Loans and High Yield

Rating agency Standard & Poor’s said this week that global credit markets are poised either for a "slow burn" of deteriorating market conditions or something even worse: a credit exit, or "Crexit" — where a major economic or political shock triggers a shutdown of global markets altogether.

The Asian loan market is finally showing signs of life as receding concerns over the pace of renminbi depreciation and bank efforts to look beyond traditional borrowers propel activity. With two or three deals launching nearly every week this month, the pace of issuance has set a strong tone for the rest of the year. Shruti Chaturvedi reports.

The recent success of Indian borrowers in the offshore bond market has sparked talk of a revival in issuance from the nation. While abundant market liquidity and the low yielding environment are a boon for issuers in the high beta country, the window is expected to be short lived, writes Narae Kim.

VPBank Finance, the consumer finance arm of state-owned Vietnam Prosperity Bank, is accessing the debt market for a $100m loan backed by accounts receivable.

India’s Yes Bank is eyeing Taiwanese liquidity for a $100m term loan that comes with an undisclosed greenshoe option.

Greenland Hong Kong and China Railway Group opened books for their respective dollar bonds on Thursday after meetings with investors earlier this week.

A Hong Kong-based senior banker at HSBC, who has worked in the syndicated loans team for nearly a decade, is understood to have left the bank.

US packaging firm Coveris is hoping to join a rush of transatlantic issuance, as it marketed a $350m dollar and euro denominated loan over a lender call on Wednesday.

New Zealand-based packaging firm Reynolds Group has priced its $2.25bn loan package at the tight end of guidance, following what one investor called a "crazy" syndication phase.

Naviera Armas, the Spanish passenger and cargo ferry operator, on Thursday offered its first ever bond. Naviera's bond is also the first debut in the post-Brexit high yield market, which has been dominated by southern European borrowers.

The word of the week in corporate financing markets is Teva — except when it’s Softbank.

A subsidiary of Malaysian upstream oil and gas company UMW Oil & Gas Corp has approached the syndicated loan market for a $150m fundraising.