BONDS SUMMARY DETAILS
Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
-7 US$3.7bn Baa2/BBB/BBB BofA/Citi/JPM/TD -
T+85 area, T+60 -7 US$3.85bn -
(+/-5) -8 US$4.05bn Baa2/BBB/BBB BofA/Citi/JPM/TD -
T+95 area, T+70 3 US$600m -
(+/-5) Baa2/BBB/BBB BofA/Citi/JPM/TD
T+135 area, T+110 €4.2bn
(+/-5) €1.35bn Baa2/BBB-/BBB- Barc/RBC
T+mid-hi 300s, €1.4bn, 99acs
T+350 (the #)
€2.6bn
MS+70 area, MS+45 -5 €3.2bn A3/A- BNPP/Citi/ING/Nordea -
area €3.1bn
€2.8bn NR/BBB- BofA/DB/GS/JPM/Nomura -
2.5% area, 2.125% -13 €1.4bn
area, 2% €2bn -/BBB+ BNPP/CA-CIB/HSBC/Natx/SG Fr 60%, Ger/Aus/Switz 27%, S.Eur 5%,
€1.1bn -/A/A+ Barc/CMZ/ING/LBP/NatWest/SG UK/Ire 5%, Benelux 2%, Other 1%. AM
MS+115 area, MS+90 -5 €1.8bn, 215acs 70%, Ins/PF 22%, Bks/PB 6%, Other 2%.
area
€1.6bn -
MS +70 area, MS+45 -5 €1.85bn
area €1.9bn
€1.6bn
MS+95 area, MS+70 -5 €925m -/A/A+ Barc/CMZ/ING/LBP/NatWest/SG -
area
€1.1bn
MS+155/+160, -12 NR/BBB BoC/BNPP/GS/JPM/MS/UBS -
MS+125 area €1.4bn
€1.4bn
2.25% area, 1.875% -13 €1.8bn Ba2/BB+/BB+ BNPP/CA-CIB/Akros/BBVA/CS/DB/ -
area, 1.75% €3bn Baa1/BBB Santander/UBI/Uni -
MS+65 area, -2 £69m CA-CIB/HSBC/Barc/ICBCI
MS+40/+45 £1bn
£900m
MS+250 area, 15 Ba3/BB-/BB+ MS/Akros/BNPP/GS/BcaIMI/Medio/ -
-, 76acs Baa2/BBB Natx/UBI/Uni -
MS+65 area, MS+45 3 -, 64acs
area -10 CMZ/ING/MS/MUFG
MS+150/+155, -/BBB+ BNPP/Citi/ING/SG/Uni Ger/Aus 26%, Fr 24%, UK/Ire 16%, It
MS+125 area 13%, Benelux 6%, Iberia 6%, Switz 3%,
Nordics 3%, Other 3%. FM/AM 63%, OI
MS+75 area, MS+50 - NR/A-/A BNPP/Citi/DB/SEB 15%, Bks/PB 11%, Ins/PF 8%, HF 2%,
area Other 1%.
-
MS+85 area, MS+60 -5 Baa2/BBB Miz/MUFG/BNPP/CIC/CS/StCh -
area
MS+105/+110, M+80 -3 Baa2/BBB Miz/MUFG/BNPP/CIC/CS/StCh -
area
MS+85 area, MS+55 - A3/BBB+ BofA/CA-CIB/Citi/ING/Santan -
area
2.875% area, - -/BB/BB+ BNPP/HSBC/Saba -
2.875% yld NR/BBB / CMZ/CA-CIB/ING/Medio/Miz/MS/
Baa1/BBB+/BBB+ MUFG/RBC/SMBC Nikko Ger/Aus/Switz 36%, Nordic 29%, UK/Ire
MS+165 area, -7 DB/Nordea 28%, Benelux 4%, S.Eur 2%, Fr 1%. FM
MS+140 area 65%, OI 21%, Ins/PF 7%, Bks 5%, HF 2%.
BNPP/Citi/CS -
MS+80 area, MS+55 5
(+/-3)
3% area, 2.625% - Ba1/NR/BB+ Citi/CMZ/HSBC -
area, 2.5%
3.5% area, 3.125% - Ba1/NR/BB+ Citi/CMZ/HSBC -
area, 3%
MS+145/+150, - NR/BBB- BBVA/BNPP/Caixa/Santan -
MS+120 (+/-5)
G+90 area - A3/A- RBC -
Aa3/AA/AA- Barc/HSBC/Lloyds/NatWest -
G+90 area, 3.5 A3/BBB+ HSBC/Santan -
G+75/+80 0
G+115/+120, G+105
(+/-2)
MS+18/+20, -2 Aa1/AA- CS/DB Switz 100%. AM 53%, Ins 22%, PB 15%,
-3 PF 10%.
MS+82/+87, Fedafin: Baa stab./ BKB
MS+80/+85 CS: High BBB stab./ / CS/ZKB Switz 100%. AM 53%, Tsy 24.5%, Ins
ZKB: BBB+ stab. 14.5%, PF 6.5%, PB 1%, Corp 0.5%.
International Financing Review January 16 2021 49
GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 15/1/2021 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
Jan 12 2021 AMAG Leasing SFr230m Oct 27 2023 0.25 100
MS+92/Eidg+103.5 0.244
100.5
Jan 12 2021 Kraftwerke Oberhasli green SFr100m Feb 21 2031 0.125 MS+30/Eidg+56 0.07
100
NON CORE Melbourne Uni A$150m incr Jan 20 2031 1.97 100 - 1.97
Jan 12 2021 (A$0m) 2.9 99.62
Volkswagen Jan 21 2024 0.75 - 2.9
Jan 14 2021 Mercedes-Benz Australia Rmb500m Jan 22 2024 100 MS+73 0.878
Jan 14 2021 99.91
FINANCIALS A$150m 100
US DOLLARS 99.54
Jan 11 2021 Deutsche Bank T2 US$1.25bn Jan 14 2032 (Jan 2031) 3.729 99.96 T+260 3.729
100 T+37 0.869
Jan 11 2021 New York Life Global US$900m Jan 15 2026 0.85 100 T+115 2.277
Funding FAB T+60 1.095
Jan 12 2021 US$1.25bn Jan 20 2032 (Jan 2031) 2.277 99.92 T+62 1.456
Jan 12 2021 BPCE SNP US$1.75bn Jan 20 2026 1 100 T+277.7 3
Jan 12 2021 US$600m Jan 20 2028 1.45 100 - 2.75
BPCE 100
Jan 12 2021 US$1.75bn Apr 19 2051 (Jan 2031) 3 99.923 T+42 0.891
Jan 13 2021 Pacific Life Global Funding US$1.6bn Jan 21 2051 (Jan 2031) 2.75 SOFR+52.5 -
FAB 99.71 SOFR+30 -
99.06 T+22 0.426
Zurich Insurance T2 101.3 T+37 0.576
99.5
Nippon Life Insurance T2 100
Jan 13 2021 RBC US$1.25bn Jan 20 2026 0.875 99.67
Jan 13 2021 RBC US$300m Jan 20 2026 SOFR+52.5 99.89
Jan 13 2021 RBC US$700m Jan 19 2024 SOFR+30 99.89
Jan 13 2021 RBC US$1bn Jan 19 2024 0.425
Jan 14 2021 Nationwide Building Society US$1.25bn Jan 22 2024 0.55 99.67
EUROS
Jan 11 2021 BFCM €1bn Jul 19 2028 0.25 100 MS+62/B+94.9 0.289
Jan 11 2021 Credit Suisse Group €1.5bn
Jan 11 2021 Credit Suisse Group €1.5bn Jan 18 2033 0.625 100 MS+83/B+120.2 -
Jan 11 2021 LBBW SNP €750m 101.4
Jan 12 2021 Banco BPM SpA AT1 €400m Jan 16 2026 (Jan 2025) 3mE+100 3mE+68 -
99.93
Feb 21 2031 0.375 102 MS+63/B+92.4 0.426
Perpetual (Jan 2026) 6.5 MS+702.6 6.606
Jan 12 2021 BNP Paribas SNP €1bn Jan 19 2030 0.5 MS+83/B+115.7 0.542
€1bn Jan 19 2031 0.85
Jan 12 2021 UniCredit €1bn Jan 19 2026 0.325 MS+105/B+137.1 0.862
Jan 12 2021 UniCredit £375m MS+77/B+105 0.347
STERLING Societe Generale SNP SFr140m Dec 7 2027 1.25 G+120 1.301
Jan 11 2021
SKr400m
SWISS FRANCS SocGen SNP SKr250m Jul 26 2028 (Jul 2027) 0.375 MS+83/Eidg+99 0.374
Jan 15 2021
US$750m
NON CORE €1.5bn
Jan 11 2021 Ikano Bank Jan 19 2024 3mS+92 3mS+92 -
Jan 15 2024 3mS+75 - -
Jan 13 2021 Skandiabanken
COVERED BONDS
US DOLLARS
Jan 13 2021 Deutsche Pfandbriefbank Jan 19 2024 0.5 MS+23/T+29.4 0.524
Mar 18 2031 0.01 MS+3/B+34 -0.188
EUROS
Jan 11 2021 Caffil
50 International Financing Review January 16 2021
BONDS SUMMARY DETAILS
Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
MS+97/+102, -5 -, 69acs CS/ZKB Switz 100%. AM 63%, Ins 17%, PB 14.5%,
MS+92/+97 CS: Mid BBB/ PF 4%, Corp 1.5%.
-40 SFr380m, 39acs fedafin: Baa/ZKB: UBS
MS+35/+40, BBB- (all stable) Switz 100%. Bks/PB 35%, AM 21%, Ins
MS+30/+35 - A$0 21%, PF 20%, Tsy 3%.
- - UBS A+/CS A+/
0 - - fedafin A/ZKB A -
3.25% area - NR/AA+/NR/NR CBA -
MS+75 area US$1.4bn -
US$4bn A3/BBB+ CA-CIB
US$3.5bn A3/BBB+/BBB+ CBA/TD
US$900m
T+300 area, T+265 - US$3.6bn Ba2/BB+/BB+ DB -
(+/-5) US$5.5bn
Aaa/AA+/AAA
T+hi 50s, T+37 -1 US$1.9bn BofA/Citi/CS/JPM -
(the #) US$375m Baa2/A-/A
US$900m A1/A+/A+
T+145 area, -1 US$1.5bn A1/AA-/AA- BofA/Barc/Citi/GS/Natx/StCh/UBS -
US$2.3bn BofA/Barc/Citi/GS/Natx/StCh/UBS -
T+85 area, 1 A2/A CS/DB/GS/JPM -
€1.65bn A3/A-
T+80 area, T+62 -2 €3.9bn
(the #) €2.3bn
€1.15bn
3.375% area, 3% cpn - €560m Citi/DB/HSBC/Miz/UBS -
JPM/GS/Citi/BofA -
3.125% area, 13 €1.6bn
3%/3.125%, 2.75% €1.5bn
(the #) €1.5bn
T+High 50s, T+42 1 £425m, 35acs A2/A/AA- BofA/RBC/WFS/Santan/SGAS -
(the #) A2/A/AA- BofA/RBC/WFS/Santan/SGAS -
SFr140m, 44acs A2/A/AA- BofA/RBC/WFS/USB/Truist -
SOFR+Equiv, - A2/A/AA- BofA/RBC/WFS/USB/Truist -
SOFR+52 (the #) - A1/A/A+ BofA/Citi/JPM/NatWest -
-
SOFR+Equiv, -
SOFR+30 (the #) US$1.25bn
€3.3bn, 75acs
T+High 30s, T+22 2
(the #)
T+60 area, T+40 -2
(+/-3)
MS+80/+85, MS+65 7 Baa1/A-/A+ BNPP/CS/GS/Natx -
area Baa1/BBB+/A-
Baa1/BBB+/A-
MS+110 area, MS+85 5 A2/NR/A- CS -
area B3
3mE+85/+90, 3 Baa1/A-/A+ CS -
3mE+70 area Ba1/BBB/BBB-
Ba1/BBB/BBB-
MS+80/+85, MS+65 7 ABN/CA-CIB/HSBC/ING/LBBW/Natx -
area Baa2/A-/BBB
6.5% area, - Baa2/BBB/A- Citi/GS/Akros/Barc/BNPP/Medio/ -
UBS
6.375%/6.5%, 6.5% -
-
cpn
MS+100 area, - BNPP -
MS+85 (+/-2)
MS+125 area, - Uni Credit Suisse/Commezbank/ -
MS+110 area Danske Bank/ING/Natixis/Santander -
MS+95 area, MS+80 - Uni Credit Suisse/Commezbank/
area Danske Bank/ING/Natixis/Santander
G+130/+135, G+120 2.5 SG/NatWest/RBC/Santan UK/Ire 94%, Ger 3%, Switz 3%. AM 82%,
HFs 9%, Ins/PF 5%, Bks/PB 4%.
MS+82/+85 3 UBS Switz 100%, AM 60.71%, Bks/PB 21.71%,
Tsy 8%, Ins 5%, PF 4.57%.
-- Danske -
-- SEB -
MS+26 area - Aa1 Citi/CS/GS/NatWest -
Aaa/AA+/NR/AAA Barc/Citi/CMZ/SG/Uni
MS+7 area, MS+4 0 Fr 31%, Ger/Aus 30%, UK 18%, Nordics
(+/-1) 12%, It 4%, Switz 2%, Other 3%. Bks
51%, CB/OI 25%, AM 15%, Ins 9%.
International Financing Review January 16 2021 51
GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 15/1/2021 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
Jan 13 2021 Jyske Realkredit €500m Oct 1 2027 0.01 102.1 MS+6/B+35.3 -0.297
Jan 13 2021 Mediobanca €750m Feb 3 2031 0.01 100.9 MS+13/B+42.3 -0.077
Jan 13 2021 UniCredit Bank AG (HVB) €500m Jan 21 2036 0.01 99.95 MS+3/B+34.6 0.013
Jan 14 2021 DNB Boligkreditt green €1.5bn Jan 21 2031 0.01 102 MS+6/B+37.5 -0.19
Jan 15 2021 MunHyp €500m Oct 19 2039 0.01 99.57 MS+1/B+39.7 0.033
SWISS FRANCS MunHyp 0.5 106.2 MS+7/Eidg+31 -0.338
Jan 11 2021 SFr60m incr Jun 24 2028 0 101.8 MS+18 -0.352
(SFr320m) Jan 20 2026
Jan 13 2021 Valiant Bank 101.9
SFr270m
100
NON CORE Landshypotek Bank SKr800m incr Dec 2 2022 3mS+100 100 --
Jan 12 2021 (SKr1.95bn) 100
Urban One
HIGH YIELD Antero Resources US$825m Feb 1 2028 (Feb 2024) 7.375 100 T+659 7.375
US DOLLARS US$700m Feb 1 2029 (Feb 2024) 7.625 105.5 T+668 7.625
Jan 8 2021 104
Jan 11 2021 97 T+278 3.75
100
Jan 11 2021 Level 3 Financing US$900m Jul 15 2029 (Jan 2024) 3.75 100 T+330 4.25
sustainable 100
100 - 5.037
Jan 11 2021 Outfront Media Capital US$500m Jan 15 2029 (Jan 2024) 4.25 100
104.5 T+467 5.174
Jan 11 2021 PGT Innovations US$60m incr Aug 1 2026 (Aug 2021) 6.75 100
(US$365.06m) 100 T+1223 12.82
Jan 11 2021 Specialty Building Products US$75m incr Sep 30 2026 (Sep 2022) 6.375 100 T+174 2.875
Holdings (US$725m) 100 T+168 2.625
Jan 11 2021 Talos Production US$150m Jan 15 2026 (Jan 2023) 12 100 T+175 2.25
Jan 11 2021 T-Mobile USA US$1bn Feb 15 2031 (Feb 2026) 2.875 100 T+205 3
Jan 11 2021 T-Mobile USA US$1bn Feb 15 2029 (Feb 2024) 2.625 100
Jan 11 2021 T-Mobile USA US$1bn Feb 15 2026 (Feb 2023) 2.25 - 5.75
Jan 12 2021 Crowdstrike Holdings US$750m Feb 15 2029 (Feb 2024) 3 100 - 6.265
Jan 12 2021 Vector Group US$875m Feb 1 2029 (Feb 2024) 5.75 100w T+453 5
Jan 13 2021 CP Atlas Buyer Dec 1 2028 (Dec 2023) 7
US$175m incr 100 T+665 7.125
Jan 13 2021 Home Point Capital (US$335m) Feb 1 2026 (Feb 2023) 5 T+451 5
100 T+527 5.75
US$550m 100
T+418 5.125
Jan 14 2021 California Resources US$600m Feb 1 2026 (Feb 2023) 7.125 T+218 3.125
Jan 14 2021 Legends Hospitality Holding US$400m Feb 1 2026 (Feb 2023) 5 T+369 4.625
Jan 14 2021 Life Time US$925m Jan 15 2026 (Jan 2023) 5.75
B+398 3.25
Jan 14 2021 Mercer International US$875m Feb 1 2029 (Feb 2024) 5.125
Jan 14 2021 SBA Communications US$1.5bn Feb 1 2029 (Feb 2024) 3.125 B+590 5.25
Jan 14 2021 TransDigm US$1.2bn Jan 15 2029 (Jan 2024) 4.625
EUROS Verisure Holding AB €1.15m Feb 15 2027 (Feb 2023) 3.25
Jan 15 2021
Jan 15 2021 Verisure Midholding AB €1.175bn Feb 15 2029 (Feb 2024) 5.25
STERLING Together (Jerrold FinCo) £500m Jan 15 2027 (Jan 2023) 5.25 G+515 5.25
Jan 14 2021
Odfjell SLB NKr850m Jan 22 2025 3mN+575 3mN+575 -
NON CORE Verisure Midholding AB SKr1.5bn 3mS+575 -
Jan 14 2021 Feb 15 2029 (Feb 2024) 3mS+575
Jan 15 2021
52 International Financing Review January 16 2021
BONDS SUMMARY DETAILS
Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
-1 €1.8bn, 75acs -/AAA BNPP/Danske/Deka/Swed Ger/Aus 46%, Nordics 27%, UK/Ire 9%,
MS+10 area, MS+7 Benelux 9%, Fr 4%, Other 5%. Bks 62%,
(+/-1) €1.35bn NR/NR/AA- CMZ/BcaIMI/Medio/Natx/RBI AM 24%, CB/OI 14%.
It 54%, Ger/Aus 21%, Fr 10%, Switz 6%,
MS+17 area, MS+14 0 €2.5bn Aaa BLB/CA-CIB/Deka/Erste/Uni UK 6%, Nordics/Benelux 3%. Bks/PB
(+/-1) €3.2bn Aaa/AAA BNPP/DNB/ING/LBBW/SG 44%, FM 31%, OI 23%, Ins 2%.
-
MS+7 area -1 €875m Aaa CS/DZ/Helaba/LBBW/UBS Ger/Aus 39%, Benelux 22%, UK 21%,
MS+10 area - - Aaa UBS Fr 8%, Nordics 6%, Switz 2%, S.Eur
20acs Aaa BKB 2%. Bks 59%, FM 24%, CB/OI 15%, Ins/
MS+4 area - / CMZ/Valiant PF 2%.
- - - -/AAA Danske -
MS+18/+21 -5
Switz 100%. Tsy 49%, AM 41%, Bks/
- - PB 10%.
(1 of 3 leads) Nordics 52%, Switz 46%,
Other 2%. AM 71%, Bks 29%.
-
7.50% area - - B3/B- BofA/Guggenheim/Jeff -
- B3/B
7.75%/8%, 7.625% - - Ba3/BB JPM/Barc/Citi/CA-CIB/RBC/Truist/ -
WFS
- B2/B+
3.875% area - - B2/B+ MS/Citi/BofA/Barc/GS/JPM/RBC/ -
- B3/B- WFS/FITB/Miz/TD/Truist/DB/
- B3/B+ Regions/Citizens
- Ba3/BB/BB+
4.5%/4.75%, - - Ba3/BB/BB+ JPM/Miz/SMBC/BofA/BNPP/CS/DB/ -
4.25%/4.5% - - Ba3/BB/BB+ GS/MS/WFS
- -
105.375% (+/- 1/8) - Ba3/BB- Truist/BofA/Key/WFS -
- Caa2/CCC+
103.5%/104% - - B2 BofA -
- B2/B+
96%/97%. 97% - - B3/B JPM/TD/Citi/CS/Key/Miz/Southcoast -
3% area - - B3/B-
2.75% area - - Ba3/B+ DB/Citi/GS/Barc/JPM/MS/RBC -
2.375% area - - B1/BB-
3%/3.25% - - B3/B- DB/Citi/GS/Barc/JPM/MS/RBC -
- B1/B DB/Citi/GS/Barc/JPM/MS/RBC -
- B1/B JPM/Barc/BofA/Citi/GS/CS/WFS/ -
HSBC/Miz/Truist
- NR/BB-/BB-
5.75%/6% - Jeff -
104% area - NKr750m -
- B1/B RBC/BofA/CS/Barc/BMO/Truist/ -
UBS/FITB/Stifel/Apollo/KKR
5%/5.25% - JPM/CS/BofA/GS/UBS/Barc/KKR/ -
MS/AMHERST
7.25%/7.50% - Citi/Jeff/MUFG/RBC/Key/Miz/JPM -
5%/5.25% -
6% area - GS/BofA/WFS -
DB/BofA/GS/JPM/KKR/MQB/Miz/ -
MS/Nomura/RBC/USB/WFS/Jeff
5.25%/5.5% - CS/Barc/RBC -
3%/3.25%, mid 3%s - JPM/DB/Barc/Citi/Miz/WFS/TD -
4.625%/4.75% - GS/MS/Citi/JPM/CS/KKR/RBC/ -
Barc/CA-CIB
3.5%/3.75%, - JPM/BofA/DB/GS/MS/Nomura/ -
Barc/BNPP/Caixa/Citi/CA-CIB/CS/ -
3.25%/3.5%, 3.25% Nordea/Santander
5.5%/5.75%, - JPM/BofA/DB/GS/MS/Nomura/
Barc/BNPP/Caixa/Citi/CA-CIB/CS/
5.25%/5.5%, 5.25% Nordea/Santander
5.5%/5.75%, - Citi/DB/Barc/CS/HSBC/JPM -
5.25%/5.5%
3mN+575/+600, - DNB/Nordea/SEB -
3mN+575
S+575/+600, S+575 - JPM/BofA/DB/GS/MS/Nomura/ -
Barc/BNPP/Caixa/Citi/CA-CIB/CS/
Nordea/Santander
International Financing Review January 16 2021 53
GLOBAL DEBT: SOVEREIGN FOREIGN CURRENCY LONG-TERM RATINGS (15/1/2021)
Sovereign Moody’s S&P Fitch Sovereign Moody’s S&P Fitch
12 34 56 12 34 56
Abu Dhabi Aa2 – AA AA+ AA AA+ Laos Caa2 n Caa1 – – CCC B–
Albania B1 Ba2 B+ BB – – Latvia A3 Aaa A AAA A– AAA
Andorra – – BBB AAA BBB+ A+ Lebanon C Ca D CC RD CCC
Angola Caa1 B3 B– n B– CCC B Lesotho – – – – Bn B+
Argentina Ca Caa1 CCC+ CCC+ CCC B– Liechtenstein – Aaa AAA AAA – –
Armenia Ba3 Ba1 – – B+ BB– Lithuania A3 p Aaa A AAA A AAA
Aruba – – BBB+ n BBB+ BBB– n BB+ Luxembourg Aaa Aaa AAA AAA AAA AAA
Australia Aaa Aaa AAA AAA AAA n AAA Macau Aa3 Aa2 – – AA n AAA
Austria Aa1 Aaa AA+ AAA AA+ AAA Macedonia (FYR) – – BB– BB BB+ n BBB–
Azerbaijan Ba2 Ba2 BB+ BB+ BB+ n BB+ Malaysia A3 A1 A– n A+ BBB+ A
Bahamas Ba2 n Baa1 BB+n BB – – Maldives B3 B1 – – CCC B–
Bahrain B2 Ba3 B+ p BB– B+ BB+ Mali Caa1 n B1 – – – –
Bangladesh Ba3 Ba2 BB– BB– BB– BB– Malta A2 Aaa A– p AAA A+ AAA
Barbados Caa1 B2 B– B– – – Mauritius Baa1 n A2 – – – –
Belarus B3 B3 Bn B Bn B Mexico Baa1 n A2 BBB+ n A+ BBB– BBB+
Belgium Aa3 Aaa AA AAA AA– n AAA Moldova B3 B2 – – – –
Belize Caa3 n Caa1 CC + CCC – – Mongolia B3 n B1 B B+ B B+
Bermuda A2 Aa3 A+ AA+ – – Montenegro B1 p Ba1 B+ n AAA – –
Montserrat – – BBB– BBB– – –
Bolivia B2 B1 B+ B+ B B Morocco Ba1 Baa2 BBB– n BBB+ BB+ BB+
Bosnia Herzegovina B3 B3 B BB– – – Mozambique Caa2 Caa1 CCC+ CCC+ CCC B–
Botswana A2 n Aa3 BBB+n A – – Namibia Ba2 n Baa3 – – BB n BB+
Brazil Ba2 Ba1 BB– BB+ BB– n BB Netherlands Aaa Aaa AAA AAA AAA AAA
Bulgaria Baa1 A1 BBB A BBB A– New Zealand Aaa Aaa AA p AAA AA AAA
Cambodia B2 B1 – – – – Nicaragua B3 B2 B– B– B– n B–
Cameroon B2 Ba2 Bn BBB– Bn B+ Nigeria B2 n B1 B B+ B B
Canada Aaa Aaa AAA AAA AA+ AAA Norway Aaa Aaa AAA AAA AAA AAA
Cape Verde – – B BB– B– B Oman Ba3 n Baa1 B+ BB– BB– n B+
Cayman Islands Aa3 Aa2 – – – – Pakistan B3 B2 B– B– B– B–
Chile A1 n Aa2 A+ AA A– A+ Panama Baa1 n A2 BBB AAA BBB A
China A1 Aa3 A+ A+ A+ A+ Papua New Guinea B2 B1 B– B– – –
Colombia Baa2 n A3 BBB– BBB+ BBB– n BBB Paraguay Ba1 Baa3 BB BB+ BB+ BB+
Congo (DR) Caa1 B2 CCC+ CCC+ – – Peru A3 A1 BBB+ A BBB+ n A–
Congo (Rep) Caa2 B2 CCC+ BBB– CCC B+ Philippines Baa2 A3 BBB+ A– BBB BBB+
Cook Islands – – B+ AAA – – Poland A2 Aa3 A– A A– AA–
Costa Rica B2 n Ba3 B– n BB– Bn B+ Portugal Baa3 p Aa3 BBB AAA BBB AA
Cote d’Ivoire Ba3 Baa3 – – B+ p BB– Qatar Aa3 Aa3 AA– AA AA– AA
Croatia Ba1 Baa1 BBB BBB+ BBB– p BBB+ Ras al–Khaimah A AA+ A AA+
Cuba Caa2 Caa2 – – – – Romania Baa3 n A3 BBB– A– BBB– n BBB+
Curacao – – BBB–n BBB– – – Russia Baa3 Baa2 BBB– BBB BBB BBB
Cyprus Ba2 p A2 BBB– AAA BBB– A Rwanda B2 n B1 B+ n B B+ B+
Czech Rep Aa3 Aa1 AA– AA+ AA– AAA St Vincent & Gren B3 Ba3 – – – –
Denmark Aaa Aaa AAA AAA AAA AAA San Marino – – – – BBB– n BBB+
Dominican Rep Ba3 Ba1 BB– n BB+ BB– n BB– Saudi Arabia A1 n A1 A– A An A+
Ecuador Caa1 Caa2 B– B– B– B– Senegal Ba3 Baa1 B+ BBB– – –
Egypt B2 B1 B B B+ B+ Serbia Ba3 p Ba1 BB+ BBB– BB+ BBB–
El Salvador B3 B1 B– AAA B– n B Seychelles – – – – B BB
Estonia A1 Aaa AA– AAA AA– AAA Singapore Aaa Aaa AAA AAA AAA AAA
Eswatini B3 B1 – – – – Slovakia A2 Aaa A+ AAA An AAA
Ethiopia B2 B2 B B Bn B Slovenia A3 Aaa AA– AAA A AAA
Fiji Ba3 n Ba3 BB– BB– – – Solomon Islands B3 B2 – – – –
Finland Aa1 Aaa AA+ AAA AA+ p AAA South Africa Ba2 A3 BB– BB+ BB– n BB
France Aa2 p Aaa AA AAA AA n AAA South Korea Aa2 Aa1 AA AAA AA– AA+
Gabon Caa1 B1 – – CCC B– Spain Baa1 Aa1 An AAA A– AAA
Georgia Ba2 Baa3 BB BBB– BB n BBB– Sri Lanka Caa1 Ba3 CCC+ CCC+ CCC + CCC+
Germany Aaa Aaa AAA AAA AAA AAA Suriname Caa3 n Ba3 SD CCC C CCC
Ghana B3 n B1 B– B B B Sweden Aaa Aaa AAA AAA AAA AAA
Greece Ba3 A3 BB– AAA BB BBB+ Switzerland Aaa Aaa AAA AAA AAA AAA
Guatemala Ba1 n Baa3 BB– BB+ BB– BB Tanzania B2 Ba3 – – – –
Honduras B1 Ba2 BB– BB – – Taiwan Aa3 Aa2 AA– AA+ AA– AA+
Hong Kong Aa2 n Aaa AA+ AAA AA– AAA Thailand Baa1 A2 BBB+ A BBB+ A–
Hungary Baa3 p Baa1 BBB A– BBB A Trinidad & Tobago Ba1 n Baa3 BBB BBB+ – –
Iceland A2 A1 A A A– A+ Tunisia B2 n Ba3 – – Bn B+
India Baa3 n Baa2 BBB– BBB+ BBB– n BBB– Turkey B2 n B2 B+ BB– BB– n BB–
Indonesia Baa2 A3 BBB n BBB+ BBB BBB Turks & Caicos – – BBB+ AAA – –
Iraq Caa1 B3 B– AAA B– n B– Uganda B2 Ba3 BB A– B+ n B+
Ireland A2 Aaa AA– AAA A+ AAA Ukraine B3 B2 B B B B
Israel A1 Aa3 AA– AA+ A+ AA UAE Aa2 Aa2 – – AA– AA+
Italy Baa3 Aa3 BBB AAA BBB– AA– UK Aa3 Aaa AA + AAA AA– AAA
Jamaica B2 Ba3 B+ n BB– B+ BB– USA Aaa Aaa AA+ AAA AAA n AAA
Japan A1 p Aaa A+ AA+ An AAA Uruguay Baa2 A2 BBB A– BBB– n BBB+
Jordan B1 Ba1 B+ BB BB– n BB Uzbekistan B1 B1 BB– n BB– BB BB
Kazakhstan Baa3 p Baa2 BBB– BBB BBB BBB+ Venezuela C Ca SD CC – –
Kenya B2 n Ba3 B+ n BB– B+ n B+ Vietnam Ba3 n Ba1 BB BB BB BB
Kuwait A1 Aa3 AA– n AA AA AA+ Zambia Ca Caa3 SD CCC+ RD B–
Kyrgyzstan B2 n Ba3 – – – –
1 Moody’s Government Bonds 5 Fitch Government Bonds n Negative outlook/on watch * Taken off positive watch/ c Improvement in ratings,
2 Moody’s Country Ceilings 6 Fitch Country Ceilings for downgrade outlook outlook or watch status
3 S&P Government Bonds p Positive outlook/on watch
4 S&P Transfer and N New rating ** Taken off negative watch/ d Deterioration in ratings,
for upgrade W Rating withdrawn outlook
Convertibility Assessments SD Selective default outlook or watch status
54 International Financing Review January 16 2021
EMERGING MARKETS
China 56 Indonesia 62 South Korea 63 Czech Republic 63 Russia 64 Turkey 66
UAE 66 Brazil 67 Colombia 67 Dominican Republic 67 Mexico 67
FRONT STORY ASIA
Asian credit faces US headwinds
Rising Treasury yields and sanctions fears weigh on appetite for Chinese bonds in particular
Non-China issuers fare better as SK Hynix and Singapore Airlines both go well
Asian bond issuers are facing headwinds In November, the US government months. Asian investors tend to focus
after a record start to the year, with banned US investors from investing in more on overall yields than relative
#HINESEûISSUERSûINûPARTICULARûlNDINGûITû COMPANIESûITûDEEMEDûTOûBEûLINKEDûTOûTHEû spreads, said the syndicate head.
harder to attract offshore investors. Chinese military, and has now made it
clear that this applies to securities h4HEûLASTûWEEKûHASûSTARTEDûTOûSEEûTHEû
After more than US$26bn of G3 deals PURCHASES û/NCEûAûlRMûISûADDEDûTOûTHEûLIST û LONGûENDûOFûRATESûTICKûUP ûANDûITûMAYû
FROMû!SIAûEX
*APANûINûTHEûlRSTûWEEKûOFûTHEû US investors must cease new purchases compel some issuers to go sooner rather
year, investor concerns about US sanctions after 60 days, and have 365 days to unwind THANûLATER vûSAIDûANOTHERûBANKER ûh2ATESû
on Chinese companies and rising Treasury their existing exposure. will still remain at modest levels.”
yields have begun to weigh on sentiment.
