UK

UK financial institutions are returning to the debt markets ahead of a fresh vote on the Brexit withdrawal agreement next week, with Lloyds Banking Group hitting the US market on Tuesday and HSBC Holdings turning to sterling after a dollar transaction earlier in the week.

Metro Bank has come under pressure from investors building short positions against it in recent days, but sources are still confident in its chances of executing a successful rights issue.

South East Water, the UK water supplier headquartered in Kent, has debuted in the US private placement (US PP) market, according to participants in the sector.

CYBG is set to meet investors this week to gauge demand for a new additional tier one. With HSBC Holdings also selling a senior bond in dollars on Monday, UK financial institutions are returning to the market for the first time in four months amid fading fears about a worst case scenario for Brexit.

Cadent Gas has sold £680m-equivalent of US private placements (US PP) across several tranches, in dollars and sterling, according to market participants, in one of the largest PP transactions from a UK utility on record. This is evidence that PP investors are not shying away from UK names, market participants claim, even amid the uncertainty of Brexit.

Theresa May’s decision this week to allow Parliament to vote on extending the Brexit deadline by three months has split the UK capital markets down the middle. Bond bankers are cheered and believe UK issuance is likely to rise — but equity deal originators see it as another three months of stagnation, with IPOs all but impossible. Jon Hay, Sam Kerr, Tyler Davies and Aidan Gregory report.

Seasoned credit investors are painfully familiar with shareholder-friendly actions. Leveraged buyouts, debt-financed share buybacks and special dividends can all deliver nasty surprises to bondholders.

The EMEA region syndicated loan market has endured its second consecutive month of multi-year volume lows, with February volumes collapsing a massive 84.5% year on year.

UK IPO sellers should consider an entirely different listing process, to cope with more volatile markets and ensure a flotation has a higher chance of success, argues Richard Brown, corporate finance partner at US law firm Baker Botts in London.

Marks & Spencer will turn to its shareholders to fund a £750m joint venture with Ocado Group in a move that would see the company metamorphose into a leading online food retailer.

PlayTech, the UK-based gambling technology company, announced its second high yield bond issue on Tuesday afternoon, seeking to raise €350m to redeem an out-of-the-money convertible bond issued in 2014. During the roadshow, it confirmed a new contract with UK gaming group GVC, which helped it print tight in a market that was already supportive.

US Solar Fund PLC, a new investment fund that will focus on investing in US solar assets, is seeking to raise $250m through a listing on the London Stock Exchange.