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Lockdowns and largesse to spark IG supply as pricing poses puzzle

High Grade

Lockdowns and largesse to spark IG supply as pricing poses puzzle

Fresh national lockdowns across Europe and further ECB stimulus are tipped to lead to a surge in high grade corporate bond issuance in early November. But the central bank’s bond buying has turned finding fair value into a convoluted process and this will likely only become more difficult after it hinted on Thursday at doing even more in December.

  • Lockdowns and largesse to spark IG supply as pricing poses puzzle

    Lockdowns and largesse to spark IG supply as pricing poses puzzle

    Fresh national lockdowns across Europe and further ECB stimulus are tipped to lead to a surge in high grade corporate bond issuance in early November. But the central bank’s bond buying has turned finding fair value into a convoluted process and this will likely only become more difficult after it hinted on Thursday at doing even more in December.

  • Daa and Akelius leap on green day to raise debt in volatile market

    Daa and Akelius leap on green day to raise debt in volatile market

    Daa, the Irish airport operator, and Akelius, the UK residential property company, snatched the chance to raise funds on Thursday, the most stable day for the bond market this week. But demand has been muted as jitters about lockdowns and next week’s US presidential election kept some investors on the sidelines.

  • Capital markets pray for decisive US election victory

    Capital markets pray for decisive US election victory

    The US presidential election is next week but, unlike the rest of the world, capital markets professionals are not rooting for Joe Biden or the incumbent, Donald Trump, to win. Instead, they just want a clear result that will spur issuance for the rest of the year. Sam Kerr, Mike Turner, Lewis McLellan, Mariam Meskin, Frank Jackman and Aidan Gregory report.

  • Transition label could be applied to equity

    Transition label could be applied to equity

    A Climate Bonds Initiative and Credit Suisse document on ‘financing credible transitions’ may help to create a market standard for judging when a company is moving to a net-zero carbon future. One of its creators said that, in theory, firms could raise dedicated transition equity as well as debt.

  • Daa and Akelius pounce on calmer markets to raise debt

    Daa and Akelius pounce on calmer markets to raise debt

    Daa, the Irish airport operator, and UK residential property company Akelius snatched the chance to raise funds on the most stable day this week. But demand has been muted as jitters about lockdowns and next week’s US presidential election kept some investors on the sides.

  • Zhongyuan Yuzi pulls deal as Chinese LGFVs face tricky funding environment

    Zhongyuan Yuzi pulls deal as Chinese LGFVs face tricky funding environment

    Two Chinese local government financing vehicles (LGFVs) hit speed bumps in the dollar bond market this week amid rising volatility, as investors pushed back on the issuers’ attempts to get away with aggressive pricing. While one of the borrowers sealed its deal despite tepid demand, another was forced to scrap its transaction. Morgan Davis reports.

  • Lockdowns to spur busy November in IG corporate primary

    Lockdowns to spur busy November in IG corporate primary

    The threat of new national level lockdowns in some of Europe’s largest economies could spark a wave of high grade corporate bond issuance, with investors happy to ignore trembling fundamentals as long as the European Central Bank keeps pumping billions into the system.

  • Aston Martin preps huge financing package to fund electric future

    Aston Martin, the British luxury carmaker, has arranged a new financing package to strengthen its balance sheet and cash reserves as it embarks on an ambitious new partnership with German car giant Mercedes-Benz, to start producing electric cars. The bond leg, however, was launched into a difficult market, with the Crossover widening sharply during the first day of bookbuilding.

  • Gansu LGFV sees poor investor turnout for bond

    Gansu LGFV sees poor investor turnout for bond

    Gansu Provincial Highway Aviation Tourism Investment Group Co found lacklustre support for its $300m bond on Tuesday after its pricing strategy deterred investors from joining the deal.

  • JP Morgan appoints new Apac ECM head

    JP Morgan appoints new Apac ECM head

    JP Morgan has rejigged the leadership of its Asia Pacific capital markets businesses, promoting Francesco Lavatelli to the helm of the ECM team.

  • Enagás pays 5bp premium as CSPP warps curves

    Enagás pays 5bp premium as CSPP warps curves

    Enagás, the Spanish gas transmission and network company, came to the bond market for a rare trade on Tuesday, as European Central Bank bond buying continues to make syndicate bankers' lives difficult by taking spreads in strange directions.

Corporate Bonds News Archive

  • Glass half empty: pubcos strike covenant waivers for private placements

    Glass half empty: pubcos strike covenant waivers for private placements

    UK hospitality companies have been avid users of the US private placement market in the past, but since the coronavirus pandemic began, their businesses have been up-ended, with pubs subject to curfews, social distancing and closures. Fortunately, US PP investors have largely followed bank lenders in opting for leniency, waiving covenants or switching to monitoring minimum levels of liquidity. One firm even managed to raise new debt this summer.