That has weighed on credits such as Meanwhile, high-yield issuance slowed
4HEûREGIONûSAWûITSûlRSTûPULLEDûTRADEûOFû China National Chemical Corp, which has as investors continued to digest the
the year as BEIJING CAPITAL GROUP on Monday seen its 2% September 2025 bonds slump PREVIOUSûWEEK SûGLUTûOFû ûDEALS ûTOTALLINGû
withdrew plans for a subordinated to 315bp over Treasuries, having priced at 53 BN ûFROMû#HINA SûPROPERTYûSECTOR û!Tû
perpetual bond, while it still went ahead a spread of 185bp in September. the time of writing, 15 of those bonds were
WITHûAûlVE
YEARûSENIORûTRANCHE trading below reoffer.
In December, the US added China
The Beijing municipal government- .ATIONALû/FFSHOREû/ILû#ORP ûCHIPMAKERû A slump in CHINA FORTUNE LAND
OWNEDûISSUERûHADûBEENûCONlDENTûENOUGHû Semiconductor Manufacturing DEVELOPMENT Sû53ûDOLLARûBONDS ûASûINVESTORSû
TOûNARROWûlNALûGUIDANCEûFORûTHEûPERPETUALû International Corp, China Construction wondered whether shareholder Ping An
non-call 3.5 offering by 15bp to 6.35% Technology and China International Insurance of China would continue to
before it eventually withdrew the tranche, Engineering Consulting to a list of support the highly leveraged developer,
WITHûBOOKRUNNERSûBLAMINGûWEAKûDEMANDû companies it claims are controlled by the has also added to caution around the
and the high cost compared with senior Chinese army and represent a security sector.
bonds. THREAT û)TûADDEDûNINEûMOREûlRMS ûINCLUDINGû
PHONEûMAKERû8IAOMI ûTOûTHEûLISTûONû 4HEûINDUSTRIALûPARKûDEVELOPER Sû
On Tuesday, Triple B rated YUEXIU Thursday and placed further export dollar bonds plunged 30–40 points in
PROPERTYûAXEDûSIXûOFûITSûBOOKRUNNERS û restrictions on CNOOC and others. THEûWEEKûTOû-ONDAY ûBUTûREBOUNDEDûMOREû
including one global coordinator, during than 10 points to around 65 cents on
BOOKBUILDINGûFORûAûDUAL
TRANCHEûDEAL ûANDû RATES AND INDIGESTION the dollar after management held a call
sized a 10-year tranche at just US$150m Asian issuers are also facing other with investors, despite two-notch
amid suggestions that the 18 remaining challenges, from more volatile base rates DOWNGRADESûBYûBOTHû-OODY SûANDû&ITCHû
BOOKRUNNERSûHADûACCOUNTEDûFORûMUCHûOFû TOûTHEûWEAKûPERFORMANCEûOFûRECENTûNEWû LASTûWEEK û
the demand. issues.
h4HEûMARKETûISûAûBITûSOFTERûESPECIALLYûONû
/NûTHEûFACEûOFûIT û#HINESEûBANKSûHAVEû “A lot of sanctioned names sold off, but the property side because of the China
achieved strong outcomes for their US THEûKEYûDRIVERûISûTHEû53û4REASURIES vûSAIDûANû &ORTUNEû,ANDûSAGAûAND ûTOûAûSMALLERûEXTENT û
dollar senior bond issues this year, with investor. a lot of supply, which is weighing on the
AGRICULTURAL BANK OF CHINA printing around OVERALLûRISKûSENTIMENTûINûTHEûHIGH
YIELDû
5bp inside its curve and SHANGHAI PUDONG The 10-year Treasury yield has risen space in Asia,” said another investor.
DEVELOPMENT BANK coming 15bp inside last almost 20bp since the beginning of 2021
WEEK on expectations that incoming President Non-China issuers fared better, with
*OEû"IDENûWILLûENACTûAûSTIMULUSûPACKAGEûTOû +OREANûCHIPMAKERûSK HYNIX drawing almost
Those deals, though, were driven by the help the economy recover from the lVEûTIMESûSUBSCRIPTIONûFORûAû53 BNû
orders from the lead managers, which is coronavirus pandemic, after the Georgia three-tranche offering and SINGAPORE
NOTûUNUSUALûBECAUSEûBANKSûAREûNATURALû runoff elections on January 5 put the AIRLINES printing a debut US dollar trade
buyers for high-grade three-year paper in Democratic party in control of both the inside its implied Singapore dollar curve.
PARTICULARûANDû#HINESEûBANKSûHAVEûSTRONGû 3ENATEûANDûTHEû(OUSE û4HISûWASûCONlRMEDû The two deals tightened 15bp–20bp and
relationships with their peers. ATûTHEûENDûOFûLASTûWEEKûWHENû"IDENû 40bp, respectively, in early trading.
PROPOSEDûAû53 TRNûSTIMULUSûPACKAGEû
!ûBOOKRUNNERûONûONEûOFûTHEûBANKûDEALSû that would include direct US$1,400 The Asia DCM syndicate head put part of
said that a handful of fund managers payments to individuals. THEûSHAKYûSENTIMENTûEARLYûINûTHEûWEEKû
STAYEDûINûATûlNALûGUIDANCE ûBUTûTHATûTHEû down to soft secondary performance by
deal went mainly to the leads. 4HATûCOULDûMAKEûSOMEûINVESTORSû some earlier deals.
HESITANTûTOûPICKûUPûLONG
DATEDûBONDSûNOWû
h4HEûWEAKNESSûTHISûWEEKûSEEMSûTOûBEû IFûTHEYûTHINKûYIELDSûWILLûBEûHIGHERûINûAûFEWû “Asia is such a momentum-driven
Asia-centric,” said an Asia DCM syndicate MARKETûTHATûIFûYESTERDAY SûDEALûDIDN TûDOû
head. “Sanction fears are weighing on WELLûITûAFFECTSûTODAY SûDEAL vûHEûSAID
China.” Jihye Hwang, Daniel Stanton
International Financing Review January 16 2021 55
ASIA-PACIFIC $EVELOPMENTû"ANKû(ONGû+ONGûBRANCHûANDû priced at 99.869 to yield 2.715% or Treasuries
3-"#û.IKKOûWEREûNOûLONGERûLISTEDûWHENûTHEû plus 155bp. The respective initial price
CHINA deal priced. guidance was plus 150bp area and 185bp
area.
YUEXIU SHAKES UP SYNDICATE Meanwhile BOC International, CICC and
Haitong International had been demoted to 4HEûlVE
YEARûNOTEûPAIDûAûNEGATIVEûNEWû
YUEXIU PROPERTY priced a US$750m dual- JOINTûBOOKRUNNERSûFROMûGLOBALûCOORDINATORS û issue concession of 12bp, but the 10-year
TRANCHEûBONDûOFFERINGûONûAûSTRONGûBOOK ûBUTû WHILEû"ANKûOFû#OMMUNICATIONSûSTEPPEDûUPû BONDûPRICEDûmATûTOûFAIRûVALUEûAFTERû
AûSHAKE
UPûOFûTHEûBOOKRUNNERSûMIDWAYû TOû*'#ûFROMûBOOKRUNNER REFERENCINGû(UANENG Sû SûANDû Sû
through the deal suggested it was not plain seen at G spreads of 114bp and 146bp,
sailing. !SIAûTOOKû ûOFûTHEûBONDSûANDû%-%!û û respectively, according to a lead.
3UPRANATIONALûINSTITUTIONS ûBANKSûANDû
The Chinese property developer on lNANCIALûINSTITUTIONSûBOOKEDû ûASSETû 4HEûBANKERûSAIDûTHEûDEALûWASûHELPEDûBYû
4UESDAYûSOLDûAû53 Mû ûlVE
YEARû managers and fund managers 39%, and THEûISSUER SûSTRONGûCREDITûASûONEûOFûTHEû
tranche at 99.884 to yield 2.825%, or INSURERS ûPRIVATEûBANKSûANDûOTHERSû central government-owned power
Treasuries plus 230bp, while a US$150m producers in China, although investors
3.8% 10-year tranche priced at 99.819 to 4HEûSENIORûUNSECUREDû2EGû3ûNOTESûHAVEû raised concerns over the US adding the SOE
yield 3.822%, or Treasuries plus 265bp. EXPECTEDûRATINGSûOFû"AA """nû -OODY S TOûAûBLACKLISTûOFûALLEGEDû#HINESEûMILITARYû
&ITCH ûONûPARûWITHûTHEûGUARANTOR companies.
4HISûMARKEDûAûSHARPûTIGHTENINGûFROMû
respective initial guidance of the 275bp and Wholly owned subsidiary Westwood The bonds will be issued by China
305bp areas. Group Holdings is the issuer and the Hong (UANENGû'ROUPû (ONGû+ONG û4REASURYû
Kong-listed parent company is the Management Holding and guaranteed by
&INALûORDERSûEXCEEDEDû53 BNûFROMû GUARANTOR û'UANGZHOUû9UEû8IUû(OLDINGSûANDû the state-owned parent company.
MOREûTHANû ûACCOUNTS ûINCLUDINGûAûCHUNKYû Guangzhou Metro Group, which are both
US$2.347bn from the leads. wholly owned by Guangzhou municipal The senior unsecured notes have expected
GOVERNMENT ûOWNû ûANDû ûSTAKESûINû RATINGSûOFû! !û -OODY S &ITCH
The 10-year tranche was originally going Yuexiu Property, respectively.
TOûBEûSIZEDûATû53 M ûBUTûSHRANKûTOû Bank of China, Citigroup and Agricultural
53 MûANDûlNALLYû53 MûASûPRICINGû Proceeds will be used for for debt Bank of China Hong Kong branch were global
was driven incrementally tighter, according repayment. coordinators.
to a source close to the deal.
DBS Bank, CLSA, Bank of China (Hong Kong), SPDB SINGAPORE BANKS RARITY APPEAL
h53 MûFORûAû
YEARûISûNOTûAûBOND ûIT Sû Guotai Junan International, CMBC Capital, Bank of
AûCLUBûDEAL vûSAIDûAû$#-ûBANKERûAWAYûFROMû Communications, Yue Xiu Securities and Chong SHANGHAI PUDONG DEVELOPMENT BANK SINGAPORE
the trade. The 10-year was bid 9bp wider in Hing Bank were global coordinators in the end.
secondary trading on Wednesday morning, BRANCH raised US$300m from a three-year
INûAûGENERALLYûSOFTûMARKET 4HEYûWEREûALSOûBOOKRUNNERSûWITHûBOC 2EGû3ûBONDûTHATûPRICEDûINSIDEûFAIRûVALUEûONû
International, Haitong International, CCB THEûBACKûOFûITSûRARITYûAPPEAL
4HEûDEALûHADû ûBOOKRUNNERSûWHENûlNALû International, CICC, China Citic Bank
guidance was announced shortly before International, OCBC Bank, China Everbright Bank The 1% senior unsecured notes were
7pm Hong Kong time, but had jettisoned Hong Kong branch, CMB Wing Lung Bank, Bank of priced at 99.835 to yield 1.056% or Treasuries
China Securities International by the time East Asia and CEB International. plus 84bp, inside initial price guidance of
the deal launched at 1am that night. the plus 120bp area.
CHINA HUANENG PRINTS DUAL-
&IVEûMOREûBOOKRUNNERSûHADûBEENûDROPPEDû TRANCHER A lead estimated the deal came 15bp
by the time of pricing at around 2.30am. INSIDEûFAIRûVALUEûASûITûWASûTHEûlRSTûJOINTûSTOCKû
Joint global coordinator CMB International, CHINA HUANENG GROUP has raised US$1bn from COMMERCIALûBANKûFROMû#HINAûTHISûYEARûTOû
ANDûJOINTûBOOKRUNNERSû!"#û)NTERNATIONAL û AûDUAL
TRANCHEû2EGû3ûBONDûOFFERINGûTHATûWASû issue US dollar bonds.
ICBC International, Shanghai Pudong covered almost three times.
h!LLûOFûTHEû#HINESEûBANKûDOLLARûBONDSûTHISû
!û53 Mû ûlVE
YEARûPORTIONûPRICEDû year have priced inside fair value, but this
at 99.99 to yield 1.602% or Treasuries plus WASûTHEûFURTHESTûINSIDE vûTHEûBANKERûSAID
108bp, while a US$500m 2.7% 10-year bond
The new bonds with an expected rating of
ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS "AA ûBYû-OODY SûWEREûTRADINGûAROUNDû
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE reoffer on Wednesday, according to
Tradeweb.
Asia-Pacific No of Total Share Managing No of Total Share
issues US$(m) (%) bank or group issues US$(m) (%) Orders exceeded US$1.6bn, including
Managing 53 BNûFROMûTHEûLEADS ûWHENûlNALûPRICEû
bank or group 1 HSBC 27 3,661.11 6.9 guidance was announced at Treasuries plus
2 JP Morgan 28 3,437.81 6.4 84bp.
1 Citigroup 16 2,564.24 6.9 3 Citigroup 22 3,301.99 6.2
2 JP Morgan 21 2,410.46 6.5 4 BNP Paribas 22 2,809.99 5.3 The bond will be drawn from Shanghai
3 HSBC 24 2,372.60 6.4 5 Deutsche Bank 19 2,720.91 5.1 0UDONGû$EVELOPMENTû"ANK Sû53 BNû-4.û
4 Standard Chartered 19 2,042.96 5.5 6 Standard Chartered 23 2,545.62 4.8 programme.
5 BNP Paribas 17 1,781.69 4.8 7 Morgan Stanley 16 2,163.71 4.1
6 Deutsche Bank 17 1,556.09 4.2 8 Bank of America 16 1,808.81 3.4 Shanghai Pudong Development Bank Singapore
9 Goldman Sachs 10 1,727.98 3.2 branch, Agricultural Bank of China Singapore
7 DBS Group 12 1,512.60 4.1 10 Credit Agricole 13 1,714.13 3.2 branch, ANZ, Bank of China, Bank of
67 53,341.04 Communications, CCB Singapore, Credit Agricole
8 Bank of America 13 1,412.90 3.8 Total CIB, CTBC Bank, DBS Bank and ICBC Singapore
were the global coordinators
9 UBS 17 1,228.55 3.3
Headquartered in Shanghai, SPDB, rated
10 Morgan Stanley 13 1,206.69 3.2 Baa2/BBB/BBB, had assets totalling
2MB TRNû 53 TRN ûASûOFûTHEûENDûOFû
Total 50 37,174.12 September last year.
Excluding equity-related debt. SDC code: L4 Excluding equity-related debt. SDC code: L1
Source: Refinitiv Source: Refinitiv
56 International Financing Review January 16 2021
EMERGING MARKETS ASIA-PACIFIC
SHANDONG SANXING OPTS FOR PLAN B KDB, Hynix lead way for
South Korea
SHANDONG SANXING GROUP has called off an
exchange offer for its US dollar bonds SOUTH KOREA First deals of 2021 set records but total issuance seen remaining stable
maturing later this month and will instead
LOOKûTOûRESTRUCTUREûTHEMûUNDERûAûSCHEMEûOFû KOREA DEVELOPMENT BANK kicked off international rated Single A or above – so the deal offered a
arrangement in the British Virgin Islands. bond issuance for the new year, setting tight new yield pick-up to global investors,” said a banker
benchmarks for both conventional and green on the deal.
4HEû#HINESEûCORNûOILûMAKERûHADûEXTENDEDûTHEû paper from South Korea.
deadline on an exchange offer for US$200m A US$500m three-year piece was priced at
7.99% bonds due January 23 2021 three times, The policy bank’s US$1.5bn three-tranche Treasuries plus 85bp, a US$1bn five-year tranche
from an original deadline of December 17, and Global bond issue on Monday was followed on at plus 105bp, and US$1bn of 10-year green notes
WARNEDûTHATûITûWOULDûPROCEEDûWITHûAûWORKOUTû Wednesday by corporate borrower SK HYNIX, at plus 140bp. The respective initial guidance was
under a scheme of arrangement if participation which printed a US$2.5bn 144A/Reg S bond plus 115bp area, 140bp area, and 180bp area.
fell short of its target. offering, the largest ever from South Korea’s
corporate sector. The lion’s share of each tranche was allocated
Shandong Sanxing earlier said the to US investors, who took over 40% of the 2024s
exchange would not go ahead unless at least Both issuers offered a green tranche, while and more than half of the 2026s and 2031s.
US$180m, or 90%, of the existing bonds were three other South Korean borrowers announced
submitted, but did not disclose how many mandates for proposed green and social bond The new senior unsecured notes have
bonds were submitted by the deadline. deals last week. expected ratings of Baa2/BBB– (Moody’s/S&P),
in line with the issuer.
Bondholders consenting to the exchange KDB’s SEC-registered bond issue achieved its
signed a restructuring support agreement, lowest spread over Treasuries since it first visited Leads estimated the three-year notes were
which will now apply to the scheme of the international market in 1990. priced flat to fair value, while the five-year and 10-
arrangement. That mechanism was year bonds paid negative new issue concessions of
intended to discourage bondholders who A US$700m three-year and five-month green 5bp after referencing bonds from South Korean IG
believed the offer would succeed without bond tranche was priced at Treasuries plus 25bp, companies such as GS Caltex, Posco and LG Chem.
them, allowing their bonds to be redeemed a US$500m 5.5-year piece at plus 35bp, and a
at par at maturity, from ignoring the US$300m 10-year tranche at plus 52.5bp. The The whole deal was covered almost five
exchange offer. respective initial price guidance was plus 55bp times, receiving combined final orders of over
area, 65bp area and 75bp area. US$12.35bn, and the bonds traded 15bp–20bp
The company had offered to exchange tighter on Thursday morning.
each US$1,000 in principal amount for Leads estimated the bonds were also priced inside
US$150 in cash and US$850 in new two-year fair value by 3bp–5bp, referencing recent issues from FIRST-QUARTER SUPPLY
bonds with a coupon of 9.75% and credit KDB as well as Export-Import Bank of Korea. South Korean issuers lining up offshore bonds
enhancement in the form of a guarantee in the first quarter include a mix of state-linked
from an onshore subsidiary. The multi-tranche deal was covered more firms, financials and corporate issuers, including
than three times, receiving combined final orders KOREA SOUTHERN POWER, WOORI BANK, KEB HANA
Holders who agree to the exchange and of about US$4.6bn. The 10-year portion received BANK and SK INNOVATION as well as EXPORT-
sign a restructuring support agreement were the smallest final orders but was still subscribed IMPORT BANK OF KOREA. US-incorporated HYUNDAI
to receive an additional US$10 in cash if the 3.7 times. CAPITAL AMERICA also priced a US$2.7bn Yankee
offer was successful. Now that the exchange offering in three tranches before KDB.
OFFERûHASûBEENûCALLEDûOFF ûTHEû23!ûWILLûAPPLYû “The order book for the 10-year note was
to the restructuring scheme and they will relatively weaker compared to the June 2024s This compares with last year when four South
receive a cash payment for their support. and July 2026s as the recent rise in 10-year Korean issuers printed offshore bonds in January,
Treasuries has lessened demand from buy-and- three more in early February and none in March.
On terminating the exchange offer, hold investors,” said a KDB funding official. The coronavirus outbreak had put deals on hold
Shandong Sanxing has increased the cash in late March, but offshore issues from South
INCENTIVEûFORûSIGNINGûTHEû23!ûTOû ûOFûTHEû The unconventional tenor of three years and Korea are generally rare in late February to early
principal value of their notes, up from 1% five months came as the policy bank tried to March as many borrowers need to update their
originally. spread out its maturity profile. financial statements to meet the 135-day rule
before accessing the 144A market.
!ûSCHEMEûOFûARRANGEMENTûISûLIKELYûTOûTAKEû KDB’s new senior unsecured notes have
two or three months longer than an expected ratings of Aa2/AA/AA–, in line with “The sales volume in the first two months of
exchange offer and the fees involved for the the issuer. They were trading inside reoffer by this year doesn’t feel like it’s going to be unusually
company are higher, but the bonds are 2bp–4bp in the secondary market on their first large, but it would be probably busier than last
expected to be restructured on broadly trading day on Tuesday. year when some issuers couldn’t print offshore
similar terms to the exchange offer. bonds after failing to receive the finance ministry’s
LARGEST CORPORATE ISSUE approval,” said a DCM banker in South Korea.
Admiralty HarbourûISûlNANCIALûADVISERûANDû SK Hynix’s Yankee is the biggest corporate
acted as dealer manager for the exchange offer. offshore bond issue from South Korea, according “The main drivers of [South] Korean offshore
to the leads, highlighting confidence in the bond sales are refinancings and supply from
The existing bonds were issued in 2018 country’s technology sector. financials but bond sales from both sides are
through wholly owned subsidiary Knight expected to be similar to last year,” said another
Castle Investments. S&P withdrew its B “The company is a leading global banker. “For now, I don’t see any corporate
rating on the company in September. manufacturer in the memory chip industry, which issuers like SK Hynix preparing for a jumbo deal.”
has actually benefited from the Covid-19 impact, Jihye Hwang
GUORUI WORKS OUT REFINANCING PLAN and there aren’t many Triple B rated names in
the [South] Korea IG space – most of them are
GUORUI PROPERTIES on Tuesday launched an
exchange offer for its US$455m 13.5% senior
NOTESûDUEû&EBRUARYû ûANDûAûCONSENTû
solicitation, plus a concurrent new money issue.
International Financing Review January 16 2021 57
GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 15/1/2021
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
100
ASIA Olam International hybrid S$250m Perpetual (Jul 2026) 5.375 100 SOR+480.7 5.375
Jan 11 2021 0.635 99.81
1.25
Jan 12 2021 Housing and Development S$800m Jan 19 2026 99.86 about 10bp+SOR -
Jan 11 2021 Board US$300m Jan 19 2026
100 T+80 1.29
ABC NY branch green
Jan 11 2021 ABC NY branch US$650m Jan 19 2024 0.85 T+68 0.899
Jan 11 2021 Beijing Capital Group US$400m Jan 19 2026 4.65 - 4.65
Jan 11 2021 DaFa Properties US$180m Jan 18 2022 9.95 98.01 - 12.13
Jan 11 2021 Fujian Zhanglong 3.45 100 - 3.451
Jan 11 2021 KDB green US$400m Dec 19 2023 0.4 99.76 T+25 0.472
Jan 11 2021 KDB 0.8 99.76 T+35 0.845
Jan 11 2021 KDB US$700m Jun 19 2024 1.625 99.72 T+52.5 1.656
Jan 11 2021 SPDB SG branch 1 99.83 T+84 1.056
US$500m Jul 19 2026
US$300m Jan 19 2031
US$300m Jan 19 2024
Jan 12 2021 Changzhou Eastern New City US$300m Jan 19 2024 3 99.72 - 3.1
Jan 12 2021 Construction Jan 20 2031 3 98.96 T+195 3.122
China Cinda HK US$800m
Jan 12 2021 China Cinda HK US$400m Jan 20 2028 2.5 98.64 T+185 2.714
Jan 12 2021 China Cinda HK US$300m Jan 20 2026 1.875 99.77 T+140 1.923
Jan 12 2021 China Cinda HK US$500m Jan 20 2024 1.25 99.62 T+115 1.38
Jan 12 2021 China Huaneng Group US$500m Jan 20 2031 2.7 99.87 T+155bp 2.715
Jan 12 2021 China Huaneng Group US$500m Jan 20 2026 1.6 99.99 T+108bp 1.602
58 International Financing Review January 16 2021
EMERGING MARKETS ASIA-PACIFIC
Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
- -
5.5% area, 5.375% - - -/-/AAA CS/DBS/HSBC/StCh -
(the #) - US$900m, 45acs A1
US$1.3bn, 41acs A1 BoC/ICBC Sing/OCBC -
- - -/-/BBB
US$1bn -
T+120 area, T+80 - - -/-/BBB- ABCHK/BofA/Citi/CA-CIB/JPM/ Asia 71%, EMEA 29%. Bks 57%, SSA/
(the `#) US$1.9bn, 68acs Aa2/AA/AA- Miz/BOCHK/BoCom/Chiyu/CLSA/ CB/PF 31%, AM/FM/Other 12%.
US$1.6bn, 85acs Aa2/AA/AA- WingLung/DBS/HSBC/StCh/WFS
US$1.1bn, 75acs Aa2/AA/AA-
T+110 area, T+68 - - Baa2 ABCHK/BofA/Citi/CA-CIB/JPM/ Asia 97%, EMEA 3%. Bks 78%, AM/FM
(the #) Miz/BOCHK/BoCom/Chiyu/CLSA/ 11%, CB/SWF 10%, PB 1%.
- -/-/BBB- WingLung/DBS/HSBC/StCh/WFS
US$4bn, 110acs -/A-/A
5.125% area - HSBC/CSI/CNCBI/CICC/Haitong -
US$3bn, 65acs -/A-/A Intl/Guotai Junan/CMBI/CMSHK/
Citi/BNPP/Silk Road/WingLung/
US$4.5bn, 100acs -/A-/A Everbright HK/BoCom/CMBC Cap
12.4% area, 12.125% - US$2.7bn, 47acs -/A-/A CS/Guotai Junan/BNPP/MS/UBS/ ASIA 100% | AM/FM/HF 82%, PB 14%,
Barc/BOCI/CMBI/Haitong Intl/ BANK/FI 4%
US$1bn, 47acs A2/-/A Heungkong/Shenwan Hongyuan
US$1.9bn, 50acs A2/-/A
3.7% area - Guotai Junan/Industrial/BOCOMI/ -
CEB Intl/BoC/CICC/CSI/CMBI/
Haitong Intl/TF
T3+55 area - BNPP/BofA/JPM/KDB/SG/StCh/UBS ASIA 43% EMEA 27% US 30%/AM/FM
KEXIM Asia 25% CB/SWF 59% BANKS 13% INS/
CORP 2% BR 1%
T5+65 area - BNPP/BofA/JPM/KDB/SG/StCh/UBS ASIA 51% EMEA 39% US 10%/ AM/FM
KEXIM Asia 26% CB/SWF 42% BANKS 24% INS/
CORP 2% BR 6%
T+75 area - BNPP/BofA/JPM/KDB/SG/StCh/UBS ASIA 34% EMEA 31% US 35%/AM/FM
KEXIM Asia 40% CB/SWF 14% BANKS 23% INS/
CORP 18% BR 5%
T+120 area, T+84 - ABChina/SPDBI/ANZ/BoC/BoCom/ -
(the #) CCBSing/CA-CIB/CTBC/DBS/ICBC
Sing/UOB/Citi/CICC/Haitong Intl/
MUFG/JPM/StCh/OCBC/CMZ
Shanghai Pudong Development
Bank HK branch/Shanghai Pudong
Development Bank SG branch
3.7% area - CSI/ICBCI/BOSC/Industrial/ -
T+230 area 0 Everbright HK/BOCOMI/HungSing/
Huarong Intl/CEB Intl/CNCB HK
ABCHK/ANZ/BoC/BoCom/BNPP/ Asia 95% EMEA 5%. Bks/FI 54% FM/AM
BofA/CCBI/CNCBI/CCBA/CMBCHK/ 37% INS 8% PB 1%.
