Morgan Stanley

JP Morgan and Morgan Stanley’s EM rivals may be gleefully awaiting punishment of those banks through future Russian mandates after this week they helped Ukraine raise $1bn via a US-AID backed bond, but they should not bet the ranch on a Russian freeze out.

The most politicised new issue for many years – Ukraine’s USAID-backed $1bn five year bond – could be followed by several more as the sovereign battles both the threat of civil war and a raft of redemptions this year and next. But lead managers run the risk of Russia shunning them on its rival future mandates, bankers have warned.

Ukraine has printed its $1bn five year bond back by US-AID, with investors hoping that the US government will see this as a more regular financing tool for Ukraine as the country faces the threat of civil war in the eas of the country and a high level of redemptions over 2014-2015.

Maoye International Holdings priced its debut dollar bond on Monday, its third attempt to sell an international deal. With the right timing and careful guidance by dealers, the bond crossed the line with orders of $1.1bn for the $300m offering.

China’s Tianhe Chemicals Group started talking to investors on May 12 about a Hong Kong IPO that could be worth around $1bn.

Rival bankers are suggesting that the mandate for the Ukraine US-AID backed deal may be a poisoned chalice for JP Morgan and Morgan Stanley's EM bond businesses if a resurgence of Russian issuance comes sooner than is widely expected.

South Korean oil refiner GS Caltex will be meeting with investors over the next two weeks after for a proposed dollar issue.

Bond investors are expecting Mexican construction company Empresas ICA to receive a strong response for a planned new bond after the company posted improved first quarter results.

Five FIG issuers took to the subordinated markets to take advantage of months of undersupply this week, with the results highlighting not just the feverish grab for yield but also just how far banks have come since the crisis of 2008 in building their capital levels.

Yankee banks returned to the dollar fray with opportunistic trades from Barclays and Westpac, with the UK bank mirroring a recent trend in euro deals by printing a long dated bond.

Ukraine is pricing a $1bn US government guaranteed bond via JP Morgan and Morgan Stanley, according to two DCM officials away from the deal.

Matalan Finance, the parent company of British clothing retailer Matalan, today announced its intention to launch £492m of senior secured notes.