Loans and High Yield

Indonesian property developer Modernland Realty missed a coupon payment on its dollar bond this week, triggering a further downgrade in its rating.

Investors rewarded Zhenro Properties Group for selling its first green bond this week, pumping orders into the $350m transaction and allowing the issuer to price the deal at its lowest coupon ever.

Hong Kong-based conglomerate First Pacific Co had to navigate underperforming bonds from peers and difficulties around price discovery for its $350m bond return.

NewOcean Energy Holdings is seeking consent from banks to postpone a principal payment on a $150m loan signed in 2016.

Market observers believe that investors in open-ended debt funds need to be disincentivised more than they are at present from scrambling to liquidate their holdings in a market downturn.

Issuance of sustainability-linked bonds is set to resume next week, after a year’s hiatus since the product was introduced by Enel, the Italian power and gas company. Many possible deals have fallen by the wayside, as market participants have realised the structure is more difficult to use than they had thought. But Suzano, the Brazilian paper company, will roadshow an issue on Tuesday and Wednesday and other transactions are expected in the coming months.

Once Schuldschein market darlings, auto parts suppliers are beginning to look to lenders like they may be in distress. Some fear a wave of credit restructurings on the horizon, when the market's lean documentation standards are likely to be tested.

Ex-Barclays banker joins Finsbury to develop equity advisory — Laubjerg hired for natural resources at HSBC — Rousseau leaves Deutsche and joins Citi

HSBC might be in the middle of a big restructuring, but that isn’t stopping plans to develop mid-market M&A efforts in France, Germany and Asia as well as the UK, writes David Rothnie. The bank has also bolstered its teams covering specific sectors.

There is about €4tr of European corporate debt due to mature between now and the end of 2025, though syndicate bankers say that the market is primed to cope with bumper issuance levels.

Chinese property developers China South City Holdings and Kaisa Group Holdings offered generous premiums for their bond outings this week in a bid to ensure strong aftermarket performance.

The sustainability-linked bond market is about to get its second deal. Suzano, the Brazilian pulp and paper company, is preparing to bring a deal linked to its carbon emissions intensity, as foreshadowed by GlobalCapital in February.