Strange days indeed: hairy credits and wary Desperate ...dl.magazinedl.com/magazinedl/IFR...

APRIL 4 2020 ISSUE 2327 www.ifre.com

PLUS: Q1 LEAGUE TABLES

LOANS

Asda deals blow to lenders as Walmart halts sale04

BONDS

US$600m YUM! Brands bond breathes life into junk market05

PEOPLE & MARKETS

dividends: European banks axe payouts08

EQUITIES

Underwriters stuck with 21% of AMS after rights goes wrong11

Strange days indeed: hairy credits and wary investors but bond issuance booms

Desperate Carnival ships in US$6.25bn via debt-and-equity rescue recap

Coffee spill hits ECM pipeline: Luckin scandal adds to mistrust of Chinese issuers

1 IFR Cover 2327.indd 1 03/04/2020 19:53:04

IFR’s ESG Financing Briefing

IFR’s ESG Financing Briefing is a subscription

service offering daily news, data and analysis

on green and ESG financing from across the

Refinitiv Capital Markets Insight Team.

To subscribe or learn more, e-mail

[email protected]

International Financing Review April 4 2020 1

Upfront OPINION INTERNATIONAL FINANCING REVIEW

Ship of fools?Carnival’s surprising success in raising US$6.25bn of fresh

capital via a debt-and-equity recap suggests that reports of the death of the cruise industry may be exaggerated.

The world’s largest cruise line operator, a dubious distinction in the time of Covid-19, was able to bridge its

breathing space over the coming months while it tries to lure back passengers.

Of course, Carnival didn’t have much choice.Though just about every company seems to be getting

some form of emergency relief from the virus crisis, the idea of the US government bailing out cruise lines had become politically toxic.

The industry pays little US tax (Carnival is dual-listed in New York and London, and actually comprises two companies, one incorporated in Panama and the other in the UK), employs mostly non-US workers and, for good measure, is taking a certain share of the blame for helping spread the virus.

With its operations in suspension and investors therefore having zero visibility into the near-term outlook, Carnival’s recap was a predictably expensive exercise.

The stock sale was priced more than 80% below levels at the start of the year, while the bonds needed double-digit coupons even with Carnival’s ships as collateral.

Still, it is tempting to think that if Carnival can access capital markets in the middle of the virus crisis then there’s hope for any company whose survival is threatened by the effects of the pandemic, whether that be an airline, a plane-maker, a hotelier or a restaurant chain.

Outside of the US, UK airport concessionaire SSP already raised equity last month, while Australian travel agency Flight Centre Travel was stitching together its own stock sale late last week.

Bankers remain wary of predicting a wave of equity recaps in the travel industry or elsewhere, partly because there is still so much uncertainty about how this crisis will unfold. CEOs also have to consider whether the stigma of taking government aid and the strings attached are worth it.

But the Carnival deal does highlight the under-appreciated ability of capital markets to solve political headaches, in particular the massive unpopularity of bailouts. Inevitably, these sorts of solutions will play a big role in getting the global economy back on its feet.

Political dividendsEarlier this year, HSBC’s army of loyal shareholders in

Hong Kong were probably thankful the bank had decided

in 2016 to remain headquartered in London, rather than

territory had dragged on for months, and Hong Kong investors could comfort themselves that the bank’s bosses were 6,000 miles away and somewhat detached from the politics.

Many Hong Kong investors may have taken a different view last week, however, when the Bank of England forced UK-headquartered banks including HSBC to scrap their

dividends for 2019, which had already been promised. The latter was a US$4.2bn cheque for HSBC investors due on April 14, of which US$1.7bn was destined for Hong Kong retail shareholders.

HSBC prides itself on the stability of payouts, and generations of Hong Kong retail investors have bought into that concept. They own over a third of the bank’s shares. The shares often stay in the family for years, providing valuable income every three months, or accumulating thanks to a healthy scrip uptake (26% of the dividend was taken as shares last year).

Investors, understandably, have directed their anger at the distant regulator. Did it not know the bank made 35% of its revenues in Hong Kong last year, and a whopping 55% of its

leaks to newspapers, that HSBC is once again considering moving back to Hong Kong. The people spinning that line

place.Surrendering the bank to the control – and that is what it

would eventually be – of the Chinese Communist Party is not the legacy that any HSBC CEO should want to be remembered for.

It is just 27 more years before Hong Kong is due to be fully re-absorbed into mainland China – and yes, for a bank that traces its origins back to 1865 and makes much of its storied history, “just” is exactly the right word. A bank that looks

by-night decisions.HSBC bosses can be forgiven for feeling aggrieved that they

have been forced to let down their investors over the dividend but there are bigger issues at stake just at the moment. Rather than re-igniting the debate about the right place for its headquarters, HSBC top brass should be putting their energy into supporting the real economy, making a success of its latest restructuring and ensuring that when the

the share price and not just dividend payouts.

In order to avoid any service disruptions due to the coronavirus outbreak and ensure you are able to stay up to date with IFR’s coverage of the capital markets, Refinitiv is providing free access to our online IFRe.com platform for all IFR magazine subscribers over the next two months. Please contact us at [email protected] if you would like to take advantage of this offer.

2 IFR Upfront 2327 p1.indd 1 03/04/2020 19:52:34

International Financing Review April 4 20202

Top news Carnival ships in US$6.25bn 04 YUM! Brands returns 05 Israel hits right notes 06

Hairy credits and wary investors but bond issuance booms

Bonds Strange days indeed as records fall and trickier credits return

BY WILLIAM HOFFMAN, SUDIP ROY

Corporates more vulnerable to the economic damage being caused by the coronavirus pandemic joined in the borrowing spree in the investment-grade markets last week as issuance records again tumbled on both sides of the Atlantic.

Despite bleak warnings from President Trump about the number of lives that could be lost in the US from the virus and further awful economic data sending US equity markets back into a downward spiral, the US credit markets were dancing to a different tune.

In Europe, too, a number of issuers from more troubled sectors were out in force, some with blowout deals, as anchor support from the ECB helped to smash the weekly issuance record in the euro investment-grade corporate market.

While upcoming earnings blackouts and the Easter holiday will provide a natural pause in issuance, one banker summed up the view of many when he said the market had “come too far, too fast”.

No deal, however, has failed since March 23 when the US Federal Reserve joined the ranks of central banks prepared to buy corporate bonds – though there’s no evidence it has actually done so yet.

Instead there has been an unprecedented scale of borrowing as corporates seek to build their cash balances,

themselves in a better position to weather further volatility.

In the US high-grade market, another US$110.9bn of bonds was priced last week as of Thursday’s close, establishing a

new weekly issuance record just a week after the last one was set. The US$109bn issued the previous week helped establish new monthly and quarterly records – something unimaginable just a fortnight ago.

More than US$256bn of bonds were sold in March to help to

just less than US$486bn. All that,

from high-grade bond funds during March.

IT’S ALL RELATIVE

While the initial funding rally was paved by blue-chip names, last week was characterised by issuance from Triple B credits at risk of becoming fallen angels.

“As of Monday, access opened up to the broader IG community in a way that it really wasn’t even a week ago,” said one DCM syndicate banker.

“There are a number of funding stresses in other markets, so the reprieve in IG primary credit and the rally in the secondaries makes the high-

grade market a lot more attractive on a relative basis.”

Issuers included FOX CORP, GENERAL MILLS and SYSCO as well as a number of lesser-known utility

Sysco’s US$4bn four-part bond is viewed as the prime example of the shift for Triple Bs.

The company distributes food to restaurants, stadiums and other events involving crowds, which puts it under considerable pressure as such activities are cancelled.

“No company is entirely insulated from the downturn, but if you’re a global brand name like Coke, Pepsi or Verizon – these sorts of names that are attributed with reopening the market – they obviously have a

scale and breadth,” said a lead on the Sysco trade.

“Sysco’s business, on the other hand, is delivering food to restaurants, venues and theatres so obviously they are right in the eye of the storm.”

Moody’s downgraded Sysco to Baa1 from A3, while S&P

negative outlook, heightening fallen angel fears. Ahead of issuance, Fitch also released a

with a negative outlook.Yet the US$4bn bond deal

a remarkable US$24.4bn in orders.

“People are concerned about Sysco falling to junk,” one investor said. “It shows that debt markets are open for even riskier names right now.”

The food distributor did have to pay up handsomely though.

year, a US$1.25bn 10-year, a US$750m 20-year and a US$1.25bn 30-year all at 525bp over Treasuries.

Those spreads were way above fair value with the new-issue premium at 125bp–130bp, according to IFR calculations, though one syndicate banker away from the trade pegged it closer to 200bp.

The lead banker said Sysco management went above and beyond to get the deal done by seeking out a third credit rating, adding coupon step-ups in the event of a downgrade to high-yield and adding

BIGGEST US CORPORATE BOND DEALS

Source: IFR

US$bn

0

10

20

30

40

50

Bris

tol-M

yers

(201

9)

T-M

obile

(202

0)

Mic

roso

ft (2

016)

Ora

cle

(202

0)

IBM

(201

9)

Hal

f Moo

n (2

018)

Dia

mon

d Fi

nanc

e (2

016)

Act

avis

(201

5)

AT&

T (2

017)

Com

cast

(201

8)

Abb

Vie

(201

9)

CVS

(201

8)

Anh

euse

r-B

usch

(201

6)

Veriz

on (2

013)

49.046.0

40.0

30.027.0

22.521.0 20.0 20.0 20.0 19.8 19.0 19.020.0

“There are a number of funding stresses in other markets, so the reprieve in IG primary credit and the rally in the secondaries makes the high-grade market a lot more attractive on a relative basis”

4 IFR Top news 2327.p2-12.indd 2 03/04/2020 19:29:24


For daily news stories visit www.ifre.com@

Oracle’s splashy US$20bn 06 Bonfire of the dividends 08 Coffee spill hits ECM 10

change-of-control language to the covenants.

The bonds were trading some 70bp–85bp tighter in the aftermarket on Tuesday, according to MarketAxess.

“The Sysco deal shows that the market has evolved and broadened to the point where there is access now for these sorts of names,” the lead banker said.

SIMILAR STORYIt was a similar story in Europe, although issuance from trickier

Triple B rated corporates.Issuers came from the auto

sector (VOLKSWAGEN, DAIMLER), oil (TOTAL, SHELL, BP, OMV), air travel (AIRBUS, ROYAL SCHIPHOL) and real estate (VONOVIA, GRAND CITY, UNIBAIL-RODAMCO-WESTFIELD).

Such issuers, together with some more defensive credits, such as utility E.ON and telecoms ORANGE, helped swell euro issuance volumes to €39.55bn, easily beating the previous weekly record of €24.05bn set in

This came despite €140bn of debt within the investment-grade sector being downgraded in March, according to Bank of America calculations. Few industries were spared.

“We are in a very strange environment. There is a high degree of consensus of what people want to do, but they can’t do it. They would like to buy defensive names which have sold off but no one will sell at a reasonable price,” said

income at the international business of Federated Hermes.

“Everyone would like to sell what they don’t like, but there are just no buyers. If a new issue comes at a meaningful premium and it’s a reasonably high-quality name, then you are going to jump at that.”

That proved to the case for Total, for example, whose €3bn dual-tranche deal saw demand top €13.5bn. The deal was upsized from €2.5bn.

“The company has one of the best balance sheets in the sector to deal with the current price volatility,” said Christian Hantel, senior portfolio manager for global corporate bonds at Vontobel.

The slump in oil prices has forced Total to reassess its business strategy, including cutting costs and suspending its share buyback programme.

Leads began with concessions of around 70bp but by the end were able snip 40bp off. The company, rated A3/A–, has negative outlooks from Moody’s and S&P hanging over it, but investors appear comfortable with the risk.

Dutch airport Royal Schiphol is also on negative outlook with the agencies for its A1/A+ ratings but was still able to upsize an expected €500m nine-year green bond to €750m.

For investors the repricing of these still relatively high-rated credits is the big draw.

investing in those names, Total and Royal Schiphol, is the spread concession compared with both the secondary market and the historical premium for these high-rated companies,” said Ismael Lecanu, senior credit portfolio manager at AXA Investment Managers.

MORE CHALLENGINGThe real estate deals proved a bit more of a challenge. Unlike other sectors, landlords aren’t being given government assistance.

GRAND CITY, a Baa1/BBB+ rated residential REIT with properties in Germany, for example, had to sell a €600m four-year bond off a book of €1.1bn, leaving the deal less than twice covered.

Still, some investors feel far more comfortable with residential real estate than retail properties.

“Retail is particularly scary,” said an investor. “I’m doubting there’s much of a rebound even once we are out of lockdown – the recession will kick in then.”

And yet Unibail, which owns shopping centres, raised €1.4bn in debt split between a €600m

year note.Investors placed €3.1bn in

orders thanks to a premium seen at 80bp on both tranches at initial price thoughts and at 50bp–55bp by the end.

Unibail, rated A3/A– (both with negative outlook), said that it had €10.2bn in cash on hand and undrawn credit lines.

Clearly the presence of the ECB in the primary market is adding a big degree of comfort, though it also keeping other investors on their toes.

“The worst-case scenario is that you are underweight or – worse – short something the ECB is buying,” said Jackson. “Spreads can tighten in very rapidly if the ECB changes what it is buying and that can be very painful.”

But the ECB isn’t alone in supporting books. One of the consequences of the coronavirus-inspired sell-off is that it has brought other investors into the fold.

Absolute return investors, for example, are returning to the asset class after being priced out when yields were getting crushed to historical lows.

“There are lots of absolute return investors. They may not be the longest-term investors, but they’re helping oversubscription,” said a senior banker.

Another group dipping into the investment-grade market is those bank treasuries that traditionally buy peripheral eurozone sovereign debt. Some

mandates are also buying. These buyers are

complementing the insurers and asset managers that are attracted by the relatively higher yields on offer.

Additional reporting by Robert Hogg and Eleanor Duncan.

0

50

100

150

200

250

300

May2015

Sep2019

Jan2017

May2016

Mar2020

REMARKABLE RECORDTOP FIVE US HIGH-GRADE ISSUANCE MONTHS

Source: Refinitiv

US$bn

“We are in a very strange environment. There is a high degree of consensus of what people want to do, but they can’t do it. They would like to buy defensive names which have sold off but no one will sell at a reasonable price”



Top news

Asda deals blow to lenders Loans Banks were looking at Asda buyout financing and are still preparing for other large M&A deals

BY CLAIRE RUCKIN

Banks were preparing to raise up to £3.5bn of underwritten debt to back a potential buyout of British supermarket ASDA before owner Walmart decided to put the sale on hold last week in light of the coronavirus pandemic.

Walmart, the world’s largest retailer, has been in discussions with potential buyers Apollo, Lone Star and TDR Capital for some time and banks were assessing appetite

leveraged loan market that has been frozen by the pandemic.

Bankers were disappointed by Walmart’s decision to put the sale process on hold until the coronavirus effect lifts, but they will be cheered by the fact that

were positive.While the Asda sale has now

been put on the back burner, lenders are still looking at other M&A situations.

“Obviously there is a willingness from most of the banks to be

constructive and if you are asked to do something you’ll try and do it for your client,” a banker said.

“Banks are still looking at some other M&A situations and there is still a willingness to consider things ... Asda is more sensitive at the moment because of the vital role it is playing in what’s going on, as its workers are key workers and it is trying to get food out to the country.”

Banks would typically jump at the chance to fund a jumbo buyout,

problematic in the current climate as risk-adverse lenders have all but stopped underwriting leveraged

“Banks have been looking at Asda and a few others out there. Banks have to think about how long do they have to sit on risk and ... do they have protections in place even if the market reprices to a new level? That’s what banks are going through at the moment on a few new deals out there,” a second banker said.

The talks around the Asda

Carnival ships in US$6.25bn rescue Bonds/Equities It’s not exactly ship-shape but strong covenants and recovery value see investors take a punt

BY STEPHEN LACEY, DAVID BELL

CARNIVAL CORP has been forced to pay up dramatically for a US$6.25bn debt-plus-equity recapitalisation that is designed to keep the holed cruise ship

Carnival secured US$4bn from the sale of three-year debt and another US$2.25bn from equity-linked securities on Wednesday to raise slightly more than the US$6bn combined it had targeted as it re-sized the

to its shareholders.“The point of this raise is to

give comfort to shareholders and other stakeholders that Carnival will have enough liquidity to see them through however long it takes,” said one banker involved

“No one knows for sure when the coronavirus pandemic will end. Two months, six, 12? That decision will be driven by government authorities.”

JP Morgan, Goldman Sachs and Bank of America had sought to de-

institutional investors on Monday, ahead of the formal launch.

Those efforts were complicated by the fact that Carnival is dual-listed on the NYSE and the LSE and the complexities of

complying with UK watchdog FCA’s market abuse regulations meant limiting participation at that stage to US institutions.

The marketing effort was focused on ensuring a successful outcome by making the deal super-attractive for investors.

Carnival publicly launched the three-year non-call life bullet senior secured bond offering on Tuesday at an initial sizing of US$3bn, with talk in the 12.5% area and a 98–99 OID. The equity tranches were initially divided into US$1.75bn of three-year convertible bonds and US$1.25bn of common stock, with the CB talked at a coupon of 5.75%–6.25% and a conversion premium of 17.5%–22.5%.

structure underscored an “eye’s wide open” approach by Carnival management regarding the impact of coronavirus on their business. The CB issue, for example, was modelled six to 10 points cheap, based on the Libor plus 1,400bp credit spread imputed by the straight bonds and a 40 implied volatility.

GRIM REALITY

The attractive terms were necessary as Carnival is in effect a non-operational company. It voluntarily suspended operations globally on March 13 as the coronavirus crisis deepened and as a non-US company

is not able to participate in US$500bn of US government programmes being directed toward distressed businesses.

Over the two days of public marketing on Tuesday and

CDS blew out to 1,000bp from 490bp, and its NYSE-listed shares tanked 33.2% to US$8.80,

Carnival responded by upping the straight debt component from US$3bn, while reducing the amount of stock sold to US$500m and keeping the CB issue at US$1.75bn.

strength of investor demand for the new debt and a desire by Carnival management to limit stock dilution.

Carnival’s three-year secured notes printed at an 11.5% coupon and a 99 OID, terms suggestive of a company in distress. The company sold 62.5m shares at US$8.00 apiece, a 9.1% discount to last sale, with the CBs priced at a US$10.00 conversion price, a 25% premium to reference on the common, with a 5.75% coupon.

Moody’s and S&P had twice downgraded Carnival’s corporate credit ratings in the past month. Its ratings are now one notch above junk at Baa3/BBB–.

“Demand was surprisingly strong from high-yield investors,”

said one banker involved in the underwriting. “We haven’t seen this type of company access the debt markets for a rescue

“That demand alleviated the need for more junior capital. While the debt is certainly not cheap it is certainly a lot cheaper than equity if the stock price recovers.”

As it stands, Carnival sold about 12% of itself on the base equity offering with additional dilution possible from the CBs at prices above US$10.00.

The outcome is a shocking testament to how far and fast conditions have deteriorated for the company. For perspective, Carnival raised €600m from the sale of 10-year bonds at a 1% coupon last October, when it was rated A3/A– and its shares fetched closer to US$50.

SECURITY PACKAGE

While still technically investment grade, Carnival’s US$4bn secured debt offering was marketed as high-yield bonds and featured a covenant package to match.

Carnival pledged the lion’s share of its assets, including the

income investment manager at Kames Capital, estimates the collateral is worth somewhere in the range of US$28bn.




YUM! Brands breathes life into US junk bond market

Bonds First HY deal done remotely

BY DAVID BELL

YUM! BRANDS re-opened the US high-yield primary bond market

seen in the asset class since March 4.

The fast food company, which operates KFC, Taco Bell, Pizza Hut, and WingStreet chains

non-call two senior note, rated B1/B+, at 7.75%.

With the book as much as 10 times subscribed the company upsized the deal from an initial US$500m to US$600m with buyers taking a shine to the attractive concession.

Goldman Sachs was left-lead with Wells Fargo, Citigroup, JP Morgan, Bank of America and Morgan Stanley also bookrunners on the deal.

The banks priced the bond at the tight end of 7.75%–8.00% price talk but still offered a decent pick-up to where the

traded in secondary, at a cash price of 92 to yield 5.83%, according to MarketAxess.

It was a test of remote capabilities for high-yield bankers with the entire syndication and sales teams working from home, according to a banker at one of the leads.

done in high-yield,” he said.

BLAZING A TRAIL

borrowers last week that chose to raise debt in the high-yield market to shore up liquidity, even though average spreads have almost doubled since March 4 when the last deal was priced, to 911bp as of Thursday, according to ICE BofA data.

But high-yield issuers are taking the lead from investment-grade names and

becoming more willing to pay up for liquidity, given the uncertainty over the economic impact of the pandemic.

“YUM! catalysed the view that putting cash on the balance sheet is a good idea – and even if they have to do it at a level

ago, on a weighted average cost of capital basis it is a rounding error,” said another banker at one of the leads.

The notes traded up to 104.5 in the secondary after pricing, where they have remained as of Thursday, according to MarketAxess.

YUM! was able to access the market despite the impact that coronavirus is having on its operations.

The company said on March 24 that around 7,000 of its restaurants around the globe were shut, including more than 1,000 Pizza Hut Express units in the US and over 900 KFCs in the UK.

It is expecting a decline in same-store sales in a range of mid-to-high single digits for the quarter ending March 31.

And the company warned that second-quarter sales could be worse hit “due to the increasing number of markets currently impacted”.

Moody’s changed its outlook on the company’s ratings from stable to negative on Monday, saying the company was increasing debt levels at a time of substantial uncertainty over

pandemic.In an earlier step to boost

liquidity, the company drew US$525m on its revolving facility on March 24, taking the total amount drawn on the US$1bn facility to US$950m – a move it described as a “precautionary” measure to

optimism into the loan market as there was a willingness from a large number of banks to try and do the deal and get the pipeline going.

“Sponsors are approaching

possible and banks are trying to work through it. Although primary is notionally shut, if something were to come with a

the Asda sale was put on hold.Any sponsor wanting to do a

deal would have to pay up for the debt.

Banks typically have 125bp of

increase pricing of an interest margin or original issue discount to tempt investors into a deal. However, banks willing to fund a deal now would ask for

“Sponsors will recognise they have to pay up to do a deal in the current market and be open-minded; docs can’t be as aggressive

A third banker said: “Lower leverage, higher fees, higher

question is that even if you do all of that, does it really matter? You can price it up but if you underwrite a meaningful size, you need to make sure there is a market to sell it to.”

“Optically, this suggests that the debt is extremely well covered should the business run out of liquidity,” Karnes said. “However, it is somewhat uncertain what these assets are

come to pass.”Carnival also offered a

covenant package that was investor-friendly even by high-yield market standards.

It includes a “very unusual and investor-friendly” provision that blocks Carnival from making restricted payments for at least one year, noted analysts at Covenant Review.

Carnival suspended its common stock dividend and share repurchases, activities prohibited under the restricted payments basket, as part of the

drew down on a US$3bn revolver to lock-in liquidity.

The restricted payments package allows access to the build-up basket only if consolidated leverage is below six-

year three.Investment grade companies

typically do not issue bonds with these restrictions and even several high-yield companies were able to strip away these kind of investor protections before the corona crisis struck.

“I’m surprised by the market sentiment for bonds being sold by a cruise line,” said David Knutson, head of credit research at Schroders.

“I would have thought people would be more circumspect and cautious on buying bonds issued by a cruise line given all the challenges leisure and cruise lines in particular are going to face over at least the next couple of quarters.”

Carnival has US$1.7bn of debt maturing before the April 1 2023 maturity of the new debt and CBs sold, but now has enough money

scenario for about 13 months, according to analysts at UBS.

Royal Caribbean Cruises, by comparison, would be able to last six to seven months under a similarly stressed scenario, the UBS analysts said, so there may be an

Carnival, which operates 104 ships with another 16 under construction, all which are funded by committed export credit facilities, is likely to sail again. The fact that no one knows for sure when makes last

remarkable.

60

70

80

90

100

110

2 Apr19 Mar20 Feb6 Feb2020

CARNIVAL CORP 1.875% NOV 2022 BOND

Source: Refinitiv

Bid price



Top news

Centurion Israel hits the right notes Emerging Markets Sovereign issues debut 100-year bond as part of three-part deal

BY SUDIP ROY

ISRAEL joined the 100-year club as central banks’ support of the

encourages issuers to extend their maturity curves as far as possible.

While century bonds are commonly associated with bull markets, current conditions are very different. But with Israel grappling with the effects of the coronavirus and investors seeking duration, it made sense for the Middle East sovereign to term out its debt stock.

“The bid for duration has been strong in both rates and credit in the past couple of weeks,” said a banker at one of the leads.

In the US high-grade market, for example, some borrowers have priced their longer-dated bonds inside their shorter ones on a spread basis.

It was still a surprise, though, to see a 100-year bond when Israel (A1/AA–/A+) announced

the deal on Tuesday, alongside 10 and 30-year tranches. But bankers said the sovereign was one of the best candidates for such a trade.

“It’s probably a unique name for this market. It’s well rated, not an oil economy and

is a member of the OECD,” said a banker away from the deal.

Initially, Israel was targeting a US$4bn transaction but a combined order book of US$25bn enabled it to raise US$5bn.

The deal meant Israel became only the sixth sovereign to issue a century bond.

While the tenor has become a little tainted by fellow 100-year club member Argentina’s travails, Israel proved that for top-rated issuers investors remain keen to buy bonds that, though more vulnerable to interest rate risk than shorter-dated debt, pay higher rates.

“The duration, headline coupons and, to some degree, convexity of these issues is attractive to buyers, with extended debt life being the

lead banker.

RATINGS SUPPORT

The convexity-adjusted additional duration over the 30-year bond was about six years but what mattered to Israel was to be able to term out the average life of its portfolio – something that will support its ratings.

Oracle prices splashy US$20bn deal Bonds Deal funds share buybacks, but opportunistic M&A transactions could follow

BY WILLIAM HOFFMAN

IT company ORACLE on Monday priced the largest US high-grade corporate bond deal of year so far, taking a surprising amount for a transaction that is not

The US$20bn six-part bond is expected to fund general corporate purposes, share buybacks and could be used for future M&A, even though no deal is announced at this time.

It was the largest deal on a day in which 12 borrowers raised US$37.175bn in the US high-grade bond primary for the largest volume day of the year, according to IFR data.

“It’s a war chest deal,” one syndicate banker away from the trade said.

“US$20bn is a huge number, bigger than I would have expected.”

The deal received a lot of investor demand, but came across to several market participants as what one described as “insensitive”.

Some companies need access to the market just to keep the

lights on and maintain payroll, but Oracle is taking more size than it needs out of the market to fund a US$15bn share repurchase

broker-dealer analyst said.“To use the proceeds for share

repurchases seems opportunistic and out of tune,” the analyst said.

An investor agreed. “Companies don’t need to be focusing on their stock; they just need to be doing the right things: keeping a strong balance sheet, keeping liquidity and shoring up liquidity when they need it to get them through this time,” he said.

Some market participants did admit though that if the funds are used for M&A somewhere down the line it could be looked at as a shrewd offensive move in

a moment of dislocation in the market.

“In the tech space you may have some smaller companies that were ready to IPO and if you have some cash in the barrelhead, you’re in a better position to execute,” said Matt Daly, head of corporate credit research at Conning.

When the deal was announced and initial price thoughts released, the software

it would be downgraded by one notch by Fitch to A– with a negative outlook and by two notches by Moody’s to A3 with a stable outlook. It duly was.

S&P maintains an A+ rating, but is expected to downgrade later this year if the company follows through with share repurchase programme.

2.6

2.8

3.0

3.2

3.4

3.6

3.8

AprMarFebJan2020

NOT BACK TO NORMAL BUT GOOD ENOUGHTHE YIELD ON ISRAEL'S 3.375% JANUARY 2050s

Source: Refinitiv

%

“Companies don’t need to be focusing on their stock; they just need to be doing the right things: keeping a strong balance sheet, keeping liquidity and shoring up liquidity when they need it to get them through this time”




“The duration extension is marginal but the average life extension is material, which is important in debt stats for

banker.“The key point was delivering

some extra capacity” at attractive coupon rates.

Israel priced the US$1bn April 2120 bond at a yield of 4.5%, the US$2bn July 2030 tranche at 2.75% and the US$2bn July 2050 note at 3.875%.

Those compare with initial price thoughts of the 3.125% area, the 4.25% area and the 4.875% area. At those IPTs, the premium was about 75bp, but leads cut that in half by the end.

Israel, which did a couple of private placements recently, was in the public market at the beginning of the year, raising US$3bn.

Bank of America, Barclays, Citigroup and Goldman Sachs were the leads on the latest deal.

Israel was not the only sovereign to sell 100-year debt last week. IRELAND (A2/AA–/A+) responded to a reverse enquiry with a €100m 2120 MTN with a coupon of 1.2% on Monday via Barclays.

Bankers noted the relatively low coupon, especially given market conditions.

Just like its eurozone peers, Ireland is expected to see an increase in its borrowing activity in the coming years because of the coronavirus pandemic.

To that end, numerous SSA issuers are taking advantage of the better conditions to raise funds with investors more than happy to lend. Indeed, BELGIUM (Aa3/AA/AA–) amassed a record €57bn-plus peak of demand for a new October 2027 issue on Tuesday.

Belgium’s order book exceeded the SSA market (excluding emerging markets) demand record, set by Spain in January when it attracted more than €53bn for a 10-year bond.

Additional reporting by Ed Clark

Oracle’s shareholder-oriented

driver of today’s ratings action,” Moody’s analyst Raj Joshi said in the ratings report.

“Oracle’s proposed debt issuance, the recent US$15bn increase in share buyback authorisation, and its history of elevated share repurchases lead

policy will continue to target aggressive share repurchases and gross leverage will remain

TRADING LEVELSBookrunners Bank of America, Bank of New York Mellon, JP Morgan and Wells Fargo started IPTs cheap and tightened spreads by 40bp through price progression.

Still, the company paid up to take size, giving up around 33bp–38bp of new-issue concessions over its secondary curve, according to IFR calculations. CreditSights placed

the premium closer the 60bp.Oracle priced the US$3.5bn

the US$2.25bn seven-year, US$3.25bn 10-year, US$3bn 20-year and US4.5bn 30-year tranches all at 225bp over and the US$3.5bn 40-year at 250bp over.

Some of the shorter-dated tranches were trading as much as 40bp tighter in the secondary market on Thursday, while the longer maturities barely budged from pricing levels, according to MarketAxess data.

Two other tech names were in the high grade-primary market this month: Chipmaker INTEL with a US$8bn six-part trade and NVIDIA with a US$5bn four-part transaction.

The Oracle deal landed wide of where these bonds tightened to in the secondary.

For example, Intel’s 3.9% 2030 is trading at around 178bp over Treasuries while Nvidia’s 2.85% 2030 is trading around 195bp over, according to MarketAxess data.

Banks prepare for wall of debt standstills

Loans Some will halt repayments without permission

BY SANDRINE BRADLEY

Lenders are preparing to be inundated by debt standstill requests, as European corporate borrowers ramp up their efforts to lock in liquidity, although debt advisers expect some companies to stop making interest payments on their loans

permission.“Everyone is in survival

mode. We are entering the standstill phase, some will

others will just stop paying – that’s where we are at. If you aren’t making money, keep all the cash you can and face the consequences later,” said a debt adviser.

began, many borrowers chose to drawdown on their loans, including revolving credit facilities. Following that, more companies sought additional liquidity through new RCFs and bridge loans. Italian auto giant FIAT CHRYSLER, for example, agreed a €3.5bn bridge to support its access to capital markets during the pandemic.

Debt advisers say the new phase will see more requests for debt standstills, with some already formally negotiated.

Norway’s PROSAFE, which provides accommodation vessels for the oil industry, has agreed deferrals on its US$1.3bn and US$288m loan facilities, while Ukraine’s largest private power producer DTEK also suspended interest payments on Eurobonds and bank loans.

Other borrowers will inevitably opt to take a more informal route.

“You have to prioritise critical payments to keep the business alive and to protect employees. If you need liquidity, just don’t make interest repayments,” a second debt adviser said.

SUPPORT SYSTEMDebt advisers say standstill discussions are generally supported by lenders.

“Banks and CLOs are open to discussions and are generally being supportive,” the second adviser said.

And for companies that are seemingly protected from the effects of the coronavirus for now, the advice is to begin talks on debt standstills sooner rather than later.

now, but even healthy companies can’t be healthy forever. It’s a function of time – will this last two to four months or longer? If it’s twelve months, then what happens? Even for those companies standstills might be a sensible option now,” a third adviser said.

This becomes more acute as lenders are expected to become more selective over which borrowers they can offer support to as time goes on.

“Everyone is thinking about liquidity – from investment-grade to sub-investment grade, across the ratings spectrum – and lenders are trying to work out what the priorities are and where the best relationships are,” a head of syndicated lending said.

“They are also trying to work out which borrowers need it and who just wants it. Some companies want liquidity as a backup and some need it to navigate the next few months.”

Additional reporting by Alasdair Reilly and Claire Ruckin

“Everyone is in survival mode. We are entering the standstill phase, some will seek them officially, while others will just stop paying – that’s where we are at”

“It’s probably a unique name for this market. It’s well rated, not an oil economy and is a member of the OECD”



Top news

Dividend futures collapse amid grim earnings outlook

People & Markets Regulators, governments press companies to axe dividends

BY CHRISTOPHER WHITTALL

Futures contracts tied to European company dividends have plunged to their lowest level since at least the eurozone sovereign debt crisis, as a wide

payouts to shareholders because of the economic fallout from the coronavirus.

The Euro Stoxx 50 index dividend futures contract expiring in December – which captures dividend payments from mid-December 2019 to mid-December 2020 – has more than halved in value from above €120 less than a month ago to about €51 on Friday.

That is far below the previous low close of €69 for the front-end dividend futures contract recorded at the height of the eurozone crisis, according to

start of 2011.The collapse in dividend

expectations comes in the wake of European regulators demanding banks suspend dividend payments and government pressure on

sector to stop returning money to shareholders. More broadly, fears of a crippling global recession is also encouraging companies to stockpile cash.

“This is something that we

haven’t seen in the past: governments and even central banks telling large parts of the index not to issue dividends is unprecedented,” said Kokou Agbo-

and solutions at Societe Generale. “It’s a massive correction.”

The largest UK banks have axed interim or quarterly dividends in 2020 and agreed

dividends, which they were about to start paying out, following instructions from the Bank of England’s Prudential Regulation Authority. Most prominent European banks have also now suspended dividends

Bonfire of the bank dividends People & Markets UK and most eurozone banks axe payouts after regulatory pressure

BY CHRISTOPHER SPINK,

STEVE SLATER

Britain’s banks have axed dividend payouts and most major peers in the eurozone have suspended them after

regulators. The authorities want banks to build war chests for lending to help stave off the deep recession that will result from the coronavirus pandemic.

The move was most marked in Britain, where the Bank of England gave banks little option. Within hours, all the major banks, including HSBC and BARCLAYS, said they would not pay interim or quarterly dividends in 2020. They also

2019 dividend, wiping out £7.9bn (US$9.8bn) due to be paid. That included US$4.3bn due from HSBC, a move that angered many of the bank’s army of retail shareholders in Hong Kong and prompted a 10% sell-off in its share price.

Most eurozone banks also scrapped or suspended their dividends following pressure to do so by the European Central Bank and the European Banking Authority.

SANTANDER, the eurozone’s

2019 dividend worth €2.1bn and said it would wait until “there is more visibility of the effects of the Covid-19 crisis” before proposing any future payments.

BNP PARIBAS, another of the Continent’s biggest dividend payers, also said late on Thursday

payout. It said the cash would be held in reserve, and after October 1 it may distribute those reserves to shareholders in place of the dividend, depending on market conditions.

SOCIETE GENERALE had already

following similar moves by ING, UNICREDIT and INTESA SANPAOLO earlier in the week. However, most banks said they might still make payments covering 2019,

but only after October 1 in line with the ECB’s guidance.

The ECB explicitly said dividends already proposed did not have to be cancelled but urged banks that had not yet held their annual general meetings to change their proposals – which Santander did on Thursday.

Swiss banks are taking a different tack despite their regulator, Finma, urging them to halt dividends. Neither UBS nor CREDIT SUISSE have amended their AGM agendas for April 29 and 30 respectively, asking

2019 dividends.In the US, the largest banks

said they had no plans to halt or cut their dividends. CITIGROUP CEO Michael Corbat said the bank was well positioned to keep making its dividend payments and would do so. US banks have halted share buybacks, which are a far bigger part of their capital distribution policies.

European regulators also

stepped up pressure on banks to stop cash bonuses for staff this year to save money. Banks in Britain and elsewhere mostly resisted those calls – saying that is a decision for later in the year.

BOE THUMBSCREWS

Britain’s banks were in effect given little choice on dividends by the Bank of England’s Prudential Regulation Authority, which threatened to take supervisory action against them if they did not.

“The PRA stands ready to consider use of our supervisory powers should your group not agree to take such action,” PRA CEO Sam Woods said in a letter to each bank’s chief executive.

The BoE moved quickly because some payments were imminent. It wrote to banks on Tuesday afternoon and told them to make a decision within hours, which they did. That was because Barclays was due to make its payment on Friday, one person at a rival bank said.

50

60

70

80

90

100

110

120

130

FRONT-END EURO STOXX 50 INDEX DIVIDEND FUTURES CONTRACT

Source: Refinitiv

€

30/1

2/10

30/1

2/11

30/1

2/12

30/1

2/13

30/1

2/14

30/1

2/15

30/1

2/16

30/1

2/17

30/1

2/18

30/1

2/19




recommendations from the European Banking Authority.

companies are expected to follow suit. France and Germany

receiving state aid will have to suspend dividends. Analysts believe part state-owned companies will also come under pressure to do so, as will private-

struggling in the current climate.

“Companies are in survival mode. They are cutting to

Bloua.Equity strategists at

Barclays said they expected the economic fallout from the coronavirus to be as severe as the 2008 to 2009 recession, albeit briefer. They forecast European earnings per share will fall by about 40% this year, before rebounding in 2021.

NEAR-TERM PAIN

The sharp fall in front-end dividend futures contracts makes this sell-off stand apart from other recent equity market slumps. Historically, longer-dated dividends have tended to have a greater sensitivity to equity market declines because of the pressure from banks’ exotics books hedging structured products, and the higher levels of uncertainty generally over that time horizon, said Edmund Shing, global head of equity derivatives strategy at BNP Paribas.

“However, in this event-driven market decline, a combination of a sharp decline in near-term earnings visibility together with pressure from national regulators and governments have driven a much larger decline in dividend outlook on short-term dividend futures maturities, most notably the 2020 maturity,” Shing said.

UK bankers’ cash bonuses in line of fire

People & Markets Regulators call for deferrals

BY STEVE SLATER,

CHRISTOPHER SPINK

British and European regulators heaped pressure on banks to cut cash bonuses for staff as well as axe dividends in a bid to conserve cash. But banks have so

on compensation.UK banks axed dividends last

week in a quick response to a request by the Bank of England’s Prudential Regulation Authority to do so, but they made no mention of whether they will also cut bonuses. Privately, they said that is a decision for later in the year.

It could affect more than 4,500 senior bankers across

according to IFR calculations. Most affected would be 3,500 senior bankers at BARCLAYS, HSBC and STANDARD CHARTERED, who on average received £192,000 in cash bonuses last year.

“The PRA ... expects banks not to pay any cash bonuses to senior staff, including all material risk-

boards are already considering and will take any appropriate further actions with regard to the accrual, payment and vesting of variable remuneration over coming months,” PRA CEO Sam Woods wrote in a letter to all the bank chiefs.

The European Banking Authority also urged banks in the eurozone to “review their remuneration policies, practices and awards to ensure that they are consistent with and promote sound and effective risk

current economic situation”.

last year had 4,523 staff designated as material risk takers, or MRTs. Many of those are in investment bank and trading divisions.

Barclays had 1,704 MRT staff, or 2% of all employees. They received £320m in aggregate as cash bonuses for 2019. HSBC

had 1,159 MRTs globally (including 585 in its investment bank) and they were paid US$301m in variable cash last year. Standard Chartered had 614 MRTs, who received US$132m in cash bonuses.

Industry sources said banks were likely to heed the requests to not accrue cash for bonuses as long as the coronavirus pandemic lasts, potentially through this year. At least one of the banks is working on making changes to its pay structure to

there is an expectation that scrutiny on pay will build as the coronavirus crisis extends.

But it does not mean bankers will completely miss out on the cash component of their bonus.

any bonus in shares, or defer awards for 2020 into future years when there is less need to conserve capital – continuing the

The EBA acknowledged as much. It said variable remuneration “should be set at a conservative level”, adding that “a larger part of the variable remuneration could be deferred for a longer period and a larger proportion could be paid out in equity instruments”.

Some bank executives have taken pay cuts, although it is not

down.SANTANDER‘s executive

chairman Ana Botin and chief executive Jose Antonio Alvarez said they would halve their compensation in 2020. The Spanish bank said its overall bonus policy would be reviewed too. Rival BBVA said its top managers would not take bonuses this year.

INTESA SANPAOLO‘s chief executive Carlo Messina said he would donate €1m of his 2019 bonus to healthcare initiatives and other top managers of the Italian bank would also give €5m.

HSBC was hardest hit by the news, as it prides itself on its ability to pay dividends, and investors, especially in Hong Kong, rely on its reliable income. HSBC had been due to pay a US$0.21 dividend on April 14. The bank made 55% of its

about 40% of its shareholders are retail investors in the territory.

“Although the decisions taken today will result in shareholders not receiving dividends, they are a sensible precautionary step given the unique role that banks need to play in supporting the wider economy through a period of economic disruption,” the PRA said.

It said the banks were well capitalised but “the extra headroom should help the banks support the economy through 2020”.

BUYBACKS STOPPED

London-based STANDARD

CHARTERED also halted its share buyback programme, which had surprisingly continued on a daily basis. In March it bought back £186m of shares, or 46% of its 2020 plan.

State-backed UK bank ROYAL

BANK OF SCOTLAND said it would no

longer pay out £1.3bn of dividends it had promised. But it said there would be no impact on the payment of interest on outstanding preference shares or Alternative Tier 1 instruments.

SG also said the decision had no impact on coupon payments on its AT1 bonds.

US PAYOUTS CONTINUE

In the US, dividends look set to continue for the biggest banks, although the escalating pandemic crisis there could see plans quickly change, as happened in Europe last week.

The biggest six US banks, including JP MORGAN, BANK OF

AMERICA and Citigroup, are due to pay about US$35bn in dividends, representing about 23% of their shareholder capital return plans.

The far bigger portion of the plans is share buybacks, which were due to total more than US$113bn across the banks for the 2019–20 plans approved by the US Federal Reserve. Each bank suspended its buyback programmes in mid-March, but kept their dividends in place.

Additional reporting by Philip Scipio



Top news

Follow-ons gather pace in Asia Equities Nine deals raise about US$2.8bn over the past week

BY CANDY CHAN, FIONA LAU

Follow-on offerings in Asia-

last week as companies and major shareholders tapped the markets for funds to withstand the coronavirus crisis.

After a month of extreme sell-offs, Asian markets regained some stability, with Australia’s S&P/ASX 200 closing the week 4.65% higher while both Hong Kong’s Hang Seng index and South Korea’s SE Kospi 200 slid a modest 0.9%.

Riding the better conditions, nine companies or their shareholders rushed to raise funds.

More than half of the deals were from Australasia, where Wesfarmers completed the biggest deal of the week with a A$1.07bn (US$651m) block trade in supermarkets operator COLES GROUP.

New Zealand specialist outdoor gear retailer KATHMANDU HOLDINGS, Australian online travel agency

WEBJET, student placement and IDP EDUCATION, and data

centre operator NEXTDC also launched respective placements and/or entitlement offers of NZ$207m (US$123m), A$346m, A$225m and A$672m respectively.

In South Korea, Singapore’s sovereign wealth fund Temasek Holdings raised a combined W619bn (US$504m) from blocks in drugmaker CELLTRION and its

CELLTRION HEALTHCARE.In Hong Kong, the parent

company of WUXI BIOLOGICS (CAYMAN) raised HK$4.6bn (US$599m) from a sell-down and GEM-listed Viva China raised HK$1.5bn from a block in Chinese sportswear company LI NING.

The deals highlight the depth of liquidity available for follow-ons in the region but bankers generally believe that the market has yet to reopen fully and see little demand for growth capital.

“I think the vast majority will

be primary issuance, which is balance sheet-related. The secondary sales will tend to be those that are in distress either because of margin against the security, or the entity at stake is in need of cash,” said Aaron Arth,

Asia ex-Japan at Goldman Sachs.

SUPERMARKET SALE

Wesfarmers was certainly looking to shore up its balance sheet at a

conglomerate launched the Coles sale after Monday’s close, riding on a 6.9% jump in the stock and a 7% surge in the local S&P ASX 200 index. It had already raised A$1.05bn from a sell-down in Coles on February 18, but had made a point at the time of keeping a stake of more than 10% to maintain the right to nominate a director.

Rob Scott, Wesfarmers managing director, said the

events of the past few weeks had highlighted the importance of

“This divestment crystallises an attractive return for shareholders since the demerger and further enhances Wesfarmers’ strong balance-sheet position,” he said.

Coles shares have fared better than the broader market as stockpiling of necessities and increased consumption of food at home underscore the defensive quality of supermarket operators.

The stock fell 4.3% from February 1 to March 31 while the S&P ASX 200 index plunged 28% over the same period.

Sell-downs in Li Ning, WuXi Biologics and the Celltrion duo were similar stories as investors sought defensive stocks.

“The blocks were all from the healthcare and retail sectors. Investors believe these stocks can weather the storm better while shareholders are grabbing

Coffee spill hits ECM pipeline Equities/Emerging Markets Luckin Coffee scandal adds to US mistrust of Chinese issuers

BY FIONA LAU, CAROL CHAN

A brewing accounting scandal at China’s LUCKIN COFFEE has emerged as the latest threat to the pipeline of Chinese listings in an increasingly hostile US market.

Luckin, listed on the Nasdaq less than a year ago, lost 80% of its value on Thursday after it said an internal probe found that its

employees had fabricated sales totalling Rmb2.2bn (US$310m)

Seen as China’s answer to Starbucks, Luckin’s technology-enabled model and rapid growth had made it an investor favourite since its US$645m IPO in May 2019, with the stock surging from a US$17 IPO price to an all-time high of US$51.38 on January 17.

The accounting scandal, however, will put other Chinese issuers under suspicion at a time

of heightened tensions between the US and China. US President

the idea of banning Chinese companies from the US stock market, part of a long-running dispute over audit accountability.

“This reminds me a little of what went on after a series of accounting and corporate governance scandals of US-listed Chinese companies in 2011. Chinese IPO activity in the US almost came to a halt in the next two years,” said one ECM banker.

Share prices of US-listed Chinese companies tumbled in 2011 amid concerns about the sustainability of China’s growth and allegations of accounting fraud at overseas-listed Chinese companies. Sino-Forest, for example, collapsed in 2011 after short seller Muddy Waters accused the company of being a Ponzi scheme.

“Trump won’t let it go. It’s

another opportunity to attack China,” said another banker. “China-US listings are already slow amid the coronavirus outbreak. This will unavoidably dent

companies may now consider listing in Hong Kong instead.”

Planned sizeable China-to-US listings this year include the

DADA

GROUP and the US$500m–$1bn offering each from budget store chain MINISO

maker ROYOLE and online audio platform XIMALAYA FM.

In January, Luckin and its shareholders raised US$580m from a follow-on and the company also raised US$460m from a convertible bond. Credit Suisse, Morgan Stanley, CICC and Haitong International arranged both the 2019 IPO and the January fundraising.

At Thursday’s close of US$6.40, investors who bought at the January placement price of US$42 a share are down 85%.

“Any time you have fraud you just have to get out,” one New York-based ECM banker said. “The analysts have to put their estimates on hold and the underwriters will have a lawsuit on their hands.”

CAR CRASH

CAR INC‘s shares and bonds slumped on Friday after Luckin’s announcement. CAR and Luckin are separate companies in entirely different industries, but the market sees the two as related given that both are controlled by Lu Zhengyao. CAR operates a car rentals and used car sales business.

Its Hong Kong-listed shares were suspended at 10:14am Hong Kong time pending a

after they plunged as much as




Banks stuck with 21% of AMS

Equities Rights issue was doomed from the start

BY ROBERT VENES

Banks now own more than 21% of AMS after the Austrian sensor maker’s SFr1.75bn (US$1.8bn)

acquisition of Germany’s Osram

Once shareholder take-up of

a rump offering of 72.4m shares was launched after the close but there was little chance of success. Pricing of a rump cannot be set below the rights issue price – SFr9.20 in this instance – and that meant attempting a SFr666m placing with a maximum discount of just 3.56% to that day’s close.

In total, 15m shares were placed at SFr9.20, leaving the underwriters with 30% of the fundraising, equating to 21% of the whole company. The banks will pay SFr528m for 57.39m shares.

Although all eight syndicate banks are on the hook, the underwriting varies dramatically. Joint global coordinators HSBC and UBS own more than 70% of the stick position, with underwriting splits of 34.3% and 36.8%, respectively.

