Loans and High Yield

Chinese corporates and FIGs contributed to most of the primary supply in Asia DCM on Tuesday, with China Oil and Gas Group, Yida China Holdings and Citic Securities snapping up a combined $1.45bn.

The slightly softer tone in the Asian markets on Tuesday did not deter issuers from flocking to the debt market, with as many as eight borrowers bagging new bonds. And the momentum continued on Wednesday, with a handful of firms opening their transactions.

Private equity firm Black Toro Capital has invested €40m to finance an acquisition by a private company that will create Spain’s largest ice cream maker.

Crédit Agricole became the largest shareholder of Abengoa on Tuesday, after Banco Santander disclosed to the Spanish financial regulator the sale of most of its holding in the engineering group.

Asset managers are looking to buy a piece of a $405m loan that is being restructured for Royal Industries, according to bankers on the deal. The Indonesian palm oil seller proposed the restructuring after failing to pay its first and second instalments.

Asia’s primary DCM market is busy on Tuesday ahead of the long Easter weekend, with Lianyungang Port Group, China Oil and Gas Group, Yida China Holdings and Golden Wheel Tiandi Holdings Company opening books for their respective dollar bonds.

Citi has appointed a new head of global capital management for EMEA and new co-heads of EMEA loans and has hired a new co-head of leveraged finance EMEA, as it reorganises its leveraged finance and loans businesses within the global asset managers group.

Potential high yield bond issuance for this week shot up above €2.4bn with a new €1bn offering from Grifols, the plasma medicine manufacturer based in Barcelona, which is closing the last leg of its debt refinancing.

Dubai retailer Damac Real Estate was out with a five year sukuk on Monday — a deal which featured a Russian bookrunner for the first time on a Gulf deal — as Mubadala marketed a conventional dual tranche dollar bond following its merger with IPIC.

Bain Capital and Cinven have agreed to buy Stada, the German generic pharmaceuticals firm, for €4.1bn, in the biggest private equity acquisition of a European company for four years.

Erste Asset Management has launched a new fund for EM corporate bonds with shorter maturities, catering for defensive positioning by investors amid rising interest rates.

Eight lenders will arrange a $750m five year borrowing for an entity in the Vedanta Group, in a deal that has been in discussion since January.