Health and Biotech

  • Suriname to miss coupon payment, engage IMF amid liquidity squeeze

    Suriname to miss coupon payment, engage IMF amid liquidity squeeze

    Suriname’s new government said on Thursday that it would not make a coupon payment due next Monday on its $550m of 9.25% 2026s as it prepares for restructuring discussions. But with the Surinamese economy capable of generating high levels of hard currency, the focus could be on liquidity relief rather than principal haircuts.

  • Unibail cash call threatened as rebel alliance swells stake

    Unibail cash call threatened as rebel alliance swells stake

    Unibail-Rodamco-Westfield’s rights issue is under increased threat from a group of rebel shareholders that disagree with the company’s vision to reset its business. These shareholders have rapidly surpassed the 5% threshold, according to a filing with the with the Autorité des Marches Financiers, after which they have to disclose their holdings.

  • Simcere Pharma nets $461m from top-end pricing

    Simcere Pharma nets $461m from top-end pricing

    Simcere Pharmaceutical Group has bagged HK$3.57bn ($460.6m) from its IPO, after sealing the offer at the top end of the price guidance, according to a source familiar with the deal.

  • India’s Covid battle: it’s only the beginning

    India’s Covid battle: it’s only the beginning

    India’s economic future is on shaky ground, after the Covid-19 pandemic dealt a blow to the country’s already faltering growth. The impact of the fallout is likely to be felt for years to come — unless the government quickly changes tack.

  • Aedifica back in the market with €459m rights issue

    Aedifica back in the market with €459m rights issue

    Aedifica, the Belgian healthcare real estate investment company, which owns a portfolio of care homes, has launched a €459m rights issue to fund an acquisition and to grow its development pipeline. Sources close to the deal are confident that the cash call will be popular given investor demand for exposure to speciality real estate businesses.

  • State aid helps CMA sail through pandemic refi

    For CMA CGM, a French shipping company, the pandemic came in the nick of time. The group was struggling with debt maturities and dwindling liquidity in late 2019, but abundant state aid funding has allowed it to shore up its balance sheet return to market this week to refinance its 2021s.

  • Korian to raise acquisition capital

    Korian to raise acquisition capital

    Korian, the French nursing home operator, has launched a €400m rights issue to buy Inicea, a French operator of psychiatry clinics.

  • Return on equity disappeared in Q2, says ECB

    Return on equity disappeared in Q2, says ECB

    Euro area banks delivered 0% return on equity in the second quarter, according to new figures from the European Central Bank. The industry is grappling with a decline in income and a sharp surge in loan loss provisions amid the Covid-19 pandemic.

  • Costa Rica bonds tumble as IMF talks pulled

    Costa Rica bonds tumble as IMF talks pulled

    Costa Rica’s bonds have fallen this week after the government cancelled a proposed tax hike that it was planning to bring to discussions with the IMF. The bonds could still be vulnerable as analysts say there remain questions over the viability of a programme with the Fund.

  • CEE economies well placed to resist second wave risks

    CEE economies well placed to resist second wave risks

    Fears of another spike in coronavirus cases are dampening optimism that Central and Eastern European economies would charge out of recovery. But a strong starting position and the EU’s huge support packages mean the region is better placed than most

  • No time to die: Cineworld mulls survival options as it shuts cinemas

    No time to die: Cineworld mulls survival options as it shuts cinemas

    Cineworld announced on Monday it was closing all of its 536 Regal Cinemas in the US and its 127 Cineworld and Picturehouse venues in the UK from Thursday, adding urgency to the company’s search for enough liquidity to see it through the Covid-19 crisis in cinema.

  • Colombia is right to lean on the IMF

    Colombia will become the first country to ever draw funds from an IMF flexible credit line (FCL), the Fund’s facility for its star pupils. In these exceptional times, Colombia should ignore any stigma associated with tapping IMF funding and be applauded for healthy pragmatism.

  • IHG has no vacancies for premiums in new deal

    IHG has no vacancies for premiums in new deal

    InterContinental Hotels (IHG), the UK hotel group, sold sterling and euro debt on Thursday without paying a concession, as market technicals and the potential for a substantial coupon increase proved enough to sweep away investors’ concerns about the sector.

  • Covid-19: sovereign borrowing response

    Covid-19: sovereign borrowing response

    The Covid-19 pandemic is forcing many governments to expand their borrowing programmes. The table below details the impact of the outbreak on the funding requirements of major sovereign bond issuers.

  • Sri Lanka rating cut to Caa1 amid uncertainty

    Sri Lanka rating cut to Caa1 amid uncertainty

    Sri Lanka is facing serious fiscal pressure, a result of the dire economic impact of the coronavirus. That led to a downgrade from Moody’s this week, which lowered its rating by two notches. All three major rating agencies have now downgraded the country this year.