The balance is spread across Bank of America with 8.5%, Commerzbank with 6.5%, Morgan Stanley with 4.5%, Citigroup 3.8%, Erste Group 3% and Deutsche Bank 2.5%. Erste is lead manager, while the rest of the banks are bookrunners.

The outcome was likely within days of setting terms for the capital increase. On March 11, pricing was set at SFr9.20, a 35% discount to the theoretical ex-rights price, ie, where shares should be trading post-rights issue, of SFr14.15.

Typically, a 35% discount to TERP would provide enough headroom and the terms were set after equity markets had collapsed in response to the coronavirus pandemic. By the

time pricing was set, the stock had already fallen by around half in a month.

Shares fell below the issue price on just the third day of subscription, by which time it was too late to restructure.

CAREFUL COORDINATION

The banks’ stick represents more than 16 days’ trading (based on the previous issued share capital).

HSBC and UBS have entered into a coordination agreement to secure an orderly sell-down of their positions. A banker involved in the process said it would be disposed of over time, with an accelerated sale far less likely. Another banker involved said he expected some of the other banks to join the coordination agreement, though those with the smallest positions are likely to operate independently.

An added complication is that

failed rights issue in Europe since criminal cartel charges

Australia over how they managed a stick following a capital increase by ANZ.

In that case, which is ongoing, the underwriters followed standard market practice by coordinating selling to minimise damage to ANZ’s share price.

“There is a lot more done to make sure we understand what is required of us,” said one of the bankers. “A lot of thought goes into it.”

UNWANTED

With markets so volatile, long underwriting periods will need to be managed carefully in order to avoid more cases where banks end up as unwanted shareholders. Some country regulators are making it easier to raise money on an accelerated basis without having to offer

refusal, which is slow.

the chance to cash in before the shares go lower again,” said a syndicate banker.

Before its deal was launched, Celltrion’s stock was up 9.4% this year after rallying 30% since March 23, when it said it was accelerating development of an antiviral treatment for Covid-19.

LIFE OR DEATH

Some companies, on the other hand, need cash to survive. Webjet, whose business was severely hit by travel restrictions worldwide, raised funds to cover operational costs and capital spending until year-end. Its shares have plummeted 71% this year as of last Thursday.

Alongside the fundraising,

dividend, slashing its workforce and cutting board and executive pay by 60%.

IDP Education is also using the funds raised to strengthen

English-language testing – has been affected by travel restrictions and government-mandated lockdowns

worldwide, including in India, IDP’s largest testing market.

A weak Australian dollar helped the transactions as foreign investors looked for deeply discounted assets. The Australian dollar crashed below

this month, touching a 17-year low of US$0.55 on March 19. After rebounding, it dipped below US$0.61 again last week.

Capital, for example, bought a 6% stake via Webjet’s placement. It has also committed to sub-underwrite the retail tranche of the entitlement offer, equal to a further 10% of the company.

“At turbulent times the market can be opportunistic, not only for issuers but also investors. Investors look for wider discounts to the already severely hit share prices, but they should be ready to absorb the risks as it is not the same situation as before Covid-19,” said an ECM banker. “Whichever way you approach the market, both parties have to act very quickly as the window could be really short.”

72% in morning trading. Its shares last traded at HK$1.96 (US$0.25), down 54% from Thursday’s close, while the cash price of its two outstanding dollar bonds fell more than 25 points. Luckin, on the other hand, does not have any outstanding straight bonds.

CAR’s 6.00% bonds due 2021 slumped about 29 points, and were last quoted at 47/52, while its 8.875% bonds due 2022 were quoted at 33/38, down around 27 points, according to a trader.

with real money selling and some hedge funds bargain hunting.

Luckin suspended COO Jian Liu and employees reporting to him following initial recommendations from a special committee, which was appointed to investigate issues

31 2019.Earlier this year, short-seller

Muddy Waters shorted the stock, citing a report alleging

and operating numbers from the third quarter of 2019.

Moreover, Liu held positions at CAR from 2008 to 2015 and at

2018 before he joined Luckin, while E&Y is the auditor for both Luckin and CAR, according to a note from Deutsche Bank.

According to Deutsche Bank,

had Rmb2.7bn–Rmb2.8bn of cash on hand at end-March 2020, which can be used to repay Panda bonds puttable in April. Plus, management said that CAR maintains a good relationship with banks and received a Rmb500m new facility last week.

Deutsche Bank said it does not see CAR as a high default risk in 2020 if its “balance sheet is real”.

A prolonged trading suspension could trigger an event of default on CAR’s syndicated loans. CAR has two US$100m facilities outstanding, both three-year loans arranged by Bank of China (Hong Kong) in June 2018 and in November 2019, according



Top news

Boom time coming as SSA borrowers ramp up plans for ‘Covid-19 bonds’

People & Markets Careful structuring needed to meet criteria and avoid confusion

BY TESSA WALSH

The rush to issue Covid-19 social bonds is bringing new business to capital markets as SSA issuers scramble to deploy bigger budgets, but the deals will have to be carefully structured and monitored to avoid concerns about “social washing”.

The rapid rise of social bonds related to the coronavirus pandemic is expected to cause a rebalancing with the larger ESG bond market, but the explosion of different types of deals to

ICMA to issue guidance last week on the types of deals that qualify.

“In the last few weeks, we’re seeing a rebalancing between green and social,” said Agnes Gourc, co-head of sustainable

“The climate emergency is still there, but we’ve got a new emergency now.”

Last week the EUROPEAN

INVESTMENT BANK launched a €1bn sustainability awareness bond that extends eligibility to areas

pandemic.That followed the agency’s

announcement that it will mobilise up to €40bn to support European companies, health interventions, and the economy

infrastructure improvements and equipment needed in the health sector.

The COUNCIL OF EUROPE

DEVELOPMENT BANK also launched a “Covid-19 response social inclusion bond” and NEDERLANDSE

WATERSCHAPSBANK raised a €2bn social housing bond, following a “response bond” from the NORDIC INVESTMENT BANK that is the

A wide range of social bonds is being assembled at high speed as banks and issuers adapt the sustainable “use of proceeds” format to attract investors keen to contribute but who need clarity and accountability over the spending.

increasing attention of investors to environmental and social aspects in the crisis we’re all experiencing,” said Aldo Romani, head of sustainability funding at the EIB. “Investors want to engage and are looking for instruments to do something meaningful.”

NEW BUSINESS

bonds into healthcare, employment and social security as SSA issuers deploy bigger budgets is extending capital markets issues into new areas that have not traditionally been

is bringing in new mandates and business for banks.

Smaller supranationals could see budgets nearly doubling as a result of the crisis, bankers say, and the budgets of larger supranationals could increase

by billions of euros as governments struggle to contain the crisis.

“All of the recent social bonds are linked to new funds being deployed by SSA issuers,” Gourc said. “For the majority, it’s either an expansion of their mandate or an increase in funds that they need to deploy.”

The explosion in social bonds shows that the format can be quickly adapted as SSA issuers try to clarify the amount of additional funding. The NIB and EIB had a matter of days to adjust their frameworks, bankers said.

KEY PILLARS

The time-consuming work involved in constructing frameworks led ICMA to say that they were not necessary, but deals claiming to be social bonds need to observe four key pillars: identifying eligible projects; evaluating and selecting projects; managing proceeds; and reporting on impact.

“We’re encouraging issuers to adapt these instruments to the crisis, while giving guidance on preserving their integrity,” said Nicholas Pfaff, a managing director at ICMA.

The crisis forced the EIB to accelerate discussions to bring its sustainability awareness bond to market while considering other areas of investment and working out how to quickly develop

eligibility criteria so that the use of emergency funds are clearly visible to ESG investors.

“We would not have seen the kind of acceleration and extension of the discussion without the crisis,” Romani said.

CORPORATES LOOKING

Covid-19 social bonds have been issued by supranationals to date, but corporates are also looking at the format, particularly in the healthcare space.

“The crisis has highlighted the need to create clarity around objectives and what we want to achieve and to push banks and technical and capital markets experts to develop this clarity,” Romani said.

NIB’s euro issue showed a good distribution to asset managers because of the ESG angle, bankers said, and set a benchmark for other SSA issuers.

“All the other supranationals are also looking at euros; as borrowing requirements increase, they will need access to many different markets,” said Jamie Stirling, global head of SSA DCM at BNP Paribas.

“We will see more developments in social bonds as

with new frameworks and use of proceeds, and we will see an increase in the number of investors willing to look at Covid-19 or response bonds,” he said.

Reach the people who matterFor more information on the various advertising and sponsorship opportunities available within IFR, email: [email protected]


FRONT STORY EURO IG CORPORATES

Corporates run riot and smash record Weekly funding record set as issuers strengthen balance sheets

Broader variety of sectors and tenors on offer

Europe’s corporates went on an unprecedented borrowing spree last week, breaking the weekly issuance record in the process.

More than €39.5bn of bonds were priced in the euro investment-grade market, easily surpassing the previous record of €24.05bn

The euro market is following the lead of

supply as issuance records are being smashed on both sides of the Atlantic.

Normally, this volume of deals would be associated with a bull market, but the

more the fact that corporates are building cash buffers while they can before the market takes another turn for the worse because of the novel coronavirus.

“For a lot of corporates, it is a question of making sure they can weather whatever the next few months bring,” said Peter Charles, head of syndicate, EMEA, at Citigroup.

The increased presence of the ECB in the market has given issuers a high degree of

many are still paying relatively big concessions.Deals that are not ECB-eligible are

sometimes a bit more of a challenge. But investors have absorbed everything that has been thrown at them.

“They’re very well engaged on the investor side. Timelines are being stretched marginally but single-day execution is quite straightforward,” said Charles. “And the breadth of investor involvement is extremely good. This is not 20-odd guys doing club deals.”

The repricing of the market has encouraged a number of different types of investors to participate, including absolute return funds,

and bank treasuries more used to buying peripheral eurozone sovereign debt.

But real money investors - insurers and asset managers - continue to lead the way on transactions. What was encouraging last week was that issuers started to test interest across the maturity curve.

Investors have shown keen demand for longer-dated paper in recent weeks to lock in the high spreads being offered by corporate borrowers, leaving the short end undersupplied.

The short end of curves had been dislocated more by the sell-off, as investors were desperate to get their hands on cash.

But not all issuers have wanted to respond to increased interest in longer assets.

“Issuers are aware of the better bid in the long end but are not ready to pay up at this stage and hence go for a shorter maturity,” said a lead on one of Thursday’s deal.

Bankers are now seeing a push from the ECB to remedy the pressure on shorter-dated funding.

“We’ve seen central banks act on the short end of the curve recently to ease the stress a bit,” said a syndicate banker.

One issuer to test demand for shorter maturities was HEIDELBERGCEMENT (Baa3/BBB-/

its €750m 7.50% April 2020.However, with curves steepening and

buyers seeing more value at the long end, orders for the October 2024 note were relatively muted. Books peaked above

taking €650m at a spread of 285bp.Additionally the company’s ratings and

sector likely weighed on investor interest.“Cyclical and BBB-; not the most

straightforward one,” said the second banker. “But, in this market, as long as you pay the appropriate NIP, deals can be done.”

The new issue premium at initial guidance was around 75bp-80bp. By launch it was 50bp-55bp.

In a similar vein, BRITISH AMERICAN TOBACCO (Baa2/BBB+) saw demand for its October 2024s and April 2028s skewed towards the longer

tranche, but leads were still able to cut the spread by 35bp on each tranche to land at 275bp and 335bp, respectively, each at €850m.

Although shorter-dated bonds are receiving more support in the primary market, deals of less than four years are still a relative rarity, and the last corporate euro trade to feature a two-year term came in February.

“[We’ve received] quite a few comments from investors saying that, three-years and inside, nobody really knows the real secondary levels, and it is the part of the market that has been struggling the most,”

the longish end of the curve. “The credit market remains dislocated, curves

analysis, I would advocate for medium or long-dated issuances as the demand is there,” said Ismael Lecanu, senior credit portfolio manager at AXA Investment Managers.

Another notable development last week was the greater variety of issuers in the market, including from more vulnerable sectors. All got done - even deals for the likes of German residential property owner GRAND

CITY and French shopping centre owner UNIBAIL-RODAMCO-WESTFIELD.

possible a couple of weeks ago were blowouts.AIRBUS, for example, received more than

trancher.The air travel industry is one of the most

vulnerable to the developing crisis, with a number of airlines struggling with their businesses.

But the planemaker cast aside any doubts about its appeal to investors.

markets at Credit Agricole, one of the global coordinators, said that the market volatility is a short-term shock that Airbus should be

how pricing has changed in recent weeks.“Airbus is a strongly rated issuer with a

strong market position and strong

“They are pragmatic and are being realistic. This is a top-tier issuer and you can see the market buys the story.Sudip Roy, Ed Clark, Robert Hogg, Alex Chambers


BONDS SSAR 29 Corporates 38 FIG 44 Covered Bonds 45 High-Yield 46 Structured Finance 48

€bn

A NEW BARFIVE BUSIEST EURO IG CORPORATE

ISSUANCE WEEKS

Source: Refinitiv

0

5

10

15

20

25

30

35

40

22 Mar 20 -

28 Mar 20

11 Mar 18 -

17 Mar 18

13 Mar 16 -

19 Mar 16

1 Sep 19 -

7 Sep 19

30 Mar 20 -

3 Apr 20

6 IFR Bonds 2327 p25-65.indd 25 03/04/2020 20:28:56


ALL INTERNATIONAL BONDS (1/1/2020–31/3/2020) COUNTRY VS TYPE OF INSTRUMENT

All issues Straights FRNs Convertibles

No of issues Amount US$(m) No of issues Amount US$(m) No of issues Amount US$(m) No of issues Amount US$(m)

Germany 176 121,342 151 110,608 23 8,536 2 2,199

France 96 88,498 87 82,291 8 5,760 1 447

United Kingdom 99 60,657 67 39,970 32 20,687 — —

Spain 38 53,662 33 52,380 5 1,282 — —

Luxembourg 61 49,674 55 44,997 6 4,677 — —

Italy 30 35,184 26 33,399 4 1,785 — —

Netherlands 36 25,929 32 23,837 3 1,953 1 139

Austria 24 22,214 23 22,159 1 55 — —

Belgium 11 16,471 11 16,471 — — — —

Switzerland 11 12,382 9 11,792 1 408 1 182

Sweden 31 11,573 22 10,620 9 953 — —

Norway 21 10,589 15 9,435 6 1,154 — —

Finland 15 9,294 12 9,073 3 221 — —

Ireland 5 7,405 5 7,405 — — — —

Turkey 5 5,895 5 5,895 — — — —

Russian Federation 7 5,671 6 4,421 — — 1 1,250

Portugal 2 5,263 2 5,263 — — — —

Denmark 10 4,976 7 3,415 3 1,561 — —

Greece 5 4,202 5 4,202 — — — —

Romania 1 3,315 1 3,315 — — — —

Slovenia 3 2,998 3 2,998 — — — —

Cyprus 4 2,879 4 2,879 — — — —

Poland 1 1,667 1 1,667 — — — —

Ukraine 1 1,386 1 1,386 — — — —

Czech Republic 4 707 4 707 — — — —

Latvia 1 605 1 605 — — — —

Azerbaijan 1 500 1 500 — — — —

Iceland 2 426 2 426 — — — —

Jersey 1 333 1 333 — — — —

Liechtenstein 1 328 1 328 — — — —

Armenia 1 300 1 300 — — — —

Kazakhstan 1 164 1 164 — — — —

Europe 705 566,488 595 513,241 104 49,032 6 4,216

United States 399 417,325 328 359,295 54 50,634 17 7,396

Canada 42 39,880 36 37,380 4 2,443 2 58

North America 441 457,205 364 396,675 58 53,077 19 7,453

Australia 27 20,661 20 14,728 7 5,934 — —

Australasia 27 20,661 20 14,728 7 5,934 — —

Mexico 9 13,484 9 13,484 — — — —

Brazil 11 10,502 11 10,502 — — — —

Chile 12 7,339 12 7,339 — — — —

Colombia 5 3,387 5 3,387 — — — —

Cayman Islands 7 3,231 7 3,231 — — — —

Panama 1 2,500 1 2,500 — — — —

Dominican Republic 1 2,475 1 2,475 — — — —

Bahamas 3 1,018 3 1,018 — — — —

Bermuda 1 1,000 1 1,000 — — — —

Paraguay 1 519 1 519 — — — —

Peru 1 346 1 346 — — — —

British Virgin Islands (UK) 1 252 1 252 — — — —

Jamaica 1 225 1 225 — — — —

Ecuador 1 213 1 213 — — — —

Bolivia 1 99 1 99 — — — —

Latin America/Caribbean 56 46,590 56 46,590 — — — —

Saudi Arabia 6 9,357 5 9,333 1 24 — —

Qatar 13 4,988 10 2,088 3 2,900 — —

Israel 2 3,696 2 3,696 — — — —

6 IFR Bonds 2327 p25-65.indd 26 03/04/2020 20:28:56


BONDS

ALL INTERNATIONAL BONDS (1/1/2020–31/3/2020) COUNTRY VS TYPE OF INSTRUMENT CONTINUED



United Arab Emirates 13 3,261 9 2,376 4 885 — —

Bahrain 4 1,257 3 820 1 436 — —

Middle East 38 22,558 29 18,313 9 4,245 — —

China 102 40,402 90 34,736 9 4,197 3 1,469

Hong Kong 44 18,996 40 16,039 3 1,840 1 1,116

Japan 25 18,426 18 14,460 4 3,720 3 245

India 17 10,251 15 9,051 1 200 1 1,000

Philippines 15 9,459 15 9,459 — — — —

South Korea 23 9,164 19 8,264 4 900 — —

Indonesia 12 8,473 12 8,473 — — — —

Singapore 4 1,567 4 1,567 — — — —

Malaysia 3 554 3 554 — — — —

Taiwan 2 444 1 144 — — 1 300

Thailand 1 350 1 350 — — — —

Asia-Pacific 248 118,084 218 103,097 21 10,857 9 4,130

Ivory Coast 10 3,544 10 3,544 — — — —

Ghana 1 2,979 1 2,979 — — — —

South Africa 1 1,250 1 1,250 — — — —

Gabon 1 1,000 1 1,000 — — — —

Africa 13 8,773 13 8,773 — — — —

Total 1,528 1,240,359 1,295 1,101,415 199 123,144 34 15,799.4Source: Refinitiv

ALL INTERNATIONAL BONDS (1/1/2020–31/3/2020) CURRENCY VS TYPE OF INSTRUMENT



US Dollar 694 647,887 588 567,637 83 69,381 23 10,869

Euro 487 494,863 424 463,341 58 27,042 5 4,480

British Pound 84 64,675 55 42,432 29 22,243 — —

Swiss Franc 26 5,538 25 5,356 — — 1 182

Norwegian Krone 35 5,499 22 4,294 13 1,205 — —

Australian Dollar 48 5,118 45 3,813 3 1,305 — —

Chinese Renminbi 24 4,391 24 4,391 — — — —

Japanese Yen 11 2,032 8 1,787 — — 3 245

Swedish Krona 23 1,948 14 1,130 9 818 — —

Canadian Dollar 6 1,844 2 762 2 1,059 2 24

Hong Kong Dollar 19 1,803 19 1,803 — — — —

Russian Rouble 12 957 12 957 — — — —

Indian Rupee 9 607 9 607 — — — —

New Zealand Dollar 3 600 3 600 — — — —

Singapore Dollar 4 456 4 456 — — — —

South African Rand 19 410 18 385 1 24 — —

Indonesian Rupiah 9 367 9 367 — — — —

Polish Zloty 3 351 3 351 — — — —

Danish Krone 2 291 1 224 1 67 — —

Mexican Peso 9 250 9 250 — — — —

Kazakhstan Tenge 1 164 1 164 — — — —

Macau Pacata 1 125 1 125 — — — —

Brazilian Real 4 84 4 84 — — — —

Turkish Lira 8 66 8 66 — — — —

Egyptian Pound 1 21 1 21 — — — —

Colombian Peso 1 14 1 14 — — — —

Total 1,543 1,240,359 1,310 1,101,415 199 123,144 34 15,799Source: Refinitiv

6 IFR Bonds 2327 p25-65.indd 27 03/04/2020 20:28:56


T-Mobile raises US$19bn in

long-awaited M&A bond Funding for Sprint merger finally comes to fruition

After nearly three years of legal wrangling and rumoured bond issuance, telecoms company T-MOBILE

market on Thursday to raise debt for its merger with SPRINT.

cover in full a bridge loan set up earlier in the week.

While T-Mobile is a high-yield company with Ba3/BB/BB+ senior unsecured ratings, Thursday’s deal carried investment-grade ratings of Baa3/BBB–/BBB, thanks to the bonds senior secured status.

erasing doubts over whether T-Mobile could

at a time when coronavirus-driven volatility continues to weigh on sentiment.

Indeed, the company played it safe on Wednesday’s investor calls, talking a smaller

thought it might even have to go to the euro market to top up what it lacked in dollar funding.

Despite such doubts, record volumes in the primary market have proved that investors still have plenty of money to put to work even as the asset class suffers massive

Earlier this week, tech company ORACLE

credit offered a sizeable 30bp new-issue concession to take out that size.

T-Mobile, on the other hand, started initial price talk tighter than some investors had expected and tightened by 37.5bp–50.5bp at launch, causing an inverted spread at the long end.

Bookrunners Barclays and Deutsche Bank

it would come at initial price talk of 400bp and then price in the mid-300s, so initial talk

expectations,” one investor said. “In general, we think their pricing is

ambitious given the amount of execution risk for the transaction,” said another.

RATINGS

On the one hand, it makes sense that demand would be strong for T-Mobile.

Money has long been set aside for this highly telegraphed deal and telecoms names are considered exceptionally well positioned to navigate the economic downturn caused by the coronavirus outbreak.

Cruise line Carnival (rated Baa2/BBB–) is in a severely distressed sector, but still

News), so a telecoms name with investment-grade aspirations should have no problem, said David Knutson, head of credit research

noted in a report. On the other hand, the high-yield

company is issuing into a much weaker market than it intended nearly three years ago and has a lot to prove as the two entities combine.

one-notch downgrades on the completion of the merger, noting that leverage would rise to the four times debt-to-Ebitda level this year from around 2.6 times.

“Cost synergies will be offset by near-term integration expense and higher churn on the

“These factors will likely constrain leverage improvement over the next year.”

PEER COMPARISON

but tight to Charter Communications’ secured curve, according to MarketAxess data.

Baa2/BBB/A–) were seen trading around 292bp over Treasuries last week – 33bp tighter than where T-Mobile landed its new 30-year bond.

However, a more apt comparison was the more similarly rated Charter (Ba2/BB+) secured curve, which most investors accurately predicted T-Mobile would price through.

Charter’s 4.8% 2050s were trading around

priced. However, secondary movement on Thursday had the note tightening more.William Hoffman

WEEK IN NUMBERS

€57bn THE ORDER BOOK THAT BELGIUM

SECURED FOR AN €8bn OCTOBER 2027

ISSUE, THE BIGGEST EVER IN THE SSA

SECTOR EXCLUDING EMERGING MARKETS

US$256.47bn THE AMOUNT OF ISSUANCE IN THE

US HIGH-GRADE MARKET, COMPRISING

CORPORATES AND FINANCIALS, IN

MARCH. THIS IS A NEW MONTHLY RECORD

US$485.945bn QUARTERLY ISSUANCE IN THE US

HIGH-GRADE MARKET, WHICH ALSO

REACHED A NEW HIGH, OVERTAKING THE

US$399.031bn SET FROM Q1 2017

€92.8bn THE AMOUNT OF BBB– RATED EURO

DEBT IN THE AUTO SECTOR ALONE,

ACCORDING TO BANK OF AMERICA, WHICH

IS ALMOST 30% OF THE ENTIRE HIGH-

YIELD UNIVERSE

€1.285bn THE AMOUNT OF CORPORATE BONDS

THE ECB BOUGHT (NET) IN THE WEEK

TO MARCH 27 AS PART OF ITS CSPP

COMPARED WITH €2.079bn THE WEEK

EARLIER

In total, it has bought €18.834bn

0

10

20

30

40

50

60

SpainApr 2029

SpainJan 2030

BelgiumOct 2027

€bn

0

100

200

300

400

500

Q2 2015Q1 2017Q1 2020

US$bn

6 IFR Bonds 2327 p25-65.indd 28 03/04/2020 20:28:58

SSAR

US DOLLARS

L-BANK SCORES BIG WITH SECOND DOLLAR ATTEMPT

Landeskreditbank Baden-Wuerttemberg – Foerderbank shrugged off its failure to complete an innovative form of auction last month to attract a bumper order book and

the federal state-guaranteed lender mandated Barclays, Bank of Montreal, JP Morgan and RBC to lead the new deal. BMO and JPM were lead managers for the cancelled transaction.

But the way the two transactions unfolded could not have been more different with L-Bank receiving more than

“They’re back from the dead!” a syndicate banker away said. “While there might have been some bitter investors after their recent attempt, there’s been so little supply in dollars that investors are piling into deals.”

Earlier that week, the Asian Development

largest bond ever, on the back of more than

That deal emerged after transactions

and the African Development Bank helped set primary pricing reference points.

“When L-Bank tried to do their deal in March, there was a lot of humming and hawing over whether you should market a

banker said.

the books have shot up in size as the investor base has continued to grow.”

The market that had been dominated by bank treasuries has also seen central banks

return in size, lured by the attractive spreads

“You’re always going to get a far bigger breadth of investors at Treasuries plus 50-something than you are at Treasuries

pricing in January,” the second banker said.Leads started marketing at the 35bp area

over mid-swaps, but revised the level 5bp tighter during marketing, meaning the

trade will end up pricing at the wide end of the 20bp–30bp range suggested in the March trade. At 30bp over, the spread was equivalent to 52.4bp over Treasuries.

JUICY TREASURY SPREADS LURE CENTRAL BANKS TO SSA DOLLARS

market were rewarded with exceptional


BONDS SSAR

EUROPEAN SOVEREIGN BOND AUCTION RESULTS WEEK ENDING APRIL 3 2020

Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover

Mar 31 2020 Italy (FRN) €750m 0.107 Dec 15 2023 0.660 2.04

Mar 31 2020 Italy €2.75bn 0.350 Feb 1 2025 0.800 1.43

Mar 31 2020 Italy €1.5bn 1.350 Apr 1 2030 1.440 1.53

Mar 31 2020 Italy €3.5bn 0.950 Aug 1 2030 1.480 1.33

Apr 1 2020 Germany €2.719bn 0.000 Apr 11 2025 -0.660 1.13

Apr 2 2020 Spain €2.339bn 0.000 Apr 30 2023 0.071 1.58

Apr 2 2020 Spain €1.149bn 0.000 Jan 31 2025 0.238 2.37

Apr 2 2020 Spain €1.177bn 0.500 Apr 30 2030 0.694 2.01

Apr 2 2020 Spain €1.322bn 1.000 Oct 31 2050 1.565 1.17

Apr 2 2020 France €4.928bn 0.750 Nov 25 2028 -0.040 1.48

Apr 2 2020 France €2.562bn 0.000 Nov 25 2029 0.040 2.67

Apr 2 2020 France €2bn 1.750 Jun 25 2039 0.510 1.90

Apr 2 2020 UK £2bn 1.250 Oct 22 2041 0.800 2.56

Source: IFR

ALL BONDS IN EUROS BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share

bank or group issues €(m) (%)

Including Euro-preferreds. Excluding equity-related debt,

US Global ABS/MBS.

Source: Refinitiv SDC code: N1

1 JP Morgan 109 37,536.37 8.4

2 BNP Paribas 110 30,427.08 6.8

3 Barclays 108 28,589.40 6.4

4 HSBC 104 28,508.99 6.4

5 Credit Agricole 92 27,806.54 6.2

6 UniCredit 86 24,031.96 5.4

7 Deutsche Bank 89 23,825.03 5.3

8 SG 68 23,127.30 5.2

9 BofA Securities 72 22,108.37 5.0

10 Goldman Sachs 53 18,894.65 4.2

Total 468 445,868.37

ALL INTERNATIONAL BONDS (ALL CURRENCIES)BOOKRUNNERS: 1/1/2020–31/3/2020


bank or group issues US$(m) (%)

Note: All deals submitted as of 2pm GMT as of Mar 31 2020

Including Euro, foreign, global issues. Excluding equity-related debt,

US Global ABS/MBS.

Source: Refinitiv SDC code: J1

1 JP Morgan 411 116,888.23 9.5


3 Citigroup 293 83,392.27 6.8

4 Barclays 281 78,630.20 6.4

5 Goldman Sachs 211 68,062.09 5.5

6 HSBC 261 58,133.19 4.7

7 Deutsche Bank 215 52,755.53 4.3

8 Morgan Stanley 149 50,929.88 4.1

9 BNP Paribas 180 49,399.04 4.0

10 Credit Agricole 161 40,845.28 3.3

Total 1,497 1,234,026.91

ALL INTERNATIONAL US$ BONDSBOOKRUNNERS: 1/1/2020–31/3/2020




ncluding Euro, foreign and global issues. Excluding equity-related debt,

US Global ABS/MBS.

Source: Refinitiv SDC code: O1

1 JP Morgan 244 69,663.78 10.8

2 Citigroup 215 59,866.94 9.3


4 Goldman Sachs 151 44,730.68 7.0

5 Morgan Stanley 112 40,244.80 6.3

6 Barclays 143 38,546.87 6.0

7 Wells Fargo 110 30,021.29 4.7

8 Deutsche Bank 114 22,157.61 3.4

9 RBC 80 19,216.96 3.0

10 HSBC 105 18,974.42 3.0

Total 677 642,708.75

ALL US DOLLAR FIXED-RATE GLOBALS BOOKRUNNERS: 1/1/2020–31/3/2020




Excluding equity-related debt, ABS/MBS.

Source: Refinitiv SDC code: O5

1 JP Morgan 88 34,995.65 12.9


3 Citigroup 77 32,192.43 11.9

4 Goldman Sachs 50 23,164.15 8.6

5 Morgan Stanley 36 17,501.07 6.5

6 Wells Fargo 49 14,644.39 5.4

7 Barclays 38 14,027.71 5.2

8 Deutsche Bank 28 9,524.27 3.5

9 TD Securities 24 8,790.01 3.2

10 RBC 28 8,498.45 3.1

Total 153 270,459.85

6 IFR Bonds 2327 p25-65.indd 29 03/04/2020 20:28:58

demand last week as central banks, drawn by the attractive spreads over Treasuries, threw their weight behind new issues.

bankers’ biggest laments when it came to dollar issuance had been the razor-thin spreads at which new issues were coming over Treasuries, curtailing some of the investor appetite for new issues.

However, this has changed in recent weeks, helped by the widening in swap spreads. Three-year swap spreads have widened to

This enabled the ASIAN DEVELOPMENT BANK and SWEDISH EXPORT CREDIT to attract some

year offerings, for instance, while books for CPPIB Capital, L-Bank (see separate stories)

well oversubscribed.

central bank buying as spreads against Treasuries have widened recently. An ADB lead manager noted “the dramatic uptick in

March 24 as a “great step forward” that “gave

2022 bond stood out.Lead managers Goldman Sachs, Morgan

Stanley and RBC uncovered more than

Global – the supranational’s largest ever bond issue.

The jumbo marked the Triple A issuer’s

Underscoring the drastic pricing shift

new issue at mid-swaps plus 20bp –

Another was also positive but regarded pricing as underwhelming for the Triple A name. “What a trade, but dirt cheap for a credit like that,” he said.

“I would have been 20bp to start, but good for them to get it out of the door and the funding on board. As someone said, do a deal today and you look like a smart guy tomorrow – funding requirements are only going to go up.”

SEK GOES FOR SIZE

Also a record deal size for the issuer,

investors.Bank of Montreal, Deutsche Bank, JP Morgan

and Toronto-Dominion were the agency’s lead managers. They priced the deal at 40bp over mid-swaps.

said a lead. “It was successful and we had a nice stable backdrop in terms of rates, swap spreads, underlying govvies and equities.”

Pricing was challenging, the lead said. “It was a tough one to call on fair value. The outstanding March 2023s were plus 40bp, and BNGs, KBNs the same level or high 30s. If it were to price at this minute, it would be in the 50s.”

He reported “a good geographical and type of investor spread” for the deal.


ALL SUPRANATIONAL BONDS IN EUROS BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues €(m) (%)

Excluding ABS/MBS.


1 Goldman Sachs 7 4,685.00 14.2

2 JP Morgan 7 4,089.57 12.4

3 UniCredit 4 3,252.91 9.9

4 Deutsche Bank 6 3,003.72 9.1


6 HSBC 4 2,519.96 7.7


8 BNP Paribas 5 2,287.01 6.9

9 SG 5 2,281.46 6.9

10 Barclays 3 1,562.25 4.7

Total 20 32,926.17

ALL AGENCY BONDS IN EUROSBOOKRUNNERS: 1/1/2020–31/3/2020


Excluding equity-related debt. Including publicly owned institutions.


1 JP Morgan 12 5,847.18 13.6

2 HSBC 16 5,289.64 12.3

3 Barclays 12 4,356.25 10.1




7 Commerzbank 9 2,686.73 6.2

8 Natixis 9 2,184.71 5.1

9 BNP Paribas 8 2,175.54 5.1

10 SG 6 1,818.79 4.2

Total 46 43,071.20

ALL INTERNATIONAL GREEN BONDSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues US$(m) (%)

Excludes social bonds and mixed use of proceeds.

Source: Refinitiv SDC code: JG1

1 Barclays 13 2,715.44 8.0

2 JP Morgan 13 2,615.38 7.7

3 BNP Paribas 12 2,548.82 7.5


5 SG 7 2,152.00 6.4

6 Santander 9 1,816.89 5.4


8 HSBC 14 1,521.79 4.5


10 Citigroup 8 1,201.42 3.5

Total 61 33,884.39

Investors rain orders on Belgium record-breaker

SSAR Largest ever book for largest ever syndication

Investors rallied behind the latest sovereign

bond to finance a national coronavirus response,

amassing a record €57bn-plus peak of demand

for a new October 2027 issue from BELGIUM.

The €8bn syndicated OLO forms one element

of the Belgian Debt Agency’s four-point plan “[in]

response to the anticipated increase in funding

needs caused by the Covid-19 crisis”.

Belgium’s order book exceeded the non-EM

SSA market demand record set by an EU peer

earlier this year. In January, Spain attracted more

than €53bn for a new 10-year bond.

Spain also inaugurated the recent sovereign

push for coronavirus financing in international

capital markets, with a seven-year. The kingdom’s

issue drew more than €36bn of demand.

In addition, last week, Austria saw €30bn and

€13bn of respective interest for its three-years

and 31-years.

“We feel the deal went very well – actually better

than we hoped for, given the still uncertain market

backdrop” said Maric Post, director treasury and

capital markets at the Belgian Debt Agency.

“It shows that the Pandemic Emergency

Purchase Programme has managed to start

calming markets down, and that – despite

challenging circumstances – investors are

definitely there and ready to engage in primary

transactions.”

RECORD-BREAKER

Despite its new senior borrowing team under Post

only being in place since the retirement of Anne

Leclercq at the end of July, Belgium surpassed its

fellow sovereigns and completed its largest ever

syndication.

“The team has made a huge step forward in

pricing power going into this period of increased

borrowing. There is no doubt after this fantastic

result that they can finance themselves and they

will get better pricing tension,” said one lead

manager.

6 IFR Bonds 2327 p25-65.indd 30 03/04/2020 20:28:58

“HUGE RESULT”And while a lot of European issuers have so far stayed on the sidelines because of the volatile cross-currency swap market, there is huge appetite for those willing to tap the currency.

This was obvious in the case of FMS

WERTMANAGEMENT, with interest in excess of

marketing from initial price thoughts of mid-swaps plus 25bp. This put the sovereign-guaranteed credit at the same launch spread as fellow Triple A issuer ADB a day earlier.

Lead managers were Barclays, Bank of America, Citigroup and TD.

“It’s a huge result; we’re pleased for them,” said one lead. “They’re not the most frequent visitor to the market these days, so you might have expected a bit more price discovery or premium for re-entry. But that wasn’t the case.”

are possible in this product”, the arrival of

marked a broadening of the issuer base.ADB and other supranational deals were

boosted by orders from central banks of some of the issuers’ member states,

strong central bank participation, the lead reported.

EUROS

SOCIAL BONDS TAKE CENTRE STAGE IN VIRUS RESPONSE

The EUROPEAN INVESTMENT BANK and COUNCIL OF

EUROPE DEVELOPMENT BANK drew strong orders for their coronavirus response transactions on Thursday despite almost going head-to-head, as investors continued to take down new supply with ease.

As Europe grapples with the best way to tackle the economic fallout from the novel

sector entities have wasted no time in getting on with funding the various initiatives already underway.

“All these issues are very topical,” a DCM banker said. “There is a question mark as to what Europe is going to do, how it’s going to respond to the coronavirus crisis. Will it be

should be made available as a source of

conditions attached and without stigma for

€200bn should also be made available from the EIB.

His comments followed those of Germany and the Netherlands, which put a stop to the

idea of a common debt instruments being .

While the debate continues, issuers are making the most of the strong market

“The scale of monetary support is extraordinary,” the banker said.

“Central banks have sprung into action a lot faster than they did in 2008 and we’ve

day the number of virus-related deaths is

supported.”

ROCKETINGThere was certainly plenty of support for EIB and CEDB, as well as NEDERLANDSE

WATERSCHAPSBANK, which raised a €2bn social

date. The Dutch issuer found €2.8bn of demand enabling leads Danske Bank, HSBC, Morgan Stanley and NatWest Markets to move

the start of the year, and what was a very

green bonds is now much larger, and I don’t expect this to stop,” the DCM banker said.

“Investors are interested to see these social deals come; they’ve been very supportive.”

The EIB has announced a package of measures aiming to mobilise up to €40bn to


BONDS SSAR

“With the very big numbers around – another

€100bn from Germany and €100bn from the

federal states, €75bn–€95bn from Italy, £45bn

from the UK this month alone – it may prove a

good strategy to have got in early.”

STRATEGIC SYNDICATIONPost explained the jumbo as being central to the

sovereign’s new strategy.

“Our estimates of the financial impact of the

corona crisis remain of course very uncertain,”

said Post. “So, we decided to go for a big

syndicated transaction now, flanked by an

increase in the number of OLO auctions this year

and higher issuance in our treasury bills.”

The decision on timing was related to launch

of the ECB’s PEPP.

“The whole market has of course started

anticipating heavier supply. We evaluated that the

starting days of the PEPP would be a good time

to execute this additional syndication and that

we would focus on our more traditional funding

instruments and tools afterwards,” Post said.

While Belgium usually launches new lines

through syndication, the maturity reflected

“the mix of measures taken by the Belgian

government to address the crisis – some of

which are of a more structural nature, some of a

temporary nature”, he added.

“Also, given the BDA’s work over the past years,

where we significantly increased the average

maturity of our debt portfolio, our maturity

profile now allows us to go into slightly shorter

maturities, where a deeper mix of investors is

present – as this deal clearly showed.”

Looking ahead, the kingdom is open to foreign

currency issues.

“Our EMTN programme always offers us the

possibility to issue in foreign currencies and

we will, with our primary dealers, continue to

monitor those markets for issuance opportunities

if they are more attractive than our OLO curve.”

However, Belgium currently has no intention of

additional green issuance beyond the announced

planned increase through auction of its green OLO.

ROUSING RECEPTIONLead managers for the October 2027 bond

comprised Barclays, BNP Paribas Fortis, Credit Agricole, HSBC and Morgan Stanley. Belgium’s other

primary dealers were invited into the syndicate.

Supported by the landmark order book, leads

tightened the jumbo 4bp in marketing to a

launch spread of 11bp over mid-swaps.

“We wouldn’t normally recommend tightening

4bp, but this is a recovering market with a lot of

new news and increased borrowing,” said the

lead manager.

At launch, the deal offered a new issue

concession of some 8bp-10bp. Fair value was

around 1bp–3bp over the interpolated June 2027

and June 2028 OLOs.

While some syndicate sources away from

the transaction charged that it was priced too

cheaply, the lead defended the level.

“What they’ve done was very responsible,” he

said. “They had sight of demand from all types of

investors. They were very conscious of the need to

be coming back to their important investors and

have done everything they can to ensure decent

performance.”

The order book continued to grow despite two

rounds of spread tightening, the lead added.

While official deal statistics are not yet

available, real money participation was notable.

“It does feel like the real money component is

getting more comfortable,” said the lead.

The other elements of the BDA’s four-point

plan are three additional government bond

auctions in May, August and October; a halt to

buybacks of OLOs due in 2022; and an increase

in its activity in Treasury Certificates (bills in

maturities up to one year).

In addition, it remains open to so-called

‘Optional Reverse Inquiry Auctions’ of less liquid

bonds in May, August and October too.

Julian Lewis

6 IFR Bonds 2327 p25-65.indd 31 03/04/2020 20:28:58

support European companies, health interventions and the economy as a whole.

eligibilities are being extended to areas of

Leads BNP Paribas, Bank of America, DZ Bank and JP Morgan started marketing the eight-

books of more than €7.3bn meant the level was tightened by 4bp.

“After the painful volatility we’ve had in

recent weeks, the central banks’ intervention has been supportive for the technicals. It just took a while for the

now investors are chasing the market again,” a syndicate banker said.

The playbook was the same for CEDB’s

over mid-swaps was moved by 4bp after

via Credit Agricole, Citigroup, DZBank and HSBC.

“The social element does help at the margin in getting investors more engaged but, at the end of the day, everyone is back in the market; they’re in buying mode,” the syndicate banker said.

inclusion bond from CEDB, while the book was the largest for any CEDB benchmark to date.

It helps that levels are so much wider.

mid-swaps in January was quoted at 3.8bp over on Thursday, according to Tradeweb.


Canadians shun domestic market for deeper euros

SSA Single currency a haven in tough times

Canadian issuers took to the single currency last

week as challenging conditions in their domestic

market makes issuance difficult.

CPPIB CAPITAL INC, which also raised dollars,

was the first to emerge bringing a seven-year

green bond against an improving market

backdrop for public sector borrowers in the euro

market. It was quickly followed by QUEBEC and

the PROVINCE OF ONTARIO.

“Volumes have been quite challenged

domestically,” a DCM banker said. “It’s mainly

been private placements, not big new issues, so

euros and dollars could be attractive.”

“The domestic currency is getting beaten

up, so most of the provinces are trying to get

better funding than what they can in the local

currency,” a syndicate banker said.

Still, unlike European SSA names that are eligible

for the ECB bond buying, Canadians fall out of the

central bank’s remit, hampering some of the demand.

“There’s slightly greater price tension for

PSPP eligible names,” the DCM banker said.

KfW for example sold a €5bn three-year last

Wednesday 2bp tighter than guidance, printing

at 4bp over swaps on books in excess of €15bn.

“The Canadian provinces haven’t had the

same price tension,” he added.

“It’s not to say they’ve been bad transactions.

They’ve worked very well, but clearly the order

books haven’t been as large and investors have

been a bit more price sensitive. The only thing I

can point to is PSPP vs non-PSPP.”

The ECB has been buying a large amount of

public sector bonds in the secondary market and

is expected to continue doing so in the coming

weeks in an attempt to shore up the eurozone

against coronavirus fallout.

RELATIVE SAFETYBut even though the likes of Ontario, Quebec and

CPPIB are not eligible for central bank purchases,

the euro market is offering relative safety.

Leads Barclays, Bank of America, Citigroup

and JP Morgan started marketing CPPIB’s €1bn

no-grow at 50bp area over mid-swaps and

landed the trade at that level on books in excess

of €1.7bn.

“The green label definitely helped,” a lead

said. “I think this deal shows that there isn’t a

big gap between ECB-eligible and non-ECB-

eligible names. Every other non-QE-eligible

name should be pleased that CPPIB got a very

successful trade; it sets a good reference.”

Still, bankers away from the transaction

thought it was disappointing that the leads had

not been able to move the level tighter.

“We still rely a lot on bank treasuries because

that’s where the market depth is,” a second

syndicate banker said. “When you come in a part

of the curve which is mostly supported by bank

treasuries and you are not an HQ level 1 issuer,

then you have less depth and traction.”

AND AGAINIt was a similar tale for Quebec which priced its

€1.6bn deal in line with initial price thoughts of

swaps plus 45bp. Lead managers BNP Paribas,

Deutsche Bank, HSBC, JP Morgan and NatWest drew

€1.95bn-plus of demand (excluding JLM interest).

Bankers away from the five-year judged it a

hard sell. “In these markets some deals are just

scraping by – that one in particular,” said one.

A lead manager countered that the deal size

reflected “fair” allocation to its “high quality”

order book of central banks and bank treasuries.

“You’re not going into this deal unless you want

the bonds.”

Quebec enjoys the strongest following of the

Canadian provinces among euro investors, he

said.

The leads put the new issue concession at

20bp. They derived this by adding a margin to

what they regarded as out of date screen levels

for comparable Quebec debt.

“The issuer was pragmatic in how they

approached the market to offset volatility in

secondary trading,” the lead said.

GREATER DEPTHFor the Province of Ontario, which priced the

third Canadian trade of the week, demand was

once again reasonable rather than roaring.

Books for the €1bn deal closed over €1.4bn

through leads Barclays, BNP Paribas, HSBC, RBC

and TD. The spread was set at 58bp over swaps

from the outset.

“I think the funding levels are working well for

them versus Canadian dollars,” the banker said.

“Also, there’s still greater depth in euros than

in dollars. The premiums being paid are smaller

than in dollars, and there’s slightly greater

duration available in euros.”

Ontario’s deal was its first in euros since a

€1.5bn seven-year priced in April 2018.

That is not to say that the dollar market is

completely shut. CPPIB Capital Inc, which was

back with its second trade of the week with a

US$1.25bn two-year, saw good price tension for

its offering.

After marketing at the 35bp area over mid-

swaps, leads – BNP Paribas, Deutsche Bank,

Goldman Sachs and TD Securities – moved the

pricing to 33bp over. Books were more than

US$3.4bn and the issuer upsized the trade

from the US$1bn originally indicated.

The success of the recent transaction is

likely to draw other borrowers to the dollar

market bankers said, especially European

ones that have so far preferred to stay close to

home.

“If you’re European, you’ve basically got a

big bazooka behind you so it makes sense to

do euros,” the second banker said. “But there’s

a few issuers looking at dollars, especially as

the cross-currency swap market has settled.”

Julian Lewis, Helene Durand

6 IFR Bonds 2327 p25-65.indd 32 03/04/2020 20:28:58

fully to where primary deals were clearing, they never fully adjusted,” the syndicate banker said.

“It’s been hard to talk about concessions but I would say that the primary market has tightened towards secondaries, which is a good dynamic.”

NIB PULLS OUT ALL THE STOPS FOR VIRUS FIGHT

The NORDIC INVESTMENT BANK brought a “response” bond to market on Monday, the

the latest sign that public sector issuers are being called upon to stem the impact of the fallout from the coronavirus pandemic.

IFC and AFRICAN

DEVELOPMENT BANK have so far used their existing frameworks to issue bonds to counteract the economic consequences of the virus.

However, NIB only had a green bond framework in place. In order to issue a social bond quickly, it opted to forgo an external review that would have added another week or two.

“They’ve done a tremendous job of putting this [framework] together in such a short time,” a lead manager said. “It was put together in a matter of days.”

eligible projects to alleviate the social and economic consequences of the pandemic in the bank’s member countries and eventually support the recovery process of the countries.

as unemployment, sickness and childcare.

broad categories including the public sector,

still gives visibility on the projects being

“This is a good example of a frequent green

know them,” said a banker close to the deal. Leads BNP Paribas, Danske Bank, JP Morgan and

HSBCover mid-swaps for a three-year transaction though demand of more than €3.2bn - the largest NIB book for a euro trade - meant that the level was tightened to 6bp over.

“It’s very impressive,” another lead manager said. “Most new deals are being very well received right now and the secondary performance of recent new issues helps.”

After widening sharply, secondary spreads are showing tentative signs of stabilising and new issues have tightened.

“There are price breaks here and not every investor is active so you still need to be cautious and have the correct pricing,” a DCM banker said. “That’s what we’re learning from every transaction that’s come to market.

“Having seen KfW and EIB, traders and dealers can make an assessment on these recent issues. You can’t extrapolate to everything but for a good quality name like NIB, achieving what they did, sends a good signal to the market.”

market for issuance but bankers said conditions have been more stable and the market depth greater in the single currency.

“It feels like the euro market offers more

the levels at which dollar deals have come, it’s been very expensive.

“For those issuers who want to maintain

be seen as paying up and would prefer to wait.”

AfDB, for example, recently paid 35bp

WALLONIA LIFTS EURO SUSTAINABLE SECTOR

WALLONIA boosted meagre recent supply of public sector green and social bonds in

longer dated offerings under its

The sub-sovereign’s deals comprised a

€200m tap of its May 2034 bond – one of the

primary markets reopened after their near closure in March. ING and Natixis were lead managers.

Wallonia priced the new debt in line with guidance at 45bp over interpolated OLOs, and the reopening at plus 48bp. The tap was marketed at the “high 40s area”.

