Loans and High Yield

There aren’t many corporate insolvencies that would make a good movie. But any scriptwriters out there wanting to emulate the success of the Enron film should read our coverage of Afren this week.

The middle of August is an acceptable time to be quiet if you are a leveraged loan banker or investor, but as deal flow dwindles, many are reflecting on a disappointing year.

The sharp fall in the renminbi is expected to take a huge toll on offshore bonds in the currency, shutting down the pipeline at least for the rest of the month. But more worrying are the potential longer term consequences if the downward pressure spreads to other Asian EM currencies.

Dongfeng Peugeot Citroën Auto Finance Co has increased the size of its latest loan to Rmb1bn ($158m) from a launch size of Rmb800m, after 14 lenders came in during general syndication. The borrower’s strong market position helped whip up interest, said bankers.

Yingda International Leasing, a company owned equally by General Electric and China’s State Grid Corp, is raising a Rmb500m ($82m) three year borrowing. The deal comes with a greenshoe that allows the bookrunners to double its size to Rmb1bn.

VietinBank, one of the four largest state owned commercial lenders from Vietnam, is accessing the offshore syndicated loan market for the third time this year, via a $100m three year that is now in general syndication. The margin on the loan is below 200bp.

US Reit Medical Properties on Wednesday sold its €500m unsecured bond drawing attention from investment and non-investment grade buyers by being the only corporate issue of the day.

Bain Capital-owned Wittur, the German lift components producer, has alerted lenders that a financing package backing its merger with Sematic is on the way.

Medical Properties Trust, a US Reit, has proved that there is life in the European corporate bond market, even in the depths of August, by launching today a €500m deal, bringing to fruition a roadshow it held as long ago as May.

Dongfeng Peugeot Citroën Auto Finance Co has increased the size of its latest loan to Rmb1bn ($158m) from a launch size of Rmb800m, as 14 banks piled in during general syndication. The borrower’s strong market position helped whip up interest, according to bankers.

A $550m borrowing for Bank Rakyat Indonesia’s (BRI), which is due to be prefunded by a club of 11 banks, is expected to go into general syndication. Lenders are waiting for Bank Indonesia approval and are targeting signing by the end of August, with the first drawdown in the first week of September.

Medical Properties, the US real estate investment trust, held a call with European bond investors on Tuesday, for the second time this year, as it prepares to sell euro notes.