Cinda Intl/CMBI/DBS/Haitong Intl/
Miz/Nanyang/StCh/Galaxy Sec/
CICC/CMSHK/CSI/CLSA/WingLung/
CS/DB/Dongxing/Huarong Intl/
ICBCA/MS/SPDB
T+215 area 0 ABCHK/ANZ/BoC/BoCom/BNPP/ Asia 93% EMEA 7%. Bks/ FI 54% FM/
BofA/CCBI/CNCBI/CCBA/CMBCHK/ AM 27% INS 6% PB 13%.
Cinda Intl/CMBI/DBS/Haitong Intl/
Miz/Nanyang/StCh/Galaxy Sec/
CICC/CMSHK/CSI/CLSA/WingLung/
CS/DB/Dongxing/Huarong Intl/
ICBCA/MS/SPDB
T+175 area -5 ABCHK/ANZ/BoC/BoCom/BNPP/ ASIA 96% EMEA 4%.Bks/FI 76% FM/AM
BofA/CCBI/CNCBI/CCBA/CMBCHK/ 18% Ins 5% PB 1%.
Cinda Intl/CMBI/DBS/Haitong Intl/
Miz/Nanyang/StCh/Galaxy Sec/
CICC/CMSHK/CSI/CLSA/WingLung/
CS/DB/Dongxing/Huarong Intl/
ICBCA/MS/SPDB
T+150 area -5 ABCHK/ANZ/BoC/BoCom/BNPP/ Asia 94% EMEA 6%. Bks/FI 77% FM/AM
BofA/CCBI/CNCBI/CCBA/CMBCHK/ 15% Ins 2% PB 6%.
Cinda Intl/CMBI/DBS/Haitong Intl/
Miz/Nanyang/StCh/Galaxy Sec/
CICC/CMSHK/CSI/CLSA/WingLung/
CS/DB/Dongxing/Huarong Intl/
ICBCA/MS/SPDB
T+185 area - BoC/Citi/ABCHK/JPM/ICBCA/Miz/ Asia 99% EMEA 1%/ Banks 51% AM/FM
T+150 area -
Industrial 41% Ins/PF 5% PB 3%
BoC/Citi/ABCHK/JPM/ICBCA/Miz/ ASIA 99% EMEA 1%/ BANKS 63% AM/
Industrial FM 29% SSA/INS/PF 8%
International Financing Review January 16 2021 59
GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 15/1/2021 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
0 99.82 T+265 3.822
Jan 12 2021 Yuexiu Property US$150m Jan 20 2031
Jan 12 2021 Yuexiu Property US$600m Jan 20 2026 2.8 99.88 T+230 2.825
Jan 13 2021 Chengdu Xingcheng US$445m Jan 20 2026 2.9 100 - 2.9
Jan 13 2021 Investment Group 103.3 - 4.918
Jan 13 2021 Melco Resorts Finance US$250m incr Dec 4 2029 (Dec 2024) 5.375 99.57 T+260 3.085
Jan 13 2021 (US$1.15bn) 3 98.99 T+140 2.49
Jan 13 2021 Singapore Airlines 99.86 T+105 1.529
Jan 13 2021 US$500m Jul 20 2026 99.81 T+85 1.066
Jan 13 2021 100 - 2.75
SK Hynix US$1bn Jan 19 2031 2.375
Jan 14 2021 98.89 T+150 1.984
Jan 14 2021 SK Hynix US$1bn Jan 19 2026 1.5 97.11 - 4.7
Jan 14 2021 100 - 12.5
Jan 14 2021 SK Hynix US$500m Jan 19 2024 1 100 - 2.75
Jan 14 2021 Tower Bersama US$300m Jan 20 2026 2.75 99.32 - 13.5
Infrastructure
99.98 T+190 2.379
BOC Aviation US$400m Jan 21 2026 1.75 98.67 - 3.1
Guangxi Investment Group US$100m incr Nov 18 2023 3.6 100 - 4.2
Longjitaihe Property (US$500m) Jan 19 2022 12.5 97.94 - 13.5
US$100m 0 - 3.15
Nanjing Luhe Economic and US$97m Jan 20 2022 2.75
Technological Development US$185m Jan 21 2022 12.75
Corp
Sunkwan Properties
Jan 14 2021 Wheelock and Co US$500m Jan 25 2026 2.375
Jan 14 2021 Zhuhai Huafa Group 2.8
US$150m incr Nov 4 2025
(US$400m) 4.2
12.5
Jan 15 2021 China Aoyuan US$188m Jan 20 2022
Jan 15 2021 Jiayuan International US$300m Jul 21 2023
Jan 15 2021 Shandong Guohui US$240m Jan 21 2026 0
Investment
EMEA First Abu Dhabi Bank Rmb1.5bn Jan 29 2026 3.15 100 - 3.15
Jan 11 2021 Benin €300m Jan 19 2052 6.875 95.462 MS+717/B+732 7.25
Jan 12 2021 Benin €700m Jan 19 2032 4.875 98.08
Jan 12 2021 Dubai Aerospace US$750m Mar 20 2028 3.375 98.71 MS+531/B+559 5.125
Jan 12 2021 Dubai Aerospace US$500m Mar 20 2025 2.625 99.31
Jan 12 2021 CBOM €600m Jan 21 2026 3.1 100 T+275 3.581
Jan 13 2021 Komercni banka covered €500m Jan 20 2026 0.01 101.6
Jan 13 2021 Wizz Air €500m Jan 19 2024 1.35 100 T+230 2.801
Jan 13 2021 BOAD Sustainable €750m Jan 22 2033 2.75 99.07
Jan 14 2021 MS+355.1/B+382.4 3.1
MS+12/B+40.3 -0.315
MS+185.3/B+210.5 1.35
MS+300 2.843
60 International Financing Review January 16 2021
EMERGING MARKETS ASIA-PACIFIC
Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
T+305 area - - Baa3/-/BBB-
DBS/CLSA/BOCHK/Guotai Junan/ USD3.4bn (JLM USD2.347bn (70+ accs,
T+275 area - - Baa3/-/BBB- CMBC Cap/BoCom/YueXiu/ across both tranches. APAC 99%, EMEA
ChongHing/BOCI/Haitong Intl/CCBI/ 1%. Supra/Bank/FI 55% AM/FM 39%
2.9% #3.2% area - - -/-/BBB+ CICC/CNCBI/OCBC/Everbright HK/ INS/PB/Others 6%.
- Ba2/BB WingLung/BEA/CEB Intl
103%/103.25 - US$2.85bn, 150acs - USD3.4bn (JLM USD2.347bn( 70+ accs,
US$5.7bn Baa2/BBB- DBS/CLSA/BOCHK/Guotai Junan/ across both tranches. APAC 99%, EMEA
T+300 area - US$4.4bn Baa2/BBB- CMBC Cap/BoCom/YueXiu/ 1%. Supra/Bank/FI 55% AM/FM 39%
US$2.9bn Baa2/BBB- ChongHing/BOCI/Haitong Intl/CCBI/ INS/PB/Others 6%.
T+180 area, T+140 - - -/-/BBB- CICC/CNCBI/OCBC/Everbright HK/
(the #) - WingLung/BEA/CEB Intl -
- US$800m -/A-/A-
T+140 area, T+105 - - Baa2/-/BBB CICC/WingLung/Guotai Junan/ -
(the #) - - ICBCI/StCh/SPDB ICBC (MACAU)
- - Asia 76%, EMEA 24%. AM/FM 83%, Bks
T+115 area, T+85 DB/MS/BoC/BoC Macau 8%, Ins 4%, PB 5%.
(the #) - - / BOCOMI/ICBC/Miz -
3% area, 2.8% (+/-5 US$1.6bn, 79acs - Citi/BofA/HSBC -
WPIR), 2.75% - -/-/BBB
BNPP/BofA/Citi/CA-CIB/CS/HSBC/ -
T+180 area, - - - JPM
T+150/+155 - - B3/-/B -
BNPP/BofA/Citi/CA-CIB/CS/HSBC/
4.70% - -/-/BBB+ JPM -
- Aa3/-/- BNPP/BofA/Citi/CA-CIB/CS/HSBC/
€1bn None/B+/B JPM
€1.3bn None/B+/B
US$1.9 Baa3/NR/BBB- Barc/BNPP/CA-CIB/DBS/HSBC/
US$1.2bn Baa3/NR/BBB- Miz/OCBC/UOB/ANZ/CIMB/MUFG/
€1.1bn Ba3/BB-/BB SMBC Nikko
€1.5bn -/-/AAA
€2.2bn Baa3/NR/BBB- BNPP/BOCI/DBS/GS/HSBC/MUFG
€2.8bn Baa1/NR/BBB
12.9% area - CNCBI/Guotai Junan/Ping An HK/ -
SPDB BG Securities (HK) -
2.75% - -
Guotai Junan/CMBI/Soochow/
Haitong Intl/GF Sec JQ Securities
CMBC Cap/SPDB/Everbright HK/
Luso/Central/CISI/Zhongtai/Huatai
13.50% - Haitong Intl/CMBI/Guotai Junan/ -
Admiralty Harbour/AMTD/
T+230 area - Central/CNCBI/CRIC/Valuable/ Asia 99%, Europe 1% | Banks 32%, FM
3.5%a - ZhongrongPT/Everbright Sec 47%, Ins 16%, PB/Corp 5%
-
-- BOCHK/BOCI/BNPP/DBS/HSBC/
13.85% area, 13.5% - Miz/MUFG/SMBC Nikko -
-
3.5% area, 3.15% - CISI/ABCI/Everbright HK/CLSA/
CMBCHK/CICC/CMBC Cap/CMBI/ -
CNCB HK/Haitong Intl/Huajin/
HSBC/ICBCI/SPDB
JPM/DB
HSBC/BOCOMI/CCBI/VCL/Guotai
Junan/CMBI/CMBC Cap/Vision/
TF/ZhongrongPT/Seazen/GF Sec
Harmonia Capital International
Central/BoC/Industrial/BOCI/
BoCom/WingLung/HaitongBk/
SPDB/Everbright HK/CMBCHK/
CNCB HK/CMBC Cap/Zhongtai/
BOCHK
3.15% - StChTaiwan -
Citi/SG -
7.5% area, -
7.25%/7.375% (wpir)
Mid/high 5s, 5.375% - Citi/SG -
area
T+310 area, T+275 - GS/MS/CA-CIB/ENBD/FITB/HSBC/ -
JPM/Miz/Natx/Truist -
T+260 area, T+230 - -
GS/MS/CA-CIB/ENBD/FITB/HSBC/ -
3.5% area, 3.25% - JPM/Miz/Natx/Truist
area, 3.1% yld -
- Citi/JPM/SG/Region BC/ENBD/
MS+18 area, MS+14 - RenCap/Sova/Sovcom
(+/-2)
SG/Barc/JPM
1.75% area, 1.5%
area Barc/BNPP/Citi/JPM -
MS+350 area, Natx/HSBC/JPM -
MS+320 area
International Financing Review January 16 2021 61
GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 15/1/2021 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
7 96.96 MS+562.7 7.25
Jan 14 2021 Oman US$1bn Jan 25 2051 100 MS+511.6 6.25
Jan 14 2021 Oman US$1.75bn Jan 25 2031 6.25
Jan 14 2021 Oman US$500m Feb 1 2025 4.875 101.5 MS+404.1 4.45
Jan 14 2021 Yapi Kredi T2 US$500m Jan 22 2031 7.875 100 T+741.5 7.875
LATAM Credito Real US$500m Jan 21 2028 (Jan 2025) 8 100 - 8
Jan 11 2021
FS Agrisolutions Industria de US$50m incr Dec 15 2025 10 106.5 - 8.352
Jan 11 2021
Biocombustiveis (US$550m) Apr 15 2031 3.875 99.67 - 3.95
Jan 12 2021 Jan 15 2028 4.875 99.49 - 5
Jan 12 2021 Itau BBA sustainable T2 US$500m Feb 15 2061 3.875 97.71 T+210 3.99
Jan 12 2021
Nueva Elektra Del Milenio US$500m 102.8 T+166.4 2.8
Jan 12 2021
Republic of Colombia US$1.3bn 100 - 5.3
Jan 13 2021 104.721 - 3.875
Jan 13 2021 Republic of Colombia US$790m (incr Apr 15 2031 3.125 97.427 MS+180 1.676
Jan 14 2021 US$1.79bn)
Dominican Republic 5.3 92.756 MS+245 2.464
Jan 14 2021 Dominican Republic US$1.5bn Jan 21 2041 4.5
Mexico 1.45 100 - 4.7
Jan 14 2021 US$1bn Jan 1 2030 100 - 3.95
Jan 14 2021 99.999 - 5.2
Jan 14 2021 €1bn Oct 25 2033
Mexico €800m Oct 25 2051 2.125
WOM US$450m Jan 22 2028 4.7
Marfrig Global Foods US$1.5bn Jan 29 2031 (Jan 2026) 3.95
Simpar US$625m Jan 26 2031 5.2
&ORûEACHû53 ûINûPRINCIPALûAMOUNT û facilities at the end of November, a The new bonds were trading around
holders will receive US$1,077.041 of the SIGNIlCANTûINCREASEûFROMû2MB BNûATûTHEû REOFFERûINûSECONDARYûONûTHEIRûlRSTûTRADINGûDAY
new notes, which will have a tenor of three end of 2019, mainly from the four largest
years and pay 14.25%. The exchange offer is STATEûBANKSûINû#HINA 0ROCEEDSûWILLûBEûUSEDûFORûRElNANCINGûDEBTû
subject to a minimum acceptance amount of and general corporate purposes.
US$300m. Moreover, it has a quota for remitting
onshore funds offshore, although the Barclays, BNP Paribas, Credit Agricole CIB, DBS
&ITCHûONû4HURSDAYûASSIGNEDûANûEXPECTEDû AMOUNTûISûNOTûSUFlCIENTûTOûCOVERûTHEû Bank, HSBC, Mizuho Securities, OCBC Bank and
B– rating to the proposed new notes, on par US$455m maturity. UOB were global coordinators.
with the issuer. It does not view the
proposed exchange offer as distressed INDONESIA SRITEX HIRES FOR YANKEE
because it does not impose a material
reduction in terms and the company, if TOWER BERSAMA SELLS AFTER UPGRADE Indonesian textile producer SRI REJEKI ISMAN,
needed, has alternative funding available to KNOWNûASû3RITEX ûHASûMANDATEDûCitigroup as
redeem the bond. TOWER BERSAMA INFRASTRUCTURE raised SOLEûGLOBALûCOORDINATORûANDûJOINTûBOOKRUNNERû
53 MûFROMûAûlVE
YEARû2EGû3ûBONDûTHATû with DBS to arrange investors calls in Asia,
The deadline for the exchange offer and priced at par, to yield 2.75%, inside initial Europe and the US from January 11.
consent solicitation is January 18. Settlement price guidance of the 3% area.
is expected on or about January 25. !û53ûDOLLARû ! 2EGû3ûGUARANTEEDûBONDû
The bonds, with an expected BBB– rating offering may follow.
Proceeds from the concurrent new-money BYû&ITCH ûWEREûTHEûISSUER SûlRSTûINTERNATIONALû
ISSUEûWILLûBEûUSEDûTOûRElNANCEûTHEû SûANDû bond offering since the ratings agency The size is expected to be capped at
for general corporate purposes. upgraded it to investment grade in US$325m, according to a note sent to
November. S&P still holds its BB rating on investors, and the issuer is considering a
Haitong International is sole dealer manager the Indonesian telecoms tower operator. lVE
YEARûNON
CALLûTHREEûTENOR
for the exchange offer as well as the sole
global coordinator, sole lead manager and “Of course investors had different views on The proposed notes have expected ratings
SOLEûBOOKRUNNERûFORûTHEûCONCURRENTûNEWû THEûCREDITûSOû)ûWOULDN TûSAYûTHEûDEALûWASûAû OFû" ""nû -OODY S &ITCH ûINûLINEûWITHû
money issue. DF King is information, massive hit, but it still gained decent demand 3RITEX SûISSUERûRATING
tabulation and exchange agent. from high-quality investors who understand
THEûCOMPANY vûSAIDûAûBANKERûONûTHEûDEAL )Nû$ECEMBER û-OODY SûDOWNGRADEDû3RITEXû
&ITCHûONû*ANUARYû ûPLACEDû'UORUI SûRATINGSû ANDûITSûDOLLARûBONDSûTOû" ûFROMû"A ûKEEPINGû
on negative watch, citing uncertainty over Tower Bersama previously printed a ITSûNEGATIVEûOUTLOOK û4HEûSAMEûMONTH û&ITCHû
THEûRElNANCINGûARRANGEMENTSûFORûTHEû S û 53 Mû ûlVE
YEARûNON
CALLûTHREEû REVISEDûTHEûOUTLOOKûONû3RITEX SûRATINGûTOû
WHICHûAREûPUTTABLEûONû&EBRUARYû ûTHISûYEAR û bond in January last year that was seen at a negative from stable.
4HEûRElNANCINGûRISKûMAYûBEûALLEVIATEDûIFûTHEû bid cash price of 104.50 for a yield of 2.96%
new issue is successful, it said. on Thursday, according to Tradeweb. -OODY SûWARNEDûOFûGROWINGûRElNANCINGû
RISKûAROUNDû3RITEX Sû53 MûSYNDICATEDû
!CCORDINGûTOû&ITCH û'UORUIûSECUREDû loan due January 2022. The company also
2MB BNû 53 BN ûINûUNUSEDûBANKû has US$150m of bonds due 2024 and
US$225m bonds due 2025.
62 International Financing Review January 16 2021
EMERGING MARKETS EMEA
Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
- Ba3/NR/BB- -
7.625%/7.75%, 7.5% - - Ba3/NR/BB- Citi/HSBC/JPM/StCh/Dhofar/GIB -
area, 7.25% yld / Natx/QNB
- Ba3/NR/BB- Citi/HSBC/JPM/StCh/Dhofar/GIB
6.625% area, - / Natx/QNB
US$3.2bn Caa2/NR/B-
6.375% area, 6.25%
-
yld -
-
4.875% area, - US$800m Citi/HSBC/JPM/StCh/Dhofar/GIB -
4.625%/4.75%, - / Natx/QNB
4.45% -
-
8.5% area, 8.125% - - BNPP/BofA/HSBC/MUFG/JPM/Uni -
area -
-
low/mid 8%, 8.125% - - -/BB/BB+ BNPP/GS/Santan/SMBC -
(+/-0.125) -
-
105% area - B1/-/BB- MS -
low 4%, 4% (+/-5) - Ba3/BB-/BB BTG/Citi/CA-CIB/GS/Itau/JPM -
- -/-/BBB- BCPSecs/CS/Jeff -
low 5%s, 5% - Baa2/BBB-/BBB- CS/DB/JPM -
T+230 area, T+210 - Baa2/BBB-/BBB- CS/DB/JPM -
(the #)
- Ba3/BB-/BB- Citi/JPM -
2.95% area, 2.80% - Ba3/BB-/BB- Citi/JPM -
(the #) - Baa1/BBB/BBB- Barc/BNPP/Citi/Santan -
5.5% (+/-12.5) - Baa1/BBB/BBB- Barc/BNPP/Citi/Santan -
4% (+/-12.5) - B1/B+/BB- JPM/BofA/Santander -
- -/BB-/BB
MS+210 area, - -/BB-/BB- BNPP/BBrad/HSBC/Jeff/JPM/Santan -
MS+190 area
BTG/JPM/MS/Santander/UBS -
MS+270 area,
MS+250 area
-
4% (+/-5)
5.25% (+/-5)
SOUTH KOREA BNP Paribas, Bank of America, Citigroup, though, a tight print versus covered bonds
Credit Agricole CIB and HSBC have been FROMûTHEûNEIGHBOURINGû3LOVAKû2EPUBLIC û
DEAL LIST GROWS mandated. WHICHûAREûELIGIBLEûFORûTHEû%#" Sû#"00 v
The pipeline from South Korean issuers is growing. The proposed senior unsecured notes *IRIû3PERL û+" SûCHIEFûlNANCIALûOFlCER ûTOLDû
KEB HANA BANK ûRATEDû! ! !n ûHIREDûBANKSû HAVEûANûEXPECTEDûRATINGûOFû"AA ûBYû-OODY S )&2ûTHEûBANKûISûJOININGûTHEûCOVEREDûBONDû
MARKETûASûITûCONSIDEREDûITûANûEFlCIENTûANDû
to arrange investor calls starting on January 3+û)NNOVATION Sû53ûSUBSIDIARYû3+û"ATTERYû stable source of euro-denominated funding.
ûFORûAûPROPOSEDûEURO
DENOMINATEDûlVE
America plans to use the proceeds to invest 4HEûPRODUCTûMAYûBECOMEû+" SûMAINûSOURCEû
YEARûSOCIALûCOVEREDûBONDûOFFERINGûBACKEDûBYû in automobile battery facilities, according to OFûEUROûFUNDING ûDEPENDINGûONûMARKETû
Korean residential mortgages. AûSTOCKûEXCHANGEûlLING conditions, he said.
BNP Paribas, Citigroup, Credit Agricole CIB, JP EUROPE/AFRICA “KB is liquidity rich in local currency and
Morgan and Societe GeneraleûAREûBOOKRUNNERSû hence has been relying mainly on the cross-
and lead managers CZECH REPUBLIC CURRENCYûSWAPûMARKETûWHEREûSIGNIlCANTû
PRICINGûVOLATILITYûISûCONNECTEDûTOûANYûMARKETû
4HEûPROPOSEDû2EGû3ûBONDûHASûEXPECTEDû KOMERCNI BANKA PLANTS COVERED event,” he said.
RATINGSûOFû!!! !!!û 3 0 &ITCH ûANDûWILLûBEû FLAG FOR HOMELAND
issued under the Korean Covered Bond Act. h&ROMûTHEûPERSPECTIVEûOFûEFlCIENCYûANDû
KOMERCNI BANKA opened the borders to pricing stability, Triple A rated covered
+%"û(ANAû"ANKûISûONEûOFûTHEûLARGESTûBANKSû covered bond issuance out of the Czech BONDSûHAVEûBEENûIDENTIlEDûASûTHEûBESTû
in terms of assets in |South Korea. 2EPUBLICûONû7EDNESDAY ûBRINGINGûTHEûlRSTû alternative. The recent update of the Czech
internationally syndicated deal since 2016 LEGALûFRAMEWORKûHASûINCENTIVISEDûUSûTOû
KOREA SOUTHERN POWER (KOSPO), rated Aa2/ with a €500m January 2026 note. establish a covered bond programme and
!!nû -OODY S &ITCH ûHIREDûCitigroup, Credit issue our inaugural trade.”
Agricole CIB, Mizuho and UBS to arrange 7ITHûNOûBENCHMARKSûFROMûTHEûCOUNTRYû
investor calls for a proposed US dollar three outstanding, the lender, which is the third- 4HEû#ZECHûCOVEREDûBONDûLEGALûFRAMEWORKû
ORûlVE
YEARû ! 2EGû3ûGREENûBONDûOFFERING LARGESTû#ZECHûBANK ûHADûTOûGOûTHROUGHûAû was revamped in January 2019, addressing
MARKETINGûEFFORTûTOûPREPAREûTHEûGROUNDûFORû areas such as cover pools not being
The calls on the proposed senior the trade. segregated by programme, insolvency
unsecured notes will start on January 19. proceedings and improvement of the
“There was a lot of wood to chop in terms of statutory tests.
Korea Southern Power is a wholly owned investors understanding the Czech mortgage
subsidiary of Korea Electric Power Corporation. ANDûBANKûMARKET vûSAIDûAûBANKER ûh)TûIS û 4HEûEURO
DENOMINATEDû2EGû3ûlVE
YEARû
BENCHMARKûlXED
RATEû#ZECHûMORTGAGEû
SK BATTERY AMERICAûHASûHIREDûBANKSûTOû covered bond is expected to be rated AAA by
arrange investor calls starting on January 14 &ITCH ûANDûTOûBEû%#"ûREPO
COMPLIANT û+"ûSETû
FORûAûPROPOSEDû53ûDOLLARûTHREE
YEARûANDûlVE
the spread at swaps plus 12bp, versus initial
YEARû2EGû3ûGREENûBONDûOFFERINGûWITHûANû guidance of the 18bp area.
unconditional and irrevocable guarantee
from SK INNOVATION.
International Financing Review January 16 2021 63
“Given that Czech covered bonds will not the EEA are eligible as collateral under the an August 2023 note quoted at 0.73%,
be bought by the Eurosystem under its QE Czech covered bond legislation, but the according to Tradeweb, and a September
programme, we would expect Czech contractual eligibility criteria for the 2025 bond at 1.14%.
covered bonds to trade somewhat wider international cover pool ensure that only
THANûMOSTû3LOVAKIANûCOVEREDûBONDS û residential mortgage loans on property The Wizz notes were issued via
implying that the guidance level seems a bit LOCATEDûINûTHEû#ZECHû2EPUBLICûAREûELIGIBLE v .ETHERLANDS
BASEDû7IZZû!IRû&INANCEû
RICH vûWROTEû!".û!-2/ûANALYSTSûDURINGû Company, and should be eligible for the
execution. HUNGARY %#" SûCORPORATEûBONDûBUYINGûPROGRAMME û
“Still, the deal would offer a double-digit WIZZ AIR BOND FLIES WITH PLANES “Wizz was transparent from the
PICK
UPûVERSUSû SEMI ûCOREûPAPER ûWHICHû GROUNDED BEGINNINGûTHATûTHEYûWANTEDûAûBENCHMARKû
SHOULDûMAKEûITûBENElTûFROMûTHEûSEARCHûFORû BUTûWOULDN TûTAKEûMONEYûTHEYûDIDN TûNEED vû
yield.” WIZZ AIR made its debut in the international said the lead.
BONDûMARKETSûWITHûTHEûMINIMALûOFûFUSSûONû
VUB has a June 2025 bid at 16bp, Wednesday, despite the low-cost airline h4HEYûDIDN TûNEEDûANYTHINGûLONGERûTHANû
ACCORDINGûTOû4RADEWEBûPRICES ûANDû3LOVENSKAû forecasting a tough January and potentially three years. We will see Wizz being more
sporitelna a June 2026 quoted at the same DIFlCULTûMONTHSûAHEAD frequent, at least compared to other CEE
level. NAMES ûANDû) DûLIKEûTOûTHINKûWEûWILLûSEEûTHEMû
Wizz sold a €500m three-year note with again before those three years are up.”
h)ûlNDûITûINTERESTINGûFROMûANûINVESTORû ORDERSûPEAKINGûATûMOREûTHANûõ BN û7IZZ û
PERSPECTIVE û)ûTHINKûYOU DûBEûQUITEûKEENûTOû WHICHûHASûBEENûEXPANDINGûITSûmEETûANDû Barclays, BNP Paribas, Citigroup and JP
GETûTHOSEûDOUBLEûDIGITSûKINDûOFûSPREADS û"UTû NETWORKûDURINGûTHEûCRISIS ûSECUREDûTHEûTRADEû Morgan were lead managers and
at the same time you need to get your head even though it has suspended most UK BOOKRUNNERS
around the jurisdiction, and so on,” said a routes and sees January capacity down 75%.
SECONDûBANKER RUSSIA
#HIEFûEXECUTIVEû*OZSEFû6ARADIûTOLDû2EUTERSû
+"ûATTRACTEDûBOOKSûOFûMOREûTHANûõ BNû THATûCAPACITYûHADûBEENûADJUSTEDûTOûREmECTû CBOM FINDS THE EURO WINDS
via global coordinator Societe Generale, and it THATûDEMANDûHADûBEENûHITûBYûLOCKDOWNS û BLOWING FAIR
WASûJOINEDûASûAûBOOKRUNNERûBYûBarclays and ANDûTHATûITûWASûGOINGûTOûBEûAûDIFlCULTû
JP Morgan. quarter. CREDIT BANK OF MOSCOW made its second trip to
THEûEUROûMARKETûONû7EDNESDAYûWITHûLEVELSû
3PERLûSAIDûTHEûFACTûAûPICK
UPûVERSUSû3LOVAKû “Airlines have been particularly affected LOOKINGûFARûMOREûCOMPELLINGûCOMPAREDûWITHû
covereds was not required showed the by the Covid pandemic, and people are very its debut trade in the currency, as it
MARKETûAPPRECIATESûTHEûSTRENGTHûOFû+" ûTHEû CAUTIOUSûAROUNDûTHEûNAMES vûSAIDûAûBANKERû COMPLETEDûAûõ MûlVE
YEARûDEALûATû
#ZECHû2EPUBLICûANDûTHEûHIGHûQUALITYûOFûITSû familiar with the matter.
covered bonds. #"/-ûHADûBEGUNûMARKETINGûTHEû*ANUARYû
h"UTûIFûTHEYûDOûLIKEûTHEûNAMEûANDûBELIEVEû 2026 note at the 3.50% area. It had made its
“There were thrilling moments, especially INûTHEûSTRATEGY ûTHENûTHEYûLIKEûTOûDIVERSIFYû inaugural euro sale in 2019 with a €500m
ATûTHEûBEGINNINGûOFûTHEûBOOKBUILDING ûANDû)û ANDûTHEYûLIKEûTOûBEûINûTHEûDEBUTûTRADE û û&EBRUARYû ûBOND ûTHATûWASûBIDûATû
believe that we have really enjoyed our )NVESTORSûDIDûTHEIRûHOMEWORK ûANDûTHESEû 7EDNESDAY SûOPENûATû ûACCORDINGûTOû
premiere issuance,” he added. guys are faring better than others, so if you Tradeweb.
BELIEVEûINûTHEûCREDIT ûWHYûWOULDN TûYOUû
).'ûANALYSTSûSAYûTHATû+" SûRATINGSûOFû! invest?” h9OUûCANûSEEûIT SûANûAPPEALINGûCASEûGIVENû
A/A are roughly equivalent to Societe last time CBOM came at 5.15%,” said a lead.
