JANUARY 22 2022 ISSUE 2417 www.ifre.

com

US banks ramp up pay to keep bankers in

their seats: big five’s comp hits US$142bn

Turning tide? Raiffeisen pulls covered bond as

hunt for yield eases and 10-year Bund hits 0%

Going green or buying the right credit? It’s

clear what matters most to many investors

BONDS PEOPLE & MARKETS PEOPLE & MARKETS EQUITIES

Microsoft’s ESG market Early exit for First SPAC IPOs
Activision move relies too much Horta-Osorio at heat up Asia’s
underlines on ratings, says Credit Suisse blank-cheque
merger risk IOSCO chief after double fault race
06 06 07 09
IFR BANK CAPITAL
CONFERENCE
The IFR Bank Capital Conference will take place on
Tuesday January 25, 2022. Held virtually, the event
will be split into two sessions.

Session 1 will review key European supervisory developments of 2021 pertaining to bank capital
and discuss key talking points for 2022. A core part of the discussion will cover the EC Banking
Package 2021 and the move in Europe toward final Basel III implementation. It will also cover
the state of the European banking sector and emerging capital requirements.
Session 2 will feature a panel of leading European issuers, investors and sell-side professionals
who will discuss 2021 capital issuance activity and assess valuation and relative value factors
across capital and funding as we move into 2022.
The event is free to attend and is essential for all participants in the bank capital and funding
ecosystem: issuers and investors, sell-side underwriters, originators and structurers, strategists
and credit analysts, rating agencies, law firms and other professional segments.

Tuesday January 25, 2022 | 13:30 – 16:30 GMT

The conference is free to attend. To register, visit refini.tv/IFRBankCap

Sponsored by
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„ OPINION INTERNATIONAL FINANCING REVIEW

New world order 3YNDICATEûTYPESûHAVEûHADûITûEASYûFORûYEARSû9ESûTHEREûHAVEû

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lNANCIALûMARKETSûMOREûTHANûAûDECADEûAGOûTHEûQUESTIONû
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TAKENûOFFûTHEûINTRAVENOUSûDRIPûOFûCHEAPûLIQUIDITYû7ELLûû
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CONTINUEûTOûBUYûASSETSûANDûRATESûHIKESûINûTHEûEUROZONEûAREû DELIBERATELYûSIGNALLEDûITSûCOMMITMENTûTOûADDRESSINGûCLIMATEû
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International Financing Review January 22 2022 1

Top news
Investors in riskier bonds resist ESG 04 ‘ESG relies too much on ratings’ 06 Early exit for AHO 07

Banks ramp up pay: comp across

US big five hits US$142bn
„ People & Markets Compensation up 15% across US banks, led by a 33% jump at Goldman Sachs

BY PHILIP SCIPIO STANLEY all lifted pay by at least performance, and we are ûEMPLOYEESûUPûûFROMû
ûBUTûGOLDMAN SACHS led the committed to rewarding top THEûAVERAGEûINû
The largest US banks revelled in way, with the amount it will pay talent in a competitive labour While compensation at JP
a record year for investment ITSûEMPLOYEESûJUMPINGûûORû ENVIRONMENTvû'OLDMANû#%/û Morgan rose more modestly, it
BANKINGûASû-!ûANDûEQUITYû 53BNûTOû53BNû David Solomon told analysts on WASûSTILLûUPûûTOû53BNûLASTû
underwriting activity surged in exceeding its reputation for AûCONFERENCEûCALLû(EûSAIDûHEûHADû year, and pay expense inside its
2021, but now comes the bill to PAYINGûFORûPERFORMANCE a personal priority to invest in corporate and investment bank
keep star performers in a hot “JP Morgan and Goldman have THEûBANKSûPEOPLE ROSEûûFROMûûTOû
JOBSûMARKETû"ANKERSûAREû
expecting record pay and
bonuses for a grueling year
and banks have socked away
billions more than in previous
years to meet those
EXPECTATIONS
4HEûBIGûlVEû53ûBANKSûPUTû
AWAYûûMOREûLASTûYEARûFORû
sent a message that they intend
to win the war for talent in
banking,” said Wells Fargo bank
ANALYSTû-IKEû-AYOûh)ûHAVENTû
seen a battle this intense in the
three decades I’ve been covering
BANKINGv
'OLDMANSûSHARESûFELLûûONû
the day of its results due to
“In 2021, we demonstrated
this commitment not only
through our pay-for-
performance approach, but also
by supporting our people in a
variety of other ways, including
NEWûBENElTSûANDûINVESTMENTSûINû
HEALTHûANDûSAFETYv
Goldman also added a net
53BNûINCLUDINGûAûû
JUMPûINûTHEûFOURTHûQUARTER
In Morgan Stanley’s securities
GROUPûCOMPENSATIONûROSEûû
TOû53BNû#OMPENSATIONû
ACROSSûTHEûBANKûROSEûûTOû
53BN
Pay at Goldman and in JP
Morgan and Morgan Stanley’s
compensation costs than in 2020 concern about rising costs, in ûSTAFFûLASTûYEARûANûû investment banks last year was
nûAûRISEûOFû53BNûTOû PARTICULARûTHEûWAGEûBILL INCREASEû)TSûCOMPENSATIONûBILLû UPûûFROMûTHEûYEARûBEFOREûONû
53BNûJP MORGAN, CITIGROUP, “On compensation, our equated to average annual pay of AVERAGEû#ITIGROUPûANDû"OF!ûDOû
BANK OF AMERICA and MORGAN philosophy remains to pay for US$404,000 for each of its NOTûBREAKûOUTûPAYûBYûDIVISION

Turning tide? Raiffeisen pulls covered

bond as hunt for yield eases
„ Bonds European credit markets face up to new reality as central banks begin to withdraw cheap liquidity

BY HELENE DURAND managers who put in €125m of January and especially in recent leading to a compression in
ORDERSûINûTHEûõMûBOOKû years when central banks have valuations across asset classes
Signs that investors’ desperate It is very unusual for a covered unleashed vast amounts of and leaving investors with little
search for yield, so prominent in BONDûTOûBEûPULLEDû%SPECIALLYûINû LIQUIDITYûINTOûlNANCIALûMARKETSû choice but to either go down the
recent years, could be coming to credit curve or move along the
an end began to emerge last TEN-YEAR BUND – BACK TO ZERO duration curve in order to make
%
week when a sharp rise in RETURNSû(OWEVERûTHATûTIDEûISû
0.1
government debt yields claimed turning as central banks begin to
SûlRSTûDEALûCASUALTYû!NDû 0.0 withdraw cheap liquidity and
with the market going through RAISEûRATES
the resulting readjustment, the -0.1 “The Fed has accounted for
going may be far from easy for THEûVASTûMAJORITYûOFûGLOBALû1%ûSOû
-0.2
SOMEûASSETûCLASSES once they start to tighten,
!USTRIANûLENDERûRAIFFEISEN BANK everyone has to follow,” said a
-0.3
INTERNATIONAL was forced to pull HEADûOFûSYNDICATE
the 15-year part of a dual-tranche -0.4 7HILEûTHEû%UROPEANû#ENTRALû
covered bond exercise after lead Bank is not in lockstep with the
managers failed to muster enough -0.5 US Federal Reserve, the pull
DEMANDûFORûAûõMûTRADEû!NDû higher in yields is still hard to
-0.6
while the STATE OF BERLIN managed Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
RESISTû4HEû YEARû"UNDûHITûû
to get a €500m 30-year over the 2021 2022 FORûTHEûlRSTûTIMEûSINCEûûLASTû
line, the issuer had to lean on lead Source: Refinitiv Eikon week while two-year US Treasury

2 International Financing Review January 22 2022

 @ For daily news stories
visit www.ifre.com

SPACs struggle to find targets in Asia 08 Asia’s SPAC race  Telecom Italia buyout in doubt 10

MARGIN SQUEEZE extraordinary job in the last expecting expenses to continue ANDûONEûOFûTHEûBESTûYEARSûEVER
4HEûRESULTSûCONlRMEDûTHEûWARû COUPLEûOFûYEARS TOûRISEûTHISûYEAR Bankers across the spectrum
for talent that has been raging “We will be competitive on !CROSSûTHEûlVEûBANKSûREVENUEû are expecting a spectacular pay
on Wall Street, and the big PAYû!NDûIFûTHATûSQUEEZESûMARGINû from investment banking rose day when bonuses are handed
banks have been using a little bit for shareholders, so ûLASTûYEARûTOû53BNû OUTûANDûNONEûMOREûSOûTHANû-!û
considerable resources to win BEûITvû$IMONûSAID Revenue from trading dipped BANKERSûSAIDûONEûRECRUITER
ANDûRETAINûBANKERS Mayo cut his estimates for from the record levels of 2020, “It’s not exactly ‘eat what you
*0û-ORGANûWASûAMONGûTHEûlRSTû bank earnings in December, but was still nearly US$102bn KILLûBUTûITSûCLOSEvûHEûSAIDû!NDû
to boost starting salaries for junior BANKSûLIKEû*0û-ORGANû"OF!ûANDû
bankers above US$100,000, which PAY DAY: COMPENSATION JUMPS #ITIGROUPûWHICHûHAVEûINûTHEûPASTû
was quickly matched and US$m put shareholders above bankers
EXCEEDEDûBYûRIVALSû,ASTûWEEKû*0û 20,000 as well as their broader employee
Morgan lifted that salary to +33% BASESûHAVEûBEENûDRAWNûINûTOO
18,000
US$110,000, with pay rising by "OF!û#%/û"RIANû-OYNIHANûWONû
US$15,000 in the second year and 16,000 praise for keeping costs down,
another US$10,000 – to 14,000 +13% but that was not at the expense of
53ûnûINûTHEûTHIRDûYEARû 12,000
BANKERûPAYû)NSTEADû"OF!ûHASû
The increase brings JP Morgan in reduced its overall ranks, cut
10,000 +10%
line with other banks that reached branches and used more
those levels last year and could 8,000 automation for retail banking,
KICKûOFFûANOTHERûROUNDûOFûBIDDING 6,000 WHILEûSTILLûGROWINGûTHEûBUSINESS
h!SûWEVEûALWAYSûSAIDûWEREû “We’d rather pay people more
4,000
going to be very, very competitive and grow the business,”
ONûPAYvû*0û-ORGANû#%/û*AMIEû 2,000 -OYNIHANûSAID
Dimon told analysts on the fourth- 0 -!ûBANKERSûAREûEXPECTINGû
JPM CIB 2021 Goldman 2021 MS Securities 2021
QUARTERûEARNINGSûCALLû$IMONûSAIDû 2020 2020 2020
BONUSESûINûûONûAVERAGEûû
the bank had set aside US$1bn in larger than for 2020, according
Q1–Q3 Q4
merit increases for top bankers, Source: Bank results; JP Morgan is corporate and investment bank and Morgan Stanley
to pay consultancy Johnson
traders and managers who did an is institutional securities unit !SSOCIATES „

YIELDSûHITûûFORûTHEûlRSTûTIMEû VOLUMEûOFûTHEûLASTûlVEûYEARSûBYûTHEû SAIDûTHEûHEADûOFûSYNDICATEûh)TSû lower rated, riskier asset classes

SINCEû&EBRUARYûû SAMEûPOINTûACCORDINGûTOû)&2ûDATAû BASICALLYûPERFECTIONû)FûYOUûSAYû THATûHAVEûHUGELYûBENElTEDûFROMû
“In euros particularly, the big “Duration is going to be a buy ‘high beta longer’, I’m not the hunt for yield, market access
issue is the fact that we’re
transitioning to a positive state,”
THEûHEADûOFûSYNDICATEûSAIDûh!LLû
our rates have been negative, so
for a lot of people, going into a
positive rate environment, that
changes how you think about the
OPPORTUNITYûCOSTû7HEREûRATESûAREû
negative, your opportunity cost is
CHALLENGEvûAûHEADûOFû$#-ûSAIDû
h%5ûSOVEREIGNSûHAVEûmOCKEDûTOû
DURATIONûINûRECENTûYEARSû
They’ve had it pretty good as
investors moved along the yield
curve but if we see the yield
curve invert, who is going to
want to lock in these rates at the
long end?”
EVENûSUREûITSûAûPRICEûDISCUSSIONû
I think people would say: ‘I
don’t need to take that level of
risk to capture what I deem to
BEûAûSENSIBLEûCOUPONûORûYIELDû
)TSûAûMENTALITYûCHANGEv
.OTûEVERYONEûISûASûGLOOMYû
about access to the long end,
HOWEVERû
will become more expensive and
POTENTIALLYûMOREûDIFlCULTû
“The hunt for yield trade was
driven by ever lower interest
rates, and when we see this
back-up and expectation of more
back-ups, then fundamentally
that has to take the edge off that
in terms of the demand,” the
ZEROûTHATSûGOODûENOUGHû.OWû )TûISûNOTûJUSTû33!ûBORROWERSû “I think it’s a nuanced story,” SECONDû$#-ûHEADûSAIDû
there’s a good chance that the THATûAREûGOINGûSHORTERû&ORû ANOTHERûHEADûOFû$#-ûSAIDûADDINGû !DDITIONALû4IERûûINûPARTICULARû
risk-free rate will have better covered bond issuers, the that once the market stabilised, HASûSUFFEREDû4HEû"ANKûOFû!MERICAû
value at some point and you have greatest depth of demand is investors would return to the #O#OûINDEXûCLOSEDûATûûONû
TOûLOOKûATûTHINGSûDIFFERENTLYv below the 10-year point as long end to pick-up levels they 4HURSDAYûALMOSTûûHIGHERûTHANû
!LREADYûTHEûUNIVERSEûOFû shown by BANK OF MONTREAL HAVEûNOTûSEENûFORûSOMEûTIMEû THEûALL
TIMEûLOWûITûHITûINûû
negative yielding debt has which priced a post-global “But while we have this h)Nû!4ûYOUûNOTûONLYûHAVEû
SHRUNKû*USTûOVERûûOFûEUROû lNANCIALûCRISISûRECORD
BREAKINGû volatility, investors are asking the yield impact but also the
government bonds were õBNûlVE
YEARûTRADEûLASTû themselves: why take the extra CONVEXITYûARGUMENTûASûWELLû3Oû
negative yielding on January 18, WEEKû-EANWHILEûBANCO risk when I can buy 10-year as soon as rates are going up,
WELLûBELOWûTHEûOVERûûlGUREû SANTANDERSûõBNûTHREE
YEARû Bunds at zero and I can get cash prices are going down, so
OFû$ECEMBERûû!NDûRECENTû non-call two senior preferred much better yields than I am call risk starts going up – you
issuance patterns suggest that WASûTHEûlRSTûTIMEûTHEû3PANISHû USEDûTOûATûTHEûSHORT
ENDv start pricing them to perpetuity
borrowers are focusing more on bank had raised such short- ANDûTHATûMAGNIlESûTHEûSELL
OFFvû
THEûSHORTERûPARTûOFûTHEûCURVEû DATEDûDEBTûINûAûDECADEû DECOMPRESSION THEûSECONDûHEADûOFû$#-ûSAID
4EN
YEARû33!ûISSUANCEûFORû “If you come to market now Still, it is not just duration that With the hunt for yield no
example, has already reached with the high beta credit at the HASûBECOMEûMOREûDIFlCULTû more, bankers expect the gap
õBNûTHISûMONTHûTHEûHIGHESTû FRONTûENDûOFûTHEûCURVEûITûmIESvû Bankers expect that for those BETWEENûCREDITûTOûWIDEN „

International Financing Review January 22 2022 3

Top news
Investors in riskier bonds resist
the pull of ESG
„ Bonds High-yield and emerging markets investors refuse to pay up to buy ESG-labelled debt

