Loans and High Yield

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.

China Houze Group, a non-bank financial company, has embarked on its maiden offshore loan syndication with the help of International Finance Corp.

Volumes in the US high yield market were given a boost on Monday from a $2.5bn dual tranche deal from T-Mobile, which the mobile operator will use to refinance old debt.

HIG Capital has acquired a controlling stake in German manufacturing firm Beinbauer Group. The fund used financing from direct lender Beechbrook Capital, with both borrower and lender praising the flexibility of the evolving direct lending market.

The Index Industry Association on Monday revealed that its members administered about 3.29m indices around the world, with more than 95% of those referencing equities.

Belgian cybersecurity firm Securelink, Greek cement group Titan Cement and US storage provider Algeco announced new high yield bonds totalling €1.6m on Monday, as talk of potential spread widening grows in the European high yield bond market.

Petkim Petrokimya Holding brought the first high yield corporate trade from Turkey since 2014 last Friday, raising $500m with a sub-6% coupon.

Indonesian construction services company Wijaya Karya began marketing an offshore rupiah deal on Monday morning, making it the second Komodo bond from the country to hit the market.

The riskiest end of the US high yield market is heating up, after restaurant chain Arby’s priced a triple-C rated bond on Thursday at levels some bankers said would draw in other low-rated borrowers.

The German private nursing care group Alloheim Senioren-Residenzen is out with a new leveraged loan offering to fund its buyout by Nordic Capital. This loan is among the first deals to be lined up to close in February, as hopes build of a surge of merger and acquisition driven borrowing.

Investors showed their faith in Tata Steel on Thursday, pouring money into the Indian issuer’s dual-tranche transaction, shrugging off the weak structure and aggressive pricing.

Peking University Founder Group Company and Bank of Communications Financial Leasing Co used keepwell deeds for their dollar bond sales on Thursday, paying a bit of premium for the structure.