'ENERALEû ! ! !n ûWHICHûOWNSûAûSTAKEûOFû Varadi, who co-founded Wizz (Baa3/–/ h4HISûONEûALSOûLANDEDûmATûTOû53ûDOLLARS ûISûAû
around 60% in KB. """n ûINû(UNGARYûINû ûSAIDû7IZZ Sû LOWûYIELD ûANDûITûGOESûTOWARDSûTHEûBANK Sû
longer-term growth story remained intact, euro lending and developing a different
h4HEûEUROûBENCHMARKûMORTGAGEûCOVEREDû ANDûTHEûAIRLINEûSHOULDûBOUNCEûBACK investor base.”
BONDSûWILLûBEûSECUREDûBYû+OMERCNIûBANKA Sû
international cover pool,” said ING. h)ûTHINKûIFûRESTRICTIONSûGETûREMOVEDûBYû 4HEûlRSTûEUROûDEALûCAMEûSIGNIlCANTLYûBACKû
summer, I would say that summer 2021 OFû#"/- SûDOLLARûCURVE û)NûTHEûNEWûTRADE û
h4HEûBANKûALSOûISSUESûCOVEREDûBONDSû would not be far away from summer 2019 #"/-û "A ""n "" ûWASûABLEûTOûPRINTûmATûTOû
under a local covered bond programme, from our perspective,” he said. “But you its dollar curve after moving the price by
which are secured by a separate local cover would not see that happening at many of 40bp from IPTs.
POOL û&IRSTûRANKINGûMORTGAGEûLOANSûLOCATEDûINû the other airlines.”
“Given that the supply of hard-currency
ALL INTL EMERGING MARKETS BONDS Wizz says it has €1.6bn in cash which DEBTûINûTHEû2USSIANûBANKINGûSPACEûREMAINSû
BOOKRUNNERS: 1/1/2021 TO DATE means it can survive for two years even if all STRUCTURALLYûLIMITEDûANDûTHEûMARKETû
planes are grounded. ENVIRONMENTûISûSUPPORTIVE ûWEûTHINKûTHEû
Europe/Africa No of Total Share PLACEMENTûWILLûATTRACTûSUFlCIENTûINVESTORû
issues US$(m) (%) The pandemic is still a challenge. Wizz attention, with the participation of local
Managing axed 1,000 staff and for the six months LEADûMANAGERSûLIKELYûSUPPORTINGûTIGHTERû
bank or group ENDEDû3EPTEMBERûSANKûTOûAûLOSSûOFûõ M VALUATIONS vûSAIDû%KATERINAû3IDOROVA ûSENIORû
lXED
INCOMEûANALYSTûATû3BERBANK ûBEFOREû
1 Nikko Citi 1 593.85 14.8 4HEû*ANUARYû ûBONDûOFFERINGûWASûlRSTû BOOKSûWEREûOPENED
2 SG 1 593.85 14.8 MARKETEDûATûTHEû ûAREA ûEQUIVALENTûTOû
3 BNP Paribas 2 464.56 11.5 swaps plus the 225bp area, for a no-grow Demand reached over €1.1bn.
4 Credit Agricole 1 414.82 10.3 trade. Pricing was pushed down for a launch #ONTINENTALû%UROPEûTOOKû ûOFûTHEûNOTESû
5 HSBC 1 414.82 10.3 at 1.35%. WHILEû2USSIAûANDûTHEû#)3ûTOOKû ûANDû û
6 Nova Kreditna 1 414.82 10.3 went to the UK.
The bonds were targeted at a European
Maribor 1 414.82 10.3 corporate credit investor base, with fellow h,ASTûYEAR û#"/- SûCREDITûPROlLEûBENElTEDû
7 Barclays 1 414.82 10.3 BUDGETûAIRLINEû2YANAIRû """ """ ûOFFERINGû FROMûTHEûBANK SûMOREûLIMITEDûASSET
QUALITYû
8 Deutsche Bank 1 49.73 1.2 THEûMAINûPRICINGûCOMPARISON û2YANAIRûHASû deterioration than some of its local peers,
9 Sumitomo Mitsui 1 49.73 1.2
10 Citigroup 3 4,024.77
Total
Excluding equity-related debt. SDC code: L2
Source: Refinitiv
64 International Financing Review January 16 2021
EMERGING MARKETS EMEA
while its earnings were relatively stable,” Benin narrows gap to
said Sidorova. neighbour
h-EANWHILE ûASûTHEûBANKûISûEMERGINGû AFRICA Sovereign issues 10 and 30-year weighted-average life bonds as
from regulatory forbearance measures and it closes spread with Ivory Coast
thus faced some pressure on its local capital
ratios in 3Q20, its historically tightly West African sovereign BENIN made a material Venturing into 30-year euros is, however,
managed local CET1 capital ratio will be reduction in the pricing gap to one of the extremely rare for these kinds of Single B
something to follow for debt investors, benchmark names in the region with its €1bn emerging market sovereign issuers.”
THOUGHûTHEûBANKûISûALSOûPLANNINGûTOûRAISEû dual-tranche bond on Tuesday.
equity at some point this year.” Arnaud said that the final 31-year maturity
Benin (B+/B) made its initial push on a 10- effectively made it the longest euro bond
3IDOROVAûSAIDûTHEûBANK Sû#%4 ûRATIOûASûOFû year weighted average life, due January 2032 executed by an African sovereign.
December 1 stood at 8.2%, compared to the bond, opening books at mid to high 5s.
regulatory minimum, including buffers, of Interest for the longer note reached over €1bn.
8%. One of the most relevant pricing Momentum for the new issue was given a
comparables was a similar final life maturity push by an any-and-all tender offer on the 2026
h4HEûBANK SûCONCENTRATEDûBALANCEûSHEETû bond from Ivory Coast (Ba3/–/B+), sold in bonds. Holders offered up €322m of their notes.
structure, with a high share of reverse repo November, which was bid at 4.2%, according to An investor said he had been looking to sell
DEALSû ûOFûTOTALûASSETS ûISûANOTHERûFACTORû Refinitiv, though leads saw it closer to 4.5%. back his bonds, with part of the rationale being
TOûWATCH ûALTHOUGHûTHEûBANKûHASûMANAGEDûTOû that strong uptake on the tender would leave the
somewhat reduce this share over the past Benin’s debut offering, a €500m 5.75% outstanding note illiquid.
year,” said Sidorova. 2026 note, has traded throughout its life about “But also there is the strong technical of too
125bp–150bp back of Ivory Coast. much cash in the system, strong inflows at the
Citigroup, JP Morgan and Societe Generale end of last year and large cash balances,” he
WEREûGLOBALûCOORDINATORSûANDûBOOKRUNNERS “The clear objective was to reprice the Benin said.
curve closer to its West African peers,” said Another investor said she was positive on
&URTHERû2USSIANûSUPPLYûISûONûTHEûWAYûVIAû Aymeric Arnaud, head of CEEMEA debt capital Benin’s story.
privately-owned SOVCOMBANK, which has markets at Societe Generale, which was lead “The track record of fiscal consolidation and
ANNOUNCEDûAûDOLLARûTHREEûTOûlVE
YEARûSOCIALû alongside Citigroup. high growth combined should offer positive debt
bond. dynamics in the coming years,” she said.
One investor saw good value up to 100bp “The government wants to enter another IMF
4HEûPROCEEDSûWILLûlNANCEûTHEûLOANû wide of Ivory Coast, while she said a price in the programme, which also enhances credibility and
PORTFOLIOûFORûTHEûBANK Sû(ALVAûPAYMENTû mid 5s would have looked flat to Egypt. willingness to reform.”
instalment card. In December, the IMF approved US$178m in
However, a book of about €1.8bn allowed emergency assistance to the country under the
4HEûLENDERû "A "" "" ûHADûEXPLOREDûAû leads to push pricing for Benin to 5.125%. Rapid Financing Instrument and the Rapid Credit
similar transaction last year via a Facility, in the wake of the coronavirus pandemic.
Eurorouble, but the trade never “Ivory Coast, a blue-chip Eurobond issuer of The multilateral said economic growth probably
materialised. West Africa came last November with a long slowed to 2% in 2020, from nearly 7% in 2019.
10-year at a yield of 5%,” said Arnaud. The economy is predicted to grow by 5% in 2021.
JP Morgan is global coordinator, Arnaud said those numbers were forecast
BOOKRUNNERûANDûDEVELOPMENTûlNANCEû “Of course there has been secondary when pessimism was at its peak in April, with
structuring agent. It is social bond performance since then, but still for Benin to the government now predicting slightly higher
structuring agent alongside HSBC. HSBC is a come six weeks later at just 5.125% is simply growth figures.
LEADûMANAGERûANDûBOOKRUNNERûALONGSIDEû amazing.” Arnaud added that the result “Even if you say 2% is the right number, it
Emirates NBD Capital, Gazprombank, HSBC, ING, reflected an effective marketing campaign from makes it the second-fastest growing African
Renaissance Capital, Sberbank CIB, Sova Capital, the Benin delegation. economy last year,” said Arnaud.
UniCredit and VTB. Sovcombank is a Benin has a GDP of just over US$14bn,
BOOKRUNNER Benin also took advantage of demand according to the World Bank. The Port of
for yield by issuing a €300m January 2052 Cotonou and the cotton sector are the two pillars
%ARLIERûINû*ANUARY û3OVCOMBANKûSIGNEDûAû note with a weighted-average life of 30 of the country’s economy.
US$350m syndicated loan facility which years. That tranche had been suggested as Benin remains vulnerable to economic
includes an environmental, social and only a possibility at the time of the deal’s developments in Nigeria, its main trading
governance tranche. announcement but was added during partner.
execution. Nigeria closed its land borders in 2019 to
The loan has two tranches with maturities curb smuggling of rice and arms, which it says
of 12 and 18 months and will be used to The 30-year bond came at 7.25%, 25bp threatens efforts to boost local production and
lNANCEû3OVCOMBANK SûFOREIGNûTRADEû inside guidance. It offered a spread of around security, and to generate state revenues through
operations, for general corporate purposes 125bp versus a theoretical Ivory Coast 30-year, import duties. It reopened four border crossing
and to further grow the Halva buy-now/pay- with the additional spread on offer in part points in December.
later instalment platform. explained by shallower liquidity for a smaller Robert Hogg
bond.
/NûTHEûCORPORATESûSIDE û2USSIANûGASû
company GAZPROMûSAIDûONû&RIDAYûITSûBOARDû “We opened first the 10-year WAL books as we
had approved potential issuance of needed accounts to focus on that core tranche,
%UROBONDSûWORTHûUPûTOûõ BNûTOûlNANCEû but once we felt we had enough momentum we
borrowings in 2021. opened the books for the 30-year WAL,” said
Arnaud.
&ITCHûHASûAFlRMEDûITSûRATINGûOFû"" ûWITHûAû
NEGATIVEûOUTLOOK ûONû-OSCOW SûDOMODEDOVO “There’s no denial it was an attractive price as
AIRPORT, with the agency expecting the we needed to generate very quick momentum.
COMPANYûINûTHEûMARKETûSOON
h5NDERû&ITCH SûRATINGûCASE û$-%ûWILLû
progressively de-leverage in the next three
YEARSûONûTHEûBACKûOFûEXPECTEDûMODERATEû
TRAFlCûRECOVERYûAND ûIFûNEEDED ûCAPEXûANDû
International Financing Review January 16 2021 65
DIVIDENDûmEXIBILITY vûSAIDû&ITCH ûh7EûALSOû AWAY SûLEVEL ûACCOUNTEDûFORûBYûTHEûFACTû "/!$û "AA n """ ûBEGANûMARKETINGûTHEû
assume that the US$350m bond due in THERE SûALWAYSûAûDEGREEûOFûGUESSWORKû year, which was at the long end of a maturity
.OVEMBERû ûWILLûSHORTLYûBEûRElNANCED v involved in such things. range explored with investors, at swaps plus
THEû BPûAREA û!ûBANKERûAWAYûEXPECTEDûTHATû
TURKEY )NVESTORSûSTARVEDûOFû4URKISHûBANKûSUPPLYû it would receive a positive reception.
have been waiting for their return, even if
YAPI KREDI STRIKES WITH TIER 2 they remain cautious. The underlying h) MûSUREûTHISûWILLûmY vûHEûSAID û(Eû
CHALLENGESûTHATû4URKEYûFACESûHAVEN Tû predicted that the bond could print with a
YAPI KREDI RETURNEDûTOûTHEû53ûDOLLARûMARKETû DISAPPEAREDûTHOUGHûTHEûBANKINGûSECTORûHASû yield at or just below 3%, which would swap
FORûTHEûlRSTûTIMEûINûNEARLYûTWOûYEARSûWITHûAû withstood all the problems, especially BACKûINûDOLLARSûTOûSWAPSûPLUSû BP
WELL
SUBSCRIBEDû4IERû ûBONDûASû4URKISHû regarding the currency.
ISSUERSûTAKEûADVANTAGEûOFûAûPERIODûOFûRELATIVEû h4HEûCURRENTû ûDOLLARûNOTEûISûMARKEDû
calm for the country. h)ûTHINKûTHEûBANK ûLIKEûOTHERSûINû4URKEY û at 295bp,” he said. “They might push pricing
has proved it can deal with challenges, even tighter of course, but still a distance
After development institution TSKB got which is a positive,” said the investor. BACKûOFûTHEûDOLLARûCURVE û'IVENûTHISûISûDEBUTû
THEûBALLûROLLINGûLASTûWEEKûWITHûAû53 Mû euro, hard to ascribe the sustainability
lVE
YEARûSUSTAINABLEûBOND ûPRIVATEûLENDERû /NEûPOINTûOFûCOMPARISONûWASû9API Sû!4 û BENElTûnûIFûANY v
9APIû " n " ûWENTûWITHûAûRISKIERûSTRUCTUREû which is callable in January 2024 and was
THROUGHûAû
YEARûNON
CALLûlVEûSUBORDINATEDû bid at 9.06%, according to Tradeweb. BOAD tightened pricing by 50bp for a
bond. However, with investors chasing yield print at 300bp. The reoffer yield was 2.843%.
and a call date approaching in March for At IPTs, a second investor said the Tier 2
9API Sû53 Mû û4IERû ûNOTEûDUEû û WASûhCHEAPûVERSUSûTHEû!4 ûSOû) MûSUREû The lead had seen the slightly shorter
the move made sense. EVERYONEûWILLûmOCKûTOûITv bond dollar bond tighter, at 270bp.
h4HEûMARKETûLOVESû4IERû ûATûTHEûMOMENT vû A third investor, however, saw it “Of course there is some credit curve to
SAIDûAûBANKERûAWAYûFROMûTHEûDEAL DIFFERENTLY ûh)ûTHINKûTHATû9API Sû!4 ûISûPRETTYû add,” he said. “The spread between euros and
expensive rather than this being cheap,” he DOLLARSûFORûANOTHERû4RIPLEû"ûNAMEûLIKEû-OROCCOû
With the call option in mind, the new said after IPTs were announced. is 50bp, for Mexico it is closer to 10bp. Pricing
ISSUEûWASûONLYû53 MûDESPITEûTHEûBOOKû for BOAD was better than expected.”
hitting US$3.2bn. That supply/demand h)FûYOUûCOMPAREûITûTOûOTHERûPRIVATEûBANKû
imbalance enabled leads to move pricing by Tier 2s outstanding, they trade with senior Natixis was sole sustainability bond
BP ûDESPITEûRATINGSûOFû#AA ûBYû-OODY Sû ratios of 1.5x to 2x. This one comes at 1.6x, FRAMEWORKûSTRUCTURINGûADVISER û)TûWASûJOINEDû
ANDû"nûBYû&ITCHûFORûTHEûNOTE which is not too cheap.” ASûAûBOOKRUNNERûBYûHSBC and JP Morgan.
"OOKSûFORûTHEûTRADEûOPENEDûATûTHEû ûAREAû Yapi has a June 2024 senior bond bid at MIDDLE EAST
with the bond subsequently launching at 5.2%.
7.875%. That was roughly in line where a second UAE
BANKERûAWAYûFROMûTHEûDEALûSAWûFAIRûVALUE BNP Paribas, Bank of America, HSBC, MUFG, JP
Morgan and UniCredit were the leads. DAE HOPES FOR CLEAR SKIES AHEAD
4HEûBANKERûSAIDû9APIû+REDIûTYPICALLYû
traded in senior debt around 20bp inside REGIONAL DUBAI AEROSPACE ENTERPRISE offered investors
)SBANK û(EûPUTûTHEûFAIRûVALUEûLEVELûFORûAû exposure to a sector hoping to be on a path
SIMILARû)SBANKû4IERû ûBASEDûONûITSû53 Mû BOAD DRAWS THUMPING DEMAND to recovery in 2021, and investors proved
7.75% Tier 2 callable in January 2025, at FOR DOUBLE DEBUT KEENûTOûTAKEûDOWNûITSû53 BNûDUAL
around 8%. That would imply fair value for tranche transaction on Tuesday.
Yapi Kredi in the high 7s, applying the same BANQUE OUEST AFRICAINE DE DEVELOPPEMENT found
20bp spread between the two credits. a strong response for its debut entry into The global aerospace company, wholly
euros and sustainable debt, with its €750m owned directly and indirectly by the
A lead, using the same methodology, 12-year note on Thursday. Investment Corporation of Dubai, had
RECKONEDûFAIRûVALUEûWASûAROUNDû ûWITHûTHEû traditionally sold conventional notes with
DIFFERENCEûBETWEENûHISûANDûTHEûBANKERû "OOKSûREACHEDûOVERûõ BN ûAûLEADûSAID û call structures to US-based high-yield
allowing BOAD, which is the regional investors, before it focused on investment-
ALL INTL EMERGING MARKETS BONDS DEVELOPMENTûBANKûOFûTHEûMEMBERûSTATESûOFûTHEû grade EM buyers in November through a
BOOKRUNNERS: 1/1/2021 TO DATE West African Economic and Monetary Union, 53 Mû&EBRUARYû ûSUKUKûOFFERING
TOûTAKEûTHEûMAXIMUMûITûHADûBEENûSEEKING
Middle East No of Total Share Momentum is building with this deal,
issues US$(m) (%) “They had euro needs, and given this was comprising US$500m four-year notes and
Managing new for them to do euros and sustainability, 53 MûSEVEN
YEARûBONDS ûGETTINGûAûBOOKû
bank or group WEûUSEDûAûDAYûANDûAûHALFûOFûMARKETINGûTOû OFû53 BNûWHEREASûTHEûSUKUKûOFFERINGûGOTû
EXPLAINûTHEûFRAMEWORKûANDûTHEûCURRENCY vû demand of US$2.8bn.
1 Standard Chartered 3 452.93 16.7 said the lead.
2 Emirates NBD 3 345.12 12.7 The conventional nature of the new bond
3 Mizuho 2 273.69 10.1 “A lot of investors answered to this meant US investors returned to play a larger
4 ING 1 150.00 5.5 positively. The ESG format helped because PARTûTHANûTHEYûHADûINûTHEûSUKUK ûWITHûTHEû
5 Indl & Comm Bk China 1 150.00 5.5 we had some dedicated ESG investors BOOKSûOPENûLONGûENOUGHûTOûACCOMMODATEû
6 Fifth Third Bancorp 1 123.69 4.6 participating, and we ended with more than their interest.
7 JP Morgan 1 123.69 4.6 ûACCOUNTSûWHICHûMADEûFORûAûHUGEûBOOK v
8 Goldman Sachs 1 123.69 4.6 “The Islamic trade was about targeting a
9 Truist Financial 1 123.69 4.6 4HEûPROCEEDSûOFûISSUESûUNDERû"/!$ Sû SPECIlCûAUDIENCE ûBUTûTHISûWASûAûCHANCEûTOû
10 HSBC 1 123.69 4.6 SUSTAINABILITYûBONDûFRAMEWORKûWILLûBEûUSEDû REPOSITIONûBACKûINTOûTHEûNATURALûAVIATIONû
4 2,718.40 TOûlNANCEûELIGIBLEûSOCIALûAND ORûGREENû MARKET vûSAIDûAûLEAD
Total expenditures.
Excluding equity-related debt. SDC code: L5 Those expenditures could be medium and
Source: Refinitiv long-term loans, including concessional
LOANS ûANDûlNANCINGûOFûEMERGENCYûPLANSû
such as a response to pandemics.
66 International Financing Review January 16 2021
EMERGING MARKETS AMERICAS
“Because of who they are, they appeal to over Treasury rates and climbing Covid cases in Credit Suisse, Deutsche Bank, and JP Morgan
more of a global audience than many of the THEûCOUNTRYûFORMEDûAûDIFlCULTûBACKDROP û were leads on the deal.
aviation guys, with a bid out of Asia, the
Middle East and from EM generally.” The sovereign issued a US$790m tap of its DOMINICAN REPUBLIC
3.125% 2031s and a new US$1.3bn 2061
The new bonds, which are EMBI-eligible, bond, but struggled to move pricing below DOMREP PULLS IN LARGE DEMAND
AREûEXPECTEDûTOûBEûRATEDû"AA ûBYû-OODY Sû fair value as rising Treasury yields and
ANDû"""nûBYû&ITCH û$!%ûISûRATEDû"AA "" moves to impeach President Donald Trump Investors found the DOMINICAN REPUBLIC SûNEWû
"""nûANDûISûONûAûNEGATIVEûOUTLOOKûWITHû PUTûSOMEûEMERGINGûMARKETSûNAMESûINûTHEû two-part offering attractive, with demand
-OODY SûANDû&ITCH red on pricing day. north of US$9bn for its US$2.5bn
transaction.
“The investor base remains pretty The tap of the 2031s priced at 2.80% and
constructive on aviation, with hopes around the new 3.875% 2061s at 210bp over The Ba3/BB–/BB– rated sovereign priced a
vaccines and the political situation in the Treasuries. US$1bn tap of its 4.50% notes due 2030 at
US,” said the lead. 3.875% and a new US$1.5bn 20-year note at
"OOKSûONûTHEûTRANSACTIONûPEAKEDûATû 5.3% last Wednesday.
h0EOPLEûAREûKEENûTOûLOOKûATûCYCLICALûANDû US$5.6bn across the two tranches, with
RECOVERYûNAMES û!LSOûITûDOESN TûHURTûTHATû uncertainty over Treasury rates weighing on Pricing tightened from guidance of the 4%
people are more constructive on the region MOMENTUMûFORûTHEûDEAL ûSAIDûAûBANKERûCLOSEû area on the tap and 5.5% area on the 20-year
and Dubai in particular, given the recovery of to the deal. n BP ûANDûCAMEûWELLûINSIDEûINITIALûPRICEû
OILûPRICESûANDû$UBAI SûPROGRESSûONûVACCINESû thoughts set at the 4.25% area and 5.75%
and its capacity to attract global tourism.” 4HEûBANKERûSAIDûPRICINGûWASûWIDEûOFûFAIRû area, respectively.
value estimates of 2.78% on the tap and
DAE printed its 2025 note at 230bp over 205bp over Treasuries on the new 2061, h%XISTINGûLONG
ENDû$OM2EPûTRADESûAROUNDû
Treasuries and the 2028 bond at 275bp over though the two parts came 15bp and 20bp 5.5% so this will come inside of that. Not to
Treasuries. Initial levels were 260bp area below initial price thoughts, respectively. MENTIONûTHATûIFûPRICEDûATûPAR ûIT SûGOINGûTOûBEû
and 310bp area respectively. much lower-priced than [the] existing long-
“There is a bit of price sensitivity given END vûSAIDûAû5+ûINVESTORûLOOKINGûTOûBUYûTHEû
Pricing comparables have historically included THEûMARKETûVOLATILITY vûSAIDûANûINVESTORû SOVEREIGN SûNEWû
YEAR
ICD as well as other credits in the airline leasing FOLLOWINGûTHEûDEALûLASTûWEEK
SECTOR ûINCLUDINGû!ERCAPûANDû!IRû,EASE û$!% Sû &AIRûVALUEûFORûTHEû
YEARûWASûSEENûAROUNDû
SUKUKûISSUEûALSOûOFFEREDûAûREFERENCEûPOINT The 10-year Treasury yield had climbed to 5.125%–5.25%, and for the tap under 4%, said
around 1.15% on Tuesday from below 1% at ANûANALYSTûLOOKINGûATûTHEûDEAL
4HEûLEADûSAWûTHEûlNALûLEVELSûASûCOMINGû the start of the month.
around 5bp to 10bp inside fair value. Pricing levels for the tap at 3.875% offer a
3TILL ûTHEûNEWû
YEARûOFFERINGûMARKEDûTHEû slight premium to where the notes were
Goldman Sachs and Morgan Stanley were active SOVEREIGN SûLONGESTûDOLLARûPAPERûTOûDATE û TRADINGûINûTHEûSECONDARYûMARKETûATû ûASû
BOOKRUNNERS ûCredit Agricole, Emirates NBD 5NTILûLASTûWEEKû#OLOMBIAûHADûONLYûISSUEDûUPû OFûLASTû4UESDAY SûCLOSE ûACCORDINGûTOû
Capital, Fifth Third Securities, HSBC, JP Morgan, to 30-year bonds. Its 4.125% May 2051, -ARKET!XESS û
Mizuho Securities, Natixis and Truist Securities were previously its longest dated bond, was issued
BOOKRUNNERSûANDûLEADûMANAGERS û last June and closed at 215bp over Treasuries &AIRûVALUEûFORûTHEûNEWû
YEARûWASûBEINGû
for a 3.80% yield last Tuesday, according to PLACEDûBETWEENûTHEûSOVEREIGN Sû ûANDû
AMERICAS 2ElNITIVûDATA 2044 notes, which were trading at yields of
4.067% and 5.5% respectively in the
BRAZIL 4HEûDEALûCAMEûAMIDûAûMIXEDûOUTLOOKûONû SECONDARYûMARKETûASûOFû7EDNESDAY û
the country given its many macroeconomic -ARKET!XESSûSHOWED
AMAGGI PREPS SUSTAINABILITY NOTE hurdles.
The Caribbean nation faces economic
Brazilian commodities company AMAGGI has There are fears of further shutdowns as RISKSûGIVENûTHEûIMPACTûOFû#OVID
ûONû
NAMEDûBANKSûAHEADûOFûISSUINGûAû Covid-19 cases continue to rise, and the ALREADYûWEAKûlSCALûANDûEXTERNALûPROlLES
sustainability bond. impact these might have on the economy. In
ADDITION ûHIGHûDEBTûLEVELSûANDûlSCALûDElCITSû “Nobody feels comfortable with the credit
BNP Paribas, Bradesco, Citigroup, Itau, JP have fuelled worries of a possible loss of its long-term,” said an analyst following the deal.
Morgan, Rabobank, Santander and UBS are Baa2/BBB–/BBB– investment-grade ratings.
leading the transaction, which is expected Still, it remains one of the most liquid
TOûCOMPRISEûAû ! 2EGû3û53ûDOLLARûSENIORû “I believe the authorities are doing what credits in the region and also draws investor
unsecured bond. THEYûCANûTOûGETûTHEûCOUNTRYûBACKûONûITSûFEETû attention as one of the higher-yielding names.
in a coherent way and oil prices have
Investor meetings on the new deal began positively been moving higher, but they h$OM2EPûHASûBEENûONEûOFûTHEûMOREû
on January 15. Amaggi is rated Ba3/BB. CONTINUEûTOûFACEûSIGNIlCANTûHURDLES vûSAIDû WIDELYûTRADEDûINûTHEûNON
)'ûWORLD û)T SûSUPERû
!ARONû'IFFORD ûANûEMERGINGûMARKETû liquid,” the analyst said.
COLOMBIA SOVEREIGNûCREDITûANALYSTûATû4 û2OWEû0RICE
Citigroup and JP Morgan were the leads.
SOVEREIGN SELLS FIRST 40-YEAR NOTE h0LANSûFORûADDRESSINGû#OLOMBIA SûLARGEû
DESPITE RATES UNCERTAINTY lSCALûDElCITûANDûGROWINGûDEBTûSTOCKûTHROUGHû MEXICO
a tax reform have also had to be accelerated
COLOMBIA raised US$2.09bn with a two-part deal in light of concerns of the country losing its SOVEREIGN RETURNS TO EURO MARKETS
last Tuesday that included a 40-year note, its investment-grade rating.” WITH EURO LM
longest dated bond offering, though uncertainties
)Nû/CTOBER û3 0ûAFlRMEDûTHEûSOVEREIGN Sû"""nû MEXICOûWASûBACKûINûTHEûINTERNATIONALû
RATINGûWITHûAûNEGATIVEûOUTLOOK ûCITINGûAû MARKETûONû4HURSDAYûWITHûõ BNûINûFRESHû
DOWNGRADEûRISKûDUEûTOûhPOTENTIALLYûLOWûECONOMICû funding through a two-part euro offering
GROWTHûANDûINADEQUATEûlSCALûADJUSTMENTv FOLLOWINGûITSû&ORMOSAûDEBUTûEARLIERûTHISû
month.
Proceeds of new deal will be used in part
TOûFUNDûAûBUYBACKûOFûSOMEûOFûTHEûSOVEREIGN Sû
short-dated debt, including its 2021s, 2024s,
2026s and 2027 notes.
International Financing Review January 16 2021 67
The sovereign landed a €1bn 1.45% 2033 -EXICOûWASûLASTûINûTHEûEUROûMARKETûINû American DCM at Deutsche Bank, a joint
note, pricing the deal at 97.427 with a September when it raised €750m via a BOOKRUNNERûONûTHEû&ORMOSAûBONDûSALEû
spread of 180bp over mid-swaps to yield 1.135% seven-year SDG note. alongside Goldman Sachs, HSBC and Morgan
1.676%. It also sold an €800m 2.125% 2051 Stanley.
at 92.756 at a spread of plus 245bp to yield 0ARTûOFûTHEûPROCEEDSûOFû4HURSDAY SûDEALû
2.464%. The sovereign is also running a could go towards a recent tender for some 9ORIOûSAIDûADDITIONALû&ORMOSAûDEALSûWEREû
tender exercise. of its short and medium-dated debt, UNLIKELYûTHISûYEAR ûBUTûTHEûSOVEREIGNû
including its 2024-2045 notes. intends to be a recurring issuer.