BY ED CLARK %3'ûFERVOURûLETûALONEûTHEûSAMEû some saw as a relatively high lVE YEARûDUAL CURRENCYû3,"ûISSUEû
PRICINGûBENElTSû)NVESTORSûWHOû LEVELûOFûLEVERAGEûSIGNIlCANTû with the bonds subsequently
Issuers of high-yield bonds in play in the riskier arenas of high- exposure to the volatile Italian trading down in the secondary
green and sustainability-linked yield and emerging markets construction sector and a MARKET
formats are struggling to reap bonds say that while they often SHIFTINGûRATESûBACKDROP That deal’s structure even
pricing advantages as investors SEEKûTOûASSESSûAûBORROWERSû%3'û 7HILEûITSûDIFlCULTûTOûKNOWû INCLUDEDûAûNEWûSPINûONû3,"Sû
prioritise credit risk rather than PROlLEûTHEYûMUSTûCONSIDERû where a new conventional bond BECOMINGûTHEûlRSTûPUBLICûDEALû
THEûOPPORTUNITYûTOûBUYû%3' credit risk before they weigh up issue with the same size and that sees the borrower repay
LABELLEDûSECURITIES uses of proceeds or sustainability tenor would have been priced, bondholders less should it meet
4HEûCLAMOURûFORû%3'ûDEBTûHASû TARGETS WHATûISûCLEARûISûTHATûTHEû3,"û its targets, as well as a coupon
often led to tighter pricing relative “I don’t care if you call it an came 50bp back of Webuild’s STEP UPûIFûITûFAILSûTOûDOûSOû)NûTHISû
to conventional bonds – the so- 3,"ûORûAûGREENûBONDvûSAIDûONEû CURVEû4HEûBONDSûWEREûPRICEDûATû instance, the twist on the
called greenium – especially for HIGH YIELDûPORTFOLIOûMANAGERû AûYIELDûOFûûCOMPAREDûWITHû redemption stopped some
INVESTMENT GRADEûISSUERSû4HEû “Ultimately, what my investors THEûûLEVELûTHATûITSûõMû INVESTORSûFROMûPARTICIPATING
huge demand for bonds that carry are taking is the underlying û$ECEMBERûSûWEREû “To underwrite this deal
SOMEûFORMûOFû%3'ûTAGûWHETHERû credit risk of the business and TRADINGûATû3EEû"ONDSûSECTIONûFORû which, if it is successful, will
green, social, sustainable or THATûISûTHEûPRIORITYv MORE become a precedent, is
sustainability-linked, has also led That view was evident last something I don’t want to do,”
TOûAûDRAMATICûINCREASEûINûISSUANCEû week when sub-investment- NOT EASY said another high-yield investor,
Sales of such debt reached a grade Italian construction The high-yield market got an AFTERûTHEûDEALûWASûANNOUNCED
RECORDû53BN EQUIVALENTûLASTû company WEBUILD issued its EARLIERûREMINDERûTHATû%3' LABELLEDû It was a similar story last year
year, far surpassing 2020’s inaugural sustainability-linked deals aren’t necessarily an easy when French frozen food
US$555bn, and market BONDûOFFERING sell when, at the beginning of company Picard needed two
participants expect this rate of The company paid a big year, Dutch telecoms company ATTEMPTSûTOûPRINTûAûõBNû
GROWTHûTOûCONTINUE pick-up over its secondary levels VodafoneZiggo was unable to MULTI TRANCHEû3,"ûHIGH YIELDû
Yet not all parts of the bond on the €400m of July 2026 notes, MOVEûPRICINGûONûAûõBN bond offering after being forced
market are exhibiting the same compensating investors for what equivalent 10-year non-call TOûMAKEûTWEAKSûTOûTHEûSTRUCTUREû

Canada’s first green bond highlights laggards

„ Bonds Canada’s sovereign green bond could highlight nuclear controversy

BY JULIAN LEWIS Some market observers had SOVEREIGNSûFRAMEWORKû5NTILûNOWû (ACKETTûHEADûOFûSUSTAINABLEû

EXPECTEDû#ANADAûTOûENTERûTHEû even strong supporters of nuclear lNANCEûATû"-/û#APITALû-ARKETSû
The imminent launch of MARKETûBEFOREûTHEû#/0û power, such as France and the UK, “That will really support an
#ANADASûDEBUTûSOVEREIGNûGREENû international climate summit in have excluded the energy source eventual adjustment when the
bond has highlighted continuing .OVEMBERûASû'ûPEERSû)TALYûANDû FROMûTHEIRûGREENûFRAMEWORKS TIMEûCOMESûFORûREVISIONv
controversy over the product THEû5+ûDIDû"UTûTHEûSOVEREIGNû (OWEVERû#ANADASûGROWINGû Several sovereigns have asked
lNANCINGûNUCLEARûPOWERûASûWELLû went silent after June when it nuclear capacity and the fact that banks about whether they should
as the absence of the US and appointed HSBC and TD Securities nuclear power may feature in the include nuclear power in their
Japan from the green bond ASûITSûSTRUCTURINGûADVISERS %5SûTAXONOMYûOFûSUSTAINABLEû sustainability frameworks since
market despite their standing as .ONETHELESSû#ANADAûCONTINUESû activities have led market Bruce Power’s landmark deal –
the world’s two largest TOûTARGETû#BNû53BN ûFORûTHEû observers to speculate that especially after the deal received
GOVERNMENTûBONDûISSUERS transaction, which it will issue Ottawa may break with these a positive second-party opinion
/TTAWAûWILLûLAUNCHûITSûlRSTû under a green bond framework precedents – particularly after FROMû#ICEROû3HADESûOFû'REEN
GREENûBONDûTHISûQUARTERûFULlLLINGû
its earlier undertaking to enter
the market “to support the
environment and climate change
plan” before the end of its 2021–
ûlNANCIALûYEARûONû-ARCHû
4HEûDEALûhWILLûBEûTHEûlRSTûOFû
many issuances”, according to
the government’s announcement
THATûITûHASûYETûTOûPUBLISHû!LTHOUGHû
the appointment has not been
announced publicly, Toronto-
headquartered Sustainalytics is
providing a second-party opinion
ONûTHEûFRAMEWORK
NUCLEAR OPTION
One controversy is the potential
domestic utility Bruce Power in
.OVEMBERûISSUEDûTHEûlRSTûGREENû
BONDûTOûFUNDûNUCLEARûPOWER
%XPLICITûNUCLEARûUSEûOFûPROCEEDSû
APPEARSûUNLIKELYû"UTûTHEûSOVEREIGNû
could position itself for eventual
inclusion by not excluding nuclear
EXPENDITURES
“My hope is that there’s not
4HATûISûSENSIBLEû(ACKETTû
ARGUESûh%SPECIALLYûFORû
sovereigns, you’re talking about
your strategy for achieving net
zero and the tools that you’re
USINGûTOûACHIEVEûITû)TûSEEMSûTOû
me contrary to that goal to
exclude one of the key levers
that you have in achieving
INûTHEûûBUDGET inclusion of nuclear power in the an exclusion,” said Jonathan DECARBONISATIONvûHEûSAID

4 International Financing Review January 22 2022

 @ For daily news stories
visit www.ifre.com

.ONEûOFûTHOSEûTWEAKSûWEREûTOûDOû
WITHûTHEû%3'ûLANGUAGEûBUTûWEREû
related to the deal’s pricing and a
covenant limiting the company’s
CAPACITYûTOûPAYûDIVIDENDS
“Sub-investment grade
investors focus on credit quality
the US$500m of seven-year
notes was unchanged from the
ûAREAûSTARTINGûPOINT
!NDûITSûNOTûJUSTûCREDITûRISKû
THATûPLAYSûONûINVESTORSûMINDSû
With eligible assets for green
bonds often lacking, high-yield
EXAMPLEûASûhMEANINGLESSvû
Webuild’s targets on carbon
intensity, on the other hand,
were well received on the
whole, although they don’t
INCLUDEû3COPEûûEMISSIONS
“Some of the sustainability-
INûûUPûFROMûõBNûDURINGû
the previous year, according to
2ElNITIVûDATAû)NVESTORSûALSOû
point to the strong link between
ANûISSUERSû%3'ûPROlLEûANDûITSû
CREDITûRISK
!NDûWHILEûTHEûPRICINGû
ANDûTHEûRATEûTHEYREûGETTINGûlRSTû issuers have largely accessed the linked criteria are so small or so BENElTSûAREûNOTûALWAYSûOBVIOUSû
and then the sustainability- %3'ûMARKETûTHROUGHû3,"Sû"UTû irrelevant that people are just SEVERALûLEVERAGEDûlNANCEû
LINKEDûSTRATEGYvûSAIDûAû$#-û investors are raising serious doing it to jump on a bandwagon bankers said that they are
BANKERûh4HEû3,"ûSTRUCTUREû questions about how ambitious and say ‘we are sustainable’,” nonetheless advising clients to
doesn’t guarantee a pricing the embedded targets said the second high-yield incorporate KPI-linked features
BENElTûASûITSûNOTûTHEûlRSTûTHINGû MEASUREDûVIAûKEY
PERFORMANCEû investor, though he conceded into their bonds in the hope
an investor looks at but the INDICATORS ûACTUALLYûAREûnûONEû%-û that the structure had its merits that there is some advantage,
THIRDv investor described the water under the right circumstances EVENûIFûITûISûHARDûTOûPINûDOWN
COKE ISN’T IT
It can be a similar story in
emerging markets where credit
USAGEûTARGETSûONû##)SûDEALûFORû
SURGING SUB-IG ESG
EURO HIGH-YIELD ESG BOND SUPPLY
ANDûWITHûTHEûRIGHTûTARGETS h4HEREûISûAûPRICINGûBENElTvû
“There are some areas where SAIDûONEûBANKERûh)ûWOULDûCALLûITû
you really can make an impact,” ROUGHLYûANûEIGHTHû)FûYOUûAREûAû
HEûSAIDûh4HEûENERGYûCOMPANIESû Double B issuer and you can
or macro risks often outweigh
ANYûADVANTAGEûANû%3'ûLABELûMAYû
CONFERûONûPRICINGû7HENûTHEû
4URKISHûCORPORATEû#OCA
#OLAû
Icecek announced earlier this
ANDûTHEûAIRLINESûFORûEXAMPLEû attract some of the crossover
€bn
You can see their performance funds, some of the insurers,
25
OVERûTIMEûANDûMEASUREûITv then these investors have
incremental pockets of liquidity
20 RAPID ADOPTION and you can build a better
MONTHûTHATûITûWOULDûSELLûANû3,"û (IGH
YIELDûANDûEMERGINGû BOOKv
the overriding issue for 15 market investors are not Of course for some true
investors was the price relative COMPLETELYûDISMISSIVEûOFû%3'û BELIEVERSû%3'ûSHOULDûNOTûBEû
to the risk of Turkey’s STRUCTURESûTHOUGHû4HEûRAPIDû something that is used purely to
10
DETERIORATINGûECONOMICûOUTLOOK ADOPTIONûOFû3,"SûAMONGûISSUERSû MAKEûlNANCINGûCHEAPERûh)Tû
!NDûWHILEûAûLEADûBANKERûONû could not have happened if should be something that is
THATûDEALûSAIDûTHEû3,"ûSTRUCTUREû 5 there was a concerted push back THEREûTOûMAKEûlNANCINGû
was one of the reasons it got FROMûALLûINVESTORS available and if they are not
done, the bonds still needed a In the euro market alone, making the changes, you just
0
50bp new issue premium to 2019 2020 2021 THEREûWEREûINûEXCESSûOFûõBNû SHOULDNTûlNANCEûTHEMvûTHEû
entice investors and pricing on Source: Refinitiv OFûHIGH
YIELDû%3'ûBONDSûISSUEDû SECONDûINVESTORûSAID „

ABSENT US AND JAPAN Market professionals #URRENTûSOVEREIGNûGREENû is also looking to pioneer social
!TûTHEûTARGETEDûSIZEû#ANADASû suggested that the oversubscriptions and premium BONDSû)TûREMAINSûONûTRACKûTOû
inaugural deal will bring total administration’s legislative pricing “will be getting lots of BECOMEûTHEûlRSTûMAJORû
G7 sovereign green bond sales failures may have impacted the governments to take a closer sovereign to offer the product
ABOVEû53BNûINûTHEûlVEû Treasury’s appetite for new LOOKvû+IDNEYûADDED NOTûCOUNTINGûTHEû%UROPEANû
years since France’s
GROUNDBREAKINGûh/!4ûVERTEvû
Yet the world’s two largest
government bond issuers
REMAINûOUTSIDEûTHEûMARKET
The US’s absence is especially
striking as the Biden
ADMINISTRATIONSûlRSTûACTIONûONû
TAKINGûOFlCEûWASûTOûREJOINûTHEû
#/0û0ARISû!GREEMENTûONû
CLIMATEûCHANGEû)TûHASûSINCEûSETûAû
INITIATIVES
“We expect US dollar green
bond issuances to gain
momentum over 2022, which
could at some point be followed
BYûAû53ûGREENû4REASURYû9ETû
Biden is still struggling to get
the approvals to deliver on his
CLIMATEûPLEDGESû4HISûISûLIKELYûTOû
postpone further such inaugural
issuance,” said Johann Ple,
With the US and Japanese
governments having made
SIGNIlCANTûCOMMITMENTSûTOû
climate action, “I would not be
surprised if it’s on their radar”,
HEûSAID
!ûSPOKESMANûFORûTHEû53û
Treasury declined to comment on
ITSûGREENûBONDûPLANSûhATûTHISûTIMEv
Japan’s Ministry of Finance did
not respond to a request for
5NION ûHAVINGûANNOUNCEDûINû
the 2021 budget that it will
“explore the potential for
ISSUANCEv
It cited social bonds’ capacity
to “support investments in a
variety of areas that promote
greater social inclusion and
broad-based economic
PROSPERITYvû4HESEûINCLUDEûEARLYû
LEARNINGûANDûCHILDûCARE
2030 emissions target and made SENIORûPORTFOLIOûMANAGERûATû!XAû COMMENTû"UTû-ASATOû+ANDAû The sovereign discussed the
AûRAFTûOFûCOMMITMENTSûATû#/0û )NVESTMENTû-ANAGERS VICE
MINISTERûOFûlNANCEûFORû product with market
– including on methane and Green bond advocates expect international affairs, made participants in its annual debt
INTERNATIONALûCLIMATEûlNANCEûASû both heavyweights to come to notably negative comments on management strategy
WELLûASûCO
OPERATIONûWITHû#HINAû the market eventually, and to %3'ûBONDSûINû$ECEMBERû CONSULTATIONSûINû/CTOBERû4HEû
ONûCLIMATEûCHANGE make quite a splash when they including a worry that "ANKûOFû#ANADAûALSOû
“Green US Treasury bonds DOûh)MAGINEûHOWûMUCHûOFûAû “outsiders” would determine the PARTICIPATED
would be exceptionally lLLIPûTOûTHEûMARKETûITûWOULDûBEû GOVERNMENTSûEXPENDITURE “The government continues
impactful – a reference for the if we saw a US green Treasury or to explore the potential for
WHOLEûWORLDû)TSûREALLYûAûMISSEDû a Japanese green sovereign,” SOCIAL PIONEER SOCIALûBONDSvûAûSPOKESMANûSAIDû
opportunity,” said one head of SAIDû3EANû+IDNEYû#%/ûOFûTHEû !LTHOUGHûITSELFûAûLATECOMERûTOû “Discussions with partners are
CAPITALûMARKETS #LIMATEû"ONDSû)NITIATIVE THEûGREENûBONDûMARKETû#ANADAû ONGOINGv „

International Financing Review January 22 2022 5

Top news
Microsoft’s Activision move
underlines mega-merger risk
„ Bonds Will Triple A rated tech giant turn to the bond market to fund jumbo acquisition?

