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Asset owners to attempt daring, immediate emission cuts
One of the boldest initiatives to green the financial system is getting under way this year, as the members of the Net Zero Asset Owner Alliance begin a drive to reduce the greenhouse gas emissions of entities they invest in by between 16% and 29% in the next five years.
15 Jan 2021 -
CS appoints global head of renewables
Credit Suisse has promoted Ted Michaels, its head of North America renewables in New York, to a new global position overseeing investment banking in renewables and sustainable energy technology.
15 Jan 2021 -
Trafigura causes a stir with debut Schuldschein
One of the world’s largest commodity traders, Trafigura, has launched a Schuldschein which, due to its credit profile and intended yield, is a clear outlier. While some see the borrower as too risky for this market, others see it as a sign of the Schuldschein's growing ambition.
15 Jan 2021 -
Corporate social bonds to take off, in varied formats
Market participants believe 2021 could be the year when social bonds become established as a more thriving and coherent market, after the breakthrough in volume during 2020, when issuance was swelled by the Covid-19 pandemic.
15 Jan 2021 -
Hamburg Airport fails to land Schuldschein
Hamburg Airport has pulled a Schuldschein transaction with an initial target of €100m, according to several market sources, due to a lack of interest from investors.
15 Jan 2021 -
Italy's Bund spread belies political crisis
Italia Viva has withdrawn its ministers from the support of the Italian government, sparking a political crisis in the country. However, Italy’s sovereign bonds are trading within a comfortable range versus Bunds thanks to the support of the European Central Bank.
15 Jan 2021 -
Germany after Merkel, US Treasuries under Biden
This week in Keeping Tabs: a key weekend for Germany's future, and Biden's stimulus plan.
15 Jan 2021 -
KBC steps forward with internal Libor transition
KBC Bank has hired fintech firm Finastra to help in the transition away from Libor, as the shift from the scandal-hit benchmark intensifies before it falls out of use at the end of the year.
15 Jan 2021 -
Rehabilitation of UK stocks gathers steam
Two more trades on Thursday night crowned off a busy week for block trading in London, fuelled by a rally of UK equities since the start of the year after the country secured a trade deal with the European Union at the end of 2020.
15 Jan 2021 -
Saudi lands $3bn export financing agreement with Korea
Saudi Arabia has secured an export financing agreement with Korea’s export credit agency and trade insurance corporation. The deal, which will bolster trade between the two, is the kingdom’s second ECA-backed deal.
15 Jan 2021 -
Boath joins Agora as adviser
Richard Boath, a former Barclays chair of EMEA financial institutions investment banking, has joined Agora, the capital markets start-up founded by fellow Barclays alumnus Charlie Berman.
15 Jan 2021 -
MuHyp goes long in covereds
Muenchener Hypothekenbank (MuHyp) sold the longest covered bond of the year so far this week, and bankers expect more long end deals to follow.
15 Jan 2021 -
Société Générale taps Swissies for bail-in paper
Société Générale dropped into the Swiss market for the first time since last February to print a new bail-inable note on Friday.
15 Jan 2021 -
ECA invites EU legislators to address ‘shortcomings’ in bank crisis rules
The European Court of Auditors published an assessment of the EU’s crisis management framework this week. It urged policymakers to align national insolvency procedures with bloc-wide resolution rules, as a way of making sure that banks are treated consistently when they fall into financial difficulty.
15 Jan 2021 -
Renewable energy bid propels EDP block
A €534m block in Energias de Portugal, the Portuguese utility company, flew off the shelves on Thursday night driven by investor demand for stocks exposed to renewable energy.
15 Jan 2021 -
RBC keeps it tight after super-subs cash in
Royal Bank of Canada priced its first bond issue of the year as Yankee borrowers made the most of good funding conditions in the run-up to US bank earnings season.
15 Jan 2021 -
Alchip Tech nets $196m from bigger GDS sale
Alchip Technologies, a Taiwanese semiconductor manufacturer, has raised $195.5m after increasing a placement of global depository shares (GDS).
15 Jan 2021 -
China policy and markets round-up: Xiaomi, Cnooc added to US blacklists, Beijing launches grading system for consumer finance companies, insurance asset managers
In this round-up, the US adds Chinese technology giant Xiaomi Corp and oil major Cnooc to its blacklists, and Beijing announces measures to monitor consumer finance companies and insurance asset managers.
15 Jan 2021 -
Indigo Paints readies Rp12bn listing
Sequoia Capital-backed Indigo Paints has fixed the price band for its up to Rp11.7bn ($159.9m) IPO, which is set to open next week.