Underscoring March’s spread widening, Wallonia sold the original tranche of its May

2034 sustainable bond at 36bp over OLOs. It

The region’s ability to attract demand for the 2034 piece was “pretty impressive”, a lead manager said. He noted that despite the recent market turmoil it still offered a

still makes sense for issuers.”Although Wallonia remains an infrequent

issuer with “still small size aspirations”, the deal package shows that funding remains possible for such borrowers, he added.

“The reality is that with the market still very busy even less frequent issuers are able to get deals done.”

FLEMISH COMMUNITY EXTENDS BELGIAN RUN

The FLEMISH COMMUNITY kept the Belgian

market foray in a year.“It has been a very active week for the

Belgian government and related entities. All in all, they have managed to take out a combined

market,” a banker away from the deal said.Belgium laid the foundations on Tuesday

with its record-breaking €8bn seven-year OLO. Wallonia followed in its slipstream the

May 2034 tap.The Flemish Community started

marketing at interpolated OLOs plus the 40bp area. One lead said it was not easy spotting fair value given current conditions.

“Looking at the most recent Belgian issues, secondary trades, and the broader regional European markets, we saw fair value in the context of OLOs plus 25bp,” he said.


BONDS SSAR

ALL SOVEREIGN BONDS IN EUROSBOOKRUNNERS: 1/1/2020–31/3/2020


Excluding ABS/MBS.


1 JP Morgan 16 12,580.97 12.7

2 SG 8 7,744.22 7.8

3 BNP Paribas 12 7,633.62 7.7

4 Citigroup 9 6,838.46 6.9

5 HSBC 9 6,824.91 6.9

6 Goldman Sachs 10 6,742.95 6.8


8 Barclays 10 5,296.91 5.4

9 Santander 5 5,047.48 5.1


Total 31 98,991.69

MUNICIPAL, CITY, STATE, PROVINCE ISSUES IN EUROS BOOKRUNNERS: 1/1/2020–31/3/2020


Excluding ABS/MBS.


1 UniCredit 17 7,288.19 22.6

2 JP Morgan 10 3,029.87 9.4

3 DGZ-DekaBank 16 2,905.93 9.0

4 BayernLB 9 2,582.71 8.0

5 Barclays 9 2,261.03 7.0

6 Nord/LB 14 2,227.24 6.9

7 Deutsche Bank 10 1,700.02 5.3

8 HSBC 10 1,614.80 5.0

9 DZ Bank 9 1,161.64 3.6

10 Commerzbank 5 1,056.00 3.3

Total 47 32,292.79

6 IFR Bonds 2327 p25-65.indd 33 03/04/2020 20:28:58

“The NIPs for these kind of trades have gone up. We saw that with the Belgian sovereign, Portugal, and KfW. The regions and Laender are also offering premiums

even higher,” the banker away said.Books edged up further and were last seen

The banker away from the transaction said the issuer had reached its size target but reckoned the spread was on the wide side. He said pricing was probably impacted by the fact that markets looked better earlier in the week, when Belgium and Wallonia came, than on Friday.

cheap, which is good for investors, of course. In the end, you have a differential

where you would expect maybe typically to have slightly more than that considering the difference in rating,” he said.

Wallonia is rated A2 by Moody’s and the Flemish community AA by Fitch. Wallonia came in line with talk at 45bp over OLOs and has since tightened 2bp or 3bp.

were involved but that the sustainable element was not a focal point.

The banker away from the deal said the

pinpoint.“It was easier to detect a small help from

the sustainable element in terms of book size and pricing when we had a normal secondary market.”

The Flemish community is looking at some long-dated social housing funding for later this year, the lead said.

and Societe Generale ran the trade.

Also in the market on Friday, LAND BERLIN

20bp through , taking the deal up to

MECVOR DRAWS BUMPER DEMAND WITH FIRST LSA IN SIX YEARS

The STATE OF MECKLENBURG-WESTERN POMERANIA

issuance from Germany showed no signs of slowing, spurred by the coronavirus-related

than €2.5bn of demand, enabling the leads to move the pricing level by 3bp to 20bp over mid-swaps.

A bookrunner said MecVor picked a

liked to long trades but not in huge sizes and because seven-year swaps looked okay on Tuesday morning.

“In the old days when the spreads were in negative territory, you were happy when

quarters of a billion deal,” a banker away from the transaction said.

The deal’s execution followed a similar pattern to recent issuance from its country

on March 25 that attracted €2.3bn in orders

plus 26bp, on Tradeweb.“Mid-swaps plus 23bp area was a good

starting point. I was personally expecting it at plus 22bp area, since secondaries were trading a bit tighter yesterday,” the banker away from the deal said.

evaluate new issue concessions given the lingering uncertainty in secondary market quotes. He added that though Laender bonds appeared a bit tighter on screens, the bid/ask spreads were so big that they were in his opinion a sign that there was not that much

establish what concessions there are, investors clearly see value in the new issues.

MecVor after the level was set.

“Investors usually wait to see two things: is it working and is the spread good? I think the former was key in the past, whereas the more important factor now is the latter. Once it is set, investors come in like crazy,” said the bookrunner.

The rarity of MecVor’s name also helped with the demand, especially with that coming from German investors. The bookrunner said he expected 70%–80% of the notes to go to domestic investors and 80% to bank treasuries.

“We also had a couple of pension funds and insurances as well, that was good to see,” he added.

AND AGAIN

FREE

STATE OF BAVARIA privately placed a €500m

€3bn three-year the week prior.The state began marketing with

number) for a trade with a minimum size of €250m.

tight, considering Pomerania started at plus 23bp for a seven-year. I was really angry and thought they were going to break the market here but they proved to be right,” a banker away from the transaction said.


Portugal grabs record as coronavirus push steps up

SSAR Sovereign places largest single-tranche bond

Public sector names stepped up their push for

coronavirus funding as the REPUBLIC OF PORTUGAL

became the fourth sovereign in quick succession

to turn to international capital markets, while

Germany’s KFW got away its second benchmark

in a week.

After Austria, Belgium and its neighbour

Spain all drew books of €30bn or more for

new syndications – Belgium achieving a sector

record of more than €57bn for non-EM SSAs –

Portugal’s €5bn offering tapped into the same

rich seam of demand.

Although the weakest credit of the four –

rated Baa3/BBB/BBB (Moody’s/S&P/Fitch – all

Positive) it attracted interest of some €27bn

(excluding JLMs) for its October 2027 bond. This

enabled it to set its largest single-tranche bond,

though it had previously issued a €5.5bn dual-

trancher.

The oversubscription enabled the lead

managers, Barclays, BBVA, CaixaBI, Credit Agricole, JP Morgan and Morgan Stanley, to

tighten the jumbo deal 4bp to mid-swaps plus

86bp.

The deal’s success came despite weaker equity

markets on Wednesday morning, a lead manager

emphasised.

“That sends quite an important message for

the market – that this kind of credit could see its

order book keep growing and even achieve its

biggest bond against that backdrop. Investors

are now distinguishing between asset classes in a

way that they weren’t quite recently.”

Moreover, Portugal pushed its new issue

concession down to a single-digit number. At the

deal’s launch fair value was around 74bp over

mid-swaps, versus guidance at the 90bp area.

But with references cheapening and the new

issue spread tightened repeatedly, the premium

halved to 8bp. “That’s fairly comparable to

Belgium yesterday,” the lead said.

“Are new issue premiums coming down

because deals are coming tighter or is there an

element of curves finally widening out and being

6 IFR Bonds 2327 p25-65.indd 34 03/04/2020 20:28:58

In the end, the deal priced in line with

€500m.A second banker away from the deal

viewed the trade as a good one. “Price-wise

He also said that the issuer probably opted for a private placement because it was not sure if it could do a benchmark at that level.

attributed the success of the Bavarian trade to the quality of the issuer’s name. “I am sure that other Laender would have had to start higher.”

He also said that the book reached €500m (ex-JLMs) last he heard.

The two bankers away from the transaction expect to see further private

has already ventured out with one. was sole lead on Bavaria and joint

bookrunner on MecVor alongside Commerzbank, DekaBank, DZ Bank and .

TIGHT BADEN-WUERTTEMBERG FIVE-YEAR DRAWS STRONG DEMAND

The STATE OF BADEN-WUERTTEMBERG was greeted

year, a deal that priced with the tightest spread seen in the Laender sector since issuers began to fund coronavirus aid programmes.

“This trade shows demand is still strong in the market, especially for high-grade names,” said a banker away from the deal.

“With the scarcity and quality of that name, they were able to achieve tighter pricing than other Laender in this part of the curve.”

Guidance came at the mid-swaps plus

and Hamburg’s six-year notes – which priced on March 25 and 30, respectively –

respectively, on Tradeweb.

two hours, which enabled the issuer to

book north of €2.8bn.“That’s no surprise for this name and for

environment is a great success for them,” a third banker said.

Bankers said Baden-Wuerttemberg

and that it had scope to tighten further in secondary trading, like Bavaria’s recent three-year, which was quoted 3.4bp tighter than launch on Tradeweb, at mid-swaps plus 8.6bp.

Most market participants expect demand will remain strong for Laender paper.

A syndicate banker said that with Q2 starting, people are receiving a bit of money and will continue to invest and rebalance portfolios that contain old negative-yielding instruments.

will remain especially strong for Laender that have restricted debt issuance plans.

“We may see some restructuring of the Laender segmentation, between those who have limited funding needs and those with higher needs,” he said.

Others are more cautious however.“There has to be a breaking point or there

has to be a point when the deals keep getting cheaper, presumably,” a DCM banker said.

“It does seem a bit aggressive the way these issuers are going at it, but they’re getting deals done and clearly they’re under pressure.”

Market players are also speculating on the effect the ECB’s Pandemic Emergency Purchase Programme will have on the sector and how it will impact on secondary trading levels.

was whether the programme would only target peripheral credits or if it would extend to core names, including Laender and other high-grade issuers.


BONDS SSAR

more accurate? For me, it’s more the former –

deals are getting done tighter and tighter and

it’s less about the curves repricing,” said a DCM

banker away from the deal.

Distribution of the deal was to a “huge range”

of investors, the lead reported. More than 300

accounts participated. A “very low” allocation to

fast money is likely.

The deal forms part of Portugal’s response to

the coronavirus crisis. Yesterday the sovereign’s

Treasury and Debt Management Agency IGCP said

that it will “proceed with the acceleration of the

execution of the medium and long-term issuance

programme” as well as upping its Treasury bill

programme for the year to €3.1bn from €1.3bn.

Target sizes for government bond auctions in

Q2 will increase by €250m to €1.25bn–€1.5bn.

IGCP expects to update its 2020 funding plan

“once a comprehensive assessment of the overall

impact on public accounts is complete and

whenever deemed necessary”.

IRELAND, UK IN VIEWA fifth sovereign announced plans for a

syndication. IRELAND will launch a new

government bond this month, its National

Treasury Management Agency said.

The EU state has no auctions scheduled for

April, though it will offer treasury bills on April 16.

Its next bond auction is on May 14.

In addition, the UNITED KINGDOM now plans

two syndications in May, the Debt Management

Office said on Tuesday. Having earlier announced

one syndication in Q1 of its new financial year – a

long conventional Gilt planned for launch in May

– the DMO is now planning two conventional

syndications in May.

It currently expects these to be for a new 10-

year and the issue or reopening of a Gilt with

over 30 years to maturity. “The DMO welcomes

feedback relating to these transactions ahead of

the comprehensive remit revision on 23 April,” it

said.

Ahead of the new syndications and its remit

revision, the DMO is to auction an unprecedented

£45bn of Gilts in April. This will mark the UK’s

highest ever monthly funding volume.

KFW IN FULLMeanwhile, KfW launched a high-speed June

2023 benchmark. Having limited its return

to the market the previous week to €4bn

(within its €3bn–€5bn benchmark range but

disappointing to some market players), the

Triple A closed a €5bn trade in less than two

and a half hours.

Lead managers Citigroup, HSBC, NatWest Markets and UniCredit tightened the offering 2bp

to mid-swaps plus 4bp against an order book of

more than €15bn (excluding JLM interest).

The deal’s swift execution and full size

represents “a sign that the market is getting back

to business”, said one banker away from the deal.

“Illiquidity is still there but on the more liquid

names like KfW and EIB, there is an improvement

and the screens are slightly more accurate than

they were,” added the DCM banker.

The order book was “almost a sovereign type”,

said one lead manager who reported “some

really juicy orders and nice diversification”. Its

size grew significantly after the spread was set

as some major bank treasury and central bank

investors placed orders, having held back in

anticipation of the spread tightening further.

The three-year maturity, which had been

fairly unpopular before the recent crisis, helped

attract a broad spread of buyers. Its relative

value against OATs, Bunds and floating-rate

benchmarks significant for asset swappers

(Euribor plus 11bp and the low 20s over Eonia)

also contributed.

At 4bp, the launch spread represented a new

issue premium of as little as 2bp, the lead noted.

“Despite spreads moving in, there is still

a lot of value left over,” said a second lead

manager, who noted extremely strong secondary

performance.

“The market is clearly improving in tone for

SSAs despite broader moves,” he said.

Julian Lewis

6 IFR Bonds 2327 p25-65.indd 35 03/04/2020 20:28:59

INVESTORS PILE IN FOR NRW 10-YEAR

LAND NRW turned heads on Thursday with a blowout tr ansaction as it continued to build its curve with bonds that will fund measures to tackle the coronavirus crisis.

year trade and raised €3bn after it received more than twofold demand.

“It was an insane transaction for a federal state, they’ve never had that kind of order book before. This is more something you’d get for bigger agencies like KfW,” a lead said.

packages. It came the preceding week with

and 25bp on Tradeweb, prior to the new mandate’s announcement.

Guidance was at the mid-swaps plus 30bp area for a 2030 benchmark trade. The order book grew past €4.5bn in under two

spread at plus 27bp, the same level as its

A second lead manager gauged the new issue premium at 8bp and said that pricing

compared with pre-PEPP levels.“In the Laender space, issuers were

down as the market stabilises,” he said.Investors piled in once the spread was

of more than €6.75bn. Demand surpassed

€2.2bn and €2.3bn, respectively.A banker away from the deal said the

trade looked fairly cheap but that on the

worth it.“It is a very successful deal. Looking at it

from the sides, I wish we had been on it,” he said.

For the second lead, the key takeaway was that aside from the usual participation of bank treasuries, real money accounts were also in the trade, which he said was new for the space.

The banker away from the transaction

development for German states in terms of securing longer-term funding for the aid programmes they are setting up.

issues at that tenor – not a deluge, though

habitat for a federal state,” he said.“At the same time, nobody wants to risk

duration of these bonds, you take the risk that people will not jump in any more because the risk gets too high,” he said.

and TD were lead managers.

HAMBURG DRAWS ROBUST DEMAND WITH CONVINCING SIX-YEAR FORAY

Investor appetite for German regional debt remains strong, and Monday saw the CITY

OF HAMBURG take full advantage with a swiftly executed €750m six-year.

German states have been raiding the market to back their coronavirus-related stimulus packages.

of times now, but for Hamburg it is the

subscription it was the most convincing one,” said a lead manager.

Hamburg announced guidance at mid-swaps plus the 22bp area for an April 2026 benchmark bond. A banker away from the deal said that looking at recent issuance

the level was reasonable and that decent interest meant it had scope for tightening.

April 2024 and March 2027 notes at plus

In the end, books closed at €2.3bn, excluding lead manager orders. The demand allowed Hamburg to print a €750m bond at a spread of plus 20bp, 2bp

new-issue premium, according to a second lead manager.

seven-year paper on March 24 with a

€2.3bn in orders.

year was aligned with the recent German Laender issues and that the “concession thing” was a worn-out concept.

Hessen and Bavaria have more or less established a new Laender world which is approximately 20bp up from pre-crisis levels,” he said.

The banker away said the deal looked to have been well placed.

“I guess this is where the new levels are now, but we will have to see where we go from here for this kind of credit,” he said.

However, the banker away thought that Hamburg could have taken a bigger size.

“If you want to print as much as possible you don’t tighten,” he said.

clear from the outset that the size would be limited to €750m.

“Of course, from the headlines, a lot more could have been on the table. Other

Hessen were ‘anything goes affairs’ and

said.

chance, maybe, but if the issuer demands only €75Om, then it’s €750m,” he said.

Joint lead managers were Commerzbank, DZ Bank, JP Morgan, NatWest Markets and

OEKB ON GUARANTOR’S COAT-TAILS

OESTERREICHISCHE KONTROLLBANK successfully followed its sovereign parent Austria in the three-year sector with a twice subscribed deal last week, a transaction that soaked up leftover demand from the precious week’s syndication.

Although sized at a hefty €5bn, Austria’s shorter-dated tranche left much surplus demand in its wake – having drawn interest of €30bn.

OeKB’s deal was priced notably wider than the sovereign’s launch level of mid-swaps plus 2bp. Even after tightening 4bp in marketing, lead managers Bank of America, Deutsche Bank, Erste Bank and JP MorganThe deal drew more than €3.6bn of demand.

at OeKB, said the issuer was encouraged to come to the market this week having observed the performance of Austria’s transaction, and other successful European trades from issuers such as NIB.

The deal exceeded OeKB’s expectations, she said. “What was extremely nice to see was that we could tighten the pricing in these two steps of 2bp, and we actually only had one investor drop once we

23bp back of where Austria’s three-year was trading, which was slightly tighter than expected. Compared to where the republic priced its transaction, it was a differential of 9bp.

issue’s differential was more in line with the pick-up OeKB had paid over the sovereign historically.

OeKB could issue another benchmark in

“but depending on demand stemming from the coronavirus response, we will

opportunities”.“We are open to issuing private

placements and medium-term notes in various currencies going forward,” she said.


6 IFR Bonds 2327 p25-65.indd 36 03/04/2020 20:28:59

NON-CORE CURRENCIES

SEMIS REOPEN AUSSIE BOND MARKET

Cash-strapped state governments have reopened the Australian bond market with a

current buyside preferences.In stark contrast to the gang-busting

primary market has been slow to pick up speed as local asset managers became net sellers of bonds to help meet elevated redemptions.

Further drawdown pressure will follow

Authority’s decision to allow superannuation account holders to

markets are far larger than Australia, where the dominance of equities within fund portfolios puts more pressure on managers to free up cash through bond sales to fund redemptions,” said a syndication manager who worked on one of last week’s transactions.

The retreat of asset managers from the market has left bank balance sheets as the dominant buyside investor class Down Under, where bank treasurers are busy making reverse enquiries to put their liquid cash positions to work.

Liquidity levels have been strengthened

gives authorised deposit-taking institutions (mostly banks) access to funding for three

The preference of banks for short-term

reasons why Australian states have shifted

sales that were prevalent earlier this year.Overall demand for state government

paper is also supported by relative value investors looking to switch out of lower-yielding Commonwealth government bonds

asset that offers a better return.ACGB yields have been driven down by

purchases since it introduced open-ended

three-year yield target of 0.25%.

FUNDING NEEDSFor their part, Double A and Triple A rated semi-governments are keen to access wholesale funding having been hit hard by the coronavirus pandemic, which has sent local spending soaring while tax receipts, including stamp duty, have dwindled as economic activity contracts.

plus 38bp, while Western Australia Treasury Corp and Queensland Treasury Corp have also been adding to several of their

NEW SOUTH WALES TREASURY CORP, which

February 2025s following a reverse enquiry from its panel banks.

TCorp subsequently went public with a dual-tranche transaction on April 2

February 8 2024 bonds via joint lead managers CBA, Citigroup, UBS and Westpac.

39bp and EFP plus 58bp, respectively.Domestic investors were allocated

approximately 87% of each issue, with bank balance sheets buying 82% of the new TCorp

The SOUTH AUSTRALIAN GOVERNMENT FINANCING

AUTHORITY also returned to the public market last week with its third one-year Aonia-

sole lead manager ANZ.“Given the recent market dislocation,

especially towards the long end of the curve, we took an opportunity to access funding

adding to the dislocation,” said Andrew Kennedy, director for treasury services at

“An opportunity presented itself following bilateral talks to raise an initial

price certainty and transparency, which helped attract more interest in the note

banks and investors.”Pricing of the notes at Aonia plus 55bp is

two Aonia-linked trades, but is roughly inside those notes’ original swap levels, according to Kennedy.

“On the buyside, the investors were happy to buy short-dated notes that offer

last December, priced at 40bp over daily compounded Aonia, having printed the

which is published daily and offers a risk-free alternative to the domestic Bank Bill

reference point for Australian dollar

of its 2022, 2024, 2026, 2028, 2030 and 2032

NEW ZEALAND RAMPS UP ISSUANCE

The NEW ZEALAND TREASURY (Aaa/AA+/AA+) is looking to syndicated sales to help meet its

Projected gross bond supply in the

as part of the country’s response to the

The Treasury has mandated ANZ, BNZ, CBA and UBS for a syndicated tap of the

issue this week, while there may be another syndication offering before the

nominal bond issue or a tap of an existing bond line.

year, NEW ZEALAND DEBT MANAGEMENT is stepping up its tender operations and will now release monthly schedules for each month in advance.

For April, three nominal bond tenders will be held each Wednesday raising a

Treasury bills on issue are forecast to be

The previous syndicated issue last

Treasury was targeting when it opened the

NZGBs historically enjoy some scarcity

government debt, which has been around 20%–25% of GDP for several years, while they again offer the highest yield, in absolute terms, among Triple A/Double A rated sovereigns.

0.33% and minus 0.43%, respectively.Liquidity can be a problem, partly because

New Zealand has not met the size requirements of Citigroup’s nominal World Government Bond Index, but the country should soon become eligible as sovereign supply is ramped up.

LGFA PLANS BOND With regional administrations also facing

LOCAL


BONDS SSAR

6 IFR Bonds 2327 p25-65.indd 37 03/04/2020 20:28:59

GOVERNMENT FUNDING AGENCY, rated AA+/AA+ ANZ, BNZ, CBA and

Westpac for a senior unsecured six-year

institutional and retail investors.

debuted in the domestic bond market in

2024) notes.The agency, which provides cheap debt

previously focused on small, regular tender issues, which are allocated on a sliding scale based on the councils’ sizes and credit ratings.

The New Zealand government owns 20% of LGFA, while 30 regional and territorial councils, including Auckland Council, Christchurch City and Wellington City, hold the remaining 80%.

to New Zealand sovereign bonds, but has no rating from Moody’s (which rates the sovereign Aaa) and no government guarantee.

CORPORATES

US DOLLARS

SUPPLY GLUT SHOWS FEW SIGNS OF SLOWING

Overcoming volatile markets and a world hobbled by the coronavirus pandemic,

corporate bond primary with unprecedented supply.

The latest trading period set a new record

supply in a week as jumbo deals from ORACLE and T-MOBILE helped push issuance just shy of

The new high mark beat the previous record set just one week prior, when

March 27.The record-setting supply would have

seemed impossible coming into March as coronavirus fears gripped the markets.

market through the month’s half-way mark, with several no-print days and at least three pulled deals.

last two weeks, spurred by the Federal

stimulus package, allowing companies to

seize on the opportunity to shore up their liquidity and issue new debt.

Volume in March ended with

monthly and quarterly record for the asset

March volumes by far surpass the last

Quarterly issuance also reached a new

To put the rally further into perspective, from the start of March to April 2, borrowers

from the previous four months combined,

“It has been a very sharp rally but the damage done to get us there was nothing short of remarkable,” said Kurt Halvorson, portfolio manager at Western Asset Management.

From the middle of February to March 23, average investment-grade credit spreads blew out 300bp to around 400bp over Treasuries, according to ICE BofA Data.

spreads are back to 305bp over.“The market is still trying to process the

Fed’s announcement while also absorbing a massive new issue calendar,” Halvorson said.

issuance may slow in April if historical trends are any indication, according to a

But one syndicate banker noted that two back-to-back jumbo deals in one week shows there is still money to be put to work.

WELL-CAPITALISED CORPORATES TAP BOND MARKET FOR EXTRA CASH

credits are raising substantial sums in the bond market, adding to already high cash reserves as they prepare for more volatility in both the markets and the broader economy.

Companies such as ORACLE, ANHEUSER-BUSCH

INBEV and SHELL INTERNATIONAL FINANCE raised billions of dollars last week even though they have enough to cover upcoming maturities, as management remembering past crises prepare for the worst.

“A lot of issuers are looking back and thinking if this really is the next crisis, then they need to prepare and shore up for two years.” said Kurt Halvorson, portfolio manager at Western Asset Management.

“For a 4% coupon they can take that risk off the table and start thinking about their business.”

The trend started when tech company Oracle priced last Monday and continued on

three-parter.Beermaker AB InBev has already built up

debts through a series of asset sales,

Just the week before, regulators approved

Japanese brewer Asahi.

tightened 40bp–50bp through price

At those levels, the cash-rich brewer was able to achieve new issue concessions of

AB InBev has already termed out many of its short-term debt maturities and it still has

“Issuers are certainly hedging their bets,” said Matt Daly, head of corporate credit research at Conning.

“We’re seeing some companies address near-term debt maturities. We’ve seen some term out their bank revolvers and it’s prudent to do that when there is access to the market.”

POWER OUTAGEOil majors are also prudently bolstering cash reserves as crude prices continue to hover

demand is at new lows amid global travel restrictions.

High-quality investment-grade names in the sector should be able to weather the storm as they reduce capital expenditures, cut share buybacks and add revolver facilities.

in cash on hand, but was adding more in the debt markets on Wednesday.

Those levels were some 50bp tight to where Exxon Mobil priced in the market in

names to reopen the investment-grade primary sector.

“These high-quality oil borrowers are in the market just to take the tail risk off the table,” Halvorson said.

“They are going to take on a little bit of incremental debt until prices recover, and hopefully something on the supply side gets sorted out sooner rather than later and demand can come back sharply in Q2 or Q3.”


6 IFR Bonds 2327 p25-65.indd 38 03/04/2020 20:28:59

INVESTORS WELCOME HIGH-QUALITY RETAILERS DESPITE STORE CLOSURES

The retail sector is under extraordinary pressure as stores close in an attempt to slow the spread of the coronavirus pandemic and they are turning to the bond market to shore up cash reserves.

Two discount retailers, ROSS STORES and TJX, which runs TJ Maxx and Marshalls, tested demand for higher-risk retail names

They followed higher-quality names from the sector, including Target, Home Depot, Lowe’s,

All these borrowers that have priced bonds over past two weeks represent very disparate parts of the retail sector, but are all dealing with a common problem – store closures.

“Even though the coupons are higher, they are able to access the market and

Investments. “If they can lock in longer-term debt at

these levels, it will help them get through any kind of prolonged downturn in the economy, and if they have the credit to do it, they will.”

CVS, whose business straddles everything from drugstore chains to health insurance, was one of the largest issuers with its four-

competitor Walgreens, GimmeCredit noted in a report.

Kroger, Walmart and Target are other credits that could be winners through the downturn, due to their low leverage and involvement in the grocery segment, the report noted.

TARGE

good enough to land the company with coupons in the 2% area and new-issue

Others did not fare as well, with AUTOZONE

of new-issue concession.The auto industry as a whole is taking a

hit as vehicle sales fall and car makers and parts manufacturers close factories.

European car parts suppliers on review for downgrade and also downgraded six issuers.

the fact that auto maintenance and repair is

far from discretionary,” GimmeCredit wrote in the report.

BUILDING MATERIALSHome building retailers LOWE’S and HOME

DEPOT offer a particularly interesting convergence of consumer trends.

Both Lowe’s and Home Depot came to the

transactions, demonstrating strong investor demand despite the headwinds.

Lowe’s paid up more, landing its 30-year bond at 370bp over Treasuries, compared to Home Depot’s 30-year at 200bp over.

Typically, both names trade as safe-haven credits during natural disasters, on the assumption that hurricanes, tornados and

aftermath. But a pandemic does not necessarily lead

to the same boost, even if the stores continue to operate around the country as an “essential service”.

improvement projects Lowe’s CEO Mavin Ellison noted recently, and new online ordering and in-store pick-up options could boost sales.

But with the economy headed for a recession, home improvement projects are

“As a category, home improvement is unlikely to see a massive uptick in demand (beyond certain areas like respirators, gloves, cleaning supplies, etc) from stock-up/hoarding behaviours, but it also has fewer discretionary elements.”

DELL ADDS TO TECH SUPPLY WITH SECURED DEBT OFFERING

DELL TECHNOLOGIES

bond market on Friday, shopping a three-part deal in a sign that demand for low Triple B paper is still strong.

DELL INTERNATIONAL and EMC

CORP were co-issuers on the trade.The company’s senior unsecured ratings

are high-yield but the bond issue is being secured, which bumps it up to Baa3/BBB–/BBB–.

The computer maker is expected use the

according to a company press release.On Thursday, software company VMWARE,

in which Dell Technologies holds a majority

part note.VMware holds low Triple B unsecured

ratings and was forced to pay around 48bp of new-issue concessions for its new notes,

The last time Dell Technologies was in the

advantage of the tight spreads at the time to

“People are building out their home

sector that should be well positioned to take advantage of the current environment,” said Matt Daly, head of corporate credit research at Conning.


BONDS CORPORATES

ALL INV-GRADE US CORPORATE BONDSBOOKRUNNERS: 1/1/2020–31/3/2020


Excluding equity-related debt, ABS/MBS, all foreign issues, global issues

and non corporates.

Source: Refinitiv SDC code: F6a


2 JP Morgan 33 12,788.23 14.0

3 Wells Fargo 25 10,330.33 11.3

4 Goldman Sachs 19 9,472.33 10.4

5 Bank of NY Mellon 3 5,177.95 5.7

6 Barclays 19 3,901.95 4.3

7 Citigroup 22 3,867.87 4.2

8 Morgan Stanley 15 3,283.42 3.6


10 TD Securities 12 2,699.46 3.0

Total 74 91,398.00

ALL INVESTMENT-GRADE BONDS IN EUROSBOOKRUNNERS: 1/1/2020–31/3/2020


Excluding ABS/MBS, equity-related debt.


1 JP Morgan 83 33,486.38 8.9

2 BNP Paribas 77 25,233.29 6.7

3 HSBC 80 25,172.42 6.7

4 Barclays 76 23,973.44 6.4


6 SG 59 22,207.43 5.9

7 Deutsche Bank 68 21,056.63 5.6

8 UniCredit 64 20,937.13 5.6


10 Goldman Sachs 35 15,812.51 4.2

Total 365 376,453.93

ALL CORPORATE BONDS IN STERLINGBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues £(m) (%)

Source: Refinitiv SDC code: N8a

1 Barclays 10 1,241.39 17.0

2 JP Morgan 6 910.00 12.5

3 BNP Paribas 6 593.89 8.1

4 HSBC 6 520.67 7.1

5 NatWest Markets 5 480.21 6.6

6 RBC 5 464.22 6.4

7 Lloyds Bank 4 455.46 6.2

8 Citigroup 3 439.30 6.0

9 Deutsche Bank 2 297.89 4.1

10 Goldman Sachs 3 239.39 3.3

Total 15 7,295.36

6 IFR Bonds 2327 p25-65.indd 39 03/04/2020 20:28:59


EUROS

CORPORATES BUILD CASH BUFFERS

“Load up on liquidity while you can” is the mantra corporate borrowers are living by, with the wave of deals last week underscoring the uncertainty with which issuers are viewing the future.

The number of investment-grade euro tranches to hit screens signalled that borrowers are rushing to raise cash to secure

deteriorate and liquidity become harder to access.

“Issuers have experience from recent

and certainly at much higher rates [like in

liquidity as the opportunity has presented itself.”

LVMH

2025 benchmark on Wednesday, is one corporate expecting its sales to decline,

However, the weaker outlook proved no

attractive spreads that high-quality credits are issuing at hard to resist. With a book of about €5.9bn at launch, the issuer paid no

“It’s a quality credit and when they come at these levels it’s incredibly attractive,” said a lead banker.

“From an investor perspective, I think some are reasoning that coronavirus is a short-term issue and this is an opportunity to lock in longer-term attractive spreads,” said a banker away from the deal.

LVMH will use the funding, at least in

Highlighting the widening of spreads, PERNOD RICARD

manufacturer sold a €500m 0.875% October

The proceeds from the new issue, which also included €750m of April 2025s

bank debt facilities, “notably one secured with a joint lead manager”, according to the deal announcement.

Higher-rated issuers from defensive sectors were able to squeeze concessions.

“Trades have shown that actually the market is open to almost everyone, at a price, but I think that preference for quality or something that is considered a safe sector

different issuers end up paying,” said a fourth banker.

Utility E.ON (Baa2/BBB), for example, was able to land a €750m October 2025 green

5bp premium. The deal began with a concession of about 55bp but a book that reached more than €7.2bn at the tight end of guidance gave leads leeway on the price.

“We believe that the euro utility sector is one of the most resilient sectors in this crisis and that E.ON, with its high percentage of network Ebitda, is relatively well placed,”

Demand for quality credits also allowed ORANGE

telecoms company to test the market since the sell-off, to cut its concessions.

At IPTs, it was paying up around 60bp,

Questions linger but real estate market reopens

CORPORATES Tough times lie ahead but three companies prove market access

Investors were back buying property owners in

the primary market last week despite question

marks about how badly real estate will be

affected by prolonged lockdowns.

With several countries enforcing lockdowns

because of the coronavirus and fears growing

about the depth of a likely global economic

recession, tougher times lie ahead for the

real estate sector than most. That has been

compounded by the fact that landlords are not

getting government assistance.

Despite this, three issuers were able to price

deals last week, showing investors have not lost

faith in the sector.

VONOVIA opened books on four and 10-year

notes with a 75bp premium, according to a lead.

The German residential real estate company

carries BBB+/A– (stable) ratings from S&P and

Scope, respectively.

“It is one of the most defensive REITs out

there, so it looks attractive,” said an investor.

“We see the residential sector as one of the

most resilient within the real estate subsector

in the current environment,” wrote CreditSights

analysts.

Demand allowed leads to cut pricing by 40bp

from start to finish on both tranches. The €500m

no-grow four-year ended at 195bp over swaps,

while the €500m no-grow 10-year landed at plus

240bp. Proceeds will refinance a €750m 1.625%

December 2020 bond issue, among other things.

Two days later, two more real estate

companies stepped up to sell debt but both

approached the market with caution.

France’s UNIBAIL-RODAMCO-WESTFIELD, which

owns shopping centres, raised €1.4bn in debt split

between a €600m five-year that landed at 240bp

over swaps and a €800m 10-year at plus 280bp.

Investors placed €3.1bn in orders, thanks

in part to a premium seen at 80bp on both

tranches at IPTs. Pricing was tightened by 25bp

on the 2025s and 30bp on the 2030s.

In a sign of how much the market has moved,

Unibail sold a 30-year bond issue in June 2019 at

a spread of plus 110bp and a yield of 1.83%.

Since then, shopping centres around the

world have been shuttered as part of the effort to

prevent the spread of the novel coronavirus.

Unibail, rated A3/A– by Moody’s/S&P (both

negative outlook), said in March that it had

€10.2bn in cash on hand and undrawn credit

lines, which provided it with the liquidity needed

to cover all expected funding needs even under

an extreme “stress test” scenario.

GRAND CITY, a residential REIT with properties

in Germany, sold a €600m four-year bond at

plus 235bp. The company pulled in a book of

€1.1bn, leaving the deal less than twice covered.

Leads were able to tighten the spread from

IPTs of plus 245bp–250bp, with the deal

launching in line with guidance.

Still, some investors feel far more comfortable

with residential real estate than retail.

“Retail is particularly scary,” said a second

investor. “I’m doubting there’s much of a rebound

even once we are out of lockdown – the recession

will kick in then.”

Investors saw Grand City (Baa1/BBB+,

Moody’s/S&P, both stable) as offering around a

40bp premium over Vonovia’s bonds.

“Notwithstanding Grand City’s exposure

to Berlin and potential concerns about rent

restrictions across Berlin, real estate is a relative

game at the moment,” said the first investor.

“From a REIT standpoint, the preferred asset

exposure is residential at the top, then logistics,

offices, then at the bottom you have hotels – and

then retail.”

Both Vonovia and Grand City plumped for

four-year bonds – a part of the curve that has

been relatively neglected in the recent borrowing

frenzy.

The performance of short-dated paper has

been lagging longer duration in investment

grade, as insurance companies and pension

funds are better placed to ride out the market’s

troubles.

Eleanor Duncan

6 IFR Bonds 2327 p25-65.indd 40 03/04/2020 20:28:59


BONDS CORPORATES

pricing on recent deals, with a seven-year

year.

at guidance for its July 2027s and April 2032s meant the borrower could set the size of each tranche at €750m. With demand

GREEN TINGEGreen bond issuance strategies are also being used by corporate borrowers looking to raise cash, hoping that a green label will broaden demand and secure a successful execution.

“One of the advantages of a green bond is

banker.

green assets powder’ to help secure execution in this volatile market environment.”

One issuer to tap the market for green IBERDROLA

utility mustered a healthy book of more than €8.75bn for a €750m June 2025 issue

area saw the trade land with a concession of about 5bp. Bankers said the moves had been powered by the strength of the credit, the sector and the additional demand generated by having a green label.

Dutch airport ROYAL SCHIPHOL also issued green bonds. It put out IPTs at swaps plus 250bp area for an expected €500m nine-year.

€750m off books of €3.75bn and landed the

VW AND DAIMLER PAY UP FOR ACCESS

Two of Europe’s biggest carmakers were back in the market last week, adopting contrasting funding strategies, but both had to pay up to convince investors.

the biggest test yet of the state of the markets.

got a mixed response, with some bankers

short of what they considered a good outcome, even though the deal began with an 80bp–90bp premium.

“I think it needs to be a €6bn–€7bn book to be judged a good deal,” said the senior

banker during the execution process.“What we don’t need is a big new-issue

premium at the start but then for it to limp over the line.”

Another senior banker thought the deal was not attractive enough for many investors despite the starting point and a

He added that its ineligibility for the ECB’s bond-buying programme – the issuer was VOLKSWAGEN FINANCIAL SERVICES – made it an even tougher sell.

“I just don’t think it’s cheap enough in this market, and if the ECB isn’t there, it has an impact. It shows you how fragile the market is.”

premium was less important than VW raising money to dispel any liquidity concerns.

“We view it as prudent that VW takes advantage to maintain access to the capital markets, shore up liquidity as well as manage down the CP and other near-term exposures – even if VW must pay up to do it,” they wrote.

Volkswagen (A3/BBB+) opened books on 2023s, 2025s and 2028s at, respectively, the

390bp.The response from investors enabled

leads to price the €650m 2023s and €700m 2025s 25bp inside IPTs, while the €800m 2028s were revised by 35bp.

Thursday, this time in sterling.“The sterling market is an interesting

choice; there is less liquidity than you would

other hand, if you offer the right spread you can do your trade.”

Volkswagen brought in more than £700m of orders. The spread at IPTs on the October 2025 was the 445bp area over Gilts, but with enough demand leads landed it at 425bp, also increasing the size to £350m from an expected £300m.

In an indication of how markets have

Like many carmakers, VW is feeling the pressure of the coronavirus crisis. On March 27, Moody’s put its A3 rating on review for a downgrade given likely reduced consumer

negative outlook too.On Wednesday, DAIMLER priced an upsized

ECB-eligible bond, though a chunky premium was still required.

the ECB in primary,” said a lead.“It’s about perception. You don’t

necessarily need an order from them to get a

trade done, but you do need it for a blowout trade because it gives other investors the

The central bank is putting orders in equal to 40% of an announced tranche size, according to some sources.

Daimler’s A3/BBB+/A– April 2025 bond drew in a book of over €3.4bn at guidance, with the demand allowing the borrower to

Given the mixed response to VW’s deal, it was not clear how investors would react to a Daimler new issue.

However, by offering a healthy premium

targeting just a single maturity, Daimler managed to generate considerable interest.

The deal was priced at 295bp over swaps from IPTs of 325bp–335bp, with Daimler paying a concession of about 65bp.

Bankers said a single tranche concentrated interest, although some thought that without a longer leg it may have missed out on some demand from insurers.

As with VW, Daimler’s bond followed a

recently took the decision to take the issuer down one notch to BBB+, with a negative outlook, citing an expected decline in revenues. The Moody’s A3 rating is on review for downgrade.

Carmakers generally are under huge scrutiny, with analysts expecting the sector to be at the centre of ratings downgrades, with many vulnerable to fallen-angel status.

“Note that Triple B rated euro debt in the auto segment accounts for €92.8bn alone, which is almost 30% of the entire high-yield universe,” said Bank of American analysts last week.

OIL COMPANIES GET INVESTOR LOVE

Oil companies were out in force in the investment-grade euro corporate market

from a price war shrouding the industry.TOTAL, SHELL, BP and OMV attracted

combined books in excess of €34.5bn as investors took advantage of the widening of spreads in the oil sector.

Total kicked issuance off on Wednesday – the other three followed on Thursday – giving

of orders for its €3bn dual-trancher.During the execution process it had said

to expect a €2.5bn size.

business, by geography, upstream,

incredibly robust, so it is not surprising to

6 IFR Bonds 2327 p25-65.indd 41 03/04/2020 20:28:59


see this much demand, especially at these levels,” said a lead.

The issuer began marketing a seven-year

plus 235bp–240bp.That equated to premiums on offer at IPTs

of around 70bp, according to a banker away from the deal.

Total was able to move pricing by 40bp from the tight end of those ranges, landing

respectively.A second banker away from the

transaction called the deal a blowout.

facing the oil industry, Total’s strengths stand out, said Christian Hantel, senior portfolio manager, global corporate bonds, at Vontobel.

“The company has one of the best balance sheets in the sector to deal with the current price volatility,” said Hantel.

within their sector and hence order books are oversubscribed.”

outlook on Wednesday, due to what it called unprecedented credit shocks.

The ratings agency wrote that Total

barrel, the company faces a shortfall of

compared with its original budget set for

In response to the price drop, Total is cutting organic investments, discontinuing its share buyback programme and accelerating operating expenses reductions.

BETTER BACKDROPThe other three issuers came the following day, crowding into the same maturities,

The backdrop was slightly better, with

President Donald Trump said he expected

to end their oil price war, with the WTI

Ismael Lecanu, senior credit portfolio manager at AXA Investment Managers, said that the length of the oil price crisis will be a crucial factor to follow.

“Having said that, those companies,

rating area, should attract a large amount of cash from investors, as they are printing their debt at a very wide level not seen

Wednesday before turning to euros on

market, as well as euro last week, raising

Thursday.

levels of the new euro issues and also gained the most price traction, setting the spreads at 45bp inside IPTs, with the four-

respectively, for each of the €500m four and eight-year bonds, and 240bp for the

Interest for all of the new issues showed most orders were placed at the long end.

“For the longer tenors and better yield there has been a bigger bid,” said Atul

at Credit Agricole.

offering attracted the most interest, with

for OMV was €3.4bn and the book for BP was €6.85bn.

Lecanu said that the backstop offered by ECB buying is a plus for investors looking to participate but is not the key element for accounts, who are instead monitoring how earnings can recover once the crisis passes.

“Ultimately, we can argue that with this

receive support from their states as they are strategic,” said Lecanu.

“This is something that we are also looking at, particularly in the airlines industry.”

the three new transactions, printing its

inside.

to its integrated peers as it is the only

and gearing, including leases, of 35%,

and 24%, respectively.

is expected to drive gearing down, and the

ALL CORPORATE BONDS IN EUROSBOOKRUNNERS: 1/1/2020–31/3/2020


Excluding equity-related debt. FIGs, ABS/MBS.


1 BNP Paribas 49 9,796.93 8.5

2 Deutsche Bank 35 7,886.02 6.8

3 Barclays 27 7,554.66 6.5

4 HSBC 35 7,503.35 6.5


6 JP Morgan 34 6,788.78 5.9

7 Citigroup 29 5,650.19 4.9

8 SG 30 5,474.45 4.7


10 ING 22 3,913.12 3.4

Total 127 115,754.57

ALL US INVESTMENT GRADE CORPORATE DEBT BOOKRUNNERS: 1/1/2020–31/3/2020


Source: Refinitiv SDC code: F9

1 JP Morgan 161 59,402.91 13.6

2 BofA Securities 156 55,051.24 12.6

3 Citigroup 126 41,947.05 9.6

4 Goldman Sachs 91 40,388.81 9.3

5 Morgan Stanley 87 33,598.41 7.7

6 Wells Fargo 90 28,962.29 6.6

7 Barclays 63 18,431.07 4.2

8 RBC 56 13,568.73 3.1

9 Deutsche Bank 40 11,987.98 2.8

10 US Bancorp 49 10,961.44 2.5

Total 310 435,725.46

ALL INTERNATIONAL STERLING BONDS

EXCLUDING SECURITISATIONSBOOKRUNNERS: 1/1/2020–31/3/2020


Including preferreds. Excluding equity-related debt.

Source: Refinitiv SDC code: K05a

1 Barclays 32 6,039.84 14.6

2 HSBC 26 4,405.40 10.7

3 NatWest Markets 23 4,133.20 10.0

4 RBC 19 4,064.52 9.8

5 JP Morgan 10 2,452.10 5.9

6 Lloyds Bank 12 2,363.48 5.7

7 Deutsche Bank 12 2,334.09 5.6

8 TD Securities 10 2,281.40 5.5

9 Citigroup 11 2,162.89 5.2

10 Goldman Sachs 8 1,587.61 3.8

Total 65 41,355.18

ALL SWISS FRANC BONDS INCLUDING

SECURITISATIONSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues SFr(m) (%)


Source: Refinitiv

1 Credit Suisse 45 6,350.0 38.2

2 Verband Schweiz 10 3,117.3 18.7

3 UBS 28 3,010.2 18.1

4 Raiffeisen Schweiz 15 1,393.0 8.4

5 ZKB 16 1,356.1 8.2


7 BNP Paribas 2 217.1 1.3

8 Basler KB 1 140.4 0.8

9 Commerzbank 1 92.5 0.6

10 VTB Capital 1 83.3 0.5

=10 JP Morgan 1 83.3 0.5

Total 72 16,646

6 IFR Bonds 2327 p25-65.indd 42 03/04/2020 20:28:59


BONDS CORPORATES

view on the name given the opportunity for spread pick-up.

BP said on Wednesday that the disposal

on track but completion of deals already announced may face delays. The company also cut its 2020 spending plan by 25% and

gas business.

AIRBUS FLIES AFTER STARTING WITH BIG PREMIUM

AIRBUS demonstrated that investors have little fear about participating in new issues even from sectors badly affected by the coronavirus, as accounts put in more than

triple-trancher.The air travel industry is one of the most

vulnerable to the developing crisis, with a number of airlines struggling with their business.

But the planemaker cast aside any doubts about its appeal to investors as it headed a busy day in Europe’s corporate bond market on Tuesday.

swaps plus 235bp area, an eight-year at plus

In a sign of the premiums on offer at IPTs, leads saw the company’s bonds from April

A banker away put the starting concession at around 75bp, a level he said

the economic effects of the novel coronavirus are starting around 50bp back, and the most affected sectors are

markets at Credit Agricole, one of the global coordinators, said that the market volatility is a short-term shock that Airbus should be able to navigate, with premiums

recent weeks.“Airbus is a strongly rated issuer, with a

strong market position and strong

“They are pragmatic and are being realistic. This is a top-tier issuer and you can see the market buys the story.”

The other global coordinators are BNP Paribas, HSBC, JP Morgan and Societe Generale. UniCredit, Santander and Natixis are active bookrunners.

Airbus was able to tighten all tranches by

240bp.In a demonstration of the bid for

orders.

€750m, with interest of more than €3bn and €2.7bn, respectively.

Airbus is grappling with labour and supply chain shortages and may only be able

20% of normal levels for now because of partial shutdowns, industry and union sources said.

Airbus and other major aerospace companies have been left in no doubt that the French government sees it as a strategically important sector and should not risk collapse of the supply chain by closing operations completely, two senior sources said.

the company on negative watch on March 27 due to a slowdown in aircraft deliveries due to the effects of the pandemic.

Airbus recently said it had secured a

liquidity.

company’s €3bn revolving credit facility, is a

facility.Other measures being taken by the

company to strengthen its balance sheet

of a voluntary top-up in pension funding.Its available liquidity is now around

€30bn.

understanding that Airbus plans to maintain production and reduce the group’s cash

no longer consistent with its ratings.It did say however that Airbus’s liquidity

cushion under its stress scenario before it breaches its liquidity thresholds for the current ratings.

more clarity on when Airbus can resume aircraft deliveries in meaningful volumes, and how the market situation will affect the

Airbus is rated A2 by Moody’s with a stable outlook.

The company is also part of a 27-strong team of industrial and engineering companies that has received an order from

The consortium, which was asked in mid-March to retool factories that produce everything from aircraft engines to the world’s fastest racing cars, has not said when the ventilators will be ready for use in hospitals.

STERLING

STERLING PROVES ITS VIABILITY

The sterling market began to show strong signs of life last week, with domestic and international borrowers raising funding in the UK currency.

“The market has been slower than euros to come back, for sure,” said a syndicate banker. “The investors are perhaps more selective, but with yields where they are, there is good demand, especially at the long end.”

A lead on EXPERIAN

said the maturity allowed the issuer to differentiate its deal from some of the shorter-dated transactions in the euro corporate market.

“The sterling market is less obvious right now because the availability of liquidity is bit more dubious in that market,” he said, “but Experian is a name that traditionally works very well there.”