BY SUNNY OH available in the corporate bond Those considerations have MONEYSûFREEû4HATSûAûPRETTYû

market has fueled speculation depleted the ranks of companies POWERFULûINCENTIVEv
4RIPLEû!ûRATEDûTECHNOLOGYûGIANTû that it will use debt to fund the carrying gold-plated credit !NDûIFûDOINGûSOûRESULTSûINûAû
MICROSOFT’s offer to purchase
!CTIVISIONû"LIZZARDûHASûREKINDLEDû
concern about acquisition risks
for credit investors, as companies
take advantage of large cash piles
!CTIVISIONûACQUISITION
#ERTAINLYûTHEûPRICEûACTIONûINû
Microsoft’s bonds suggests
investors are expecting the deals
to involve bond market
RATINGSû!SIDEûFROMû-ICROSOFTû
Johnson & Johnson is the only
other corporation to retain a
4RIPLEû!ûRATINGûFROMûALLûTHREEû
major credit agencies, a far cry
ratings downgrade, the increase
in interest costs that follows is
minimal: the gap between
SPREADSûFORûTHEûAVERAGEû4RIPLEû!û
ANDû$OUBLEû!ûBONDûWASûBPûONû
ANDûEASYûlNANCINGûCONDITIONSûTOû lNANCINGû)TSûûûSENIORû FROMûTHEûSûWHENûSUCHû 4UESDAYûACCORDINGûTOû)#%û"OF!û
splurge on growth targets rather notes widened to Treasuries plus RATINGSûWEREûAûDIMEûAûDOZEN DATAû
than maintaining iron-clad BPûONû4HURSDAYûTHEûDAYûAFTERû h)Fû)MûAû#&/û)ûWOULDûDOûTHATû
BALANCEûSHEETS NEWSûOFûTHEûDEALûBROKE ûFROMû FREE MONEY ALLûDAYûLONGû7HATûISûTHEûREALûRISKû
Microsoft said on Tuesday it around plus 77bp on January 14, With the after-tax cost of debt of being downgraded from
would acquire the video game ACCORDINGûTOû-ARKET!XESS running so low, even companies 4RIPLEû!ûTOû$OUBLEû!û4HERESûNOTû
PUBLISHERûFORû53BNûWITHû h(IGHER
RATEDûCOMPANIESûHAVEû that can carry out all-cash MUCHûOFûAûPENALTYvûSAIDû!DAMû
the proposed deal following on much more freedom to expand TRANSACTIONSûlNDûITûHARDûNOTûTOû #OONSûAûPORTFOLIOûMANAGERûATû
the heels of last year’s the balance sheet if needed, and a turn to the debt markets to pay for 7INTHROPû#APITALû-ANAGEMENT
53BNûPENDINGûOFFERûTOûBUYû potential downgrade within acquisitions – especially after !ûMOREûPROSAICûREASONûFORû
CLOUDûCOMPANYû.UANCE investment-grade does not impact taking into account the rate of US -ICROSOFTûTOûlNANCEûAûCHUNKûOFû
Filings show that Microsoft is borrowing costs materially,” INmATIONûWHICHûRANûATûANû THEû!CTIVISIONûDEALûVIAûDEBTûISûTOû
sitting on a cash hoard of wrote Yuri Seliger, a credit ANNUALISEDûRATEûOFûûINû$ECEMBERû prevent the equity portion of its
53BNûSOûEVENûIFûITûBOUGHTû
!CTIVISIONûANDû.UANCEûENTIRELYû
in cash, it would still have
RICHû!PPLEûINTOûAû
around US$42bn of reserves on
STRATEGISTûATû"ANKûOFû!MERICAû “You can borrow at negative capital structure from becoming
h4HESEûACTUALûANDûPOTENTIALû-!û real yields to buy assets that are BLOATEDû3UCHûMOTIVATIONSûHAVEû
deals highlight the one-sided going to be productive over TURNEDûCASH
credit risk for industrial issuers time, so it’s a pretty good recurring borrower in the
HANDû"UTûTHEûCHEAPûlNANCINGû RATEDû3INGLEû!ûORûBETTERv OPPORTUNITYvûSAIDûAûBANKERûh4HEû INVESTMENT
GRADEûBONDûMARKET

IOSCO: ESG relies too much on ratings

„ People & Markets ESG ratings firms “have to build trust through good management of conflicts of interest”

BY TIMOTHY SIFERT evaluating an issuer’s information, market analysts and CONmICTSûOFûINTERESTûSTRONGû
environmental credentials and %3'ûINVESTMENTûMANAGERSûISûONLYûINû transparency about their
4HEû%3'ûMARKETûPLACESûhTOOû earn them green labels, second- ITSûINFANCYv methodologies and openness
much reliance on ratings”, PARTYûOPINIONSûANDû%3'ûRATINGSû !TûPRESENTûRATINGSûPROVIDERSû about the limitations of their
although this problem will nûASûWELLûASûINVESTORûCONlDENCE bear a “huge burden of ratings,” said Maloney, who
potentially work itself out as the !BSENTûMOREûSUBSTANTIVEû RESPONSIBILITYvûHEûSAID JOINEDû)/3#/ûASûSECRETARYû
industry matures and regulators dependable data on vital things !TûTHEûENDûOFûLASTûYEARû)/3#/û GENERALûINû3EPTEMBER
ANDûPROFESSIONALSûlNDûTHEûRIGHTû like carbon and methane whose members include the US 4HEûOVERSIGHTûOFû%3'û
balance between supervision emissions, money managers 3ECURITIESûANDû%XCHANGEû lNANCINGûASûAûWHOLEûHASûBECOMEû
and autonomy, according to often rely too heavily on these #OMMISSIONûCALLEDûFORûGREATERû more important as the amount
Martin Maloney, secretary EVALUATIONSû-ALONEYûARGUES OVERSIGHTûOFû%3'ûRATINGSûANDûDATAû of money backing these
GENERALûOFû-ADRID
BASEDû)/3#/ “In a mature, well-serviced providers in a 53-page report apparently benevolent concepts
Government regulators and market, ratings are part of a DETAILINGûITSûCONCERNSû4HEûREPORTû HASûGROWNûQUICKLYû4HEûGLOBALû
multinational groups, including broader market analysis and found, among other things, that MARKETûFORû%3'ûBONDSûFORû
the International Organization assessment process where there was a lack of clarity about example, hit a record
OFû3ECURITIESû#OMMISSIONSûHAVEû information is combined and what ratings or data products 53BNûINûûWITHûû
been closely vetting the market digested according to the intend to measure and a lack of year-on-year growth, according
FORû%3'ûlNANCEûAMIDûAûSURGEûOFû investment appetites of customers,” transparency about the methods TOû2ElNITIVûDATAû!SûVOLUMESû
INTERESTûANDûDEALûVOLUMEû
!MONGûTHEûCHALLENGESûINûTHISû
nascent industry has been the
confusing sets of standards and
methodologies that go into
Maloney said in a written response
TOû)&2ûQUESTIONSûh7EûHAVEûTOOû
much reliance on ratings when it
COMESûTOû%3'ûMATTERSûATûTHEû
moment because that ecosystem of
USEDûTOûPRODUCEûTHEûRATINGSû
TRICKLE-DOWN EFFECT
“They have to build trust
through good management of
CONTINUEûTOûSURGEûTHEû3%#ûANDû
other agencies are expected to
provide guidance on crucial
practices like corporate
disclosures that are intended

6 International Financing Review January 22 2022

 For daily news stories
@ visit www.ifre.com

“If [Microsoft] tapped the

bond market it would be just to
announcement, S&P said it would
keep its stable outlook on Early exit for AHO
really even out their capital -ICROSOFTSûRATINGûUNCHANGEDû
STRUCTUREvûSAIDû#OONSûh9OUû
have to issue debt just to keep
up with the growth of the
EQUITYv
“While US$68bn sounds like a
lot of money, in the context of
after double fault
-ICROSOFTSûCASHmOWûANDûCASHû „ People & Markets New strategy remains in place
on hand, it’s a very manageable
4HOUGHûTHEû!CTIVISIONû
purchase underlined worries
Microsoft may be becoming
more open to acquisitions, any
issuance that arose from the
/SORIOûHASûBEENû
deal would offer investors a
welcome opportunity to stock
up on the tech company’s
bonds, prized by investors for
THEIRûDEFENSIVEûCHARACTERISTICS
û BEENûCHIEFûOPERATINGûOFlCERûOFû
CASH COW
Microsoft has not been in the
primary market since the Trump
administration passed tax reform
legislation allowing companies to
AMOUNTvûSAIDû.ATHANIELû,IDDLEû
senior research analyst for
#OLUMBIAû4HREADNEEDLE
“While US$68bn
sounds like a lot of
money, in the context
of Microsoft’s cashflow
and cash on hand, it’s
a very manageable
amount”
(EûNOTEDûTHATûWHENû-ICROSOFTû
BY CHRISTOPHER SPINK
CREDIT SUISSE’s plan to shrink its
investment bank and overhaul
its culture to get everyone
focused on risk will continue
despite the strategy’s major
architect leaving the bank after
less than nine months, following
HISûFAILUREûTOûSTICKûTOû#OVID
QUARANTINEûRULES
&ORMERû,LOYDSûCHIEFûEXECUTIVEû
Antonio Horta-Osorio took over as
#REDITû3UISSEûCHAIRMANûINû-AYû
and was tasked with setting a
new strategy following the
such a big risk and culture
change, the bar has been set
high on these issues,” one
INSIDERûSAID
(ORTA
replaced by Axel Lehmannû
,EHMANNûONLYûJOINEDûTHEûBOARDû
in October as chair of the risk
COMMITTEEû(EûHADûPREVIOUSLYû
arch-rival UBS and previously
spent 20 years at Zurich
Insurance Group, including as
CHIEFûRISKûOFlCER
(ISûEXPERIENCEûINûRISKûSHOULDû
equip him well for the
REPATRIATEûOVERSEASûPROlTSûATûAû purchased professional services DEPARTUREûOFûFORMERû#%/û CHALLENGESûATû#REDITû3UISSEûANDû
LOWERûTAXûRATEûTHANûBEFORE NETWORKû,INKED)NûFORû Tidjane Thiam for spying on his the bank said there was no plan
Yet even if Microsoft does end up
lNANCINGûSOMEûORûALLûOFûTHEû
!CTIVISIONûACQUISITIONûTHROUGHû
debt, the size of Microsoft’s cash
hoard should more than make up
for the increase in leverage,
53BNûINûûITSûGROSSû
LEVERAGEûROSEûTOûAROUNDûû
times but it was still able to
KEEPûITSû4RIPLEû!ûCREDITûRATINGû
,EVERAGEûHASûSINCEûDROPPEDûTOû
ûTIMESû!FTERûTHEû!CTIVISIONû
COLLEAGUESû0ROBLEMSûATûTHEûBANKû
escalated after supply chain
lNANCEûARRANGERû'REENSILLû
collapsed and prime broking
CLIENTû!RCHEGOSûFAILED
(ORTA
to change the strategy set out
TWOûMONTHSûAGO
“We have set the right course
with the new strategy and will
continue to embed a stronger
/SORIOûSETûOUTûTHEû RISKûCULTUREûACROSSûTHEûlRMvû
diminishing the risk of ratings acquisition, gross leverage is board’s revival plan in ,EHMANNûSAIDû4HEûGROUPûWOULDû
agencies snatching away the Triple UNLIKELYûTOûPUSHûABOVEûû .OVEMBERû)TûPROPOSEDûPULLINGû be able to achieve its goals “in a
!ûRATINGû!FTERûTHEûACQUISITIONû TIMESûSAIDû,IDDLE „ out of prime services and cutting timely and disciplined manner,
back structured derivatives, so WITHOUTûDISTRACTIONvûHEûSAID
the investment bank, under new
BOSSû#HRISTIANû-EISSNERûCOULDû STRATEGIC CUTS
to improve the quality of CONmICTSûISûNOTûTHEûONLYûWAYûTOû focus on supporting wealth Most analysts believe there is
DATAûTHATûINVESTORSûANDû%3'û MANAGEûTHEMû-ALONEYûSAID management, the overall bank’s unlikely to be any major
ratings providers use to gauge “It is quite feasible to BIGGESTûACTIVITY departure from the plan for
ASSETS MANAGEûCONmICTSûOFûINTERESTvû "UTû(ORTA
/SORIOûRESIGNEDûLASTû NOWûh)ûCANTûSEEûHOWûTHEûBOARDû
h)ûAMûVERYûCONlDENTûTHATûASû
we improve the quality of issuer
û strategy that was announced
information there will be a
trickle-down effect into ratings,”
HEûSAIDûh)NDEEDûMANAGINGû week after reports he had WHICHûOFlCIALLYûSUPPORTEDûTHEû
CONmICTSûOFûINTERESTûISû mOUTEDû3WITZERLANDSû#OVID
essential to developing RULESûBYûVISITINGû,ONDONûINû*ULYû very recently, can change it just
viable business models in to watch the Wimbledon tennis because the chairman attended
-ALONEYûSAID MANYûASPECTSûOFûlNANCIALû ANDû%UROSûFOOTBALLûlNALû4HEû THEû%UROSûlNALSvûSAIDû*EROMEû
4HEû%3'ûRATINGSûINDUSTRYûHASû
already been affected by the
regulatory changes made to the
credit ratings industry in the
WAKEûOFûTHEûûCREDITûCRISISû
Many of the newer rules related
to credit spelled out in the 2010
$ODD
&RANKû!CTûCANûAREûBEINGû
SERVICESv
Maloney said he is “quite
hopeful” that the problems
)/3#/ûhSOûFORCEFULLYûCALLEDûOUTvû
INûITSû.OVEMBERûREPORTûWILLûBEû
eventually addressed, in part
because many of submissions it
received in the consultation
BANKûSAIDûINû.OVEMBERûHEûHADû ,EGRASûHEADûOFûRESEARCHûATû
breached Swiss rules and the lNANCIALSûSPECIALISTûFUNDû
BOARDûCOMMISSIONEDûAûREPORT MANAGERû!XIOM
“I regret that a number of my But some expect further
personal actions have led to TWEAKS
DIFlCULTIESûFORûTHEûBANKûANDû “It’s hard to see the new top
compromised my ability to management sticking with that
represent the bank internally plan,” said Darko Kapor, partner
used to at least help guide the process showed “an industry ANDûEXTERNALLYvû(ORTA
/SORIOû ATûBANKINGûCONSULTANTû4RICUMEN
%3'ûINDUSTRY grappling with change rather SAIDû(EûWILLûRECEIVEû3&RMû (EûSAIDûTHEûBANKûMIGHTûPREFERû
THANûINûDENIALv 53M ûFORûHISûTIMEûATûTHEû to stick with increasing
QUITE HOPEFUL “Regulators and the industry BANK headcount in capital-light areas
In both industries – as in the SHOULDûPRESSûTHEû%3'ûRATINGSû (ORTA
/SORIOSûACTIONSûDREWû such as advisory and primary
lNANCIALûMARKETSûASûAûWHOLEûnûITû sector to work towards criticism – especially after capital markets, largely to
is also possible to manage any consistency of practices across reports he used a company jet to support the wealth management
INHERENTûCONmICTSûOFûINTERESTû ALLûTHEIRûRATINGSûWORKvûHEûSAIDû mYûTOûAûFAMILYûHOLIDAYûINûTHEû CLIENTSû4HATûLEFTûQUESTIONSûOVERû
that may arise from practices “In a sense, we are knocking on Maldives – making his position BUSINESSESûTHATûDIDûNOTûlTûWITHû
like an issuer-pays model for an open door with the industry UNTENABLE that, such as securitisation and
RATINGSû%LIMINATINGûTHEû ONûTHISûONEv „ “The bank is in the midst of ASSETûMANAGEMENT „

International Financing Review January 22 2022 7

Top news
SPACs struggle to find acquisition
targets in Asia
„ People & Markets Blank-cheque companies run out of road in the region as sentiment turns

BY THOMAS BLOTT h%VENûFORûTHEûBETTER QUALITYû preponderance of early-stage CYBERSECURITYûRULESû"UTûTHEû

