Loans and High Yield

Europe's bond market is showing few signs of picking up speed before September, though mandates are emerging, while a pair of infrastructure deals — including one for a so-called super sewer — will be keeping loans bankers busy.

China's Yingde Gases Group is tapping the offshore syndicated loan market for a $150m deal. The firm, which earns revenues in renminbi and serves customers in the iron and steel industry, is offering lenders generous returns.

Boutique asset manager Sparinvest will consolidate two of its high yield bond sub-funds into its existing Corporate Value Bonds on September 25, as the company reviews its product range.

Financing for three rival bids to acquire Tesco’s South Korean asset Homeplus feature a senior-junior split, according to market sources. One of the contenders is also said to have secured a letter of commitment from a local pension fund, considered unusual as such funds usually throw their weight behind bidders once they have emerged as the winner.

A depreciating renminbi, depressed commodity prices and tumbling stock markets have made it hard for high yield issuers to access international capital markets recently. But financing needs remain, and the gaps can only be plugged if DCM bankers take a more inspired approach to deals.

Portuguese paper maker Portucel Soporcel on Monday said in a notice filed with the Luxembourg exchange that it will offer, in September, its second high yield bond to repay part of its 2013 notes.

The Abraaj Group has raised $375m for its second fund dedicated to North Africa, as the private equity firm continues to pursue investment opportunities on the continent.

Banks are processing approvals for a loan of around $300m to back the purchase of Ciro’s Plaza in Shanghai.

Tata Power's subsidiary Khopoli Investments is making a quick return to the loan market, mandating six lenders to arrange a $300m refinancing.

Equistone Partners Europe has acquired a majority stake in TriStyle Mode, the German women’s fashion group, with funding from a club of five banks.

International Container Terminal Services (ICTSI) provided a breath of fresh air to Asia’s bond market with its $450m perpetual deal. The lack of issuance this year from Philippine borrowers worked in the company’s favour, but SMC Global Power Holdings Corp’s quick follow-up had to endure a turn of sentiment in the market.

Trio to arrange $500m for SBI — NewOcean Energy returns for $170m — China duo clinch $1.1bn Wuxi take-private loan — Tiphone out for $184m — Kingboard to increase from HK$5bn