The credit score company only has a single short-dated sterling note outstanding,

initially marketed at the plus 300bp area. The lead said that was around 50bp back of fair value.

“You can’t be too punchy in sterling,” he said. “But we didn’t want to start a million miles back and do that kind of execution.”

Experian tightened pricing by 20bp and sold a £400m transaction at 280bp on books exceeding £2.2bn.

Prior to last Tuesday, the last trade in the sterling corporate market came from Diageo (A3/A–) on March 24, which sold a £300m March 2029 at Gilts plus 255bp, alongside two euro notes.

Last Thursday, VOLKSWAGEN FINANCIAL

SERVICES proved that the sterling market, like the euro primary, is open to auto credits but had to offer a substantial spread to attract buyers.

The issuer, rated A3/BBB+, brought in more than £700m of orders. The spread at IPTs on the October 2025 was 445bp area over Gilts, but with enough demand leads landed it at 425bp, broadly inline with where it would fund in euros according to a lead.

Leads also managed to increase the size to £350m from an expected £300m.

HOUSING ASSOCIATIONS SUPPLY THE LONG ENDHousing associations proved well suited to the growing demand for longer-dated sterling assets, with SANCTUARY CAPITAL (A2/A+) and OPTIVO (A2) both stepping into the market last week.

6 IFR Bonds 2327 p25-65.indd 43 03/04/2020 20:29:00


“As we saw in euros, there is a clear interest in much longer-dated trades as investors try to lock in that spread

in sterling,” said a banker away from the deal.

“Issuers like housing associations therefore make a lot of sense because that is the type of funding they typically look for.”

Utilising the increased appetite for long-

announced an April 2050, the longest bond seen in the sterling corporate primary since January.

Leads began marketing the deal at the 200bp area above Gilts. A book of around

area for an expected size of £300m.

currently viewed as an attractive issuer. Not only is it a strong credit at a time of economic uncertainty but the spread it offers, especially further out the curve, is enough to draw in orders.

something like a housing association in this market is very well suited,” said the banker.

issuer opting to increase the deal size to

Housing association Optivo put in an appearance last Tuesday. The £250m

retained, were sold at a spread over Gilts of 230bp.

The housing provider has a portfolio in excess of 45,000 homes across London, the

FIG

EUROS

LEASEPLAN ACCEPTS MARKET REALITY WITH STATEMENT OF ACCESS

LEASEPLAN attracted modest demand for a

offering on Friday despite paying a pick-up

statement of its market access. Leads Danske Bank, HSBC, ING, JP Morgan

and Societe Generale opened books for the

guidance of mid-swaps plus 375bp area.

size at €500m, with books passing €650m. Bankers saw fair value in the 270s, based

on LeasePlan’s curve, implying a pick-up of

2024s around 257bp. Paul Benson, group treasurer at LeasePlan,

said the issuer’s rationale in entering the market was “partly an acceptance of the world in which we are operating” but mainly to demonstrate to clients and stakeholders, including ratings agencies, that LeasePlan has continued market access.

“We have four different funding platforms: retail deposits, bilateral bank

“Following this transaction, we can now demonstrate that since the escalation of the

we have successfully raised funding across all four different platforms, leaving us now holding cash and committed facilities comfortably in excess of €6bn.”

Bankers away from the deal said its lacklustre reception – in spite of the sizeable premium and the green element, which tends to improve demand – probably

during the coronavirus crisis.

Lloyds takes senior opportunity while Europeans stay away

FIG Bank takes contrasting approach to European peers

Lloyds made a quick return to the senior market

last week, raising €1bn of opco senior funding for

LLOYDS BANK CORPORATE MARKETS and US$1.5bn

of holdco debt, showcasing the contrasting

market views of UK and European banks.

The new issue from LBCM, which is Lloyds’

non-ring-fenced entity and sits at the opco level

within the group, comes just over a week after

holdco LLOYDS BANKING GROUP tapped the euro

market.

Despite the success of LBG’s deal and a string

of other highly subscribed senior deals from UK

and US banks last month, European lenders

are staying away from the market while spreads

remain elevated.

Sole bookrunner Lloyds marketed LBCM’s

six-year deal at initial price thoughts of the mid-

swaps plus 300bp area last Thursday.

The spread was ultimately fixed at 270bp and

the size at €1bn, with the book closing above

€3.25bn.

LBCM’s curve indicated fair value was around

220bp, implying a 50bp new issue concession.

The deal also landed around 30bp inside

where the recent €1.5bn six-year non-call five

senior from Lloyds Banking Group was trading.

Later that day, Lloyds hit the US dollar market,

printing US$1.5bn of 5.25-year holdco senior

debt via LBG.

The SEC-registered deal was priced at 350bp

over Treasuries, inside IPTs of the 375bp area.

Opco senior or senior preferred supply has

been particularly limited since the primary

market reopened.

Besides Lloyds, the only other name to have

issued in the format is NatWest Markets, the

non-ringfenced bank of RBS, which sold a €1bn

five-year at 300bp last month.

European banks have remained absent from

the senior unsecured market entirely. Their needs

have been curbed by the offer of new cheap

loans from the ECB, and European lenders have

preferred to issue covered bonds when seeking

wholesale funding.

“It just depends on whether you think

conditions will get better or you take the view

that when you see an opportunity and a window,

you try to hit it,” said a syndicate banker. “The

US and the UK banks have been taking that

approach.

“Who knows where the market will be even at

the start of next week? It’s very hard to predict

with how spreads have been moving around so

it makes sense to take an opportunity when you

have it.”

European banks are generally more likely to

wait for spreads to tighten before seeking senior

funding, according to syndicate officials.

“Most don’t want to pay these levels,” said a

second syndicate banker.

“The view from a lot of borrowers is that

spreads will rally back somewhat – definitely

not to where they were, but we’ve seen a decent

move since last week, so let’s see if they’re right.”

While seeking new senior funding for LBCM,

the Lloyds group is at the same time looking to

repurchase senior bonds issued by Lloyds Bank,

which also sit at the opco level.

Last Tuesday, Lloyds launched two tender

offers on its bonds, the first for four US dollar-

denominated senior bonds maturing in 2021,

2022 and 2025, and the second for its US$2bn

12% fixed-to-floating perpetual capital securities.

The new issue was not connected to

the tender offer. Lloyds said it is seeking to

repurchase the bonds to manage its funding and

liquidity base and capital position. It is targeting

the senior notes because they do not qualify as

MREL-eligible debt.

Tom Revell

6 IFR Bonds 2327 p25-65.indd 44 03/04/2020 20:29:00


BONDS FIG

Benson argued the deal had gone well against a tricky backdrop, in particular

ECB’s corporate sector purchase programme.

“Actually, the investors who know us well and who supported the transaction know that the business model has proven to be very resilient over many different cycles, including 2008–2009,” he said.

“I would say that our ability to land this trade against this market backdrop is

to weather this storm.”

results last month, chief executive Tex Gunning said the company was in a strong position, citing its high-quality customer base and the contractually recurring nature of its business and income streams.

However, he said the company was nevertheless deferring non-urgent investment and will pay no further

The new issue partially replaces a €750m senior that matures this week.

NON-CORE CURRENCIES

RBNZ BANS CAPITAL NOTE CALLS

ANZ BANK NEW ZEALAND will not call its

perpetual ANZ Capital Notes on May 25,

ordered local banks not to redeem capital notes and to stop paying share dividends.

Other central banks have already told banks under their jurisdictions to skip paying dividends and/or halt share

other countries, including Australia, where

market.“To further support the stability of the

economic uncertainty, we have agreed with the banks that during this period there will be no payment of dividends on ordinary shares, and that they should not redeem

deputy governor and general manager for

ANZ Capital Notes were issued in March

offering in the retail market. According to the terms, the notes will mandatorily convert into ANZ New Zealand shares, if not

outstanding among New Zealand’s four major banks, with no other such note

offering since 2009, when Bank of New

Outside the majors, Kiwibank sold a

funding vehicle Kiwi Capital Funding (KCFL), which was due to be called on May 27.

COVERED BONDS

EUROS

CA, CM TAKE SIZE AS INVESTORS POUR BACK IN TO COVEREDS

CREDIT AGRICOLE made the most convincing statement yet of the covered bond market’s recovery with a €2bn long four-year issue that pulled in more than €3.7bn of demand last Wednesday, even as an increased ECB bid expected by some failed to materialise.

The French issuer’s book was by far the largest seen in the euro covered bond market since the recent reopening. The deal

therefore raised hopes that the bond market could stage a consistent comeback after relatively sparse supply.

“It’s gone amazingly well,” said a syndicate banker away from the deal.

Leads Natixis and Santander marketed the

40bp over mid-swaps.

within 45 minutes. The size was ultimately

included.For comparison, fellow French bank BPCE

40bp spread on March 24 but attracted just

accounts.“[Credit Agricole’s] deal could therefore

be a tentative sign that the tide is turning, with an increasing number of investors back into the game,” said Joost Beaumont, senior

TIDE TURNINGCREDIT MUTUEL HOME LOAN offered further proof of the market’s recovery the following day.

ALL SUBORDINATED FINANCIAL INSTITUTION

BONDS (ALL CURRENCIES)BOOKRUNNERS: 1/1/2020–31/3/2020


Source: Refinitiv SDC code: J3a

1 Citigroup 9 1,871.16 13.5


3 HSBC 6 1,117.15 8.1


5 BofA Securities 4 892.89 6.4

6 BNP Paribas 4 776.99 5.6

7 JP Morgan 4 773.59 5.6

8 Barclays 5 690.53 5.0

9 Morgan Stanley 4 651.08 4.7

10 Santander 3 541.89 3.9

Total 16 13,867.55

ALL INTERNATIONAL YEN BONDSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues ¥(m) (%)

Including all Euro, foreign and global issues. Excluding equity-related debt.

Source: Refinitiv SDC code: K12

1 Sumitomo Mitsui 5 88,233.33 45.3

2 Mizuho 3 42,333.33 21.7

3 Mitsubishi UFJ MS 2 27,333.33 14.0


5 Nomura 1 8,333.33 4.3

6 Daiwa Securities 1 8,333.33 4.3

7 SG 1 8,333.33 4.3

Total 8 194,650.00

ALL FINANCIAL INSTITUTION BONDS IN EUROSBOOKRUNNERS: 1/1/2020–31/3/2020


Including banks, insurance companies and finance companies. Excluding equity-related and covered bonds. Excluding publicly owned institutions.



2 SG 13 4,607.78 7.9

3 Deutsche Bank 18 4,534.04 7.8

4 BNP Paribas 17 4,150.37 7.1

5 JP Morgan 21 4,121.24 7.0

6 Natixis 9 3,531.23 6.0

7 HSBC 14 2,521.05 4.3

8 Lloyds Bank 3 2,392.09 4.1

9 Barclays 16 2,372.42 4.1

10 Santander 15 2,266.33 3.9

Total 92 58,468.68

ALL GLOBAL AND EUROMARKET YEN BONDSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues ¥(m) (%)

Excluding equity-related debt. Including preferreds.


1 Mizuho 3 42,333.33 31.7

2 Mitsubishi UFJ MS 2 27,333.33 20.4



5 Nomura 1 8,333.33 6.2

6 Daiwa Securities 1 8,333.33 6.2

7 SG 1 8,333.33 6.2

Total 5 133,750.00

6 IFR Bonds 2327 p25-65.indd 45 03/04/2020 20:29:00


Leads Commerzbank, JP Morgan, Natixis and UBS offered the deal with guidance of mid-swaps plus 40bp area. The spread was later

the book closing above €2.6bn.Credit Mutuel was unable to match Credit

Agricole in terms of size or demand, with bankers putting the difference down to the latter’s larger investor following.

But more than 90 accounts participated in

positive trend.Investors are returning to the covered

bond market in numbers, bankers said, as

central bank measures announced in recent weeks and because covered bonds’ relative value looks improved versus tightening sovereigns.

A syndicate banker away from the leads added that the comparison with Credit Agricole’s larger trade should take nothing away from Credit Mutuel’s deal - which is its

“It doesn’t change the fact this is an amazing trade for CM,” he said. “It is the

recent times, so it is impressive.”

ECB BID UNCHANGEDAmong the central bank measures that have boosted the market is the ECB’s €750bn Pandemic Emergency Purchase Programme.

Market participants have speculated that the start of PEPP buying will cause the ECB to scale up its orders for new covereds in the primary market.

The Eurosystem reportedly increased its participation in the corporate market towards the end of last week.

However, it is understood the Eurosystem’s order for last week’s deals was around 40% of the expected deal size, implying its behaviour in the covered primary market is still unchanged since the new purchases were announced.

were allocated 40% of Credit Agricole’s deal and 36% of Credit Mutuel’s.

EQUILIBRIUMWhile primary patterns are unchanged, the ECB has stepped up its presence in the secondary covered bond market.

In the long term, increased ECB buying is expected to cause covered bond spreads to tighten, in conjunction with expected lower supply as central bank loans reduce banks’ funding needs.

forecasts the ECB could now buy more than

potentially exceeding new gross CBPP3-eligible supply.

However, it has not yet arrested the widening in covered bond spreads that

29.5bp at Tuesday’s close, its widest level

For now, new issues in the primary market are repricing the secondary.

“Hence, a higher spread equilibrium will have to be found on a broad basis across all segments before the ECB impact and some

“An ultimate relief rally should, however, only be expected once coronavirus becomes a manageable threat to the economy and society.”

NON-CORE CURRENCIES

TD BANK AND CIBC TAKE COVER

TORONTO-DOMINION BANK

offering last Friday via joint leads ANZ, CBA, NAB, TD Securities and Westpac.

Local bank balance sheets dominated orders for the notes, which were priced in

day earlier by CANADIAN IMPERIAL BANK OF

COMMERCE

note offering arranged by HSBC, NAB, Westpac and CIBC.

backed by Canadian mortgages and priced

CIBC has also issued covered Kangaroos previously with Canadian banks particularly active participants in the Australian covered bond market in recent years.

Beyond the four Canadian lenders – CIBC,

and Toronto-Dominion – the only other

HIGH-YIELD

UNITED STATES

THREE ISSUERS LOOK FOR LIQUIDITY WITH FIVE-YEAR JUNK BONDS

Three familiar names from different sectors tapped the high-yield market on Thursday,

balance sheets.All were names that have previously

enjoyed some of the best execution in the high-yield market – hospital operator TENET

HEALTHCARE, aerospace parts manufacturer TRANSDIGM and fast-food operator RESTAURANT

BRANDS INTERNATIONAL.All were looking to boost cash on the

balance sheet “just in case”, given the uncertainty related to the coronavirus pandemic, said one investor.

The three deals followed a trade from YUM! Brands on Monday which reopened the high-yield market after a four-week hiatus (see “YUM! Brands breathes life into

The issuance came amid a period of relative stability in the high-yield market – average spreads started the week at 882bp

Thursday, having ballooned as wide as

rally.“The volatility and the headlines have

been exhausting in both directions,” said a syndicate banker. “It is not conducive to functioning capital markets when there is that much volatility.”

“The last couple of days have been far more stable and that is creating a more positive narrative in high-yield.”

High-yield funds have also been

March.

would be the largest on record for the sector. It followed six consecutive weeks of

Lipper.To be sure, none of Thursday’s issuers

were able to borrow at the tight levels they had been enjoying even fairly recently, with all three highlighting coronavirus

ALL COVERED BONDS (ALL CURRENCIES)BOOKRUNNERS: 1/1/2020–31/3/2020


Source: Refinitiv SDC code: J15a

1 Barclays 30 6,206.09 8.5

2 HSBC 24 5,411.01 7.4

3 Credit Suisse 13 3,544.52 4.8

4 BNP Paribas 15 3,382.58 4.6


6 Santander 14 3,226.00 4.4

7 UniCredit 18 3,134.50 4.3

8 ING 14 3,092.68 4.2

9 Natixis 15 2,981.98 4.1

10 Commerzbank 13 2,828.57 3.9

Total 84 73,229.00

6 IFR Bonds 2327 p25-65.indd 46 03/04/2020 20:29:00


BONDS HIGH-YIELD

All of them also came under ratings pressure on Thursday.

Moody’s downgraded Tenet’s secured

secured debt being layered in.

Moody’s.

International’s BB issuer and BB+ secured bond ratings on negative outlook.

Aside from that, average spreads also almost doubled in March.

But like their investment-grade counterparts, high-yield issuers are growing to the idea of paying up for liquidity when the market is open to it.

call notes at 5.75%, inside price talk of 6% area, after selling eight-year debt at 3.875%

TransDigm upsized its 5.75 year non-call

sold eight-year senior subordinated notes at 5.50% in November last year.

and eight year debt at 4.625%, 4.875% and

offering a big concession to reopen the market on Monday, Thursday’s deals were conceded smaller concessions compared with the borrowers’ existing curves, the investor said.

EUROPE/MIDDLE EAST/ AFRICA

INVESTORS SCOUR PORTFOLIOS FOR PRIMING DANGERS

Bondholders in certain stressed companies are facing up to the danger of being placed

raise super senior debt to bolster their balance sheets or risk the credit running out of cash.

Investors have been asking credit

gaming company CIRSA and theme park operator MERLIN, have the ability to incur priming debt to shore up liquidity.

A Blackstone spokesperson declined to comment.

“Pretty much any name in high-yield that has some exposure to this crisis will be looking at ways to free up additional liquidity,” said a London-based high-yield investor.

“But most names wouldn’t do this easily

the bond market – or wouldn’t be able to do it because their covenant limits are already set lower than their current leverage.

Merlin has the ability to add over £2bn in super senior debt under its covenants for its

Merlin’s €370m 4.5% November 2027s were seen bid at a cash price of 72 on Friday, according to Tradeweb data. Those bonds

And Cirsa’s debt covenants under its senior secured notes and PIKs provide a “generous amount of capacity” for structurally senior debt, said analysts.

“silly” not to think about raising super senior debt, said the investor.

Cirsa recently said that it had temporarily suspended all operations other than online betting and casino operations due to Covid-

report published on Tuesday.The company has also presented a

temporary staff reduction plan affecting

drawn its revolving credit facility, wrote analysts.

Cirsa’s covenants allows around 5x leverage, and its current debt levels are in the 4x range, said the investor.

However, it has a limited time to access new liquidity – before April 29, when it is due to report earnings, he said.

“Cirsa will have to raise money before its third-quarter numbers come out, which are likely to be very weak and therefore leverage will spike,” he said.

A request for comment was not immediately returned by the company.

The practice of raising super senior debt, which then has payment priority over other debt in a company’s capital structure, is known as “priming”.

Pizza Express recently put a super senior facility in place, layering bondholders.

And in the primary bond markets, both CASINO and, last week CARNIVAL, have recently layered existing bondholders with new, high-priority, secured debt.

“If these company end up liquidating, it puts the new debt-holders at the same level as the credit’s banks – at the top of the pile,” said a debt analyst.

Investors will have to scour bond documents in order to work out a company’s capacity to prime, he said.

ALL US$ DENOMINATED HIGH-YIELD BONDS BOOKRUNNERS: 1/1/2020–31/3/2020


Including US domestics, Euro, foreign, globals. Excluding equity-related debt.

Source: Refinitiv SDC code: B5

1 JP Morgan 56 7,476.08 8.8


3 Barclays 45 6,525.29 7.7

4 Citigroup 46 5,569.87 6.6

5 Credit Suisse 39 4,952.15 5.8

6 Goldman Sachs 40 4,760.43 5.6


8 Deutsche Bank 40 4,326.31 5.1

9 Wells Fargo 31 3,906.95 4.6

10 RBC 28 3,807.52 4.5

Total 129 84,853.68

ALL NON-DOLLAR DENOMINATED HIGH-YIELD BONDS1/1/2020–31/3/2020


Excluding equity-related debt.


1 JP Morgan 17 1,973.42 9.6

2 Deutsche Bank 12 1,683.84 8.2

3 Citigroup 13 1,335.14 6.5

4 BNP Paribas 13 1,222.00 6.0

5 Barclays 11 1,154.94 5.6

6 ING 10 1,110.34 5.4

7 HSBC 13 1,019.70 5.0

8 Credit Agricole 7 994.41 4.9

9 Credit Suisse 7 978.24 4.8

10 UniCredit 9 904.62 4.4

Total 38 20,464.64

ALL EUROPEAN HIGH-YIELD ISSUERS1/1/2020–31/3/2020



Source: Refinitiv SDC code: B06c

1 JP Morgan 19 2,461.13 9.6

2 Deutsche Bank 11 2,129.37 8.3

3 Citigroup 14 1,964.32 7.7

4 BNP Paribas 13 1,626.43 6.4

5 ING 9 1,326.58 5.2

6 Credit Suisse 7 1,277.19 5.0

7 Barclays 9 1,274.13 5.0


9 SG 7 1,125.88 4.4

10 HSBC 12 1,124.68 4.4

Total 39 25,528.65

ALL ASIAN HIGH-YIELD ISSUERS1/1/2020–31/3/2020



Source: Refinitiv SDC code: B06d

1 Credit Suisse 18 2,362.97 11.2

2 UBS 12 1,672.49 7.9


4 Tianfeng Securities 4 1,320.00 6.2

5 Goldman Sachs 10 1,235.42 5.8

6 Citic 17 974.90 4.6

7 Haitong Secs 25 947.56 4.5

8 Barclays 13 790.45 3.7

9 Standard Chartered 7 677.20 3.2


Total 47 21,135.57

6 IFR Bonds 2327 p25-65.indd 47 03/04/2020 20:29:00


The tactic is used in order to entice new investors to support new debt raises while the company itself is struggling. But so-called “priming” leaves existing bondholders more at risk of not getting their money back.

“For those names which are low quality with a real potential for them to go bust, recovery value is very important and priming can be a key issue for investors,” said the investor.

However, if a company is facing a short-term liquidity problem, then it’s a good idea to raise secured debt if it has the capacity and ability to do so, he said.

“If it’s a question of either being layered or the company going bust, investors will put up with it. This is what covenants are

a moment of crisis, and investors will want them to use it.”

The risk existing investors run is that if the company raises super senior debt and still cannot weather the storm, investors’ recovery value will be less, he said.

Cirsa’s 6.25% December 2023s are now bid at a cash price of 66, according to Tradeweb

early March.

FALLEN ANGELS COULD UNSTICK HIGH-YIELD SECONDARY

Before the coronavirus crisis, a wave of fallen angels would have struck fear into European high-yield investor hearts, who had found themselves trying to walk a thin margin of error thanks to ECB-compressed yields in the asset class.

But now, with secondary frozen and bids hard to come by, some portfolio managers say they are hoping for the opportunity to pick up some bonds from forced investment-grade sellers who are seeking to

downgraded to high-yield following the coronavirus shock – 4.3% of the investment-grade index’s notional value, according to a recent JP Morgan report.

“The reality is that liquidity is only marginally better than it was a week to two weeks ago,” said one high-yield fund manager.

“I would challenge anybody very strongly who claims that there is a functioning market at this point in time.”

He said that a wave of fallen angels could provide some much-needed opportunities for fund managers to deploy capital.

“We’re going to have a lot of fallen angels that could provide some opportunity,” he said.

Another investor said: “All research shows that high-yield returns in recessionary periods are better than investment-grade or high-yield in normal markets.”

The European market has already seen

to high-yield this year, including Atlantia/Autostrade per l’Italia (€6.5bn), Kraft Heinz

Lufthansa (€500m) – the highest volume

another corporate to see its ratings cut to

investment-grade into high-yield.European Triple B names that could

potentially be at risk of downgrade into high-yield include real estate company Aroundtown, Electricite de France and Tesco, according to Bank of America analysts.

STRUCTURED FINANCE

EMEA MBS

JP MORGAN CIO THOUGHT BUYING CHESTER B1 TRIPLE AS

CHESTER B1, backed

placed last week.Market participants speculated that JP

Morgan’s CIO bought the deal’s Class A, given the CIO’s previous willingness to take down senior securitised risk from the UK, and the presence of JP Morgan as joint lead on the Class A only.

weighted average life and carries a coupon

The rest of the capital stack was not seen marketed to third-party investors.

BNP Paribas and Citigroup were joint arrangers and joint leads for all tranches, and Citi will take a single vertical loan note for risk retention.

The assets are part of a £4.9bn portfolio acquisition last year by CITIGROUP from UK

In April last year Citigroup sponsored and

backed by a portion of those mortgages.Last week’s new issue was also sponsored

by Citi. The capital structure shows all tranches pre-placed, and with coupons that resemble levels before the coronavirus forced spreads to gap out. However issue prices for the tranches were not disclosed.

The deal has optional redemption in April 2023.

EMEA ABS

FCA PLANS FREEZE ON PERSONAL LOAN AND CARD PAYMENTS

The UK’s Financial Conduct Authority (FCA) has proposed a freeze of up to three months on personal loan and credit card payments

ALL INTL AUSTRALIAN DOLLAR BONDS BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues A$(m) (%)



1 ANZ 5 1,195.42 15.5

2 TD Securities 12 814.53 10.5

3 CBA 2 800.00 10.4


5 Nomura 7 677.85 8.8

6 Mizuho 7 565.24 7.3

7 Westpac 2 466.13 6.0

8 Citigroup 2 438.98 5.7

9 HSBC 3 378.00 4.9

10 JP Morgan 5 360.99 4.7

Total 47 7,720.86

AUSTRALIAN DOMESTIC BONDS BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues A$(m) (%)

Source: Refinitiv SDC code: AJ02

1 ANZ Banking Group 15 6,149.65 22.8

2 NAB 20 5,580.31 20.7

3 Westpac Banking 14 4,790.29 17.7

4 CBA 10 2,612.64 9.7

5 UBS 5 2,061.98 7.6



8 JP Morgan 2 914.44 3.4

9 Macquarie Group 3 701.66 2.6

10 Citigroup 1 560.55 2.1

Total 33 27,000.98

GLOBAL DIM SUM BONDSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues Rmb(m) (%)


Source: Refinitiv SDC code: AS24a

1 HSBC 6 2,600.00 14.4

2 SG 2 2,155.00 11.9

3 Natixis 2 2,000.00 11.1

4 Standard Chartered 5 1,546.29 8.5


6 JP Morgan 1 1,000.00 5.5

7 Goldman Sachs 1 1,000.00 5.5

8 Nomura 1 1,000.00 5.5

9 BNP Paribas 1 1,000.00 5.5

10 LBBW 1 1,000.00 5.5

Total 25 18,096.53

6 IFR Bonds 2327 p25-65.indd 48 03/04/2020 20:29:00


STRUCTURED FINANCE

because of the coronavirus.The plan would complement measures

already announced to give mortgage borrowers and renters payment holidays of up to three months.

The FCA is carrying out a swift consultation on its proposals, giving lenders until Monday morning next week to

respond ahead of potential implementation next Thursday.

The FCA also wants zero interest to be paid on overdrafts of up to £500, for up to three months. It had already announced changes to overdraft rules, coming into effect on Monday, and says lenders should make sure borrowers are no worse off under the

revised rules than they would have been previously.

And the FCA also proposes that borrowers’ credit ratings would not suffer if they use any of the new proposed measures.

“These measures would provide an

support for consumers who until now

Banks stuck with loans after CLO market shuts COLLATERALISED LOAN OBLIGATIONS No mark-to-market means forced sales unlikely

Banks in Europe are funding billions of euros

of leveraged loans that were destined for

refinancing through CLO new issues but have

plunged in value over the course of March.

But market participants are not expecting a

wave of unwinds or liquidation for what Barclays

estimates are €4bn–€6bn of loans in bank

warehouses. And a tentative reopening of the

new-issue CLO market in the US on Thursday

provides a glimmer of hope for a restart in

Europe too.

Market participants believe there are 40–50

warehouse facilities in Europe, which allow

managers to ramp up leveraged loan portfolios

before exiting with term CLO securities sold to

end-investors.

The handful of banks most active in arranging

CLOs – Bank of America, Barclays, BNP Paribas

and Citigroup – are likely to hold the largest

amount. Some warehouses will already be at

€300m or higher while others will be just getting

started.

Warehouses are typically split into a senior

portion funded by the bank and a junior portion,

of 20%–30%, held by equity investors –

sometimes including the CLO manager.

Those equity investors will now be feeling the

pain of falling loan prices.

“Warehouses were holding assets at close to

par and now the assets are trading somewhere

in the 80s, so warehouse equity investors are

sitting on something like at 50% loss on their

investment,” said one CLO banker.

DRAWSTOP EVENTSFew warehouses in Europe are structured with

mark-to-market mechanisms that require equity

investors to post additional collateral or be

forced to liquidate.

But there are typically mark-to-market

triggers, or drawstop events, which can prevent

managers from adding any more loans to the

warehouse until values recover, and those are

almost certain to have been breached.

However, Geoffrey Horton, CLO and loan

strategist at Barclays, said in a research note

that some warehouse equity investors might

allow the manager to take advantage of current

low loan prices and buy more assets now before

waiting for a larger recovery in the future.

As for maturities, most warehouses give

borrowers around 12 months to ramp up their

portfolio and exit into the term market. But that

is usually followed by an amortisation period of

around 12 months if there is no term take-out.

That suggests an immediate wave of forced

warehouse unwinds is unlikely. Bankers expect

managers will use the time to hold fast and wait

to see if there is an improvement in the market.

“Managers with relatively more ramped

portfolios, where the ability to average down

at current loan prices is more difficult, will

likely instead look to price deals as soon as the

primary market begins to thaw,” Horton said.

At current spreads, though, a traditional term

CLO backed by loans bought before March looks

very difficult. CLOs only make money for equity

investors if the loan portfolio throws off more

cash than is needed to pay debt investors, and

secondary trading shows spreads on CLO debt

are now far too wide for that to happen.

For example, spreads on CLO Triple As,

which usually account for around 60% of the

stack, have widened to 250bp over Euribor and

beyond, from 90bp just a few weeks ago.

PRINT AND SPRINTHowever, portfolios of loans bought after the

spread widening began are of course paying

much more. And indeed on Thursday in the US,

manager Blackstone/GSO sold a US$476.70m

CLO which bankers away from the deal said was

backed by loans bought since March 9.

Even so, the deal’s sub-investment grade

bonds were retained, suggesting market

prices for that risk might have made the deal

uneconomical.

And unlike typical deals, the new issue –

called STRATUS CLO 2020-1 – is static and has a

very short one-year non-call period.

Bankers say more such opportunistic so-

called “print and sprint” deals may be lining up

in the US.

And behind them, managers are said to be

touting deals backed by loans they bought

before the spread widening.

“It is very difficult to say if those deals

[ramped-up before March] will actually happen,

and how the economics would work,” said a

second CLO banker.

“But if there is activity in the US, then that

points to something happening in Europe too in

the near-term.”

One motivation for an equity investor to term

out a new issue, even if it means putting more

money into the deal, would be the expectation

that loan values recover and the manager can

benefit from a pull-to-par to offset some of the

losses crystallised when the deal was taken out

of the warehouse.

“But if their view is this is a long-term

disruption, and the CLO equity will perform

badly too, they may well not want to roll into the

CLO and may just want to exit with as little loss

as possible,” said the first CLO banker.

“So it’s really a question of what their

warehouse equity investors’ view of CLO equity

is and how deep their pockets are – how much

they’re prepared to put into the transactions.”

At root, any judgements about loan

performance hinge on predictions about the

spread of the coronavirus and how long major

economies remain in limbo.

S&P, for example, ran stresses to European

CLO ratings which showed Triple As typically

resilient and Triple Bs remaining investment

grade in most cases.

It assumed the coronavirus pandemic peaks

between June and August, and that the sub-

investment corporate default rate could rise to 8%.

Moody’s, meanwhile, is working to three

scenarios: a sharp but short contraction, a

recession similar to the 2008 financial crisis, and

a more severe recession.

Those three scenarios give sub-investment

grade corporate defaults of 6.8%, 16.1% and

20.8%, respectively.

And with governments and healthcare experts

still reluctant to make firm predictions about the

spread of the coronavirus and the length and

severity of the economic fallout, it is asking a

lot for CLO market participants to find enough

conviction to do so.

Chris Moore

6 IFR Bonds 2327 p25-65.indd 49 03/04/2020 20:29:01


in a statement.“They are not a substitute for our normal

forbearance where that would be more suitable for a consumer in serious and

consumers can still afford to make payments, they should as normal and this is likely to be in their best long-term interest to continue to do so.”

ECB BUYS €1bn FOR ABS PURCHASE PROGRAMME

Programme for the week ending March 27. After netting out €300m of redemptions,

The ECB’s other purchase programmes

public sector assets, and €2.4bn corporate debt. The Pandemic Emergency Purchase Programme remained empty at the end of that period.

net of covered bonds.It had bought only small quantities of

bonds this year until the second week of

March, when purchases began stepping up. It is not clear if that signalled an increased

eligible eurozone securitisations had closed before that point.

The ECB has €750bn available to spend through its Pandemic Emergency Purchase

its Asset Purchase Programme which restarted last year at €20bn per month.

SANTANDER ISSUES AND RETAINS SPANISH CONSUMER LOAN ABS

BANCO SANTANDER issued and retained SANTANDER

CONSUMO 3 last week. The deal is a self-arranged

loans for a total €2.328bn principal

EUROZONE MORE LIKELY TO RESTART ABS PRIMARY

is more likely to come from the eurozone than from the UK, although secondary

to a research note from JP Morgan.

market to remain quiet until there are

volatility is abating.

securitisation risk premia that has occurred ... we believe that renewed primary market activity will need to be led by a recovery in secondary spreads as an indication that investors’ risk appetite is returning,” the bank said.

It expects that activity to start with high quality prime risk or “cash surrogate” sectors. Asset managers often use quick paying Triple A asset-backed paper such as

slightly higher-yielding place to park cash.JP Morgan says the eurozone is more

ECB’s purchase programmes should support new issuance, while the UK’s new

UK banks’ and building societies’ secured funding needs.

JP Morgan estimates the ECB will buy

The ECB has €750bn available to spend through its Pandemic Emergency Purchase

Purchase Programme (APP) which restarted last year at €20bn per month.

US MBS

GINNIE MAE TO OFFER RELIEF FOR US MORTGAGE FIRMS

GINNIE MAE is expected to launch a lending programme in April to help mortgage servicers facing a cash squeeze as a result of government measures that offer to relief for borrowers due to the coronavirus crisis.

Mortgage servicers are obligated to make monthly payments to holders of mortgage-backed securities backed by loans they are servicing, and are securitised through Ginnie Mae’s programmes, even if they face a shortfall in collecting money from home borrowers.

ALL INTL NEW ZEALAND DOLLAR BONDSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues NZ$(m) (%)



1 NAB 2 448.58 48.3

2 ANZ 1 298.77 32.2


4 Mizuho 1 32.00 3.4

Total 3 929.16

ALL INTERNATIONAL RAND BONDS BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues R(m) (%)



1 JP Morgan 9 3,063.96 50.3

2 RBC 2 750.00 12.3



5 BNP Paribas 1 500.00 8.2

6 HSBC 1 375.00 6.2



Total 19 6,091.24

ALL INTL CANADIAN DOLLAR BONDSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues C$(m) (%)




2 Scotiabank 6 535.79 12.0

3 BMO 5 529.97 11.8

4 CIBC 5 285.79 6.4

5 RBC 5 285.79 6.4


7 NBC 3 230.82 5.2

Total 10 4,479.85

ALL INTERNATIONAL TURKISH LIRA BONDSBOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share bank or group issues TL(m) (%)



1 JP Morgan 3 269.43 23.8



Total 9 1,131.55

NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 3/4/2020

Issuer Amount (m) WAL Coupon (%) Bookrunner(s) Rating Asset type

Csmc 2020–Rpl2 US$287.188 – N/A Credit Suisse NR/NR/NR RMBS

Freddie Mac SPC Series K–F77 US$536.618 – USL+70bp Credit Suisse/Morgan Stanley NR/NR/NR CMBS

Freddie Mac SPC Series K–F77 US$250.000 – SOFR+90bp Credit Suisse/Morgan Stanley NR/NR/NR CMBS

6 IFR Bonds 2327 p25-65.indd 50 03/04/2020 20:29:01


STRUCTURED FINANCE

This gap that mortgage servicers face could be staggering, with particular strain on non-bank operators which have less capital cushions than banks.

reduce or stop making their mortgage payments for six months, mortgage servicers are on the hook to come up

bondholders.

according to the Mortgage Bankers Association, an industry trade group.

Earlier this month, the government granted forbearance on the trillions of mortgages it backs and those guaranteed by FANNIE MAE and FREDDIE MAC.

“We have heard from our issuer and servicing partners that borrower forbearance arrangements that are nationwide in scope could place an enormous strain on issuers,” Ginnie Mae

Appleton said in a post on the agency’s website on March 27.

“Please know that we are taking action to address these concerns and potential liquidity challenges faced by Ginnie Mae issuers,” he wrote.

Within the next two weeks, Ginnie Mae is expected to introduce a “Pass-Through

issuers with collection shortfalls can borrow from, Appleton said.

This PTAP facility is expected to go into

backed by Ginnie Mae, with terms for reverse mortgages and multifamily securities to follow “shortly thereafter,” he added.

of Housing and Urban Department and backs its securities with the full faith and

The mortgage industry welcomed Ginnie Mae’s move for mortgage servicers.

“MBA commends Ginnie Mae for its intention to create this programme, which will allow many servicers to better help consumers affected by the coronavirus via mortgage payment forbearance,” MBA said in a statement.

Ginnie Mae’s planned programme, however, may not be enough for mortgage companies which also securitise their loans through Fannie Mae and Freddie Mac.

There is no immediate plan that Fannie and Freddie will launch their own lending programmes for mortgage servicing like Ginnie Mae.

Fitch on March 27 downgraded its outlook on mortgage servicers to Negative on expected stresses on this sector from forbearance reassures.

“The fallout from the pandemic is likely to elevate loan delinquencies, increase advancing requirements of delinquent

the ratings agency said in a statement.

MORE US MORTGAGE FUNDS SLASH DIVIDENDS TO SAVE CASH

trusts have reduced their dividends near to zero or eliminated them in an effort to preserve cash amid a coronavirus pandemic that has roiled the mortgage credit market.

TREMONT MORTGAGE TRUST and NEW RESIDENTIAL

INVESTMENT last Tuesday became the latest

moves to ensure liquidity in a sector hurt by margin calls as the value of some mortgage loans and securities sank. They came on the heels of AG MORTGAGE INVESTMENT TRUST and WESTERN ASSET MORTGAGE CAPITAL, which eliminated their dividend on March 27.

TWO HARBORS

INVESTMENT CORP suspended its dividends two weeks earlier and shed most of its non-agency mortgage-backed securities.

“Because of the current challenging market conditions, we think it is prudent for [Tremont] to take steps to preserve capital and engage in regular dialogue with our borrowers and our lender,” Tremont

M Blackman said in a statement.

ALL EUROPEAN ISSUERSBOOKRUNNERS: 1/1/2020–31/3/2020


Includes securitisations, credit-linked notes (Euro, foreign, global and domestics) and excludes CDOs.

Source: Refinitiv SDC code: B16n


2 Citigroup 8 2,268.68 12.7

3 Lloyds Bank 9 2,050.56 11.5

4 BNP Paribas 5 1,763.92 9.9

5 JP Morgan 5 1,756.37 9.9



8 Barclays 5 790.89 4.4


10 ING 1 576.20 3.2

Total 30 17,808.57

GLOBAL STRUCTURED FINANCE IN EUROSBOOKRUNNERS: 1/1/2020–31/3/2020


Includes securitisations, credit-linked notes (Euro, foreign, global and domestics) and excludes CDOs.

Source: Refinitiv SDC code: B16g




4 JP Morgan 2 574.63 7.8



7 ING 1 521.35 7.1

8 Coop Rabobank 1 500.00 6.8

9 BNP Paribas 1 327.17 4.4

10 UniCredit 1 321.93 4.4

Total 13 7,392.41

ALL INTL ISSUERS (EXCLUDING SELF-FUNDED)BOOKRUNNERS: 1/1/2020–31/3/2020


Includes securitisations, PFI bonds and credit-linked notes. Excludes US global ABS/MBS, CDOs and self funded issues.

Source: Refinitiv SDC code: J10d

1 Goldman Sachs 25 5,912.70 9.2

2 JP Morgan 28 5,803.18 9.1

3 Citigroup 25 5,416.63 8.5

4 Wells Fargo 20 4,887.03 7.6


6 Barclays 26 4,573.60 7.1

7 Credit Suisse 23 4,471.22 7.0


9 Deutsche Bank 21 3,174.66 5.0

10 Nomura 18 2,933.04 4.6

Total 126 64,092.09

GLOBAL SECURITISATIONS IN STERLINGBOOKRUNNERS: 1/1/2020–31/3/2020


Including Euro, foreign, global and domestics, excluding CDOs.

Source: Refinitiv SDC code: B16i

1 Citigroup 7 1,656.24 22.2

2 Lloyds Bank 9 1,576.08 21.1

3 BNP Paribas 4 1,049.43 14.0


5 JP Morgan 3 883.95 11.8

6 Barclays 2 325.00 4.3

7 NAB 2 305.23 4.1



10 Wells Fargo 1 183.19 2.5

Total 16 7,475.08

SECURITISATIONS – ALL EUROPEAN RMBSBOOKRUNNERS: 1/1/2020–31/3/2020


Including Euro, foreign, global and domestics, excluding CDOs.

Source: Refinitiv SDC code: B10a

1 Citigroup 7 1,805.32 16.7

2 JP Morgan 4 1,516.89 14.0


4 BNP Paribas 4 1,319.08 12.2

5 Lloyds Bank 6 1,301.83 12.0


7 Barclays 4 639.43 5.9

8 Coop Rabobank 1 500.00 4.6


10 NAB 2 359.30 3.3

Total 17 10,813.95

6 IFR Bonds 2327 p25-65.indd 51 03/04/2020 20:29:01


Tremont said it slashed the quarterly

quarter to one cent. It paid 22 cents in dividend for the prior quarter.

The company said it will monitor its performance and economic outlook to determine any future dividends, which are required to maintain its tax status as a real estate investment trust.

Depending on the ultimate dividend payout in 2020, it could

year, it said.

cents for the quarter before.“We continue to focus on growing

liquidity as we navigate the market during

Nierenberg in a statement.

portfolio of debt with a face value of

citing people with knowledge of the matter.

be reached for comment.

Meanwhile, Tremont had about

whole loans have defaulted or resulted in forbearance, it said.

Tremont is “in active dialogue” with Citibank, which is its only repurchase agreement lender, it said.

US CMBS MARKET BRACED FOR DELINQUENCY SURGE

securities market is bracing itself for a surge in loan delinquencies from borrowers due to the impact from the coronavirus crisis.

While the level of real estate loans past due date has been low, it is on the brink of surging, according to a report from data

to defaults, edged up 3bp to 2.07% in March, a rare uptick in a three-year downtrend, according to Trepp.

By property types, retail delinquencies were the highest in the sector, rising to 3.89% in March from 3.62% in February, Trepp said.

But while overall delinquencies in March were well below the all-time peak

payments were probably made before the magnitude of the outbreak’s disruption to businesses became apparent, Trepp said.

“A deluge is coming,” Trepp wrote in the report.

SEEKING RELIEFIn a sign that there could be payment disruption ahead, commercial real estate borrowers have been scrambling to seek debt relief in recent days.

have nearly emptied as workers are told to stay home by local governments to curb the spread of the virus.

According to Fitch on Thursday, 2,600 commercial real estate borrowers,

loans, sought potential debt relief during the two weeks ending March 29.

The ratings agency took data from the

Hotel borrowers represented 47% of all enquiries to mortgage servicers for forbearance, followed by retail borrowers at 30%, Fitch said.

Debt relief inquiries from multi-family

of March, the ratings agency said.In an attempt to support the commercial

real estate market, the government directed Fannie Mae and Freddie Mac to grant forbearance on loans they guarantee to multi-family borrowers in exchange for granting rent relief and suspending eviction of their tenants.

WIDER SPREADS

levels due to concerns about delinquencies sky-rocketing, especially among lower-tier paper or deals that are backed heavily or even solely by hotels and shopping malls –

GLOBAL STRUCTURED FINANCE IN US$ BOOKRUNNERS: 1/1/2020–31/3/2020


Including securitisations (Euro, foreign, global and domestics, excluding

CDOs) and PFI bonds.

Source: Refinitiv SDC code: B16b

1 JP Morgan 51 22,500.71 13.8

2 Wells Fargo 47 18,377.34 11.3

3 Credit Suisse 43 17,384.60 10.7


5 Citigroup 43 13,201.43 8.1

6 Morgan Stanley 31 13,110.76 8.1

7 Goldman Sachs 45 11,455.90 7.0

8 Barclays 31 8,501.93 5.2

9 Nomura 28 7,646.65 4.7

10 Deutsche Bank 32 6,268.89 3.9

Total 276 162,505.23

STRUCTURED FINANCE – ALL INTL ISSUERSBOOKRUNNERS: 1/1/2020–31/3/2020


Includes securitisations, PFI bonds, self-funded issues and credit-linked

notes. Excludes US global ABS/MBS and CDOs.

Source: Refinitiv SDC code: J10c

1 JP Morgan 29 6,359.18 9.6

2 Goldman Sachs 25 5,912.70 8.9

3 Citigroup 25 5,416.63 8.2


5 Wells Fargo 21 5,134.42 7.8

6 Barclays 26 4,573.60 6.9

7 Credit Suisse 23 4,471.22 6.8


9 Deutsche Bank 21 3,174.66 4.8

10 Nomura 18 2,933.04 4.4

Total 130 66,233.19

US ASSET-BACKED SECURITIESBOOKRUNNERS: 1/1/2020–31/3/2020


Excludes MBS.

Source: Refinitiv SDC code: F14

1 JP Morgan 22 7,680.46 11.8

2 Wells Fargo 21 4,654.39 7.2

3 Citigroup 20 4,222.37 6.5

4 Barclays 15 3,720.03 5.7

5 RBC 14 3,566.27 5.5

6 Credit Suisse 15 3,334.89 5.1


8 MUFG 12 2,880.11 4.4

9 Deutsche Bank 15 2,876.67 4.4

10 TD Securities 10 2,615.93 4.0

Total 113 64,938.67

ALL EUROMARKET CDOs BOOKRUNNERS: 1/1/2020–31/3/2020


Excludes global and domestic.



2 BNP Paribas 2 863.46 18.2

3 Citigroup 2 811.18 17.1

4 Jefferies 1 507.90 10.7




Total 11 4,742.09

GLOBAL CDOs BOOKRUNNERS: 1/1/2020–31/3/2020


Including Euro, foreign, global, US domestics.


1 JP Morgan 2 2,700.68 14.8

2 BNP Paribas 4 1,448.73 7.9

3 Citigroup 3 1,329.44 7.3

4 Jefferies 3 1,039.90 5.7

5 Barclays 2 955.38 5.2



8 RBC 1 438.50 2.4



Total 41 18,272.86

6 IFR Bonds 2327 p25-65.indd 52 03/04/2020 20:29:01


STRUCTURED FINANCE

two sectors battered by measures to curb virus transmission.

remains spotty, keeping spreads of the lower-rated paper at levels similar to those for junk bonds.

For example, spreads on BBB– rated

week ago and 498bp wider than a month earlier, Deutsche Bank analysts said.

Markets players are hoping the Fed would open up its emergency lending programme, the Term Asset-Backed

“The lending market remains frozen pending some information on TALF

Bank analysts said on Wednesday. “Near

lending avoids a credit crunch.”

US ABS

US ABS MARKET LEFT BEHIND AS BORROWING GOES ELSEWHERE

primary activity ground to a halt while companies rushed to borrow at a record pace from the corporate bond sector amid the coronavirus pandemic.

analysts cited a variety of factors for

behind its unsecured, investment-grade counterpart.

Corporates have largely rushed to the unsecured bond market to raise cash quickly, with no clarity on when the virus

“Companies are just trying to be smart with their balance sheets. They want to build up their liquidity buffer,” said Eric

Asset Management.For bankers, corporate bonds tend to be

faster to assemble for sale than securitised debt, market participants said.

On the other hand, companies raised a

ago.Companies are also responding to

demand for long-dated corporate bonds,

carry shorter maturities.

Investors also remain worried about bond funds dumping more securitised paper especially those backed by riskier, less liquid assets, to meet redemptions and margin calls.

FED BACKSTOP

resume may be the Fed itself.The central bank is in the process of

relaunching its Term Asset-Backed

Market players are awaiting details on the latest version of this programme, which was originally created during the

details.”

be operational until mid-April at the earliest.

would pore over TALF’s latest details after they are released before committing to selling and buying paper backed by the programme.

resume in a meaningful way until late April to early May, he noted.

GRADUAL IMPROVEMENT

sector have improved as investor demand has returned in the secondary market, tightening spreads from their widest levels

liquid asset classes,” said John Kerschner,

Henderson.

which were sharply tighter than a range of 300bp–400bp just more than a week earlier, a couple of market sources said.

which came to a halt two weeks ago.

investor appetite for riskier tranches of

market.Concerns persist about a severe

recession from the virus crisis.If businesses stay shut and consumers

stay home into the summer, loan defaults may soar once the government’s forbearance measures go away and its cash assistance to workers stops, analysts said.

“The federal government’s support for unemployed workers and seemingly broad-based and generous payment relief programmes should help keep defaults from spiking,” Bank of America analysts wrote in a recent research note.