sponsors, the target companies lRMSûINû!SIA INTERESTûINûOTHERûPARTSûOFû!SIAûINû
Blank-cheque companies under are asking, can you bring real Second is the PARTICULARû3OUTH %ASTû!SIAû
PRESSUREûTOûlNDûACQUISITIONû INSTITUTIONALûCAPITALûTOûDOûAû0)0%û underperformance of some REMAINSûHUGEvûSAIDû3AMSONû,Oû
targets after raising mammoth to back up the redemptions? If HIGH PROlLEû30!#ûCOMBINATIONSû HEADûOFû!SIAû-!ûATû5"3
amounts of capital during the you can’t, there’s no deal to be INVOLVINGû!SIANûCOMPANIESûGRAB
RECENTû30!#ûBOOMûAREûMAKINGû DONEû4HEREûWILLûSTILLûBEûDE 30!#û HOLDINGSûRECORDû53BNû WANING INVESTOR INTEREST
LITTLEûPROGRESSûINû!SIAûDESPITEû transactions that get done but MERGERûWITHû.ASDAQ LISTEDû !CCORDINGûTOû2ElNITIVûDATAû
earlier hopes that the region THEûPASTûEUPHORIAûISûGONEv ALTIMETER GROWTH is the poster THEREûWEREûû30!#û
would provide a fertile hunting child for this after the combinations last year for a
GROUND PACKING A PUNCH company’s share price fell by CUMULATIVEûTOTALûOFû53BNû
!ûNUMBERûOFû53 LISTEDû30!#Sû )TûISûDIFlCULTûTOûPUTûANûEXACTû more than half since it went Most bankers do not expect
BACKEDûBYû!SIANûSPONSORSûORû lGUREûONûTHEûNUMBERûOFû PUBLICûLASTûMONTH volumes to be as high this year
WITHû!SIA FOCUSEDûMANDATESûHADû SPONSORSûLOOKINGûATû!SIAûANDûTHEû because last year’s total was
been looking to cash in on the amount of capital chasing deals “It will undoubtedly skewed by a few sizeable deals,
region’s most promising tech in the region, but there is no take a bit more time notably Grab, although several
start-ups, drawn by favourable DOUBTûITûISûSIGNIlCANT before we see deals said they expected the number
demographic and economic !CCORDINGûTOû2ElNITIVûDATAû of combinations to increase
trends in fast-growing markets 674 sponsors raised a total of
from China again, SLIGHTLYûTHISûYEAR
SUCHûASû#HINAû)NDIAûANDû3OUTH 53BNûFROMû30!#û)0/SûLASTû at least until we Indeed, many sponsors are
%ASTû!SIA year, more than double the get more clarity under pressure to complete
(OWEVERûINCREASINGû number of deals and total around the DEALSû3PONSORSûTYPICALLYûHAVEûû
REGULATORYûUNCERTAINTYûINû#HINAû proceeds raised in 2020, the cybersecurity rules” months to complete an
waning investor interest due to PREVIOUSûRECORD acquisition or refund investors
regulatory changes in the US, ,AWûlRMû7HITEûû#ASEû and given that they generally
the underperformance of some ESTIMATESûTHATûMOREûTHANûûOFû want a buffer of six months to a
!SIANûCOMPANIESûTHATûHAVEûGONEû 30!#SûLAUNCHEDûFROMû*ANUARYû year to get regulatory sign-off,
PUBLICûTHROUGHû30!#SûVIAûSO 2020 to July 2021 were focused RENEW ENERGY GLOBAL, which THEûSTRONGû30!#û)0/ûVOLUMESûINû
CALLEDû30!#ûCOMBINATIONSûORû ONûTARGETSûINû!SIA 0ACIlCûORûHADû was formed out of the merger 2021 mean that bankers expect
DE 30!#S ûANDûTHEûSHEERûNUMBERû the backing of sponsors from the BETWEENû2E.EWû0OWERûTHEû DE 30!#ûTRANSACTIONSûTOûREMAINû
of blank-cheque companies REGION Indian renewable energy ROBUSTûTHISûYEAR
chasing deals have dimmed .OTûALLû!SIANûSPONSORSû producer backed by investors 4HEûDIFlCULTYûFORûSPONSORSûWILLû
THESEûPROSPECTS though, focus on targets in the including Goldman Sachs, and BEûTOûlNDûTARGETSûTHATûSTILLûWANTû
REGIONûCITIC CAPITAL, for example, RMG ACQUISITION CORP II at an TOûGOûPUBLICûVIAûAûCOMBINATIONû
THEûlRSTûSTATE OWNEDûCOMPANYû ENTERPRISEûVALUEûOFû53BNû Sponsors have previously
“Even for the better-
FROMû#HINAûTOûLISTûAû30!#ûAGREEDû HASûHARDLYûFAREDûMUCHûBETTERû)TSû TARGETEDûEARLY STAGEûPRE PROlTûORû
quality sponsors, the INû*UNEûTOûMERGEûITSû#ITICû#APITALû SHAREûPRICEûISûDOWNûûSINCEûITû pre-revenue companies, which
target companies !CQUISITIONû#ORPûWITHûQUANERGY LISTEDûINû!UGUST tend to have few other options
are asking, can you SYSTEMS, a US-based supplier of Those declines follow aside from staying private and
bring real institutional technology for self-driving cars, weakness in the broader market, RAISINGûlNANCINGûATûLOWERû
capital to do a ATûANûIMPLIEDûVALUEûOFû53BNû THOUGHûTHEû$E 30!#û)NDEXû VALUATIONS
INûONEûOFûTHEûMOREûHIGH PROlLEû which tracks the 25 largest In contrast, established
PIPE to back up the DEALS companies that have completed companies have more options
redemptions? If you (OWEVERûTHEûINTRINSICûFOCUSûOFû AûDE 30!#ûWITHINûONEûYEARûISû including IPOs and many of
can’t, there’s no deal 30!#SûONûFAST GROWINGûTECHû DOWNûûINûTHEûPASTûûMONTHS them are now questioning the
to be done” companies gives a natural push The third – and most MERITSûOFûMERGINGûWITHûAû30!#û
TOû!SIAûWHICHûHASûANûABUNDANCEû important – factor is the BANKERSûSAYû7HEREASûPREVIOUSLYû
OFûTHEM increasing regulatory 30!#SûWEREûTOUTEDûFORûTHEIRû
“In the past, there were a lot But three factors are making UNCERTAINTYûINû#HINAûANDû EFlCIENCYûANDûCERTAINTYûAROUNDû
OFû30!#SûINCLUDINGûAûFEWûFROMû !SIAûAûCHALLENGINGûREGIONûTOû geopolitical tensions with the pricing, those advantages are no
sponsors with no track record in CARRYûOUTûDE 30!#ûTRANSACTIONSû US, which effectively means LONGERûSOûCLEAR CUT
!SIAûTHATûWEREûNONETHELESSû First, sponsors are increasingly !SIASûLARGESTûMARKETûISûCURRENTLYû Bankers say that the
looking at target companies in turning their attention towards OFF LIMITSûTOû53 LISTEDû30!#S timeframe for getting deals done
this region, but that’s no longer more established companies due “It will undoubtedly take a bit is getting longer, partly due to
THEûCASEvûSAIDû2OHITû#HATTERJIû to market volatility and that more time before we see deals the fact that regulators in the US
CO HEADûOFû-!ûFORû!SIA 0ACIlCû limits the pool of acquisition FROMû#HINAûAGAINûATûLEASTûUNTILû are becoming much stricter due
ATû*0û-ORGAN candidates because of the we get more clarity around the to concerns about last year’s

8 International Financing Review January 22 2022

 For daily news stories
@ visit www.ifre.com

FRENZYû4HISûBEGANûINû!PRILûLASTû
year when the US Securities and First IPOs heat up Asia SPAC race
%XCHANGEû#OMMISSIONûSAIDûTHATû
warrants would no longer be „ Equities Hong Kong plays catch-up as Singapore’s first blank-cheque companies start trading
TREATEDûASûEQUITY
BY FIONA LAU, S ANURADHA
“We have seen !SIASû30!#ûMARKETûSAWûTHEûSTARTû
recently, in some of real competition last week, as
non-Asian deals, (ONGû+ONGûRECEIVEDûITSûlRSTû
innovations to get 30!#û)0/ûAPPLICATIONûWHILEû
around the difficulties 3INGAPORESûlRSTûLISTEDûBLANK
investors and multi-strategy +ONGû30!#ûREGULATIONSûANDû
cheque companies started
#APITALû0ARTNERSûCLOSEDûBOOKSû
FORûAû3MûDEALûONû4HURSDAYû
The transaction was multiple
times covered with demand
from regional long-only
investors, ultra-high-net-worth
FUNDSû
Aû(ONGû+ONGû)0/ûOFûAROUNDû
US$200m that may come in the
lRSTûQUARTER
HIGHER BAR
4HEûMOREûDEMANDINGû(ONGû
fading investor interest in the
in raising PIPE TRADING "ANKERSûINû(ONGû+ONGû instrument globally, however,
financing such as !ûFOCUSûONû#HINESEû meanwhile, are busy selling the may mean the city will not see a
issuing convertible acquisitions, which are off-limits 30!#ûIDEAûTOû#HINESEûSTATE
LONGûLINEûOFû30!#ûCANDIDATESû
bonds” FORû53û30!#SûISûEXPECTEDûTOûGIVEû
(ONGû+ONGû30!#SûAûSTRONGû
selling point, but a ban on sales
to retail investors could hamper
3PONSORSûAREûALSOûlNDINGûITû )0/S
MOVERû some strict requirements on de-
OWNEDûCOMPANIESûBUYOUTûlRMSû
ANDûFAMILYûOFlCESûOFû(ONGû+ONG
#HINAûTYCOONS
h"EINGûONEûOFûTHEûlRSTû30!#Sû
INûTHEûCITYûMAYûENJOYûlRST
h4HEû(ONGû+ONGûRULESûSETûAû
minimum fundraising amount
and do not allow retail investors
TOûINVESTûINû30!#Sû4HEREûAREûALSOû
INCREASINGLYûDIFlCULTûTOûRAISEû AQUILA ACQUISITION CORPûAû30!#û advantage, but we do believe 30!#Sû!LLûTHESEûWILLûLIMITûTHEû
0)0%ûlNANCINGûWHEREû BACKEDûBYû#HINAû-ERCHANTSû THEREûISûDEMANDûFORû#HINA
DEVELOPMENTûOFû30!#SûINûTHEû
institutional investors acquire a
MINORITYûSTAKEûINûAû30!#ûJUSTû
prior to the combination,
because of waning investor
INTERESTûINûTHEûPRODUCTû4HISû
means there is less certainty for
"ANKûONû-ONDAYûlLEDûFORûAû FOCUSEDû30!#SûGIVENûLISTINGûINû CITYvûSAIDûANû%#-ûBANKER
(ONGû+ONGû)0/ûWHICHûPEOPLEû the US is no longer an option,”
familiar with the situation said said a person involved in the “The Hong Kong
could raise about US$300m in !QUILAûDEAL rules set a minimum
THEûlRSTûQUARTER
4HEû30!#ûPLANSûTOûINVESTûINû TIGHTENED SCRUTINY
fundraising amount
target companies around technology companies in new 3INCEûTHEû$IDIû'LOBALûlASCOûTHEû and do not allow
pricing, particularly during a economy sectors, such as green 53û3ECURITIESûANDû%XCHANGEû retail investors to
time when redemptions arealso energy, life sciences and #OMMISSIONûHASûTIGHTENEDû invest in SPACs. There
RISINGûFORûTHEûSAMEûREASON advanced technology and SCRUTINYûOVERû#HINESE
RELATEDû are also some strict
Diminishing investor interest MANUFACTURINGûINû!SIAûWITHûAû DEALSû30!#SûBACKEDûBYû#HINESEû
requirements on de-
has prompted some sponsors to FOCUSûONû#HINA sponsors or target acquisitions
RETHINKûTHEIRûAPPROACHûHONY !QUILAûISûTHEûlRSTûBLANK
INû#HINAûFACEûROUNDûAFTERûROUNDû
SPACs. All these will
CAPITAL ACQUISITION, a blank- CHEQUEûCOMPANYûTOûlLEûFORûAû OFûENQUIRIESûFROMûTHEûREGULATORû limit the development
cheque company focused on (ONGû+ONGû)0/ûAFTERûTHEûCITYSû KEYARCH ACQUISITION CORP, backed of SPACs in the city”
healthcare and consumer BOURSEûOPERATORû(ONGû+ONGû BYû'REATERû#HINAûFOCUSEDûASSETû
COMPANIESûINû#HINAûANDû %XCHANGESûANDû#LEARINGû management company Keywise Retail investors are barred
GATEWAY STRATEGIC ACQUISITION,
WHICHûISûBACKEDûBYû!SIANû
PRIVATEûEQUITYûlRMû'AWû#APITALû
Partners, are among those that
have cut the size of their IPOs
AFTERûLASTû!PRILSûANNOUNCEMENTû
announced last month that
30!#SûWOULDûBEûALLOWEDûTOûLISTû
FROMû*ANUARYû
(ONGû+ONGûISûCATCHINGûUPû
with regional rival Singapore to
offer investors a new investment
#APITALûWASûONLYûABLEûTOûlLEûFORûAû
53Mû.ASDAQû)0/ûAFTERûITûSAIDû
it would not combine with a
target that is based in or has its
principal business operations in
#HINAûINCLUDINGû(ONGû+ONGûANDû
FROMûINVESTINGûINû30!#SûINû(ONGû
Kong and the minimum
FUNDRAISINGûSIZEûISûSETûATû(+BNû
53M û7HILEûTHEû53ûANDû
Singapore both allow retail
investors to invest in blank-
FROMûTHEû3%#ûALTHOUGHû0)0%û
fundraising still remains
CHALLENGING
“We have seen recently, in
SOMEûNON
tool, even though appetite for -ACAU  cheque companies, the former
30!#SûHASûWANEDûFROMûTHEû !QUILAûBELIEVESû(ONGû+ONGûISû has a minimum fundraising size
FRENZYûOFûEARLYûLASTûYEAR THEûRIGHTûMARKETûINûWHICHûTOûLISTû of US$50m–$75m and the latter
3INGAPOREûHADûITSûlRSTûTWOû h"ENElTINGûFROMûPOLICYûANDû 3Mû53M 
!SIANûDEALSû 30!#SûLISTEDûLASTûWEEKûANDûONEû regulatory support, such as the &ORû!QUILAû#-"û)NTERNATIONALû
innovations to get around the more is on track for completion CONSTANTLYûEVOLVINGû(ONGû+ONGû !SSETû-ANAGEMENTûANDû!!#û
DIFlCULTIESûINûRAISINGû0)0%û THISûMONTHû4EMASEK
OWNEDû listing framework, the recently -GMTû(OLDINGûAREûTHEû
lNANCINGûSUCHûASûISSUINGû VERTEX TECHNOLOGY ACQUISITION CORP INTRODUCEDû30!#ûLISTINGûREGIMEû PROMOTERSû#-")û!-ûISûWHOLLYû
convertible bonds, which OPENEDûûUPûONû4HURSDAYûANDû ANDû3TOCKû#ONNECTû;THE=û(ONGû OWNEDûBYû#-"û)NTERNATIONALû
actually illustrates one of the ENDEDûTHEûDAYûATû3ûû Kong market is expected to WHICHûISûINûTURNûOWNEDûBYû#HINAû
advantages of going public above the issue price after continue to promote more -ERCHANTSû"ANKûWHILEû!!#û
VIAûAû30!#ûTHEûmEXIBILITYû"UTû RAISINGû3Mû53M ûFROMû comprehensive funding options, Mgmt includes members of the
in an ideal world, the target THEûmOATû4IKEHAU
BACKEDû thereby attracting high growth 30!#SûMANAGEMENTûTEAMûANDû
would want to see enough PEGASUS ASIAûDEBUTEDûûHIGHERû and innovative companies and advisory board, and all of its
institutional support in the on Friday following a S$150m INVESTORSvûITûSAIDûINûAûlLINGû EXECUTIVEûDIRECTORS
FORMûOFûAû0)0%vûSAIDû*OHNSONû )0/ "ESIDESû!QUILAûAû30!#ûBACKEDû CMB International and Morgan
#HUIûCO
HEADûOFû!SIA
0ACIlCû NOVO TELLUS ALPHA ACQUISITION, BYû0RIMAVERAû#APITALûANDûTHEû Stanley are the joint sponsors,
equity capital markets at sponsored by Singapore-based ASSETûMANAGEMENTûUNITûOFû!"#û global coordinators and
#REDITû3UISSE „ PRIVATEûEQUITYûlRMû.OVOû4ELLUSû International is also considering BOOKRUNNERSûOFûTHEû)0/ „

International Financing Review January 22 2022 9

Top news

Mammoth Telecom Italia buyout

is thrust into doubt
„ Bonds/Loans New boss puts KKR on hold as he outlines a different path for Italy’s former telephone monopoly

BY GARETH GORE, ELEANOR DUNCAN õûFOLLOWINGûNEWSûOFû It has nonetheless attracted making a higher offer – a theory
,ABRIOLASûPLANû!LSOûWEIGHINGû suitors: four years ago, Vivendi in keeping with remarks from
One of the biggest leveraged on the stock are the upcoming ANDû%LLIOTTû-ANAGEMENTûTRIEDûTOû Vivendi that the bid does not
buyouts ever proposed is now in
doubt after TELECOM ITALIA, the
target of a €33bn takeover
approach from private equity
giant KKR, began to formally
CONSIDERûANûALTERNATIVEûFUTURE
General manager Pietro
presidential election in Italy and
concerns that the government
may step in to stop the takeover
of a critical piece of national
INFRASTRUCTURE
“The situation is not stable,”
said one Italian banker close to
WRESTûCONTROLû0RIORûTOûTHATû
4ELEFONICAûANDû!44ûBOTHûTRIEDû
TOûBUYûTHEûBUSINESS
“The company needs a
shake-up and having a
shareholder group which is not
on the same page does not
REmECTûTHEûCOMPANYSûTRUEû
VALUEû"UTûITûISûUNCLEARûWHETHERû
THEû0%ûlRMûISûWILLINGûORûABLEûTOû
UPûITSûBID
The €33bn offer implies an
ENTERPRISEûVALUEûOFûlVEûTIMESû
%BITDAû'OINGûBEYONDûTHATûCOULDû
,ABRIOLAûWHOûTOOKûOVERûDAY
TO
THEûCOMPANYûh9OUûHAVEûTHEû++2û
day management at the
COMPANYûINû.OVEMBERûAFTERû
#%/û,UIGIû'UBITOSIûWASûOUSTEDû
in a boardroom coup, on
Tuesday outlined to directors his
own plans to split up the former
telephone monopoly and spin
OFFûASSETSûTOûBOOSTûPROlTS
While the board won’t
formally consider the new plan
until March, it has been seen as
a sign that the board won’t lend
ITSûSUPPORTûTOûAûõûINFORMALû
bid from KKR made in
HELPvûTHEûBANKERûADDEDûh4HEYû
bid, but someone could still
mount a counter-bid, which
could include some of the
CURRENTûSHAREHOLDERSû!NDûASû
this is a strategic asset, you also
HAVEûTHEûGOVERNMENTûINVOLVEDv
The banker added that the
company has consistently
missed targets over the years
and that reform was much
NEEDED
TELECOM ITALIA'S LONG SLUMP
CLOSING SHARE PRICE
BEûDIFlCULTûFORûBANKSû!NDûWHILEû
NEEDûTOûAPPOINTûAûNEWû#%/ûBUTû
SHAREHOLDERSûAREûDISAGREEINGû)Tû
is not a situation that is easy to
READû!DDEDûTOûTHATûWEûHAVEûAû
POLITICALûSITUATIONûWHICHûISûmUID
h)TûISûQUITEûDIFlCULTûTOû
SPECULATEûONûWHATûCANûHAPPENv
TAKING SIDES
The uncertainty over the future
of Telecom Italia will create a
headache for banks, which will
potentially have to choose
WHICHûTRACKûTOûSUPPORTû"OTHûTHEû
++2ûSHOULDNTûHAVEûTOûRElNANCEû
all of Telecom Italia’s debt
because of a lack of change-of-
control clauses, it will likely
lNANCEûITSûEQUITYûOFFERûWITHûDEBT
Fitch has already warned that
increasing the telecom operator’s
leverage further will have
NEGATIVEûRATINGûCONSEQUENCESû
Upping the KKR bid further would
only increase that pressure, and
MAYûMAKEûlNANCINGûTHEûDEALû
PROHIBITIVELYûEXPENSIVE
Still, bankers say the
.OVEMBERû6IVENDIûONEûOFû
Telecom Italia’s largest
shareholders, has already said
THEûBIDûDOESûNOTûREmECTûTHEû
COMPANYSûVALUE
The KKR offer gives the
company an equity value of
õBNû4ELECOMû)TALIAûALSOûHADû
õBNûOFûDEBTûATûTHEûENDûOFû
September, giving the company
a total enterprise value of over
€33bn, which would rank it as
one of the largest leveraged
BUYOUTSûEVER
Shares in the Italian telecoms
provider sank to just above
++2ûANDû,ABRIOLAûOPTIONSûWILLûBEû
€
highly lucrative, with advisory
10
work and potentially large debt
RElNANCINGSûTOûBEûDONE
8 “There are so many different
routes that deal could take that
6
ITûISûDIFlCULTûTOûKNOWûATûTHISû
stage,” said one leveraged
lNANCEûBANKERûWHOûISûNOTû
4 working directly with Telecom
)TALIAûh)TûCOULDûBEûAûGIANTû,"/û
2 trade, it could be smaller, there
COULDûBEûASPECTSûOFûITv
There is the possibility that
0
2000 2010 2020 THEû,ABRIOLAûSTRATEGYûISûMERELYû
Source: Refinitiv designed to push KKR into
LEVERAGEDûlNANCEûMARKETû
REMAINSûDEEPLYûLIQUIDû3OMEû
think they won’t necessarily
have to pick sides because the
deal would be so large that
almost all of the big investment
banks would need to be brought
INûTOûMAKEûTHEûNUMBERSûWORK
h)TSûDIFlCULTûTOûKNOWû;WHOûTOû
line up behind],” said another
BANKERûh4HATûDISCUSSIONûISûALLû
around market capacity and
where demand is going to come
FROMû"UTûITSûSOûBIGûTHATûMOSTûOFû
the banks in the market will
NEEDûTOûBEûAROUNDûITv „

