Loans and High Yield

Jitters around Italy’s political turmoil made its way to Asia’s bond and stock markets on Wednesday, forcing debt capital markets bankers in the region to hit the pause button on deals.

High yield bonds have sold off as financial markets have been rocked by the collapse of Italy’s coalition government-in-waiting — but a deeper concern is that the real cause of the weakness is anxiety about Europe’s economy itself.

HSBC’s financial sponsors team has been hit with another departure in a move linked to the ousting of Matthew Westerman as co-head of global banking last year.

Property developers Times China Holdings, Central China Real Estate and China South City Holdings raised funds from the dollar bond market on Monday, with all three finding sufficient buy-side interest.

Philippine firm Rizal Commercial Banking Corp is seeking a $300m offshore loan via five mandated lead arrangers and bookrunners, according to a banker with knowledge of the deal.

China Energy Reserve & Chemicals Group Co (CERCG) said on Sunday evening that it has officially defaulted on its dollar bonds, marking the third offshore default from Greater China in recent weeks. Markets participants are not stressing about it though, but are instead optimistic about a strong week for primary and secondary markets.

Shop Direct’s sterling high yield bonds dropped this week as investors balked at cash distributions being made to the company’s shareholders, David and Frederick Barclay. The brothers did not comment on the company’s dividends in a statement on Friday.

China Overseas Grand Oceans Group (Cogo) raised a larger than expected $500m from a three year bond on Thursday, a week after pulling a 2023 transaction. Future Land Holdings Co also managed to woo investors to a $200m tap.

Vietnamese telecommunications company Viettel Group has returned to the syndications market after two years for an up to $150m term loan, according to a source close to the situation.

JP Morgan has named Mahir Zaimoglu head of EMEA financial sponsors M&A and deputy head of its sponsors group, in a move intended to reflect the increasing importance of PE firms, sovereign wealth funds and family offices as drivers of M&A activity.

One of the most radical reforms ever made to financial markets is set to become law in a matter of weeks. Investors in Europe will have to ask clients about their environmental, social and governance preferences, and then abide by these choices.

The European Commission adopted its first Sustainable Finance package on Thursday — draft laws that will begin to implement its strategy. The proposals have been changed at the request of an internal EC committee, to make them more workable, especially when it comes to the planned Taxonomy of green and sustainable activities.