The deal drew around €7bn of demand
across the two tranches, according to two Banco Santander, Barclays, BNP Paribas and REGIONAL
sources. Citigroup led the SEC-registered deal.
TECHNICALS DRIVE HEAVY TIGHTENING
Pricing on the bonds tightened LIABILITY MANAGEMENT AND SDG ON CORPORATES
considerably from earlier in the day when ON MEXICO’S 2021 AGENDA
INITIALûPRICEûTALKûPLACEDûTHEû
YEARûATû -ARKETûTECHNICALSûWEREûBEINGûCITEDûASû
around 210bp area over and the 30-year at MEXICO will focus on cleaning up its curve PUSHINGûSIGNIlCANTûTIGHTENINGûONûTHEû
270bp area over. this year along with issuing additional THREEû,ATINû!MERICANûCORPORATEûDEALSûINû
sustainability bond transactions, the THEûMARKETûLASTû4HURSDAY
-EXICO SûEUROû û SûWEREû COUNTRY SûDEPUTYûlNANCEûMINISTERû'ABRIELû
trading at a bid yield of around 1.436%, 9ORIOûTOLDû)&2 In an active day for primary issuance,
while its 3% euro 2045s were at 2.35%, as of Chilean telco WOM, Brazilian transportation
4HURSDAY ûACCORDINGûTOû2ElNITIVûDATA û The sovereign, fresh off a successful company SIMPAR, and Brazilian food
offering investors a small new issue &ORMOSAûDEAL ûRETURNEDûTOûTHEû processor MARFRIG, all sold deals that saw
premium. INTERNATIONALûBONDûMARKETSûLASTûWEEKûWITHû heavy tightening from initial price
new euro liability management operation, thoughts to pricing, with WOM shaving as
“[The operation] went extremely well. raising €1.8bn of new cash in the process. much as 80bp off.
&ORMOSAûANDûEUROSûAREûTWOûCOMPLETELYû
DIFFERENTûANDûNON
COMPETINGûPOCKETSûOFû There are also plans for a yen 7/-û " " ""n ûSOLDûAû53 Mû û
demand. UMS was very well received in both TRANSACTIONûINû ûWHICHûISûLIKELYûTOûBEûAû 2028 bond, which was tightened from its
MARKETS vûSAIDûAûBANKERûCLOSEûTOûTHEûDEAL 3USTAINABLEû$EVELOPMENTû'OALû 3$' ûBOND û LOW MIDû ûINITIALûPRICEûTALKûTOûITSûlNALû
following its US dollar and euro ûYIELD û4HEûDEALûWASûAROUNDûlVEûTIMESû
-EXICOûMADEûITSûDEBUTûINûTHEû&ORMOSAû transactions in the format last September, covered, said a source.
MARKETûINûTHEûlRSTûWEEKûOFûTHEûYEARû Yorio said.
through a US$3bn 2071 bond at 3.75%. "OTHû3IMPARû ""n ""n ûANDû-ARFRIGû ""n
That deal covered around 35% of its Mexico has an outstanding yen 0.70% "" ûALSOûSAWûABOUTû BPûINûPRICEûTIGHTENINGû
lNANCIALûISSUANCEûREQUIREMENTSûINûFOREIGNû June 2021 coming due, according to from initial levels.
currency. 2ElNITIVûDATA
3IMPARûSOLDûAûSUSTAINABILITY
LINKEDû
-EXICOûISûLIKELYûTOûRETURNûTOû At least part of the new yen bond deal US$625m 5.2% 2031 note at 5.2% from high
INTERNATIONALûMARKETSûWITHûMOREûLIABILITYû could include an SDG tranche, said Yorio, 5s. Marfrig landed its US$1.5bn 2031 at
management and is expected to issue a GIVENûTHEûDEMANDûFORûTHEûCOUNTRY Sû3$'û 3.95% from low to mid 4%s.
Samurai deal later this year, which may FRAMEWORKûDURINGûAûNON
DEALûROADSHOWû
include a sustainable development goal with investors in December. “All three deals have been quite
tranche. AGGRESSIVEûINûHOWûMUCHûTHEYûTOOKûOUTûOFû
h4HEûFEEDBACKûWEûRECEIVEDûFROMûTHEû )04S vûSAIDû/MOTUNDEû,AWAL ûHEADûOFûTHEû
Still, some investors were impressed by 3AMURAIûMARKETûWASûVERYûGOODûANDû EMERGINGûMARKETSûCORPORATEûDEBTûGROUPûATû
THEûQUICKûSUCCESSIONûOFûTHEûTRANSACTIONS [investors] seemed very interested in Barings.
buying the notes,” he said.
h4HEYûAREûMAKINGûVERYûGOODûPROGRESSû h)T SûPARTLYûTECHNICAL û/URûASSETûCLASSûHASû
WITHûTHEIRûlNANCINGûPLAN û7E REûNOTûEVENû ,IABILITYûMANAGEMENTûWILLûALSOûBEû HADûINmOWSûFORûSEVERALûWEEKS û4HEREûAREû
HALFWAYûTHROUGHû*ANUARYûANDûTHEY VEû favoured in 2021 over adding incremental people sitting on cash,” she added,
issued twice,” said a UK-based investor who new debt and was among the reasons the highlighting that investors are eager to put
WASûLOOKINGûTOûPARTICIPATEûINûTHEû SOVEREIGNûEMBARKEDûONûITSûlRSTû&ORMOSAûATû CASHûTOûWORK û
transaction. the start of the year with a US$3bn 2071
bond. The region saw upwards of US$10bn in
ALL INTL EMERGING MARKETS BONDS ISSUANCEûFROMûBORROWERSûLASTûWEEKûWITHûAû
BOOKRUNNERS: 1/1/2021 TO DATE h7EûTAPPEDûTHEû&ORMOSAûMARKETû good portion of those issuers comprising
because we want to be very active SOVEREIGNS ûlNANCIALS ûANDû"RAZILIANû
Latin America No of Total Share conducting liability management corporates.
issues US$(m) (%) transactions,” said Yorio. The sovereign
Managing WASûALSOûLOOKINGûTOûTAKEûADVANTAGEûOFûTHEû “Many people are overweight Brazil and
bank or group low interest rate environment, he added. WHENûYOUûGETûAûNAMEûLIKEû7/- ûWHICHû
HADûTHEûBESTûBOOKSû;ONû4HURSDAY= ûITûMAKESû
1 Goldman Sachs 5 1,270.64 14.4 4HEûDEBUTû&ORMOSAûWASûWELLûRECEIVED û INVESTORSûEXCITED vûSAIDû,AWAL
2 Morgan Stanley 2 833.33 9.5 HELPINGûTOûDIVERSIFYû-EXICO SûINVESTORûBASE
3 HSBC 1 750.00 8.5 "OOKSûONû3IMPARûWEREûAROUNDû53 BNû
4 Deutsche Bank 1 750.00 8.5 The 50-year bond drew over US$750m of on its US$625m deal, while Marfrig saw
5 JP Morgan 5 697.72 7.9 demand through reverse enquiry before around US$2.2bn on its bond, said sources.
6 Citigroup 5 688.01 7.8 THEûDEALûWASûANNOUNCED ûWITHûBOOKSû
7 BNP Paribas 3 563.75 6.4 eventually reaching US$10bn. ,ASTûWEEKûWASûAûVERYûHEAVYûWEEKûOFû
8 Credit Agricole 4 477.25 5.4 issuance with 10 borrowers stepping into
9 Santander 3 426.62 4.8 h)ûTHINKûTHEYûHAVEûAûGREATûOPPORTUNITYûINû THEûINTERNATIONALûMARKETûINCLUDINGû
10 Bank of America 3 395.91 4.5 OTHERûCURRENCIES ûTHEYûMAYûLOOKûATûTHOSEû COLOMBIA, MEXICO, THE DOMINICAN REPUBLIC, ITAU,
9 8,805.92 lRST ûANDûASûTHEYûCOMEûBACKûTOûDOLLARS ûTHISû NUEVA ELEKTRA DEL MILENIO, CREDITOR REAL, WOM,
Total ;&ORMOSA=ûISûANOTHERûARROWûINûTHEIRûQUIVER vû SIMPAR, MARFRIG and FS AGRISOLUTIONS.
SDC code: L3 SAIDû*AKEû'EARHART ûHEADûOFûEMERGINGû
Excluding equity-related debt. MARKETSûDEBTûSYNDICATEûANDû,ATINû
Source: Refinitiv
68 International Financing Review January 16 2021
LOANS
Australia 70 China 70 Indonesia 71 Taiwan 72 Germany 72
Russia 73 Sweden 74 UK 74 United States 75 Leveraged Loans 77
FRONT STORY ASIA MARKETS
China reins in property loans
New lending caps add to slowdown in syndicated deals for Chinese real estate sector
Some US$19bn of offshore loans for Chinese developers due to mature this year
China’s latest curbs on bank lending to market in 2020, including US$12bn turn to the bond market, which is not
the property sector are set to weigh on an after the announcement of the restricted by the new rules.
already slowing market and drive restrictions in August, according to
developers to raise funds through bonds 2ElNITIVû,0#ûDATA International investors remain
instead. hungry for exposure to the real estate
Total volume has declined 15.6% and sector despite regulatory moves to rein
On December 31, the People’s Bank of 12.6% from the US$32bn and US$30.9bn in leverage. Some 21 Chinese property
China issued new rules capping banks’ raised in 2019 and 2018, respectively, as developers rushed to the US dollar bond
exposure to the property sector through fundraising activity remained sluggish MARKETûINûTHEûlRSTûWEEKûOFû ûTOûRAISEû
limits on outstanding property loans as a due to the coronavirus pandemic, on top a total of US$7.7bn, according to IFR
proportion of total loans, as well as the of government efforts to curb growing data.
ratio of outstanding mortgages to total debt in the sector.
loans. “I expect more borrowers to
RED LINES tap liquidity from the bond
The move comes after the introduction The new regulations will test the market if the bank market is not
of the so-called “three red lines” in August syndication outcome of a US$480m three- welcoming to them, given that
limiting the ability of a group of property YEARûLOANûFORûREALûESTATEûINVESTMENTûlRMû bond investors are not bound by
developers to take on more debt above DYNASTY HOLDINGûnûTHEûlRSTûLOANûFROMûTHEû the new lending caps”
prescribed debt-to-cash, debt-to-assets and sector to be launched following the
debt-to-equity ratios. The initiative is December announcement. h2ElNANCINGûACTIVITIESûAREûUNLIKELYûTOû
expected to be applied sector-wide. be hugely impacted by the new rules, but
“We prefer to lend to the larger new-money borrowings will be
“We prefer to lend to the larger developers as these borrowers are more challenging for many banks,” said a third
developers as these borrowers capable of quickly adapting to the senior loan banker at a Chinese bank. “I
are more capable of quickly lNANCIALûCRITERIAûOFûTHEûNEWûRULES û7E REû expect more borrowers to tap liquidity
adapting to the financial also reviewing our internal allocation to from the bond market if the bank market
criteria of the new rules. We’re property loans,” said a second Hong Kong- is not welcoming to them, given that
also reviewing our internal based loans banker at a Chinese bank. “In bond investors are not bound by the new
allocation to property loans” the long run, we believe the new rules lending caps.”
will improve the credit structure of
Under the latest rules, property lending banks.” Fitch said on January 8 the impact of
will now be capped at 40% and mortgage these policies will be manageable for the
lending at 32.5% for the six state-owned “It is business as usual for our majority of its rated Chinese home
commercial banks and China institution as we’re nowhere close to the builders, as these companies have
Development Bank. Requirements vary caps. But we do look closely into whether SIGNIlCANTûmEXIBILITYûOVERûTHEIRûCASHû
for smaller banks, with caps being our borrowers step on the ‘three red OUTmOWSûANDûCANûREDUCEûLEVERAGEûBYû
generally lower. LINES vûTHEûlRSTûBANKERûSAID cutting back on land acquisitions,
speeding up pre-sales, or selling assets.
Banks are given a grace period of two to Property lending limits for China
four years to comply with the change. Construction Bank and Bank of China are However, a small number of low-
at approximately 41% and 50% of total churn or highly leveraged home
“Banks that currently exceed the caps loans, respectively, exceeding the new builders may face higher liquidity or
will likely slow their lending to the sector. 40% cap, according to data compiled by RElNANCINGûRISKS ûRESULTINGûINûNEGATIVEû
But this has not come as a surprise to Guosheng Securities. rating pressure.
anyone,” said a Hong Kong-based banker
at a Chinese lender. “Banks have become China Merchants Bank, China Citic The latest regulations could also
much more cautious about their property Bank and Shanghai Pudong Development encourage banks to increase lending to
lending since the introduction of the Bank are among those exceeding the other sectors in order to maintain credit
‘three red lines’ last year.” 27.5% limits for medium-sized banks, the growth, Fitch said.
data show. Apple Li
Chinese developers raised Additional reporting by Evelynn Lin
approximately US$27bn combined BOND SURGE
from the offshore syndicated loan With approximately US$19bn of offshore
loans for Chinese developers due to
mature this year, bankers believe that the
bulk of borrowers from the sector will
International Financing Review January 16 2021 69
ASIA-PACIFIC 4HEûSECURITYûPACKAGEûINCLUDESûlRSTû co-investors, remains unchanged from the
ranking registered real property mortgages initial investment.
AUSTRALIA over all freehold properties within the
PORTFOLIOûANDûALLûASSETSûOFûTHEû2%)4 ûAMONGû The latest stake purchase is expected to
DOZEN LEND FOR CURTIS STAKE BUY others. CLOSEûINûTHEûlRSTûHALFûOFû ûSUBJECTûTOû
regulatory approvals.
A dozen banks are arranging a loan of about The responsible entity, HMC Funds
US$2bn to back GLOBAL INFRASTRUCTURE Management, a wholly owned subsidiary Vivendi said it planned to use proceeds
PARTNERS’ acquisition of a minority interest of HomeCo, will have responsibility for FROMûTHESEûTRANSACTIONSûTOûCUTûITSûlNANCIALû
INû1UEENSLANDû#URTISû,.'ûFACILITIES the governance and oversight of DEBTûANDûTOûlNANCEûSHAREûBUYBACKSûANDû
operations. acquisitions.
ANZ, Bank of China, BNP Paribas,
Commonwealth Bank of Australia, HSBC, Industrial (OME#Oû$AILYû.EEDSû2%)4ûCOMPLETEDûANû Tencent funded the initial stake purchase
and Commercial Bank of China, Mizuho Bank, !USTRALIANû3ECURITIESû%XCHANGEû)0/ûINû THROUGHûAûõ MûlVE
YEARûCLUBûLOANûFROMû
MUFG, National Australia Bank, Societe Generale, .OVEMBER the same bank group.
Standard Chartered and SMBC are the lenders.
VIRTUS HEALTH EXTENDS LOAN In August 2019, Tencent signed a
In December, QGC Common Facilities, a 53 BNûlVE
YEARûFACILITY ûITSûLARGESTû
wholly owned subsidiary of Royal Dutch VIRTUS HEALTH has extended its existing three- offshore loan, with nine banks participating.
Shell, announced it had agreed to the sale of year loans of A$92m by two years.
Aû ûINTERESTûINûTHEû1#,.'ûCOMMONû Hong Kong-listed Tencent, best known for
facilities to GIP for US$2.5bn. The maturity extension from October its WeChat mobile app, is rated A1/A+/A+.
2021 to October 2023 aligns it with that of
The transaction is expected to close in the ITSûEXISTINGû! MûlVE
YEARûLOAN ûANDûWASû ZHONGYU GAS LIFTS LOAN
lRSTûHALFûOFû ûSUBJECTûTOûREGULATORYû completed on terms and conditions that are
approval in Australia and customary substantially the same. Hong Kong-listed ZHONGYU GAS HOLDINGS has
conditions. further increased a three-year loan to
The latest move follows an amendment in US$439m after one more bank joined the
Upon completion, Shell will remain May last year when banks allowed the deal.
majority owner and operator of the company to adjust its earnings to exclude
FACILITIES ûWHICHûINCLUDEû,.'ûSTORAGEûTANKS û THEûlNANCIALûIMPACTûOFûTHEûCORONAVIRUSû Ping An Bank is the latest lender to come
jetties and operations infrastructure that pandemic when assessing its net debt to- in with US$30m, four months after the loan
SERVICEû1#,.' Sû,.'ûTRAINS ûACCORDINGûTOûAû %BITDAûCOVENANTûUNTILû*UNEû was increased to US$409m from an original
media release on December 21. US$300m target.
At April 30, the company had A$173m
Shell’s remaining 73.75% interest aligns loans and A$5.2m in guarantees drawn, with Ten lenders had committed in general
WITHûITSûSTAKEûINûTHEûOVERALLû1#,.'ûVENTURE û A$84.8m available. syndication then.
WHICHûCOUNTSû#HINAû.ATIONALû/FFSHOREû/ILû
Corp (50% in train 1) and Tokyo Gas Co (2.5% Virtus is one of world’s largest assisted Bank of China (Hong Kong), China Citic Bank
in train 2) as the other shareholders. reproductive services providers. International, Hang Seng Bank and HSBC were
the mandated lead arrangers and
HOMECO DAILY NEEDS REIT UPPED CHINA bookrunners of the transaction.
HOMECO DAILY NEEDS REIT has increased a three- QUINTET STRINGS TENCENT LOAN The loan offered top-level all-in pricing of
year senior loan to A$500m from A$400m. 215bp via an interest margin of 180bp over
Five banks are lending €1.3bn to fund ,IBORûANDûAû BPûFEE
ANZ, the sole mandated lead arranger, Chinese tech giant TENCENT HOLDINGS’ planned
underwriter and bookrunner, pre-funded purchase of an additional 10% stake in US 0ROCEEDSûAREûFORûRElNANCINGûANDûGENERALû
the deal, which is split into a A$275m term music entertainment company Universal corporate purposes.
loan piece and a A$225m revolving credit Music Group.
tranche. Zhongyu Gas builds and manages gas
4HEûlVEûUNDERWRITERSûONûTHEûCLUBûLOANûAREû pipeline infrastructure projects and
The loan attracted Goldman Sachs, Bank of America, Bank of China, HSBC, Industrial distributes natural gas in China. Hong
Macquarie Bank, National Australia Bank and and Commercial Bank of China (Asia) and Morgan Kong-listed China Gas Holdings, which
Westpac in general syndication. Stanley. is about 24%-owned by Beijing
%NTERPRISESû'ROUP ûHOLDSûABOUTû ûOFû
One or two more lenders may join the On December 18, Tencent announced that the borrower.
increased facility. a consortium it leads had exercised a call
option to acquire an additional 10% stake in ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY
The term loan piece will fund general UMG, home to Taylor Swift and The Beatles,
corporate purposes, including expenses from parent French media conglomerate SYNDICATED VOLUME (INCLUDING JAPAN)
associated with the establishment of Vivendi. BOOKRUNNERS: 1/1/2021 TO DATE
(OME#Oû$AILYû.EEDSû2%)4 ûPRE
PAYMENTûOFû
part of existing debt of Home Consortium The consortium had the option to acquire Managing No of Total Share
(HomeCo) and property acquisitions. the additional stake until January 15 on the bank or group issues US$(m) (%)
same valuation basis as that for the initial
The revolver will go towards capital 10% investment in UMG completed in March 1 Bank of East Asia 1 337.27 29.3
expenditure, acquisitions and general last year.
corporate purposes. 2 China Merchants Bk 1 259.70 22.6
That deal represented an enterprise value
Covenants include an interest coverage of €30bn for 100% of UMG’s share capital. 3 Citic 1 180.57 15.7
ratio greater than 2.0x and loan-to-value
ratio no greater than 50%. The composition of the consortium 4 Land Bk of Taiwan 2 78.01 6.8
members, which includes Tencent
-USICû%NTERTAINMENTûANDûOTHERûlNANCIALû 5 Mega Finl Hldg 1 71.00 6.2
6 Chang Hwa Coml Bk 1 53.51 4.6
7 MUFG 3 42.44 3.7
8 Malayan Banking 1 40.00 3.5
9 Mizuho 1 40.00 3.5
10 Taiwan Coop Finl Hldg 1 24.50 2.1
Total 9 1,151.50
Proportional credit SDC code: S3a
Source: Refinitiv
70 International Financing Review January 16 2021
LOANS ASIA-PACIFIC
DYNASTY BUILDS US$480m LOAN year loan, returning to the syndicated loans MINSHENG LEASING NETS US$290m
market after eight years.
Property developer DYNASTY HOLDING has -INSHENGû&INANCIALû,EASINGûHASûRAISEDûAû
launched its up to US$480m-equivalent Bank of China, Citigroup and Deutsche 53 MûTHREE
YEARûNEW
MONEYûlNANCINGû
three-year dual-tranche term loan into Bank are the mandated lead arrangers from seven banks.
limited syndication. ANDûBOOKRUNNERSûOFûTHEûlNANCING û
which offers an interest margin of Credit Suisse was the mandated lead
CMB Wing Lung Bank is the mandated lead BPûOVERû,IBORûANDûHASûANûAVERAGEûLIFEû arranger and bookrunner of the transaction,
arranger and bookrunner of the transaction, of 2.94 years. which offers an interest margin of 120bp
which comprises a US dollar tranche and a OVERû,IBOR
Hong Kong dollar portion. Banks can join with US$50m or above
FORûTHEû-,!ûTITLEûANDûAûTOP
LEVELûALL
INû Mandated lead arrangers are China
The US dollar tranche offers an interest pricing of 203.81bp via a 60bp upfront fee Everbright Bank, China Guangfa Bank, Hua Xia
MARGINûOFû BPûOVERû,IBOR ûWHILEûTHEû(ONGû and a 10bp early-bird fee, tickets of Bank, Bank of Communications and China
Kong dollar portion pays 240bp over Hibor. US$30m–$49m for the lead arranger title Zheshang Bank. Arranger is Fubon Bank.
and an all-in of 200.41bp via a 50bp fee,
&UNDSûAREûFORûRElNANCINGûANDûGENERALû and tickets of US$15m–$29m for the -INSHENGû&INANCIALû,EASINGûISûTHEû
corporate purposes. arranger title and an all-in of 195.31bp via guarantor and its wholly owned unit
a 35bp fee. MINSHENG HONG KONG INTERNATIONAL LEASING is
Dynasty Holding is a wholly owned the borrower.
subsidiary of SZITIC Commercial Property Fufeng Group’s previous visit to the
(Group), whose direct and indirect interests MARKETûWASûINû.OVEMBERû ûWITHûAû Funds are for general corporate purposes.
are owned by China Vanke. US$150m three-year loan obtained from 12 China Minsheng Bank is a major
lenders. That deal offered a top-level all-in SHAREHOLDERûOFû-INSHENGû&INANCIALû,EASING û
SCPG and certain subsidiaries of the pricing of 460bp. which mainly engages in aircraft leasing,
borrower are the guarantors. ship chartering, marine engineering and
The company produces food additives, medical equipment leasing.
BEIJING ENTERPRISES PAYS UP including MSG and starch sweeteners, as
well as animal feed products. INDONESIA
Hong Kong-listed BEIJING ENTERPRISES CLEAN
ENERGY GROUP launched a US$150m three- YANKUANG RAISES US$300m FIRST RESOURCES LAUNCHES SLL
YEARûLOANûFORûRElNANCING ûOFFERINGûRICHERû
pricing than another borrowing of the same YANKUANG GROUP (HONG KONG), a unit of Chinese Palm oil producer FIRST RESOURCES has
size it completed last August. coal miner Yankuang Group, has raised a launched a debut US$150m-equivalent
US$300m three-year term loan from four sustainability-linked loan into general
Credit Agricole CIB is the sole mandated lenders. syndication.
lead arranger and bookrunner of the latest
transaction, which offers an interest margin Mandated lead arrangers and SMBC and United Overseas Bank are the
OFû BPûOVERû,IBOR bookrunners Ping An Bank, Bank of mandated lead arrangers and bookrunners.
Communications and China Citic Bank SMBC is also the facility agent and
-,!SûJOININGûWITHû53 MûORûABOVEû International provided US$80m, US$75m and sustainability coordinator.
receive a top-level all-in pricing of 207.5bp, US$75m, respectively, while Industrial Bank
while lead arrangers with US$25m–$39m JOINEDûASû-,!ûWITHû53 M .OûDETAILSûWEREûAVAILABLEûONûTHEûNATUREûOFû
earn an all-in pricing of 202.5bp. Arrangers the sustainability targets linked to the loan.
taking US$10m–$24m receive an all-in The deal offers an interest margin of
pricing of 197.5bp. BPûOVERû,IBOR 4HEûlVE
YEARûUNDERWRITTENûDEALûCOMPRISESû
a US dollar Tranche A and a yen Tranche B,
"EIJINGû%NTERPRISESû#LEANû%NERGYû'ROUP Sû &UNDSûAREûFORûRElNANCINGûPURPOSES and has an average life of 3.48 years.
PARENTûCOMPANY û"EIJINGû%NTERPRISESû7ATERû Shandong-based Yankuang Group engages
Group, is providing a letter of comfort to the in coal mining & sales, coal chemical The US dollar portion pays an opening
facility. industry, power generation & aluminum INTERESTûMARGINûOFû BPûOVERû,IBOR ûWHILEûTHEû
production and machinery manufacturing. YENûTRANCHEûOFFERSûAûlXEDûRATEûOFû BP û4HEû
Proceeds will be for general corporate margin will be adjusted based on the borrower’s
PURPOSESûANDûRElNANCING CHINA OCEANWIDE ATTRACTS FOUR performance on sustainability metrics.
,ASTû!UGUST ûTHEûBORROWERûOBTAINEDûAû (ONGû+ONG
LISTEDûPROPERTYûANDûENERGYûlRMû -,!SûJOININGûWITHû53 MûORûABOVEû
53 MûTHREE
YEARûLOANûFROMûlVEûBANKS û China Oceanwide Holdings has closed a receive a top-level all-in pricing of 136.55bp
including Deutsche Bank as the mandated US$291m two-year loan, after attracting and 75.55bp via a participation fee of 75bp
lead arranger and bookrunner. four lenders in syndication. for tranches A and B, respectively.
That deal offered a top-level all-in pricing China Citic Bank International was the sole ,EADûARRANGERSûWITHû53 Mn MûEARNû
of 181.67bp based on a margin of 155bp mandated lead arranger and bookrunner of an all-in pricing of 131.67bp and 70.67bp via
OVERû,IBOR THEûlNANCING ûWHICHûISûBACKEDûBYûAûSTANDBYû a 58bp fee. Arrangers taking US$10m–$19m
letter of credit from China Citic Bank’s receive an all-in pricing of 126.49bp and
Separately, the borrower raised a HK$1.55bn Shenzhen branch. 65.49bp via a 40bp fee.
three-year club loan in March last year. It
offered a margin of 155bp over Hibor. ,EADûARRANGERSûAREûChina Everbright Bank &UNDSûAREûFORûRElNANCINGûANDûGENERALû
and Fubon Bank. Managers are Banco working capital purposes.
,ISTEDûINû(ONGû+ONG û"EIJINGû%NTERPRISESû Commercial Portugues and CTBC Bank.
#LEANû%NERGYû'ROUPûISûAûPRODUCERûANDû ASTRA SEDAYA RETURNS FOR CLUB
distributor of renewable energy. Its ultimate It offers an interest margin of 185bp over
PARENTûISû"EIJINGû%NTERPRISESû'ROUP ûWHICHûISû ,IBOR û ASTRA SEDAYA FINANCE is sounding the market
owned by Beijing’s municipal government. FORûAûlNANCINGûWITHûTERMSûSIMILARûTOûAû
China Oceanwide subsidiary ORIENTAL US$200m three-year club loan signed in
FUFENG RETURNS AFTER EIGHT YEARS RAINBOW is the borrower. 2019.
Hong Kong-listed food additives producer 0ROCEEDSûWILLûBEûFORûRElNANCING
FUFENG GROUP is seeking a US$150m three-
International Financing Review January 16 2021 71
The total facility size of the self-arranged purchase of a petroleum products import -,!SûJOININGûWITHûCOMMITMENTSûOFû
DEALûHASûNOTûBEENûlNALISED û3IGNINGûISûSLATEDû storage facility in the Philippines. 53 MûANDû.4 MûORûMOREûWILLûRECEIVEû
for mid-February. an upfront fee of 15bp, while co-arrangers
Clifford Capital, DBS Bank and Natixis plan to COMMITTINGû53 Mn MûANDû.4 Mn
!.: û"ANKûOFû#HINA û".0û0ARIBAS û launch the six-year loan into general $699m earn a 8bp fee.
Citigroup, DBS Bank, HSBC, Korea syndication this month.
Development Bank, OCBC Bank and ACE WORLD INVESTMENT and ASIA CROWN
Standard Chartered Bank were the lenders 4HEûlNANCINGûCOMPRISESûAû53 MûTERMû ENTERPRISE are the borrowers on the US
ONûTHEû ûlNANCING û loan for the acquisition of Philippine Tank dollar tranches. The two Samoa-
Storage International and a US$60m incorporated units are stakeholders in
4HATûYEAR ûTHEûBORROWER ûTHEûAUTOûlNANCEû revolving credit facility. .INGBOû(UNGû4AIû0ROPERTYû$EVELOPMENT û
unit of Astra International, also completed a Hung Tai’s subsidiary in China.
US$242m three-year syndicated loan, which The senior secured term loan would be
was targeted at Japanese lenders. non-recourse to Keppel Infrastructure Trust HUNG NAN ENTERPRISE CORP and YU LIN
ANDûPARTLYûUSEDûTOûRElNANCEûTHEûDEBTûATûTHEû ENTERPRISE CORPûAREûTHEûBORROWERSûONûTHEû.4û
Mizuho Bank, MUFG and SMBC were the target, according to a stock exchange dollar tranches.
mandated lead arrangers and bookrunners disclosure from Keppel Infrastructure Trust
of the amortising deal, which attracted nine on December 8. &UNDSûAREûTOûRElNANCEûAû53 M
others in syndication. equivalent three-year loan which was signed
Keppel Infrastructure Trust will also fund in August 2018, as well as to fund working
The transaction, launched at a US$105m the acquisition with cash and a two-year capital and other debt requirements.
size, paid top-level all-in pricing of 98bp recourse bridge loan.
