Loans and High Yield

Deutsche Bank’s resurrection as a force in capital markets will have to wait a little longer, based on disappointing second quarter figures the bank released on Thursday. Though the bank has rebuilt its capital base and settled many of its legal issues, its investment bank underperformed second quarter numbers from US peers.

Asian bond investors reclaimed some of their power this week, but the coup was far from bloodless. Three single-B rated issuers were forced to pull planned dollar bonds. Morgan Davis and Addison Gong report.

The race for the fixed line assets of Hutchison Telecommunications is nearing the finish line, with details emerging on the financing to support a bid by US private equity firm I Squared Capital. The firm is competing against a joint bid from MBK Partners and TPG Capital, which can already boast one clear win in the sector. Shruti Chaturvedi reports.

India’s Nirma is set to hit the US term loan B market for financing to back its bid for Tronox Alkali, a US-based company. The flexibility that comes with selling into an institutional market pushed Nirma to pick a combination of a US TLB and a bond for its acquisition, said bankers.

Nitrogénmuvek, the Hungarian fertiliser group, became the second borrower with high yield ratings to cancel a deal this month, after Tereos pulled a highly structured bond seven days ago. This time, the problem was size.

Indian solar energy producer Azure Power Energy started marketing its debut international green bond on Thursday. The deal was announced two days after another Indian energy firm, Continuum Energy Levanter, pulled its own dollar bond.

Jane Street Group, the electronic trading firm, held bank meetings in New York on Wednesday and London on Thursday for its debut syndicated loan, a $600m-equivalent term loan split between euros and dollars.

Hungarian fertiliser group Nitrogénmuvek launched the smallest high yield bond offering of the year so far on Wednesday. But guidance suggested the borrower seeks to pocket large savings as it refinances its old 2020s.

Single-B rated bond issuers in Asia got a major setback this week, with three debut credits pulling their planned dollar offerings. There were plenty of reasons for their failures, but bankers say the cancellations reflect a debt market transitioning from one dancing to the tune of borrowers to one being dictated by investors.

Unilever, Eversholt Rail and Grand City Properties have all defied the season this week to bring corporate bond issues, and been rewarded with strong demand.

Sri Lanka has reached its target of $1bn from a three year syndicated loan that was launched at $450m, after demand poured in from Indian lenders.

Bain Capital’s Diamond, the cleaning chemicals business, had to remove a controversial restricted payment clause before printing the triple-C rated bonds of its new financial structure on Tuesday.