Loans and High Yield

Cambodia’s Prasac Microfinance Institution has decided to increase the size of its loan to $100m after receiving commitments from 14 lenders to the oversubscribed deal, according to a banker close to the situation.

Asiana Airlines, South Korea’s second largest carrier, fell victim to the rising interest rate environment, cancelling a senior perpetual bond sale on Thursday. While the notes had a relatively investor friendly structure for a perp, credit analysts did not see much value in the deal.

India’s Tata Motors is seeking an up to $250m loan to buy back bonds that are due in 2020.

Chinese optical fibre developer Hengtong Group has hit the international loan market for the first time for a $100m fundraising.

Corporate and financial institution bond issuance resumed in Europe this week as calm returned to markets after bruising Italian political turmoil led to an ugly and deal-less end to May. With a government installed, markets are working again, but the heavy backlog of issuers is emerging only slowly, anxious not to arrive too soon. Jon Hay, Nigel Owen and Victor Jimenez report.

The age-old debate of loans versus bonds has picked up pace amid turbulence in the debt capital markets, as banks and borrowers in Asia try finding the most suitable funding options, writes Pan Yue.

UBS has appointed Kevin Cui and Terry Schmassmann as co-heads of Asia DCM syndicate, effective immediately, according to an internal memo seen by GlobalCapital Asia.

Demand for leveraged debt in Europe is slowly recovering after weeks of heightened political volatility in the eurozone, some investors said this week.

After a volatile May, which ended with a week of no corporate bond issuance as market volatility and public holidays took their toll, investors have welcomed the slow, steady pace at which supply has returned.

Guangzhou R&F Properties Co raised $200m from a tap of its existing bonds on Tuesday, opting to reopen an old deal amid a challenging market environment.

DS Smith, the UK packaging company, has offered to buy Spanish rival Europac, with £1.65bn of financing underwritten by US banks already prepared for the transaction.

Swiss telecommunications group Salt Mobile was this week looking to replace most of its debt capital structure with Sfr2.085bn-equivalent (€1.8bn) of new bonds that have weaker covenants, as the high yield market overcomes a recent bout of eurozone volatility.