(offshore) and 104bp (onshore) based on The latest loan follows another rare
interest margins of 73bp (offshore) and 80bp Keppel and MPIC agreed in December to TAIFX-based borrowing of US$176m for Ju
ONSHORE ûOVERû,IBOR û acquire 100% of PTSI for an estimated price Teng International Holdings completed in
of US$333.8m, to be payable in accordance December. That loan offers a margin of
The borrower has a US$100m three-year with their respective shareholdings of 80% 100bp over TAIFX.
club loan and a US$380m three-year and 20% in the target.
SYNDICATEDûlNANCINGûMATURINGûINû*UNEûANDû EUROPE/MIDDLE
July, respectively. They are buying PTSI from Macquarie EAST/AFRICA
Group, Government Service Insurance
Astra Sedaya is rated Baa2/BBB (Moody’s/ System, the Asian Development Bank, and GERMANY
Fitch). ,ANGOERû)NVESTMENTSû(OLDING ûANûENTITYû
controlled by Dutch pension fund APG. BILFINGER NETS €250m RCF
MALAYSIA
The sellers had invested in PTSI via )NDUSTRIALûSERVICESûlRMûBILFINGER has agreed a
EPF OBTAINS £800m REFI Macquarie-managed Philippine Investment €250m syndicated revolving credit facility.
Alliance for Infrastructure Fund.
State-owned EMPLOYEES PROVIDENT FUND OF 4HEûlNANCINGûISûBEINGûPROVIDEDûBYû
MALAYSIAûCOMPLETEDûAûa MûlVE
YEARûLOANû PTSI owns Philippine Coastal Storage & Raiffeisen Bank International, SEB and UniCredit
after attracting six lenders. Pipeline Corp, which is the largest along with BNP Paribas, Commerzbank,
independent petroleum storage facility in Deutsche Bank, HSBC, LBBW and Helaba.
Bank of China (Hong Kong), DBS Bank, MUFG, the Philippines with a capacity of
OCBC Bank, Standard Chartered and United approximately 6m barrels. Hengeler Mueller advised the banks.
Overseas Bank are the lenders of the deal, "ILlNGERûSIGNEDûAûõ MûlVE
YEARûCREDITû
which closed as a club. TAIWAN facility in June 2017 via the same group of banks.
The company is looking to book an over
StanChart was the coordinating bank. HUNG TAI RETURNS FOR US$330m õ MûCAPITALûGAINûONû%14 Sûõ BNûSALEûOFû
0ROCEEDSûRElNANCEûANûEXISTINGûa Mû its former facilities management unit
lVE
YEARûBULLETûLOANûFROMû&EBRUARYû ûANDû HUNG TAI GROUP has launched a US$330m- !PLEONAûTOûPRIVATEûEQUITYûlRMû0!)û0ARTNERS
also fund general corporate purposes. equivalent three-year facility via its four The sale is expected to be completed in
3TAN#HARTûWASûALSOûTHEû-,!"ûANDû units, in the second transaction based on the second quarter.
coordinator of the 2016 loan, which had Taiwan’s interbank US dollar lending rate in
RElNANCEDûAûa MûlVE
YEARûFACILITYûFROMû recent months. DUSSELDORF AIRPORT NETS REFI
ûTHATûBACKEDû%0& SûPURCHASEûOFû û3PIREû
Healthcare hospitals across the UK. KGI Bank is the mandated lead arranger DUSSELDORF AIRPORT has agreed an extensive
,INKSû"IDCOûISûTHEûBORROWERûOFûTHEûLATESTû and bookrunner of the secured transaction, RElNANCINGûTOûSECUREûITSûLIQUIDITYûINûTHEû
lNANCING ûWHICHûISûFULLYûSECUREDûAGAINSTûTHEû which comprises a US$180m portion and a wake of the Covid-19 crisis, which has
ASSETSûANDûALSOûHASûFULLûRECOURSEûTOû%0& .4 BNû 53 M ûPIECE severely impacted its business.
Spire Healthcare is an independent
hospital group in the UK, operating 39 The US dollar portion is spilt into a 4HEûRElNANCINGûINCLUDESûAûõ MûLOANû
hospitals and eight clinics. US$50m Tranche A1, a US$3m Tranche A2, a provided by several commercial banks
US$120m Tranche B1 and a US$7m Tranche through the infrastructure corona
PHILIPPINES B2. PROGRAMMEûOFûTHEûSTATEûOFû.ORTHû2HINE
7ESTPHALIAûANDû.27û"ANK
KEPPEL-MPIC EYE US$260m LOAN 4HEû.4ûDOLLARûPIECEûCOMPRISESûAû.4 BNû
4RANCHEû#ûANDûAû.4 BNû4RANCHEû$ Repayments on the loan begin in 2023.
Singapore’s KEPPEL INFRASTRUCTURE TRUST and There is also a €117.5m three-year
Philippine conglomerate METRO PACIFIC Tranches A1 and B1 offer interest margins syndicated loan, which has two, one-year
INVESTMENTS CORP have mandated three of 160bp over TAIFX, while Tranches A2 and
LENDERSûONûAû53 MûlNANCINGûFORûTHEû B2 pay 185bp over TAIFX.
Tranches C and D offer a margin of 100bp
OVERû4AIBOR ûWITHûAûPRE
TAXûINTERESTûRATEûmOORû
set at 1.7%.
The deal carries a two-year extension
option.
72 International Financing Review January 16 2021
LOANS EMEA
Schuldschein market eyes recovery in 2021
EUROPE Volume predicted to top €20bn, according to Scope Ratings
The Schuldschein private debt market is face challenges in 2021, especially those in were slow to come back, while very few new
expected to see a modest recovery in 2021 as cyclical and pandemic-impacted sectors, which entrants tested the market.
issuers return to the market after spending could see investors press for wider spreads on
much of 2020 leaning heavily on conventional transactions. The share of non-German issuers
loans and bonds to raise liquidity during the among 2020 SSD issuers dropped to just
Covid-19 crisis, according to a report from The ending of state-backed relief measures 25%, a level not seen since 2015 when the
Scope Ratings. and funding programmes could also ramp up internationalisation of the market accelerated,
pressure on issuers. Scope said.
With SSD refinancing of more than €10bn
expected in 2021, volume is predicted to With prominent defaults and debt Debut issuance in 2020 comprised just 15% of
top €20bn as companies also look to take restructurings likely among SSD issuers, total volume and 13% of overall deals, according
advantage of comparatively low average coupon investors will need to pay even more attention to Scope data.
rates and flexible maturities to diversify funding. to through-the-cycle credit assessment and
continuous monitoring, Scope said. Some SSD investors also scaled back their
“For 2021, we expect the market to return exposure to the segment due to capacity
to growth, driven by more debutant and TOUGH YEAR constraints and refocused on larger-scale debt
international issuers and significant refinancing,” SSD volume reached around €18bn in 2020, segments and loan books.
said Sebastian Zank, analyst at Scope. according to Refinitiv LPC data, down around
35% from around €27.8bn in 2019. However, investor confidence remained
“New year placements are already an high, Scope said, with many deals heavily
encouraging sign of renewed interest from two As companies scrambled to put liquidity oversubscribed and ending up at least twice as
sources: sustainability-focused borrowers and in place as the crisis unfolded they turned to large as the initial launch size.
newcomers to the market.” regular loan and bond markets and away from
the more niche SSD market. German auto supplier BOSCH reopened the
Volkswagen’s commercial vehicle subsidiary SSD market in June, placing a jumbo €2bn SSD.
TRATON has already tapped the market for a Unlike previous financial crises, there was no The deal closed five times oversubscribed and
€400m sustainability-linked SSD, while global loss of confidence in the financial system and was increased from just €500m at launch.
commodity trader TRAFIGURA debuted with a the public bond and syndicated loan markets
€75m financing. remained open. In addition, bond market German private hospitals operator ASKLEPIOS
liquidity was heavily supported by European KLINIKEN issued a €730m SSD in October. The
Austrian cardboard consumer packaging Central Bank bond purchase programmes, transaction closed several times oversubscribed
group MAYR-MELNHOF KARTON is also in the tempting many would-be issuers to the public and was increased from the original target of
market for a debut €300m deal. bond market. €200m.
With a potential pick-up in larger M&A deals After the internationalisation of the SSD Other successes included a SFr450m-
in Europe in 2021 there is scope for more jumbo market stalled in the first half, hopes were equivalent (US$507m) SSD for Swiss cocoa
SSD placements. dashed of a strong rebound in the second half and chocolate product maker BARRY CALLEBAUT,
of the year as issuers from outside of Germany in August and a €500m SSD for German
With the Covid-19 crisis yet to reach a technology group FREUDENBERG in November.
conclusion, some issuers will continue to Alasdair Reilly
EXTENSIONûOPTIONS ûACCORDINGûTOû2ElNITIVû RUSSIA ).'ûWASûFACILITYûAGENTûANDû(3"#ûWASû%3'û
,0#ûDATA coordinator.
SOVCOMBANK BAGS US$350m
The loan was arranged by UniCredit as Sovcombank increased the loan from
bookrunner together with Deutsche SOVCOMBANK has signed a US$350m 53 MûATûLAUNCHûFOLLOWINGûSIGNIlCANTû
Bank, DZ Bank, Helaba, NordLB and syndicated loan facility that includes an oversubscription.
Stadtsparkasse Dusseldorf as mandated environmental, social and governance
lead arrangers. tranche. “This is already the second syndicated
loan that we have arranged with a group of
A €100m subordinated shareholder loan The loan has two tranches with maturities international and Russian investors, but it is
was provided by state capital Dusseldorf and of 12 and 18 months and will be used to OURûlRSTû%3'ûFACILITY vûSAIDû3OVCOMBANKû
Airport Partners in April. lNANCEû3OVCOMBANK SûFOREIGNûTRADEû chairman Dmitry Gusev.
operations, for general corporate purposes
'LEISSû,UTZûPROVIDEDûLEGALûADVICEûTOûTHEû and to expand its Halva buy now, pay later “We are pleased that the loan’s social
AIRPORTûONûTHEûRElNANCING instalment platform. focus and Sovcombank’s high credit
ratings and transparency attracted a
In April, the airport placed a €109m ING coordinated the loan alongside large number of participants, which
3CHULDSCHEINDARLEHEN ûARRANGEDûBYû.ORD,"û UniCredit, Commerzbank, HSBC, Russian made it possible to increase the facility
via the Finpair digital platform. The Regional Development Bank and Rosbank as amount by 75% compared with the
lNANCINGûCLOSEDûOVERSUBSCRIBEDûANDûWASû mandated lead arrangers and bookrunners. amount we had originally planned to
increased from a launch amount of €75m. borrow and to extend the tenor of the
The Eurasian Development Bank and Bank loan,” he said.
Dusseldorf Airport, which is the largest Zenit were mandated lead arrangers with
AIRPORTûINûTHEûSTATEûOFû.ORTHû2HINE
Banca Intesa, Credit Suisse and the International Sovcombank, which is designated a
Westphalia, said in December that the Bank for Economic Co-operation as lead systemically important credit
PANDEMICûHADûSEENûTRAFlCûVOLUMESû arrangers. institution by the Russian central bank,
plummet to a maximum 30% of normal is rated BB by S&P, Ba1 by Moody’s and
levels in 2020, estimating this would rise to BB+ by Fitch.
50% in 2021.
International Financing Review January 16 2021 73
EasyJet follows BA’s flightpath to liquidity
UK Airline’s US$1.87bn loan has government support
European airline EASYJET signed a US$1.87bn expenditure and investments to eligible UK under the Bank of England’s Covid Corporate
five-year term loan backed with a partial companies. Financing Facility.
guarantee from UK Export Finance after BRITISH
AIRWAYS agreed a similar £2bn loan at the end Export sales must represent at least 20% At the end of 2020, British Airways
of 2020. of annual turnover in any one of the last three agreed a £2bn five-year term loan also with
financial years or export sales represent at least a partial guarantee from UKEF as part of
The financing will help easyJet bolster its 5% of annual turnover in each of the last three parent IAG‘s efforts to improve its cashflow
balance sheet during the Covid-19 crisis, which financial years. and liquidity.
has seen travel severely restricted, and could
see other UK-based borrowers make use of the The exporter must be carrying out business The company is looking to take advantage
scheme as they navigate through the pandemic in the UK, either by manufacturing goods in the of an expected partial recovery in demand for
and the complexities of the UK’s withdrawal UK, delivering services from the UK or providing air travel in 2021 after the global roll-out of
from the EU. intangibles from the UK, as well as having vaccines.
premises and employees in the UK.
“In the context of Covid and Brexit, it is BA expects to draw down the facility in
a welcome sign that exporters and service “easyJet has taken swift and decisive action, January after the agreement of final terms with
providers are able to turn to the government having now secured more than £4.5bn in lenders and UKEF.
for some level of support, while the banks are liquidity since the beginning of the pandemic,”
being protected from overexposure to impacted EasyJet CEO Johan Lundgren said. ROLLS-ROYCE and FORD OF BRITAIN also made
sectors,” a senior banker said. use of UKEF guarantees in 2020.
“The loan facility, provided on commercial
The financing, which has been underwritten terms, reflects constructive and collaborative Ford of Britain secured a £625m five-year
by a syndicate of banks, will be secured on work between EasyJet, multiple banks and UK loan in July with a guarantee from UKEF.
aircraft upon drawing and significantly extends Export Finance.” Citigroup coordinated the financing along with
the company’s debt maturity profile, while mandated lead arrangers NatWest, Lloyds and
increasing the level of available liquidity. BOARDING PASS SMBC.
EasyJet said it would now repay and cancel part
The guarantee was issued under UKEF’s of its shorter-term debt, including a fully drawn Aero engine maker Rolls-Royce, which was
Export Development Guarantee scheme, which US$500m revolving credit facility and around hit hard after many of its airline customers
was set up in July to help UK exporters access £400m of term loans. The repayment will free grounded their fleets during government-
high-value loan facilities without the need to be up several aircraft assets on the company’s imposed lockdowns, agreed a £2bn five-year
linked to a specific export contract. balance sheet. term loan in August.
The loan does not carry preferential rates or In April, as it sought to maximise its liquidity That financing comprised a £1.6bn facility
require state aid approval, but contains some during the onset of the crisis, the company guaranteed by UKEF and a £400m commercial
restrictive covenants, including around dividend signed two term loans totalling around £400m facility agreed on the same terms and
payments. secured against some of its aircraft and set to conditions, paying 400bp over Libor.
mature in 2022.
Under the EDG, UKEF can provide a partial The loan was underwritten by JP Morgan,
guarantee covering up to 80% of the risk to The move came after the company had Citigroup, HSBC and Credit Agricole.
lenders for a maximum five-year maturity on fully drawn its US$500m RCF and issued
bank loans for general working capital or capital £600m of short-term commercial paper Rolls-Royce went on to complete a £5bn
recapitalisation plan, including loans, bonds and
a rights issue.
Alasdair Reilly
SWEDEN ISSUANCEûOFûOURûlRSTûõ MûGREENûBOND vû TECHNOLOGYûUNITû4ECHNIPû%NERGIESûANDû
said Volvo Cars CFO Carla de Geyseleer. RElNANCEûDEBT
VOLVO CARS SIGNS €1.3bn SLL
The seven-year green bond was issued in Both companies have secured
VOLVO CARS has signed a €1.3bn sustainability- 3EPTEMBERûVIAûACTIVEûBOOKRUNNERSû".0û COMMITMENTSûFORûlNANCINGSûBACKINGûTHEû
LINKEDûREVOLVINGûCREDITûFACILITY ûRElNANCINGû 0ARIBAS û).'ûANDû3%" separation.
an undrawn RCF signed in 2017.
The RCF was coordinated by Citigroup, 4ECHNIP&-#ûWILLûBEûlNANCEDûTHROUGHûANû
4HEûTHREE
YEARûlNANCING ûWHICHûWILLûBEû HSBC, Nordea and SEB with 21 banks US$850m one-year bridge loan and a US$1bn
used as back-up facility for general participating. The bank group will form three-year secured revolving credit facility,
corporate purposes, has two one-year Volvo Cars’ core relationship bank group provided by JP Morgan, Citigroup, DNB, Societe
extension options and a margin tied to the globally. Generale, SMBC, Wells Fargo, Bank of America,
company’s progress in reducing carbon Standard Chartered and Northern Trust.
emissions. The company has been owned by
Zhejiang Geely Auto Group since 2010. The bridge loan pays an initial margin of
The company aims for half its global car BPûOVERû,IBOR ûINCREASINGûBYû BPûEACHû
sales to be fully electric by the middle of this UK quarter to a cap.
decade and has an ambition to be climate-
neutral by 2040. TECHNIPFMC TAPS FOR SPIN-OFF On maturity, any outstanding bridge loan
WILLûBEûROLLEDûOVERûINTOûAûlVE
YEARûSENIORû
“This new credit facility ... reinforces Global energy services company TECHNIPFMC secured second-lien facility.
Volvo Cars’ commitment to sustainable has lined up around US$3.5bn of loans to
lNANCING ûFOLLOWINGûTHEûRECENTûSUCCESSFULû back the spin-off of its engineering and JP Morgan, Citigroup, DNB, Societe Generale,
SMBC and Wells Fargo are lead arrangers and
bookrunners on the bridge loan. Standard
Chartered is documentation agent.
74 International Financing Review January 16 2021
LOANS NORTH AMERICA
The RCF pays a margin ranging from Pricing is based on the company’s credit Telxius Telecom is a subsidiary of Spain’s
BPn BPûOVERû,IBORûDEPENDINGûONûTOTALû rating. Telefonica with minority stakes also held by
leverage. For under 3.0 times it is 250bp over KKR and Pontegadea.
,IBORûWITHûAû BPûUNDRAWNûFEE ûFORû n û For A2/A/A or higher, the margin is 62.5bp
TIMESûITûISû BPûANDû BP ûANDûFORûOVERû û OVERû,IBORûWITHûAûTICKINGûFEEûOFû BP ûFORû! Telefonica will use proceeds from the sale
times it is 350bp and 25bp. !n !nûITûISû BPûANDû BP ûFORû"AA """ to cut its debt by around €4.6bn.
""" ûITûISû BPûANDû BP ûANDûFORû"AA """
4ECHNIPû%NERGIESûWILLûBEûlNANCEDû BBB or lower it is 112.5bp and 12.5bp. AMG CUTS LOAN, HIKES PRICING
through a €650m bridge loan and a €750m
revolving credit facility arranged by BNP If drawn within 60 days of closing, the Investment management company AFFILIATED
Paribas, Credit Agricole CIB, Societe Generale and OPENINGûPRICEûISû BPûOVERû,IBOR MANAGERS GROUP has reduced the size of its
Standard Chartered as mandated lead Bank of America-arranged term loan to
arrangers and bookrunners. AT&T is offering lower pricing than the US$350m from US$450m, extended the
company’s US$5.5bn around nine-month termination date by three years to January
Under the spin-off, TechnipFMC will term loan it signed in April. That facility, for 18 2026 and agreed to increased pricing.
distribute 50.1% of shares in Technip which Bank of America was administrative
%NERGIESûTOû4ECHNIP&-#ûSHAREHOLDERS û AGENT ûPAIDû BPûOVERû,IBORûANDûHADûBEENû The loan’s amended margin is based on
retaining a 49.9% stake. due to terminate on December 31. the company’s debt rating. For A1/A+/A+ it is
ûBPûOVERû,IBOR ûUPûFROMû BP ûFORû! ! !û
,ONG
TERMû4ECHNIP&-#ûSHAREHOLDERû However, banks are likely to support the ITûISû BPûFROMû BP ûFORû! !
!
ûITûISû BPû
Bpifrance will invest US$200m in Technip borrower’s new loan to maintain FROMû BP ûFORû"AA """ """ ûITûISû
%NERGIESûBYûACQUIRINGûSHARESûFROMû relationships and ancillary business, a BPûFROMû BP ûANDûFORû"AA """ """û
TechnipFMC’s retained stake on top of the banker said. it is 132.5bp from 125bp.
original distribution and become a long-
term reference shareholder in the spin-off. AT&T last tapped the market with a The agreement also includes provisions
53 BNûlVE
YEARûREVOLVINGûCREDITûFACILITYû FORû3/&2ûTOûREPLACEû,IBORûASûTHEûCREDITû
The structure of the spin-off is expected to INû.OVEMBER û0RICINGûRANGESûFROMû BPnû agreement’s reference rate upon cessation
support an investment-grade rating for BPûOVERû,IBORûWITHûAûCOMMITMENTûFEEû OFû,IBOR SûPUBLICATION
TechnipFMC and also allow Technip OFû BPn BP û!4 4 SûROLEûASûAûPROLIlCûBONDû
%NERGIESûTOûATTAINûANûINVESTMENT
GRADEû issuer encouraged banks to lend to that Bank of America is the facility’s
capital structure. facility. administrative agent.
TechnipFMC will retain the group’s public AT&T is rated Baa2 by Moody’s, BBB by The loan was previously amended in
ANDûPRIVATEûDEBTûAPARTûFROMûTHEû%UROPEANû S&P and A– by Fitch. January 2019.
commercial paper programme that will be
RETAINEDûBYû4ECHNIPû%NERGIES AMERICAN TOWER NETS BRIDGE AMG is rated A3 by Moody’s and BBB+ by
S&P.
The separation is expected to be AMERICAN TOWER is backing its around €7.7bn
COMPLETEDûINûTHEûlRSTûQUARTER acquisition of Telxius Telecom’s mobile In September 2020, Moody’s changed its
PHONEûMASTSûDIVISIONûINû%UROPEûANDû,ATINû outlook for the company to negative, stating
In March 2020, TechnipFMC drew America with a €7.5bn fully committed AMG faced investment performance
US$500m from its US$2.5bn RCF in response bridge loan from Bank of America. SHORTFALLSûTHATûHADûCAUSEDûhSIGNIlCANTû
to the Covid-19 crisis. The company has declines in new sales, resulting in net
since repaid the drawn funds. Syndication of the bridge loan is expected BUSINESSûOUTmOWSv ûLEADINGûTOûTHEû
to launch this week. company’s combined revenues declining
The company also agreed a €500m short- about 20% from their peak in 2018.
TERMû2#&ûVIAû(3"# û".0û0ARIBAS û$EUTSCHEû The facility is likely to be taken out by a
Bank, Societe Generale and Standard combination of equity, revolving credit and STERIS TAPS BRIDGE
Chartered as well as setting up a £600m term loans, though that is still to be
commercial paper programme under the lNALISED Healthcare equipment company STERIS is
"ANKûOFû%NGLAND Sû#OVIDû#ORPORATEû backing its US$3.6bn acquisition of infection
Financing Facility in May 2020 to strengthen The acquisition comprises about 31,000 prevention products provider Cantel
its liquidity during the crisis. communications sites in Germany, Spain, Medical with a US$2.1bn fully committed
Brazil, Chile, Peru and Argentina. Under unsecured bridge loan from JP Morgan.
BBB+/Baa2 rated TechnipFMC has the acquisition, American Tower will lease
HEADQUARTERSûINû,ONDONûWITHûOPERATIONALû the towers back to Telxius owner Under the cash-and-stock deal, Steris is
headquarters in Houston and Paris. Telefonica. acquiring Cantel for a total equity value of
around US$3.6bn with a total enterprise
NORTH AMERICA American Tower additionally expects to value of around US$4.6bn, including
spend approximately US$500m to construct Cantel’s net debt and convertible notes.
UNITED STATES a committed pipeline of around 3,300 new
sites in Germany and Brazil until 2025. Steris expects to fund the cash portion of
AT&T SEEKS US$14bn LOAN the transaction with the new debt and repay
The assets are expected to generate AûSIGNIlCANTûAMOUNTûOFû#ANTEL SûDEBT
AT&T has invited banks to join a US$14bn approximately US$775m in property
364-day delayed-draw term loan, led by Bank REVENUEûANDû53 MûINûADJUSTEDû%BITDAûATû The acquisition is expected to close the end
of America, that will be used for general CURRENTûFOREIGNûEXCHANGEûRATESûINûTHEIRûlRSTû OFû3TERIS SûlSCALûlRSTûQUARTERû ûONû*UNEû
corporate purposes. full year in American Tower’s portfolio.
PNR UPS AND AMENDS
The facility features a ticking fee, which American Tower is rated Baa3 by Moody’s
will be applicable 60 days after close. and BBB– by S&P. Oil and gas company PIONEER NATURAL
RESOURCES has agreed an amended credit
4HEûlNANCINGûOFûTHEûTRANSACTIONûISûINûLINEû agreement following the completion of its
with an investment-grade credit rating, US$7.6bn all-stock acquisition of Parsley
American Tower said, although net leverage %NERGY
is expected to temporarily increase above
5.0 times, reducing to a target range of 3.0
times to 5.0 times, over time.
International Financing Review January 16 2021 75
Paycheck Protection Program 2.0 to
boost private credit
US MIDDLE MARKET Several lower middle market lenders are likely to tap into the funds
The US government’s US$284bn Paycheck Loans are forgiven if a company uses 60% in December, renewing the PPP policy
Protection Program has reopened and is of its loan to cover payroll and employees are launched in March as a way to provide relief
expected to aid struggling small and middle not made redundant. The loans have a five-year in the short term for small businesses hit by
market businesses, as well as have wider maturity (two years if issued before June), are the pandemic.
benefits across the private credit market. unsecured, and carry a 1% interest.
The traditional banking sector predominantly
Many non-bank lenders and business The Small Business Administration’s administers the PPP. Until its closure in August,
development companies accessed funding for affiliation rules mean that many sponsor-backed US$525bn of PPP loans were made to small and
their portfolio companies in the first round of companies cannot enter the programme, middle market businesses, according to the US
the PPP in March. Many lower middle market precluding many private credit firms that target Treasury.
lenders are likely to tap the funds again. the market. The wider private credit market is
still expected to benefit from the programme, While non-bank lenders are eligible to
BDCs such as SARATOGA INVESTMENT CORP, however, as the extra liquidity provides stability participate in the PPP, many have not. The
FIDUS INVESTMENT CORP and GLADSTONE CAPITAL across all financial markets. average size of a PPP loan was US$100,000,
CORP reported in their first-quarter earnings SBA figures show, significantly below the
in May that they obtained funding from the “PPP stimulus was a very successful amounts lower middle market target.
programme. One of them – WHITEHORSE FINANCE, programme. Companies that accessed funds
a specialist non-sponsored lender – secured as a precautionary measure were able to keep For instance, Fidus targets companies with a
US$50m for 14 of its companies. their workforce and avoid any restructurings,” minimum US$10m in revenues. Saratoga said
said Matt Harvey, head of direct lending at its minimum was US$8m in revenues while
“It helps that there is more liquidity for small investment firm PGIM Private Capital. Gladstone Capital’s requirement is slightly
and middle market-sized businesses. It relieves higher at US$20m.
a lot of stress. One of the biggest benefactors Against the background of the PPP launch,
of these loans is the equity owner, who is a combination of monetary and fiscal policies BDC Newtek Small Business Finance is one
relieved from having to put in further equity and last year also helped to create a healthy lending exception to the non-bank lending market and
dilute their holding,” said Reed Van Gorden, environment for middle market companies, said has again signed up to participate in the second
a managing director at direct lending firm Harvey. round. The BDC provided US$1.19bn in loans
Deerpath Capital Management. under the PPP last year.
“The additional liquidity created a more
First-time borrowers can obtain loans of up to patient and accommodative environment across Some believe that the PPP would benefit
US$10m if they employ fewer than 500 people. equity and credit markets. Valuations improved, from greater participation from private credit
and there was a normalisation of the cost of lenders.
Companies returning to the PPP are restricted capital, with rates now returning to pre-Covid
to loans totalling no more than two-and-half levels,” Harvey said. “After the launch of the PPP in March, the
times payroll with amounts capped at US$2m. money just flew out the door,” said Suzie
The companies must have a maximum workforce SIGN ME UP Saxman, partner at law firm Seyfarth. “I think it
of 300 people and demonstrate a 25% decline in US president Donald Trump signed into would be fabulous if some non-bank lenders did
revenues in one quarter of 2020 compared with law the Consolidated Appropriations Act try to become qualified. They have access to a
the same period in 2019. different segment of the market.”
David Brooke
The amendment increases the size of its Barclays, CIBC, Morgan Stanley, Bank of Nova borrower’s achievement of sustainability
revolving credit facility, originally signed in Scotia, TD Bank, Credit Suisse, Truist Bank, US targets linked to workplace safety and
October 2018, to US$2bn from US$1.5bn, Bank, BBVA and PNC Bank. greenhouse gas emissions.
and extends the maturity to January 12 2026
from October 2023. Bank of Montreal and Citizens Bank, Pricing is tied to Flex’s debt rating. For
lenders to the facility at signing in 2018, are Baa2/BBB/BBB or higher the margin is 125bp
The facility’s pricing, based on the no longer participants. OVERû,IBORûWITHûAû BPûCOMMITMENTûFEE ûFORû
borrower’s debt ratings, increased with the "AA """
"""
ûITûISû BPûANDû BP ûFORû
amendment. Pioneer is rated Baa2 by Moody’s and BBB "A "" "" û BPûANDû BP ûANDûFORû"A
by S&P. BB/BB or lower it is 187.5bp and 30bp.
&ORû! !
ûTHEûMARGINûISû BPûOVERû,IBORû
WITHûAû BPûCOMMITMENTûFEE ûFORû"AA FLEX SIGNS ESG-LINKED LOAN Financial covenants require Flex’s
""" ûITûISû BPûANDû BP ûFORû"AA """ûITûISû MAXIMUMûDEBT
TO
%BITDAûRATIOûTOûBEû û
BPûANDû BP ûFORû"AA """
ûITûISû %LECTRONICSûMANUFACTURERûFLEX has signed an times and its minimum interest coverage
BPûANDû BP ûANDûFORû"A "" ûITûISû UNSECUREDû53 BNûlVE
YEARûREVOLVINGûCREDITû ratio to be 3.0 times.