Reach the people who matter

For more information on the various advertising and sponsorship opportunities
available within IFR, please contact: Europe & USA:
Leonie Welss, leonie.welss@refinitiv.com, tel: +44 (0)20 4530 3073
Asia & Middle East: Shahid Hamid, shahid.hamid@refinitiv.com, tel: +65 975 55031

10 International Financing Review January 22 2022

 People

12
&
HSBC makes
senior
Markets
 Microsoft’s
US$69bn bid  Plans to
include
sustainability for Activision Blizzard nuclear in the EU
appointments under signals the 2021 M&A Taxonomy for ESG
its push to finance the boom may run longer continue to split
transition to net zero opinion

„ FRONT STORY RESULTS

US banks IB revenue surges 40%

2021 advisory and underwriting revenues up 40%, led by M&A
“We had a blowout year,” said MORGAN 2EVENUEûFROMû-!ûADVISORYûFORûTHEûYEARû THEûBIGûlVEûnûBUTûWASûPROBABLYûTHEûMOSTû
STANLEY chief executive James Gorman WASûUPûûACROSSûTHEûlVEûBANKSûHITTINGû welcome result as the business bounced
summing up the year in investment banking 53BNû)Nû1ûALONEû-!ûADVISORYûFEESû back.
for 2021. He wasn’t alone. JUMPEDûûTOû53BN 2EVENUEûFROMûEQUITYûUNDERWRITINGûFORûTHEû
!LLûlVEûOFûTHEûTOPû53ûBANKSûHADûAûBLOWOUTû 'OLDMANûWASûTOPû-!ûDOGûAGAINûWITHû YEARûWASûUPûûACROSSûTHEûlVEûBANKSûTOû
YEARûONûTHEûBACKûOFûAûNEARLYû53TRNû-!û ADVISORYûREVENUEûOFû53BNûUPûûFROMû 53BNûWITHû'OLDMANûTAKINGûTHEûLARGESTû
market that drove gains across investment û*0û-ORGANûCAMEûINûSECONDûWITHû HAULûOFû53BNûFORûTHEûYEARûUPûûFROMû
banking. ADVISORYûREVENUEûOFû53BNûUPûûONûTHEû û-ORGANû3TANLEYûRANûAûSTEPûBEHINDûWITHû
The banks, also including GOLDMAN SACHS, year. REVENUEûFROMû%#-ûRISINGûûTOû53BNû
JP MORGAN, BANK OF AMERICA and CITIGROUP, -!ûACTIVITYûREMAINSûELEVATEDûACROSSû for the year.
REPORTEDû53BNûINûFEEûREVENUEûFROMû geographies and industry groups, with
INVESTMENTûBANKINGûLASTûYEARûUPûûORû particular strength in technology, media
53BNûFROMû and telecoms, industrials and healthcare,
Revenue from M&A advisory for
Goldman had the best year with Goldman said. the year was up 75% across the
INVESTMENTûBANKINGûREVENUEûSURGINGûû &ORû*0û-ORGANû1ûWASûTHEûTHIRDû five banks, hitting US$17.6bn
FROMûTHEûYEARûBEFOREûTOû53BNû*0û CONSECUTIVEûALL
TIMEûRECORDûQUARTERûFORû
-ORGANûEARNEDû53BNûUPûûWHILEû
-ORGANû3TANLEYûEXPERIENCEDûAûûBUMPûINû
SIZEDû-!ûDEALSû4HATû
FEESûANDûPULLEDûINû53BNûINûINVESTMENTû
banking revenue for the year.
advisory fees, which it said had been driven
PARTICULARLYûBYûMID
spills over to other areas too, such as helping
$#-ûFEESûFORûACQUISITIONûlNANCINGû
)NûTHEûlNALûQUARTERûOFûTHEûYEARûTHEûBANKSû "OF!SûANNUALûADVISORYûREVENUEûROSEûû Activity slowed at the end of the year,
PULLEDûINû53BNûINûINVESTMENTûBANKINGû TOû53BNû)TûWASûTHEûSMALLESTûGAINûAMONGû HOWEVERûWITHû%#-ûREVENUESûFORûTHEûlVEû
REVENUEûUPûûFROMûTHEûFOURTHûQUARTERûOFû BANKSûINû1ûDOWNûûTOû53BNû4HATû
2020. 2021 BOOM FOR M&A ADVISORY AND INCLUDEDûANûûDROPûINû1û%#-ûREVENUESûATû
!GAINû'OLDMANûHADûTHEûBESTûQUARTERûWITHû UNDERWRITING; FY REVENUES VS 2021 'OLDMANûBUTûITûSTILLûEARNEDû53BNûITSûlFTHû
REVENUEûOFû53BNûUPûûANDûITSûBESTû % change CONSECUTIVEûQUARTERûEARNINGûMOREûTHANû
QUARTERûEVERû4HEûBANKûEDGEDûOUTû*0û-ORGANû 100 BNûINû%#-û-ORGANû3TANLEYSû1û%#-û
WHICHûPULLEDûINû53BNûINûINVESTMENTû REVENUEûFELLûûTOû53M
BANKINGûFEESûINû1ûUPûûONûTHEûYEAR 80 Revenue from debt underwriting in 2021
-ORGANû3TANLEYûROUNDEDûOUTûTHEûTOPûTHREEû ACROSSûTHEûlVEûBANKSûROSEûûTOû53BNû
WITHû53BNûINûINVESTMENTûBANKINGû LEDûBYû*0û-ORGANûWHICHûPULLEDûINû53BNû
60
REVENUEûINû1ûUPûûFROMûTHEûYEARûBEFOREû UPûûONûTHEûYEARûBEFORE
the smallest increase among the top banks. )Nû1û$#-ûREVENUESûROSEûûACROSSûTHEû
Citi’s investment banking revenue jumped 40 lVEûBANKSûTOû53BNû*0û-ORGANûLEDûTHEû
ûINûTHEûQUARTERûTOû53BNûANDû"OF!Sû PACKûWITHûAûûYEAR
ON
YEARûRISEûTOû
ROSEûBYûAûQUARTERûTOû53BN 20 53BNû"OF!ûHADûREVENUEûOFû53MûINû
THEûQUARTERûUPûûONûSTRENGTHûINû
RECORD FEES investment grade issuance and leverage
0
“Investment banking delivered outstanding JPM
Citigroup
BofA Morgan
Goldman Stanley US
lNANCEûANDû'OLDMANûFOLLOWEDûWITHû
results in 2021,” said Goldman chief Sachs avg 53MûINû$#-ûREVENUEûUPûAûWHOPPINGû
lNANCIALûOFlCERû$ENISû#OLEMANûONûAûCALLû DCM ECM M&A ûFROMûTHEûYEAR
AGOûQUARTER
with analysts. Source: Bank results, IFR calculations Philip Scipio

International Financing Review January 22 2022 11

“I haven’t seen a battle this intense in the
three decades I’ve been covering banking”
VETERAN US BANKS ANALYST MIKE MAYO ON TALENT FIGHT, P2

Banks weather FICC decline with lift from equities

4HEûTOPûlVEû53ûBANKSûREPORTEDûTRADINGû Goldman showed the smallest decline, WASHEDûOUTûnûEXCEPTûFORûMARKETûLEADERû
REVENUEûOFûNEARLYû53BNûINûûDOWNû WITHû&)##ûREVENUEûFALLINGûûFORûTHEûYEARû -ORGANû3TANLEY
ûFROMûûWHENûREVENUEûFROMûlXEDû That was thanks to a steadier end to the 7HILEû-ORGANû3TANLEYûSTUMBLEDûEARLYûINûTHEû
income trading reached stratospheric levels. year, with FICC revenues in the fourth year, the bank rebounded and managed to fend
"UTûASûHOPEDûAûSURGEûINûEQUITYûTRADINGû
during most of 2021 helped dampen the
hNORMALISATIONvûINûlXEDûINCOMEûTRADINGû
volume.
(EADINGûINTOûûALLûlVEû53ûBANKSûFEAREDû
QUARTERûOFû53BNûDOWNûûASûSTRENGTHûINû off most rivals looking to steal market share.
currencies and higher client activity in
EMERGINGûMARKETSûOFFSETûSIGNIlCANTLYûLOWERû US BANKS' Q4 REVENUES; % CHANGE VS YR AGO
revenues and rates. % change
-ORGANû3TANLEYûTOOKûTHEûBIGGESTûHITûINûTHEû 50

THATûREVENUEûFROMûlXEDûINCOMEûCURRENCYû QUARTERûWITHû&)##ûREVENUEûFALLINGûûTOû 40

and commodities trading would fall off a 53BNû&ORûTHEûYEARûTHEûBANKSû&)##û
30
cliff from the record levels of 2020. It wasn’t REVENUEûWASûDOWNû
QUITEûTHATûBADû!CROSSûTHEûGROUPû&)##ûWASû "OF!Sû&)##ûREVENUEûINû1ûFELLûûFROMûAû 20

DOWNûûONûAVERAGEûANDûTOTALûREVENUEû YEARûAGOûREmECTINGûAûWEAKERûCREDITûTRADINGû 10

across JP MORGAN, CITIGROUP, BANK OF AMERICA, environment, and for the year it was down 0
GOLDMAN SACHS and MORGAN STANLEY reached ûFROMû
–10
53BNûFORûTHEûYEAR
%QUITYûTRADINGûREVENUEûFORûTHEûYEARûACROSSû EQUITY BOOM –20
THEûlVEûBANKSûROSEûûTOû53BNû While banks braced for weaker revenue –30
*0û-ORGANûREPORTEDû53BNûINû&)##û from FICC at the start of 2021, most were
–40
REVENUEûFORûTHEûYEARûDOWNûûCOMPAREDû LEANINGûINTOûEQUITYûTRADINGûANDûHOPINGûTOû JPM BofA Morgan
Citigroup Goldman Stanley US
with the boom year 2020. Citi reported the make up for lost revenue. For most of the Sachs avg
steepest decline in FICC, with revenue year the bet paid off as revenue surged, but FICC Equities Advisory/underwriting
FALLINGûûTOû53BNûFORûTHEûYEARû INûTHEûTHEûFOURTHûQUARTERûTHEûEQUITYûWAVEû Source: Bank results, IFR calculations

HSBC builds ESG talent with sustainability hires

HSBC has made three senior sustainability GLOBALûCOMMERCIALûBANKINGû#%/û"ARRYû zero. We want to lead with capability not
appointments as the bank increases its focus /"YRNEû3HEûWILLûALSOûWORKûCLOSELYûWITHû commitments and drive innovation and
ONû%3'ûANDûACCELERATESûITSûAGENDAûTOûBECOMEû GROUPûCHIEFûSUSTAINABILITYûOFlCERû#ELINEû impact at scale,” Herweijer said.
AûLEADINGûlNANCIERûOFûTHEûTRANSITIONûTOûNETû Herweijer. (3"#ûHASûALSOûAPPOINTEDûChristian Deseglise
zero and meet its own pledge to achieve net-
ZEROûEMISSIONSûBYûûORûSOONERû
The roles include an internal move for
Natalie Blyth to global head of commercial
banking sustainability from her role as global
HEADûOFûTRADEûANDûRECEIVABLESûlNANCINGû3HEû
will focus on delivering sustainable products
TOû(3"#SûûMILLIONûBUSINESSûCUSTOMERS
ZEROûEMISSIONSûBYû commitment. He was previously head of
"LYTHûISûAûMEMBERûOFû(3"#SûCOMMERCIALû
banking executive committee and reports to
(ERWEIJERûISûBUILDINGû%3'ûTALENTû
including specialist roles to help clients
across industry sectors move to net-zero
EMISSIONSû(3"#ûCOMMITTEDûTOûPROVIDEû
53TRNûOFûSUPPORTûBYûûTOûBACKûITSû
clients’ energy transition plans when it
announced its own plans in October 2020 to
REACHûNET
“We have a huge agenda ahead to be at
THEûHEARTûOFûlNANCINGûTHEûTRANSITIONûTOûNETû
as group head of sustainable infrastructure
and innovation and Chris Webb as group head
of carbon markets, both reporting to
Herweijer.
$ESEGLISEûWILLûFOCUSûONûDEVELOPINGû
innovative ventures in sustainable
INFRASTRUCTUREûTOûSUPPORTû(3"#Sû53TRNû
SUSTAINABLEûlNANCEûANDûINVESTMENTSûINû
global banking and markets and is also a

Who’s moving where…

Former French finance across all its business CREDIT SUISSE von Schwedler. Bardo
minister Francois lines. Baroin is a has rehired Scott is rejoining from
Baroin has been politician and lawyer Bardo as co-head of Berenberg, where he
appointed chairman who has held several healthcare for EMEA was a senior research
of BARCLAYS’ France senior positions in in its investment analyst, leading
business. Baroin France, including banking group, European medtech
joined Barclays as a interior minister. He focusing on medtech, and healthcare equity
senior adviser in 2018 was finance minister healthcare services research. He joined
and helped it expand from July 2011 to May and diagnostics. Berenberg from Credit
its corporate and 2012 at the height of Bardo will start in Suisse in 2010.
investment bank, and the eurozone’s debt April and be based
will now widen his crisis. in London. He will be
role to grow revenues co-head with Friedrich