15 Jan 2021 -
BOC Aviation flies with $400m bond
BOC Aviation followed Singapore Airlines into the bond market this week, bagging $400m amid a boost in sentiment around the travel industry.
15 Jan 2021 -
Everbright Water seals Rmb1bn Panda
Frequent Panda bond issuer China Everbright Water priced a three year deal on Thursday, meeting its maximum size target of Rmb1bn ($155m).
15 Jan 2021 -
VW makes swift dim sum comeback
German automaker Volkswagen sold a Rmb500m ($77m) offshore renminbi (CNH) bond on Thursday, just one-and-a-half months after its last outing in the currency.
15 Jan 2021 -
PTT Oil fixes price range for jumbo Thai IPO
PTT Oil and Retail Business has set the price guidance for its long-awaited IPO. It is aiming to raise up to Bt46.98bn ($1.57bn) from the country’s largest listing in a year.
15 Jan 2021 -
Innovent Bio, Man Wah tap ECM for fresh funds
Innovent Biologics and Man Wah Holdings raised a combined HK$7.1bn ($916.3m) in fresh equity on Thursday night.
15 Jan 2021 -
Colombia wraps LM to get ahead of uncertainty
Colombia’s public credit head told GlobalCapital that the sovereign had wanted to move quickly to get ahead of potential volatility as it printed $2.84bn of new bonds this week as part of a liability management operation. The official said that the early-year sell-off in US Treasuries had not tainted what was a strong issuance window.
15 Jan 2021 -
ONGC Videsh ditches general syndication plan
ONGC Videsh (OVL), the overseas arm of India’s state-owned Oil and Natural Gas Corp, has decided to cancel general syndication for its $700m loan after the bookrunners found enough liquidity during a senior stage.
15 Jan 2021 -
Greater China borrowers swarm dollar market
The frenetic pace of dollar bond issuance from Greater China continued on Thursday as three property companies and two government linked names courted investors.
15 Jan 2021 -
Lat Am storms back with Thursday quartet
Four heavily oversubscribed Latin American new issues fetched tight pricing on Thursday, dispelling the unease felt at the week’s start and putting the region firmly on track to fulfil the predictions of record primary volumes for a January.
14 Jan 2021 -
Colombia to stay local for green debut, plots govvie ETF, social bond
Colombia tapped international bond markets for the first time since June this week. But its domestic bond market — which is 25% owned by foreign investors — could be in for a busier year, as the sovereign is set to turn to pesos for its debut green bond in July. It is also laying the ground for a social bond and a government bond ETF.
14 Jan 2021 -
US bond pace cools, but not fazed by politics
The dollar corporate bond market has a more subdued feel this week, after its stellar start to the year, as US issuers are moving into earnings blackouts. But even as politics took centre stage as Congress moved to impeach President Donald Trump for the second time, ahead of Joe Biden’s inauguration on January 20, corporate borrowers quietly churned out deals.
14 Jan 2021 -
For corporate social bonds, SLBs are way to go
Social bonds have long been the poor cousin of green bonds. A smaller, less well organised market.
14 Jan 2021 -
High yield issuers take front stage though CEEMEA ‘underwhelming’
Junk-rated emerging market sovereigns Benin and Oman sold bonds this week, with market participants saying their new issue premiums were minimal. However, bankers think total activity across CEEMEA over the last two weeks has been “underwhelming”.
14 Jan 2021 -
Wizz Air EUR500m 1.35% Jan 24
14 Jan 2021 -
Dubai Aerospace Enterprise USD500m 2.625% March 25 USD750m 3.375% March 28
14 Jan 2021 -
Benin EUR700m 4.875% Jan 30 EUR300m 6.875% Jan 52
14 Jan 2021 -
Covered bond supply optimism is misplaced
This week’s burst of covered bonds was exceptionally well received and boosted supply hopes. But even though the funding was cheap and deal execution certain, the supply outlook remains grim.
14 Jan 2021 -
Bank balance sheets could be obscured, says Coen
The impact of coronavirus on economies has led to extraordinary help being granted to banks and their customers. But this brings the risk of problems on banks' balance sheets being hidden, according to William Coen, former secretary general of the Basel Committee on Banking Supervision.
14 Jan 2021 -
Blame the ECB for Spain's lost orders
Few deals have ever had €75bn of orders. Spain managed to lose that much, but still have €55bn remaining in the book. This is the world the ECB’s purchase programmes have built.
