Loans and High Yield

The influx of Chinese M&A into Europe has brought the terrifying task of evaluating the credit risk of clandestine Chinese state-owned enterprises — but the loan structures used so far protect lenders from the unknown.

Moody’s on Tuesday cut the rating of Obrascón Huarte Lain, the Spanish construction company which last week tried to repay a €300m 2020 bond to rein in its debt.

Jefferies has reorganised its leveraged finance division, with two senior managers understood to have left the firm.

The Islamic Republic of Pakistan has launched its third syndication in just the past year, seeking a $150m financing this time around.

Spain’s troubled renewable energy multinational Abengoa told GlobalCapital on Monday it could announce a joint plan with creditors to avoid bankruptcy as soon as this week ­— some 15 days before its March 28 deadline.

The European leveraged loan market has ground to a halt, with the pipeline looking thin and the few deals in the market struggling.

Holding Slovenske elektrarne (HSE), the largest electricity provider in Slovenia, will begin roadshowing its high yield debut bond on Tuesday, as market conditions recover from a bruising start to the year.

Singapore real estate firm Ascendas ventured into the country’s domestic bond market on Monday with a S$100m ($72.8m) offering that was largely driven by reverse enquiry.

The government of Mongolia is testing the market’s appetite for a $200m two tranche loan that has launched into syndication.

Saka Energi Indonesia, the upstream oil and gas arm of state-owned Perusahaan Gas Negara, has signed its $600m loan, finding demand from seven lenders in syndication.

Four banks are favourites to win the mandate for a $500m borrowing by the Democratic Socialist Republic of Sri Lanka, which sent out a request for proposals for the loan in June last year.

Ping An Real Estate Capital has set out for a $200m loan that comes with an unspecified greenshoe option.