12 International Financing Review January 22 2022


-ORGANû3TANLEYSû1ûEQUITYûTRADINGû
REVENUEûOFû53BNûWASûUPûûFROMûAûYEARû
earlier, on strength in prime brokerage and
higher activity in Asia.
M&A hopes remain high after Activision deal
Revelations that bidders are prepared to
launch largely cash deals of more than
People
& Markets
VERYûHIGHû0EOPLEûAREûLOOKINGûFORû
opportunities to strategically accelerate in a
4HEûPERFORMANCEûSTOODûOUTûASû*0û-ORGANû 53BNûSHOWûTHEûMERGERSûANDûACQUISITIONSû changing environment,” Goldman chief
Goldman and Citi all reported declines boom that started during the pandemic still EXECUTIVEû$AVIDû3OLOMONûTOLDûANALYSTSûONûAû
INû1ûSUGGESTINGûAûYEAR
LONGûSURGEûINû has some way to run, despite signs that call.
EQUITYûTRADINGûVOLUMEûMAYûHAVEûCOMEûTOû central bankers could start turning off their -ORGANû3TANLEYûCHIEFûlNANCIALûOFlCERû
ANûENDû"OF!ûEKEDûOUTûAûûGAINûINûEQUITYû taps providing cheap money. 3HARONû9ESHAYAûAGREEDûSAYINGûh#%/û
trading. ,ASTûWEEKû5+ûPHARMACEUTICALûMAKERû CONlDENCEûREMAINSûHIGHûANDûMARKETSû
-ORGANû3TANLEYSûSTRONGûlNISHûTOûTHEûYEARû GLAXOSMITHKLINE SAIDûITûHADûRECEIVEDûAûaBNû remain open and constructive.”
WASûNOTûENOUGHûTOûKEEPûITûONûTOPûFORûEQUITYû approach from UNILEVER for its consumer
trading for the full year, however, after HEALTHCAREûBUSINESSûCONSISTINGûOFûaBNû OPTIONS OPEN
SUFFERINGûAû53MûLOSSûEARLIERûINûTHEûYEARû INûCASHûANDûaBNûINû5NILEVERûSHARESû4HISû '3+ûHASûSAIDûITûISûEVALUATINGûOTHERûOPTIONSû
in prime brokerage related to the collapse of was the food and toiletries producer’s third for the consumer healthcare unit, which
!RCHEGOSû#APITALû-ANAGEMENT ANDûULTIMATELYûlNALûOFFERûFORûTHEûUNIT could see it sold to another bidder prepared
&ORûTHEûYEARûEQUITYûTRADINGûREVENUEû !NDûINûTHEû53ûSOFTWAREûGIANTûMICROSOFT TOûPAYûMOREûORûSPUNûOFFûVIAûANû)0/
REACHEDû53BNûATû-ORGANû3TANLEYûUPû ANNOUNCEDûANûAGREEDû53BNûALL
CASHûOFFERû The Activision offer is the largest ever all-
ûFROMûTHEûPRIORûYEARûANDûAûNEWûRECORDû
for the bank driven by strength in prime
BROKERAGEûANDûGROWTHûINû!SIAûSPECIlCALLY
"UTûTHATûWASû53MûSHORTûOFûTHEû
53BNûINûEQUITYûTRADINGûREVENUEû
achieved by Goldman for the year, leaving
for games producer ACTIVISION BLIZZARD. The
53ûAûSHAREûOFFERûWASûATûAûûPREMIUMûTOû
Activision’s closing share price on the day
before it was unveiled (see Top News story).
The two mega-deals are a coup for leading
-!ûBANKûGoldman Sachs, which is advising
CASHûDEALûACCORDINGûTOû2ElNITIVûDATAû
BEATINGûTHEû53BNûOFFERûFORû-ONSANTOûBYû
"AYERûINûû4HATûSHOWSûTHEREûREMAINSûAû
HUGEûAPPETITEûTOûlNANCEûTRANSACTIONSûATû
present, before rates start to rise.
-ORGANû3TANLEYûBANKERSûSAIDûMANYûOFûTHEû
-ORGANû3TANLEYûINûSECONDûnûALBEITûWITHûANû '3+ûTOGETHERûWITHûCitigroup, on the conditions remained in place at the moment
asterisk, and momentum going into 2022. approaches for its consumer healthcare FORûSIGNIlCANTûDEALSûWITHûPRIVATEûEQUITYû
Philip Scipio BUSINESSûANDûISûSOLEûADVISERûTOû-ICROSOFTûONû BIDDERSûSITTINGûONû53TRNûOFûCASHûEQUITYû
its offer for Activision. valuations still high and interest rates low.
,ASTûYEARûWASûAûRECORDûFORû-!ûWITHû “While it may not be another record year,
member of French president Emmanuel 53TRNûOFûDEALSûANNOUNCEDûUPûûONû all the key elements that made the 2021
-ACRONSû/NEû0LANETû,AB the previous year. Goldman topped the table -!ûMARKETûSOûSTRONGûAREûLARGELYûINûPLACEvû
Webb joins from The Nature Conservancy, for advisers on those deals as well, advising SAIDû2OBû+INDLERûGLOBALûHEADûOFû-!
where he led its carbon markets strategy ONûûTRANSACTIONSûWITHûAûTOTALûVALUEûOFû )NûTHEûCREDITûMARKETSûTHEûmOWûOFû-!û
and work on using carbon pricing as a 53TRN deals is expected to make up for a weaker
catalyst to expand natural climate solutions. Goldman last week said revenues for pipeline of corporates coming to the market
"EFOREûTHATûHEûLEDû0W#SûWORKûONûCARBONû advisory work in 2021 hit a record TOûRElNANCEûSINCEûLOTSûOFûTHATûHADûALREADYû
markets and ecosystem services. 53BNûUPûûFROMûû4HATû happened.
4HEûMOVESûFOLLOWû(3"#SûRECENTûAPPOINTMENTû outstripped rival advisory specialist MORGAN “Low funding costs, strong business
OFû!MYû-ERRILLûASûSENIORûLEGALûCOUNSELûATû#LIMATEû STANLEY,ûWHICHûREPORTEDûAûûRISEûTOû CONlDENCEûANDûSUBSTANTIALûPRIVATEûEQUITYû
!SSETû-ANAGEMENTûAûPARTNERSHIPûBETWEENû 53BNûALSOûAûRECORDû!CROSSûTHEûTOPûlVEû dry powder increase the incentives for re-
(3"#û!SSETû-ANAGEMENTûANDûCLIMATEûCHANGEû
ADVISORYûANDûINVESTMENTûlRMû0OLLINATIONû
-ERRILLûPREVIOUSLYûLEDûTHEû5.Sû!RTICLEûû
negotiations to create new carbon markets.
Tessa Walsh
53ûBANKSû-!ûFEESûROSEûMOREûTHANûûFORû
the year.
The healthy start to the year suggests the
deal frenzy is not over yet either. “I think
strategic activity is going to continue to be
leveraging,” said Viktor Hjort, global head of
CREDITûSTRATEGYûATû".0û0ARIBASû(EûSAIDû-!û
and leveraged buyout levels could reach
THOSEûSEENûINû
Christopher Spink

Please contact us if you have information about job moves: peoplemarkets@refinitiv.com

NATWEST MARKETS of NatWest Markets. Franck Leroy has been and asset and liability
has hired Vincent Goedegebuure has appointed chief risk management risks,
Goedegebuure from worked at ABN AMRO officer at NATIXIS, after previously
ABN AMRO to head since 2005, most succeeding Olivier working at Societe
its Amsterdam-based recently as global Vigneron – who is Generale and Banque
subsidiary, which head of client coverage joining Deutsche Bank Palatine.
handles the investment and previously in loan in the same role. Leroy
bank’s activities in the syndications, DCM, was global head of
EU. Goedegebuure structured finance market risks at the
will join in early May and global markets. French investment
as CEO of NatWest He previously worked bank. Leroy joined
Markets NV and report at MeesPierson and Groupe BPCE in 2016
to Robert Begbie, CEO Citigroup. as head of market

International Financing Review January 22 2022 13

Bellwether
Bellwether: n. From the practice of placing a bell around the WHENûDISCUSSINGûAûPOTENTIALû-!ûDEALûINûFULLûVIEWûOFûTHEû
neck of a castrated ram so that it might lead its flock #REDITû3UISSEûLOGO
Then to add insult to ... insult, the bank was replaced as
&/,,/7).'û!.4/.)/û(/24! /3/2)/3 movements during -!ûADVISERûBYû,ION4REEûINûTHEûSEASONûlNALEû#REDITû3UISSEû
#OVIDûQUARANTINEûMUSTûHAVEûBEENûLIKEûAûGAMEûOFûh7HERESû will hope Lehmann lasts longer than a season.
7ALLYvûWITHûTHEûWALLYûINûQUESTIONûTURNINGûUPûEVERYWHEREû
FROMûTHEû-ALDIVESûTOûTHEû7IMBLEDONûTENNISûTOURNAMENT the year’s more unlikely
IN ONE OF
"UTûTHEûSHOCKûOUSTINGûOFû#REDITû3UISSESûQUARANTINE “Hi, Jamie, COLLABORATIONSû2AYû$ALIOûCO CHIEFû
evading chairman suggests the bank that brought you I hear that INVESTMENTûOFlCERûANDûCO CHAIRMANûOFû
3PYGATEûHASûATûLASTûIMPROVEDûITSûETHICALûCODE you’re ready "RIDGEWATERû!SSOCIATESûHASûTEAMEDûUPû
Certainly, the bank’s board now appears to hold its to do an LBO WITHû3EANû#OMBSûAKAû0û$IDDY
OFlCERSûTOûAûHIGHERûSTANDARDûTHANûTHEû5+Sû#ONSERVATIVEû on JP Morgan, The result is mercifully not a rap
PARTYûDOESûITSûLEADERû!NDûTHATSûQUITEûSOMETHINGû song about naked shorts, but “a
CONSIDERINGûTHATû#REDITû3UISSEûHASûINûTHEûPASTûûMONTHSû
that you’re so mentorship”.
PRODUCEDûMOREûSCANDALSûTHANû"ORISû*OHNSONûHASûCHILDREN confident?” )FûAûCLIPûPOSTEDûBYû$ALIOûONû,INKED)Nû
Even Number 10 should concede that the optics don’t is anything to go by, this consists
look great (unless that is, they’re brimming with gin from OFû$ALIOûTALKINGûABOUTûHISûlVE STEPû
the local off-licence). FORMULAûFORûSUCCESSûWHILEû$IDDYûNODSû
!SûFORû(ORTA /SORIOû"ELLWETHERûISûSADûTOûSEEûHIMûGOû)Tû along, although from the slightly
was looking forward to seeing whether the tennis-mad distracted look on his face that could
RULE BREAKERûCOULDûGOûONEûBETTERûTHANû.OVAKû$JOKOVICûANDû be to a song he’s playing in his head rather than to Ray’s
attend the Australian Open tennis. words of wisdom.
-ANYûHAVEûMARVELLEDûATûTHEûSPEEDûWITHûWHICHû!(/ûWASû
REPLACEDû"EFOREûLEADûINDEPENDENTûDIRECTORû3EVERINû3CHWANû !&4%2û!û-!.)#ûWEEKûFORû-!ûACTIVITYûCOULDû*0û-ORGANûBEû
THEûBANKSûEQUIVALENTûOFûAûTENNISûUMPIREûHADûlNISHEDû the subject of an audacious bid from its CEO? How else
SHOUTINGûhOUT
vûTOûTHEûTIN EAREDû0ORTUGUESEûTHEûBANKûHADû TOûEXPLAINûTHEûEXCHANGEûDURINGûTHEû1!ûBETWEENû*AMIEû
already picked a successor with Axel Lehmann stepping $IMONûANDû-IKEû-AYOûOFû7ELLSû&ARGOûONû*0-SûFOURTH
up. He’s a risk expert, which is surely de rigueur at Credit QUARTERûEARNINGSûCALL
3UISSEûTHESEûDAYSûFORûALLûSORTSûOFûREASONS -AYOûh(Iû*AMIEû)ûHEARûTHATûYOUREûREADYûTOûDOûANû,"/û
4HEûHANDOVERûTOû,EHMANNûWASûDElNITELYûAûFARûBETTERû ONû*0û-ORGANûTHATûYOUREûSOûCONlDENTvû$IMONûh9EAHû)û
SUCCESSIONûPROCESSûTHANûTHEûONEû#REDITû3UISSEûEXPERIENCEDû THINKûYOUûWOULDûHELPûMEûRAISEûTHEûEQUITYûCAPITALv
INûTHEû("/ûCOMEDY DRAMAûOFûTHEûSAMEûNAMEûWHENûTHEû )SûITûTHEûSCOOPûOFûTHEûYEARûTHATûONLYû"ELLWETHERûSAWû
bank’s attempt at product placement was undermined by And is this how mega-deals are really negotiated?
one of the characters screaming “bring in the banker fucks” 0OSSIBLYûNOTû„

Who’s moving where…

„ Alternative asset be responsible for „ HOULIHAN primarily on growth „ SOCIETE GENERALE Pacific. Lattuada joined
manager MIDOCEAN growing MidOcean’s LOKEY has hired capital and structured has appointed SG in 2009 and ran
PARTNERS has hired institutional Chris Hastings as a equity transactions. Demetrio Salorio as prime services and then
Jamil Nathoo from relationships and managing director He began his career head of the UK and the UK and Ireland for
Goldman Sachs in an CLO platform. Prior in its capital markets at Bear Stearns in Ireland, succeeding the past three years.
effort to expand its to Goldman, Nathoo group in New York, 1999 and has worked Christopher Lattuada, Salorio started at SG’s
collateralised loan was global head of expanding the at Cantor Fitzgerald who will become chief Madrid office in 1991
obligation business. CLO marketing and investment bank’s and Credit Suisse. operating officer for and was global head of
Nathoo, who had syndication at BNP equity team. Hastings Hastings will join Sean global banking and DCM from 2010 until
been head of CLO Paribas. joined from DC Fitzgerald and Brent investor solutions. 2019, and then UK
and asset-backed Advisory, where Surber to provide Lattuada replaces head of global banking
securities syndicate he headed private equity solutions. Cecile Bartenieff, who is and advisory.
at Goldman, will capital, focusing moving to head of Asia-

14 International Financing Review January 22 2022

 People
& Markets
Alantra expands into maritime and offshore
3PANISHûBANKûALANTRA has expanded into focusing on origination, structuring, and Alantra said the expansion was part of its
maritime and offshore investment banking EXECUTIONûOFûCOMPLEXûDEBTûANDûEQUITYû plan to increase the breadth of its
and hired four bankers for a new team to TRANSACTIONSû'IANNAKISûSETûUPû3TORM(ARBOURSû investment bank, which has grown strongly
cover the industry. maritime and real estate activity and in recent years and targets mid-sized
-ADRID BASEDû!LANTRAûSAIDûITûHADûHIREDû 0ETRAKAKOSûCO HEADEDûITSûSHIPPINGûPRACTICE corporates and areas it sees as underserved
George Giannakis and Nicholas Petrakakos from The bank has hired two more people for BYûMAJORûBANKSû)TûHIREDûûSENIORû
3TORM(ARBOURû3ECURITIESûASûMANAGINGû the team, and said it intended to hire another professionals last year in high-growth
partners to lead the team. two. It said it aimed to target the main sectors, such as healthcare, technology, real
It said the pair combined have more than 20 shipping hubs of Greece, the Nordic region, ESTATEûANDûlNANCIALûINSTITUTIONSû)NVESTMENTû
years of experience in the maritime sector, 'ERMANYûANDûTHEû-IDDLEû%ASTûANDûOFFERûAûFULLû banking is one of three pillars at Alantra,
with Giannakis previously advising on debt SETûOFûPRODUCTSûFORû-!ûPUBLICûANDûPRIVATEû alongside asset management and credit
CAPITALûMARKETSûEQUITYûCAPITALûMARKETSûANDû EQUITYûCAPITALûRAISINGûDEBTûCAPITALûRAISINGûANDû portfolio advisory.
-!ûDEALSûINûTHEûSECTORûANDû0ETRAKAKOSû debt restructuring advisory. Steve Slater

CS names new sustainability chief as Drew departs

CREDIT SUISSE has appointed wealth new role on April 1 and report directly OFlCERûANDûHEADûOFûSUSTAINABILITYûSTRATEGYûINû
management executive Emma Crystal as its to chief executive Thomas Gottstein, August 2020, reporting to Hudson before
NEWûCHIEFûSUSTAINABILITYûOFlCERûREPLACINGû the memo said. A spokesman for Credit her departure.
Marisa DrewûWHOûLEAVESûAFTERûMOREûTHANûû 3UISSEûCONlRMEDûTHEûCONTENTSûOFûTHEû #RYSTALûJOINEDû#REDITû3UISSEûINûû
years at the bank, Reuters reported, citing a memo. and since 2020 has led international
memo to staff. $REWûFORMERLYûANûINVESTMENTûBANKERûANDû wealth management’s sustainable
Crystal, who leads the international then head of the bank’s sustainability- client solutions unit alongside her regional
wealth management business for Northern FOCUSEDûIMPACTûADVISORYûANDûlNANCEû role.
and Western Europe, will start in the department, was named chief sustainability Simon Jessop, Brenna Neghaiwi

5NI#REDITûWILLûRELYûONûCORRESPONDENTû
UniCredit to cut Asia presence banks to provide corporate services, such as
transaction and foreign exchange, to
Italian bank UNICREDIT said it would no longer “We will ... no longer offer account %UROPEANûCUSTOMERSûINû!SIA 0ACIlCûITûSAID
PROVIDEûBASICûBANKINGûSERVICESûTOû!SIA 0ACIlCû banking and other banking services to the It will continue to support Asian
units of its European clients under plans to !SIA 0ACIlCûREGIONûSUBSIDIARIESûOFûCLIENTSû CORPORATEûANDûlNANCIALûINSTITUTIONû
streamline its international presence and located in our core coverage regions,” customers in their investments and business
cut costs, Reuters reported. 5NI#REDITûSAIDûINûREPLYûTOûAû2EUTERSûREQUESTû in Europe, an activity entrusted to its Hong
4HEûMOVEûWILLûRESULTûINûTHEû-ILAN BASEDû for comment. +ONGûBRANCH
BANKûCLOSINGûDOWNûITSûOFlCESûINû4OKYOû The decision was communicated to 5NDERûTHEûREORGANISATIONû5NI#REDITûWILLû
3HANGHAIûANDû3INGAPOREûWHILEûMAINTAININGû 5NI#REDITSûSTAFFûINû#HINAûONû-ONDAYû ALSOûSHUTûREPRESENTATIVEûOFlCESûINû3EOULû
ONLYûAûBRANCHûINû(ONGû+ONGûAûPERSONûCLOSEû another person with knowledge of the (ANOIûANDû-UMBAI
to the matter said. matter told Reuters. Valentina Za

