of Distributed Power confirmed this trend, as it tightened margins and issue discounts.
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As the clock ticks down to the end of 2018, Asia’s debt issuers and bankers are hoping for a rebound in supply. But they have to first face a number of challenges, writes Addison Gong.