14 Jan 2021 -
SNCF SA EUR1.5bn 1% Jan 61
14 Jan 2021 -
Spain EUR10bn 0.1% Apr 31
14 Jan 2021 -
CEB EUR1bn 0% Jan 31
14 Jan 2021 -
World Bank EUR2bn 0.2% Jan 61
14 Jan 2021 -
SURE programme poses questions for CEE DMOs
After a record breaking year for sovereign bond issuance in central and eastern Europe, 2021 could be a different story, thanks to the European Union's vast economic support packages that could reduce the need for many CEE countries to tap international bond markets.
14 Jan 2021 -
NIB USD1.25bn 0.5% Jan 26
14 Jan 2021 -
EFSF EUR3bn 0% Jan 31, EFSF EUR2bn 0.05% Jan 52
14 Jan 2021 -
KfW USD5bn 0.625% Jan 26
14 Jan 2021 -
People news in brief
Natixis promotes DCM bankers — Powell quits IFAD job — NatWest Markets makes Peberdy, Donaldson and Manwaring's positions permanent
14 Jan 2021 -
Student ABS lenders hit by steep declines in college enrollment
Navient is issuing the first student loan securitization of 2021 as the sector continues to battle political headlines and a decline in student post-secondary enrollment.
14 Jan 2021 -
SSAs testing waters in niche currencies
SSA borrowers kept up a torrid pace of issuance in non-core currencies this week.
14 Jan 2021 -
World Bank leads charge to euro long end
Issuers flocked to the long end of the euro market this week, with two borrowers finding success with rare 40 year deals.
14 Jan 2021 -
¿El Clásico? Spain's big 10yr shocks after losing €75bn of orders
A book of more than €55bn for a €10bn bond priced with a new issue premium of 1bp would be a gratifying outcome for any sovereign issuer. But Wednesday's syndication for Spain instead attracted robust criticism over price moves during bookbuilding which derailed what was on course to be the biggest order book in bond market history.
14 Jan 2021 -
January snooze: bank senior market fails to excite investors
Tight valuations in euros are making it difficult for banks to impress investors with new senior trades. Issuers may have to pay up or switch focus to other asset classes to make the most of the January market.
14 Jan 2021 -
IG corporates put ‘ridiculous’ pressure on market with zero premium demand
Europe’s high grade corporate issuers have been heaping pressure on syndicate desks to print new debt at or inside fair value, but investors are fighting back and some deals have been punished as a result, write Mike Turner and Jon Hay.
14 Jan 2021 -
Freier joins Barclays for ESG research
Barclays has hired Marie Freier as global head of ESG research.
14 Jan 2021 -
TIM and Autostrade slip in before political fears hit
TIM, formerly Telecom Italia, got almost €4bn of demand for its debut sustainability bond on Monday, a €1bn eight year. The company put its sustainable financing framework in place last year, an umbrella document allowing it to raise green, social or sustainable finance in bond or loan format.
14 Jan 2021 -
UK MD at Goldman joins digital infra investment firm
Digital Colony, which invests in mobile and internet infrastructure, has hired Latifa Tefridj-Gaillard as head of Europe capital formation.
14 Jan 2021 -
Issuers rush into booming dollar market
The dollar market has moved from strength to strength this week, with six SSA borrowers benefitting from the superb conditions to slash spreads and offer minimal new issue concessions.
14 Jan 2021 -
Deutsche Bahn steams into Swissies
After a near two year absence, Deutsche Bahn pulled into the Swiss franc market to issue 15 year debt with no new issue premium this week, landing inside its own euro curve.
14 Jan 2021 -
Fun to stop in sterling market
The sterling market began the year in excellent health, with a variety of issuers pulling off successful and substantial deals in the currency. But the supply has moved the basis swap, and the market will likely be forced to pause for breath.
14 Jan 2021 -
LBBW EUR750m 0.375% Feb 31 bail-in senior social
14 Jan 2021 -
UniCredit EUR1bn 0.325% Jan 26 / EUR1bn 0.85% Jan 2031
14 Jan 2021 -
Credit Suisse Group EUR1.5bn 0.625% Jan 33 / €1.5bn FRN Jan 26
14 Jan 2021 -
Banco BPM EUR400m 6.5% PNC5 AT1
14 Jan 2021 -
First dual-compliant post-Brexit CLO closes
The first CLO to comply with both diverging regimes in the UK and the EU has closed, marking a post-Brexit point of no return for the securitization market.
14 Jan 2021 -
Politics and Covid fail to dent UK fee pool optimism
Bankers are betting on a strong year for the UK — Europe’s biggest fee pool — but the overlapping concerns of Brexit, Covid-19 and regulation make for an uncertain outlook, writes David Rothnie.