“Even so, the sector has never seen such

are reluctant to say the sector will not revisit the default levels seen during the great recession,” they added.

expect to climb further in the coming weeks.

The reluctance to hold riskier debt is underscored by the dearth of issuance in high-yield and dollar-denominated emerging market bonds.

Moreover, dealers’ balance sheets remain constrained, reducing their capability to hold lower-rated portions of

improve, investors said.“We are still hearing constraints on

said.

FITCH MAY DOWNGRADE 35 CLASSES OF AVIATION ABS

Fitch said last Wednesday it might

asset-backed securities deals backed by aircraft and plane engine leases as the coronavirus pandemic has hammered global air travel.

The ratings agency said it revised the

transactions to negative from stable.The 27 aircraft and four engine lease

from this global pandemic driving unknown and unique risks for aviation

Fitch said in a statement.It said it was reviewing these deals

further, which “could result in further negative ratings actions in the weeks ahead”.

Amid worries about a protracted slump in air travel, investors have shunned

increased around the world.

to historic wide levels, according to several market sources.

senior aviation tranches, compared with 200bp more than a month ago before the virus breakout surged.

6 IFR Bonds 2327 p25-65.indd 53 03/04/2020 20:29:01


SSAR

US DOLLARS

Mar 31 2020 ADB US$4.5bn Apr 7 2022 0.625 99.909 MS+20 / T+45.3 0.671

Mar 31 2020 SEK US$1.75bn Apr 6 2023 0.75 99.693 MS+40 / T+57.95 0.854

Apr 1 2020 FMS US$2bn Apr 8 2022 0.625 99.933 MS+20 / T+42.2 0.658

Apr 1 2020 L-Bank US$2.5bn Apr 8 2022 0.625 99.758 MS+30 / T+52.4 0.746

EUROS

Mar 30 2020 Bpifrance €75m incr

(€1.575m)

Oct 25 2025 2.75 - - -

Mar 30 2020 CPPIB €1bn Apr 6 2027 0.25 99.578 MS+50 / B+96.5 0.311

Mar 30 2020 Hamburg €750m Apr 7 2026 0 100.126 MS+20 / B+64.8 -0.021

Mar 30 2020 NIB recovery bond €1bn Apr 6 2023 0 100.793 MS+6 / B+48.7 -0.263

Mar 30 2020 Saxony €250m Apr 7 2025 0.01 100.431 - -0.076

Mar 31 2020 Bavaria €500m Apr 3 2030 0.15 99.663 MS+21 0.184

Mar 31 2020 Mecklenburg-Vorpommern €750m Apr 7 2027 0.01 99.79 MS+20 / B+67.6 0.04

Mar 31 2020 Bavaria €500m Apr 3 2030 0.15 99.663 MS+21 0.184

Mar 31 2020 Belgium €8bn Oct 22 2027 0 100.098 MS+11 / B+58.8 -0.013

Mar 31 2020 Mecklenburg-Vorpommern €750m Apr 7 2027 0.01 99.79 MS+20 / B+67.6 0.04

Mar 31 2020 OKB €1.75bn Apr 6 2023 0 100.605 MS+11 / B+52.7 -0.201

Mar 31 2020 Quebec €1.6bn Apr 7 2025 0.2 100.01 MS+45 / B+87.3 0.198

Apr 1 2020 Baden-Wuerttemberg €1bn Apr 8 2025 0.01 100.627 MS+12 / B+53.5 -0.115

Apr 1 2020 KfW €5bn Jun 30 2023 0 100.85 MS+4 / B+43.4 -0.262

Apr 1 2020 Ontario €1bn Apr 8 2027 0.375 99.759 MS+58 / B+102 0.41

Apr 1 2020 Portugal €5bn Oct 15 2027 0.7 99.811 MS+86 / B+130.3 0.726

Apr 1 2020 Rentenbank €100m incr

(€2bn)

Jul 15 2024 0.25 101.872 - -0.185

Apr 1 2020 Saxony €250m Apr 6 2023 0 100.636 MS-10 -0.211

Apr 1 2020 Wallonia €500m Apr 8 2030 0.5 99.815 OLOs+45 0.519

Apr 1 2020 Wallonia €200m incr

(€700m)

May 3 2034 1.25 106.28 OLOs+48 0.777

Apr 2 2020 CoE SIB €1bn Apr 9 2027 0 100.33 MS+11 / B+52 -0.047

Apr 2 2020 EIB SAB €1bn May 15 2028 0 100.397 MS+6 / B+48.6 -0.049

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 3/4/2020

Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

6 IFR Bonds 2327 p25-65.indd 54 03/04/2020 20:29:02


BONDS SUMMARY DETAILS

MS+25 area - >US$7bn Aaa/AAA/AAA GS/MS/RBC -

MS+45 area, MS+42

area

- >US$2.9bn Aa1/AA+ BMO/DB/JPM/TD EMEA 51%, Amers 36%, Asia 13%. CB/OI

62%, AM 18%, Bks 18%, Other 2%.

MS+25 area, MS+22

area

- >US$4.8bn Aaa/AAA/- Barc/BofA/Citi/TD -

MS+35 area, MS+30

(#)

- >US$4.1m Aaa/AAA/- Barc/BMO/JPM/RBC -

- - - Aa2/-/AA CA-CIB -

MS+50 (+/-2) 20 >€1.7bn Aaa/AAA/AAA Barc/BofA/Citi/JPM/HSBC -

MS+22 area 12 €2.3bn, >70acs -/-/AAA CMZ/DZ/JPM/NatWest/NordLB Ger 49%, Benelux 18%, Fr 7%, Aus/

Switz 6%, Nordics 6%, UK/Ire 5%, Other

9%. Bks 53%, CB/OI 31%, AM 10%, Ins/

PF 6%.

MS+9 area, MS+7

area

4 >€3.2bn Aaa/AAA BNPP/Danske/JPM/HSBC Benelux 19%, Nordics 12%, Fr 6%, UK

4%, RoEur 32%, Asia 21%, RoW 6%.

CB/OI 58%, Bks 24%, FM 12%, Ins/PF/

Corp 6%.

- - - -/-/NR Deka -

MS+21 (the #) - - Aaa/AAA/NR/

Scope AAA

NordLB -

MS+23 area - >€2.5bn, >80acs -/-/AAA CMZ/Deka/DZ/LBBW/NordLB/Uni Ger 75%, Benelux 17%, Nordics 6%,

Other 2%. Bks 49%, CB/OI 33%, AM

13%, Ins/PF 5%.

MS+21 (the #) - - Aaa/AAA/NR/

Scope AAA

NordLB -

MS+15 area, MS+13

area

8 €55bn, 320acs Aa3/AA/AA- Barc/BNPPFortis/CA-CIB/HSBC/MS UK 24%, Fr 13%, Neth 9%, Scandi 8%,

RoEur 24%, Asia 9%, USA 9%, RoW 4%.

FM 35%, Tsy 23%, CB/OI 17%, HF 9%, PF

6%, Ins 5%, Bks 5%.

MS+23 area - €2.5bn, 80acs -/-/AAA CMZ/Deka/DZ/LBBW/NordLB/Uni Ger 75%, Benelux 17%, Nordics 6%,

Other 2%. Bks 49%, CB/OI 33%, AM

13%, Ins/PF 5%.

MS+15 area, MS+13

area

- €3.6bn Aa1/AA+ BofA/DB/Erste/JPM -

MS+45 area 24 €1.95bn, 80acs Aa2/AA-/AA- BNPP/DB/HSBC/JPM/NatWest Fr 28%, Ger/Aus 21%, Benelux 12%,

Switz 8%, Nordics 8%, UK/Ire 7%, RoEur

2%, Asia 6%, RoW 8%. Bks 57%, FM

21%, CB/OI 15%, Ins/PF 7%.

MS+13 area - >€2.8bn Aaa/AAA/- Barc/CA-CIB/Deka/DZ/LBBW/Uni Ger 51.4%, Fr 15.7%, Benelux 11.5%,

Nordics 7.5%, Aus/Switz 5.2%, RoEur

6.9%, Other 1.8%. Bks 85%, FM 10%,

CB 5%.

MS+6 area 2 >€15bn, 170acs Aaa/AAA/-/Scope

AAA

Citi/HSBC/NatWest/Uni Ger 17%, UK/Ire 13%, Asia 5%, Fr 12%,

CEE 14%, Benelux 9%, Scandi 9%, RoW

21%. CB/OI 43%, Bks 33%, AM 16%,

Other 8%.

MS+58 17 >€1.4bn Aa3/A+/AA- Barc/BNPP/HSBC/RBC/TD -

MS+90 area, MS+88

area

10 €30bn, 382acs Baa3/BBB/BBB/

BBB(high)

Barc/BBVA/CaixaBI/CA-CIB/JPM/MS UK 29.1%, Fr/It/Sp 28.8%, Port 11.4%,

Ger/Aus/Switz 9.2%, Nordics 8.5%,

RoEur 4.9%, N.Amer 3.4%, Asia 2.2%,

Other 2.5%. FM 1.2%, Bks/PB 28.6%,

Ins/PF 8.5%, HF 6.8%, CB/OI 6%, Other

1%.

0 - - Aaa/AAA/AAA SG -

0 - - -/-/AAA Uni -

OLOs+45 area - >€575m A2 Belfius

/DB/HSBC/ING/Natx

-

OLOs+high 40s - >€225m A2 Belfius

/DB/HSBC/ING/Natx

-

MS+15 area, MS+12

(+/-1)

10 >€4.5bn, >60acs Aa1/AAA/AA+ CA-CIB/Citi/DZ/HSBC Fr 24%, Asia 16%, UK 14%, Benelux 11%,

Ger/Aus/Switz 11%, Nordics 9%, N.Amer

7%, Other 8%. Bks/Tsy 39%, AM 31%,

CB/OI/SSA 24%, Ins/PF 6%.

MS+10 area, MS+8

area

- >€7.3bn Aaa/AAA/AAA BNPP/BofA/DZ/JPM Fr 27%, Ger/Aus/Switz 15%, Benelux

15%, RoEur 15%, U.K. 10%, Amers/APAC

18%. AM 45%, Bks 32%, CB/OI 14%, Ins/

PF 8%, Other 1%.

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

6 IFR Bonds 2327 p25-65.indd 55 03/04/2020 20:29:02


GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 3/4/2020 (CONTINUED)


Apr 2 2020 NRW €3bn Apr 9 2030 0.2 99.802 MS+27 / B+67 0.22

Apr 2 2020 NWB SDG housing bond €2bn Apr 14 2023 0 100.548 MS+11 / B+47 -0.182

Apr 3 2020 Berlin €250m incr

(€1bn)

Jan 18 2030 0.1 99.602 MS+20 / B+58.2 0.141

STERLING

Mar 30 2020 KfW £150m incr

(£1.65bn)

Jul 18 2024 0.875 101.951 G+55 0.649

Apr 1 2020 Rentenbank £50m incr

(£1.35bn)

Dec 15 2023 1.125 101.743 - 0.646

SWISS FRANCS

Mar 30 2020 ZKB SFr65m incr

(SFr315m)

Nov 23 2026 0.05 99.995 MS+48 / Eidg+66 0.051

Apr 1 2020 EGW SFr137.5m Apr 27 2040 0.35 101.85 MS+30 /

Eidg+46.5

0.255

NON CORE

Mar 30 2020 IFC SKr450m incr

(SKr3.45bn)

Mar 24 2025 0.375 99.357 - -

Mar 30 2020 Nacka Kommun SKr200m Apr 7 2025 0.56 100 - 0.56

Mar 30 2020 South Australia A$560m Apr 2 2021 Aonia+55 100 Aonia+55 -

Mar 31 2020 EIB SKr3bn May 15 2023 0.275 99.945 MS+15 0.293

Apr 2 2020 Akademiska Hus SKr200m Dec 3 2024 0.79 100 - 0.79

Apr 2 2020 New South Wales A$1.2bn Oct 9 2023 3mBBSW+39 100 3mBBSW+39 -

Apr 2 2020 New South Wales A$2bn incr

(A$4.65bn)

Feb 8 2024 1 100.62 EFP+58 /

ACGB+52

-

CORPORATES

US DOLLARS

Mar 27 2020 Ecolab US$250m Mar 24 2030 4.8 109.686 T+287.5 3.611

Mar 27 2020 Omnicom US$600m Jun 1 2030 4.2 99.62 T+350 4.247

Mar 27 2020 Toyota Motor Credit US$1.75bn Mar 30 2023 2.9 99.989 T+260 2.904

Mar 27 2020 Toyota Motor Credit US$1.25bn Apr 1 2025 3 99.816 T+265 3.04

Mar 27 2020 Toyota Motor Credit US$1bn Apr 1 2030 3.375 99.933 T+265 3.383

Mar 27 2020 ViacomCBS US$1.25bn May 15 2025 4.75 99.498 T+445 4.86

Mar 27 2020 ViacomCBS US$1.25bn Jan 15 2031 4.95 98.037 T+445 5.191

Mar 30 2020 AEP Transmission US$525m Apr 1 2050 3.65 99.964 T+235 3.652

Mar 30 2020 Aflac US$1bn Apr 1 2030 3.6 99.742 T+295 3.631

Mar 30 2020 Anglo American Capital US$750m Apr 1 2025 5.375 99.909 T+500 5.396

Mar 30 2020 Anglo American Capital US$750m Apr 1 2030 5.625 99.434 T+500 5.7

Mar 30 2020 BAT Capital US$900m Apr 2 2027 4.7 100 T+415 4.7

Mar 30 2020 BAT Capital US$1bn Apr 2 2030 4.906 100 T+425 4.906

Mar 30 2020 BAT Capital US$500m Apr 2 2050 5.282 100 T+400 5.282

Mar 30 2020 Exelon US$1.25bn Apr 15 2030 4.05 99.794 T+337.5 4.075

Mar 30 2020 Exelon US$750m Apr 15 2050 4.7 99.886 T+337.5 4.707

Mar 30 2020 Oklahoma G&E US$300m Apr 1 2030 3.5 99.949 T+260 3.256

Mar 30 2020 Oracle US$3.5bn Apr 1 2025 2.5 99.963 T+210 2.508



Mar 30 2020 Oracle US$3bn Apr 1 2041 3.6 99.731 T+225 3.619



Mar 30 2020 Southern California Edison US$600m Aug 1 2025 3.7 102.645 T+275 3.141

Mar 30 2020 Sysco US$750m Apr 1 2025 5.65 99.931 T+525 5.666

Mar 30 2020 Sysco US$1.25bn Apr 1 2030 5.95 99.792 T+525 5.978

Mar 30 2020 Sysco US$750m Apr 1 2040 6.6 99.802 T+525 6.618

Mar 30 2020 Sysco US$1.25bn Apr 1 2050 6.6 99.767 T+525 6.618

Mar 30 2020 TJX US$1.25bn Apr 15 2025 3.5 99.596 T+320 3.588

6 IFR Bonds 2327 p25-65.indd 56 03/04/2020 20:29:02




MS+30 area - >€6.75bn Aa1/AA/AAA Barc/Citi/LBBW/NatWest/TD -

MS+14 area, MS+13

area

13 >€2.8bn, 60acs Aaa/AAA Danske/HSBC/MS/NatWest GerAus 26%, Nordics 21%, UK 12%,

Benelux 10%, Amers 10%, S.Eur 6%, Fr

5%, Switz 4%, Other 6%. FM 37%, Bks

30%, CB/OI 22%, Ins/PF 11%.

MS+20(#) - - Aa1/-/AAA/AAA

Scope

BLB -

- - - Aaa/AAA/-/Scope

AAA

MS -

- - - Aaa/AAA/AAA MS -

MS+46/+48 - - Aaa/AAA/AAA ZKB -

MS+30/35 - - ZKB AAA ZKB -

- - - Aaa/AAA/AAA SEB Alecta, Folksamgruppen and

LÃ¤nsfÃ¶rsÃ¤kringar AB.

- - - -/AAA Danske -

Aa1/AA+ ANZ

- - - Aaa/AAA/AAA Nordea/Swed -

- - - -/AA Danske -

3mBBSW+36/40 Aaa/AAA CBA/Citi/UBS/WBC -

EFP+55/59 Aaa/AAA CBA/Citi/UBS/WBC -

T+325 area 5.5 US$2.3bn Baa1/A- Citi/BofA/GS

T+low 400’s 65 US$2.6bn BBB+ BNPP/Miz/USB

T+280 area 32 US$3bn AA- BofA/MS/RBC

T+280 area 37 US$2bn AA- BofA/MS/RBC

T+290 area 25 US$3.7bn AA- BofA/MS/RBC

T+460 area 79 US$2.3bn Baa2/BBB/BBB BofA/GS/JPM/MS

T+460 area 62 US$2.53bn Baa2/BBB/BBB BofA/GS/JPM/MS

T+275/287.5 5 US$3.3bn A2/A-/A GS/Key/MUFG/SMBC/USB

T+340 area 25 US$4.8bn A3/A- GS/Miz/MS/SMBC/WFS

T+525 area 80 US$1.9bn Baa2/BBB Citi/Miz/EBC/StCh

T+525 area 80 US$2.2bn Baa2/BBB Citi/Miz/EBC/StCh

T+450 area 35 US$3.8bn Baa2/BBB+ BofA/Barc/Citi/Miz/sANT



T+412.5 area 17.5 US$7bn Baa2/BBB/BBB+ BofA/Barc/GS/JPM/WFS

T+412.5 area 17.5 US$6.3bn Baa2/BBB/BBB+ BofA/Barc/GS/JPM/WFS

T+300 area 12 US$1bn A3/A-/A Miz/RBC/WFS

T+250 area,

T+210 (the #)

38 US$9.25bn A1/A+/A BofA/BNY/JPM/WFS

T+265 area,

T+225 (the #)


T+265 area,

T+225 (the #)


T+265 area,

T+225 (the #)


T+265 area,

T+225 (the #)


T+290 area,

T+250 (the #)


T+287.5 area,

T+275 (the #)

5 US$1.2bn A3/A-/BBB+ JPM/MS/TD

T+575 area 125 US$5.7bn Baa1/BBB-/BBB BofA/DB/GS/TD/WFS




T+350 area 75 US$4.8bn A2/A BofA/DB/USB(a)/HSBC/JPM(p)

6 IFR Bonds 2327 p25-65.indd 57 03/04/2020 20:29:02




Mar 30 2020 TJX US$750m Apr 15 2027 3.75 99.931 T+320 3.761

Mar 30 2020 TJX US$1.25bn Apr 15 2030 3.875 99.875 T+320 3.89

Mar 30 2020 TJX US$750m Apr 15 2050 4.5 99.411 T+320 4.536

Mar 30 2020 Ventas Realty LP/Ventas

Capital

US$500m Nov 15 2030 4.75 97.862 T+430 5.011

Mar 30 2020 Wisconsin Power & Light US$350m Apr 1 2050 3.65 99.873 T+235 3.657

Mar 31 2020 AIA Group US$1bn Apr 7 2030 3.375 99.706 T+275 3.41

Mar 31 2020 Ameren US$800m Jan 15 2031 3.5 99.763 T+285 3.527

Mar 31 2020 Ameriprise Financial US$500m Apr 2 2025 3 99.577 T+275 3.092

Mar 31 2020 Athene Holding US$500m Apr 3 2030 6.125 99.808 T+550 6.176

Mar 31 2020 Crown Castle International US$750m Jul 1 2030 3.3 99.179 T+270 3.396

Mar 31 2020 Crown Castle International US$500m Jul 1 2050 4.15 98.9 T+285 4.215

Mar 31 2020 Dominion Energy Gas

Holdings

US$1.5bn Apr 1 2030 3.375 98.995 T+280 3.495

Mar 31 2020 DTE Electric US$600m Mar 1 2031 2.625 99.832 T+195 2.643

Mar 31 2020 Edison int’l US$400m Apr 3 2025 4.95 99.769 T+462.5 5.002

Mar 31 2020 Fox US$600m Apr 7 2025 3.05 99.844 T+275 3.084

Mar 31 2020 Fox US$600m Apr 8 2030 3.5 99.799 T+287.5 3.524

Mar 31 2020 General Mills US$750m Apr 15 2030 2.875 99.8 T+225 2.898

Mar 31 2020 Idaho Power US$230m Mar 1 2048 4.2 113.763 T+210 3.422

Mar 31 2020 San Diego Gas & Electric US$400m Apr 15 2050 3.32 99.867 T+200 3.327

Mar 31 2020 Visa US$1.5bn Apr 15 2027 1.9 99.718 T+140 1.943

Mar 31 2020 Visa US$1.5bn Apr 15 2030 2.05 99.855 T+140 2.066

Mar 31 2020 Visa US$1bn Apr 15 2040 2.7 99.264 T+140 2.748

Apr 1 2020 Anheuser-Bush InBev US$1.75bn Jun 1 2030 3.5 99.79 T+290 3.524

Apr 1 2020 Anheuser-Bush InBev US$1bn Jun 1 2040 4.35 99.937 T+305 4.354

Apr 1 2020 Anheuser-Bush InBev US$2.25bn Jun 1 2050 4.5 99.924 T+320 4.504

Apr 1 2020 Anheuser-Bush InBev US$1bn Jun 1 2060 4.6 99.916 T+330 4.604

Apr 1 2020 Carnival US$4bn Apr 1 2023 11.5 99 T+1162 11.901

Apr 1 2020 Dollar General US$1bn Apr 3 2030 3.5 99.933 T+287.5 3.508

Apr 1 2020 Dollar General US$500m Apr 3 2050 4.125 98.997 T+287.5 4.184

Apr 1 2020 Equinor ASA US$1.25bn Apr 6 2025 2.875 99.972 T+250 2.881

Apr 1 2020 Equinor ASA US$500m Apr 6 2027 3 99.506 T+255 3.079


Apr 1 2020 Equinor ASA US$500m Apr 6 2040 3.625 99.072 T+240 3.691


Apr 1 2020 NextEra US$1.25bn May 15 2025 2.75 99.858 T+240 2.78

Apr 1 2020 PPL Capital US$1bn Apr 15 2030 4.125 99.966 T+350 4.129

Apr 1 2020 Penske Truck Leasing US$500m Jul 15 2025 4 99.676 T+370 4.07

Apr 1 2020 Shell International Finance

BV

US$1.5bn Apr 6 2025 2.375 99.78 T+205 2.422


BV

US$1bn Apr 6 2030 2.75 99.939 T+215 2.757


BV

US$1.25bn Apr 6 2050 3.25 97.783 T+210 3.368

Apr 1 2020 Southern US$1bn Apr 30 2030 3.7 99.747 T+310 3.73

Apr 2 2020 BP Capital Markets US$750m Apr 6 2023 2.937 100 T+265 2.937



Apr 2 2020 BP Capital Markets US$1.25bn Apr 6 2030 3.633 100 T+300 3.633

6 IFR Bonds 2327 p25-65.indd 58 03/04/2020 20:29:02






T+362.5 area 62.5 US$5.3bn A2/A BofA/DB/USB(a)/HSBC/JPM(p)

T+400 area 78 n/a Baa1/BBB+/BBB+ BofA/WFS

T+287.5 area 45 US$2.3bn A3/A BofA/JPM/WFS

T+325 area 15 US$6.4bn A2/A/A+ Citi/GS/HSBC/MS/StCh/WFS

T+350 area 3 US$3.8bn Baa1/BBB/ GS/JPM

T+275 (#) 15 US$2.4bn A3/A/ Bofa/CS/GS/HSBC

T+550 area,

T+550 (the #)

58 US$860m /BBB+/BBB+ Barc/JPM/RBC/WFS

T+350, T+280 (+/-5) -5 US$6.9bn Baa2/BBB-/BBB BofA/MS

T+362.5

T+295 (+/-5)

-5 US$6bn Baa2/BBB-/BBB BofA/MS

T+337.5 area -5 US$4.25bn Baa2/BBB/BBB+ Bofa/RBC/Scotia/SMBC/Sun/USB

T+235 area,

T+200 (+/-5)

6 US$1.5bn Aa3/A/A+ Barc/JPM/SCOT

T+550 area 92.5 US$4.25bn Baa3/BBB-/BBB- JPM/MS/TD

T+337.5 area 19 US$6bn Baa2/BBB Citi/JPM

T+337.5 area 12.5 US$6bn Baa2/BBB Citi/JPM

T+275 area 15 n/a Baa2/BBB/BBB Bofa/MS

T+230 area - US$800m A1/A- JPM/WFS

T+250 area 5 US$2.8bn A2/A/A WFS/Miz/RBC/BMO/BBVA

T+190 area,

T+145 (+/-5)

4 US$9.2bn Aa3/AA- BofA/JPM/RBC/WFS

T+190 area,

T+145 (+/-5)

-1 US$7.9bn Aa3/AA- BofA/JPM/RBC/WFS

T+185 area,

T+145 (+/-5)

0 US$8bn Aa3/AA- BofA/JPM/RBC/WFS

T+330 area 10 US$3.7bn Baa1/A- BofA/Barc/BNPP/Citi/DB/JPM -




12% (oid 99),

11.50% (OID 99.00)

- - - BofA/JPM/GS -

T+337.5 area 22.5 US$5.6bn Baa2/BBB Bofa/Citi/GS -

T+337.5 area 22.5 US$4.2bn Baa2/BBB Bofa/Citi/GS -

T+270 area 55 US$2bn Aa2/AA- BofA/Barc/Citi/JPM -


T+280 area 56 US$2.5bn Aa2/AA- BofA/Barc/Citi/JPM -

T+260 area 47 US$1.5bn Aa2/AA- BofA/Barc/Citi/JPM -


T+312.5 area,

T+240 (the #)

8 US$5.1bn Baa1/BBB+/A BNPP/CA-CIB/CS/Scot/TD -

T+375-387.5

T+350 (the #)

60 US$1.9bn Baa2/BBB+ CS/JPM/MS -

T+400 area,

T+375 (+/-5)

77 US$1.2bn Baa2/BBB+/BBB+ USB/BofA/FITB/JPM/WFS -

T+250 area 17 US$3.6bn Aa2/AA- BofA/Barc/MS/WFS -



T+337.5/350 36 US$2.8bn Baa2/BBB+/BBB+ BNPP/Citi/GS/MUFG/STRH -

T+300 area 21 US$2.4bn A1/A- BofA/BNPP/Citi/HSBC/JPM/MS(a)/

CA-CIB/GS/MUFG/NatWest/Santan/

SG



SG



SG



SG

6 IFR Bonds 2327 p25-65.indd 59 03/04/2020 20:29:03




Apr 2 2020 Evergy Kansas US$500m Apr 15 2050 3.45 99.591 T+220 3.472

Apr 2 2020 Paccar Financial US$400m Apr 6 2023 2.65 99.949 T+240 2.668

Apr 2 2020 Ross Stores US$700m Apr 15 2025 4.6 99.866 T+425 4.63




Apr 2 2020 Ryder System US$400m Jun 1 2025 4.625 99.981 T+425 4.627

Apr 2 2020 T-Mobile US$3bn Apr 15 2025 3.5 99.977 T+312.5 3.505

Apr 2 2020 T-Mobile US$4bn Apr 15 2027 3.75 99.957 T+325 3.757

Apr 2 2020 T-Mobile US$7bn Apr 15 2030 3.875 99.278 T+337.5 3.963



Apr 2 2020 Transcanada Pipelines US$1.25bn Apr 15 2030 4.1 99.836 T+350 4.12

Apr 2 2020 Vmware US$750m May 15 2025 4.5 99.949 T+412.5 4.51



EUROS

Mar 30 2020 AB InBev €1.75bn Apr 2 2040 3.7 99.485 MS+355 / B+397.5 3.737

Mar 30 2020 AB InBev €1.75bn Apr 2 2032 2.75 99.99 MS+285 / B+338.9 2.876

Mar 30 2020 AB InBev €1bn Dec 2 2027 2.125 0 MS+230 / B+278.1 -

Mar 30 2020 Thermo Fisher Scientific €600m Apr 15 2032 2.375 98.94 MS+245 / B+299.5 2.478

Mar 30 2020 Thermo Fisher Scientific €600m Apr 15 2027 1.75 99.19 MS+205 / B+252.4 -

Mar 30 2020 Volkswagen Financial

Services

€800m Apr 6 2028 3.375 99.463 MS+360 / B+408.9 3.453


Services

€700m Apr 6 2025 3 99.598 MS+335 / B+380.1 3.088


Services

€650m Apr 6 2023 2.5 99.775 MS+290 / B+332.6 2.579

Mar 31 2020 Airbus €750m Apr 7 2025 1.625 99.549 MS+195 / B+238.7 1.72

Mar 31 2020 Airbus €750m Apr 7 2028 2 99.627 MS+215 / B+260.9 2.051

Mar 31 2020 Airbus €1bn Apr 7 2032 2.375 98.993 MS+240 / B+292.4 2.473

Mar 31 2020 Daimler €1.5bn Apr 7 2025 2.625 99.598 MS+295 / B+339.9 2.712

Mar 31 2020 Fresenius €750m Oct 8 2027 1.625 99.021 MS+190 / B+237.1 1.766

Mar 31 2020 Orange €750m Apr 7 2032 1.625 99.01 MS+165 / B+218.3 1.717

Mar 31 2020 Orange €750m Jul 7 2027 1.25 99.891 MS+140 / B+187.7 1.266

Mar 31 2020 Vonovia €500m Apr 7 2024 1.625 99.831 MS+195 / B+236.5 1.669

Mar 31 2020 Vonovia €500m Apr 7 2030 2.25 98.908 MS+240 / B+285.8 2.374

6 IFR Bonds 2327 p25-65.indd 60 03/04/2020 20:29:03




T+250 area 19 US$1.2bn A2/A MUFG/USB/WFS

T+312.5 area 5 US$1.6bn A1/A+ BNPP/JPM/MUFG/USB

T+425 area 110 US$1bn A2/BBB+ BofA/JPM

T+425 area 110 US$675m A2/BBB+ BofA/JPM



T+425 area 68 US$725m Baa1/BBB/BBB+ Lloyds/MUFG/PNC/USB/WFS

T+350 area,

T+325 (+/-12.5)

- US$11.6bn Baa3/BBB-/BBB Barc/DB/GS(a)/CS/MS/RBC/BNPP/

CMZ/CA-CIB/TD/WFS

T+362.5 area,

T+337.5 (+/-12.5)


CMZ/CA-CIB/TD/WFS

T+375 area,

T+350 (+/-12.5)


CMZ/CA-CIB/TD/WFS

T+337.5 area,

T+337.5 (+/-12.5)


CMZ/CA-CIB/TD/WFS

T+337.5 area,

T+337.5 (+/-12.5)


CMZ/CA-CIB/TD/WFS

T+375 area 11 US$3.6bn Baa1/BBB+/A- Citi/JPM

T+450 area,

T+425 (+/-12.5)

48.5 US$2.7bn Baa2/BBB-/BBB- Bofa/Citi/JPM

T+450 area,

T+425 (+/-12.5)


T+450 area,

T+425 (+/-12.5)


MS+375 area,

MS+355/+360

69 €6.8bn Baa1/A- BNPP/BofA/DB/ING/Santan -

MS+305 area,

MS+285/+290


MS+265 area,

MS+235/+240


MS+285 area,

MS+250/+255

25 ~€4.6bn Baa1/BBB+/BBB JPM/MS/BofA/Citi -

MS+245 area,

MS+210/+215

25 >€4.6bn Baa1/BBB+/BBB JPM/MS/BofA/Citi -

MS+390 area,

MS+365 (+/-5)

75 ~€2.2bn A3/BBB+ BofA/JPM/MUFG/Santan/Uni UK 51%, Fr 15%, Ger/Aus 18%, Benelux

7%, Iberia 2%, Nordics 2%, It 2%, Switz

2%, Other 1%. FM/AM 76%, Ins 13%, Bks

4%, OI 2%, Other 5%.

MS+360 area,

MS+340 (+/-5)


16%, Iberia 3%, Nordics 5%, Switz 1%,

Other 1%. FM/AM 75%, Ins 15%, Bks 3%,

OI 2%, Other 5%.

MS+315 area,

MS+295 (+/-5)


7%, Iberia 11%, Nordics 4%, It 9%, Switz

6%, Other 4%. FM/AM 67%, Ins 18%,

Bks 9%, OI 2%, Other 4%.

MS+235 area,

MS+205/+210

34 ~€3bn A2/A+ BNPP/CA-CIB/HSBC/JPM/SG/Uni/

Santan/Natx/BofA/GS/NatWest

-

MS+255 area,

MS+225/+230

49 ~€2.5bn A2/A+ BNPP/CA-CIB/HSBC/JPM/SG/Uni/

Santan/Natx/CMZ/DB/SMBC

-

MS+280 area,

MS+250/255

69 ~€5.5bn A2/A+ BNPP/CA-CIB/HSBC/JPM/SG/Uni/

Santan/Natx/BBVA/Miz/RBC

-

MS+325/+335,

MS+295/+300

65 >€3.3bn A3/BBB+/A- BNPP/DB/JPM/Santan -

MS+235 area,

MS+200 area

25 €3.5bn Baa3/BBB/BBB- BNPP/BofA/CS/ING -

MS+215 area,

MS+175/180

6 €6.8bn Baa1/BBB+/BBB+ BNPP/BofA/JPM/MS/MUFG/Santan -

MS+190 area,

MS+150/+155

13 €7.4bn Baa1/BBB+/BBB+ BNPP/BofA/JPM/MS/MUFG/Santan -

MS+235 area,

MS+200 (+/-5 )

28 >€3.1bn -/Scope A- CMZ/DB/MS/SG Ger/Aus 25%, UK/Ire 13%, Fr 27%, Nordics

10%, S.Eur 5%, Benelux 16%, Switz 3%,

Other 1%. FM 58%, OI/Agcy 20%, Bks/

PWM 6%, Ins/PF 15%, Other 1%.

MS+280 area,

MS+245 (+/-5)

38 ~€3.7bn -/Scope A- CMZ/DB/MS/SG Ger/Aus 24%, UK/Ire 32%, Fr 21%,

Nordics 6%, S.Eur 3%, Benelux 8%, Switz

4%, Other 2%. FM 70%, OI/Agcy 11%,

Bks/PWM 3%, Ins/PF 15%, Other 1%.

6 IFR Bonds 2327 p25-65.indd 61 03/04/2020 20:29:03




Apr 1 2020 APRR €500m Jan 14 2027 1.25 99.507 MS+150 / B+193.3 1.327

Apr 1 2020 Deutsche Bahn €900m Apr 9 2027 0.5 99.303 MS+75 / B+120.1 0.602

Mar 31 2020 E.ON €750m Oct 7 2025 1 99.55 MS+130 -

Apr 1 2020 Iberdrola €750m Jun 16 2025 0.875 99.784 MS+115 / B+156.6 0.918

Apr 1 2020 LVMH €1.5bn Apr 7 2025 (Jan 2025) 0.75 99.717 MS+105 / B+146.4 0.808

Apr 1 2020 Pernod Ricard €750m Apr 7 2025 1.125 99.354 MS+150 / B+190.4 1.259

Apr 1 2020 Pernod Ricard €750m Apr 8 2030 1.75 99.528 MS+185 / B+227.3 1.802

Apr 1 2020 Schiphol €750m Apr 6 2029 2 99.764 MS+210 / B+254.3 2.029

Apr 1 2020 Total €1.5bn Apr 8 2027 1.491 100 MS+165 / B+209.3 1.491

Apr 1 2020 Total €1.5bn Apr 8 2032 1.994 100 MS+195 / B+245.3 1.994

Apr 1 2020 Transurban €600m Apr 8 2030 3 99.371 MS+310 / B+354.2 3.074

Apr 2 2020 BAT €850m Apr 7 2028 3.125 99.284 MS+335 / B+376.3 3.228

Apr 2 2020 BAT €850m Oct 7 2024 2.375 99.477 MS+275 / B+313.2 2.501

Apr 2 2020 BP €1bn Apr 7 2024 1.876 100 MS+215 / B+253.1 1.876

Apr 2 2020 BP €1bn Apr 7 2028 2.519 100 MS+265 / B+306.7 2.519

Apr 2 2020 BP €1.25bn Apr 7 2032 2.822 100 MS+280 / B+324.8 2.822

Apr 2 2020 Grand City Properties €600m Apr 9 2024 1.7 98.545 MS+235 / B+271.8 2.083

Apr 2 2020 HeidelbergCement €650m Oct 9 2024 2.5 99.605 MS+285 / B+323.8 2.596

Apr 2 2020 OMV €500m Apr 9 2024 1.5 99.309 MS+195 / B+231.3 1.68

Apr 2 2020 OMV €500m Apr 9 2028 2 99.846 MS+215 / B+255.2 2.021

Apr 2 2020 OMV €750m Apr 9 2032 2.375 99.505 MS+240 / B+285.5 2.423

Apr 2 2020 Schneider €500m Apr 9 2027 1 99.423 MS+125 / B+166.6 1.086

Apr 2 2020 Shell €1bn Apr 7 2024 1.125 99.79 MS+145 / B+180.9 1.179

Apr 2 2020 Shell €1bn Apr 7 2028 1.5 99.47 MS+170/ B+210.60 1.571

Apr 2 2020 Shell €1bn Apr 7 2032 1.875 99.469 MS+190 / B+235.5 1.925

Apr 2 2020 Unibail-Rodamco-Westfield €600m Apr 9 2025 2.125 99.817 MS+240 / B+277.5 2.164

Apr 2 2020 Unibail-Rodamco-Westfield €800m Apr 9 2030 2.625 99.972 MS+280 / B+319.3 -

Apr 3 2020 Danaher Corp €300m incr

(€800m)

Sep 30 2026 2.1 100.842 MS+215 / B+254.8 1.961


(€900m)

Mar 30 2024 1.7 100.298 MS+190 / B+228.3 1.622


(€800m)

Mar 30 2030 2.5 102.166 MS+230 / B+269.9 2.255

Apr 3 2020 Red Electrica Corp €400m Apr 14 2025 0.875 99.606 MS+120 / B+160.6 0.956

6 IFR Bonds 2327 p25-65.indd 62 03/04/2020 20:29:03




MS+185 area,

MS+155/+160

26 ~€2.4bn -/A-/A- BBVA/BNPP/CM-CIC

/CMZ/Medio/MUFG/Saba

/SG/LBP

Fr 58%, Ger/Aus 15%, S.Eur 9%, Benelux

9%, UK/Ire 7%, Other 2%. AM 50%, Ins/

PF 33%, OI 8%, Bks/PB 7%, Other 2%.

MS+105 area,

MS+80 area

1 >€4.3bn Aa1/AA/-/ESG

ratings from MSCI

(A),ISS ESG (Prime,

B-) and CDP (A)

DZ/HSBC/ING/SEB -

MS+180 area,

MS+140/+145

5 ~€6bn Baa2/BBB/- GS/ING/Uni -

MS+170 area,

MS+130 area

0 >€8.75bn Baa1/BBB+/A- BcaIMI/BBVA/CA-CIB/Citi/HSBC/

Miz/Santan/Uni

-

MS+155 area,

MS+115 area

3 ~€5.9bn A1/A+ CA-CIB/CIC/Citi/HSBC/Natx/SG -

MS+180/+185,

MS+150/+155

24 €3bn Baa1/BBB+ BNPP/JPM/SG/Barc/Citi/HSBC/

Natx/CIC/SEB

-

MS+215/+220,

MS+185/+190

- €2.5bn Baa1/BBB+ BNPP/JPM/SG/Barc/Citi/HSBC/

Natx/CIC/SEB

-

MS+250 area,

MS+220 area

- >€3.5bn A1/A+ ABN/BNPP/ING/Rabo -

MS+205/+210,

MS+170/+175

31 >€6.5bn Aa3/A+ BNPP/BofA/CA-CIB/DB/HSBC/SG -

MS+205/+210,

MS+200/+205

29 >€6.9bn Aa3/A+ BNPP/BofA/CA-CIB/DB/HSBC/SG -

MS+325 area 60 €1.05bn Baa1/BBB+/A- BNPP/BofA/Citi/MUFG -

MS+370 area,

MS+335/+340

67 >€2.9bn Baa2/BBB+ BBVA/Citi/DB/Lloyds/NatWest Ger/Aus/Switz 35%, UK/Ire 32%,

Benelux 15%, S.Eur 11%, Nordics 4%, Fr

1%, Other 2%. FM 58%, OI 15%, Ins/PF

10%, Bks/PB 13%, Other 4%.

MS+310 area,

MS+275/+280

45 >€2.8bn Baa2/BBB+ BBVA/Citi/DB/Lloyds/NatWest UK/Ire 26%, Ger/Aus/Switz 26%, S.Eur

25%, Benelux 13%, Nordics 7%, France

1%, Other 2%. FM 64%, OI 14%, Bks/PB

14%, Ins/PF 5%, Other 2%.

MS+240 area,

MS+220 (+/-5)

43 >€1.6bn A1/A- BNPP/CMZ/DB/Lloyds/SMBC Nikko -

MS+290 area,

MS+270 (+/-5)


MS+310 area,

MS+285 (+/-5)


MS+245/+250 - >€1.1bn Baa1/BBB+ HSBC/DB/GS/MS -

MS+310 area,

MS+285/290

48 >€1.1bn Baa3/BBB-/BBB- BcaIMI/BNPP/BofA/CA-CIB/Danske/

DB/ING/StCh

-

MS+215 area 60 ~€800m A3/-/A- Barc/CA-CIB/MUFG/SG/Uni -

MS+235 area 60 ~€800m A3/-/A- Barc/CA-CIB/MUFG/SG/Uni -

MS+260 area 65 ~€1.25bn A3/-/A- Barc/CA-CIB/MUFG/SG/Uni -

MS+185 area,

MS+135 area

5 >€7.4bn A3/A- BNPP/CA-CIB/HSBC/BofA/JPM/

MUFG/SG

-

MS+190 area,

MS+155 area

12 >€3.5bn Aa2/AA- BofA/Barc/MS/WFS -

MS+215 area,

MS+180 area

16 >€3.25bn Aa2/AA- BofA/Barc/MS/WFS -

MS+235 area,

MS+200 area

- >€4.75bn Aa2/AA- BofA/Barc/MS/WFS -

MS+265 area,

MS+245 area

57 €1.25bn A3/A- BNPP/BofA/CA-CIB/Barc/BBVA/

CM-CIC/DB/HSBC/ING/Intesa SP/

Miz/MUFG/Natx/NatWest/Santan/

SG/RBC/ABN/CMZ/GS/JPM/Lloyds/

SEB/SMBC/HCM/Uni

-

MS+310 area,

MS+285 area

51 €1.85bn A3/A- BNPP/BofA/CA-CIB/Barc/BBVA/

CM-CIC/DB/HSBC/ING/Intesa SP/

Miz/MUFG/Natx/NatWest/Santan/

SG/RBC/ABN/CMZ/GS/JPM/Lloyds/

SEB/SMBC/HCM/Uni

-

MS+215 (#) - - Baa1/BBB+ BNPP/BofA/DB/JPM -



MS+165 area,

MS+130 (+/-5)

- €2bn -/BBB+/BBB+ Barc/BBVA/Citi/BcaIMI/Santan -

6 IFR Bonds 2327 p25-65.indd 63 03/04/2020 20:29:03




STERLING

Mar 31 2020 Experian £400m Apr 7 2032 3.25 99.296 G+280 3.295

Mar 31 2020 Optivo £250m Oct 7 2035 2.857 100 G+230 2.857

Apr 2 2020 Volkswagen Financial

Services

£350m Oct 9 2025 4.25 99.38 G+425 4.337

Apr 3 2020 Sanctuary Capital £350m Apr 14 2050 2.375 98.121 G+170 2.464

SWISS FRANCS

Apr 2 2020 LafargeHolcim Helvetia

Finance

SFr250m Apr 11 2022 1.05 100.02 MS+165 / Eidg+168 1.04

Apr 3 2020 Lonza SFr300m Apr 28 2023 1 100.015 MS+160 /

Eidg+155.9

0.995

NON CORE

Mar 30 2020 Electrolux NKr500m Apr 1 2025 2.8 100 - 2.8

Mar 30 2020 Rikshem SKr100m incr

(SKr600m)

Feb 3 2025 0.828 95.332 - -

Mar 30 2020 Vattenfall SKr4.1bn Oct 1 2021 1.75 0 - -

Apr 3 2020 Volvo Treasury NKr1.15bn Apr 5 2023 3mN+200 100 3mN+200 -

FINANCIALS

US DOLLARS

Mar 27 2020 Credit Suisse US$3bn Apr 1 2031

(Apr 2030)

4.194 100 T+350 4.194

Apr 1 2020 Citigroup US$3.5bn Apr 8 2026

(Apr 2025)

3.106 100 T+275 3.106

Apr 2 2020 Lloyds Banking Group US$1.5bn Jul 9 2025

(Jul 2024)

3.87 100 T+350 3.87

EUROS

Apr 2 2020 Lloyds Bank Corporate

Markets

€1bn Apr 9 2026 2.375 99.344 MS+270 / B+309.4 2.494

Apr 3 2020 LeasePlan €500m Apr 9 2025 3.5 99.964 MS+375 / B+413.6 3.508

COVERED BONDS

US DOLLARS

Mar 27 2020 TD US$1.25bn Apr 3 2023 1.45 99.942 T+100 / T+114.25 1.47

EUROS

Apr 1 2020 Credit Agricole €2bn Dec 16 2024 0.125 99.87 MS+40 / B+78.2 0.153

Apr 1 2020 Oma Savings Bank €250m Apr 6 2023 0.125 99.631 MS+55 / B+95.2 0.249

Apr 2 2020 CMCICB €1.75bn Apr 9 2025 0.125 99.826 MS+40 / B+75.9 0.16

SWISS FRANCS

Mar 31 2020 BNS SFr355m incr

(SFr830m)

Nov 19 2025 0.2 100.211 MS+63 / Eidg+79 0.162

Mar 31 2020 PSHypo SFr501m Aug 13 2027 0.125 100.374 MS+43 / Eidg+55.8

/ Saron+51.6

0.074

Mar 31 2020 PSHypo SFr264m Jun 22 2040 0.5 101.724 MS+43 / Eidg+56.4

/ Saron+52.6

0.411

Apr 3 2020 BMO SFr325m Dec 22 2023 0.096 100 MS+68 / Eidg+74 0.096

NON CORE

Apr 2 2020 CIBC Sydney A$600m Apr 14 2023 3mBBSW+125 100 3mBBSW+125 -

Apr 3 2020 TD Bank A$1.25bn Apr 14 2023 3mBBSW+125 100 3mBBSW+125 -

Apr 3 2020 Sparbanken Skane SKr700m Oct 14 2022 3mS+75 101.41 3mS+19 -

HIGH YIELD

US DOLLARS

Mar 30 2020 YUM!Brands US$600m Apr 1 2025

(Apr 2022)

7.75 100 T+737 7.75

Apr 2 2020 Restaurant Brands

International

US$500m Apr 15 2025

(Apr 2022)

5.75 100 T+537 5.75

Apr 2 2020 Tenet Healthcare Corp US$700m Apr 1 2025

(Apr 2022)

7.5 100 T+713 7.5

Apr 2 2020 TransDigm US$1.1bn Dec 15 2025

(Dec 2023)

8 100 T+756 8

6 IFR Bonds 2327 p25-65.indd 64 03/04/2020 20:29:03




G+300 area, - £2.2bn Baa1/A- Barc/BofA/BNPP/SG -

G+250 area,

G+235/+240

- £900m A2 BNPP/HSBC -

G+445 area, G+430

area

- £700m A3/BBB+ NatWest/HSBC -

G+200 area, G+175

area

- >£1.5bn A2/A+ Barc/HSBC/Lloyds -

MS+160/+170,

MS+160/+170

- >SFr250m Baa2/BBB BNPP/CMZ/CS/UBS Switz 100%. AM 46%, Bks/PB 29%, PF

13%, Ins 10%, Tsy 2%.

MS+160/+175,

MS+160/+165

- >75acs -/BBB+ CS/UBS/ZKB (2/3 leads) Switz 100%. AM 46.5%, PB

35.5%, PF 8%, Tsy 6%, Ins 4%.

- - - NR SEB -

- - - -/A- SEB -

- - - A3/BBB+ SEB/Sven -

- - - A3/A- SEB -

T+387.5 area 31 US$6.8bn Baa2/BBB+/A- CS -

T+312.5 area,

T+275 (the #)

25 US$7bn A3/BBB+/A Citi -

T+375 area 26 US$3.7bn A3/BBB+/A+ GS/JPM/Lloyds/MS/WFS -

MS+300 are,

MS+270 (#)

50 >€3.25bn A1/A/A+ Lloyds/Miz/Santan/UBS Fr 25%, UK/Ire 24%, Ger/Aus/Switz

19%, S.Eur 14%, Benelux 9%, Nordics

5%, Other 4%. FM 72%, Ins/PF 12%,

Bks/PB 11%, CB/OI 4%, Other 1%.

Ms+375 area - €650m Baa1/BBB-/BBB+ Danske/HSBC/ING/JPM/SG -

T+100 area - >US$1.35bn Aaa/-/-/AAA CS/TD/UBS -

MS+40 23 >€3.75bn, ~100acs Aaa/AAA/AAA CA-CIB/CMZ/LBBW/Natx/Santan Ger 51.4%, Fr 15.7%, Benelux 11.5%, Nordics

7.5%, Aus/Switz 5.2%, RoEur 6.9%, Other

1.8%. Bks 85%, FM 10%, CB 5%.

