Loans and High Yield

The fate of credit default swaps referencing Grupo Isolux Corsán Finance hung in the balance on Thursday, with the International Swaps and Derivatives Association’s EMEA Determinations Committee weighing whether the company would become the third of last August’s five widest trading iTraxx Crossover constituents to trigger a credit event in 12 months.

Auto-parts business Adient on Thursday started pricing a $2bn cross-border bond, attracting high demand for a deal that could be the last high yield offering before the European market breaks for the summer.

Road King Infrastructure’s new $450m three year bond proved widely popular among investors, attracting an order book of about $6.5bn.

After a successful outing in the bond market in June this year, India's Samvardhana Motherson Automotive Systems Group returned for a tap on Wednesday, in what bankers described as an opportunistic transaction.

Lippo Karawaci navigated a crowded primary bond market on Wednesday to add $260m to its 2022s with a tap. The success of the deal reflects a big improvement in market sentiment compared with the early part of the year, when the Indonesian developer failed to pull off an exchange offer.

NTPC ventured into uncharted territory on Wednesday, issuing India’s maiden green bond denominated in offshore rupees. While the deal is expected to be the first of many, the development of the asset class depends on the stability of the currency and secondary market liquidity. Narae Kim reports.

From September 30, Bank of America Merrill Lynch's benchmark index for global corporate high yield bonds will only list issues of €250m or higher — reflecting the market's taste for larger transactions.

The International Swaps and Derivatives Association’s EMEA Determinations Committee has delayed until Friday a decision on whether Grupo Isolux Corsán Finance has triggered a bankruptcy credit event.

Ion Trading, the Ireland-domiciled electronic trading software firm, had replies due on Wednesday for its $200m equivalent incremental term loan dividend recapitalisation, as had Dutch pharma firm Mediq, with some investors saying market valuations look frothy.

There is a distinct sense of impending summer slowdown in corporate debt this week, both for loans and bonds. But that has not stopped a number of borrowers rushing to wrap up sizeable deals before the window closes.

Primary bond activity in Asia sprang back to life on Wednesday following a slow start to the week, with high yield issuance leading the way.

The Asia ex-Japan debt market is set to welcome a landmark trade this week, with NTPC marketing India’s first offshore rupee-denominated green bond of up to Rp15bn ($224.6m).