Loans and High Yield

Sumitomo Mitsui Banking Corp has beefed up its loans distribution team for Asia, in line with its objective to build its capabilities in the business.

Shanghai Sinooil Energy Holding Hong Kong, a unit of China Energy Reserve and Chemicals Group, has had commitments from 23 banks during syndication of its debut $400m offshore loan.

Chinese iron and steel making conglomerate Hesteel Group Co has snapped up $500m on the back of a price rally in the steel sector onshore, with bankers praising the company’s efforts to woo accounts during a roadshow.

Senior loans banker Sean Joseph left ANZ Bank on Friday, according to a source close to the matter.

HSBC is considering setting up a private debt platform within its asset management unit, a move one senior market professional said would break new ground in the sector.

Arvos, the industrial equipment firm, has a bank meeting scheduled for Friday in London for a €130m incremental term loan as it looks to repay its existing second lien facility.

K+S, the German potash processor and mining group, launched on Thursday its first bond since losing its investment grade ratings.

Nets, the largest Scandinavian payments processor, priced its first euro bond on Thursday amid keen demand for top rated high yield paper that is leading to low coupons.

The first quarter loan syndication numbers for Asia ex-Japan are out and they are not pretty, with volumes plummeting 50% year-on-year. But with some big M&A deals in the works, bankers are bullish about the second quarter and expectations are rising for more activity from China and India.

Athens-listed Motor Oil Hellas Corinth Refineries sold a sub-benchmark size note on Thursday, the second Greek corporate deal in the euro high yield market so far this year.

Asia ex-Japan G3 DCM volume reached a new high in the first quarter, with high yield names staging a resurgence. Chinese borrowers dominated the market, but given their deal timing is being tightly regulated, high yield credits from the rest of Asia are jumping into action, buoying sentiment for the next quarter. Addison Gong reports.

Arvos, the auxiliary components business, has a bank meeting scheduled for Friday in London for a €130m incremental term loan as it looks to repay its existing second lien facility.