MS+60 area - >€560m -/AAA/- LBBW/Nordea/SEB -

MS+40 area 20 >€2.6bn, 90acs Aaa/AAA/AAA CMZ/JPM/Natx/UBS Fr 39%, Ger/Aus 28%, Nordics 12%, UK 7%,

Benelux 5%, Switz 4%, It 3%, Other 2%. Bks

41%, Govt/Agcy 36%, AM 20%, Ins/PF 3%.

- - 23acs Aaa/-/AAA/AAA UBS Switz 100%. Tsy 81%, AM 12%, PF 5%,

Bks/PB 1%, Ins 1%.

- - - Aaa CS/Raiff/UBS -

- - - Aaa CS/Raiff/UBS -

MS+68 (#) - SFr325m, 26acs Aaa/-/AAA/AAA UBS Switz 100%. Tsy 74%, AM 13%, Bks/PB

5%, Ins 4%, PF 4%.

3mBBSW+125 area - - Aaa/-/AAA HSBC/NAB/WBC/CIBC -

3mBBSW+125 area - - Aaa/-/-/AAA ANZ/CBA/NAB/TD/WBC -

- - - -/AAA HCM -

7.75%/8% - - B1/B+ GS/WFS/Citi/JPM/BofA/MS -

6% area,

5.75%

- - Ba2/BB+ JPM/MS/WFS/BofA/Barc/RBC -

7.5%/7.75%,

7.5%

- - Ba3/BB- Barc/BofA/Capone/Citi/DB/GS/JPM/

RBC/STRH/WFS/Scotia/Santan

-

8%/8.25% - - Ba3 MS/CS/Citi/Barc/GS/CA-CIB/RBC/

PNC/HSBC/JPM/KKR

-

6 IFR Bonds 2327 p25-65.indd 65 03/04/2020 20:29:04

66 International Financing Review April 4 2020

GLOBAL DEBT: SOVEREIGN FOREIGN CURRENCY LONG-TERM RATINGS (3/4/2020)

1 Moody’s Government Bonds

2 Moody’s Country Ceilings

3 S&P Government Bonds

4 S&P Transfer and

Convertibility Assessments

5 Fitch Government Bonds

6 Fitch Country Ceilings

p Positive outlook/on watch

for upgrade

n Negative outlook/on watch

for downgrade

N New rating

W Rating withdrawn

SD Selective default

* Taken off positive watch/

outlook

** Taken off negative watch/

outlook

Improvement in ratings,

outlook or watch status

Deterioration in ratings,

outlook or watch status

Moody’s S&P Fitch Sovereign 1 2 3 4 5 6

Moody’s S&P Fitch Sovereign 1 2 3 4 5 6

Abu Dhabi Aa2 – AA AA+ AA AA+

Albania B1 Ba2 B+ BB – –

Andorra – Ba2 BBB AAA BBB+ A+

Angola B3 B2 CCC+ CCC+ B– B–

Argentina Caa2 Caa1 CC n B– CC CCC

Armenia Ba3 Ba1 – – BB– BB

Aruba – – BBB+ n BBB+ BBB– n BBB

Australia Aaa Aaa AAA AAA AAA AAA

Austria Aa1 Aaa AA+ AAA AA+ p AAA

Azerbaijan Ba2 Ba2 BB+ BB+ BB+ BB+

Bahamas Baa3 Baa1 BB+ n BBB– – –

Bahrain B2 Ba3 B+ BB– BB– BBB–

Bangladesh Ba3 Ba2 BB– BB– BB– BB–

Barbados Caa1 B2 B– B– – –

Belarus B3 B3 B B B B

Belgium Aa3 Aaa AA AAA AA– AAA

Belize B3 B1 B– B– – –

Bermuda A2 Aa3 A+ p AA+ – –

Bolivia Ba3 Ba2 BB– n BB– B+ B+

Bosnia Herzegovina B3 B3 B p BB– – –

Botswana A2 Aa3 BBB+ A – –

Brazil Ba2 Ba1 BB– BB+ BB– BB

Bulgaria Baa2 A3 BBB A BBB p A–

Cambodia B2 B1 – – – –

Cameroon B2 Ba2 B n BBB– B BB+

Canada Aaa Aaa AAA AAA AAA AAA

Cape Verde – – B BB– B B+

Cayman Islands Aa3 Aa2 – – – –

Chile A1 Aa2 A+ – A AA

China A1 Aa3 A+ A+ A+ A+

Colombia Baa2 A3 BBB– n BBB+ BBB– n BBB– Congo (DR) B3 n B3 CCC+ CCC+ – –

Congo (Rep) Caa2 n B2 B– BBB– CCC B+

Cook Islands – – B+ AAA – –

Costa Rica B2 Ba3 B+n BB B+n BB–

Cote d’Ivoire Ba3 Baa3 – – B+ p BBB–

Croatia Ba2 p Baa3 BBB BBB+ BBB– * BBB+

Cuba Caa2 Caa2 – – – –

Curacao – – BBB+ BBB+ – –

Cyprus Ba2 p A2 BBB– AAA BBB–p A

Czech Rep Aa3 Aa1 AA– AA+ AA– AAA

Denmark Aaa Aaa AAA AAA AAA AAA

Dominican Rep Ba3 Ba1 BB– BB+ BB– BB–

Ecuador Caa1 B3 CCC– n CCC– CC CCC

Egypt B2 B1 B B B+ B+

El Salvador B3 p B1 B– AAA B– B

Estonia A1 Aaa AA– p AAA AA– AAA

Ethiopia B1 n B1 B B B n B

Fiji Ba3 Ba3 BB– BB– – –

Finland Aa1 Aaa AA+ AAA AA+ p AAA

France Aa2 p Aaa AA AAA AA AAA

Gabon Caa1 p B1 B BB+

Georgia Ba2 Baa3 BB BBB– BB BBB–

Germany Aaa Aaa AAA AAA AAA AAA

Ghana B3 B1 B B+ B B

Greece B1 Baa1 BB– AAA BB– BBB–

Guatemala Ba1 Baa3 BB– BB+ BB n BB+

Honduras B1 Ba2 BB– BB – –

Hong Kong Aa3 Aaa AA+ AAA AA n AAA

Hungary Baa3 Baa1 BBB A– BBB A

Iceland A3 p A3 A A A A+

India Baa2 Baa1 BBB– BBB+ BBB– BBB–

Indonesia Baa2 A3 BBB BBB+ BBB BBB

Iraq Caa1 B3 B– AAA B– B–

Ireland A2 Aaa AA– AAA A+ AAA

Israel A1 p Aa3 AA– AA+ A+ AA

Italy Baa3 Aa3 BBB n AAA BBB n AA

Jamaica B2 Ba3 B+ BB– B+ p BB–

Japan A1 p Aaa A+ p AA+ A AAA

Jordan B1 Ba1 B+ BB BB– BB

Kazakhstan Baa3 p Baa2 BBB– BBB BBB BBB+

Kenya B2 Ba3 B+ BB– B+ BB–

Kuwait Aa2 Aa2 AA– AA AA AA+

Kyrgyzstan B2 Ba3 – – – –

Latvia A3 Aaa A+ AAA A– AAA

Lebanon Caa2 Caa1 CC n CC RD CCC

Lesotho – – – – B B+

Liechtenstein – Aaa AAA AAA – –

Lithuania A3 p Aaa A+ AAA A– p AAA

Luxembourg Aaa Aaa AAA AAA AAA AAA

Macau Aa3 Aa2 – – AA n AAA

Macedonia (FYR) – – BB– BB BB+ BBB–

Malaysia A3 A1 A– A+ A– A

Maldives B2 n Ba3 – – B n B Malta A2 Aaa A– AAA A+ p AAA

Mauritius Baa1 A2 – – – –

Mexico A3 n A1 BBB n A BBB A–

Moldova B3 B2 – – – –

Mongolia B3 B1 B B+ B B+

Montenegro B1 p Ba1 B+ AAA – –

Montserrat – – BBB– BBB– – –

Morocco Ba1 Baa2 BBB– BBB+ BBB– BBB

Mozambique Caa2 Caa1 CCC+ CCC+ CCC B–

Namibia Ba2 Baa3 – – BB BB+

Netherlands Aaa Aaa AAA AAA AAA AAA

New Zealand Aaa Aaa AA p AAA AA p AAA

Nicaragua B3 B2 B– B– B– B–

Nigeria B2 n B1 B– B– B+ n B+

Norway Aaa Aaa AAA AAA AAA AAA

Oman Ba2 Baa3 BB–n BB BB n BB+

Pakistan B3 B2 B– B– B– B–

Panama Baa1 A2 BBB+ AAA BBB n A

Papua New Guinea B2 B1 B B – –

Paraguay Ba1 Baa3 BB BB+ BB+ BB+

Peru A3 A1 BBB+ A BBB+ A–

Philippines Baa2 A3 BBB+ A– BBB p BBB+

Poland A2 Aa3 A – A A– AA–

Portugal Baa3 p Aa3 BBB p AAA BBB p AA

Qatar Aa3 Aa3 AA– AA AA– AA

Ras al–Khaimah A AA+ A AA+

Romania Baa3 A3 BBB– A– BBB– BBB+

Russia Baa3 Baa2 BBB– BBB BBB BBB

Rwanda B2 B1 B+ B B+ B+

St Vincent & Gren B3 Ba3 – – – –

San Marino – – – – BBB– n BBB+

Saudi Arabia A1 A1 A– A A A+

Senegal Ba3 Baa1 B+ BBB– – –

Serbia Ba3 Ba1 BBp BB+ BB+ BBB–

Seychelles – – – – BB BBB–

Singapore Aaa Aaa AAA AAA AAA AAA

Slovakia A2 Aaa A+ AAA A+ AAA

Slovenia Baa1 p Aa1 AA– AAA A AAA

Solomon Islands B3 B2 – – – –

South Africa Ba1 n Baa1 BB n BBB– BB+ n BBB–

South Korea Aa2 Aa1 AA AAA AA– AA+

Spain Baa1 Aa1 A AAA A– AAA

Sri Lanka B2 Ba3 B n B B B

Suriname B2 Ba3 CCC+ n CCC+ n CCC B–

Sweden Aaa Aaa AAA AAA AAA AAA

Switzerland Aaa Aaa AAA AAA AAA AAA

Tanzania B1n Ba3 – – – –

Taiwan Aa3 Aa2 AA– AA+ AA– AA+

Thailand Baa1 p A2 BBB+ A BBB+ A–

Trinidad & Tobago Ba1 Baa3 BBB– BBB – –

Tunisia B2 Ba3 – – B+ n BB–

Turkey B1n B1 B+ BB– BB– BB–

Turks & Caicos – – BBB+ AAA – –

Uganda B2 Ba3 BB A– B+ B+

Ukraine Caa1p B3 B B B p B

UAE Aa2 Aa2 – – – –

UK Aa2 Aaa AA + AAA AA– n AAA

USA Aaa Aaa AA+ AAA AAA AAA

Uruguay Baa2 A2 BBB A– BBB– n BBB+

Venezuela C Ca SD CC – –

Vietnam Ba3 Ba1 BB BB BB p BB

Zambia Caa2 n B3 CCC+ CCC+ CCC B–

7 IFR Global Debt 2327 p66.indd 66 03/04/2020 18:53:24

FRONT STORY ASIA

US investors revive Asian bonds AIA and Baidu revive issuance

Asian issuers returned to the offshore bond market after a two-week absence, but US investors are likely to be critical to the success of primary issues for months to come.

On Tuesday, insurer AIA GROUP (A2/A/A+)

bond issue from Asia since March 11, followed a day later by Chinese internet

BAIDU, rated A3/A (Moody’s/Fitch), with a US$1bn dual-tranche deal.

Both deals were marketed to US investors, who drove the trades and took the largest part of each offering, continuing the buying spree that saw the US high-grade market break records last month.

The success of a US$1bn 10-year deal for A3/A– (Moody’s/S&P) rated insurer AFLAC on Monday prompted some US investors to approach AIA about issuing, and the pan-Asian insurer sold US$1bn of 3.375% 10-year bonds at 99.706 to yield 3.410%, equivalent to Treasuries plus 275bp.

Recent high-grade issuers in the US market have been willing to pay new issue concessions of as much as 50bp–75bp to achieve chunky deal sizes, demonstrate market access and ensure they are cash-rich in case the economic downturn lasts longer than expected.

Initial price thoughts for the AIA trade were Treasuries plus 325bp area, which was around 75bp back of fair value on its 2029 bonds, quoted at Treasuries plus 245bp, though those are fairly illiquid. Ten-year bonds from Prudential and Met Life were

2030s were at 280bp.

The new issue premium was seen at 20bp–25bp over a hypothetical 10-year point on AIA’s curve.

The sharp decline in Treasury yields in recent months meant that the coupon and yield were both lower than those on AIA’s 10-year bonds issued last year, when it printed 3.6% bonds at 99.493 to yield 3.661%.

AIA was spun off from US insurer AIG

has a big following in the US. It has tended to focus its marketing efforts for bond sales there rather than in Asia, and Asian buyers had little chance to get involved this time as it announced IPTs in New York’s morning session on Tuesday.

Books were over US$1bn within an hour, peaking at US$6.4bn, and the deal had been priced by midday.

Despite the timing, there was healthy support from global accounts, not just US investors.

“Since everyone started working from home, there is less division between working hours and non-working hours than in the past, so that might have resulted in more credible demand from Asia,” said a source close to the deal.

Asian investors put in sizable orders for the 144A/Reg S offering, but in the end were allocated less than 20% of the book. No

investors drove the deal, with some institutions placing US$100m-plus orders.

“If this had been a Reg S-only deal, it wouldn’t have happened,” said one DCM banker.

On Wednesday, Chinese internet search company Baidu sold US$1bn of SEC-registered bonds in two tranches, in a deal that closed about 10 times subscribed and drew particularly strong US orders.

priced at 99.793 to yield 3.12%, equivalent to Treasuries plus 275bp, inside initial price thoughts of 312bp area.

A US$400m 10-year 3.425% tranche was priced at 99.539 to yield 3.48%, or Treasuries plus 285bp, inside IPTs of 325bp area.

Baidu’s 2024s were seen at Treasuries plus 250bp and its 2028s at 261bp, with a fairly

estimated at 20bp–25bp for the two tranches.

Even with that concession, Nasdaq-listed Baidu achieved the lowest yield it had ever paid for a 10-year tranche.

Total orders peaked at about US$12bn and

pricing. Around half of the bonds went to US investors, with Asia also well represented and Europe taking a smaller amount.

Although Baidu reverted to the more traditional Asian deal execution, announcing price talk at the start of the Hong Kong working day and pricing at the US close, the DCM banker said the success of the AIA trade suggested that Yankee or Global issuers from Asia could simply open books in the Hong Kong afternoon.

“A 14-hour bookbuild is as anachronistic as a seven-day roadshow,” he said. “Three months ago seems like a different world.”

dominated by 144A offerings of high-grade names, though bankers think some of the region’s frequent issuers, such as South Korean quasi-sovereigns and Japanese names, are likely to balk at the thought of paying new issue concessions of 25bp or higher.

“There is something psychologically holding Asian issuers back from pulling the trigger,” said the DCM banker. “I expect a lot of them to wait until late April or May to see if things get better.”

Citigroup, Morgan Stanley, Goldman Sachs, HSBC, Standard Chartered and Wells Fargo were active bookrunners for the AIA trade.

Goldman Sachs and Bank of America were bookrunners for Baidu’s SEC-registered deal.Daniel Stanton


EMERGING MARKETS China 68 Hong Kong 68 India 68 Kazakhstan 69 South Africa 69

Zambia 70 Qatar 71 Argentina 71 Colombia 72 Ecuador 73 Mexico 73

“Since everyone started working from home, there is less division between working hours and non-working hours than in the past, so that might have resulted in more credible demand from Asia”

“A 14-hour bookbuild is as anachronistic as a seven-day roadshow,” he said. “Three months ago seems like a different world”

8 IFR Emerging 2327 p67-XX.indd 67 03/04/2020 19:21:02

ASIA-PACIFIC

CHINA

JIANGXI COPPER PLANS DOLLAR BONDS

China’s largest copper producer JIANGXI

COPPER plans to issue US dollar bonds to raise up to US$1bn, according to an exchange

The issuer of the proposed bonds will be either the company itself or a special purpose vehicle established in Hong Kong.

Jiangxi also announced that it would offer a guarantee on up to US$1.8bn of credit facilities for its wholly owned subsidiaries, Jiangxi Copper Hong Kong Company and Jiangxi Copper (Hong Kong) Investment Company. The former will be assigned US$200m and the latter the remainder.

Jiangxi Copper, listed in Hong Kong and Shanghai, will seek approval for the plan at its annual meeting, which is scheduled

DAZHONG PLANS ONSHORE, OFFSHORE BONDS

SHANGHAI DAZHONG PUBLIC UTILITIES (GROUP) plans to issue onshore and offshore bonds with a tenor of no more than 10 years to raise up to Rmb9bn (US$1.27bn).

Proceeds will be used to fund business operations or construction projects, or both, repay debt and supplement working capital.

The plan is subject to shareholder and regulatory approvals.

Shanghai Dazhong, which is listed in Hong Kong and Shanghai, is primarily engaged in urban transport, city gas, and environmental and municipal businesses.

It has a AAA domestic rating from China Chengxin.

CHINA SINGYES REPURCHASES 2022S

CHINA SINGYES SOLAR TECHNOLOGIES HOLDINGS has repurchased US$18.4m of senior notes in the open market that were issued after a debt restructuring which it completed in December.

The company also received US$240,125 of unclaimed senior notes from the clearing system, bringing the total amount it will write down to US$18.64m.

The notes were issued as part of a restructuring plan that was conducted with help from state-owned Shuifa Group after Singyes defaulted on its offshore bonds in October 2018. Creditors have received a combination of cash and new bonds under the scheme.

The total issue size of the bonds with a three-year tenor was US$414.9m. The bonds pay a cash coupon of 2% and payment-in-kind interest of 4%.

The workout came after Water Development Holding, a subsidiary of Shuifa Group, agreed to subscribe to HK$1.6bn (US$206.3m) of shares in Singyes, giving it a 66.92% stake in the Hong Kong-listed curtain wall installation and solar engineering company.

The Shandong Provincial State-owned Assets Supervision and Administration Commission controls Shuifa Group, which is involved in water projects, environmental and renewable energy.

HONG KONG

CHINA STRATEGIC TAKES LOSS ON LOGAN

CHINA STRATEGIC HOLDINGS expects to take a loss of about US$231,000 on a recent disposal of part of its holdings in Logan Property Holdings’ US dollar bonds,

The Hong Kong-listed investment holding company on April 2 sold US$2m of Logan’s 5.25% February 23 2023 notes and US$1m of its 6.50% July 16 2023 notes in the secondary market for US$2.790m and US$952,000, respectively.

In light of volatile market conditions, the company said the disposal could “provide immediate liquidity to improve its cash positions” and “reduce

Proceeds will be used as general working capital.

Post disposal, the company still holds US$9m in face value of the 5.25% 2023s, but no longer any of the 6.50% 2023s.

INDIA

FUTURE RETAIL FACES MOUNTING COC RISK

Fitch has followed in S&P’s footsteps by downgrading India’s FUTURE RETAIL and its debut US dollar bond on heightened change- of-control event risks.

The ratings of both the retailer and the bonds were cut to B– from BB and placed on Negative Watch due to liquidity risks stemming from loans backed against pledged shares taken by its controlling shareholders.

Future Retail’s US$500m 5.6% note due 2025 requires the company’s controlling shareholders – Future Corporate Resources and Future Coupons – to maintain a combined 26% stake. Future Corporate Resources owns 41.1% of Future Retail directly and 9.8% via a joint venture with Amazon, Future Coupons.

The sharp decline in Future Retail’s share price, however, has prompted lenders to the controlling shareholders to demand more shares as collateral, according to Fitch.

The ratings agency said certain lenders were attempting to invoke pledges equal to 8% of Future Retail’s total share capital, while nearly all of Future Corporate Resources’ 41.1% stake has been pledged.

A change of control is triggered when promoter ownership falls below 26% and there is also a ratings downgrade.

S&P downgraded the company and the bonds to B– from BB– in late March.

Future Retail’s share price has dropped almost 80% this year, with most of the losses posted in March. As of April 2, Future Retail’s market capitalisation stood at Rs39bn (US$513.8m), meaning Future


ALL INTL EMERGING MARKETS BONDSBOOKRUNNERS: 1/1/2020–31/3/2020


Note: all deals submitted as of 2pm GMT as of Mar 31 2020


Source: Refinitiv SDC code: L1

1 JP Morgan 70 13,237.63 7.1

2 Citigroup 61 12,414.00 6.6

3 HSBC 93 10,903.76 5.8


5 Deutsche Bank 39 8,615.69 4.6

6 BNP Paribas 37 8,013.53 4.3


8 Goldman Sachs 35 7,174.29 3.8

9 Credit Suisse 47 7,145.47 3.8

10 Morgan Stanley 28 7,006.11 3.7

Total 332 187,745.05


Asia-Pacific




1 HSBC 74 7,006.38 7.7


3 Credit Suisse 39 4,211.06 4.6

4 Citigroup 34 3,934.96 4.3

5 UBS 33 3,805.60 4.2

6 Bank of China 46 3,430.72 3.8


8 DBS Group 34 2,916.80 3.2

9 JP Morgan 30 2,877.98 3.2

10 Citic 46 2,767.54 3.0

Total 208 91,140.89


Corporate Resources’ direct holding is only worth Rs16bn, lower than the share-pledged loan of Rs27bn, according to Lucror Analytics.

Fitch noted the coronavirus crisis will

shareholders to reduce share pledges. India imposed a nationwide lockdown on March 25 for 21 days.

ratings once Future Retail’s restructuring transaction, involving a purchase of in-store infrastructure assets from Future Enterprises, is completed.

The company’s 2025s, issued in January, were bid at a cash price of 48.5 on April 3, having dropped 50 points since the start of the month.

Future Retail’s US dollar debut received decent orders of more than US$3bn at the time of issuance. US investors took 42% of the deal as the Indian retailer leveraged its new partnership with Amazon.

IDBI WITHDRAWS TIER 2 OFFERING

IDBI BANK withdrew a planned onshore offering of Basel III-compliant Tier 2 bonds on March 27, after the Reserve Bank of India announced a slew of easing measures.

The base size was Rs5bn (US$66m) and there was an option to increase the deal by a further Rs5bn.

The bank said that the decision to withdraw was made after the central bank on March 27 cut its policy repo rate by 75bp and banks’ cash reserve ratio by 100bp, among other measures to support liquidity, causing a sudden drop in interest rates. The 10-year government bond yield fell by 9bp on the same day.

EUROPE/AFRICA

KAZAKHSTAN

REPUBLIC LOOKS FOR FOREIGN CAPITAL

KAZAKHSTAN plans to borrow US$3bn on

minister Berik Sholpankulov said on Thursday.

The oil-exporting Central Asian nation is

(US$5.4bn), or 3.5% of GDP, due to the plunge in energy prices, the coronavirus outbreak, and additional stimulus spending.

SOUTH AFRICA

COUNTRY FACES UP TO FORCED SELLERS

SOUTH AFRICA‘s local bonds are about to hit a wave of forced selling after Moody’s took a long-awaited decision to cut the country’s rating into junk territory.

The downgrade will see South Africa kicked out of the benchmark World Government Bond Index of local currency debt at the end of April.

Citigroup strategists have estimated that with South African government bonds accounting for a 0.44% weight in the FTSE

around US$6.6bn.“However, the event has been expected

and thus priced in for a long time and,

smaller than the original estimate,” said Citi.

“With FTSE delaying its month-end rebalancing until the April end-of-the-month review, that will provide passive WGBI-tracker funds a little bit more time to remove the SAGB exposure off their portfolios.”

On Friday, Moody’s cut South Africa’s long-term foreign and local currency ratings to Ba1 from Baa3 on

structurally very weak growth, which the agency does not expect current policy to address effectively.

“We have been underweight South Africa for quite some time,” said Uday Patnaik, head of emerging markets debt at LGIM. “Frankly said, I think Moody’s was – very – late in downgrading South Africa to sub-IG.”

Moody’s has maintained a negative outlook.

A second investor said he was not keen on the credit: “Personally I don’t like the story in South Africa given the lack of momentum for change in both political and structural reforms.”

The rand plunged to all-time lows following the downgrade, dropping by around 1% against the US dollar to below 18.00, and falling further by Thursday to 18.27.

The rand 10-year benchmark were bid at 11.15% by Thursday.

The bonds were at 13.25% on March 24 before the central bank launched a quantitative easing style bond-buying programme the following day alongside easier repo terms for commercial banks.

In hard currency, yields on the dollar September 2049s had climbed around

90bp from March 27 to April 2, according to MarketAxess prices, to 8.47%.

An S&P review in May will be critical, Citi strategists said, given concerns over further downgrades.

South Africa’s long-term foreign currency ratings with S&P/Fitch are BB/BB+, and the local currency equivalents BB+/BB+. Outlooks with both agencies are negative.

of sub-IG on a stable outlook across all agencies can become an investment opportunity should it adhere to reforms

improve its medium-term potential,” said Citi.

“But a country two, or three, notches

of (often) unpopular measures to get back

governments either struggle to stick to or aren’t willing to endure.”

as the public sector wage bill negotiations and Eskom urgently needed to be resolved.

“Unfortunately, there is no evidence to suggest that either problem will correct anytime soon,” wrote Citi.

Economists at the Institute of International Finance say that multilateral support will be critical for South Africa , with an IMF programme offering the possibility to secure much-needed funding and help to shore up

Finance Minister Tito Mboweni has said the government would only approach the IMF as a last resort and solely to fund health interventions rather than stem

The sovereign held an investor update call with international accounts during the week, as part of its investor relations work.


EMERGING MARKETS EUROPE/AFRICA


Europe/Africa




1 JP Morgan 14 4,334.77 16.4

2 Citigroup 6 2,345.74 8.9

3 SG 5 2,000.13 7.6

4 BNP Paribas 6 1,937.51 7.3


6 UniCredit 3 1,607.91 6.1


8 Raiffeisen 3 1,250.17 4.7

9 Barclays 5 1,246.15 4.7

10 ICBC 4 1,160.74 4.4

Total 26 26,474.39


ZAMBIA

REPUBLIC SEEKS DEBT ADVISERS

ZAMBIA

ensure the sustainability of its debt and manage any loans maturing from next year and beyond,

Even before the novel coronavirus outbreak forced lockdowns across the globe,

which have had a major impact on demand for raw materials, Zambia, Africa’s second largest copper producer had been wrestling with a growing public debt.

Finance ministry spokesman Chileshe Kandeta told Reuters the government had issued a request for proposals to provide advisory services on liability management and debt.

Zambia’s external debt had increased to US$11.2bn from US$10.23bn at the end of

June 2019, Finance Minister Bwalya Ng’andu said earlier in March.

The depreciation of the kwacha by over 20% against the US dollar has exacerbated

Zambia has three bonds issued in US dollars, with US$3bn principal due in total.

Its US$1.25bn of 8.97% 2027 bonds were trading at around 70 cents in the dollar during January and February but since the coronavirus crisis emerged as a major issue in March have dropped to just 31.60 cents.

The US$1bn 8.5% 2024 bond issue is due to pay a coupon on April 14.

The request for proposals was issued as part of the Zambia’s asset liability management exercise, including project

Eurobonds, Kandeta said.“We intend to use the services of the

advisers as we have done in the past and in line with signed agreements with lenders,” Kandeta said.

Eurobonds make only a small part of the country’s debt, with the largest creditor understood to be bilateral lender China, which is a major importer of Zambian copper.

How Zambia addresses the latter’s debt will be crucial in the process, said one adviser who was sent the RFP document.

“China has agreed to extend its terms with other countries but this is more

April 17 to submit proposals.Until 2018, Zambia retained two

commercial banks to provide advisory services on any asset liability exercises on its debt portfolio, Kandeta said.

He said the government had no intention of unilaterally restructuring its debt without consulting creditors and would respect agreements.

REGIONAL

AFRICA SEEKS BACKING ON DEBT RELIEF

International Monetary Fund, World Bank and EU support for bilateral, multilateral and commercial debt relief amid the coronavirus crisis, the UN Economic Commission for Africa (UNECA) said.

Africa is facing a perfect storm of an impending global economic downturn, plummeting oil and commodity prices and weaker currencies, which threaten to imperil its coronavirus response.

cases had climbed to at least 5,300 by Tuesday, with more than 170 recorded deaths, according to a Reuters tally. And


Private creditors face payment delays from surging EM distressed debt

SOVEREIGNS Wave of distressed debt from emerging markets expected

Private sector creditors face potential delays

to payments and lower recovery values from

a wave of distressed sovereign debt from

emerging markets hammered by the coronavirus

pandemic.

Around US$190bn in emerging market

sovereign bonds are trading at a 1,000bp

premium above benchmark Treasuries,

considered the threshold for debt to be classed

as distressed, according to ING analysts.

Against this backdrop, ZAMBIA and KYRGYZSTAN

are among the latest countries taking steps

to restructure their debt, joining ARGENTINA,

LEBANON and VENEZUELA, which were already in

distress before the current crisis.

More could join with around 21% of emerging

market sovereign dollar bonds trading at a yield

above 10%, signalling rising borrowing costs.

“Governments already struggling under

increasing costs relating to the outbreak may find it

politically untenable to repay international creditors

when their population is suffering,” said Jim Ho, a

debt restructuring lawyer at Cleary Gottlieb.

“If a suspension of debt payments becomes

inevitable as the crisis worsens, the goal is to

ensure that any debt restructuring is done in an

orderly fashion.”

The list of countries seeking help is poised

to grow as the World Bank and the IMF urged

official bilateral creditors to provide debt relief to

help lower-income nations struggling with the

effects of the coronavirus.

Tellimer estimates that around 22

International Development Association (IDA)

countries have international bonds outstanding,

with just over half of them in Sub-Saharan Africa,

amounting to a total stock of nearly US$60bn.

So far, the IMF and World Bank have only

asked bilateral lenders for some debt relief.

However, calls for private investors to bear a

share of the burden will probably increase into

the IMF Spring Meetings on April 16–17, said

Trieu Pham, EM sovereign debt strategist at ING,

noting that the UN Economic Commission for

Africa had called for sovereign bondholders to be

part of any solution.

A financing backstop by the IMF generally

requires private creditors to take a hit, as is the

case in Argentina.

Fund managers may have to share the pain

in any deal to help some debt-laden countries,

particularly those also facing a hit from lower

commodity prices, said Nachu Chockalingam,

senior emerging market debt portfolio manager

at Federated Hermes.

“All creditors will have to be at the negotiating

table at some point as some of these countries

are so highly indebted and facing issues on the

economic side,” she said.

For private creditors that could mean partial

debt relief, conversions into longer-term and

lower interest instruments, postponing 2020

bond redemptions by a year and waiving interest

payments this year, said Pham.

How this is carried out will be tricky.

One option, the establishment of a bankruptcy

court for countries, was previously considered

by the IMF in the early 2000s but floundered

because of lack of political support.

Another is to fall back on so-called collective

action clauses used in some existing bond

contracts to stop a minority of dissenting

creditors from blocking a settlement agreed by

the majority, Ho said.

“Extraordinary circumstances call for

extraordinary measures,” he said.

“If there were to be widespread defaults,

we may need to consider some kind of

legislative solution in order to ensure an

orderly restructuring for all debtors in the same

situation.”

Tom Arnold


of global cases, experts worry that Africa’s creaking health systems could easily be overwhelmed.

minister Tito Mboweni and Ken Ofori-Atta of Ghana, the ministers met via video conference on Tuesday. Many wore medical masks, said UNECA, which hosted the meeting.

“The call for debt relief ... should be for all of Africa and should be undertaken in a coordinated and collaborative way,” UNECA said in a statement.

African governments have asked for immediate relief from debt service obligations, including at last month’s G20 summit, and would like to see a portion of their debts forgiven or converted into long-term, low-interest loans.

The complexity of Africa’s creditor landscape, which includes traditional bilateral and multilateral lenders, China, commercial banks, commodity traders and bondholders, will complicate efforts to ease the continent’s debt burden.

Fitch and Moody’s warned that any

of private sector debt could qualify as a distressed debt exchange, triggering a move to restrictive default.

If relief is applied only to debt held by

a default, Fitch said. It would offset rising liquidity pressures on weaker frontier market sovereigns, acting as positive for their credit, Moody’s said in a note.

But Moody’s warned: “The lack of clarity so far around potential private sector participation suggests a heightened risk of delay to debt service payments, which could

Goldman Sachs said in a note last week that IDA countries, those with a GDP below US$1,175 per capita in 2020, made up around 10% of the JP Morgan Emerging Market Bond Index. Zambia and Sri Lanka

the move, it said.

MIDDLE EAST

QATAR

SOVEREIGN HEARD NEARING ENTRY

Noises are growing louder that QATAR could soon be in the market.

“I think they are coming for size,” said one banker.

A second banker said that the sovereign had envisaged raising US$5bn on the

international bond markets in 2020, before a plunging oil price had sent those requirements higher.

In March last year, Qatar issued three tranches – including a US$6bn 30-year Formosa bond – to raise a total of US$12bn backed by nearly US$50bn of orders.

AMERICAS

ARGENTINA

REPUBLIC ADVANCES DEBT TALKS AMID GROWING SCEPTICISM

As ARGENTINA presses ahead with its restructuring after missing a completion deadline last week, some are wondering if it will ever cut a deal with bondholders who are seen shouldering much of the burden of the government’s debt sustainability plans.

The Ministry of the Economy laid out more guidelines last week for the restructuring of US$83bn in eligible foreign currency local and international law debt, calling for a substantial grace period, a reduction in coupons, maturity extensions and possible haircuts.

A March 31 deadline to complete the deal had long been seen as unrealistic, more so as the coronavirus pandemic impacts growth throughout the world.

Even so, economy minister Martin Guzman said that he will continue to talk to creditors over the coming weeks before presenting a proposal.

However, what has been presented so far sits poorly with some in the market, dampening hopes that a deal can be cut soon unless the government shows a willingness to concede to some creditor proposals.

“Most of the adjustment on the sustainability of debt is coming from bondholders,” said Siobhan Morden, head of

Amherst Pierpoint. “Argentina is acting as if this process is

advancing and it is not.” With the country shut out of

international capital markets, Argentina will need a grace period “for years to come” on its foreign currency debt to allow the economy to recover and replenish central bank reserves, the Ministry of Economy said in a statement.

It also called for a substantial reduction in coupons over the medium and long-term to restore its ability to pay interest without simply rolling over debt in the international markets.

Maturity extensions and/or possible reductions in the face value of bonds are also being considered to achieve an

permit the economy to handle adverse shocks.

There has been a growing frustration among bondholders who feel that the government has failed to take in some of the proposals that various creditor groups have been submitting in recent weeks.

“Guzman at least is talking, but it doesn’t feel like they are taking into account what we say,” said one bondholder. “If they

and then come back to the negotiating table.”

Some investors are making the argument that the government should take into account how income from seigniorage - the difference between the cost of producing money and its face value - could be used to

economy. They say that while seigniorage should

be ultimately eliminated, it should be included in debt analysis as it will result in


EMERGING MARKETS AMERICAS


Middle East






2 Citigroup 9 3,407.71 15.7


4 HSBC 7 1,120.65 5.2




8 SG 5 598.66 2.8

9 First Abu Dhabi 4 579.21 2.7

10 JP Morgan 7 532.25 2.5

Total 39 21,653.23

INTERNATIONAL ISLAMIC FINANCE DEBTBOOKRUNNERS: 1/1/2020–31/3/2020






2 HSBC 5 775.86 11.2

3 Natixis 2 618.86 8.9

4 First Abu Dhabi 3 438.82 6.3

5 Islamic Development 3 424.54 6.1

6 Citigroup 3 412.44 5.9

7 Dubai Islamic 3 385.34 5.5

8 Riyadh Bank 1 300.00 4.3

9 JP Morgan 1 300.00 4.3

10 Landesbanken 1 285.71 4.1

Total 10 6,949.54


billions of dollars more in reserve accumulation than the government is calculating.

The government said it plans to reach foreign exchange reserves of US$65bn by 2024 and US$77bn by 2030.

adjustments and using net as opposed to gross debt to correct what they see as the government’s one-sided debt sustainability analysis (DSA).

“They are using their own version of DSA, which does not look like a typical DSA [by the International Monetary

some irritation that they are playing by a different set of rules.”

The government is assuming that real GDP will shrink but the economy is expected to grow by 2%-2.5% in 2022 and by 1.5%-2% from 2023 to 2030.

of GDP last year before achieving a primary balance in 2022 and 2023 and a surplus of 0.8%-1.2% in the medium term.

That said, it noted that “estimates of the Covid-19 impact on the economy are still in preparation”.

While such estimates are uncertain over the short term as they were made before the novel coronavirus outbreak, they should not be impacted over the long term and affect debt sustainability analysis, the government said.

Longer term the government said it wants to reduce its foreign currency debt so that by 2027 it will cover 40% of its

rest in foreign currency.From 2027 onwards it hopes to achieve

an average interest rate of 5% in real terms

on foreign currency debt with maturities

dropping to 4.5% in 2035.

COLOMBIA

AVIANCA SEEKS CREDITOR TALKS, TEMPORARILY DEFERS DEBT PAYMENTS

AVIANCA is looking to reach an agreement with creditors as it temporarily defers payments on long-term leases and certain obligations due to the impact of the novel coronavirus on commercial air travel, the

The move comes just months after the borrower completed a major debt restructuring that management hoped would set it on a more sustainable footing.

“Avianca actively seeks a mutually satisfactory agreement with its suppliers, key strategic lenders and other creditors to address

In December, the airline announced that

lease obligations, luring some US$125m in

fund Citadel and a group of Latin American private investors.

It also carried out an exchange of US$484m of its May 2020 secured bonds for secured bonds due 2023.

Like airline bonds across the globe, those 9% 2023s have taken a massive hit since, as commercial air travel has ground to a halt in the wake of the coronavirus pandemic.

The bonds have been trading at 24.325, marking an up to 68 point drop since the beginning of the month, according to MarketAxess data.

Along with other Latin American airlines, Avianca was also hit with several downgrades.

S&P lowered its rating to CCC from B– with a negative watch, while Fitch cut its senior unsecured rating on Avianca Leasing to CC from CCC–.

The Colombian government closed international airspace to passenger travel last month, leaving Avianca stopping its

impacting a portion of its business that brought in 50% of its revenues last year, according to S&P.

“Although the company has immediately implemented additional cost savings, we do not believe these measures will be adequate to offset the impact of already deteriorated liquidity and credit metrics,” S&P said.

The ratings agency now expects the company’s debt to Ebitda to stay well above 5x.

FITCH DOWNGRADES COLOMBIA

Fitch downgraded COLOMBIA’S sovereign rating one notch on Wednesday to BBB– with a negative outlook, citing weakening

and oil price volatility. Fitch and S&P now both have

the country one notch above junk territory, while Moody’s still rates it Baa2.

The move is at least the third sovereign downgrade for the region in the span of a few weeks, as Latin America contends with a looming economic slowdown.

ECUADOR was downgraded to CC by Fitch last month, while MEXICO was cut by S&P Global to BBB also last month.


Apr 1 2020 Baidu US$600m Apr 7 2025 3.08 99.79 T+275 3.12

Apr 1 2020 Baidu US$400m Apr 7 2030 3.43 99.54 T+285 3.48

Apr 1 2020 Neijiang Investment Holding US$40m Apr 8 2023 3.8 100 - 3.8

Apr 2 2020 Hyundai Capital America US$550m Apr 6 2023 5.75 99.89 T+550 5.79



Apr 3 2020 KNOC SFr200m Apr 21 2025 0.88 100 MS+140 / Eidg+151 0.88

Mar 31 2020 Israel US$2bn Jul 3 2030 2.75 100 T+206.8 2.75



GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 3/4/2020



“The recession and fall in oil price will negatively impact government revenues,” Fitch said in report about Colombia.

The sovereign’s bonds bounced shortly following the cut. Its 5.20% 2049 bond was

end of day Thursday, according to MarketAxess.

Before the downgrade the note had been trading at around 106.10 on Tuesday, according to the data.

Similarly, its 4% 2024 bonds were down slightly on Thursday, changing hands at 100.10, down from 101.150 before the downgrade, MarketAxess showed.

Fitch is expecting the nation’s economy to contract by 0.5% in 2020, mostly due to declining domestic demand and falling oil exports. But it expects a recovery of around 2.3% in 2021.

ECUADOR

EMTA RECOMMENDS TRADING ECUADOR BONDS WITH ACCRUED

While markets brace themselves for some sort of debt restructuring in cash-strapped ECUADOR, emerging markets trade association EMTA is recommending that sellers of the country’s sovereign bonds continue to be paid accrued interest during grace periods.

Last month, the government said it would cover a 2020 bond payment that was due on March 24 but use grace periods on interest due on other bonds later this month to retain funds for the health emergency caused by the coronavirus.

It also called for talks with creditors to

downgrades.

The health crisis caused by the pandemic and a dramatic drop in oil prices have only

in meeting debt payments.Bonds typically start trading without

parlance, when there is uncertainty over whether the bondholder will receive interest or principal in a timely manner.

As Ecuador is using its grace period to delay payments, it is not technically in default, and EMTA recommended that sellers in all trades entered into on or after March 30 be entitled to accrued and unpaid interest if paid during the grace period.

EMTA made similar recommendations for Venezuela bonds in 2017 amid uncertainty over whether coupon payments would ultimately reach investors as the government blamed US sanctions for delays.

2018 after S&P downgraded Venezuela to D and grace periods on several bonds had long expired.

The situation in Ecuador is expected to be clearer cut, with analysts expecting the

upcoming debt payments quickly.“The next steps are quickly coordinating

track friendly proposal,” Siobhan Morden,

wrote on Monday.

MEXICO

PEMEX BONDS SWING AS MARKETS ASSESS RELATIVE VALUE

Bonds issued by Mexican state-owned oil PEMEX continue to suffer price swings

as investors assess whether to abandon the credit altogether or buy at what might be cheap levels.

With one foot already in junk territory after Fitch cut it to BB+ last year, Pemex faces another possible demotion to sub-investment-grade from Moody’s, which rates it Baa3 with a negative outlook.

If that happens soon, debt-laden Pemex could become one of the largest fallen angels ever in terms of the amount of debt that will shift from investment grade to junk.

concerns. And a dramatic drop in oil prices as well as S&P’s decision last month to cut the Mexican sovereign to BBB from BBB– has only exacerbated secondary levels of the state-owned entity.

Pemex’s recently issued 6.95% 2060 hit an intra-day high last Tuesday of 68.50, only to drop back to 66.75 for a spread of 914bp later in the day, still a touch higher than where they on March 27, according to MarketAxess data.

It is a similar story for the 5.95% 2031s, which were also issued January. They were trading at 70.00, but have since fallen back to 68.76 or 1,025bp over Treasuries.

Rafael Elias, an analyst at INTL FCStone Financial, said that many investment-grade investors sold Pemex following S&P’s downgrade of the sovereign in anticipation of a Moody’s downgrade for Pemex.

“The price for the Mexican oil basket is now slightly above US$10 per barrel,” Elias wrote in a report last week.

“This means that oil revenues are going to be much lower than those budgeted for 2020 where it was assumed that the basket would average around US$40 per barrel. I


EMERGING MARKETS AMERICAS

T+312a

T+275 (the #)

22 US$5.25bn A3/-/A BofA/GS -

T+325a

T+285 (the #)

24 US$5.75bn A3/-/A BofA/GS -

3.8% (#) - - - Central/Guosen

/Zhongtai/Wing Lung/CMBCHK/

CMBC Cap Goldbridge Securities/

Everbright Sun Hung Kai

-

T+550 area,

T+550 (the #)

112 US$700m Baa1/BBB+ Barc/Citi/CA-CIB/Miz/RBC -

T+550 area,

T+550 (the #)


T+575 area,

T+575 (the #)


- - 31acs Aa2/AA UBS Switz 100%. AM 40%, Tsy 44%, Ins 7%,

PF 5%, Bks/PB 5%.

3.125% area, 2.75%

yld

- - A1/AA-/A+ Barc/BofA/Citi/GS -

4.25% area, 3.875%

yld


4.875% area, 4.5%

yld




believe that this might precipitate a downgrade by Moody’s.”

Yet while a Moody’s downgrade is likely to push Pemex prices down further, the move could incite high-yield investors to buy Pemex paper in earnest, he said.

That in turn could cause a rally in Pemex paper and subsequently tighten the spread differential with the sovereign, which looks expensive in

comparison, especially if the economy starts to contract dramatically because of the coronavirus.

“I think that Mexican sovereign paper is expensive, as I don’t believe that what could be a strong decrease in Q1 GDP has been priced in yet,” wrote Elias.

Indeed, Mexican paper looks particularly tight against the 800bp–1,000bp spreads seen on Pemex bonds last week.

Mexico’s 4.50% 2050 has widened since the S&P downgrade but still traded at around 335bp, while its 3.25% 2030s traded at around 331bp on Tuesday, according to

“Going long Pemex (with the caveat that it might get worse –a little – before it gets better) and short Mexico, seems like a reasonable trade to me,” said Elias.


Pandemic weighs on Latin America but investors see value

BONDS Novel coronavirus and oil price slump hit region’s credits

The impact of the Covid-19 pandemic and

plummeting commodity prices has started

to weigh on both corporate and sovereign

borrowers across Latin America in various ways

as EM portfolio outflows reach record highs.

As a region with strong trade links to China

and reliance on commodity exports, Latin

American will be hit particularly hard, with some

analysts radically revising growth forecasts

downwards.

Bank of America now expects the region to

suffer an economic contraction this year of 4.4%,

versus earlier estimates of 1.7%.

That compares with revised numbers of a

shrinkage of 0.5% for emerging markets overall,

the bank said in a report released on Thursday.

“Latin America is the second most vulnerable

EM region after sub-Saharan Africa” said Petar

Atanasov, co-head of sovereign research at

hedge fund Gramercy.

“Latin America looks like one of the regions

in EM that will emerge on the other side of this

crisis relatively weaker.”

Sovereign spreads in 15 Latin American

countries tracked by ICE Bank of America hit

four-year wides in late March.

And while markets have tightened a touch

since then, more pain is on the horizon.

Vulnerable sectors from airlines, hotels

and energy companies have already seen

their ratings slashed by the agencies warning

of liquidity risks and falling revenues as the

downturn starts to accelerate.

But credits from highly rated names such as

Chilean state-owned copper company Codelco

down to struggling credits such as Caribbean

and Central American telco Digicel are also

under ratings pressure.

Analysts say the impact of the pandemic on

the credit quality of companies across the region

is only just beginning to emerge.

“We’re starting to see more secondary effects

of the coronavirus crisis, first with the declaration

of force majeure by a few power companies,

and with the largest McDonald’s franchiser

in the world, Arcos Dorados (ARCOS), saying

they won’t be paying monthly leases at some

locations,” said Roger Horn.

FX volatility also poses risk for companies that

have raised dollar financing but whose revenues

are in local currency, such as airlines and sugar

and ethanol producers in Brazil.

LIQUIDITY NEEDS

As in other regions, cash is king and those Latin

American credits that can have been leaning on

bank lines for support, such as Brazilian miner

VALE and state-controlled oil firm PETROBRAS.

“Vale, Petrobras and other companies are

raising new bank debt,” said Carolina Chimenti,

assistant vice-president at Moody’s.

“For banks these companies are strategic

partners. They are raising new bank lines not

because they are running out of liquidity but from

a conservative cash management perspective.”

Smaller, lower quality names are likely to be

less fortunate as access to credit shrinks at a

time when investors are beating a retreat from

the asset class.

Emerging markets saw a record US$83.3bn

in portfolio outflows in March across bonds and

equities as the novel coronavirus and a sharp

drop in oil prices took their toll on the asset

class, according to data from the Institute of

International Finance (IIF).

“The people who can really issue now are

sovereigns, big super known names, much more

frequent issuers,” said one banker.

Fortunately, many Latin American borrowers

took advantage of the boom in emerging market

issuance to roll over much of their short-term

debt for longer maturities at cheaper rates,

leaving them free of serious refinancing risks

now.

“A lot of companies have been able to

refinance,” said Barbara Mattos, a senior vice-

president focusing on Brazil at Moody’s.

“There are of course some specific cases, but I

think most companies don’t have any immediate

maturities regarding bond payments.”

Sovereigns across the region are also

struggling, with rating agencies recently

downgrading Colombia, Mexico and Ecuador –

all credits reliant on the export of oil whose price

sunk to 18-year lows last month.

TIME TO BUY?

Even so, investors are increasingly making a

distinction between issuers and see some value

in certain names after the recent sell-off.

“For a very long time there was no credit

differentiation. Everything appeared to be

working fine despite different underlying

fundamentals,” said Atanasov.

“But it will now be a different reality.”

CHILE, PERU and MEXICO have a certain amount

of fiscal space if they wish to stimulate the

economy but the question is can they do it

politically, he said.

However, BRAZIL – once a market favourite – is

in a tougher position because of its shakier fiscal

situation

“It is an already overtaxed economy with an

already high fiscal deficit,” said Atanasov. “Like

Chile it plans to spend about 5% of GDP to

support the economy but unlike Chile it has less

space to do so.”

