Year:
Month:
-
Leveraged loan worries dominate US bank earnings
End of year earnings calls at the US banks all featured anxieties about the exposure of the firms to a leveraged finance market that was looking increasingly stretched through year end, with some bridges said to be hung and discounts offered on risk positions.
-
Climate activists boo Larry Fink’s CEO letter
Larry Fink, chief executive of BlackRock, became one of the most namechecked people in the responsible investing movement in 2018 when he affirmed that “Companies must benefit all of their stakeholders, including shareholders, employees, customers and the communities in which they operate.”
-
UK M&A to run into national security wall
UK companies hoping to be involved in mergers and acquisitions (M&As) are heading towards a sea of red tape, with the government due to review around 100 times more transactions a year than before on national security grounds. That could prompt a spree of deals before the proposed measures become law, writes Mike Turner.
-
Schuldscheine harder to read, distribution skills more crucial
Some Schuldschein arrangers are expecting that a syndicate’s distribution skills may become more important this year, as conditions across capital markets become difficult.
-
UK agents head to Florida PP conference with Brexit in mind
US private placement (US PP) participants the world over will descend on Florida next week for four days of intensive meetings at a major market conference. For UK-based PP agents attending, soothing concerns over and gleaning investors’ views on Brexit is the top priority.
-
When a bad deal leads to no deal, no one wins
Maintaining confidence in the system relies on trust that leaders — those selected for their competence and character to set the course for the rest of us — are well informed, able to communicate with others at their level and take decisions that serve the interests of those they lead.
-
RDI finds home for sterling loan
London-listed RDI REIT has refinanced a sterling club loan, pushing out its average maturities amid a flurry of refi activity in the European loan market.
-
EM loans suffer dry January
While hopes are high for emerging market syndicated loan activity in EMEA in 2019, the year has started slowly, leaving many banks with half-empty pipelines.
-
BNPP hires in the Nordics
BNP Paribas has hired numerous bankers to bolster its corporate and institutional banking presence in the Nordic countries, including senior bankers in equity and derivatives roles.
-
Mauritius Commercial Bank offers lenders brief refi respite
Mauritius Commercial Bank is looking for a syndicated loan, in a rare deal to pass across London desks so far this month that is not a refinancing exercise.
-
Network Homes opts for sterling PPs with Canadian and US investors
Network Homes, a London housing association, has sold £175m of private placement notes to a group of six Canadian and US investors, as the asset class grows more familiar to overseas buyers.
-
Bank lenders see potential in CEE region
At the Central and Eastern European Forum hosted by Euromoney in Vienna, central bank governors, chief executives and other market leaders gathered to discuss challenges and strengths for the region's markets. Despite monetary difficulties and geopolitical tensions within the region, bankers were optimistic, particularly for the syndicated loan market.
-
End Brexit paralysis, plead levfin investors
This week’s parliamentary vote in the UK on a withdrawal agreement for its exit from the European Union has emptied the deal pipeline in the euro leveraged finance markets in early January. But after the plan was rejected on Tuesday, any clarity about the near future looks unlikely, and some debt buyers say borrowers have little reason to wait for longer.
-
Optimism abounds among CEE borrowers
With many of Europe’s emerging market bankers and investors this week in Vienna for Euromoney’s annual Central and Eastern Europe Conference, much focus has been on planning for the year ahead in this region. The mood at that conference is one of quiet optimism for the year ahead.
-
Sun Hung Kai returns for annual loan foray
Hong Kong-listed Sun Hung Kai Properties is talking to banks for its annual return to the loan market. The company has raised its funding cost for the first time in five years.
-
Hyosung Vina revamps loan, cuts size to $750m
Hyosung Vina Chemicals is holding bank presentations and a site visit at the end of January to woo lenders with a $750m syndicated financing that has been relaunched with a smaller size, higher margins and a different bookrunning team.
-
Amendageddon just beginning of loan market's Libor woes
Libor is likely on the way out for sterling loans in 2021, and it is almost impossible to overestimate the deluge of facility amendments headed towards loans desks. But there is worse to come.
-
London US PP agents approach Florida conference with Brexit on their minds
US private placement (US PP) participants the world over descend on Florida next week for four days of intensive meetings. For the UK PP agents, soothing concerns and gleaning insights from investors around Brexit is top priority.
-
National security in crosshairs for UK M&A
UK mergers and acquisitions are set for a tricky time over the next few years, as the government is expected to begin implementing a more stringent national security regime this year.
-
Chinese activity in CEE set to grow
China’s activity in central and eastern European (CEE) lending and investment is set to swell further in 2019, as its banks and other financial institutions extend their reach.
