Loans and High Yield

Indonesia’s Soechi Lines finally succeeded in selling a dollar bond this week, after multiple attempts to grab international investors’ attention.

Terratest, the Spanish geotechnical engineering business, has acquired US construction consultancy GeoStructures with funding from Tikehau IM.

So far this year, the European corporate bond market has been an issuer’s market without many issuers. Or perhaps, the feeling that this January has been quiet is a measure of how used market participants have become to a torrent of deals.

Chinese companies Xiamen Xiangyu Group Corp and Shimao Property Holdings each raised $500m on Tuesday, but saw different reactions to their bonds. While investors were keen on the former investment grade rated name, demand for the property industry is starting to see some pull back.

Indonesia’s Medco Energi Internasional and China’s GCL New Energy Holdings bagged $500m each from debt investors on Tuesday, showing the appeal of the commodities and renewable industries.

Dongying Fangyuan Nonferrous Metals Co has made a rapid return to the dollar loan market, seeking commitments for a $100m one year facility.

Axilone, Comexposium and Hurtigruten have begun the syndication of a combined deal volume of €1.5bn, but European leveraged loan spreads are now so tight that some investors are heading for the exit.

Nordic high yield bond bankers are making a play to attract more borrowers from elsewhere in Europe, promising them access to local investors familiar with mid-cap borrowers and small deal sizes. This week, SecureLink, a Belgian software security company, listed its first bond on the Oslo Stock Exchange.

Fosun International raised $700m from two bonds on Monday, tapping an outstanding three year sold at the end of 2017 while extending its maturity profile with a new five non call three year. The deal came a week after Moody’s raised the issuer’s corporate family rating by one notch.

Indonesian construction services company Wijaya Karya sealed a Rph5.4tr ($404.7m) offshore rupiah bond on Monday, a key deal in the opening up of the Komodo bond market.

Shenzhen Sunway Communications has reached out to lenders for an up to $250m borrowing, marking its debut in the overseas loan market.

Komodo bonds — offshore Indonesian rupiah bonds — are finally sputtering into life. This week, the second such deal by an Indonesian company has shown their potential. But don’t count your dragons before they hatch. The market will always be limited — and that’s a good thing.