Jean-Charles Sambor, deputy head of

EM fixed-income at BNP Paribas Asset

Management, thinks much of the negative

news has been priced in and that there is some

value in certain credits such as Mexican state-

controlled oil firm PEMEX.

“We expect to see some oil price stability in

the short term as the meeting between Russia

and Saudi Arabia is likely to bear fruit,” he said.

“Pemex has weak fundamentals but we think the

sovereign is likely to support them. We don’t discount

additional downgrades but we think they are mostly

priced in and we are bottom fishing in Mexico.”

Sambor is also positive on Colombia and Peru

– countries with good fundamentals that have

been oversold.

“That is where the sweet spot is,” he said.

Paul Kilby


FRONT STORY EUROPEAN MARKETS

EMEA loans hit hard by pandemic EMEA lending records lowest quarterly total for a decade

Leveraged lending falls despite robust start to year

Syndicated lending in Europe, the Middle East and Africa totalled US$144bn in the

GLENCORE

TRAFIGURA also

BRITISH AMERICAN TOBACCO

Danish container shipper AP MOLLER-MAERSK

cutting costs, and preserving cash and

sellers see little value in putting units up for

SIX

bridge loan to back its offer for Spanish

group BAE SYSTEMS

HOPES DASHED

Russian corporates have effectively been

NORILSK NICKEL‘s

and cheapest unsecured syndicated loan for

introduced and the deal helped increase

LEVERAGED LOSS

LGC, and opportunistic

EVONIK‘s

BOELS

BASF‘s construction

BIOGROUP LCD

MICRO

FOCUS

happening because events aren’t happening,

“Nothing is happening in the Single B

Alasdair Reilly, Claire Ruckin, Prudence Ho


LOANS Australia China Indonesia 78 Japan New Zealand Vietnam 81 Denmark 81 Germany 81 Netherlands

Sweden Turkey UK 84 United States Canada 88 Leveraged Loans Restructuring

9 IFR Loans 2327 p75-XX.indd 75 03/04/2020 19:26:35


ASIA-PACIFIC

AUSTRALIA

SCAPE WRAPS UP LOAN FOR URBANEST

backing SCAPE AUSTRALIA MANAGEMENT‘s

Aareal Bank, Agricultural Bank of China, ANZ, Bank of China, Bank of Communications, Bank SinoPac, China Construction Bank, Credit Industriel et Commercial, E.Sun Commercial Bank, First Commercial Bank, Industrial and Commercial Bank of China, Mega International Commercial Bank, Sumitomo Mitsui Banking Corp, Taiwan Business Bank, Taiwan Cooperative Bank, Taishin International Bank and Woori Bank

Commonwealth Bank of Australia, Morgan Stanley and United Overseas Bank

Managers – Real Assets said that its

backing its purchase of a student housing

SCENTRE OBTAINS ADDITIONAL LOAN

SCENTRE GROUP

As a result, the group’s available

its strong access to capital and reduces

The rating agency revised the outlook of

WORLEY EXTENDS DEBT MATURITY

WORLEY

CHINA

DUO TIPPED FOR CHINA BIOLOGIC

China Merchants Bank and Ping An Bank are

CHINA BIOLOGIC

PRODUCTS HOLDINGS

ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY

SYNDICATED VOLUME (INCLUDING JAPAN)BOOKRUNNERS: 1/1/2020–31/3/2020


Proportional credit

Source: Refinitiv SDC code: S3a

1 Mizuho 163 25,194.39 22.6

2 MUFG 234 18,163.37 16.3

3 Sumitomo Mitsui 205 16,883.55 15.1

4 Bank of China 59 8,175.79 7.3

5 China Merchants 10 4,856.72 4.3

6 Ag Bank of China 6 2,334.69 2.1


8 ICBC 7 2,026.78 1.8

9 HSBC 16 1,890.55 1.7

10 ANZ 10 1,826.48 1.6

Total 780 111,686.78



LOANS ASIA-PACIFIC

SINOPHARM LEASING UNIT LIFTS LOAN

SINOPHARM HOLDING (CHINA) FINANCE LEASING has

ANZ, BNP Paribas and Mizuho Bank

Mandated lead arrangers are Ping An Bank, China Guangfa Bank, CMB Wing Lung Bank, Industrial Bank and Oversea-Chinese Banking Corp. Lead arrangers are Tai Fung Bank, Chong Hing Bank and KDB Asia. Arrangers are Bank of Nanjing, Shanghai Rural Commercial Bank and Bank of Panhsin.

ENN CLOSES US$200m LOAN

ENN Ecological Holdings has closed a

Standard Chartered lead arranger and bookrunner of the bullet

Mandated lead arrangers are Bank of Communications, China Citic Bank International, Luso International Bank and State Bank of India. Lead arrangers are BNP Paribas, Korea Development Bank, Nanyang Commercial Bank, SMBC, Westpac and Mizuho. Arranger is East West Bank.

XINNENG (HONG KONG) ENERGY INVESTMENT is the

HONG KONG

ECOGREEN RETURNS WITH GREEN LOAN

ECOGREEN INTERNATIONAL GROUP is back in the

China Construction Bank (Asia), Hang Seng Bank and Standard Chartered Bank are the

Australasia Inc seeks waivers ASIA-PACIFIC Borrowers take steps to counter coronavirus threat

Corporate borrowers in Australia and New

Zealand across a broad range of industries are

wasting no time in shoring up liquidity to help

their businesses survive the economic shock of

the coronavirus pandemic.

While new-money loans are limited, with a

number of mergers and acquisitions cancelled or

on hold, lenders in recent weeks have been busy

arranging refinancings, maturity extensions and

short-term funding for existing clients.

Outdoor retailer KATHMANDU HOLDINGS,

outdoor advertising firm OOH!MEDIA, travel agent

WEBJET and satellite communications provider

SPEEDCAST INTERNATIONAL are among several

companies that have won temporary waivers or

amendments to their financial covenants.

Webjet, Kathmandu and oOh!Media have also

raised loans or embarked on equity fundraisings

to boost their liquidity, while Speedcast, which

counts the cruise industry as an important client,

is seeking bridge financing as it fights for its

survival.

SCENTRE GROUP, the owner and operator of

Westfields shopping malls in Australia and New

Zealand, obtained two-year unsecured bank

loans, raising its available liquidity to A$3.1bn

from about A$1.8bn at the end of last year.

Telecommunications company SPARK NEW

ZEALAND, international student placement

and testing group IDP EDUCATION and fertility

treatment provider MONASH IVF GROUP are among

those seeking working capital facilities.

Spark completed two bilateral loans totalling

NZ$150m and extended a NZ$200m standby

facility by one year last week. IDP Education’s

existing lenders are providing a A$50m loan and

the company has also launched a A$175m equity

fundraising, while Monash IVF is in discussions

with lenders for obtaining additional funding.

WORLEY, which provides project and asset

services to companies in the energy, chemicals

and resources sectors, extended its debt

maturity for 12 months.

Africa-focused mineral sands producer BASE

RESOURCES has fully drawn a US$75m revolver,

while gold producer SARACEN MINERAL HOLDINGS is

in talks with banks about a potential drawdown

of its A$45m revolver in the event of an imposed

curtailment or temporary shutdown of operations.

VIRGIN AUSTRALIA HOLDINGS has requested a

government loan of around A$1.4bn as part of a

broader industry support package to prepare for

a prolonged crisis. The negotiations are ongoing

and may or may not include conversion to equity

in certain circumstances, Australia’s second

largest carrier said in a filing on March 31.

Virgin Australia follows the nation’s flagship

carrier Qantas Airways, which completed a

A$1.05bn secured loan from banks, and Air New

Zealand, which obtained a two-year standby

loan of up to NZ$900m from the government

in March.

In recent weeks, gold mining company

RESOLUTE MINING and diversified manufacturing

and distribution company PRO-PAC PACKAGING

have completed refinancings of US$300m and

A$95m respectively. Construction materials

company BORAL said it plans to repay its US

private placements with a syndicated loan after

earlier drawing down on its loan for another

bond repayment.

The actions by these borrowers come amid

a sharp slump in lending so far this year. Loan

volumes in Australia plummeted 46% year-on-

year to US$9.5bn in the first quarter of 2020,

the lowest quarterly tally in a decade, according

to Refinitiv LPC data. New Zealand also suffered

a 32% year-on-year decline in the first quarter

to US$1.86bn. Both markets recorded no M&A

loans during the period.

Mariko Ishikawa



provide an unconditional and irrevocable

INDIA

IRFC PICKS TWO FOR YEN LOAN

INDIAN RAILWAY FINANCE CORP has

State Bank of India‘s Tokyo branch and SMBC

NTPC SEEKS DEBUT JBIC GREEN LOAN

NTPC is

Japan Bank for International Cooperation is funding half of the green loan and providing a partial guarantee

Mizuho Bank

originally targeted for the end of March, is delayed due to the coronavirus

INDONESIA

BRI SETS OUT FOR ITS LARGEST LOAN

BANK RAKYAT INDONESIA

Coronavirus rocks APAC lending ASIA Syndicated loans fall to eight-year low in Q1

Syndicated lending in Asia-Pacific slumped to

an eight-year low in in the first quarter as the

coronavirus pandemic took its toll, with several

countries imposing lockdowns and a range of

business activities grinding to a halt.

Loan volumes in Asia-Pacific (ex-Japan)

dropped 39% to US$68.92bn in the first quarter

from US$113.79bn a year earlier, while deal flow

shrank to 221 from 377 loans completed in the

same period, according to Refinitiv LPC data.

This was the lowest quarterly tally since the

first quarter of 2012, when lending slumped to

US$62.21bn from 231 deals in the aftermath of

the 2011 eurozone crisis.

“Overall, the market has been off to a really

slow start and the outlook for Q2 is uncertain

and changing by the day,” said Bryan Liew,

regional head of loan syndications for ASEAN at

Standard Chartered Bank in Singapore. “We will

see more caution and maybe asset repricing.”

Every market across the region posted

declines, with Singapore being the worst-hit

– nose-diving by more than 84% year-on-year

to US$1.09bn in Q1. Faced with an uncertain

outlook, some borrowers have sought covenant

amendments or waivers from lenders, and many

have shelved fundraisings, cancelled acquisitions

and cut capital expenditure.

The leveraged buyout of New Zealand-listed

dental service provider Abano Healthcare Group

is among the deals that have been called off,

along with a NZ$190m (US$107m) five-year loan.

Companies in the hardest-hit aviation,

tourism and hospitality sectors have rushed to

renegotiate terms and draw down on credit lines.

MGM China Holdings asked lenders in February

to waive the leverage covenants on a HK$9.75bn

(US$126m) loan for the next 12 months after

Macau’s government closed all casinos for 15

days that month.

Still, bankers note that the bank loan market

has shown its resilience in previous crises, and

some expect frequent bond issuers to turn to

loans while capital markets remain volatile.

“The coronavirus-induced market volatility will

create a heightened focus for all corporates on

what their funding strategy is going to be for the

next 12 months,” said Gavin Chappell, head of

syndications, Australia at ANZ in Sydney.

“I think we will see some transactions that

couldn’t have been done in other markets come

into the bank market.”

NOT ALL GLOOM AND DOOM

Massive fiscal and monetary stimulus packages

across the world are cushioning the impact for

some borrowers.

“As perception of credit risk goes up, so too

should credit spreads,” said Ashish Sharma,

head of loan syndications Asia-Pacific at HSBC in

Hong Kong.

“But as interest rates have come down, and

given quantitative easing by a number of central

banks, some of the stronger borrowers may see

their overall interest costs come down with the

significant decline in benchmark rates, even if

their credit spreads go up.”

It is not all gloom and doom, however, with

event-driven financings providing the silver

lining.

Thailand’s Charoen Pokphand Group is raising

a bridge loan of about US$7.5bn for its proposed

acquisition of Tesco’s Asian business, the largest

from the South-East Asian country. Freeport

Indonesia is preparing to launch a US$2.8bn

five-year loan for a copper smelter in East Java

into general syndication. Vodafone Hutchison

Australia and TPG Telecom are forging ahead

with a A$5.25bn loan for their proposed merger.

“We often see a polarisation effect during

times of market disruption – strong credits in

stable sectors continue to receive support from

their relationship banks, while weaker credits

or those in volatile sectors may struggle to

raise financing or see their terms become less

competitive,” said Andrew Ashman, head of loan

syndicate Asia-Pacific at Barclays in Singapore.

StanChart’s Liew is also optimistic on the

region’s prospects and expects a pick-up in

activities from the third quarter.

“Fundamentally, the outlook in Asia remains

intact, with three of the largest economies –

China, India and ASEAN – all in growth mode

and several at the start of industrialisation,” he

said.

Mariko IshikawaAdditional reporting by Chien Mi Wong and Apple Li



LOANS ASIA-PACIFIC

PLN SENDS RFP

PERUSAHAAN LISTRIK

NEGARA

of up to US$1bn, returning to the offshore

TRANS RETAIL SIGNS US$740m LOAN

TRANS RETAIL INDONESIA

Bank BTPN, BNP Paribas, CTBC Bank, DBS Bank, Deutsche Bank, First Abu Dhabi Bank, Maybank, Rabobank, Standard Chartered, SMBC and Taishin International Bank

The mandated lead arranger is Mega International Commercial Bank.

Lenders are China Minsheng Banking Corp, Bank SinoPac, Chang Hwa Bank, Hua Nan Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Taiwan Business Bank, Taiwan Cooperative Bank, Yuanta Commercial Bank, First Commercial Bank, KEB Hana Bank, Bank of Panhsin and Bank of Kaohsiung.

JAPAN

COSMO ENERGY TAPS SLL, HYBRID

COSMO ENERGY

HOLDINGS

Mizuho Bank

bank and its peer MUFG

UNITIKA REFIS ¥92bn FACILITY

UNITIKA

MUFGMizuho Bank

TOTAL NUMBER AND VOLUME OF SIGNED SYNDICATED CREDITS BY COUNTRY1/1/2020–31/3/2020

No of Volume No of Volume No of Volume

Country issues US$(m) Country issues US$(m) Country issues US$(m)

United Arab Emirates 5 9,318.2

Tanzania 1 1,641.1

Oman 3 1,605.0

Nigeria 2 1,278.5

Angola 1 1,100.0

South Africa 2 964.0

Saudi Arabia 1 799.7

Egypt 2 728.0

Bahrain 1 350.0

Ivory Coast 1 163.7

Burkina Faso 1 111.4

Africa/Middle East 20 18,059.6

Japan 606 65,694.7

Hong Kong 44 20,319.5

China 81 19,880.0

India 37 9,577.2

Australia 31 9,459.5

Taiwan 31 8,336.2

Indonesia 5 2,290.0

New Zealand 10 1,862.5

Singapore 4 1,090.9

Malaysia 3 999.5

Nepal 1 889.2

Thailand 3 819.2

Vietnam 4 678.8

Bangladesh 2 164.4

Pakistan 1 148.9

Asia-Pacific 863 142,210.5

USA 851 572,268.7

Canada 92 42,439.5

Mexico 5 2,901.1

Brazil 1 850.0

Chile 2 625.0

Bermuda 2 572.8

Peru 2 332.0

Panama 1 100.0

Americas 956 620,089.1

United Kingdom 37 32,972.8

Germany 36 20,701.9

France 33 16,424.3

Netherlands 10 8,647.8

Spain 27 7,125.1

Belgium 6 6,482.9

Denmark 3 6,014.1

Russian Federation 5 5,634.2

Luxembourg 4 4,523.9

Sweden 5 3,223.4

Switzerland 5 2,170.6

Ireland 3 2,103.0

Italy 14 2,034.4

Iceland 2 1,389.7

Turkey 5 1,240.2

Hungary 1 1,151.4

Kazakhstan 1 1,000.0

Czech Republic 1 890.2

Finland 1 824.7

Austria 1 668.0

Norway 1 659.9

Poland 2 625.4

Romania 1 216.6

Europe 204 126,724.5

Total 2,043 907,083.7

Source: Refinitiv



RESTAR HOLDINGS SIGNING ¥60bn FACILITY

RESTAR

HOLDINGS

MUFGMizuho Bank and SMBC

MALAYSIA

PURECIRCLE FACES TESTING MATURITY

PURECIRCLE is likely to

certain conditions and covenants that

The group did not satisfy all of the

shareholders through an unsecured

charges for the earlier inventory

NEW ZEALAND

KATHMANDU AIMS TO BOOST LIQUIDITY

KATHMANDU HOLDINGS

suspending its dividend, including the

SINGAPORE

LOUIS DREYFUS SOUNDS OUT BANKS

LOUIS DREYFUS COMMODITIES ASIA is in discussions

GLOBAL LOANS BOOKRUNNERS – FULLY

SYNDICATED VOLUMEBOOKRUNNERS: 1/1/2020–31/3/2020


Proportional credit

Source: Refinitiv SDC code: R1

1 BofA Securities 309 87,585.32 10.4

2 JP Morgan 259 81,437.74 9.7

3 Citigroup 175 59,332.96 7.1

4 Wells Fargo 198 44,690.01 5.3

5 Mizuho 231 40,305.00 4.8

6 MUFG 315 33,150.12 3.9


8 Credit Suisse 94 25,633.69 3.1

9 Morgan Stanley 68 25,146.58 3.0

10 Barclays 129 24,541.45 2.9

Total 1,877 839,879.44

GLOBAL LOANS BOOKRUNNERS – FULLY

SYNDICATED VOLUME (EX US)BOOKRUNNERS: 1/1/2020–31/3/2020


Proportional credit


1 Mizuho 174 26,773.49 9.9


3 MUFG 246 20,302.32 7.5

4 Bank of China 64 10,001.44 3.7

5 HSBC 48 8,345.81 3.1

6 CIBC 30 8,115.41 3.0

7 Deutsche Bank 31 7,992.65 3.0

8 Scotiabank 34 7,748.98 2.9


10 BMO 30 7,158.81 2.7

Total 1,044 269,264.64



LOANS EMEA

arrangers and bookrunners of the

TAIWAN

YAGEO CLOSES US$1.1bn BRIDGE

YAGEO has

DBS Bank and MUFG

Citigroup SMBC and Bank of Taiwan

VIETNAM

NO VA LAND DRAWS DOWN

Developer NO VA LAND INVESTMENT GROUP CORP

Credit Suisse

Industrial & Commercial Bank of China, Taichung Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank

EUROPE/MIDDLEEAST/AFRICA

DENMARK

CARLSBERG PUMPS UP LIQUIDITY

CARLSBERG

bank loan, strengthening its balance sheet as

FRANCE

SAINT-GOBAIN REDUCES RCF

SAINT-

GOBAIN

GERMANY

DAIMLER LAUNCHES €12bn LOAN

DAIMLER

BNP Paribas, Banco Santander, Deutsche Bank and JP Morgan on April 1, has been

DUERR NETS SUSTAINABILITY-LINKED SSD

DUERR

linked Schuldscheindarlehen after raising

increase or reduce depending on Duerr’s

The rating is based on sustainability

DZ Bank, LBBW and UniCredit arranged the

TUI UPS LIQUIDITY

Travel group TUI

KfW



syndicated revolving credit facility as it

ITALY

PIRELLI SIGNS SLL

PIRELLI

year syndicated loan that is linked to the

group of 18 banks led by global coordinators

ENEL BOOSTS LIQUIDITY

Utility ENEL

a group of Enel’s relationship banks, is linked to Enel’s ability to increase its

Enel has incorporated four SDGs into its

NETHERLANDS

SHELL STRENGTHENS LIQUIDITY

ROYAL DUTCH SHELL

revolving credit facility, increasing its

Saudi Arabia and Russia has caused further

BP

AKZO NOBEL AGREES REFI

AKZO NOBEL

credit facility, replacing and reducing a

Citigroup Banco Santander, Bank of

America, BNP Paribas, Deutsche Bank, HSBC and ING

BBVA, Barclays, Credit Suisse, JP Morgan, Mizuho, NatWest, SEB, Societe Generale and Standard Chartered

BAM DRAWS DOWN

BAM

Most of BAM’s sites in the Netherlands

NORWAY

PGS DRAWS REVOLVER

PETROLEUM GEO-SERVICES



LOANS EMEA

SPAIN

EL CORTE INGLES SHOPS LIQUIDITY

EL

CORTE INGLES

guarantees and collateral, is in addition to a

Banco Santander, BBVA, Caixabank, Banco Sabadell, Bankia, BNP Paribas, Credit Agricole CIB, Societe Generale, Goldman Sachs, KutxaBank, Commerzbank, Ibercaja, Liberbank and the Confederacion Espanola de Cajas de Ahorros

SWEDEN

AUTOLIV DRAWS REMAINING RCF

AUTOLIV

strengthen its cash position in challenging

Autoliv is looking to reduce spending this

SWITZERLAND

GLENCORE WRAPS REFI

GLENCORE has

A total of 48 relationship banks

TURKEY

AKBANK OVERCOMES VIRUS FEARS

AKBANK

increased during syndication as the bank

Abu Dhabi Commercial Bank, Bank of America, Emirates NBD, ICBC and Standard Chartered Bank

arrangers are Citibank, Mizuho and SMBC

BNP Paribas, Commerzbank, Intesa Sanpaolo, mBank, MUFG and Societe Generale Attijariwafa Bank, BPER Bank, Credit Suisse, DZ Bank, Erste, Goldman Sachs, Habib Bank, Mashreqbank, Bank of New York Mellon and Zuercher Kantonalbank

ULKER NETS US$455m DEAL

ULKER has signed a

European Bank for Reconstruction and Development

Bank of America

Rabobank and Emirates NBD as

UAE

THEME PARK DELAYS PAYMENTS

DXB

ENTERTAINMENTS



March due to the coronavirus outbreak, had

UK

MELROSE SECURES WAIVER

MELROSE has

Melrose is looking to reduce costs and

businesses, including Melrose itself, senior

BA EXTENDS RCF

IAG

The rapid spread of the virus is having a

of the virus on its businesses including grounding surplus aircraft, reducing and

SAGA DRAWS, AMENDS COVENANTS

SAGA

including full cancellation of all travel

covenants in its cruise ship debt and is likely

IMPERIAL SIGNS €3.5bn RCF

Tobacco group IMPERIAL BRANDS has signed a

NatWest, Santander and SMBC, is provided by a

JOHNSON MATTHEY TAKES £1bn

JOHNSON MATTHEY has

EMEA LOANS BOOKRUNNERS – FULLY



Proportional credit


1 Deutsche Bank 29 7,680.63 7.0

2 UniCredit 29 6,192.88 5.6


4 BNP Paribas 36 5,717.08 5.2


6 Barclays 25 5,044.14 4.6

7 Commerzbank 21 4,910.44 4.4

8 HSBC 27 4,715.73 4.3

9 Citigroup 18 4,650.36 4.2

10 SG 18 3,957.27 3.6

Total 162 110,462.19



LOANS NORTH AMERICA

TYMAN DRAWS MOST OF RCF

TYMAN

coronavirus crisis that has seen the

NORTH AMERICA

UNITED STATES

HONEYWELL BOLSTERS LIQUIDITY

HONEYWELL has

There is also a ticking fee paid on unused

are Citigroup, Bank of America, JP Morgan, Wells Fargo, Deutsche Bank, Mizuho Bank, Morgan Stanley, MUFG and SMBC

Goldman Sachs, BNP Paribas, Santander, TD Bank, UniCredit and Societe Generale are

US Bank and Credit Agricole CIB also

its pension liability in an overfunded

day revolving credit facility and a US$4bn

SOUTHWEST INCREASES TERM LOAN

SOUTHWEST AIRLINES

Mixed fortunes for M&A loans US T-Mobile’s Sprint merger set to go ahead as Xerox pulls plug on HP chase

Mobile phone operator T-MOBILE asked banks

last week to fund US$23bn in loans to complete

the acquisition of peer Sprint Corp, while XEROX

decided to call off its long-running bid to take over

HP, thus a US$24bn bank financing will fall away.

The macroeconomic and market turmoil

caused by the coronavirus pandemic caused

Xerox to abandon the HP pursuit.

Xerox had secured US$24bn in financing

to back its hostile takeover of HP in January.

Citigroup, Mizuho and Bank of America were

the three original lenders. MUFG, PNC, Credit

Agricole and SunTrust joined the banking group

in March.

The commitment letter for the financing

agreed to provide a US$19.5bn senior unsecured

364-day capital markets bridge facility and a

US$4.5bn senior unsecured 60-day cashflow

bridge.

Xerox first offered to buy HP in November.

For T-Mobile, 16 banks will provide a US$19bn

364-day bridge loan and a US$4bn seven-year

term loan. The bridge loan is expected to be

refinanced by investment-grade bonds in the

near term.

On March 19, T-Mobile said the company

had been in communication with all 16 banks

and had not received notification that any

of the banks were unprepared to fund their

commitments to support the closing of the

merger.

Barclays, Credit Suisse, Deutsche Bank,

Goldman Sachs, Morgan Stanley and Royal Bank

of Canada previously committed US$38bn in

financing for the merger.

The initial bank group then expanded to 16

lenders, with BNP Paribas, Commerzbank, Credit

Agricole, TD Securities, Wells Fargo, Santander, SG

Americas, SunTrust, Natwest and US Bank joining

the deal.

The committed financing comprised a

US$11bn credit facility (made up of a US$4bn

five-year revolver and a US$7bn seven-year term

loan), a US$19bn 364-day senior secured bridge

facility, and a US$8bn senior unsecured bridge

facility.

T-Mobile is rated below investment grade, but

the debt is being treated as an investment-grade

transaction.

“This will evolve over time, but in the near

term, they will look to take out the 364-day

bridge loan with investment-grade bonds over

the next six to nine months,” one banker said.

The US$4bn five-year revolver pays 125bp over

Libor and the US$7bn seven-year term loan pays

175bp over Libor. Margins are subject to 25bp

step-downs based on the first-lien secured net

leverage ratio.

The US$19bn 364-day loan pays 125bp over

Libor, increasing by 25bp every three months

after an initial three-month period.

The US$8bn senior unsecured loan to a high-

yield bond comprises a US$4bn eight-year loan

that pays 350bp over Libor and a US$4bn 10-

year loan paying 375bp over Libor.

Daniela Guzman, Michelle Sierra



reduced travel due to the coronavirus

JP Morgan the loan, and lead arranger and bookrunner alongside Bank of America and Wells Fargo

March and an unprecedented increase in

ROYAL CARIBBEAN TO FULLY DRAW

ROYAL CARIBBEAN

Nordea

Scotiabank CYRUSONE AMENDS 2018 CREDIT

Data centre facility provider CYRUSONE has

Lenders shift gears as coronavirus bites US First-quarter activity hit as fears ripple through loan market

After a robust start, first-quarter activity for US

syndicated loans ground to a halt as the world

came to terms with the coronavirus, which

spooked lenders and rattled markets.

Deals were put on hold, investor meetings

cancelled, and fundraising schedules postponed

as market participants faced a health crisis of

unprecedented reach and magnitude.

As the virus spread across continents,

leveraged borrowers put the brakes on the

frantic refinancing activity that took place

early in the quarter, while investors reassessed

their appetite for risk. Healthcare companies

such as BAUSCH HEALTH and PHARMACEUTICAL

PRODUCT DEVELOPMENT, as well as British

technology firm MICRO FOCUS pulled

transactions as the borrower-friendly market

all but vanished.

Investors took shelter in metals and

government bonds. Loan funds saw US$11.6bn

of outflows, according to Refinitiv Lipper.

After a slow first two months in the

investment-grade loan market, better-rated

companies such as GENERAL MOTORS, FORD,

ANHEUSER-BUSCH INBEV and PETROBRAS opted to

hoard liquidity as they borrowed from revolving

credit lines that they usually leave untapped.

Despite the panic in the latter part of the

quarter, institutional issuance still spiked 170.5%

year-over-year, with US$180.88bn of volume

in the first three months of the year versus

US$66.87bn in the same period the year prior.

Leveraged loan volume in the first quarter

was US$245.36bn compared to US$167.33bn in

the same period of 2019, or a 46.6% increase.

With the heightened global uncertainty as a

backdrop, total mergers and acquisitions volume

took a beating and year-over-year numbers

slumped 40.6%. There was US$87.77bn in

total M&A volume in the first quarter, versus

US$147.74bn in the same period of 2019.

Investment-grade M&A volume suffered

the largest drop, down 76.9%, or US$19.09bn

versus US$82.65bn in the same quarter last

year. Leveraged volume was down 7% with

US$58.63bn in the first quarter of 2020.

As investors took a flight from risk, traditional

middle market deals led the 38.1% decline in

issuance quarter to quarter.

“Most of the deals are getting pushed because

pricing has to reset itself, and the market has to

determine where yields should be,” said Ryan Kohan,

a portfolio manager at Western Asset Management.

DRAWDOWNSAs leveraged lending disappeared, investment-

grade lending became the forefront of activity in

the loan market.

Bankers started the quarter eager to deploy

cash for M&A, but uncertainty linked to the US

presidential election and green shoots of news

of the outbreak curbed activity. Corporates in

discussion with lenders about transformational

transactions held off until the market impact

from the virus was more fully understood.

“Nobody knows the magnitude of the impact,”

a senior lender at a US bank said. “Until last

week, a lot of refinancing discussions were

happening and corporates were thinking of

going to market before the US election. Now

there’s likely to be a pause until there’s a little

more clarity about anything.”

Investment-grade volumes finished the

quarter down 12.7% year over year with

US$189.36bn in the first three months of 2020

down from US$216.87bn in the same period of

2019.

New-money issuance for investment-

grade borrowers took the most significant hit

with US$37.25bn of loans in the first quarter

compared to US$89.03bn in the same period of

2019, a 58% drop.

According to JP Morgan, by March 27 there

had been US$227bn in revolver drawdowns,

with 53% of announced borrowings done by

investment-grade firms. More are expected to

follow.

Michelle SierraAdditional reporting by Daniela Guzman and Aaron Weinman



LOANS NORTH AMERICA

operations and construction had been

KOHL’S DRAWS DOWN

KOHL’S

Wells Fargo Bank of America, JP Morgan, MUFG

and US Bank

to increase its cash position and preserve

suspending share repurchases and

KROGER

Bank of America and Wells Fargo Citigroup is

syndication agent, and Mizuho Bank and US Bank

ENSTAR

National Australia Bank, Barclays and Wells Fargo

MONDELEZ NETS US$1.75bn

MONDELEZ INTERNATIONAL

Citigroup BBVA

Morgan Stanley, TD Securities and US Bank are

JACOBS SIGNS US$1bn TERM LOAN

JACOBS

ENGINEERING

Bank of America

BNP Paribas and Wells FargoBank of Nova Scotia, Goldman Sachs, HSBC,

ICBC, PNC Bank, TD Bank, Truist Bank and US Bank

BMO, JP Morgan, Morgan Stanley and NatWest

NORFOLK SOUTHERN SIGNS

Ground freight and logistics holding NORFOLK SOUTHERN signed a

Wells Fargo Citigroup and Bank of America are syndication

US AND CANADA LOANS BOOKRUNNERS –

FULLY SYNDICATED VOLUMEBOOKRUNNERS: 1/1/2020–31/3/2020


Proportional credit


1 BofA Securities 289 81,099.96 13.2

2 JP Morgan 238 77,623.30 12.7

3 Citigroup 154 53,532.20 8.7

4 Wells Fargo 195 44,040.31 7.2

5 Morgan Stanley 60 23,661.58 3.9

6 Credit Suisse 79 23,354.71 3.8

7 Goldman Sachs 108 20,481.61 3.3

8 RBC 98 19,727.24 3.2

9 Barclays 108 19,497.31 3.2

10 BMO 99 15,962.55 2.6

Total 935 613,054.35

AMERICAS LOANS BOOKRUNNERS – FULLY



Proportional credit


1 BofA Securities 290 81,184.96 13.1

2 JP Morgan 240 77,739.96 12.6

3 Citigroup 154 53,532.20 8.7

4 Wells Fargo 195 44,040.31 7.1

5 Morgan Stanley 61 23,746.58 3.8

6 Credit Suisse 80 23,421.38 3.8

7 Goldman Sachs 109 20,566.61 3.3

8 RBC 98 19,727.24 3.2

9 Barclays 108 19,497.31 3.2

10 BMO 99 15,962.55 2.6

Total 945 617,730.46



Goldman Sachs, Morgan Stanley, US Bank, Capital One, Fifth Third, MUFG, Northern Trust, PNC Bank and Sumitomo Mitsui

SPIRIT LANDS US$350m RCF

SPIRIT AIRLINES has signed

Citigroup

spare parts, ground support

DEERE RENEWS US$8bn RCFS

DEERE & CO has

JP Morgan the loan, Citigroup agent and Bank of America is a syndication

CANADA

KINROSS GOLD DRAWS US$750m

KINROSS GOLD

GE requests shorter-dated credit to appease lenders

US Banks wary of liquidity due to volatility

GENERAL ELECTRIC is asking its lenders to replace

US$20bn in revolving loans with a new debt

package that will come with a smaller size and

shorter maturities.

The new loans, which will be US$15bn, are

a testament to a changing bank landscape as

firms seek to get better compensated for the risk

they take to lend as volatility rattles markets.

A shorter commitment window of three

years bodes well for the banks lending to the

multinational conglomerate when liquidity is

golden.

JP Morgan, Citigroup, Bank of America, BNP Paribas, Goldman Sachs and Morgan Stanley are

leading GE’s loans.

“During times of volatility, banks prefer to be

out with a three-year loan, and not a five-year

loan. A shorter-term maturity is going to be less

risky,” a banking source said.

The reduced revolving credit size was agreed

to at the onset of the discussions with banks and

before the coronavirus fears rattled markets.

“GE has divested a number of assets. The

loans are more in line with GE’s current size,” a

person close to the company said.

The shorter-dated loan, however, is also

better for banks as longer-term capital is more

expensive, especially for those institutions that

borrow overnight to fund themselves.

The Basel II and Basel III capital agreements

monitor the minimum capital that banks need

to hold as a cushion against insolvency. The

accords require banks to hold capital against the

funded and unfunded revolving credit lines they

provide to their corporate clients.

During times of uncertainty, unlike the bond

market that offers pre-payment penalties to

banks, lenders in the loan market prefer shorter-

dated commitments.

“The loan market wants to go shorter because

banks are very uncomfortable with their own

cost of liquidity,” a second banking source said.

Companies such as GENERAL MOTORS, FORD

and PETROBRAS have opted to hoard liquidity as

they borrowed from revolving credit lines that

they usually leave untapped.

According to JP Morgan, by March 27 there

had been US$227bn in revolver drawdowns. And

although liquidity is yet to be impacted, more

drawdowns are expected.

Banks’ inability to repay liabilities with

sufficiently liquid assets is considered to be a

large factor of the financial crisis.

SHORTER OPTIONTo replace US$20bn in revolving loans set to

expire in 2021, GE was originally looking to do

a three-year and a five-year loan. But given the

uncertainty in the market, only shorter-dated

financing was available.

“As part of our normal financial management

process, we are refinancing a back-up credit

facility that expires in 2021. Our financial

position is sound, including US$20bn of cash

proceeds from closing the sale of BioPharma on

March 31,” a GE spokesperson said.

The financing, that launched early last week,

is expected to price above the existing loan.

GE is looking to pay 15bp undrawn and

137.5bp over Libor when the facility is drawn for a

three-year loan, the first banking source said.

GE originally paid 10bp undrawn on the five-

year and 9bp undrawn on the three-year portion.

“GE is obviously a company with a big bank

following and a big wallet, and they’re shrinking

the deal size so the expectation is that it will go

okay. Everyone is watching,” the second banking

source said.

With significant exposure to the energy

and transport sectors, lending to GE is now

a tougher ask for banks, the second banking

source said.

The company recently announced plans to lay

off 10% of its US workers at its aviation unit. GE

has also logged significant losses in its energy

division.

Michelle Sierra



LOANS LEVERAGED LOANS

LEVERAGED LOANS

UNITED STATES

RESTAURANT BRANDS DRAWS DOWN

RESTAURANT BRANDS INTERNATIONAL

Restaurant Brands said its restaurants in

restaurants due to the spread of the

operates and franchises fast food chains

EDGEWELL SIGNS US$425m RCF

EDGEWELL

PERSONAL CARE

Bank of America and MUFG are lead

TD Securities, Barclays, Goldman Sachs, Standard Chartered and Northern Trust

LAMAR DRAWS US$535m

LAMAR

ADVERTISING

to uncertainty brought on by the

receivable securitisation facility due in

CERIDIAN REQUESTS US$295m

CERIDIAN HCM

Deutsche Bank

Braskem eyes drawing down of US$1bn RCF

BRAZIL Petrochemicals company is one of several LatAm borrowers to withdraw loans

Petrochemicals company BRASKEM is evaluating

whether to draw down on its US$1bn revolving

credit facility.

The move to withdraw a portion or its entire

credit facility comes as companies shore up

their cash balances to withstand the economic

slowdown caused by the coronavirus pandemic.

Concerns over the respiratory virus have sent

financial markets into a frenzy over the past

month as many businesses have closed their

doors and ceased operations on government

orders, while people around the world are self-

isolating to limit the spread of the virus.

Braskem is evaluating the option to withdraw

its dollar-denominated credit facility, but no

decision was final yet, the company said.

The Brazilian company has also formed a crisis

committee to establish procedures for the health

of its staff and the continuity of operations,

Braskem said in a statement.

If Braskem were to draw down, it would join a host

of other companies globally that have drawn from

their credit lines in recent weeks as they too cope

with the devastating impact of the coronavirus.

Braskem raised its US$1bn revolving credit

facility in May 2018.

Braskem’s five-year facility pays 125bp over

Libor. If the company draws on more than 33% of

the revolver, but less than 66%, the margin will

increase by 15bp, but if it withdraws more than

66% of the facility, then the margin will increase

by 30bp.

ABN AMRO, BNP Paribas, Credit Agricole,

Citigroup, Santander and SMBC arranged the

transaction.

JOIN THE CLUBBrazilian pulp and paper exporter SUZANO

has also drawn a US$500m standby credit

facility as it strengthens its liquidity to

mitigate the possible impact of the Covid-19

pandemic.

The five-year facility, which was arranged

in February 2019 through wholly owned

subsidiaries Suzano Austria GmbH and Suzano

Pulp and Paper Europe SA, pays a margin of

130bp over Libor.

The financing was provided by a club of Bank

of America, HSBC, Mizuho, Santander and

Scotiabank.

Mexican peer ORBIA, formerly known as

Mexichem, drew down US$1bn from its US$1.5bn

credit line.

Earlier this month, Brazil’s state-owned

oil producer PETROLEO BRASILEIRO also said it

had drawn on US$8bn in dollar-denominated

revolving loans and disbursed R$3.5bn

(US$672m) in local currency credit lines.

Brazilian miner VALE has also borrowed

US$5bn from two facilities, while Mexican baker

GRUPO BIMBO and Mexican media company

TELEVISA have also tapped existing revolving

credit lines.

Aaron Weinman



ASIA-PACIFIC

LENDERS GRANT SPEEDCAST RELIEF

SPEEDCAST INTERNATIONAL have

.

leverage covenant under its syndicated

provided to the lenders by the end of

continue operations and engage in

Leveraged loans frozen as market grapples with new normal

US Investors are focusing on buying loans in secondary

Participants in the US leveraged loan market are

revising the landscape for deal-making in the

midst of the coronavirus pandemic, which has

rocked financial markets over the past month and

brought new syndicated loan issuance to a halt.

With new issuance frozen, mergers and

acquisitions-related transactions are pending

as bankers and investors grapple with a

significantly different environment from which

they originally committed to lend.

Concerns over the pandemic have sent

markets into a frenzy over the past month as

many US businesses have closed their doors and

ceased operations on government order.

Bankers have not syndicated a Term Loan B

among investors since March 11. Now they are

determining when the next window will open

to launch loans to a buyside that had been

clamouring for new money opportunities before

the volatility set in.

With no new transactions in sight, investors

are focusing on buying loans in the secondary

market. They are targeting loans that have fallen

some 20 cents in value from levels near 100

cents on the dollar since the respiratory virus

gripped the asset class.

The LPC 100, a cohort of the 100 most liquid

US loans, fell by more than 20% to 77.9 cents on

March 23, but rebounded to 88.1 cents on March

31 as investors committed to loans through the

secondary space, Refinitiv LPC data show.

The sell-off in prices last month was driven

by liquidity needs and economic uncertainty

in the coming quarters, according to Ryan

Kohan, a portfolio manager with Western

Asset Management. At lower market levels,

opportunistic buyers piled into liquid companies’

loans, driving secondary prices higher.

“As we cleared the 80 (cents) price threshold

and 85 (cents) for higher quality names, mark-

to-market leverage vehicles were no longer

under potential selling pressure,” Kohan said.

“This technical has caused market prices (to go)

higher as secondary offers have been met by

increasing loan appetite from managers going

into quarter-end with healthy cash balances.”

Consumer-driven companies, such as food

distributors or wholesalers, are proving popular

with investors, which expect consumers to

demand more from grocery providers at a time

of isolation.

US FOODS‘ term loan has traded up to an

average bid of 85–86 cents from 80.5–81 cents

in the last week, and HOSTESS BRANDS, known for

its Twinkies and CupCakes snacks, has a term

loan bid at 91–92 on Tuesday, up from 86–86.5

in the prior week.

TOUGH SELL

In recent weeks, the US Federal Reserve has

enacted emergency lending powers to prop up

financial markets, including purchasing billions

of US dollars in Treasury bonds and mortgage-

backed securities. It is unlikely, however, that the

central bank will aid riskier sections of corporate

debt, such as leveraged loans or high-yield

bonds.

“Our world is like ‘Lord of the Flies’,” one

investor said. “It’s about what companies can

come out of this with visible cashflow because I

do not believe there will be government support

for leveraged loans.”

Banks, meanwhile, face a tough choice for

new loans backing acquisitions. Lenders can

either hold the debt and syndicate the loans

later, or launch deals to investors for the best

possible price, which will likely result in banks

having to take a loss on the financing due to the

adverse economic conditions.

“Underwriters can exercise their flex rights to

increase pricing or improve call protection (on a

syndicated loan), but this market is so bad, they

may exhaust their entire capacity to flex a deal,

and that may still not be enough to break-even,”

said Todd Koretzky, a leveraged finance partner

at law firm Allen & Overy.

Large-scale acquisition financings, including

gaming operator ELDORADO RESORTS‘ US$3bn

loan partially supporting its purchase of peer

Caesars Entertainment, and the €11bn of loans

backing the €17.2bn purchase of German firm

ThyssenKrupp’s elevators division are in flux.

Bankers are in no rush to syndicate the debt this

quarter.

“It will be interesting to see who will be

bold enough to go first (into syndication),” said

Koretzky.

“There are a bunch of deals that (were)

signed before the coronavirus crisis began and

in light of banks’ funding obligations once all

closing conditions are met, some may have to

go to market soon, unless banks decide to hold

the debt on their books for longer, hoping the

market improves.”

Aaron Weinman



LOANS LEVERAGED LOANS

WEBJET WINS WAIVER

Three lenders to travel agency WEBJET have

cannot be guaranteed if there are breaches

provide operating costs through to the end of the year even if strict travel restrictions

VIRUS FALLOUT TRIPS ABANO TAKEOVER

listed dental service provider ABANO

HEALTHCARE GROUP

No break fee is payable and both parties have agreed they have no other liability to

proposed buyout that had been in

entity called ADAMS NZ BIDCO for an enterprise

BROOKFIELD NETS THREE MORE BANKS

operator AVEO GROUP

China Minsheng Bank, State Bank of India and Tai Fung Bank

Bank of Baroda, Bank of Queensland, China Everbright Bank, Commonwealth Bank of

Australia, Eastspring Investments, First Commercial Bank, Metrics Credit Partners and National Australia Bank

ANZ, Bank of China and Barclays are the

HYDRA RL BIDCO, an entity controlled by

TRIMCO A&E, SML SALE HIT SNAGS

TRIMCO INTERNATIONAL HOLDINGS is delayed as

closed stores and shut factories in a bid to help

US LEVERAGED LOANS BOOKRUNNERS: 1/1/2020–31/3/2020



Excluding Project Finance.

Source: Refinitiv SDC code: P2

1 BofA Securities 176 31,081.87 10.9

2 JP Morgan 128 25,160.31 8.8

3 Citigroup 87 22,290.79 7.8

4 Wells Fargo 99 17,797.78 6.2

5 Credit Suisse 68 17,792.56 6.2

6 Goldman Sachs 97 17,730.81 6.2

7 Barclays 82 14,113.77 4.9

8 Morgan Stanley 49 12,475.03 4.4

9 Jefferies 43 10,152.92 3.6

10 RBC 58 10,057.56 3.5

Total 511 285,921.91

EUROPEAN LEVERAGED LOANSBOOKRUNNERS: 1/1/2020–31/3/2020



Excluding project finance. Western Europe only included.


1 Barclays 17 3,629.43 10.4

2 JP Morgan 17 2,749.31 7.8

3 Deutsche Bank 18 2,731.58 7.8

4 BNP Paribas 14 2,147.47 6.1

5 Goldman Sachs 14 2,047.58 5.8

6 NatWest Markets 12 1,638.44 4.7

7 HSBC 10 1,521.25 4.3

8 Credit Suisse 13 1,410.77 4.0



Total 51 35,023.88

EMEA SPONSORED BOOKRUNNERS: 1/1/2020–31/3/2020

Europe, Middle East, Africa



Excluding project finance.


1 Deutsche Bank 12 1,826.85 7.9

2 Barclays 10 1,520.78 6.6

3 BNP Paribas 10 1,477.28 6.4

4 JP Morgan 10 1,377.85 6.0

5 Credit Suisse 12 1,376.64 6.0


7 Goldman Sachs 9 1,139.93 4.9

8 SG 6 1,097.46 4.8

9 HSBC 7 1,061.41 4.6


Total 29 23,045.15



according to the National Bureau of

Separately, a potential sale of another SML GROUP,

visits for due diligence because of travel

RESTRUCTURING

UNITED STATES

ONEWEB IN TALKS FOR DIP

ONEWEB

SOFTBANK, is seeking court

Leveraged credits face reality check on debt load sustainability

EUROPE Fitch says credits with low leverage headroom likely to face negative ratings action

Some 40% of European corporate high-yield

bond and leveraged loan issuers have low

leverage headroom and could struggle to cope

with the downturn caused by the coronavirus,

Fitch Ratings said in a recent report.

Prior to the virus outbreak, leverage ratios,

or debt-to-Ebitda, on these credits was already

high for their ratings, Fitch said after screening a

total of 454 issuers.

Many issuers with plans to deleverage, either

through operating cashflow growth or other

management initiatives, are now expected to

struggle to do so due to the crisis and debt load

sustainability will be a key issue.

“I think the sudden and severe nature of the crisis

exposed some degree of over-optimisation and

fragility inherent in leveraged strategies,” said Edward

Eyerman, head of leveraged finance at Fitch Ratings.

“The debt is fixed while the cashflows can come to a

sudden stop. The immediate concern is available cash

to meet near-term interest and payables.”

Leveraged credits in recent years have

increasingly overestimated benefits from

acquisitions by making assumptions of cost

savings via synergies and staff cuts, and

generous Ebitda adjustments in a bid to

maximise the leverage, investors said.

Leverage levels have been increasing and

after taking out the unrealistic assumptions,

could haunt the market in a crisis.

Fitch said credits with low leverage headroom

were more likely to face a negative rating action

and around 42 credits, or 9%, that are also in

a sector with high virus exposure will be under

even more acute pressure.

EARLIER THAN EXPECTED

Any downgrades could come earlier than

expected, with lockdown measures bringing

most economic activities to a halt.

S&P downgraded Cineworld’s credit and

issue ratings last month to B from BB– after

Britain’s biggest cinema operator announced

a temporary closure of its theatres, while Fitch

also placed the credit on Rating Watch Negative.

“Normally credit agencies tend to make a

ratings change after a financial result, but they

are now more proactive on downgrade rather

than reactive to it,” said an investor.

S&P has so far has made 65 ratings actions

in Europe’s speculative-grade market related

to the fallout from the coronavirus. The actions

included downgrades, outlook revisions and

putting issuers on Credit Negative Watch.

While downgrades are expected to continue

to hit the market, particularly after the release

of first-quarter results in the coming weeks, the

secondary market has already largely priced in

such expectation, investors said.

“Everyone knows which names will get

hit,” the investor said. “You won’t be in a

situation that you could trade out before

everybody else.”

The average prices of European leveraged

loans in the secondary market fell to under

80% of face value – lows not seen since 2009

– before bouncing back to 85.69 on March 31,

according to Refinitiv LPC data.

The widely held credit for Finland-based

AMER SPORTS fell slightly from 70.33 to 68.6

on Wednesday after Moody’s downgraded the

sporting goods company’s ratings on Tuesday

by two notches to B3 with a negative outlook on

a potential profit decline triggered by the virus.

The credit saw its lowest level at 67 two weeks

ago.

“Some cyclical businesses and virus-exposed

sectors have already been beaten up quite badly,

an expected downgrade is unlikely to make

another massive fall,” said another investor.