-
PE sponsors eager to bring new wave of loose deal documentation
Private equity sponsors have bankers and lawyers working on deals that will seek more flexibility and borrower-friendly covenants this year. But investors are also likely to offer tougher scrutiny this year.
-
ASM Pacific seeks debut loan to refinance CB
ASM Pacific Technology is tapping the offshore loan market for the first time, raising a HK$2.25bn ($287m) five year borrowing to refinance a convertible bond maturing in March.
-
Schuldschein market becomes harder to read
Some Schuldschein arrangers are expecting that a syndicate’s distribution skills may become more important this year, as conditions across capital markets become more chaotic.
-
L’Occitane makes biggest buy to date
Luxury cosmetics company L’Occitane has agreed to buy UK skincare brand Elemis for $900m, in what will be its biggest acquisition since it listed at the turn of the decade.
-
Japanese buyers to widen bids for US triple-A CLOs
Large Japanese buyers of US triple-A CLO debt are set to move their bids for the bonds wider as managers line up the first US deals of 2019, said sources this week.
-
Shandong Qingyuan closes $430m loan with five
Shandong Qingyuan Group has closed a $430m one year self-arranged club loan with five participants.
-
BRI launches $700m borrowing at tight levels
Bank Rakyat Indonesia (BRI) has launched a $700m multi-tranche loan into general syndication, raising some debate among bankers about the tight pricing on offer.
-
Sritex eyes $350m loan for bond buy-back
Indonesian textile company Sri Rejeki Isman (Sritex) has returned to the syndications market for a $350m loan that will go partly towards a bond buy-back.
-
US will try to stop MDBs securitizing
Hopes of a thriving new market for securitizations by multilateral development banks hit a hole in the road in December, when the US Treasury said it disapproved of them and would seek to stop them.
-
Bashing World Bank damages US interests
That US president Donald Trump’s administration should pick a fight with the World Bank — and the bevy of other multilateral development banks the US owns shares in — is no surprise.
-
Levfin investors band together against borrower domination
Investors in the leveraged finance market established a new trade body this week, giving them the chance to push back against aggressive covenant terms, and offering an alternative forum to the Association for Financial Markets in Europe, increasingly dominated by the sell side following a mass walk-out by the buy side last year.
-
World Bank risks US wrath with China loans
Research by a US thinktank shows that the World Bank will have to carry out major reform of its lending to China to meet US-driven goals to focus loans on projects with benefits outside wealthy provinces. By Phil Thornton
-
Lenders face post-Libor administrative nightmare
Loans desks are facing an unprecedented administrative ordeal over the next two years, as there will likely be no way to swap sterling loans that reference Libor to a new benchmark rate on a wholesale basis.
-
ESI expands lending group
France’s ESI Group has signed a €40m syndicated loan, with the virtual prototyping company adding to its banking group through the deal.
-
Fitch joins ESG caravan with relevance scores
Fitch Ratings has remedied its long lack of a visible response to the rise of environmental, social and governance investing by launching a set of ESG relevance scores.
-
Chexim guarantee helps Afreximbank borrow as Chinese inflows rise
African Export-Import Bank has closed a $500m five year term loan, it announced on Wednesday, partly guaranteed by the Export-Import Bank of China. The presence of a mainly Asian syndicate has sparked discussion about the continually increasing Chinese capital flowing into Africa.
-
Barry Callebaut opts for Schuldscheine over bonds
Barry Callebaut, the chocolate company headquartered in Switzerland, has launched a triple tranche Schuldschein a month after a roadshow for a sustainable bond failed to produce a public market result.
-
Cobepa mandates two for Scalian as underwriters start deal hunt
Belgian private equity firm Cobepa is funding its acquisition of Scalian, the engineering consultancy, with two French investment banks.
-
Anta launches €2.2bn loan with HSBC joining as MLAB
Anta Sports Products has launched its €2.2bn loan to back the acquisition of Amer Sports Oyj into general syndication, with HSBC joining the bookrunning group.
-
UK portion of US PP market swells to over a fifth
The proportion of overall issuance in US private placements sold by UK borrowers may have risen to over 20% for the first time in years.
-
EMEA swarmed as Brexit looms
The high grade loan market flew out of the starting blocks this week, as syndicate desks have encouraged clients to get any fundraising they need before the UK leaves the European Union on March 29.
-
Elfa triggers chain reaction across levfin trade bodies
Leveraged finance industry bodies are a changin’. The two main trade organisations led by the sell side are set to open talks with a new, more independent investor lobby taking its first steps on Wednesday.
