Morgan Stanley

One of the biggest ECM failures of recent times is back on the agenda. Less than three months after Chinese pork producer WH Group had to scrap its downsized IPO amid widespread criticism of a bloated syndicate and the issuer's reluctance to accept investor views on valuation, two banks are looking to push through a quicker, cheaper deal, write Rashmi Kumar and Rev Hui.

Jinchuan Group opened books for a three year offshore renminbi bond with initial guidance at 5.05% area on Thursday morning. The deal marks the first time a regional state owned enterprise (SOE) has tapped the offshore RMB market via China’s National Development and Reform Commission (NDRC) quota system.

Banco Popular Español postponed the sale of its second additional tier one (AT1) deal after launching the deal into a sell-off in the AT1 market that became progressively worse over the course of the morning. The Spanish bank was looking to sell the transaction at a level market participants said was surprisingly aggressive.

Whipping boy status is an entirely new concept for Brazil on the football pitch after the host’s shock 7-1 defeat to Germany in the Fifa World Cup. But in the capital markets the nation’s issuers have had been used to harsh treatment from investors as economic growth stumbles for some time. But the latter could be about to change.

Bankers hailed the timing of Peruvian development bank Corporación Financiera de Desarrollo (Cofide) after the government owned lender snatched at the chance to print blowout five year senior and 15 year Tier two subordinated bonds on Tuesday afternoon.

Following its successful $2.1bn flotation last week — the biggest European intial public offering this year — NN Group is set to sell a subordinated perpetual non-call 12 year debt that will rank pari passu with the 4.625% €1bn 30 year non-call 10 transaction that the insurance company sold in April.

Investors expect Peru’s government owned development bank Corporación Financiera de Desarrolly (Cofide) to attract heavy demand for a dual-tranche bond issue expected to be priced on Tuesday. Moody’s two notch upgrade of the Peruvian sovereign will only help drive interest, added market participants.

Galp Energia, the Portuguese oil and gas company, issued on Monday its first bond since November, and was able to tighten the pricing to a slim new issue premium despite cool markets.

In a direct illustration of how far the additional tier one market, and yields on both subordinated debt and that of the European periphery's financial institutions, has come, Banco Popular Español is looking to issue an additional tier one with a coupon likely to be five points lower than where it priced an AT1 deal less than a year ago.

Dutch insurer NN Group is likely to hit the subordinated debt market later this week with a euro deal, its second of the year, mandating banks on Monday for an investor call. The investor update follows the issuer’s listing on the Amsterdam stock exchange last week.

Jinchuan Group is meeting investors for its debut international offering. The deal will mark the first offshore renminbi bond issued by a regional state-owned enterprise (SOEs) that has gained approval from China’s National Development and Reform Commission (NDRC).

Issuers from Brazil dominate a hefty pipeline of Latin American issuers likely to sell bonds next week as region’s largest economy claws back new issue market share from Mexico.