Morgan Stanley

Two SSA borrowers are coming to the market for euro deals on Tuesday. The European Financial Stability Facility and Erste Abwicklungsanstalt will both print what are likely to be their final benchmarks of the year.

Royal Dutch Shell’s choice this week of a tight syndicate, heavy with US banks, to lead $4bn and €3bn of bonds has laid bare the sense of vulnerability among banks outside the US bulge bracket, as some expressed resentment at being left out of a lucrative and prestigious mandate.

High grade dollar bond investors are braced for the biggest deal of the year after AbbVie, the pharmaceutical company, appointed a trio of banks to lead a possible $25bn issue that could come as soon as Monday.

Two SSA borrowers tapped the seven year part of the euro curve this week, but came away with different results. Luxembourg received an oversubscribed book for its deal on Wednesday, while Nederlandse Waterschapsbank (NWB Bank) had to price without fully placing its €1bn trade.

A move in the Bund curve left the market too volatile for Nederlandse Waterschapsbank (NWB) to fully place its seven year euro benchmark on Thursday.

The State Export-Import Bank of Ukraine is on screens for its first ever tier two bond, angling for a steep price.

Chinese hotel company Huazhu Group has launched a roughly $1bn loan into general syndication, raising the money in part to help fund an acquisition of a German rival. But bankers are debating whether the borrower should be treated as a real estate company. Pan Yue reports.

The first tier two from Spain’s Unicaja Banco was more than three times subscribed this week after it entered a strong new issue market. It appeared alongside ING, which paid a slim 5bp premium to print a deal in the same asset class.

Bajaj Finance, an Indian non-bank financial company, raised Rp84.6bn ($1.2bn) this week, closing a qualified institutional placement that defied the challenges facing the sector.

SAIC-GMAC and Beijing Hyundai Auto Finance are both planning their returns to the auto loan ABS market next week.

Oil major Royal Dutch Shell hit the euro bond market on Tuesday with a three-tranche trade that had an eight year tranche as its shortest maturity, Syndicate bankers say European Central Bank bond buying is creating more demand further out along the maturity curve.

Six Chinese real estate issuers — mostly high yield — flooded the dollar bond market on Monday with one to four year tenor deals. Investment grade rated China Vanke Co, on the other hand, tapped the longer end of the curve with a dual-tranche issuance.