-
China Water Affairs closes $300m loan with 17
China Water Affairs has closed a $300m loan launched last November, with 16 participants joining the deal in syndication.
-
Haitong seeks HK$13.8bn refi via 16 banks
Haitong International Securities has returned to the loan market for a HK$13.8bn ($1.7bn) refinancing led by a 16-strong group of mandated lead arrangers and bookrunners.
-
Overheating lev loans may breed HY issuance, says HY sell side
While leveraged market participants expect loans to maintain their lead over fixed income in volume terms, some underwriters and lawyers believe market fatigue is beginning to make borrowers turn their attention to high yield bonds again.
-
Austria’s Porr opens Schuldschein market with two deals in one
Austrian construction firm Porr has become the first Schuldschein borrower in 2019, launching a pair of deals totalling €150m that are offered in three maturities. The deal was launched on Monday, and some of it is for green projects.
-
QNB pitching for general syndicate in euro test
Bankers have confirmed that Qatar National Bank has entered the second phase of syndication to refinance an existing €2.25bn facility due for maturity in May 2019.
-
More funding for MTG as Nova sale collapses
Sweden’s Modern Times Group has signed more bank funding related to spinning off Nordic Entertainment, as the media company’s talks with PPF to sell its Bulgarian business were scuppered after falling foul of regulators.
-
Avolon flies in for $300m borrowing
Aircraft leasing company Avolon has returned to the offshore syndications market for a $300m loan.
-
Pick-up in China M&A loans is just a pipe dream
A handful of outbound M&A deals announced in the second half of 2018 have given leveraged and acquisition finance bankers hopes for a rebound in action this year. But with many roadblocks ahead, being "cautiously optimistic" will be critical.
-
Jim Yong Kim quits World Bank as Trump influence fears grow
The unexpected decision by Jim Yong Kim to stand down as World Bank president three years ahead of schedule will raise worries in the development community that Donald Trump will use the opportunity to select a political appointee. By Phil Thornton
-
BNPP hires senior Schuldschein originator at BayernLB
BNP Paribas has hired a senior originator at BayernLB to cover the Schuldschein market.
-
US PP agents braced for price move as vol bites
US private placement agents are preparing bids for transactions with higher yield targets than much of last year. But as borrowers are forced to offer chunky new issue concessions to lure public bond investors into primary markets, US PP agents are confident that pricing in their market is still enticing for issuers.
-
Lilly to pay $8bn for Loxo Oncology as cancer M&A soars
Eli Lilly, the US pharmaceuticals company, has agreed to buy Loxo Oncology for around $8bn, as big ticket consolidation in the drug sector continues apace.
-
Nigeria loan market prospects divide opinion
Pessimism hangs over Nigeria's chances of entering the loan market in 2019 as the country battles an economic slowdown, a commodity slump and political uncertainty. But not all loans bankers are so glum about the chances of Africa's most populous nation and biggest oil producer raising debt from international financiers.
-
Danske hires Thirasilpa for leveraged finance
Danske Bank has hired DNB Markets’ JoJo Thirasilpa as a managing director in leveraged finance.
-
StanChart nabs two loan syndicate bankers
Standard Chartered has hired two loans syndicate bankers, in Hong Kong and Shanghai respectively, according to a source close to the move.
-
BNP loan syndicate head relocates to Sydney
Wayne Green, head of loan syndicate and sales for Asia Pacific at BNP Paribas, has relocated to Sydney for another position, according to sources close to the situation.
-
BOC HK loses senior loans banker
A senior loans syndicate banker at Bank of China (Hong Kong) has left the firm, according to a source close to the situation.
-
Vinci in talks with banks for £2.1bn Gatwick M&A debt
Banks are courting France’s Vinci to grab lending spots on the company’s £2.9bn acquisition of a controlling stake in UK airport Gatwick. A bond issue from Vinci is possible in the first half of this year.
-
Loan market expects continued recovery of Turkish borrowers
Turkey is on track to continue its recovery in financial markets, as inflation declines and the lira rebounds from its crisis of August, according to syndicated loan bankers.
-
EDF seals green RMB loan from CréditAg China
Electricité de France, the Paris-based electricity company, raised a Rmb122m ($17.8m) one year bilateral loan through Crédit Agricole CIB (China) on December 20.
-
VPBank Finance returns for short tenor loan
VPBank Finance has made a quick comeback to the international syndications market for a $130m borrowing with a short one year tenor.
-
Bank of the Lao PDR seeks separate $100m loan
The central bank of Laos is seeking a $100m loan through Taipei Fubon Bank, while simultaneously syndicating another deal of the same size via Cathay United Bank.
