Loans and High Yield

An increase in fundraising from financial institutions this year has helped an otherwise sluggish Asia ex-Japan syndicated loan market, as borrowers have found opportunistic windows to cut costs and extend maturities. But as corporate credit growth has slowed, bankers are sceptical about business prospects from the FIG sector, writes Shruti Chaturvedi.

TUS Holdings and a government financing vehicle from Zhuzhou sealed their respective bond offerings on Wednesday, with the former raking in $500m and the latter $300m.

A diverse group of issuers forged ahead with their respective fundraisings on Thursday, seeking everything from dollars to Singapore dollars and green debt.

Cabot Credit Management, the debt purchasing and recovery business, has amended its senior secured revolving credit facility and lowered the margin but kept the same group of lenders.

French sugar and alcohol producer Tereos on Wednesday sold a tap of its 2023 bond. It plans to use the offering’s proceeds to repay high cost bank credit facilities.

Flakt Woods, the Swedish air conditioner supplier, allocated its €300m buyout term loan on Wednesday, at notably wider pricing than most other deals in the market of late.

Corporate bond issuance is continuing at a fast rate in Europe, with three deals on Monday this week and six on Tuesday. But investors have become less willing to accept the tight spreads, yields and new issue premiums that quantitative easing has underpinned for much of this year.

A number of banks are processing approvals for a club loan being arranged by Hong Kong-based personal loan provider PrimeCredit.

Chinese issuers are returning to the international bond market after a one week national holiday, with TUS Holdings and Zhuzhou City Construction Development Group heading out with their deals.

Swedish financial services firm Lindorff has signed €225m in loans to fund its non-performing loans business and to reduce the group's reliance on its revolving credit facility.

Chinese local government financing vehicles Huai’an Traffic Holding and Jiangsu Zhongguancun Science Park Holding Group are hitting the road this week ahead of their first dollar offerings.

Indonesian textile company Delta Dunia Sandang Tekstil has signed its $260m fundraising with 13 lenders, about four months after banks were first sounded out.