Loans and High Yield

Värde Partners plans to fund the acquisition of Spanish consumer credit bank WiZink with payment in kind (PIK) notes, a type of high yield issuance that borrowers have barely used in the last 18 months.

China Aircraft Leasing is back with a $790m borrowing, pushing for a longer tenor to support its aircraft purchasing.

Fortune Oil PRC Holdings has returned to the offshore loan market for a $400m borrowing, refinancing a smaller deal closed in 2016.

Chinese high yield property bonds have been battered in the primary and secondary markets for much of 2018. Many issuers have been forced to steer clear of the market, fearing expensive pricing at best and failed deals at worst. But regulatory changes in China’s domestic market are starting to have an impact offshore, giving real estate companies the vote of confidence they have been waiting for. Morgan Davis reports.

China Fortune Land Co and Sunac China Holdings have closed new dollar bonds, following a pair of successful taps that proved the market is returning to form.

The flow of primary investment grade issuance in Europe has ground to a near halt, with only one new issue of decent size this week from Connect Plus. The focus for investors in on September and the European Central Bank’s strategy for the rest of the year.

Investors in the European leveraged finance markets speaking to GlobalCapital said that, while issuance is lagging behind 2017's figures for the period, there is appetite for an increase in supply.

Colin Withers left ING’s EM and high yield syndicate last week after seven years at the bank and shortly before Uzair Burney, a high yield syndicate official from Lloyds, is set to join the desk.

Ceva Logistics and Promontoria, a Cerberus issuing vehicle, announced new bonds in the European high yield market this week, with investors appearing more willing to add risk.

Chinese developer Yuzhou Properties has followed the success of fellow property company Agile Group Holdings by tapping its existing bonds. While high yield issuers have struggled in recent weeks, improving investor sentiment is offering some high yield borrowers fund raising opportunities.

Some fund managers and underwriters are gearing up to keep Europe’s high yield market open during August, as borrowers show more willingness to bring new paper during a traditionally quiet month.

Joint Stock Commercial Bank for Investment and Development of Vietnam has postponed the deadline for its latest dollar loan until next week. But the move is not a sign of poor demand — the deal looks likely to be doubled to $300m.