-
China Everbright Greentech seeks HK$800m five year
China Everbright Greentech, an environmental protection service provider under China Everbright International, is testing lenders’ appetite for a HK$800m ($102m) syndicated loan.
-
Corporates could get double whammy by investing cash in renewable energy assets
Companies usually park their reserves of cash in staid, low-yielding liquid assets. But asset managers are trying to persuade them to invest some of that money differently, in a way that could help them live up to their environmental commitments.
-
US PP market gearing for Brexit-inspired flow
US private placement market participants are expecting a busier time than usual as volatility due to the UK's departure from the European Union pushes borrowers away from the sterling bond market.
-
AFC raises $300m facility
Africa Finance Corp has raised a $300m loan facility from a consortium of international lenders.
-
Two lenders win big in $74bn BMS Celgene merger
The US’s Bristol-Myers Squibb (BMS) has picked two banks to provide the debt portion of its $74bn acquisition of biotech firm Celgene, in one of the biggest pharmaceuticals mergers in recent years.
-
Ashtead continues loan market’s A&E streak
The UK’s Ashtead has ramped up the size of its bank facility to $4.1bn, as amend and extend operations continue unabated after the Christmas break.
-
Loan pricing to swing higher as markets change
Is pricing in the Asian loan syndications market finally bottoming out? All the signs for an uptick in margins this year are there, writes Pan Yue.
-
Qatari banks finish 2018 on a high
Qatar’s Doha Bank has closed a $525m unsecured facility as lenders demonstrated healthy appetite for the small and politically isolated Gulf country.
-
Schuldschein readying ships for year ahead
Schuldschein players are not expecting much deal flow this week but most are optimistic that the market is in a better shape than others. A busier first quarter is expected as a consequence.
-
Loans primed but levfin needs strong start
The 2019 loans market is raring to go, but lending officials say that the leveraged loan market needs some strong deals right away to ease the hangover lingering from last year.
-
Sovcomflot raises $264m but uncertainty 'killing the market'
Russian shipping firm Sovcomflot has closed a $264m club facility with five international lenders, although the outlook for Russian companies in the syndicated loan market remains questionable going into the new year.
-
Laos central bank keeps pricing flat on loan return
Bank of the Lao PDR is taking commitments for a $100m four year borrowing in general syndication, offering lenders terms that are identical to its last offshore facility from 2015.
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Bank Profiles
Latest news by market and league table performance
Global Syndicated Loan Volume
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | Bank of America Merrill Lynch | 10,609.64 | 9 | 44.00% |
| 2 | JPMorgan | 1,066.00 | 5 | 4.42% |
| 3 | Mizuho | 972.79 | 2 | 4.03% |
| 4 | Citi | 741.50 | 5 | 3.07% |
| 5 | Deutsche Bank | 709.50 | 4 | 2.94% |
Bookrunners of Middle East and Africa Loans
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | HSBC | 7,434.76 | 18 | 7.11% |
| 2 | First Abu Dhabi Bank | 7,164.47 | 27 | 6.85% |
| 3 | Standard Chartered Bank | 7,114.19 | 32 | 6.80% |
| 4 | Sumitomo Mitsui Financial Group | 6,785.55 | 14 | 6.49% |
| 5 | Citi | 6,751.47 | 22 | 6.45% |
Bookrunners of European Leveraged Loans
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | Swedbank | 160.81 | 1 | 11.11% |
| 1 | Sumitomo Mitsui Financial Group | 160.81 | 1 | 11.11% |
| 1 | SEB | 160.81 | 1 | 11.11% |
| 1 | Nordea | 160.81 | 1 | 11.11% |
| 1 | Natixis | 160.81 | 1 | 11.11% |
Bookrunners of European Marketed Syndicated Loans
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | Bank of America Merrill Lynch | 9,498.80 | 2 | 86.78% |
| 2 | Swedbank | 160.81 | 1 | 1.47% |
| 2 | Sumitomo Mitsui Financial Group | 160.81 | 1 | 1.47% |
| 2 | SEB | 160.81 | 1 | 1.47% |
| 2 | Nordea | 160.81 | 1 | 1.47% |
Syndicated Loan Revenue - EMEA
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | HSBC | 35.45 | 69 | 6.71% |
| 2 | BNP Paribas | 31.67 | 78 | 5.99% |
| 3 | ING | 31.21 | 74 | 5.90% |
| 4 | Citi | 22.60 | 36 | 4.27% |
| 5 | Deutsche Bank | 21.89 | 32 | 4.14% |
