Loans and High Yield

Rexel, the French distributor of electrical supplies, on Wednesday sold €650m of unsecured notes on a day when investment grade buyers moved into the high yield market.

Moody’s said on Wednesday that Ardagh’s issuance of $4.5bn of bonds late on April 29 was credit positive for the B2/B rated Irish glass and metal packaging manufacturer.

Spanish car parts maker Gestamp on Wednesday priced a €500m secured bond to redeem all of its old euro notes at first call.

JP Morgan’s head of syndicated and leveraged finance Australia has left the bank, with the head of European loan trading having resigned also, sources with knowledge of the matter have confirmed.

A managing director of loans execution will leave Barclays in London at the end of May.

This is a truncated week, with a UK holiday on Monday and France and Germany out on Thursday, but companies have crammed Europe’s investment grade bond market with deals in the two days in between.

Indian companies are showing interest in issuing offshore rupee-denominated, or Masala, bonds but a leading financier warns that the market will not heat up until the central bank allows private banks to fund deals.

China’s fast-growing bond market could provider a major new source of corporate financing at a time when the banking sector is under strain, but some analysts are becoming concerned about the risk of a bubble building up.

Chemicals producer Inovyn on Tuesday began the roadshow for a €300m secured bond that will replace a portion of term loan ‘B’ funding being issued to support its full takeover by Ineos.

The International Swaps and Derivatives Association is moving to distance itself from the process by which credit derivatives disputes are resolved, having offered up to tender its secretarial role on the regional determinations committees (DCs).

The default by two state owned enterprises this year has stirred fears that the surge in China’s debt to 240% of GDP heralds further problems that could spill over into the offshore bond market with profound negative consequences.

China Aluminum International Engineering Corp (Chalieco) is planning to issue renewable bonds in China’s domestic debt market to expand its funding channels.