Loans and High Yield

Aluminum Corporation of China (Chalco) priced a larger-than-planned $800m deal on Thursday, taking advantage of strong investor interest that led to a 10x covered book.

Electricite du Laos Generation Public Company (EDL Gen) is looking to sell a $300m bond in Thailand late next week, and has mandated two banks to lead the deal.

Research house CreditSights on Thursday told clients that the high yield bond market should have a busy end of the year, a view that echoes the opinion of other market participants this week.

Agro-industrial company Royal Industries Indonesia has failed to pay the first principal instalment on a $380m loan borrowed in June 2015. Although the incident was driven by circumstances unique to the borrower, market observers reckoned banks would now be more wary of lending to smaller, privately-held firms from the country. Shruti Chaturvedi reports.

Chinese conglomerate HNA officially filed notification of its acquisition of Swiss airline caterer Gategroup this week in a move which market participants hope could provide much needed issuance for a subdued levfin market.

BOC Aviation has ended an eight month break from the loan market, sending out a request for proposals for a $1.5bn revolver.

Royal Industries Indonesia is understood to have failed to repay the first principal installment on a $380m loan raised in 2015.

A $405m loan for Blackstone’s acquisition of Indian fintech firm Mphasis has entered general syndication, a couple of months after the borrower expanded the lending group in the senior phase.

Aluminum Corporation of China (Chalco) is out with a new five year on Thursday, having registered plans to sell a foreign currency bond with the National Development and Reform Commission last month.

Sponsor driven merger and acquisition activity has suffered in 2016, with volumes sliding 25% this year to date. There could be a boost to come though, with the final four months of the year historically proving fruitful.

Abengoa, the Spanish engineering and renewable energy firm, is heading to its October make-or-break deadline convinced that 75% of creditors will support its final restructuring debt plans, thus avoiding liquidation.

European high yield bonds and leveraged loans have maintained interest this week for investors, despite a lack of deals, as other parts of the corporate market have finally been lulled to summer slumber.