187.5bp and 27.5bp. facility linked to sustainability targets.
Bank of America is the administrative agent
Pricing on the original deal ranged from The facility replaces the company’s and Citigroup is syndication agent. Other
100bp-175bp with a 10bp-25bp commitment US$2.2525bn deal signed in June 2017 that lenders are Banco Santander, Bank of China,
fee. matures in June 2022. Barclays, BNP Paribas, HSBC, JP Morgan, Mizuho,
MUFG, SMBC, Bank of Nova Scotia, Truist Bank,
Wells Fargo Bank is the administrative The margin may be increased or US Bank, UniCredit, Deutsche Bank, DBS Bank,
agent. Other lenders are Bank of America, JP decreased by up to 5bp per year and the ICBC, Standard Chartered, Agricultural Bank of
Morgan, Citigroup, Goldman Sachs, MUFG, RBC, commitment fee by up to 1bp based on the
76 International Financing Review January 16 2021
LOANS LEVERAGED LOANS
China, Banco Bradesco, China CITIC Bank Gynaecology and fertility care services The seven-year deal is guided at 300bp
International, KBC and Raiffeisen Bank provider WOMEN’S CAREûSETûlNALûPRICINGûTERMSû OVERû,IBORûWITHûAû ûmOORûANDûAû û/)$ û
International. for a US$550m loan package. )TûWASûLAUNCHEDûATû BPn BPûOVERû,IBOR û
with a 99.5 OID.
Flex is rated Baa3 by Moody’s and BBB- by 4HEûlNANCINGûCOMPRISESûAû53 Mû
S&P and Fitch. SEVEN
YEARûlRST
LIENûLOAN ûAû53 Mû There is a 25bp step-down if the borrower
second-lien eight-year loan and a US$70m completes an IPO. It comes with 101 soft call
LEVERAGED LOANS revolving credit facility. protection for six months and amortises at
1% per annum.
UNITED STATES 4HEûlRST
LIENûLOANûPRICEDûATû BPûOVERû
,IBOR ûWITHûAû û/)$ûANDû ûSOFT
CALLû The loan was issued in connection with
WESTINGHOUSE SEEKS REPRICING protection for six months. The second-lien ,INDSAYû'OLDBERG SûACQUISITIONûOFûAû û
LOANûlNALISEDûATûATû BPûOVERû,IBOR ûATûAû û stake in Pike on December 21.
.UCLEARûPOWERûCOMPANYûWESTINGHOUSE OID and with 102, 101 hard-call protection.
LAUNCHEDûAûREPRICINGûOFûAû53 BNûlRST
LIENû Morgan Stanley is the sole bookrunner.
term loan. Both tranches of debt come with a 0.75% The company is rated B2/B and the facility
,IBORûmOOR is rated Ba3/B.
The loan, which matures in August 2025, COLE PARMER, a temperature-monitoring
ISûOFFEREDûATû BPûOVERû,IBORûWITHûAû BPû Jefferies LEDûTHEûlRST
LIENûLOANûANDûCredit device maker, was scheduled to close a
ratings-based step-down. The spread will Suisse led the second-lien loan. US$190m loan package on Friday.
decrease to 250bp if the company attains 4HEû53 MûINCREMENTALûlRST
LIENûTERMû
ratings of B1/B+. Deutsche Bank, RBC Capital Markets, LOANûWASûOFFEREDûATû BPûOVERû,IBOR
Macquarie and Nomura were joint The facility is fungible with the
The Credit Suisse-led deal comes with a bookrunners. COMPANY SûEXISTINGû53 MûlRST
LIENûTERMû
ûmOOR ûATûPAR ûWITHûAû ûSOFTûCALLûFORûSIXû loan, which is set to be repriced from 425bp
months. Proceeds will be used to fund the OVERû,IBOR
company’s acquisition by private equity 4HEûlRST
LIENûFACILITYûINCLUDESûAû BPû
The loan repriced last January at 300bp lRMû"#û0ARTNERS LEVERAGE
BASEDûSTEPDOWNûANDûAû ûmOOR û)Tû
OVERû,IBORûWITHûAû ûmOOR carries soft call protection for six months at
HUB NEARS TLB REPRICING 101.
4HEûCOMPANYûANDûlRST
LIENûLOANûAREûRATEDû The add-on loan was offered at a 99.5–
B2/B. Insurance broker HUB INTERNATIONAL was 99.75 OID, while the existing tranche
scheduled to close on Friday a US$1.507bn offered no discount.
The debt was originally raised as a lRST
LIENû4ERMû,OANû"ûREPRICING Included in the total loan package is a
US$2.73bn seven-year loan in July 2018 to privately placed US$65m second-lien term
BACKûTHEûCOMPANY SûPURCHASEûBYû"ROOKlELDû The loan, which matures in April 2025, was loan.
Asset Management. At the time, it was OFFEREDûATû BPûOVERû,IBOR ûFROMû BPn Jefferies was the bookrunner on the deal,
PRICEDûATû BPûOVERû,IBOR ûWITHûAû BPû BPûATûLAUNCH ûWITHûAû ûmOORûATûPAR û)Tû which will fund an acquisition.
leverage-based step-down. comes with 101 soft call protection for six Medical services provider SOTERA HEALTH
months and amortises at 1% per annum. HOLDINGS was scheduled to close on Friday a
Home therapy services provider OPTION CARE 53 BNûlRST
LIENûTERMûLOANûREPRICING
HEALTH released terms for a US$250m add-on Morgan Stanley was leading. The loan, which matures in December
TOûITSûEXISTINGû53 MûlRST
LIENûTERMûLOAN û Corporate ratings are B3/B and the debt is ûWASûOFFEREDûATû BPûOVERû,IBOR ûWITHûAû
Commitments were due on Friday. rated B2/B. ûmOORûANDûAû n û/)$ û)TûINCLUDESû
In October 2019, Hub issued a US$1.27bn 101 soft call protection for six months.
The loan, which matures on August 6 INCREMENTALû4ERMû,OANû"ûTOûPAYûDOWNû JP Morgan was leading.
ûWASûOFFEREDûATû BPûOVERû,IBORûWITHûAû existing debt. 3OTERAûISSUEDûTHEûlRST
LIENûTERMûLOANûINû
ûmOORûANDûAû û/)$ Background screening provider FIRST .OVEMBERû ûASûPARTûOFûAû53 BNû
ADVANTAGE is seeking an incremental RElNANCINGûPACKAGE û)TûWASûPRICEDûATû BPû
Bank of America was arranging the 53 MûlRST
LIENûTERMûLOANûLEDûBYûBank of OVERû,IBORûWITHûAû ûmOORûANDûAû û/)$
lNANCING America. The company and loan are rated B1/B+.
The incremental loan, which matures on
The existing loan was issued in May 2019 January 31 2027, is offered at 325bp over UKG AGREES REFI LOAN, ADD-ON
ANDûPRICEDûATû BPûOVERû,IBORûWITHûAû û ,IBORûWITHûAû ûmOORûANDûAû û/)$ û)TûISû
mOORûANDû/)$ûOFû FUNGIBLEûWITHûANûEXISTINGû53 MûlRST
LIENû Cloud computing company ULTIMATE KRONOS
term loan. GROUP added a US$300m incremental
AMERICAS LOANS BOOKRUNNERS – FULLY The existing term loan was issued in fungible loan to a US$2.938bn covenant-lite
January 2020 to fund the company’s buyout lRST
LIENûTERMûLOANûTHATûRElNANCESûANû
SYNDICATED VOLUME BYûPRIVATEûEQUITYûSPONSORû3ILVERû,AKEû existing term loan.
BOOKRUNNERS: 1/1/2021 TO DATE Partners.
Proceeds of the incremental loan will be The loans, which matures on May 2026,
Managing No of Total Share used to pay down a US$145m second-lien WEREûOFFEREDûATû BPûOVERû,IBORûWITHûAû
bank or group issues US$(m) (%) term loan that was also issued in connection ûmOOR ûATûPAR û4HEûCredit Suisse-led deals
with the buyout. come with 101 soft-call protection for six
1 Bank of America 2 916.67 36.7 4HEûCOMPANYûISûRATEDû" "nûANDûTHEûlRST
months.
2 JP Morgan 2 716.67 28.7 lien debt is rated B2/B–.
3 Wells Fargo 1 666.67 26.7 The debt is rated B1/B. The company is
4 Truist Financial 1 50.00 2.0 PIKE LINES UP US$630m LOAN rated B2/B– .
5 PNC Financial Srvs 1 50.00 2.0
6 Silicon Valley Bank 1 50.00 2.0 Construction company PIKE CORP is raising a ,ASTû&EBRUARY ûPEERSû+RONOSûANDû5LTIMATEû
7 Citizens Finl Grp 1 50.00 2.0 US$630m facility, split between a US$315m Software announced their merger.
3 2,500.00 4ERMû,OANû"ûANDûAû53 MûDELAYED
DRAWû
Total term loan.
Proportional credit SDC code: R7
Source: Refinitiv
International Financing Review January 16 2021 77
Lenders assemble as Ineos six month 101 soft-call protection has
Quattro launches jumbo loan expired.
EUROPE Twenty-three banks lead “benchmark issuance for a high-profile client” The loan, which was priced in July 2020 at
BPûOVERû%URIBOR ûISûNOWûPRICEDûATû BPû
Some 23 banks have launched a €2.6bn- tighten later on, then they’ll do it. It will be more OVERû%URIBORûWITHûAû ûmOOR ûATûPAR ûFROMûAû
equivalent jumbo loan to back German styrenics interesting to see final pricing than guidance,” a 99.75 OID.
supplier INEOS STYROLUTION’s combination with senior banker said.
INOVYN and US$5bn acquisition of BP’s aromatics The maturity is 5.5 years, the same as the
and acetyls business into a newly named entity BNP Paribas, Goldman Sachs and JP Morgan existing loan. There is 101 soft call for six
Ineos Quattro, as well as amending €622m of are leading the amendment. months.
existing loans.
The deal is viewed as good one to get the %XPECTEDûRATINGSûAREû" " ûWITHûAûSTABLEû
The proceeds – along with other secured and market going in 2021 given its size and the outlook.
unsecured bonds and cash on hand – will repay amount of lenders that are set to earn from it.
a US$3.5bn-equivalent two-year bridge loan Bank of America, Morgan Stanley and Nomura
that was signed in August as part of a US$4.5bn “This is benchmark issuance for a high-profile are physical joint bookrunners and global
facility to fund the deal, refinance an Inovyn TLB, client. It is a big jumbo acquisition even by Ineos’ coordinators for the loan, alongside Deutsche
fund the full amount of deferred consideration standards and everyone wants to be involved as Bank, Goldman Sachs and JP Morgan, which are
to BP and pay transaction related fees and it is their biggest deal for a long time and they’ll global coordinators.
expenses. probably not come back quickly, so the client
is trying to keep as many people as happy as Joint bookrunners include Barclays, BNP
The new €2.6bn five-year TLB will be split possible,” said a senior banker. Paribas, Credit Agricole, CaixaBank, Citi, Credit
between US dollars and euros and is guided Suisse, Nordea and Santander.
to pay 325bp–350bp over Libor/Euribor, at JP Morgan is lead-left on the dollars alongside
99–99.5 OID. The dollar loan is offered with a global coordinators and bookrunners Barclays, 0ROCEEDSûFROMûTHEûõ BNû4," ûALONGSIDEûAû
0.5% floor and the euro a 0% floor, while both BNP Paribas, Citigroup, Goldman Sachs and €2.4bn-equivalent of bonds, will be used to
will have 101 soft call for six months. HSBC. On the euro loan, physical bookrunners RElNANCEûDEBTûANDûPAYûAROUNDûõ BNûBACKû
are BNP Paribas, Goldman Sachs and JP Morgan TOûSHAREHOLDERS û SEEû4OPû.EWS
Ineos Styrolution, owned by UK chemicals alongside global coordinators and bookrunners
giant Ineos, is targeting a Ba/BB rating profile. Barclays, Citi and HSBC. EURO ETHNIC FOODS LBO LOAN OUT
The margin is significantly higher than the On both the dollar and euro tranches, !ûõ MûLEVERAGEDûLOANûlNANCINGûWASû
200bp over Libor/Euribor paid on the US$202m bookrunners are Bank of America, Commerzbank, launched to back PAI Partners’ acquisition of
and €450m of existing loans, which are being Credit Suisse, Lloyds, Mizuho, Morgan Stanley, a majority stake in French food retailer EURO
amended. On these 2027 loans, the dollar has a NatWest, ABN AMRO, Credit Agricole, Deutsche ETHNIC FOODS.
0% floor and the euro and 0.5% floor. Bank, ING, Intesa Sanpaolo, Santander, Fifth Third
and ICBC. Credit Suisse, UBS and Credit Agricole lead
“Ineos doesn’t want to come and make a syndication of a €465m seven-year Term
mess of it. They’ll launch and if there is room to KBC and MUFG are mandated lead arrangers. ,OANû"ûASûPHYSICALûBOOKRUNNERS ûALONGSIDEû
Claire Ruckin joint bookrunners Bank of America, Banque
Populaire, Deutsche Bank and Goldman Sachs.
In June, Ultimate Software issued a %XISTINGûCORPORATEûRATINGSûAREû"A ""n û
53 BNûlRST
LIENûLOANûASûPARTûOFûAû Facility ratings are Ba3/BB–. 4HEû4,"ûISûGUIDEDûATû BPûOVERû%URIBORû
US$3.545bn loan package to pay down Kronos’ WITHûAû ûmOORûANDûAû n û/)$ û4HEûDEALû
existing debt as part of the merger process. EUROPE/MIDDLE EAST/ includes 101 soft-call protection for six
AFRICA months.
UKG is majority-owned by private equity
sponsor Hellman & Friedman. VERISURE TIGHTENS TERMS 4HEûlNANCINGûALSOûINCLUDESûAûõ Mû
revolving credit facility.
Ultimate Kronos Group is majority owned Swedish alarm company VERISURE tightened
by private equity sponsor Hellman & TERMSûONûAûJUMBOûõ BNû4ERMû,OANû" ûWHICHû Issue ratings are B1/B, while corporate
Friedman. forms part of a wider dividend ratings are B2/B.
recapitalisation, after receiving strong
%LECTRONICûMARKETûMAKERûJANE STREET market demand. At the same time it agreed %UROû%THNICû&OODSûOWNSûANDûOPERATESûTHEû
launched a US$300m fungible add-on for an a repricing of its existing €800m loan. grocery section of food retailer Grand Frais.
EXISTINGû4ERMû,OANû"
4HEûõ BNûSEVEN
YEARû4,"ûWASûPRICEDûATû KDC LAUNCHES ADD-ON
The debt, which matures on January 2025, BPûOVERû%URIBORûFROMûREVISEDûGUIDANCEû
WASûINITIALLYûRAISEDûASûAû53 BNû4,"ûINû of 350bp–375bp and 375bp–400bp at Beauty and personal care products maker
September 2018. The total tranche size, LAUNCH û4HEûlRMûALSOûTIGHTENEDû/)$ûTOû û KNOWLTON DEVELOPMENT CORP launched a
inclusive of the US$300m add-on, will be from initial guidance of 99.0–99.5. €100m add-on term loan to pay a dividend to
approximately US$1.873bn. shareholders.
!û ûmOORûREMAINSûUNCHANGED ûASûDOESû
The company previously increased the 101 soft call for six months. US LEVERAGED LOANS
SIZEûOFûTHEû4,"ûTOû53 BNûLASTû*ANUARY BOOKRUNNERS: 1/1/2021 TO DATE
Separately, Verisure repriced an existing
The transaction also pays out a 10bp õ Mû4,"ûBYûSHAVINGû BPûOFF ûNOWûTHATû Managing No of Total Share
consent fee to existing lenders for structural bank or group issues US$(m) (%)
amendments.
1 JP Morgan 1 50.00 20.0
JP Morgan is leading the deal, which will 2 Silicon Valley Bank 1 50.00 20.0
be used for general corporate purposes. 3 Truist Financial 1 50.00 20.0
4 PNC Finl Services 1 50.00 20.0
5 Citizens Finl Grp 1 50.00 20.0
1 250.00
Total
SDC code: P2
Excluding Project Finance.
Source: Refinitiv
78 International Financing Review January 16 2021
LOANS LEVERAGED LOANS
The loan is offered to pay 500bp over THEûLOAN ûWHICHûISûSPLITûINTOûAûlVE
YEARûlRST
ANZ, Standard Chartered and United Overseas
%URIBOR ûWITHûAû ûmOORûATû n û/)$ lien portion and a A$54m 5.5-year Bank are the mandated lead arrangers,
second-lien piece. bookrunners and underwriters of the
Pricing is in line with an existing €460m transaction, which offers an interest margin
term loan which KDC secured in July 2020 to 4HEûlRST
LIENûPORTION ûWHICHûALSOûINCLUDESû of 158bp over Hibor.
back the purchase of Italian consumer a A$25m revolving credit facility, was priced
products maker Zobele. at 500bp over BBSY. "ANKSûHAVEûBEENûINVITEDûTOûJOINûASû-,!Sû
with HK$1bn for an all-in pricing of 173bp.
UBS is lead-left bookrunner and more The second-lien piece, which was not
banks may join at a later stage. syndicated, offered 850bp–900bp over The loan-to-value ratio of the HK$13.8bn
BBSY. facility is to remain below 50% as a condition
In January 2020, Cornell Capital-owned precedent for drawdown.
KDC placed a US$300m add-on loan and The facility has one covenant relating to
repriced an existing facility at 400bp over leverage. 0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEûAû
,IBOR HK$13.8bn three-year borrowing that a Gaw
Of the senior debt facilities, A$241.8m is Capital-led consortium obtained in March
That fungible add-on supported the available for funding the acquisition, 2018 for the acquisition of 17 properties
company’s merger with cosmetics products repaying debt and paying related costs and FROMû(ONGû+ONG
LISTEDû,INKû2%)4
manufacturer HCT Group. EXPENSES ûWHILEûANOTHERû! MûWILLûlNANCEû
growth capital expenditure, any future The properties included shopping malls
ASIA-PACIFIC acquisitions, working capital and general and cars parks in public housing estates in
corporate purposes. Hong Kong, which also formed the security
CITADEL LBO LOAN WRAPPED for the loan.
GAW CAP SHOPS LINK MALLS REFI
0RIVATEûEQUITYûlRMû0ACIlCû%QUITYû0ARTNERSûHASû %LEVENûLENDERS ûINCLUDINGû!.: û3TANDARDû
closed syndication of a A$266.8m (US$206m) 0RIVATEûEQUITYûlRMûGAW CAPITAL PARTNERS has #HARTEREDûANDû5/"ûASûORIGINALû-,!"S û
loan to fund its leveraged buyout of information launched the syndication of a HK$13.8bn provided that loan.
technology services provider CITADEL GROUP. 53 BN ûTHREE
YEARûFACILITYûTOûRElNANCEûAû
leveraged buyout loan it obtained in 2018 In December last year, the Hong Kong
Goldman Sachs was the sole mandated lead for the acquisition of a portfolio of shopping Monetary Authority sent letters to lenders
arranger, underwriter and bookrunner of MALLSûFROMû,INKû2%)4 on two syndicated leveraged buyout loan
facilities, including the HK$13.8bn loan
COMPLETEDûINû ûANDûAû(+ BNûlVE
Fundraising rebounds in direct lending
EUROPEAN MIDDLE MARKET A larger allocation will favour existing fund manager relationships
European debt funds are raising billions for their the March lockdown in Europe and the US. such risk/return profile of direct lending is
direct lending strategies as investors look set to Most only started looking into a backlog of appealing,” said Floris Hovingh, partner and
increase allocations to the asset class in 2021, investments after the summer, rather than new head of alternative capital solutions at Deloitte.
following a barren year when activity all but opportunities.
stopped due to Covid-19. While investors are ready to pour even more
“European investors just put a stop on new capital into the direct lending space, a larger
Already this month, Investec reached the first investments after March as they focused instead allocation will favour existing fund manager
close of its debut direct lending fund at €165m, on assessing their own portfolios for the risk of relationships, rather than new relationships,
while Sixth Street closed its second European potential losses. Once the situation improved due to restrictions in investment policies around
direct lending fund with a €1bn hard cap. in May, and most managers did a good job of signing up new managers without face-to-face
managing their portfolios; handling a backlog of meetings.
At the end of last year, Pemberton Capital pipeline investments for many of them took up
raised more than US$2.2bn for the first close most of the second half of 2020,” said Alexander “It’s a restricted environment because
of its third European mid-market fund, with a Thiel, senior partner at Arbour Partners, which unfortunately not all institutional investors
final close target of US$4.5bn–$5bn. Elsewhere, advises private debt GPs on fundraising. have adopted virtual due diligence as a way to
Ares, one of the largest private credit managers, onboard new managers,” said Thiel. “There will
surpassed its €9bn target to lock down €9.3bn European-focused direct lending funds raised be a growing polarisation in fund allocations
of capital for a middle market lending fund and US$23.4bn in 2020, a significant decline from where more money goes to existing managers in
Alcentra closed a €557m strategic credit fund. US$34.9bn in a record year of 2019, according to the portfolio through re-ups.”
data from Preqin.
Private debt funds are once again drawing Well-known fund managers with a track
demand from investors, which are poised to pile GROWING POLARISATION record that show their funds are resilient to
even more capital into direct lending strategies The latest stimulus from the Federal Reserve Covid, such as Ares, BlueBay, HPS, ICG and
this year compared to 2020, several direct and ECB at the end of last year, as well as Blackstone Credit are expected to benefit from
lenders said. continued government support to pump money the situation.
into economies has prompted investors to
“We expect that institutional investors will carry search for yield, making an investment in private “There is certainly more scrutiny. It will be
on investing in the asset class and increase their debt funds highly attractive given the returns on tougher for new funds now to raise capital,
allocations in 2021,” said Antoine Josserand, head offer versus the risk profile. as investors have a tendency to go for well-
of business development at Pemberton. established players who have shown a solid
“A plain vanilla direct lending strategy performance track record, especially during the
Last year, most institutional investors, generally pays around 6%–8% annual return for pandemic crisis that we have experienced over
including pension funds and insurers, pressed senior secured risk. For institutional investors, the last nine months,” said Hovingh.
pause on investing in all alternative investment Prudence Ho
opportunities, including private debt, following
International Financing Review January 16 2021 79
year facility signed in 2019, reminding the year revolver (Facility B2) and a three-year Super), HSBC, MUFG, State Bank of India and
banks to strictly follow guidelines term piece (Facility C). Westpac joined as mandated lead arrangers.
regarding the regulatory caps on loan-to-
value ratios. All tranches for the US dollar borrowing Kiwibank, Metrics Credit Partners, Mirae Asset
and Tranche C on the rupiah-denominated Securities and Mizuho Bank came in as lead
HKMA noted in the letters that it was portion can be extended by two more years. arrangers.
aware both loans had previously breached
THEûTHENû û,46ûCAPûFORûSECUREDû -,!SûAREûINVITEDûTOûJOINûTHEûRUPIAH
ANZûWASûTHEûSOLEû-,!ûANDûBOOKRUNNERû
commercial property lending. However, denominated tranche only with and underwriter of the facility, which
lenders were not asked to take any commitments of US$30m-equivalent via a COMPRISESûTERMûLOANSûOFû.: MûANDû
immediate action. participation fee of 130bp, while lead .: M ûANDûAû.: MûREVOLVINGûCREDITû
arrangers are allowed to participate in all facility.
The move followed the regulator’s tranches with tickets of US$20m-equivalent
RELAXATIONûINû!UGUSTûLASTûYEARûOFûTHEû,46ûCAPSû via a fee of 110bp. The loan offers interest margins in the
for mortgage loans on non-residential 300s over BKBM and represents a leverage
properties to 50% from 40%. 0ROCEEDSûWILLûBEûUSEDûTOûPART
lNANCEû multiple of around 5x.
acquisition and transaction costs,
In May 2019, a consortium comprising RElNANCINGûANDûTOûEXPANDûBUSINESSû NZ HEALTHCARE INVESTMENTS is the borrower.
Gaw Capital, Blackstone Group and OPERATIONSûFOLLOWINGûTHEû,"/ 3PONSORSû.:û3UPERûANDû/400ûHAVEû
'OLDMANû3ACHSûOBTAINEDûTHEû(+ BNûlVE
COMPLETEDûTHEû,"/ûOFû.EWû:EALAND SûLARGESTû
YEARûLOANûFORûTHEû,"/ûOFû ûOTHERûSHOPPINGû On December 7, Singapore-listed agri-food provider of human and veterinary pathology
MALLSûFROMû,INKû2%)4 company Japfa announced that it had agreed SERVICES û!SIAû0ACIlCû(EALTHCAREû'ROUP ûWITHû
TOûSELLûANû ûSTAKEûINû'REENlELDSû$AIRYû each taking a 50% stake, according to a
DUO SEEKS FOR GREENFIELDS 3INGAPOREûTOû40'ûANDû.ORTHSTARû'ROUPûFORû media release on December 1.
US$236m. Japfa will retain a 20% stake in the The transaction, announced in August,
0RIVATEûEQUITYûlRMSû40'û#APITALû!SIAûANDû dairy unit. VALUEDû!0('ûATûMOREûTHANû.: M
.ORTHSTARû'ROUPûAREûSEEKINGûUPûTOû53 Mû !0('ûISû.EWû:EALAND SûLARGESTûPROVIDERûOFû
in senior secured facilities to fund their The proposed transaction is conditional pathology services, with 25 laboratories,
LEVERAGEDûBUYOUTûOFû3OUTH
%ASTû!SIANûDAIRYû on shareholder approval and the consent of over 2,000 staff and 150 collection centres
producer GREENFIELDS DAIRY SINGAPORE. existing bank lenders. throughout the country.
)Nû û#ANADIANûINVESTMENTûlRMû
CIMB Bank‘s Singapore and Jakarta 'REENlELDSû)NDONESIAûOWNSûTWOûCATTLEû "ROOKlELDû#APITALû0ARTNERS ûRAISEDûAû
branches are the mandated lead arrangers, farms and one of the largest dairy processing ! BNû 53 BN ûlVE
YEARûLOANû
bookrunners and underwriters of the deal, PLANTSûINû%ASTû*AVA û4HEûCOMPANY SûPRODUCTSû supporting the leveraged buyout of
which is available in US dollars and are currently distributed in Indonesia, Healthscope.
Indonesian rupiah. Singapore, Malaysia, Brunei, the Philippines, The loan comprises a A$360m amortising
Myanmar and Hong Kong. 4ERMû,OANû!û4RANCHE ûAû! BNûBULLETû
'REENlELDSû$AIRYû3INGAPOREûANDû piece, a A$250m revolving credit facility and
subsidiary GREENFIELDS INDONESIA are SPONSORS WRAP HEALTHSCOPE a A$100m acquisition and capex facility.
borrowing up to US$45m and US$95m, The margins are 400bp over BBSY for the
respectively. .EWû:EALANDû3UPERANNUATIONû&UNDûANDû amortising term loan and the revolver, and
Ontario Teachers Pension Plan have closed a 425bp over BBSY for the bullet piece and the
'REENlELDû$AIRYû3INGAPORE SûBORROWINGû .: Mû 53 M ûLOANûTOûBACKûTHEIRû capex facility.
COMPRISESûlVE
YEARûTERMûLOANSûOFû53 Mû LEVERAGEDûBUYOUTûOFû(EALTHSCOPE Sû.EWû .:û3UPERûINVESTSûMONEYûONûBEHALFûOFûTHEû
(Facility A1) and US$22m (Facility A2), and a Zealand pathology business following a .EWû:EALANDûGOVERNMENTûTOûHELPûPAYûFORû
US$15m three-year revolving credit facility. strong response from 11 lenders in general the increasing costs of universal pension
syndication. entitlements.
