Loans and High Yield

Government-backed Inner Mongolia Baotou Steel Union Co has become the latest issuer in Asia to pull a dollar bond, faced with a market overloaded with supply.

A broad range of Chinese issuers have mandated banks to arrange roadshows in Hong Kong and Singapore early next week ahead of their dollar bond transactions.

The march of responsible investing took a step into the high yield bond market this week, as both M&G and Candriam launched funds that will use environmental, social and governance factors to influence their investment choices.

Leveraged loan issuers used to call on direct lending players to pre-place small portions of their offerings, mostly second liens. But as direct lenders grow bigger funds, their appetite for loans is starting to impact entire deals.

Borrowers and investors marched on in the European leveraged finance markets this week, pricing €1.5bn of high yield bonds while bankers have been able to tighten terms on new loan deals during syndication. Deals pulled earlier in the week in the US are already a fading memory.

Elis, the French laundry group, has raised €600m from 12 banks, in part to pay off the bridge facility it used to acquire UK rival Berendsen in the summer.

Concord New Energy Group, a Chinese wind and solar power company, was forced to pull its planned green dollar bond debut on Wednesday after it was caught in a down market.

Dalian Wanda Commercial Properties (DWCP) has put together a three-pronged plan to address problems related to its offshore loans, worth close to $1.5bn. The deal itself is giving lenders enough of a headache. But it has also put the spotlight on other loans guaranteed by onshore parents in China, writes Shruti Chaturvedi.

Reliance Communications, an Indian telecoms business, defaulted on a $300m bond this week, failing to make a coupon payment to offshore investors after being given a seven-day grace period. The company has put together a plan to restructure its debt, but it has been greeted with widespread scepticism. Addison Gong reports.

Chinese property company Xinyuan Real Estate Co raised $200m from a 2020 transaction on Wednesday, managing to price the deal in a difficult environment.

Shenzhen International Holdings and Tahoe Group Co have mandated banks to organise roadshows for new dollar bonds.

Natixis has boosted its distribution capabilities in southeast Asia by bringing in a former BNP Paribas loans banker.