News content
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After a lull in UK IPO activity ahead of the general election, prospective issuers are making themselves known again. Companies seeking to float are taking advantage of the surprise outcome of last week’s vote, in which the Conservative Party won an outright victory, scotching fears of weeks of political uncertainty.
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FIG bankers have already written the week off for euro issuance after rates resumed their slide on a torrid Tuesday, but ABS investors will be offered a variety of paper in the coming days.
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The corporate bond market shuddered to life on Wednesday, after a slow start to the week as issuers avoided market volatility caused by uncertainty over Greece’s ability to pay its creditors and a sell-off in Bunds.
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Agile Property Holdings this week overcame a busy market and some residual wariness about Chinese high yield property credits to price its first deal in over a year.
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Property developer China Resources Land (CR Land) took advantage of the recent rate cut in China to tap the equity capital market for funding with a large HK$10.1bn ($1.3bn) block on May 12. Despite the encouraging result, it was not all smooth sailing for the issuer, which saw one bookrunner leave the syndicate and its bookbuilding delayed by a day.
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LATAM Airlines, the result of the 2012 merger between Brazil and Chile’s largest carriers, completed an investor roadshow on Tuesday ahead of a potential issue of enhanced equipment trust certificates (EETCs).
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Volkswagen is bringing its second Chinese auto ABS transaction, issuing an investor presentation for a deal that is more than twice the size of last year's debut. The new Rmb1.89bn ($305m) deal, called Driver China Two, is again set to feature ratings from Fitch and Moody's in a bid to attact international interest in what is still a fledgling asset class for China.
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Huawei Investment & Holding Co left nothing to chance with its debut bond, reeling in a large volume of indications of interest and pricing the trade above the level recommended by its syndicate. In the end it had nothing to fear apart from Tuesday’s wobble in US Treasuries as the bond tightened around 10bp in secondary markets.
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A government guarantee helped Trade and Development Bank of Mongolia (TDBM) make a strong return to the market with a $500m bond this week. A triple digit premium over the sovereign was not enough to entice most Asian investors to the trade, but European and US accounts lapped it up.
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Indonesian vehicle financing firm BFI Finance launched its $75m three year fundraising with a $25m greenshoe, into general syndication on May 11.
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Chinese real estate firm Yuzhou Properties had to navigate a tough market on May 12 when it came up against a much larger HK$10.1bn ($1.3bn) block trade from industry peer China Resources Land. But Yuzhou Properties was still able to get its HK$792m ($102.18m) deal done thanks to support from two anchor orders.
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Interest rate derivative trade counts year-to-date reported to swap data repositories were up compared to the same period in 2014, but this was offset by an equal and opposite percentage decline in notional, according to the most recent data from the International Swaps and Derivatives Association.