Please contact us if you have information about job moves: peoplemarkets@refinitiv.com

„ Lazard has lost „ AUSTRALIA AND „ FRANKLIN „ GOLDMAN SACHS „ Duncan Connellan financing. Connellan
two members of its NEW ZEALAND TEMPLETON has has appointed Edward has rejoined was recently head
restructuring group. BANKING GROUP appointed Anne Byun as co-head of BARCLAYS as of strategic and
Kenneth Ziman has promoted Jimmy Simpson to the newly ECM for Asia, ex-Japan, manager director of acquisition finance
decamped to join the Choi to head of capital created role of global to replace William investment banking in for ANZ at MUFG and
restructuring team markets, where he head of sustainability. Smiley, who is moving Australia, tasked with previously worked at
at New York law firm will lead the DCM She will report to to global markets to expanding coverage Barclays for six years,
PAUL WEISS, while business globally, president and CEO head APAC ECM public of financial sponsors, including as head of
Eli Silverman left the based in Sydney. Choi Jenny Johnson and distribution. Byun is infrastructure funds loan capital markets
bank for BAIRD. replaces Paul White, will join the firm on currently responsible and corporate clients and leveraged finance
who is relocating to February 22, based in for equity financing for leveraged finance, for ANZ.
New York to head of California. Simpson for TMT. He joined acquisition finance
markets in the US. joins from CalPERS. Goldman in 2005. and structured

International Financing Review January 22 2022 15

“We want to lead with capability not commitments
and drive innovation and impact at scale”
HSBC CHIEF SUSTAINABILITY OFFICER CELINE HERWEIJER, P12

Capital markets week ahead:

Athenahealth, LG Energy Solution, Pakistan
CLEAN BILL OF HEALTHû"AINû#APITALûANDû lLEDûFORûBANKRUPTCYûPROTECTIONû!POLLOû !MSTERDAMû)0/ûONû4HURSDAYû!ROUNDûHALFû
(ELLMANûû&RIEDMANûHOPEûTOûWRAPûUPûTHEû 'LOBALû-ANAGEMENTûTHEûCARRIERSûBIGGESTû the proceeds will go to the company to fund
lNANCINGûONû7EDNESDAYûFORûTHEIRû53BNû creditor, is expected to swap its debt for GROWTHûANDûACQUISITIONSûWHILEûTHEûRESTûWILLû
leveraged buyout of Athenahealth when EQUITYûASûPARTûOFûAû53BNûRECAPITALISATIONû go to selling shareholders led by Highland
LOANSûTOTALLINGû53BNûAREûDUEûTOûCLOSEû THATûWILLûSEEûITSûSHAREHOLDERSûINCLUDINGû53û %UROPEû4ECHNOLOGYû'ROWTHûANDû(0%û'ROWTHû
The deal kicks off what could be a bumper PARTNERû$ELTAûINJECTûMOREûCASH WeRock will change its name to The Creative
YEARûFORû,"/SûWITHûSEVERALûOTHERûBUYOUTSû 0RODUCTIVITYû'ROUPûAFTERûLISTINGû
INCLUDINGû4ELECOMû)TALIAû-ORRISONSûANDû
5NILEVERSûTEAûBUSINESSûALSOûPOTENTIALLYûINû CHINESE WALLS Credo Technology is due to
the works. PRICEûITSû53Mû.ASDAQû)0/ûONû
4HEûACQUISITIONûOFû!THENAHEALTHûWHICHû Wednesday. The deal has raised a few
digitises health records and medical bills, eyebrows because the network technology
comes three years after Veritas Capital and provider, which has a Chinese subsidiary, is
Evergreen Coast Capital took it private PUSHINGûAHEADûWITHûITSû.EWû9ORKûLISTINGû
following a battle to oust founder Jonathan without Chinese approval at a time when
"USHûNEPHEWûOFûFORMERû53ûPRESIDENTû "EIJINGûISûCLAMPINGûDOWNûONûFOREIGNûLISTINGSû
'EORGEû(û7û"USHû3INCEûTHENûTHEYûHAVEû #REDOûSAYSûITSû)0/ûWILLûNOTûREQUIREû#HINESEû
merged it with assets from GE Healthcare approval.
and drastically cut costs.
TOWER BLOCKû#ORDIANTû$IGITALû
PAYING THE PRICE The investment bank Infrastructure is due to complete a £200m
YEARûNUMBERSûONû4HURSDAYû7HILEû53û
FULLY CHARGEDû3HARESûINû,'û%NERGYû
OFFûOFûITSûDIABETESûBUSINESSû
earnings season moves to Europe, with
$EUTSCHEû"ANKûANDû5NI#REDITûDUEûTOûRELEASEû
FULL
0OLISHûBROADCASTûTOWERûCOMPANYû%MITELû)Tû
banks reporting so far have boasted record
fees from underwriting and advisory activity,
investor reaction has been tempered by
SOARINGûCOSTSûLINKEDûTOûBONUSESû3OMEûlRMSû
have hiked pay by as much as a third.
DEAL SWEETENERû53ûMEDICALûTECHNOLOGYû
GIANTû"ECTONû$ICKINSONûHOPESûTOûWRAPûUPû
53BNûOFûLOANSûONû4HURSDAYûTHATûWILLû
lNANCEûTHEûSPIN
ACQUIREûAûMAJORITYûSTAKEûINû4ETRAû)RELANDû
EQUITYûPLACINGûONû4UESDAYûASûTHEûINVESTMENTû
VEHICLEûRAISESûCASHûTOûFUNDûITSûACQUISITIONûOFû
MIGHTûNOTûBEûTHEûLASTû#ORDIANTûHASûSAIDûITSû
pipeline of investment opportunities is
more than €2bn, and comprises several
platforms in North America and Europe.
TETRA PACKû$IGITALûû)NFRASTRUCTUREûISûALSOû
EXPECTEDûTOûCOMPLETEûITSûOWNûaMûEQUITYû
placement the same day. It comes after the
company said it had conditionally agreed to
3OLUTIONûBEGINûTRADINGûINû3EOULûONû4HURSDAYû Embecta, as the company will be known, Communications, which runs a network for
a week after the company smashed records will use proceeds from the loans to pay a emergency services in the country. That
WITHûITSû7TRNû53BN û)0/ûTHEû
OFFûCASHûDIVIDENDûTOûITSûPARENTû"ECTONû
LARGESTûEVERûSEENûINû3OUTHû+OREAû)NVESTORSû
OFFûWILLûCOMPLETEûBYû centre platform Verne Global.
PUTûINûAûRECORDû53TRNûOFûBIDSûFORûAûPIECEû
of the battery maker, just months after it
was forced to recall defective batteries used
INû'ENERALû-OTORSû"OLTûELECTRICûVEHICLES
KHAN-DO ATTITUDEû0AKISTANûISûEXPECTEDûTOû
ONE
FOLLOWSûAû53MûINVESTMENTûINû.ORDICûDATAû
$ICKINSONûSAYSûTHEûSPIN
the end of June, with Embecta to be listed.
LAST WEEK IN NUMBERS
US$68bn –û-ICROSOFTûDEALûTOûBUYû
HITûTHEû53ûDOLLARûMARKETûWITHûAûBONDûSALEûINû !CTIVISIONû"LIZZARDûWHICHûHASûSPURREDû
WHATûISûLIKELYûTOûBEûAûQUIETûWEEKûFORû!SIANû TALKûOFûACQUISITIONûRISK
supply because of lunar new year holidays. 15% –û)NmATIONûINûCOMPENSATIONûATûBIGû
The sukuk comes less than three years after lVEû53ûBANKSûWITHûSOMEûSEEINGûCOSTSûGOû
THEûCOUNTRYûWASûBAILEDûOUTûBYûTHEû)-&ûWITHû up by a third
53BNûOFûLOANSûWHICHûHASûCAUSEDûFRICTIONû
between Islamabad and the fund over
revenue targets.
REQUESTING CLEARANCE Aeromexico goes to
court on Thursday to present its restructuring
TRANSFER OF OWNERSHIP WeRock, the
PARENTûOFû$UTCHûlLEûTRANSFERûWEBSITEû
€125m – 3UPPORTûFROMûLEADûBANKSûAFTERû
õMûBONDûFROMû3TATEûOFû"ERLINûFAILEDûTOû
attract orders
Nine – -ONTHSûINûTHEûJOBûFORû!NTONIOû
Horta-Osorio, who resigned as Credit
3UISSEû#%/
PLANSûMOREûTHANûûMONTHSûAFTERûTHEûAIRLINEû 7E4RANSFERûISûDUEûTOûPRICEûITSûõMû

16 International Financing Review January 22 2022


Opinion split on gas and nuclear in EU Taxonomy
0LANSûTOûINCLUDEûGASûANDûNUCLEARûINVESTMENTSû
INûTHEûINmUENTIALû%5û4AXONOMYûAREûCONTINUINGû
People
& Markets
the inclusion of gas and nuclear in the spree as oil majors battle for assets, and
taxonomy now “opens the door to more increase demand for carbon capture and
TOûSPLITûOPINIONûWITHû%3'ûINVESTORSûSAYINGû
they will continue to exclude both sectors
from sustainable funds, while others say
exceptions could be made for projects and
deals that meet the strict criteria.
nuanced views” that has implications for
corporates and investors.
Goldman said including gas and nuclear
INûTHEû%5û4AXONOMYûCOULDûHERALDûAûSHIFTû
FROMû%3'ûINVESTORSûTRADITIONALûHARDLINEû
storage to cover emissions.
HEAVILY CRITICISED
7HILEûTHEû%5SûDECISIONûTOûINCLUDEûGASûANDû
nuclear in its taxonomy has been heavily
%3'ûINVESTORû..û)NVESTMENTû0ARTNERSûWILLû exclusion policies that would increase CRITICISEDûINCLUSIONûWILLûREQUIREûCOMPANIESû
continue to exclude natural gas or related
activities from its green bond funds and will
not include nuclear power exposure that
WASûBUILTûAFTERûûINûITSûGREENûBONDSûANDû
IMPACTûEQUITIESûSTRATEGIES
It will not be swayed from its viewpoint or
change its investment parameters if either
SECTORûISûINCLUDEDûINûTHEûlNALûVERSIONûOFûTHEû
taxonomy, which is due to be completed by
lNANCINGûFORûBOTHûSECTORSûASûSOMEûlRMSû
will be prepared to make exceptions for
DEALSûTHATûlTûTHEûTAXONOMYûCRITERIA
The change could also give some
guarantee to Europe’s volatile energy supply
as renewable energy expands and will allow
natural gas to play a bigger role as oil majors
transition to a broader energy mix and
accelerate the phasing out of coal.
to meet strict carbon performance
thresholds and disclose green revenues,
capital and operating expenditure.
The move is unlikely to alter the analysis
framework for investors with sustainability
teams but it is being welcomed as a source
of guidance and best practice for each
industry and will push energy projects to
disclose more CO2 emissions data, which
THEûENDûOFûSUMMERûALTHOUGHû..û)0ûCOULDû “We believe the inclusion of nuclear and will help to identify sustainable projects.
potentially book gas or nuclear assets for its gas into the taxonomy would help to ensure a “The extra information that the taxonomy
NON
%3'ûFUNDS smoother transition to a low carbon is pushing issuers to provide is useful. They
h..û)0ûDOESûNOTûINCLUDEûNATURALûGASûANDû economy,” Goldman analysts said in the note. will now come to market with granular
NUCLEARûINûITSûlRM
WIDEûRESTRICTIONûCRITERIAû Classifying nuclear as green could also information on areas such as carbon
HOWEVERûWEûCAREFULLYûASSESSûTHEû%3'û provide a backstop technology to help emissions,” said Isobel Edwards, a green
characteristics and associated risk appetite countries and companies achieve net-zero BONDSûANALYSTûATû..û)0
of these investments for most of our pathways while technologies including “This can be particularly useful in areas
strategies,” said Adrie Heinsbroek, chief renewable energy, storage and hydrogen such as bioenergy, where there is a
SUSTAINABILITYûOFlCERûATû..û)0 take time to scale up. SIGNIlCANTûDIFFERENCEûBETWEENûAûBIGû
The “dark green” investor is taking a !ûBIGGERûROLEûFORûGAS
lREDûPOWERû destructive bioenergy project and a
lRMERûLINEûTHANûPARENTû'OLDMANû3ACHSû generation in oil and gas companies’ sustainable bioenergy project.”
WHICHûSAIDûINûANûEQUITYûRESEARCHûNOTEûTHATû TRANSITIONûPLANSûCOULDûALSOûPROMPTûANû-!û Tessa Walsh

Social housing kick-starts not-for-profit SLBs

Other social landlords are set to follow after 4HISûREmECTSûTHEûSECTORSûROLEûINûBOTHû h4HEûINVESTORûRECEPTIONûWASûQUITEûSTRONGvû
,ONDONûû1UADRANTûMADEû5+ûHOUSINGû providing affordable housing for low-income said one banker on the deal. He described
ASSOCIATIONSûTHEûlRSTûNOT FOR PROlTûSECTORûTOû residents and seeking to make its properties THEû3,"SûADOPTIONûBYûANû(!ûASûAû
adopt sustainability-linked bonds. Further more environmentally sustainable. breakthrough by allowing the issuer to align
mission-driven organisations such as ITSûBONDûlNANCINGûWITHûITSûSTRATEGICûTARGETS
universities could join the shift too, SUSTAINABILITY PIONEER The structure “will allow us to meet our
according to bankers. 0RIORûTOûITSû3,"û,1ûPIONEEREDû3,,SûWITHûAû stated objectives and further strengthen our
Just as with green bonds, the sterling aMûFACILITYûARRANGEDûBYû".0û0ARIBASûINû LIQUIDITYûPOSITIONûWHILEûSTRETCHINGûUSûTOû
MARKETûHASûBEENûNOTABLYûSLOWûTOûADOPTû3,"Sû û3INCEûITSûLOANûTHEûSECTORûHASûBEENûANû achieve environmental and social targets
5+ûCORPORATESûHAVEûTENDEDûTOûOFFERûTHEû ACTIVEûSOURCEûOFû3,,SûWITHûINSTITUTIONSûSUCHû THATûGREATLYûBENElTûOURûRESIDENTSûANDûTHEû
product in euros rather than their domestic ASû#LARIONû(YDEû,INKû-ETROPOLITANû4HAMESû WIDERûCOMMUNITYvûSAIDû7AQARû!HMEDû
currency, though pioneering retailer Tesco Valley, Nottingham Community, Optiva and GROUPûDIRECTORûOFûlNANCEûATû,1
DIDûFOLLOWûUPûITSûINAUGURALûEUROû3,"ûWITHûAû 0EABODYûSIGNINGûUPûFORû+0) LINKEDû 3,"SûAREûLIKELYûTOûAPPEALûMOSTûTOûLARGERû
STERLINGû+0) LINKERûINû/CTOBER lNANCINGS HAs, said the banker. This includes both
Housing associations have been a rare /THERSûSUCHûASû!SPIREû"ELIEVEûANDû ,1SûPEERSûWITHINûTHEû'ûGROUPûOFû
BRIGHTûSPOTûFORûSTERLINGû%3'ûBONDSûHOWEVERû 3OUTHWAYûHAVEûCLOSEDûSUSTAINABILITY LINKEDû London’s largest social landlords and other
The sector accounted for around a third of PRIVATEûPLACEMENTSûINûTHEû5+ûANDû53û00û ENTITIESûTHATûHAVEû3,,SûORû3,00SûOUTSTANDING
all use of proceeds bonds in the currency markets. He expects smaller social landlords to still
last year. Extending from these borrowings into favour the “low-hanging fruit” of use of
4HATûMADEûITûONEûOFûTHEû5+SûKEYûSOURCESûnû 3,"SûAPPEARSûAûNATURALûEXTENSIONûFORûTHEû PROCEEDSûTHOUGHûSOMEûMAYûVIEWû3,"SûASûLESSû
particularly before the sovereign began sector, though the very long maturities that onerous if they have already put sustainability
ISSUINGûGREENû'ILTSûINû3EPTEMBER (!SûSEEKûMAYûNOTûALWAYSûlTûINVESTORû +0)SûINûPLACEû4HESEûCANûBEûEMBEDDEDûINûGENERALû
-OSTûHOUSINGûASSOCIATIONû%3'ûBONDSûHAVEû PREFERENCESûFORûTHEûPRODUCTû3TILLû,1Sû CORPORATEûPURPOSEû3,"SûTHATûEVADEûTHEûREPORTINGû
been structured as sustainable bonds with aMû YEARûWASûNEARLYûTWOûTIMESû REQUIREMENTSûOFûUSEûOFûPROCEEDSûSTRUCTURES
combined social and green uses of proceeds. oversubscribed. Julian Lewis

