Loans and High Yield

TIM, formerly Telecom Italia, had 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.

Sixth Street and Investec this week both said they had closed European direct lending funds.

Investec has announced the first close of an inaugural direct lending fund targeting Western Europe’s small cap companies, which Investec believes are underserved by banks and other lenders.

Banks have launched the funding for Ineos’s purchase of BP’s aromatics and acetyls business into syndication, with €2.6bn of new first lien term loan 'B' on offer, plus a package of amendments to Ineos Styrolution’s existing bond and loan debt.

Alternative asset manager Tikehau Capital has hired a new chief operating officer for its private debt strategy, who will also be responsible for private debt investments in France.

Indonesian garment company Pan Brothers has been downgraded by Fitch Ratings for the third time in the past three months as a result of refinancing pressure.

Thai conglomerate Charoen Pokphand Group will likely tap both the bond and loan markets to take out a bridge facility raised last year for the acquisition of retail giant Tesco’s Asia business.

Hong Kong-based energy firm Fortune Oil has returned to the loan market. It is seeking $400m-equivalent to refinance an old borrowing sealed in 2018.

Five Chinese corporate borrowers pushed into the debt market on Thursday, capping a frantic pace of deal flow this week that set a new record for Asia bond issuance.

Europe’s small and medium sized enterprises fear dark days ahead, as treasurers complain of banks withdrawing support and express concerns that central bank bond buying programmes favour the biggest and best capitalised companies. Mike Turner reports.

Adler Group, the German property firm, was the first European leveraged issue out of the gate in 2021 — a BB+ rated name tailor-made to tempt investment grade tourist money, which it managed in style, drawing a book of €4.9bn for a €1.5bn dual tranche issue on Thursday.

HSBC’s aims to boost market share in investment banking and rebalance towards Asia remain intact despite the resignation of one of its most senior lieutenants. But 2021 must be about execution, writes David Rothnie.