The Indonesian subsidiary’s rupiah-
DENOMINATEDûlNANCINGûCOMPRISESûAû Bank New Zealand, Export Development
seven-year term loan (Facility B1), a seven- Canada, Aware Super (formerly First State
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80 International Financing Review January 16 2021
EQUITIES
China Hong Kong India Singapore Taiwan Germany Israel Norway
Poland Sweden UK United States Brazil Structured Equity
FRONT STORY US
Affirm surges after US$1.2bn IPO
“Buy now, pay later” growth and Levchin factor draw heavy demand for offering
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Stephen Lacey
International Financing Review January 16 2021 81
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THEûNINEûMONTHSûENDEDû3EPTEMBERû ûUPû bank or group issues US$(m) (%) bank or group issues US$(m) (%)
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)TûHADûANûANNUALûLOSSûOFû2MB BNûINû 1 Morgan Stanley 7 2,627.28 29.5 1 Morgan Stanley 7 2,627.28 30.4
2 Haitong Secs 8 850.90 9.5
CICC and Goldman SachsûAREûJOINTûSPONSORS 3 KB Financial Group 3 394.15 4.4 2 Haitong Secs 8 850.90 9.9
4 NH Inv & Secs 1 386.92 4.3
KUAISHOU WINS IPO APPROVAL 5 Korea Inv Holdings 1 386.92 4.3 3 KB Finl Group 3 394.15 4.6
6 Goldman Sachs 2 327.69 3.7
#HINESEûONLINEûSHORTûVIDEOûCOMPANYû 7 CICC 3 293.22 3.3 4 NH Inv & Secs 1 386.92 4.5
KUAISHOU TECHNOLOGY RECEIVEDûAPPROVALûFROMû 8 UBS 3 274.55 3.1
9 Credit Suisse 1 252.53 2.8 5 Korea Inv Holdings 1 386.92 4.5
10 Citigroup 2 236.92 2.7
89 8,913.42 6 Goldman Sachs 2 327.69 3.8
Total
7 CICC 3 293.22 3.4
8 UBS 3 274.55 3.2
9 Credit Suisse 1 252.53 2.9
10 Citigroup 2 236.92 2.7
Total 86 8,629.72
Including all domestic and international deals and rights issues Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C4a1 Source: Refinitiv SDC code: C4a2
82 International Financing Review January 16 2021
EQUITIES ASIA-PACIFIC
PTTOR primes pump for ECM
SOUTH-EAST ASIA Region’s companies preparing large IPOs this year
PTT OIL AND RETAIL, the retail unit of Thai state oil later this year. A US$2bn Singapore IPO from Singapore and NATIONAL GRID CORP OF THE
giant PTT, has launched a Bt46.9bn (US$1.56bn) beer giant THAI BEVERAGES also remains in the PHILIPPINES‘ domestic IPO of around US$1bn. REIT
IPO, kicking off what is expected to be a bumper pipeline. IPOs are also likely to be launched from Philippine
year for South-East Asian ECM. real estate majors such as DOUBLEDRAGON
“South-East Asia has been an underperformer PROPERTIES (US$270m), SM PRIME HOLDINGS
PTTOR, Thailand’s largest fuel retailer with for a couple of years but we expect activity to (US$500m–$1bn), VISTA LAND AND LIFESCAPES
a network of petrol stations and coffee shops, pick up significantly in Indonesia, Singapore (US$200m) and ROBINSONS LAND (US$500m).
is selling 2.61bn primary shares in a Bt16–Bt18 and Malaysia as valuations are attractive,” a
range. Including the 390m share greenshoe, the Singapore-based ECM banker said. “However, Explosive demand for surgical gloves
offer represents a 25% free-float. the success of the Covid-19 vaccines is critical for prompted Malaysia’s TOP GLOVE to say last
any sustained recovery.” year it was contemplating a secondary listing
Books will open from January 22 to in Hong Kong. The company has since been
February 1, and bankers expect the deal to sell China was once again Asia’s top market for embroiled in labour troubles after many of the
well. Institutional interest is said to be solid equity issuance in 2020 with US$282bn raised, migrant workers it employs were infected with
and around 65% of the deal is earmarked followed by India on US$37.5bn, while South- coronavirus, but bankers still expect the US$1bn
for cornerstone investors. The price range East Asia (Indonesia, Malaysia, the Philippines, deal to happen this year once these issues have
represents a 2021 EV/Ebitda multiple of 8.5–9.4, Singapore, Thailand and Vietnam) clocked a been resolved. Smaller domestic IPOs are also
a discount to regional peers such as Petronas combined volume of US$25bn, according to on the way from HARPS HOLDINGS (US$500m)
Dagangan in the low-to-mid teens. Refinitiv data. and SMART GLOVE (US$300m). Other IPO
candidates from the country include U MOBILE
Bank of America, Bualuang, Finansa, JP Bankers said recent IPOs from companies (US$500m) and RAMSAY SIME DARBY HEALTH CARE
Morgan, Kasikorn, Kiatnakin Phatra, Morgan such as Mr DIY Group in Malaysia (up 89% from (US$250m–$300m).
Stanley and Tisco Securities are handling the IPO. the issue price) and Nanofilm Technologies
International in Singapore (up 88%) have Indonesia may see at least one US$1bn IPO
Bankers expect South-East Asia to play encouraged private equity investors and from technology companies such as TOKOPEDIA
catch-up with China and India in 2021. controlling shareholders to look for an exit and TRAVELOKA, and the country’s energy and
through the public market. mining companies are also likely to tap the
Thailand’s large IPO pipeline still has depth capital markets this year.
with microfinance lender and non-life insurance Mega-listings this year are likely to include S Anuradha
broker NGERN TID LOR planning a US$500m– Warburg Pincus-backed ARA ASSET MANAGEMENT’s
$750m IPO towards the end of the first half, and up to US$2bn dual listing in Hong Kong and
THAI LIFE INSURANCE isplanning a US$700m float
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Morgan StanleyûISûTHEûSOLEûPLACINGûAGENT KNOWLEDGEûOFûTHEûMATTER 4HEûTHREEûBANKSûAREûALSOûJOINTûBOOKRUNNERSû
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International Financing Review January 16 2021 83
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84 International Financing Review January 16 2021
EQUITIES ASIA-PACIFIC
US turmoil drives more HK listings
CHINA At least five Chinese companies are planning “homecoming” listings in first half
The recent run of Hong Kong secondary listings Hong Kong from companies from Greater China As of Wednesday, they had risen 40% in the
is set to continue this year with at least five US- with weighted-voting-rights structures that had past nine months to US$32.98, valuing it at
listed Chinese companies seeking to list closer already listed on a qualifying overseas exchange. US$19.6bn.
to home in the first half of 2021 amid continued
US-China tensions. The new rules effectively plug a loophole The first secondary listing to hit the market
in the previous listing regime, which allowed this year, however, is likely to be Nasdaq-listed
Since Alibaba Group Holding’s secondary companies with corporate WVR structures that BILIBILI‘s US$2.5bn–$3bn offering in March. The
listing in Hong Kong in November 2019, 10 US- listed on a qualifying exchange up until, but not company filed confidentially for a secondary
listed Chinese companies have come to the city after, December 15 2017 to list in Hong Kong. listing in the week of January 4.
and raised a combined US$29bn.
Tencent Music, which listed on NYSE in The video-streaming site is working with
The New York Stock Exchange’s stop-start December 2018, chose the US back then in Goldman Sachs, JP Morgan, Morgan Stanley and
decision to delist three Chinese telecoms part because of the New York bourse’s ability to UBS.
companies earlier this month has once again accommodate its corporate WVR structure.
prompted some Chinese issuers to look at Next in line are the US$1bn secondary
Hong Kong as a back-up plan. Another flurry of Tencent Music has not decided the size of listings of online car-sale website AUTOHOME
sanctions and export restrictions last week from the offering as yet, but one of the people said and search engine giant BAIDU. IFR reported
the outgoing US administration also added to the listing may involve a 5%–10% stake. Based in October that Baidu is working with banks
the case for Hong Kong. on a market capitalisation of US$35.5bn on on a secondary listing in the first half of the
Wednesday, the deal could raise US$1.8bn– year which could raise about US$3.5bn if a 5%
NYSE-listed TENCENT MUSIC ENTERTAINMENT $3.6bn. stake is offered.
GROUP is the latest to join the herd. The online
music unit of Hong Kong-listed internet giant Nasdaq-listed TRIP.COM also kicked off work Online discount retailer VIPSHOP, meanwhile,
Tencent Holdings has held discussions with last month on a Hong Kong secondary listing is working with Goldman Sachs, JP Morgan and
potential financial advisers on a secondary that is expected to raise at least US$1bn in the Morgan Stanley for a secondary listing of up to
listing this year which could raise at least first half of the year. US$2bn in the second half of the year. Others
US$2bn. which could come this year include K-12 tutoring
The online travel firm is working with CICC, services provider TAL EDUCATION, video-streaming
The company is taking advantage of Hong Goldman Sachs and JP Morgan. social platform JOYY (formerly QQ) and data
Kong Exchanges and Clearing’s rule changes centre services provider 21VIANET.
in October, which allow secondary listings in Shares in Trip.com, also known as Ctrip, fell to Fiona Lau
a 52-week low of US$20.10 on March 18 because
of the pandemic but have recovered gradually.
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86 International Financing Review January 16 2021
EQUITIES EMEA
InPost targets €3bn in Netherlands IPO
POLAND Bankers expect a Polish IPO pipeline, but InPost opts for Amsterdam
The enormous success of Polish online retailer an Amsterdam listing of Prosus, with a market the end of January and a price range around
Allegro’s Warsaw float in October begged the capitalisation of €123.5bn on debut. January 21.
question of whether it would re-open Poland for
IPOs or was a one-off frenzy for that tech name InPost gave no details on sizing, but the all- The company reported revenues of
only. secondary float is expected to be around €3bn, Z1.66bn (US$445m) for the nine months
with selling from Advent International and funds ended September 30 and operating Ebitda
That question is still to be answered but operated by Templeton and PZU. of Z635.6m, up from Z832.5m and Z230m,
INPOST, a Polish e-commerce delivery service, respectively, in 2019.
has chosen Amsterdam for its listing. A significant portion of the fundraising
is already accounted for with cornerstone InPost operates 12,254 automated parcel
Amsterdam is increasingly being talked up as commitments in excess of €1bn. As is typical, the machines and handled more than 249m parcel
the post-Brexit exchange of choice for emerging cornerstones have committed to invest wherever deliveries through the machines in 2020. The
market companies that would typically look to the deal prices, with BlackRock in for €430.6m company said that locker delivery had resulted
London. and Capital World Investors and GIC in for in a two-thirds reduction of CO2 emissions
€300m each. A banker involved said that there compared with door-to-door deliveries, as well
A banker involved said that the bulk of is also significant interest for the shares outside as cutting congestion.
InPost’s business is Polish, but it has a fast- the cornerstone tranche, identified in virtual
growing unit in the UK and is focused on pilot-fishing. In the UK, InPost operates 1,134 machines,
becoming a pan-European business in the long with an ambition to target new markets in
term, hence the Amsterdam listing, but he That is expected to be the largest cornerstone Continental Europe.
expects there will still be companies looking to tranche for a European IPO since Glencore’s
list in Poland, including some this year. US$10bn IPO in 2011, when there were US$3.1bn Citigroup, Goldman Sachs and JP Morgan
of commitments. BlackRock was a €942m are global coordinators and bookrunners
Last year saw the €2.25bn Amsterdam cornerstone investor in Innogy’s €5bn 2016 float. with ABN AMRO, Barclays, BNP Paribas and
IPO of JDE Peet’s, the first pandemic IPO of Jefferies. DMBH, ING and Pekao are co-lead
size to employ virtual marketing. In late 2019, The IPO process is expected to be wrapped up managers.
investors gained exposure to Tencent through within three weeks, suggesting pricing around Robert Venes
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International Financing Review January 16 2021 87
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88 International Financing Review January 16 2021
EQUITIES EMEA
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International Financing Review January 16 2021 89
MOONPIG TO LIST IN LONDON AFTER !ûSMALLûPORTIONûOFûTHEûOFFERING ûROUGHLYû )TûFOLLOWSûLASTû-ONDAY SûREGûDOCûFROMû$Rû
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ECM DEALS: WEEK ENDING 15/1/2021
Stock Country Date Amount Price Deal type Bookrunner(s)
Cargojet Canada 12/01/2021 C$350.2m C$213.25 Accelerated bookbuild (Primary) Scotiabank, CIBC CM, RBC CM, JP Morgan,
Morgan Stanley, BMO CM
Kuke Music Cayman Islands 11/01/2021 US$50m US$10 IPO (Primary) Deutsche Bank, Tiger Brokers, AMTD, China Securities
Cathay Media and Education China 15/01/2021 HK$804m HK$8.34 Folow-on (Secondary) Macquarie, Morgan Stanley
Cheshi China 12/01/2021 HK$251m HK$1.23 IPO (Primary) ABC International
Edvantage Group China 13/01/2021 HK$465m HK$8.73 Follow-on (Primary) CICC, UBS
ESR Cayman China 12/01/2021 HK$1.7bn HK$25.60 Folow-on (Secondary) Morgan Stanley
GCL-Poly Energy China 14/01/2021 HK$4.2bn HK$1.08 Follow-on (Primary) CCB International, Haitong International, UBS
Haidilao International China 11/01/2021 HK$4.7bn HK$62.88 Follow-on (Secondary) Morgan Stanley
Hygeia Healthcare China 13/01/2021 HK$795m HK$53 Folow-on (Secondary) Morgan Stanley
InnoCare Pharma China 15/01/2021 HK$246m HK$12.60 Follow-on (Secondary) Morgan Stanley
Innovent Biologics China 15/01/2021 HK$4.73bn HK$90.90 Follow-on (Primary) Morgan Stanley, JP Morgan, Goldman Sachs
Man Wah Holdings China 15/01/2021 HK$2.38bn HK$15.85 Follow-on (Primary) Citigroup
Ocumension Therapeutics China 13/01/2021 HK$794m HK$28.35 Follow-on (Primary) Morgan Stanley
Roiserv Lifestyle Services China 11/01/2021 HK$1.27bn HK$13.46 IPO (Primary) Huatai International
Strawbear Entertainment China 11/01/2021 HK$976m HK$5.88 IPO (Primary) China Merchants Securities, China Securities Intl
Yidu Tech China 11/01/2021 HK$4.1bn HK$26.30 IPO (Primary) CICC, Goldman Sachs
Affimed Germany 12/01/2021 US$100m US$6 Accelerated bookbuild (Primary) Jefferies, SVB Leerink, Credit Suisse
ProSiebenSat1 Media Germany 12/01/2021 €148.5m € 13.50 Accelerated Bookbuild (Secondary) Citigroup
Steel Authority of India India 14/01/2021 Rs27bn Rs65.65 Follow-on (Secondary) DAM Capital, ICICI Securities
Playtika Israel 14/01/2021 US$1,876.5m US$27 IPO (Primary, Secondary) MS, Credit Suisse, Citigroup, GS, UBS, BofA
Prysmian Italy 11/01/2021 €292.5m € 29.25 Accelerated Bookbuild (Secondary) Equita, Morgan Stanley
Norske Skog Norway 13/01/2021 NKr800m NKr34 Accelerated Bookbuild (Primary & Secondary) DNB Markets, Pareto
Ten Square Games Poland 13/01/2021 Z355m Z500 Accelerated Bookbuild (Secondary) Wood & Co
EDP Portugal 14/01/2021 €534m €5.34 Accelerated Bookbuild (Secondary) BNP Paribas, Credit Suisse
Alchip Technologies Taiwan 15/01/2021 US$196m US$25.73 GDR (Primary) Credit Suisse
B&M European Value Retail UK 11/01/2021 £218m 545p Accelerated Bookbuild (Secondary) BofA
Clipper Logistics UK 14/01/2021 £62.2m 565p Accelerated Bookbuild (Secondary) Numis, Shore Capital
DS Smith UK 14/01/2021 £101.8m 390p Accelerated Bookbuild (Secondary) UBS
The Hut Group UK 13/01/2021 £250m 760p Accelerated Bookbuild (Secondary) Barclays, Citigroup, Goldman Sachs, JP Morgan
Watches of Switzerland UK 11/01/2021 £240m 570p Accelerated Bookbuild (Secondary) Barclays, HSBC
Affirm US 12/01/2021 US$1,205.4m US$49 IPO (Primary) Morgan Stanley, Goldman Sachs, Allen & Co
Aldeyra Therapeutics US 13/01/2021 US$65m US$9.50 Accelerated bookbuild (Primary) Jefferies, SVB Leerink
Amwell US 14/01/2021 US$310.2m US$27.50 Follow-on (Secondary) MS, Goldman Sachs, Piper Sandler, UBS
B Riley Financial US 12/01/2021 US$56.5m US$46 Accelerated bookbuild (Primary) B Riley Securities
Driven Brands US 14/01/2021 US$760m US$20 IPO (Primary) MS, BofA, Goldman Sachs, JP Morgan, Barclays
GrafTech International US 14/01/2021 US$218m US$10.90 Accelerated bookbuild (Secondary) Morgan Stanley
Lemonade US 13/01/2021 US$795.3m US$165 Follow-on (Primary, Secondary) Goldman Sachs, Morgan Stanley, Allen & Co, Barclays
Motorsport Games US 12/01/2021 US$60m US$20 IPO (Primary) Canaccord Genuity, Benchmark Capital
Petco US 13/01/2021 US$864m US$18 IPO (Primary) Goldman Sachs, BofA
Poshmark US 13/01/2021 US$277.2m US$42 IPO (Primary) Morgan Stanley, Goldman Sachs, Barclays
Provention Bio US 13/01/2021 US$100m US$16 Follow-on (Primary) SVB Leerink, Cantor Fitzgerald
Realty Income US 11/01/2021 US$599m US$57.05 Accelerated bookbuild (Primary) BofA, Morgan Stanley, Wells Fargo, Citigroup
Repay Holdings US 13/01/2021 US$130.3m US$24 Follow-on (Primary) Credit Suisse, Barclays, Citigroup, Truist
Vontier US 13/01/2021 US$1,122.5m US$33.50 Follow-on (Secondary) Goldman Sachs, Citigroup, Evercore
Zoom Video Communications US 12/01/2021 US$1,750m US$340 Follow-on (Primary) JP Morgan
90 International Financing Review January 16 2021
EQUITIES EMEA
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International Financing Review January 16 2021 91
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US ECM MAKES HAY WHILE SUN SHINES DEBUTEDûATû53 ûBEFOREûCLOSINGûATû US$700m IPO
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Morgan Stanley, as lead-left bookrunner
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SOURCEûOFûDEALûmOWûINûTHEûAFTERMATHûOFûLASTû !UCTION
LIKEûPROCESSûAREûBECOMINGûMOREû 2OARKû#APITALûWASûSEEKINGûWHENûITûSHOPPEDû
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DAYû
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BYû'ERMANYûFASHIONûE
COMMERCEûCOMPANYû TRADITIONALûTECHû)0/SûAREûMISPRICED BOOKRUNNERS: 1/1/2021 TO DATE
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HOMEûBUILDERû$REAMû&INDERSû(OMES û "UTûINû0OSHMARK SûCASEûANDûINûAûMARKETû Managing No of Total Share
53 Mû.ASDAQû)0/û BOTHûPRICINGûONû WHEREûRETAILûINVESTORSûAREûCHASINGû)0/Sû bank or group issues US$(m) (%)
7EDNESDAYûNIGHT AGGRESSIVELYûINûTHEûAFTERMARKET ûITûALLû
SEEMEDûTOûMAKEûLITTLEûDIFFERENCE 1 JP Morgan 6 2,265.08 19.3
"UTûTHEûFOCUSûCOULDûQUICKLYûTURNûTOûLARGEû
DEALSûWITHû3!0ûSOFTWAREûUNITûQUALTRICS h)ûDON TûKNOWûHOWûMUCHûTHEûAUCTIONûHASû 2 Barclays 10 1,094.02 9.3
INTERNATIONALûNEARINGûAûLAUNCHûOFûITSûSIZEABLEû REALLYûIMPACTEDûTHEûOUTCOME vûONEûBANKERû
)0/ ûWHILEûOTHERûCOMPANIESûSUCHûASûSOLARû INûTHEûWIDERûSYNDICATEûSAID 3 Goldman Sachs 10 1,078.22 9.2
POWERûEQUIPMENTûMAKERû3HOALSû
4ECHNOLOGIESûCOULDûALSOûOPTûTOûLAUNCHûONû h)T SûHARDûTOûMAKEûSENSEûOFûITûALL ûBUTûTHESEû 4 Bank of America 10 906.72 7.7
4UESDAYûAFTERûTHEûPUBLICûHOLIDAY MODIlEDûAUCTIONSûAREûSUPPOSEDûTOûREMOVEû
THEûDAYûONEûPOP û7EûAREûSTILLûSEEINGûTHEMû 5 Morgan Stanley 9 876.42 7.5
SOAR ûBUTûIT SûKINDûOFûAûCASEûOFûTHEORYûANDû
PRACTICEûBEINGûAûDIFFERENTûTHING v 6 Citigroup 6 746.66 6.4
!IRBNBûANDû$OOR$ASH ûWHICHûMOREûTHANû 7 Credit Suisse 6 592.93 5.1
DOUBLEDûONûDEBUTûLASTûMONTH ûBOTHûUSEDû
8 RBC 5 550.95 4.7
9 SVB Financial Group 6 395.18 3.4
10 Allen & Co 2 371.20 3.2
Total 34 11,725.75
Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C3r
92 International Financing Review January 16 2021
EQUITIES AMERICAS
Petco IPO proves friendly engagement
for PE backers
US CVC Capital, Canadian Pension rewarded with hefty gains
CVC Capital Partners and Canadian Pension The US$18.00 offer price valued Petco at US$112.46 on Wednesday on an upgrade by
Plan are wagging their tails in excitement after “roughly” US$6.8bn on an EV basis. That Credit Suisse.
fetching a premium valuation Wednesday on the compares to the US$4.7bn that CVC and CPP
US$864m IPO of PETCO HEALTH AND WELLNESS, acquired the business for in 2015 in a purchase To be fair, Petco is not the same business that
the bricks and mortar pet retailer they acquired funded with a US$1.5bn equity check. CVC and CPP purchased in 2015 as they have
in a secondary buyout in 2015. invested heavily in the omnichannel transformation.
The PE firms retained a 78.1% stake in the
With investor demand surging to 15 times public company, providing them additional upside Tractor Supply, a farming equipment retailer,
the offer size, Goldman Sachs and Bank of and in addition to the US$125m of dividends they and cosmetics retailer Ulta Beauty are better
America, active bookrunners in a team of seven paid themselves since the purchase. examples of high-touch retailers that have
bookrunners, placed 48m shares at US$18.00, managed to blunt the move towards low-touch
above the US$14–$17 range marketed. All in, this represents a 2.5 times return on online sales. They trade at about 15 times
their investment at the IPO price alone. forward EV-to-2021 Ebitda, versus the 12 times
Petco, which trades under the ticker “WOOF”, multiple Petco is fetching on the same basis.
closed its Nasdaq debut on Thursday at Chewy, the online unit of bricks and
US$29.40, a 63.3% day-one gain. mortar retailer PetSmart, is the Amazon-like Petco, which operates a network of 1,470
comparable, but makes a poor companion pet care centres, generated adjusted Ebitda of
“We were well oversubscribed with all the animal for Petco after its BC Partners-led US$335.7m on sales of US$3.6bn in the first
right institutions,” said a banker involved. “Petco sponsor group shed the business via its highly three quarters of the year ended October 31. The
fits into the growing theme of omnichannel successful IPO in June 2019. performance was boosted by 9.6% growth in
retailers that offer products and services you comparable-store sales.
cannot get on Amazon.” Regardless, it did not hurt Petco’s IPO Stephen Lacey
pedigree after Chewy surged 7.9% to
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International Financing Review January 16 2021 93
American Tower readies large stock sale
US Tower REIT eyes common, mandatory to help fund US$9.4bn purchase of Telefonica’s towers
Having steered clear of ECM for nearly five Since then, the REIT’s shares have more than with a path towards returning to that range over
years, wireless tower REIT AMERICAN TOWER is doubled and it has graduated to funding itself time.”
preparing a sizeable stock sale to help fund mostly with debt.
its US$9.4bn acquisition of Spanish telecoms Smith said he expected the equity funding
company Telefonica’s 31,000 communications The Telefonica deal will temporarily increase component to be similar “at a high level” to the
towers in Germany, Spain, Brazil, Chile, Peru and American Tower’s leverage above its 3–5 times 2015 financing.
Argentina. target.
“As always, we will be targeting an optimal
The financing package would have an equity “We expect to finance this transaction in financing path that minimises dilution for our
component broadly similar to the structure a manner consistent with maintaining our common stockholders while maximising total
put in place when it bought 11,300 sites from investment-grade credit ratings, which remains shareholder returns over the long term.”
Verizon Communications for US$5bn in early a key priority for us,” Smith said. “Given the
2015, American Tower CFO Rodney Smith told strength of our balance sheet and the current American Tower expects to progressively
analysts on a conference call to announce the conditions of the debt capital markets, we close the deal beginning in the second
acquisition on Wednesday. anticipate having access to the required capital quarter as it receives government and
at very attractive rates,” he added. regulatory clearances. The acquisition is also
That earlier deal saw American Tower raise expected to be immediately accretive to AFFO
US$2.5bn from a stock sale at US$97.00 a “Similar to the way we financed our 2015 per share.
share and US$1.375bn from a 5.5% mandatory tower transaction with Verizon, we expect to
convertible. temporarily bring our net leverage above our Bank of America is lead financial adviser to
stated three times to five times target range, American Tower.
Anthony Hughes
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94 International Financing Review January 16 2021
EQUITIES AMERICAS
LEMONADE TAKES HIT AFTER US$796m INTERIOR LOGIC DRAWS UP PLANS FOR IPO REALTY INCOME GETS REAL ABOUT
FIRST FOLLOW-ON EQUITY FUNDING
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International Financing Review January 16 2021 95
SPACs dominate US ECM in new year
US Thoma Bravo’s warrant-less SPAC IPO underscores investor demand
It may be another symptom of easy money goal of getting an allocation on their next IPO. THOMA BRAVO IS HARDLY ALONE.
but SPAC issuance continues to impress in the “More and more financial sponsors are Liberty Media, the publicly traded investment
early weeks of 2021. Investors last week poured conglomerate, last week dialled-in terms on its
US$7.2bn into 25 IPOs as a follow-up to the looking at SPAC mergers as a way to take US$500m SPAC IPO, LIBERTY MEDIA ACQUISITION,
US$7.3bn raised in the first week of the year, portfolio companies public.” from one-quarter to one-fifth warrant.
taking year-to-date issuance to US$14.5bn.
Institutional investors are crowding into SPACs Offsetting the aggressive structure, Liberty
In addition, there is US$15.7bn of potential to get oversized participation on a merger that they Media has committed to invest up to US$250m
issuance in the active backlog, according to IFR data. are unable to obtain on a traditional IPO. to help fund a potential merger.
There are no signs deal flow will slow any time Disintermediation of SPACs to traditional IPOs will Citigroup, Morgan Stanley, Credit Suisse and
soon. If anything, the new issue market is heating up. continue to work as long as mergers prove fruitful. Goldman Sachs, as joint bookrunners, expect to
price Liberty Media Acquisition this week.
THOMA BRAVO ADVANTAGE, the SPAC debut of tech- Even then, note bankers, SPACs are a convenient
focused private equity firm Thoma Bravo, this week place to park cash in a low interest rate environment, PONTEM CORP, a SPAC headed by German financier
secured US$900m in an IPO structured entirely as allowing investors to redeem if they do not like an Hubertus Muhlhauser, the former CEO of both CNH
common stock, after amending the terms from the acquisition, earn interest in the interim, and strip the Industrial and Welbit, on Tuesday secured US$600m
one-fifth warrant coverage originally proposed. warrant (when available) to earn extra cash. on its IPO, an increase from the US$375m initially
targeted that was later revised to US$500m.
Despite the aggressive structure, the offering Thoma Bravo, which last year closed its US$17.8bn
is more than four-times oversubscribed, XIV fund and whose holdings include RealPage, More than 200 institutions participated in Pontem,
according to sources close to the deal. Zipari and Foundation Software, has a sightline to as far more than historically was the case for a SPAC IPO.
many potential merger candidates as any sponsor.
Citigroup, Deutsche Bank, Goldman Sachs “The bid is so strong, the appetite so voracious,
and Credit Suisse were joint bookrunners on the The fact that Thoma Bravo is pushing through that everything we put up these days is multiple-
Thoma Bravo IPO. a warrant-less SPAC, limiting merger-dilution times oversubscribed,” said a banker involved in
to its current 20% promote, increases the Pontem offering. “Back in the day, it would have
“The clamouring from hedge funds [to likelihood of a successful outcome. Thoma been a strong book if 60 investors participated.”
participate in deals] is starting to leak into the Bravo Advantage is the largest-ever warrant-
long-only community,” one banker involved in the less SPAC, topping the US$400m raised a Credit Suisse and Guggenheim Securities were
offering told IFR. “A lot of those institutions spend week earlier by the Altimeter Capital-backed joint books on Pontem.
time visiting with these financial sponsors with a ALTIMETER GROWTH 2. Stephen Lacey
SPAC SUMMARY: WEEK ENDING JANUARY 15 2021
COVERAGE
NAME SPONSORS TARGET SIZE WARRANT BOOKRUNNERS
Gaming, consumer entertainment US$240.0m
26 Capital Acquisition SpringOwl Capital Management TMT US$250.0m One half Cantor
Edtech US$240.0m
890 5th Avenue Partners Inc Adam Rothstein, Emiliano Calemzuk Health, wellness technology US$240.0m One half Cowen, Craig Hallum
Consumer US$200.0m
Adit EdTech Acquisition Adit Ventures Life sciences US$100.0m One half EarlyBird Capital
Digital learning US$225.0m
Athlon Acquisition Mark Wan Fintech US$180.0m One half Jefferies
Edtech US$240.0m
Authentic Equity Acquisition Authentic Equity ESG US$180.0m One half Jefferies, BMO CM
Financial services US$350.0m
Big Cypress Acquisition Samuel Reich, Ilan Katz US$1bn–$3bn EV company US$275.0m One half Ladenburg Thalmann
Class Acceleration Michael Moe US$200.0m One half Oppenheimer
US$240.0m
Deep Lake Capital Acquisition Deep Lake Capital US$240.0m One half Citigroup, Jefferies
US$300.0m
Edify Acquisition Colbeck Edify US$350.0m One half BMO CM
US$360.0m
Environmental Impact Acquisition Canaccord Genuity US$218.0m One half Canaccord Genuity
US$360.0m
Fortress Capital Acquisition Fortress, Michael Nierenberg US$120.0m One fifth Citigroup, Goldman Sachs
US$600.0m
Global Partner Acquisition II Paul Zepf One sixth plus UBS, RBC CM
US$240.0m
US$300.0m one sixth
US$900.0m
contingent
Group Nine Acquisition Group Nine Media Media One third Barclays, Code Advisors
Not defined
Hamilton Lane Alliance Holdings I Hamilton Lane Advisors Healthcare One third JP Morgan, Morgan Stanley
Sustainable industrial technology
Healthcare Capital David Milch Consumer One half Cantor
Technology
Hennessy Capital V Hennessy Capital Partners Media, entertainment One fourth Citigroup, Barclays
Europe, ESG
Leo Holdings II Lion Capital Tech-enabled business services One third Deutsche Bank, Credit Suisse
Europe, industrial tech
Marlin Technology Marlin Equity Partners One third UBS, Jefferies
Monument Circle Acquisition Emmis Communications One half Cantor, Moelis
Northern Genesis Acquisition II Northern Genesis One third JMP Securities, Barclays, CIBC
OCA Acquisition Olympus Capital One half Stifel, Nomura Securities
Pontem Corp Hubertus Muehlhaeuser One third Credit Suisse,
Guggenheim Securities
Rotor Acquisition Brian Finn Not defined One half Credit Suisse
Silver Crest Acquisition Leon Meng, Christopher Lawrence Consumer tech
Thoma Bravo Acquisition Thoma Bravo Software One half UBS
No warrants Citigroup, DB, GS
96 International Financing Review January 16 2021
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16 Jan 2021
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