14 Jan 2021 -
Spain loses over €75bn of orders after ‘shocking’ price move
In a dramatic and unprecedented turn of events on Wednesday, Spain went from being on track to attract the biggest ever order book for a bond issue to losing more than half of its orders, as it slashed the spread of its new 10 year syndicated bond, leaving either a negative or very skinny new issue premium.
14 Jan 2021 -
MEPs vote through harmonised NPL secondary market
The European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted through regulation to harmonise the secondary market for NPLs across Europe, pushing through a key stage of its Action Plan aimed at rebuilding the European economy post-pandemic.
14 Jan 2021 -
High grade corporate investors start to get picky but deals still sail through FV
Fundamentals are becoming more important again in Europe’s corporate bond primary market, but the power of the European Central Bank technical trade in the secondary market is quickly washing away new issue concessions.
14 Jan 2021 -
Europe’s digital IPO revolution gains steam
European investors have become a rich source of equity capital for the continent’s consumer facing, fast growing tech firms over the last few years, providing them with an alternative to listing in the US. Now, these fruits are ripening and Europe’s 2021 IPO calendar is set to provide a bumper harvest, writes Sam Kerr.
14 Jan 2021 -
Record year for CLO refis as managers look to revamp Covid deals
This year looks likely to set records for CLO resets and refinancings, as managers call deals priced since the coronavirus pandemic began with wide spreads and expensive capital structures. Tightening spreads have also brought some 2018 and 2019 deals into refi or repricing territory, setting up a record year with as much as $78bn in refinancing and $115bn in resets, according to estimates from Deutsche Bank. Paola Aurisicchio reports.
14 Jan 2021 -
EIB doubles up in two currencies
The European Investment Bank pulled off two trades on Thursday, hitting the Canadian dollar market for a Climate Awareness Bond and raising $1bn with a five year linked to the Secured Overnight Financing Rate.
14 Jan 2021 -
NorteGas finds spark after market turns cool
NorteGas, the Spanish gas distribution company, won strong demand from investors on Thursday, despite syndicate bankers worrying that the market was softening.
14 Jan 2021 -
KfW sells South African rand green bond
KfW printed its first green bond in South African rand this week, reflecting the growth in demand for sustainable products outside of core currencies, according to a funding official at the agency.
14 Jan 2021 -
Banks unveil bond leg of Verisure’s €1.6bn divi package
Banks launched the bond leg of a combined €5bn refinancing for alarm company Verisure, which will raise cash for a €1.6bn dividend to shareholder Hellman & Friedman. This payment follows the transfer of the company between two H&F funds at a €14bn valuation.
14 Jan 2021 -
Mayr-Melnhof Karton launches debut Schuldschein deal
Austrian paper and packaging firm Mayr-Melnhof Karton, called MM Karton for short, has launched a Schuldscheine, with an initial target of €300m.
14 Jan 2021 -
Europcar CDS worthless as auction misfires
Some €700m of CDS contracts referencing Europcar’s debt have been rendered worthless thanks to a technical squeeze in the CDS auction on Wednesday, in a blow for investors who thought they’d hedged their exposure to the troubled car rental firm. The controversial result threatens to reignite debates about whether the CDS market is fit for purpose, ahead of an expected wave of restructurings in the year to come.
14 Jan 2021 -
MuHyp mandates to push for longest covered bond so far
Muenchener Hypothekenbank (MuHyp) has mandated joint leads for a 20 year Pfandbrief, the longest covered bond so far this year.
14 Jan 2021 -
Yapi Kredi to squeeze pricing on tier two dollar deal
Turkish bank Yapi Kredi launched a tier two dollar bond on Thursday, with demand strong enough for bookrunners to attempt to squeeze pricing. But this is an unorthodox start to the year for Turkish bonds with the traditional curtain raiser from the sovereign nowhere to be seen.
14 Jan 2021 -
Passive investors join green debt caravan
Passive investors are expected to become a bigger force in environmental, social and governance debt investing this year, as index providers and asset managers expand the range of products that apply ESG criteria to bonds.
14 Jan 2021 -
DNB issues most subscribed covered bond
DNB Boligkreditt issued a covered bond on Thursday that became its most oversubscribed covered bond ever, equalling the bank’s biggest ever order book. The deal, secured on green mortgages, was priced through its vanilla curve, clearly demonstrating the demand for covered bonds.
14 Jan 2021 -
Shop Apotheke returns to CB market with "remarkable" deal
Shop Apotheke, the European online pharmacy, is seeking to tap the convertible bond market for financing once again following a large surge in revenues during the pandemic.
14 Jan 2021 -
Oberbank readies sub-benchmark SNP
Oberbank is preparing to launch a sub-benchmark non-preferred senior deal into a quiet FIG market that has not seen a senior deal since Tuesday.