Prudence Ho



LOANS RESTRUCTURING

ICONIX LENDERS WAIVE DEFAULT

ICONIX BRANDS

Cortland Capital

affected its business and could potentially

indebtedness, the holders of such

LENDERS TO TAKE OVER PIER 1

Retailer PIER 1 IMPORTS said an auction for the sale of its business has been cancelled and

lenders are still negotiating the structure of the transaction in light of the coronavirus,

after it closed all its stores and corporate

MURRAY WARNS OF LIQUIDATION

Bankrupt coal supplier MURRAY ENERGY could

WHITING GETS COURT APPROVAL

Shale driller WHITING PETROLEUM has received

to a declaration by chief restructuring

JP Morgan

EUROPE/MIDDLE EAST/ AFRICA LIMITLESS SEEKS ADVISERS

developer LIMITLESS has told its creditors it

PROSAFE STILL IN TALKS

PROSAFE



arrangers Danske Bank, DNB Bank, Nordea

GMS AGREES RESTRUCTURING

Abu Dhabi offshore contractor GULF MARINE

SERVICES

facility and continued access to its bonding

ASIA-PACIFIC

WOLLONGONG COAL IN WORKOUT TALKS

WOLLONGONG COAL

generally supportive of such an

the restructuring, announced in March

JINDAL STEEL AND POWER (AUSTRALIA) is the

entered into negotiations to restructure

DTEK surprises market UKRAINE Restructuring did not appear on the cards

Ukraine’s DONBASS FUEL ENERGY CO HOLDING, the

country’s largest power provider, has surprised

the market after it announced it would not pay

interest on its bank debt or its US$1.3bn 10.75%

amortising bonds, ahead of a potential debt

restructuring.

The company did report weak preliminary full-

year 2019 results about two months ago but a

restructuring did not appear on the cards.

“We did not see signs of an imminent

restructuring then and, if bonds prices are a

measure of market sentiment, neither did the

market,” investment banking services group

Tellimer said in a credit research note.

Now restructuring advisers are circling the

company for mandates on a potential debt

restructuring.

“I think they will have to engage legal and

financial advisers given it appears they botched

it with noteholders. This has come as a complete

surprise to them,” said one restructuring adviser.

In July 2019, Ukraine made a transition to

a new electricity market model with prices

established daily, based on the balance of

supply and demand.

The transition to the new pricing model, an

abnormally warm winter and the reopening

of electricity imports from Russia and Belarus

dramatically reduced prices and DTEK

Energy’s profitability in the second half and

particularly in the fourth quarter of 2019,

Tellimer said.

“Electricity prices remained weak in the first

quarter of 2020, which suggests that fourth-

quarter 2019 could be a good proxy for 2020.

In this case, DTEK’s Ebitda could fall below

US$200m, causing net leverage to increase to

10 times and interest to be barely covered, if at

all,” the Tellimer report said.

DTEK said it had US$90m of debt repayments

in 2020–22, with most of its US$2bn debt

maturing in 2023–24.

However, Tellimer said DTEK could still

struggle to pay interest on debt unless the

electricity price recovers, with the company now

facing the prospect of a debt haircut

“The company’s Ebitda would not be enough

to cover interest expense and refinancing even

a small amount of debt could be difficult. If

this is the case, then DTEK’s debt is too high

for the company and a haircut on the principal

is necessary,” the investment banking services

group said.

In March 2017, DTEK agreed the

restructuring of circa US$875m of its

bank debt and US$1.34bn of outstanding

Eurobonds with its creditors after two years

of negotiations.

It had looked to refinance the restructured

debt in 2018 but as it was repaying its debt

successfully at that point, the company decided

not to return to the capital markets.

Sandrine Bradley


FRONT STORY INDIA

Privatisation target missed Record Rs2.1trn target for 2020/21 looks difficult to achieve

India has missed its privatisation target for

Management data show the government

INDIAN RAILWAY FINANCE

CORP AXIS BANK and ITC

LIC IPO CHALLENGE

Bankers said the government has stopped

LIFE

INSURANCE CORPORATION OF INDIA

AIR INDIA and BHARAT PETROLEUM

Anuradha Subramanyan

Amadeus raises €1.5bn for most adverse scenarios Existing cash, debt and new funds provide €4bn of liquidity

AMADEUS IT

JP Morgan Citigroup and Credit

Agricole CIBRobert Venes


EQUITIES Australia China India New Zealand South Korea Thailand

Estonia Italy Norway UK United States

10 IFR Equities and SE 2327 p95-106.indd 95 03/04/2020 20:40:32

ASIA-PACIFIC

AUSTRALIA

NEXTDC RAISES FUNDS FOR GROWTH

NEXTDC has raised

Citigroup and Royal Bank of Canada were

TRAVEL FIRM WEBJET SECURES US$140m

WEBJET

Credit Suisse, Goldman Sachs and Ord Minnett

IDP EDUCATION SEALS UPSIZED PLACEMENT

IDP EDUCATION


WEEK IN NUMBERS

US$8 CARNIVAL CORP SOLD SHARES AT

US$8 APIECE TO RAISE US$500m AS PART OF A US$6.25bn FUNDRAISING ACROSS STRAIGHT BONDS, EQUITY AND CONVERTIBLES. THE CRUISE OPERATOR’S SHARES WERE TRADING ABOVE US$50 IN JANUARY

21% UNDERWRITERS OF AMS’S

SFR1.75bn (US$1.8bn) RIGHTS ISSUE WERE LEFT WITH A COMBINED SHAREHOLDING OF 21% IN THE AUSTRIAN SENSOR MAKER. SHARES HAD TRADED BELOW THE ISSUE PRICE DURING SUBSCRIPTION MAKING A STICK POSITION FOR THE BANKS LIKELY FROM THE START OF SUBSCRIPTION

>50 THE CBOE’S VOLATILITY INDEX

EASED LAST WEEK BUT REMAINS COMFORTABLY ABOVE 50, WELL ABOVE LEVELS WHERE MARKETED EQUITY TRANSACTIONS CAN BE EASILY COMPLETED

20% THE UK’S PRE-EMPTION GROUP

SAID IT WAS SUPPORTIVE OF COMPANIES ISSUING UP TO 20% OF EXISTING CAPITAL IN THE CURRENT ENVIRONMENT WITHOUT PRE-EMPTION FOR SHAREHOLDERS, UP FROM 5%

0

10

20

30

40

50

60

02

/04

/20

25

/03

/20

17/0

3/2

0

09

/03

/20

25

/02

/20

14/0

2/2

0

06

/02

/20

29

/01/

20

21/

01/

20

10/0

1/2

0

02

/01/

20

US$

ASIA-PACIFIC EQUITIESBOOKRUNNERS: 1/1/2020–31/3/2020


Including all domestic and international deals and rights issues

Source: Refinitiv SDC code: C4a1


2 China Securities 8 3,148.93 8.1

3 CICC 18 3,001.00 7.7

4 Citic 8 2,135.89 5.5

5 Goldman Sachs 14 1,872.44 4.8

6 UBS 13 1,784.71 4.6


8 HSBC 9 1,275.03 3.3

9 JP Morgan 9 1,070.09 2.7

10 Citigroup 8 1,056.67 2.7

Total 461 38,937.66

ASIA-PACIFIC EQUITIES (EX-JAPAN)BOOKRUNNERS: 1/1/2020–31/3/2020






3 CICC 18 3,001.00 8.3

4 Citic 8 2,135.89 5.9

5 Goldman Sachs 13 1,812.81 5.0

6 UBS 13 1,784.71 4.9


8 HSBC 9 1,275.03 3.5

9 JP Morgan 9 1,070.09 3.0

10 Citigroup 8 1,056.67 2.9

Total 406 36,244.95


Macquarie Capital

CHINA

KANGJI MEDICAL CHOOSES HONG KONG

KANGJI

MEDICAL

Bank of America CLSA and Goldman Sachs

WUXI BIOLOGICS BLOCK UPSIZED

down in WUXI BIOLOGICS (CAYMAN)

Morgan Stanley

BROKERAGES OPT FOR RIGHTS ISSUES TO EXPAND

SHANXI SECURITIES

Citic Securities HONGTA SECURITIES

Soochow Securities was the

VIVA TRIMS LI NING STAKE

LI NING

HSBC


EQUITIES ASIA-PACIFIC

ASIA-PACIFIC IPOsBOOKRUNNERS: 1/1/2020–31/3/2020


Including all domestic and international deals Proportional credit


1 CICC 13 2,464.65 14.9

2 Citic 4 1,623.56 9.8


4 Sinolink Securities 4 770.82 4.7

5 Bualuang Securities 1 539.74 3.3

6 Kasikornbank PCL 1 539.74 3.3

7 Phatra Securities 1 539.74 3.3

8 UBS 4 487.16 2.9

9 GF Securities 7 482.25 2.9


Total 182 16,556.66

ASIA-PACIFIC SECONDARY OFFERINGSBOOKRUNNERS: 1/1/2020–31/3/2020


Including all domestic and international deals and rights issues Proportional credit


1 Morgan Stanley 12 2,948.05 13.2

2 Goldman Sachs 13 1,824.35 8.2


4 UBS 9 1,297.55 5.8


6 JP Morgan 8 1,026.89 4.6

7 HSBC 7 946.49 4.2

8 Citigroup 4 808.38 3.6

9 Sumitomo Mitsui 15 766.23 3.4

10 Industrial Securities 3 556.48 2.5

Total 278 22,379.58

ASIA-PACIFIC IPOs (EXCLUDING JAPAN)BOOKRUNNERS: 1/1/2020–31/3/2020


Including all domestic and international deals Proportional credit


1 CICC 13 2,464.65 15.5

2 Citic 4 1,623.56 10.2


4 Sinolink Securities 4 770.82 4.8

5 Phatra Securities 1 539.74 3.4

6 Bualuang Securities 1 539.74 3.4

7 Kasikornbank PCL 1 539.74 3.4

8 UBS 4 487.16 3.1

9 GF Securities 7 482.25 3.0


Total 153 15,947.86

ASIA-PACIFIC SECONDARY OFFERINGS

(EXCLUDING JAPAN)BOOKRUNNERS: 1/1/2020–31/3/2020


Including all domestic and international deals and rights issues Proportional credit

Source: Refinitiv SDC code: C04a5r


2 Goldman Sachs 12 1,764.72 8.7


4 UBS 9 1,297.55 6.4


6 JP Morgan 8 1,026.89 5.1

7 HSBC 7 946.49 4.7

8 Citigroup 4 808.38 4.0

9 Industrial Securities 3 556.48 2.7

10 CICC 5 536.36 2.6

Total 252 20,295.67


CRM FULLY EXERCISES GREENSHOE

CHINA RESOURCES MICROELECTRONICS has raised

CICC

NJCG TO KICK OFF SHANGHAI IPO

NINGBO JINTIAN COPPER

Caitong Securities

NSI TO KICK OFF STAR IPO

NATIONAL SILICON INDUSTRY GROUP

Haitong Securities

PEIJIA TO SEEK HK IPO

PEIJIA MEDICAL

Huatai International and Morgan Stanley

DUO CLEAR STAR IPO HEARINGS

FARASIS ENERGY (GAN

ZHOU) and SINOCELLTECH GROUP

Huatai United Securities Citic Securities and

Soochow Securities

CICC

SUNKWAN PROPERTIES PLANS IPO

SUNKWAN PROPERTIES

ABC International


TOTAL NUMBER AND VOLUME OF EQUITY AND EQUITY-RELATED ISSUES BY COUNTRY1/1/2020–31/3/2020

Volume No of Volume No of

Country US$(m) issues Country US$(m) issues

Saudi Arabia 699.7 1

South Africa 699.1 5

Israel 190.9 7

Morocco 83.3 1

Malawi 28.7 1

Africa/Middle East 1,701.7 15

China 27,877.0 159

India 5,940.7 26

Australia 3,939.4 128

Japan 2,937.8 58

Thailand 2,524.6 3

Hong Kong 2,520.6 30

Singapore 804.2 12

South Korea 685.3 14

Taiwan 472.2 20

Philippines 251.3 1

New Zealand 207.7 3

Malaysia 204.7 34

Indonesia 201.4 19

Macau 9.1 1

Asia-Pacific 48,576.0 508

United States of America 36,658.1 155

Brazil 8,102.9 11

Canada 4,494.2 61

Bermuda 471.2 4

British Virgin Islands (UK) 69.0 1

Americas 49,795.4 232

Germany 4,648.6 10

United Kingdom 4,393.2 76

Switzerland 4,223.8 7

France 2,871.4 11

Netherlands 2,346.2 3

Denmark 1,438.3 4

Russian Federation 1,250.0 1

Sweden 1,016.0 20

Italy 981.5 6

Guernsey 830.1 2

Finland 693.2 2

Turkey 509.5 2

Norway 404.5 15

Portugal 318.6 1

Austria 318.0 2

Spain 163.2 1

Poland 62.8 2

Bulgaria 26.8 2

Ireland 8.4 4

Jersey 4.6 1

Europe 26,508.7 172

Total 126,581.4 927

Source: Refinitiv


JUNSHI BIO CLEARS STAR IPO HEARING

SHANGHAI JUNSHI BIOSCIENCES has

CICC Guotai Junan and Haitong Securities

CANBRIDGE PHARMA MULLS IPO

CANBRIDGE

PHARMACEUTICALS

CSPG UNIT FILES FOR SHENZHEN IPO

CHINA SOUTHERN POWER GRID ENERGY EFFICIENCY &

CLEAN ENERGY

China Securities GF Securities

HENLIUS BIOTECH EYES A-SHARE LISTING

SHANGHAI HENLIUS BIOTECH is

INDIA

MEDPLUS PLANS UP TO RS8bn IPO

MEDPLUS

NEW ZEALAND

KATHMANDU TAPS NZ$207m FUNDRAISING

KATHMANDU HOLDINGS

Craigs Investment Partners, Credit Suisse, Forsyth Barr and Jarden Securities

SOUTH KOREA

TEMASEK SEALS TWO CELLTRION TRADES

CELLTRION and Celltrion Healthcare

CELLTRION HEALTHCARE

Citigroup and Morgan Stanley


EQUITIES ASIA-PACIFIC


SINGAPORE

REITs UNDER EQUITY PRESSURE – OCBC

THAILAND

PTT OIL AND RETAIL FILES FOR IPO

PTT OIL AND RETAIL BUSINESS

Bank of America Bualuang Finansa JP MorganKasikorn Morgan Stanley Phatra and Tisco Securities

THAI LIFE INSURANCE HIRES BANKS

THAI LIFE INSURANCE has hired Bank of America and Nomura

EUROPE/MIDDLEEAST/AFRICA

ESTONIA

TALLINK LOOKS FOR STATE FUNDING

TALLINK GRUPP

ITALY

MEDICAL MASK COMPANY GVS ON TRACK TO FLOAT

GVS

Goldman Sachs Mediobanca

BPER ON TRACK AS INTESA REITERATES UBI TAKEOVER

BPER BANCA

Mediobanca

Rothschild



NORWAY

KONGSBERG AUTOMOTIVE PLANS €100m CAPITAL RAISE

KONGSBERG AUTOMOTIVE

UK

HAYS RAISES £200m IN PRIMARY ABB

HAYS

Bank of America, Jefferies and UBS were


EQUITIES EMEA

EMEA COMMON STOCK ISSUER LEGAL ADVISERS1/1/2020–31/3/2020

No of Total Share

Legal adviser issues US$(m) (%)

1 Bar & Karrer 1 2,402.5 9.3

2 Cooley 5 728.5 2.8

3 Law Firm of Salah 1 699.7 2.7

Al-Hejailan

4 Sullivan & Cromwell 1 635.9 2.5

5 Kromann Reumert 1 411.5 1.6

6 Simpson Thacher 1 364.3 1.4

& Bartlett

7 Roschier Advokatbyra 2 291.6 1.1

8 Mayer Brown 2 253.2 1.0

9 Linklaters 1 250.1 1.0

=9 Webber Wentzel 1 250.1 1.0

Total 181 23,993.91


Source: Refinitiv SDC code: AX3

EMEA COMMON STOCK MANAGER LEGAL ADVISERS1/1/2020–31/3/2020

No of Total Share


1 Linklaters 4 2,628.1 10.2

2 Freshfields Bruckhaus 2 879.4 3.4

Deringer

3 Baker Mckenzie 6 569.6 2.2

4 Allen & Overy 2 562.4 2.2

5 Proskauer Rose 1 411.5 1.6

=5 Plesner 1 411.5 1.6

7 Davis Polk & Wardwell 1 250.1 1.0

=7 ENSafrica 1 250.1 1.0

9 Attorneys At Law Borenius 1 198.1 0.8

10 Covington & Burling 3 194.6 0.8

Total 181 23,993.91



EMEA EQUITIES BOOKRUNNERS: 1/1/2020–31/3/2020





Source: Refinitiv SDC code: C4cr

1 Credit Suisse 7 3,089.87 12.9

2 Goldman Sachs 15 2,255.28 9.4


4 Citigroup 14 1,738.69 7.2

5 JP Morgan 13 1,619.56 6.7

6 Barclays 11 1,531.03 6.4

7 UBS 5 1,285.78 5.4


9 Jefferies 5 878.80 3.7

10 Nordea 9 687.97 2.9

Total 181 23,993.91

EMEA IPOs BOOKRUNNERS: 1/1/2020–31/3/2020



Including all domestic and international deals

Source: Refinitiv SDC code: C7c

1 Riyadh Bank 1 233.23 14.1

=1 Jadwa Investment 1 233.23 14.1

=1 EFG Hermes 1 233.23 14.1

4 Peel Hunt 1 122.67 7.4

5 Cenkos Securities 1 103.75 6.3


=6 Citigroup 1 72.86 4.4

=6 Goldman Sachs 1 72.86 4.4

=6 Barclays 1 72.86 4.4

=6 HSBC 1 72.86 4.4

Total 11 1,652.40

EMEA RIGHTS ISSUE UNDERWRITING BOOKRUNNERS: 1/1/2020–31/3/2020




Source: Refinitiv SDC code: C8fr

1 Nordea 2 210.91 29.5

2 Citigroup 1 205.75 28.8

3 Renta 4 Banco 1 163.18 22.8

4 Attijari Bank 1 41.62 5.8

5 BMCE Cap Conseil 1 41.62 5.8

6 Elana Financial 1 19.97 2.8

7 Mid-Capital 1 8.82 1.2

8 DNB 2 8.08 1.1

9 Ip De Novo Ead 1 6.86 1.0

10 Carlsquare 1 3.84 0.5

Total 14 715.60


AUTO TRADER RAISES £186m IN PRIMARY ABB

AUTO TRADER

Bank of America

PRIMEWAGON FUNDS ASTON MARTIN TAIL-SWALLOW

ASTON MARTIN LAGONDA got the go-ahead at its

Deutsche Bank and JP Morgan


ALL FRENCH EQUITIESBOOKRUNNERS: 1/1/2020–31/3/2020



Source: Refinitiv SDC code: C4c2r

1 BNP Paribas 4 389.78 16.1

2 SG 5 364.46 15.0



5 Natixis 2 166.27 6.9


=6 BBVA 1 162.30 6.7

=6 Deutsche Bank 1 162.30 6.7

=6 JP Morgan 1 162.30 6.7

=6 Commerzbank 1 162.30 6.7

Total 10 2,424.53

ALL GERMAN EQUITIESBOOKRUNNERS: 1/1/2020–31/3/2020




1 UBS 2 542.22 22.1




5 Berenberg 1 121.60 5.0

6 BNP Paribas 1 90.85 3.7

=6 JP Morgan 1 90.85 3.7

=6 HSBC 1 90.85 3.7

=6 UniCredit 1 90.85 3.7

=6 Barclays 1 90.85 3.7

Total 8 2,449.94

ALL ITALIAN EQUITIESBOOKRUNNERS: 1/1/2020–31/3/2020




1 Citigroup 3 276.34 28.2

2 Mediobanca 2 150.62 15.3


=3 Barclays 1 124.99 12.7

=3 Banca IMI 1 124.99 12.7


7 Banca Agricola Man 1 32.58 3.3

=7 BofA Securities 1 32.58 3.3

9 Envent CM 1 6.38 0.7

Total 6 981.47

ALL UK EQUITIESBOOKRUNNERS: 1/1/2020–31/3/2020




1 Barclays 7 1,136.55 25.9



4 JP Morgan 4 300.89 6.8

5 Numis 6 270.77 6.2



8 Peel Hunt 5 171.02 3.9

9 Canaccord Genuity 2 161.47 3.7

10 HSBC 2 136.89 3.1

Total 76 4,393.22

ALL NORDIC EQUITIESBOOKRUNNERS: 1/1/2020–31/3/2020



Source: Refinitiv SDC code: C4c6

1 Nordea 9 687.97 19.4


3 Carnegie 14 409.86 11.5

4 Danske Bank 3 333.21 9.4

5 Citigroup 2 302.60 8.5


=6 Morgan Stanley 1 228.44 6.4

8 Sundal Collier 8 165.20 4.7

9 Swedbank 4 139.97 3.9

10 Pareto 5 82.39 2.3

Total 41 3,551.96


Morgan Stanley

AMERICAS

UNITED STATES

US ECM GRINDS INTO ACTION

ZENTALIS PHARMACEUTICALS

CARNIVAL

CARVANA raised


EQUITIES AMERICAS

Danske resolves Bavarian Nordic stick for Citi and Nordea

DENMARK Banks held stock after 68% take-up for DKr2.82bn rights issue

The first major stick position to result from a

European rights issue in the current crisis has

been resolved quickly and efficiently, with an

unusual and opportunistic transaction carried

out by Danske Bank last week in Danish biotech

BAVARIAN NORDIC.

On Monday, Bavarian Nordic reported take-up

of 68% for its fully underwritten DKr2.82bn

(US$419.3m) rights issue, leaving Citigroup and

Nordea with a residual holding worth around

US$135m at the time.

Danske was co-lead manager on the rights

issue, and Needham & Company a co-manager,

with neither underwriting.

In a move described as opportunistic

by several sources, Danske scouted out

appetite among investors for the stock on

Wednesday and then approached Citigroup

and Nordea with an offer of DKr104.50 per

share. The 6.4m shares were then placed

with investors, most of whom were already

shareholders.

At DKr104.50 per share, pricing was a 2.3%

discount to Wednesday’s close and the trade

totalled around DKr668.8m (US$96.5m). The

rights issue pricing was DKr109 per share.

While large institutional investors showed

up for the rights issue, the disappointing

result of 68% take-up was blamed on private

investors’ standing by as equity markets

plummeted.

In line with Danish regulations, both banks

were obliged to publicly disclose they had

holdings in excess of 5% and have since said

their holdings are now below 5%.

QUICK RESOLUTION

It is a positive and collaborative conclusion to

the first major rights issue stick in a European

company that got caught up in the Covid-19

pandemic, having been in the planning since

September.

Sticks are often a sensitive topic, with banks

unnatural shareholders placing an overhang on

the underlying stock and unwelcome publicity

for the company concerned.

“From the company perspective we are

more than happy that this block trade was

orchestrated so rapidly and at such a good

price so we have no overhang in our stock,” a

spokesperson for Bavarian Nordic said. He also

praised the banks for working together.

Bavarian Nordic shares soared as much as

16% on Thursday following the disposal. As the

shares were mostly placed with shareholders the

surprise sale was particularly painful for those

that had shorted the stock.

Clearly Citigroup and Nordea had their own

plans for how to unwind their stakes but it was

perhaps helpful that a third-party was able to

effect the exit.

Banks are naturally cautious about

coordinating to manage sticks since there is an

ongoing criminal case in Australia that centres

on the legality of this standard market practice.

And as Danske was not sitting on stock it may

have found it easier to solicit interest.

Bavarian Nordic’s main shareholder ATP,

Denmark’s state pension fund, declared an

increase in its stake to 11.12% on Thursday

following the trade.

The biotech firm first announced the

planned fundraising in October, well before the

coronavirus crisis came into sight. The proceeds

will repay a €185m bridge loan used to acquire

the manufacturing and global rights to two

commercial vaccines.

Lucy Raitano


EVO PAYMENTS

REDFIN

DAVE & BUSTER’S

ENTERTAINMENT

KEROS IPO IS A VIRTUAL REALITY

KEROS THERAPEUTICS


LATIN AMERICA EQUITY, EQUITY-RELATED BOOKRUNNERS: 1/1/2020–31/3/2020



2 Banco Bradesco 7 1,032.8 12.8

3 XP Investimentos 5 857.6 10.6


5 Banco do Brasil 3 773.1 9.5



8 Citigroup 1 650.1 8.0

9 Itau Unibanco 7 466.4 5.8

10 Banco BTG Pactual 5 296.6 3.7

Total 11 8,102.9Including all domestic and international deals and rights issues

Source: Refinitiv SDC code:C1f

US EQUITIESBOOKRUNNERS: 1/1/2020–31/3/2020



Source: Refinitiv SDC code: C3r

1 Morgan Stanley 25 4,176.00 16.3

2 Goldman Sachs 27 3,874.15 15.2

3 JP Morgan 30 2,821.56 11.0


5 Citigroup 17 1,608.42 6.3

6 Jefferies 20 1,248.20 4.9

7 Barclays 13 1,190.74 4.7

8 Cowen & Co 17 1,009.92 3.9

9 UBS 10 887.01 3.5

10 Wells Fargo 15 871.18 3.4

Total 139 25,571.25

US IPOsBOOKRUNNERS: 1/1/2020–31/3/2020



Source: Refinitiv SDC code: C6

1 JP Morgan 7 723.76 13.6


3 Jefferies 5 470.45 8.8

4 Barclays 3 455.18 8.5




8 Cowen & Co 4 289.42 5.4

9 Citigroup 4 250.04 4.7

10 UBS 1 232.88 4.4

Total 18 5,340.09

US SECONDARY OFFERINGSBOOKRUNNERS: 1/1/2020–31/3/2020



Source: Refinitiv SDC code: C8ar

1 Morgan Stanley 20 3,786.33 18.7

2 Goldman Sachs 22 3,310.68 16.4


4 JP Morgan 23 2,097.80 10.4

5 Citigroup 13 1,358.38 6.7

6 Wells Fargo 13 799.51 4.0

7 Jefferies 15 777.75 3.8

8 Barclays 10 735.56 3.6

9 Cowen & Co 13 720.50 3.6

10 UBS 9 654.13 3.2

Total 121 20,231.16

ECM DEALS: WEEK ENDING 3/4/2020

Stock Country Date Amount Price Deal type Bookrunner(s)

Coles Australia 31/03/2020 A$1.07bn A$15.39 Follow-on (Secondary) Goldman Sachs, UBS

IDP Education Australia 02/04/2020 A$225m A$10.65 Follow-on (Primary) Macquarie Capital

NEXTDC Australia 03/04/2020 A$672m A$7.80 Follow-on (Primary) Citigroup, Royal Bank of Canada

Webjet Australia 02/04/2020 A$461m A$1.70 Follow-on (Primary) Credit Suisse, Goldman Sachs, Ord Minnett

AMS Austria 30/03/2020 SFr666m SFr90.20 Rights issue HSBC, UBS, BofA, Citigroup, Commerzbank, DB, MS

Li Ning China 01/04/2020 HK$1.5bn HK$21.52 Follow-on (Secondary) HSBC

WiMi Hologram Cloud China 01/04/2020 US$26m US$5.50 IPO (Primary) Benchmark Company, Valuable Capital, Maxim,

China Merchants Securities (HK), AMTD,

BOC Intl and Axiom Capital Management

WuXi Biologics (Cayman) China 01/04/2020 HK$4.6bn HK$96.80 Follow-on (Secondary) Morgan Stanley

HDFC Life India 26/03/2020 Rs22bn Rs441.25 Follow-on (Secondary) BofA

Oisix Ra Daichi Japan 30/3/2020 ¥4.8bn ¥1,379 Follow-on (Primary) SMBC Nikko

Kathmandu Holdings New Zealand 02/04/2020 NZ$207m NZ$0.50 Follow-on (Primary) Craigs Investment Partners, Credit Suisse,

Forsyth Barr, Jarden Securities

Celltrion South Korea 02/04/2020 W459bn W178,695 Follow-on (Secondary) Citigroup, Morgan Stanley

Celltrion Healthcare South Korea 02/04/2020 W160bn W72,285 Follow-on (Secondary) Citigroup, Morgan Stanley

Amadeus IT Group Spain 04/02/2020 €750m €39 Accelerated bookbuild (Primary) JP Morgan, Citigroup, Credit Agricole CIB

Auto Trader UK 31/03/2020 £186m 400p Accelerated bookbuild (Primary) BofA

Hays Group UK 04/01/2020 £200m 95p Accelerated bookbuild (Primary) BofA, Jefferies, UBS

Agree Realty US 30/03/2020 US$152.5m US$61 Accelerated bookbuild (Primary) Citigroup, Jefferies

Carnival US 04/01/2020 US$500m US$8 Follow-on (Primary) BofA, Goldman Sachs, JP Morgan

Invitae US 04/01/2020 US$160m US$9 Accelerated bookbuild (Primary) JP Morgan, Cowen

Nevro US 04/01/2020 US$136.5m US$84 Accelerated bookbuild (Primary) Morgan Stanley

Zentalis Pharmaceuticals US 04/02/2020 US$165m US$18 IPO (Primary) MS, Jefferies, SVB Leerink, Guggenheim Securities


Jefferies SVB Leerink and Piper Sandler

INVITAE RAISES US$160m OVERNIGHT

INVITAE

JP Morgan and Cowen

NEVRO PRICES US$301m IN TWO PARTS

NEVRO


EQUITIES AMERICAS

GLOBAL CONVERTIBLE OFFERINGSBOOKRUNNERS: 1/1/2020–31/3/2020


Including exchangeables and domestic offerings.

Source: Refinitiv SDC code: C9

1 Goldman Sachs 12 3,281.31 12.9


3 JP Morgan 14 3,045.44 12.0

4 Morgan Stanley 12 2,531.85 10.0

5 Barclays 5 1,171.71 4.6

6 Citigroup 6 1,167.55 4.6

7 Wells Fargo 2 848.86 3.3

8 BNP Paribas 3 701.80 2.8

9 CICC 3 701.63 2.8

10 Citic 4 665.08 2.6

Total 74 25,435.11

GLOBAL CONVERTIBLE OFFERINGS – US BOOKRUNNERS: 1/1/2020–31/3/2020


Source: Refinitiv SDC code: C9a

1 Goldman Sachs 9 2,665.53 23.1


3 JP Morgan 7 1,702.20 14.7


5 Wells Fargo 2 848.86 7.3

6 Barclays 3 693.33 6.0

7 Jefferies 2 248.75 2.2

8 Truist Financial Corp 2 151.36 1.3

=8 Citigroup 2 151.36 1.3

10 RBC 1 150.00 1.3

Total 20 11,557.98

GLOBAL CONVERTIBLE OFFERINGS – EMEA BOOKRUNNERS: 1/1/2020–31/3/2020


Including exchangeables.

Source: Refinitiv SDC code: C09d

1 JP Morgan 4 917.46 21.8


3 BNP Paribas 2 501.80 11.9

4 UBS 2 340.86 8.1

5 HSBC 1 278.38 6.6

=5 Barclays 1 278.38 6.6

=5 UniCredit 1 278.38 6.6

=5 Citigroup 1 278.38 6.6

9 VTB Capital 1 250.00 5.9

=9 Goldman Sachs 1 250.00 5.9

Total 6 4,216.28

ALL INTERNATIONAL ASIAN CONVERTIBLESBOOKRUNNERS: 1/1/2020–31/3/2020



Source: Refinitiv SDC code: M10

1 Citigroup 3 737.81 17.9


3 JP Morgan 3 425.78 10.3




7 UBS 2 315.78 7.6

8 HSBC 2 225.78 5.5

9 Barclays 1 200.00 4.8

=9 BNP Paribas 1 200.00 4.8

Total 9 4,130.06

ALL INTERNATIONAL ASIAN CONVERTIBLES

(EXCLUDING JAPAN) BOOKRUNNERS: 1/1/2020–31/3/2020



Source: Refinitiv SDC code: M11

1 Citigroup 3 737.81 19.0


3 JP Morgan 3 425.78 11.0



6 UBS 2 315.78 8.1


8 HSBC 2 225.78 5.8

9 Barclays 1 200.00 5.1

=9 BNP Paribas 1 200.00 5.1

Total 6 3,884.98


Morgan Stanley

AGREE FLIPS FROM ATM TO STOCK SALE

AGREE REALTY

Citigroup Jefferies and Wells Fargo

CARVANA TAPS PIPE FOR US$600m

ZENTALIS SOARS ON NASDAQ DEBUT

ZENTALIS PHARMACEUTICALS

Morgan Stanley Jefferies SVB Leerink and Guggenheim Securities


EQUITY-LINKED DEALS WEEK ENDING: 3/4/2020

Issuer Country Date Amount Greenshoe Tenor Coupon/YTM % Premium (%) Bookrunner(s)

Amadeus IT Group Spain 04/02/2020 €750m – 5y 1.50 45 JP Morgan, Citigroup, Credit Agricole CIB

Carnival US 04/01/2020 US$1.75bn US$262.5m 3y 5.75 25 BofA, Goldman Sachs, JP Morgan

Nevro US 04/01/2020 US$165m US$24.8m 5y 2.75 25 Morgan Stanley

EMEA CONVERTIBLE, LEGAL ADVISER TO ISSUER1/1/2020–31/3/2020

No of Total Share


1 Morgan Lewis & Bockius 1 1,250.0 29.7

2 Linklaters 1 250.0 5.9

3 Baker Mckenzie 1 181.7 4.3

Total 6 4,216.3

Including exchangeables and domestic.


EMEA CONVERTIBLE, LEGAL ADVISER TO

MANAGER1/1/2020–31/3/2020

No of Total Share


1 Freshfields Bruckhaus 1 1,948.6 46.2

Deringer

2 Linklaters 2 1,389.1 33.0 Total 6 4,216.3

Including exchangeables and domestic.




INTERNATIONAL FINANCING REVIEW CONTACTS

LONDON, HEAD OFFICE

5 Canada SquareLondon E14 5AQTel +44 (0)20 7250 1122

NEW YORK

3 Times Square18th FloorNew YorkNY10036

HONG KONG

Three Garden RoadCentralHong Kong Tel +852 3761 1800

SINGAPORE

18 Science Park DriveSingapore 118229Tel +65 6775 5088

EDITOR

Matthew Davies +44 (0)20 7542 7504DEPUTY EDITOR

Equities/Structured equity: Owen Wild+44 (0)20 7542 8541

AMERICAS BUREAU CHIEF

Jack Doran+1 646 223 6302

ASSOCIATE EDITORS

Features and analysis: Gareth Gore+44 (0)20 7542 4279

US editor: Stephen Lacey+1 646 223 8808

Fixed-income, Emerging markets: Sudip Roy+44 (0)20 7542 4617

People & markets: Steven Slater+44 (0)20 7542 4367

Green/ESG Financing Editor: Tessa Walsh+44 (0)20 7542 4048

Derivatives: Christopher Whittall+44 (0)20 7542 3256

MANAGING EDITOR

Philip Wright+44 (0)20 7542 8144

IFR ASIA EDITOR

Steve Garton+852 2912 6670

HEAD OF US CREDIT

Paul Kilby+1 646 223 4733

HEAD OF ASIA CREDIT

Daniel Stanton+65 6417 4548

EQUITIES EDITOR, ASIA

Fiona Lau+852 2912 6673

ASSISTANT EDITORS: LONDON

Emerging Markets: Robert Hogg+44 (0)20 7542 9077

People & markets: Christopher Spink +44 (0)20 7542 3814

Equities/Structured equity: Robert Venes+44 (0)20 7542 8326

NEW YORK

Equities: Anthony Hughes+1 646 223 8174

SINGAPORE

Equities: Anuradha Subramanyan +65 6417 4547

SENIOR CREDIT CORESPONDENT

+65 6417 4549

SENIOR REPORTERS: LONDON

Fixed-income/Structured Finance: Chris Moore+44 (0)20 7542 5018

Fixed-income: Jon Penner+44 (0)20 7542 7348

NEW YORK

Fixed-income: +1 646 223 7586

People & markets: Philip Scipio+1 646 223 8767

HONG KONG

People & markets: +852 2841 5878

Fixed-income: Carol Chan+852 2912 6604

SYDNEY

Fixed-income: John Weavers+612 9373 1655

TOKYO

Fixed-income: Takahiro Okamoto+813 6441 1773

REPORTERS: LONDON

Fixed-income: Edward Clark+44 (0)207 542 7630

Fixed-income: Eleanor Duncan+44 (0)207 542 5016

Fixed-income: Tom Revell+44 (0)207 542 2794

Equities: Lucy Raitano+44 (0)20 7542 4282

Fixed-income: Malicka Sielinou+44 (0)207 542 6907

NEW YORK

Fixed-income: William Hoffman+1 646 223 6141

Equities: Robert Sherwood+1 646 223 8792

High-yield: +1 646 223 8388

HONG KONG

Equities: Candy Chan+852 2912 6672

Fixed-income: Jihye Hwang +852 2843 1679

SINGAPORE

Fixed-income: Krishna Merchant+91 9833847353

BEIJING

Equities: Karen Tian+86 10 6627 1045

Credit: Yanfei Wang+86 10 6627 1104

CREDIT EDITOR

Alex Chambers+44 (0)20 7542 8389

DEPUTY CREDIT EDITOR

Helene Durand+44 (0)20 7542 3469

NEWS EDITORS

+44 (0)20 7542 7432

DESK EDITORS

+852 2912 6612

+44 (0)20 7542 9703

David Holland +852 2912 6676

CHIEF SUB-EDITOR

Richard Stanbury

EDITORIAL ASSISTANT

Anna Farish+44 (0)20 7542 3474

BUREAU CHIEF: LONDON

Chris Mangham

+44 (0)20 7542 3582

BUREAU CHIEF: HONG KONG

Prakash Chakravarti +852 2912 6671

BUREAU CHIEF: NEW YORK

Michelle Sierra+1 646 223 8592

DEPUTY EDITOR: ASIA-PACIFIC

Chien Mi Wong +852 2912 6611

SENIOR REPORTERS: LONDON

+44 (0)20 7542 0651

Alasdair Reilly +44 (0)20 7542 3197

Claire Ruckin+44 (0)20 7542 1891

NEW YORK

+1 646 223 4697

Kristen Haunss+1 646 223 6790

Aaron Weinman+1 646 223 6278

HONG KONG

Apple Li+852 2912 6685

Evelynn Lin +852 2912 6607

SINGAPORE

Mirzaan Jamwal +65 6417 4541

SYDNEY

+61 2 9321 8179

TOKYO Wakako Sato+813 6441 1876

REPORTER: LONDON

Prudence Ho+44 (0)20 7542 2875

NEW YORK

Daniela Guzman+1 646 223 6667

Andrew Hedlund+1 646 223 5558

Sasha Padbidri+1 646 223 4442

PRINT/WEB PRODUCTION, LONDON

Head of production: Clive George+44 (0)20 7542 3869

IFR production manager: Carole Styles

Gavin White

GLOBAL HEAD – ADVERTISING & SPONSORSHIP SALES

Shahid Hamid+65 9755 5031

ADVERTISING & SPONSORSHIP SALES DIRECTOR Leonie Welss+44 (0)20 7542 7752

GLOBAL ADVERTISING PRODUCTION MANAGER

+44 (0)20 7542 4348

SUBSCRIPTION SALES ENQUIRIES UK/EMEA: +44 (0)20 7542 4569Americas: +1 646 223 5543China, Hong Kong, Japan, Korean, Taiwan

Alan Wong +852 2912 6606

Australia, India, Indonesia, Malaysia,

Singapore, Thailand

Samantha Harris +612 9373 1749

CLIENT SERVICES [email protected]

NEW ISSUES LEAGUE TABLE & DATABASE Loans: +44 (0)20 7542 0971

ECM: Rebecca Cox+44 (0)20 7542 7376

DCM: +44 (0)20 7542 4376

REPRINTS OR LICENCE TO COPY

+44 (0)20 7542 4348

E-MAIL ADDRESSES

11 IFR Masthead 2327 p107.indd 107 03/04/2020 19:30:29


INTERNATIONAL FINANCING REVIEW INDEXINTERNATIONAL FINANCING REVIEW INDEX

Aareal 19Abano Healthcare Group 91Adams NZ Bidco 91Aflac 67African Development Bank 33AG Mortgage Investment Trust 51Agree Realty 106AIA Group 67Airbus 3, 25, 43Air India 95Akbank 83Akzo Nobel 82Amadeus IT 95Amer Sports 92AMS 11Anheuser-Busch InBev 38, 86ANZ Bank New Zealand 19, 45AP Moller-Maersk 75Ares Management Corporation 23Argentina 70, 71Asda 4Asian Development Bank 30Aston Martin Lagonda 102Autoliv 83Auto Trader 102AutoZone 39Aveo Group 91Avianca 72Axis Bank 95BAE Systems 75Baidu 67BAM 82Banco Santander 50Bank of America 9, 21Bank Rakyat Indonesia 78Barclays 8, 9, 15, 21Base Resources 77BASF 75Bausch Health 86Bavarian Nordic 103BBVA 9Belgium 7, 30Bharat Petroleum 95Biogroup LCD 75BlackRock 15BME 23BNP Paribas 8Boels 75Boral 77BP 3, 41, 82BPER Banca 100Braskem 89Brazil 74British American Tobacco 25, 75Canadian Imperial Bank of Commerce 46Canbridge Pharmaceuticals 99CAR Inc 10Carlsberg 81Carnival Corp 4, 47, 103Carvana 103Casino 47Celltrion 10, 99Celltrion Healthcare 10, 99Ceridian HCM 89Chester B1 48Chile 74China Biologic Products Holdings 76China Resources Microelectronics 98China Singyes Solar Technologies Holdings 68China Strategic Holdings 68Cirsa 47Citigroup 8, 15, 17, 21, 22, 48City of Hamburg 36Coles Group 10Colombia’s 72Cosmo Energy Holdings 79Council of Europe Development Bank 12, 31CPPIB Capital Inc 32Credit Agricole 45Credit Mutuel Home Loan 45Credit Suisse 8CVS 39CyrusOne 86Dada Group 10Daimler 3, 41, 81Dave & Buster’s Entertainment 104

Deere & Co 88Dell International 39Dell Technologies 39Deutsche Bank 19, 21DJ US Banks index 14Donbass Fuel Energy Co Holding 94DTEK 7Duerr 81DXB Entertainments 83EcoGreen International Group 77Ecuador 72, 73Edgewell Personal Care 89El Corte Ingles 83Eldorado Resorts 90EMC Corp 39Enel 82Enstar 87E.ON 3, 40Euronext 23European Investment Bank 12, 31Evercore 13Evonik 75EVO Payments 104Experian 43Fannie Mae 51Farasis Energy (Gan Zhou) 98Fiat Chrysler 7Flemish Community 33FMS Wertmanagement 31Ford 86, 88Fox Corp 2Freddie Mac 51Free State of Bavaria 34Future Retail 68General Electric 88General Mills 2General Motors 86, 88Ginnie Mae 50Glencore 75, 83Goldman Sachs 15, 21Government Pension Investment Fund 22Grand City 3, 25, 40Greenhill 13Grupo Bimbo 89Gulf Marine Services 94GVS 100Hays 101HeidelbergCement 25Home Depot 39Honeywell 85Hongta Securities 97Hostess Brands 90HSBC 8, 9, 17Hydra RL BidCo 91IAG 84Iberdrola 41Iconix Brands 93IDBI Bank 69IDP Education 10, 77, 96IFC 33IG Group 19Imperial Brands 84Indian Railway Finance Corp 78, 95ING 8, 15, 19Intel 7Intesa Sanpaolo 8, 9Invitae 105Ireland 7, 35Israel 6ITC 95Jacobs Engineering 87Jefferies Financial Group 17, 21

Jiangxi Copper 68Jindal Steel and Power (Australia) 94Johnson Matthey 84JP Morgan 9, 15, 21, 22Kangji Medical 97Kathmandu Holdings 10, 77, 80, 99Kazakhstan 69Keros Therapeutics 104KfW 34Kinross Gold 88Kohl’s 87Kongsberg Automotive 101Kroger 87Kyrgyzstan 70

Lamar Advertising 89Land Berlin 34Land NRW 36Lazard 13LeasePlan 44Lebanon 70LGC 75Life Insurance Corporation of India 95Limitless 93Li Ning 10, 97Lloyds Bank Corporate Markets 44Lloyds Banking Group 44Local Government Funding Agency 37Louis Dreyfus Commodities Asia 80Lowe’s 39Luckin Coffee 10LVMH 40MedPlus 99Melrose 84Merlin 47Mexico 72, 74Micro Focus 75, 86Miniso 10Mitsubishi UFJ Financial Group 15Moelis & Co 13Monash IVF Group 77Mondelez International 87Morgan Stanley 15Murray Energy 93National Silicon Industry Group 98Nationwide Building Society 19Nederlandse Waterschapsbank 12, 31Neuberger Berman 15Nevro 105New Residential Investment 51New South Wales Treasury Corp 37New Zealand Debt Management 37New Zealand Treasury 37NEXTDC 10, 96Ningbo Jintian Copper 98Nomura 15Nomura Research Institute 23Nordic Investment Bank 12, 33Norfolk Southern 87Norilsk Nickel 75No Va Land Investment Group Corp 81NTPC 78Nvidia 7Oesterreichische Kontrollbank 36OMV 3, 41OneWeb 92oOh!Media 77Optivo 43Oracle 6, 28, 38Orange 3, 40Orbia 89Peijia Medical 98Pemex 73, 74Perella Weinberg 13Pernod Ricard 40Peru 74Perusahaan Listrik Negara 79Petrobras 74, 86, 88Petroleo Brasileiro 89Petroleum Geo-Services 82Pharmaceutical Product Development 86Pier 1 Imports 93Pirelli 82PJT Partners 13Pro-Pac Packaging 77Prosafe 7, 93Province of Ontario 32PTT Oil and Retail Business 100PureCircle 80Qatar 71Quebec 32Rabobank 19Redfin 104Resolute Mining 77Restar Holdings 80Restaurant Brands International 46, 89Ross Stores 39Rothschild & Co 13Royal Bank of Scotland 9Royal Caribbean 86Royal Dutch Shell 82

Royal Schiphol 3, 41Royole 10Saga 84Saint-Gobain 81Sanctuary Capital 43Santander 8, 9Santander Consumo 3 50Saracen Mineral Holdings 77Scape Australia Management 76Scentre Group 76, 77SEB 19Shanghai Dazhong Public Utilities (Group) 68Shanghai Henlius Biotech 99Shanghai Junshi Biosciences 99Shanxi Securities 97Shell 3, 41Shell International Finance 38Sinocelltech Group 98SIX 23, 75SMBC Group 23SML Group 92Societe Generale 8, 15Softbank 92South Africa 69Southwest Airlines 85Spark New Zealand 77Speedcast International 77, 90Spirit Airlines 88Sprint 28Standard Chartered 9State of Baden-Wuerttemberg 35State of Mecklenburg-Western Pomerania 34Stoxx Europe 600 banking index 14Sunkwan Properties 98Suzano 89Swedish Export Credit 30Sysco 2Tallink Grupp 100Targe 39Televisa 89Tenet Healthcare 46Thai Life Insurance 100TJX 39T-Mobile 28, 38, 85Toronto-Dominion Bank 46Total 3, 41Trafigura 75TransDigm 46Trans Retail Indonesia 79Tremont Mortgage Trust 51Trimco International Holdings 91TUI 81Two Harbors Investment Corp 51Tyman 85UBS 8Ulker 83Unibail-Rodamco-Westfield 3, 25, 40UniCredit 8United Kingdom 35Unitika 79US Federal Reserve 22US Foods 90Vale 74, 89Venezuela 70Virgin Australia Holdings 77VMware 39Volkswagen 3Volkswagen Financial Services 41, 43Vonovia 3, 40Wallonia 33Webjet 10, 77, 91, 96Wells Fargo 21Western Asset Mortgage Capital 51Whiting Petroleum 93Wollongong Coal 94Worley 76, 77WuXi Biologics (Cayman) 10, 97Xerox 85Ximalaya FM 10Xinneng (Hong Kong) Energy Investment 77Yageo 81YUM! Brands 5Zambia 70Zentalis Pharmaceuticals 103, 106

12 IFR Index 2327 p108.indd 108 03/04/2020 20:06:24

26th Annual Refinitiv LPC Loan Conference

Thursday September 17, 2020

Marriott Marquis, New York City

The longest-running event of its kind in the syndicated loan

market, this unique conference packs a full day of learning and

networking into a half day program. This streamlined format

enables attendees to spend part of their day gaining valuable

insight on multiple loan market topics from industry experts and

part of their day at their desks.

LPC’s annual conference covers topics including Sustainability/

ESG Lending, Leveraged Lending and the PE Capital Markets

perspective to name just a few.

Sponsorship opportunities are available. Contact us to discuss

this unique opportunity to reach the syndicated loan market

audience

https://refinitivlpc.ticketleap.com

[email protected]

THE MORE YOU LOOK,THE MORE YOU SEE.Test your investment strategies with our

unrivalled range of data and research.

refinitiv.com

Strange days indeed: hairy credits and wary Desperate ...dl.magazinedl.com/magazinedl/IFR...

Documents

Transcript of Strange days indeed: hairy credits and wary Desperate ...dl.magazinedl.com/magazinedl/IFR...