  • Michelin gets blowout demand for €1.5bn trade

    Michelin gets blowout demand for €1.5bn trade

    Compagnie Générale des Etablissements Michelin, the French tyre company, won more than €10bn of demand for its €1.5bn bond issue on Monday. Now a growing number of corporate bankers expect to see European high grade spreads return to pre-Covid 19 levels.

  • Tax rethink will completely change Swiss bond 'side dish', says departing veteran Ronald Hinterkircher

    Tax rethink will completely change Swiss bond 'side dish', says departing veteran Ronald Hinterkircher

    Ronald Hinterkircher, who is retiring from the Swiss franc bond market after a 40 year career, has told GlobalCapital that digitalisation and the possible removal of the withholding tax for foreign investors could change the market over the next few years. But with the European Central Bank propping up the euro bond market, arbitrage opportunities for international companies in Swiss francs are vanishingly slim.

  • China issuers sneak into closing bond window

    China issuers sneak into closing bond window

    A host of Chinese issuers found one of the last windows to sell bonds on Thursday ahead of the US presidential elections at the beginning of November and a public holiday in Hong Kong early next week.

  • Two EM deals pulled in a week, but last chance market open, say investors

    Two EM deals pulled in a week, but last chance market open, say investors

    Two EM bond issuers beat hasty retreats from the primary market this week. But despite the challenges the pair faced, bankers and investors believe the market is open for borrowers looking to pick up a bit of funding ahead of what is expected to be a tortuous US election. Lewis McLellan reports.

  • Upstart broker rocks up in Schuldschein to spur secondary trading

    Upstart broker rocks up in Schuldschein to spur secondary trading

    The secondary market in Schuldscheine is rudimentary, partly as the arranging banks have never wanted to encourage it. But a little known brokerage firm is quietly acting as a go-between, helped by its contacts with non-traditional investors, writes Silas Brown.

  • Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira opted to rescue its debt purchasing portfolio company Lowell from the restructuring that many thought was imminent, with the largest slug of equity support any sponsor has injected in Europe since the coronavirus pandemic began. Covid-19 has crushed cashflows for some debt purchasers, but next year should be a bumper year for NPL buying — for those firms with cash to do so, writes Owen Sanderson.

  • eBay Classifieds underlines strength of final market window

    eBay Classifieds underlines strength of final market window

    The €2.6bn financing for Adevinta’s purchase of eBay Classifieds looks set to be a blowout success, with sharp tightening across all tranches underlining the bid for quality credits enduring limited pandemic impact. The deal’s double-B rating helps attract rating-sensitive investors who have seen their portfolios pummelled this year by Covid-related downgrades.

  • Asian bond issuers set frenetic pace

    Asian bond issuers set frenetic pace

    Asia’s dollar bond market has seen a big bump up in volumes this month, as issuers rush to get ahead of the US presidential elections and take advantage of still supportive markets. DCM bankers are expecting a much quieter year end — but they admit anything can happen. Morgan Davis reports.

  • Permira digs deep to recap Lowell as NPL expectations build

    Permira digs deep to recap Lowell as NPL expectations build

    Permira and partners have injected £600m of equity into their debt collector portfolio company Lowell as part of a £2.2bn recapitalisation and refinancing effort for the troubled company, which saw its bonds heavily shorted and was widely expected to restructure its liabilities this year. The contribution is the largest equity injection from a sponsor in EMEA since the coronavirus pandemic began, and reflects what Lowell's management sees as a historic opportunity to buy NPL portfolios in the months ahead.

  • ReNew Power uses tried and tested structure for $325m outing

    ReNew Power uses tried and tested structure for $325m outing

    ReNew Power, the Indian renewable energy giant, brought a $325m green bond to the market on Tuesday. It offered investors a rare opportunity to buy a high yielding deal from the country, despite using a fairly unusual structure for its transaction.

  • Transition bonds: not so sustainable after all

    Transition bonds: not so sustainable after all

    Enel, the Italian energy company, scored a number of firsts last week when it sold a sterling sustainability-linked bond. But the effect of that deal that might last the longest could be that it has brought about the end of transition bonds.

  • Investment grade corporate spreads forecast to widen

    Investment grade corporate spreads forecast to widen

    High grade corporate bond spreads face a rocky few weeks after six months of consistent tightening, as coronavirus lockdowns and corporate earnings blackouts contribute to increased short term volatility.

  • Getlink offers green bond refi after waiving term loan covenants

    Getlink offers green bond refi after waiving term loan covenants

    Getlink, the company that operates the Channel Tunnel, is preparing a €700m high yield green bond to refinance its 2023 bonds and raise cash for capex, including finishing off a landmark electricity connection between the UK and France. The refi comes after it negotiated waivers on the covenants in its term loan to deal with the impact of the pandemic.

  • Euro bond indices break records despite stuttering recoveries

    Euro bond indices break records despite stuttering recoveries

    The S&P euro investment grade corporate bond index hit a record high on Friday’s close, but corporate bankers believe that there is little to justify the complete reversal of the fall seen in the depths of the spring Covid-19 crisis apart from central bank splurging.

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