  • Colombia becomes first to draw IMF FCL, could shun bonds

    Colombia becomes first to draw IMF FCL, could shun bonds

    Colombia will become the first country to draw down on an International Monetary Fund flexible credit line (FCL), its instrument for top quality borrowers. The government is likely to use the loan — rather than bond markets — to complete its external funding needs.

  • EM catches volatility virus to throw LatAm pipe into uncertainty

    After a second Latin American borrower in a week pulled plans to issue a bond, bankers are suddenly concerned that the region’s idyllic issuance conditions may be over. But with two infrequent corporates, a Colombian bank and a debut high yield name preparing deals, the extent of the deterioration should be clear soon.

  • RMBS unemployment impact delayed but not stopped, data shows

    RMBS unemployment impact delayed but not stopped, data shows

    Data from DBRS Morningstar and Bank of America shows that government support measures across Europe have delayed the impact of rising unemployment on RMBS deals, though not indefinitely. The news comes as the UK government announces further support for struggling workers.

  • Covid spikes to force equity raisers to come back for more

    Covid spikes to force equity raisers to come back for more

    Equity capital markets investors are likely to face a stream of companies asking them for fresh capital to get them through the second wave of the Covid-19 pandemic, as cases spike again in continental Europe and the UK, writes Sam Kerr. Some will be asking for the second time — or very late.

  • Funding Circle lifts lid on struggles in UK SME lending

    Funding Circle underlined the strain felt by UK small and medium sized enterprises in its half year results on Thursday, as the marketplace lender swung into a loss caused by heavy writedowns of subordinated portions of its SBOLT securitizations. But the lender also achieved strong volumes in government-guaranteed loans, which it sells off balance sheet to Chenavari Investment Management.

  • Covid dries up Schuldschein debuts

    Covid dries up Schuldschein debuts

    New research from analysts at Helaba points to a flight to safety in the Schuldschein market over the course of 2020. Rated issuers are making up a bigger share of deals than they have for a decade, and there have been next to no debuts. Schuldschein arrangers hope this conservative trend does not continue into 2021.

  • Zambia on track for default with investors set to concede

    Zambia on track for default with investors set to concede

    Zambia has requested to defer payments on $3bn of its dollar Eurobonds, in what could be the first default by an African sovereign during the coronavirus crisis. Bondholders said they were resigning themselves to accepting the deferral request.

  • IPO pricing continues but Covid darkens skies over market

    IPO pricing continues but Covid darkens skies over market

    The European IPO market is continuing to churn out deals, but a return of volatility in secondary equity markets is starting to cause discomfort among syndicate bankers, who say they must proceed with caution in the weeks ahead.

  • Debt purchasers dip into market to prep for NPL rush

    Debt purchasers dip into market to prep for NPL rush

    Debt purchasing firms are repeatedly hitting the high yield market to prepare their capital structures for the likely wave of portfolio sales as pandemic support schemes roll off, with France’s iQera the latest in the market. But some companies in the sector are in no position to refinance, such as Lowell which is effectively shut out of the market with its own credit concerns, raising questions about whether these companies can compete for post-Covid loan sales.

  • Norway to tighten mortgage lending after pandemic easing

    Norway to tighten mortgage lending after pandemic easing

    Norway’s Ministry of Finance has said it will apply tighter mortgage lending standards from next week after temporarily loosening them to support the economy. The move, which was not unexpected in light of the resilient state of the economy and stubbornly high house price inflation, will minimise mortgage defaults.

  • Covid raises hedging question as markets plot path forward

    Covid raises hedging question as markets plot path forward

    The violent sell-off across financial markets this spring turned many investors’ positions upside down. Those without proper hedges in place were at best left embarrassed and at worst forced to shut up shop. Despite central banks once again intervening, plenty are finding reason to be cautious. Ross Lancaster investigates what lessons, if any, market participants have learnt from the meltdown.

  • London bankers prepare for new office working guidelines

    London bankers prepare for new office working guidelines

    London's investment bankers are getting to grips once more with the UK government's guidance on coronavirus, after it said on Tuesday that office workers should work from home, if possible. Banks had slowly been inviting more staff back into London offices in recent months while the government had also been urging people to get back to the office.

  • UK government virus switcheroo risks City's long-term health

    UK government virus switcheroo risks City's long-term health

    The UK government’s sudden volte face this week about working from home may slow coronavirus infections but it betrayed a fundamental lack of strategic thinking and stability over the most pressing concerns. That should worry the City, which is in a fight for its future as a leading financial centre, as a result of Brexit.