14 Jan 2021 -
Hut attracts huge demand in first block since IPO
Investors flocked to the first block trade in The Hut Group (THG), the UK e-commerce company that was listed on the London Stock Exchange in September, in an overnight trade on Wednesday evening.
14 Jan 2021 -
Political crisis hits Italian bank bonds as 'jitters' set in
The prospect of Italy's government collapsing began to take its toll on bank debt markets on Thursday morning, with some new issues underperforming in light of the crisis.
14 Jan 2021 -
Energean takes $700m loan to get Karish gas pumping
Energean, the London-listed oil and gas company, has signed a $700m loan to develop a gas field off the shore of Israel, as the company enters the final stretch in having the field up and running.
14 Jan 2021 -
Schroder UK amends bank line with other A&Es expected soon
Schroder UK Public Private Trust, an investment trust, has extended its sterling bank line, as loans bankers said they are seeing a steady stream of amend and extend requests from borrowers.
14 Jan 2021 -
People and markets news in brief: January 14, 2021
SGX hires ING banker for sustainability — Granger returns to UBS — Chang to exit Mizuho – KKR closes infra fund
14 Jan 2021 -
Singapore’s OCBC names Wong as CEO
Oversea-Chinese Banking Corp has appointed Helen Wong as its next chief executive, propelling the former HSBC banker to the top job just a year after she joined the Singaporean lender.
14 Jan 2021 -
Bankers brave multiple risks (for a drink)
The response of people to the coronavirus has been nothing short of inspiring. Not least bankers' creative solutions to carry on drinking. Taipan considers the best —and worst — options.
14 Jan 2021 -
Spacs jump-start in Asia after US boom sparks overseas interest
Thiel Capital, the investment firm of billionaire venture capitalist Peter Thiel, this week launched its second southeast Asia special purpose acquisition company (Spac) in less than four months. The deal marks a coming trend in Asia-focused ‘blank cheque companies’, say bankers. Jonathan Breen reports.
14 Jan 2021 -
Nio wins tight pricing for $1.3bn dual-tranche CB
Electric vehicle manufacturer Nio raised $1.3bn from a dual-tranche convertible bond this week, while trimming its existing debt with a concurrent buyback.
14 Jan 2021 -
Loans bankers nervous amid small pipelines, lack of visibility
Loans bankers in Asia are battening down the hatches, faced with a small deal pipeline and little visibility on better market conditions. While some respite may come their way after the Chinese New Year holiday, bankers are uncertain about the way forward for the syndication business. Pan Yue reports.
14 Jan 2021 -
Tower Bersama uses upgrade to reel in buyers
Indonesia's Tower Bersama Infrastructure used its recent rating upgrade to entice investors to its $300m bond on Wednesday. Price discovery was not easy but the telecommunication tower provider’s improving business profile appealed to the market.
14 Jan 2021 -
Singapore Airlines swoops into dollar market
Singapore Airlines made its debut in the dollar bond market on Wednesday, raising funds for new aircraft purchase as the travel industry prepares for a rebound in the near future.
14 Jan 2021 -
SK Hynix dollar bonds spark investor rush
SK Hynix was overwhelmed with investor demand for its triple-tranche dollar deal on Wednesday. It raised $2.5bn, but non-stop demand drove the bonds nearly 20bp tighter in the secondary market on Thursday.
14 Jan 2021 -
Crédit Agricole goes down under in search of tier two
Crédit Agricole tapped the Australian dollar market for tier two debt this week, following up last Tuesday's public US dollar benchmark with a privately placed trade in a similar tenor.
14 Jan 2021 -
China ABS off to strong start, BMW scores
BMW Automotive Finance (China) Co has sold its first auto loan ABS of 2021, locking in longer-dated financing with a 14 month revolver. The deal added to a strong start for the onshore securitization market in the New Year as bond yields fell from their highs at the end of 2020, writes Addison Gong.
14 Jan 2021 -
Mexico lines up euro LM
Just over a week after it reopened EM bond markets with a dollar deal, Mexico is turning to euros for a dual tranche new issue as part of a liability management exercise.
14 Jan 2021 -
Dominican Republic prices inside guidance to keep Lat Am on track
The Dominican Republic raised $2.5bn across two tranches amid an improving tone in EM bond markets on Wednesday, providing an encouraging sign to the several Latin American credits expected to price before the week is over.
14 Jan 2021 -
First Resources seeks $150m dual-currency loan
Singapore-listed palm oil company First Resources is tapping the loan market for a $150m-equivalent dual-currency deal.
14 Jan 2021
