Loans and High Yield

Hong Kong department store chain Lifestyle International Holdings returned to the debt market this week after a two-year break to raise $350m.

Moody’s has torn up one of the shibboleths of the Schuldschein market — that its borrowers are worthy of investment grade ratings. On Wednesday, the rating agency said a number of borrowers from the car parts sector were overleveraged and not profitable enough. Investors appear to share these worries, but the Schuldschein market offers them little protection and there is no reliable secondary market for them to sell into.

SSAB, the Swedish steelmaker whose blast furnaces account for 10% of Swedish and 7% of Finnish reported carbon emissions, has launched a sustainability-linked bond in Swedish kronor. It wants to cut its emissions 35% between 2018 and 2032 as part of a transition to fossil-free steel.

US-based battery maker Energizer launched a €650m eight year unsecured bond on Wednesday, intending to refinance its 2026 notes, cut interest costs and push out its maturities.

Kaisa Group Holdings battled a volatile market for Chinese high yield issuers on Tuesday when it kicked off a $280m tap, as news around banks’ exposure to peer property credits rattled investors.

Vietnamese education company Nguyen Hoang Group is making its offshore loan debut with a $62m deal.

Chinese company Sany Heavy Industry Co has returned to the offshore loan market after a nine-year absence for $600m.

Hong Kong developer Pacific Century Premium Developments (PCPD) printed a $700m deal on Tuesday as part of its efforts to tender a 2022 bond.

Virgin Media Ireland is looking for €900m of loans, which will have margins linked to specific KPIs, following the Virgin Media/O2 merger in the UK.

JP Morgan has reorganized its leveraged finance capital markets operations in EMEA, with Todd Rothman and David De Boltz having relocated from London to New York.

MicroStrategy’s high yield bitcoin bond is the next step in its journey from business intelligence software firm to vehicle for cryptocurrency speculation. It could be a step too far.

Consumer financing firm Home Credit Vietnam has launched an up to $100m loan into syndication, breaking down commitment tickets to smaller amounts to attract a wider group of lenders.