International Financing Review January 22 2022 17

“The inclusion of nuclear and gas into the taxonomy would
help to ensure a smoother transition to a low carbon economy”
GOLDMAN RESEARCH ANALYSTS, P17

Evergrande hires more advisers

CHINA EVERGRANDE GROUP has hired China 4HEûBONDHOLDERSûHAVEûHIREDûLAWûlRMû EQUIVALENTûOFûLOANSû53BNûOFûONSHOREûBONDSû
International Capital Corp and BOCI Asia as
lNANCIALûADVISERSûANDûZhong Lun Law Firm as
legal adviser to assist the company in
dealing with its debt problem.
The hiring of the additional advisers was
proposed by the Chinese property
MAKINGûTOûDATEûISûCONTRARYû ANDû.OVEMBERûûANDû53BNû
developer’s risk management committee,
ACCORDINGûTOûAûlLINGûONû&RIDAY
The advisers will assist the company in
managing the risks relating to its debts;
following up with demands from the
creditors; and dealing with its debts on a fair
Harneys to potentially take enforcement
action against Evergrande after its lack of
“substantive engagement” with its offshore
creditors, the bondholders said.
“The group’s lack of engagement and
OPAQUEûDECISION
to well established international standards
in restructuring processes of this magnitude
and tarnish offshore investors’ views as to
the viability of expecting fair treatment
when investing in the credit of Chinese
companies,” the committee said.
ANDû53BNûOFûTRADEûDEBTûWHICHûWILLûTAKEû
priority over the company’s offshore notes.
The group’s offshore bonds comprise
53BNû4IANHLûBONDSûWITHûMATURITIESûINû
October and November 2022 and October
Evergrande bonds with maturities ranging
FROMû-AYûûTOû*UNEû
The Tianhl bonds, issued by offshore
SPECIALûPURPOSEûVEHICLEû3CENERYû*OURNEYûHAVEû
a guarantee from offshore unit Tianji Holding
and a keepwell deed from Hengda Real Estate
ANDûEQUITABLEûBASISûTHEûlLINGûSAID h!SûAûCONSEQUENCEûTHEû!('ûBELIEVESûITû Group, Evergrande’s main onshore property
%VERGRANDEûWHICHûDEFAULTEDûONûITSû53û has been left with no option but to seriously subsidiary in mainland China. Tianji is a
DOLLARûBONDSûINû$ECEMBERûISûSTRUGGLINGûTOû consider enforcement actions.” direct subsidiary of Hengda.
REPAYûMOREûTHANû53BNûINûLIABILITIES The AHG is represented by debt The Evergrande bonds were issued by the
-EANWHILEûANûAD
HOCûGROUPûOFûHOLDERSûOFû restructuring advisers Kirkland & Ellis and (ONGû+ONGûPARENTûWHICHûISûTWOûTIERSûABOVEû
the offshore bonds issued by Evergrande Moelis & Company. Hengda in the corporate structure and
announced on Thursday they were %VERGRANDESû53BNûLIABILITIESûAREû guaranteed by offshore entities.
considering taking legal action. PREDOMINATELYûDOMESTICûINCLUDINGû53BNû Carol Chan, Sandrine Bradley

World Bank urges sovereign restructuring framework

THE WORLD BANKSûPRESIDENTû$AVIDû-ALPASSûHASû THEû$33)ûWHICHûONLYûASKEDûPRIVATEûSECTORû REACHEDûAGREEMENTûWITHûITSûOFlCIALûSECTORû
urged the leaders of the world’s 20 biggest creditors to voluntarily offer similar relief to creditors but not with its main private sector
economies to ensure the sovereign debt THATûGIVENûBYûTHEûOFlCIALûSECTOR creditor GLENCORE.
restructuring processes brought in during h5NFORTUNATELYûTHEûINITIATIVEûDIDûNOTû h4HEû'ûHOPEDûTHEû$33)ûANDûCOMMONû
the pandemic work properly to alleviate the extend far enough to get to the private framework would dovetail but it hasn’t
PROBLEMSûOFûTHEûWORLDSûPOORESTûûNATIONS sector so it had a limited outcome before it produced a single debt restructuring,” said
)Nû-AYûûTHEû'ûAGREEDûTOûALLOWû EXPIREDûINû$ECEMBERû3OûNOWûTHOSEû the adviser.
those nations temporarily to suspend countries will have to resume interest on h5NFORTUNATELYûTHEûPROCESSûHASûSTALLEDvû
servicing the debts owed to richer countries THOSEûDEBTSvûSAIDû-ALPASSûATûAû0ETERSONû SAIDû-ALPASSû)TûHASûHAPPENEDûATûAûTIMEû
to help them focus their resources on Institute for International Economics event. WHENûPOORERûCOUNTRIESûFACEûRISINGûlNANCIALû
HEALTHCAREûREQUIREMENTSûDURINGûTHEû 5NDERûTHEûCOMMONûFRAMEWORKûAû PRESSURESûh)NûûALONEû53BNûFROMû
PANDEMICû"UTûTHEû$EBTû3ERVICEû3USPENSIONû RESTRUCTURINGûDEALûMUSTûlRSTûBEûAGREEDûBYû these countries will have to be paid to much
)NITIATIVEûlNISHEDûATûTHEûENDûOFû$ECEMBERû OFlCIALûSECTORûCREDITORSûONûCONDITIONûTHATû better-off countries, who are at the same
just as the Omicron wave hit. private sector creditors do not get a better TIMEûADVANCINGû53BNûINTOûTHOSEû
h&ORTY
THREEûOFûTHEûûCOUNTRIESûTHATû OUTCOMEû4HATûFOLLOWSûTRADITIONALû0ARISû#LUBû countries.”
AVAILEDûTHEMSELVESûOFûTHEû$33)ûAREûNOWû guidelines but binds in China and other G20 (EûSAIDûTHEûNETûNEGATIVEûmOWûOFûASSETSû
returning to normal bilateral debt service. MEMBERSûTHATûDOûNOTûBELONGûTOûTHEû0ARISû made little sense and urged countries to
It’s going to be pretty painful,” said one Club. coordinate their sovereign debt
lNANCIALûADVISER Three countries are currently using the restructuring activities. “We need better
As its replacement, a common framework common framework for talks with their conciliation processes for reorganising the
was agreed by the G20 at the end of 2020,
largely to get around a major drawback of
Mizuho appoints new CEO
MIZUHO FINANCIAL GROUP has appointed
Masahiro Kihara as chief executive
after the previous boss resigned in
November following a series of system
failures.
+IHARAûWILLûTAKEûUPûTHEûREINSûONû&EBRUARYû
CREDITORSûnûCHAD, ETHIOPIA and ZAMBIAûnûBUTû
none have yet reached agreement. Chad has
tenure was marred by a series of system
glitches last year that Japan’s Financial
3ERVICESû!GENCYûSAIDûHADûhUNDERMINEDûTHEû
credibility of Japan’s bank settlement
system”.
+IHARAûJOINEDûONEûOFû-IZUHOSûPREDECESSORû
DEBTSûOFûCOUNTRIESvû-ALPASSûSAID
Christopher Spink
three decades ago and has worked in
-IZUHOSûSECURITIESûBUSINESS
-IZUHOûALSOûAPPOINTEDûSeiji Imai, who
currently runs corporate banking, as its new
chairman. He will replace Yasuhiro Sato in
April.
1, replacing Tatsufumi Sakai, whose four-year BANKSû)NDUSTRIALû"ANKûOFû*APANûMOREûTHANû Thomas Blott

18 International Financing Review January 22 2022


„ FRONT STORY COVERED BONDS
‘End of tracks’ for long covereds?
RBI pulls 15-year as investors push back
Bankers see difficulty beyond 10s
RAIFFEISEN BANK INTERNATIONAL pulled a 15-year
covered bond offering last week in the
market’s starkest sign yet of investors’
change of tack over duration, while
evidence of increasing price resistance also
emerged.
RBI’s failed 15-year – which had been
marketed in tandem with an ultimately
YEARû
successful six-year tranche – came after a
notable shift in execution dynamics in the
covered bond market last week. Market
participants cited increasing signs of investor
selectiveness and weakness in secondary
spreads after a busy start to the year.
Concern centred on the long end, after
ABN AMRO and CREDIT AGRICOLE paid elevated
concessions for relatively thinly
oversubscribed 15-year and 11-year deals,
respectively.
ABN AMRO printed €1bn at 8bp over mid-
swaps on the back of more than €1.15bn of
orders, while Credit Agricole raised €1.25bn
at 5bp on a €1.4bn-plus book.
“Everything beyond 10 years is getting a
bit trickier due to the fact that there is more
focus on interest rate hikes in the US and
yield levels continue to go further up; it’s
the reason investors would rather choose
more defensive maturities,” said a syndicate
banker.
One of three issuers tapping the euro
covered market on Wednesday, RBI
marketed a €500m six-year tranche with
guidance of the mid-swaps plus 5bp area
and a €250m 15-year at the 15bp area,
through Barclays, BNP Paribas, Commerzbank,
ING, Mediobanca and RBI.
After around two hours and 15 minutes,
the leads announced that books had topped
€1bn (including €75m of JLM interest), with
SWAPSûmATûAREAûSTARTINGûPOINTû
demand skewed to the six-year.
Some two hours later, they announced
the issuer had chosen not to proceed with
the 15-year, while launching the six-year at
SSAR 21 Corporates 26 FIG 30 High-Yield 34 Structured Finance 37
duration has been getting lower, and it
reached a point where we felt it was not
right to proceed.”
Bankers noted that at 15bp the deal
offered a seemingly attractive premium of
7bp–8bp, yet still could not lure investors.
Some suggested the deal’s size would have
been a hindrance, as sub-benchmarks
receive less favourable treatment under
Liquidity Coverage Ratio rules and are less
liquid.
With investors expecting rate hikes and
now presented with more opportunities to
obtain positive yield, the role of duration is
being reassessed across the FIG market.
A head of syndicate suggested that, across
different asset classes, longer tenors may
now only be open to higher-rated, lower-
beta credits.
“Lower-rated credits retain [market]
access but you have to shorten duration,
simplify the product and also accept that
you probably don’t have the pricing
dynamics that you typically had,” he said.
“If you come to market now with a high-
beta credit at the front end of the curve, it
WOULDûmYû)TSûBASICALLYûPERFECTIONû)FûYOUûSAYû
buy high beta longer, I’m not even sure it’s a
price discussion. I think people would say: ‘I
don’t need to take that level of risk to
capture what I deem to be a sensible coupon
and yield’.”
COVERED BOND YIELDS ON THE RISE
AVERAGE YIELD OF IBOXX EUR COVERED INDEX
% tight end of guidance, but saw demand fall
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
BONDS
Bankers said the pulled trade is likely to
deter other prospective covered bond issuers
from tapping the long end.
“Duration is at the end of the tracks for
now,” said the second banker.
Investors’ tenor preference was made
plain by the fact that on the same day BANK
OF MONTREALûPRICEDûAûõBNûlVE
covered issue on the back of a €3.6bn-plus
book, taking the record for the largest post-
GLOBALûlNANCIALûCRISISûEUROûCOVEREDûOFFERINGû
However, bankers said those issuers that
have been able to get long-dated deals over
the line this month are unlikely to regret it,
even with concessions elevated, given the
likely direction of markets.
“I don’t think there will be any issuer
remorse around getting duration in early
this year,” said a fourth banker.
PFANDBRIEF PUSH-BACK
Bankers noted that average covered bond
premiums edged higher last week, but that
MAINLYûREmECTEDûTHEûDURATIONûOFûDEALSûSUCHû
as ABN AMRO’s and Credit Agricole’s and
the sizes taken by the Canadians.
Nevertheless, there have been signs of price
sensitivity at the tighter end of the market. An
investor push-back was evident in both last
week’s euro covered bond issues out of Germany.
On Monday, LANDESBANK BADEN-
WUERTTEMBERG was able to tighten its €750m
7.5-year Pfandbrief offering by 5bp from
initial guidance to price it at minus 5bp, the
by some €650m as a result.
On Wednesday, MUENCHENER
HYPOTHEKENBANK followed with a €750m no-
grow seven-year Pfandbrief issue offered at
THEûSAMEûMID
Leads Barclays, DekaBank, DZ Bank, LBBW,
Santander and UniCredit subsequently revised
guidance to minus 3bp (+/–1bp WPIR) with
books exceeding €1.15bn but were unable to
2bp on the back of more than €850m of -0.1 TIGHTENûFURTHERûULTIMATELYûlXINGûTHEûSPREADû
demand (including €75m of JLM interest). -0.2 at minus 3bp.
A banker at one of the leads said the level of -0.3 “Just two days of difference cost 2bp,” said
SUBSCRIPTIONûWASûNOTûSUFlCIENTûTOûGIVEûTHEMû -0.4 AûlFTHûBANKERûh)TSûQUITEûINTERESTINGûHOWû
CONlDENCEûTHEû
YEARûTRANCHEûWASûVIABLE things are turning on the covered side.”
02/01/19
02/03/19
02/05/19
02/07/19
02/09/19
02/11/19
02/01/20
02/03/20
02/05/20
02/07/20
02/09/20
02/11/20
02/01/21
02/03/21
02/05/21
02/07/21
02/09/21
02/11/21
02/01/22

“It is predominantly duration based,” he 4HEûlNALûBOOKûSTOODûATûõMûINCLUDINGû

said. “You can see how crazily well shorter €45m of JLM interest).
trades have gone today, but the bid for Source: Refinitiv Tom Revell

International Financing Review January 22 2022 19


Political order clouds EDF’s
bond market strategy
Utility stung by government order to limit impact of energy price rises
French energy group EDF is facing risks of
further ratings downgrades after the Macron
government announced exceptional
measures to limit the impact of soaring
energy prices that will hit the state-owned
utility’s top line, raising questions about its
funding strategy this year.
The company has already been
downgraded a notch by Fitch to BBB+, while
Moody’s and S&P have placed it on notice for
WEEK IN NUMBERS
1.9%
„ THE YIELD THAT 10-YEAR TREASURIES
HIT ON WEDNESDAY, THE HIGHEST LEVEL
SINCE JANUARY 2020, AFTER SOME
PROMINENT INVESTORS SUGGESTED THE
Totaro said that “sub-investment-grade for FED HIKES RATES BY 50bp
EDF’s hybrids is a potential outcome now %
that its rating is on the edge of it”. 2.0
Much will depend on the impact on EDF’s
revenues. The government’s policies to
1.5
protect consumers ahead of a presidential
election could potentially lead to an €8bn or
so hit on its earnings this year, although the 1.0
COMPANYûNOTEDûTHATûTHEûEXACTûlNANCIALû
consequences “cannot be precisely 0.5

02/12/20

02/12/21
02/10/20

02/06/21

02/08/21

02/10/21
02/06/20

02/08/20

02/02/21

02/04/21
02/01/20

02/04/20
a similar move on their A3 and BBB+ ratings, determined at this stage”.
following the government’s order for EDF to
sell power to rivals at a cheaper price, as
well as a delay in tariff increases.
Antonio Totaro, senior director at Fitch,
warned that further downgrades by the
agency could not be ruled out. “Another
downgrade from us could come if the
COMPANYûDOESûNOTûCOMEûUPûWITHûSUFlCIENTû
remedial measures.”
Bankers and analysts are assessing EDF’s
options in the capital markets. One way it
could seek to protect its ratings is through
further hybrid transactions, although it is
already one of the biggest issuers of the
instrument.
“Another downgrade from us
could come if the company does
not come up with sufficient
remedial measures”
“According to the limits Moody’s and S&P
impose on the relative amount of hybrids in
a capital structure, EDF still can issue a bit
less than €10bn today, which leaves them
with a bit of room,” said Nadege Tillier, head
of corporate credit research at ING.
The utility has a total stock of hybrids at
around €12bn, according to S&P. Its most
recent hybrid, the €1.25bn non-call
December 2027, has fallen a couple of points
h)ûUNDERSTOODûTHATûõBNûlGUREûASûAûCOSTû
given the company’s overall Ebitda at
around €15bn, so how far that number is
actually going to impact the Ebitda or what’s
the true impact on Ebitda are still
unknown,” said Tillier.
0.025%
„ THE YIELD ON 10-YEAR BUNDS ON
Bankers do not expect EDF to come to the WEDNESDAY, WHICH CROSSED INTO
bond market until it reports its annual POSITIVE TERRITORY FOR THE FIRST TIME
results on February 18, when it is likely to SINCE MAY
come up with a sizeable package of %
measures to mitigate the impact from the 0.4
government’s decision. 0.2
“They will sit tight for now,” said a 0.0
syndicate banker. “It’s not their style to -0.2
front-run ratings actions and investors will -0.4
also want to see what’s going on.”
-0.6
The rating cut from Fitch stripped away
-0.8
the company’s composite Single A credit
-1.0
02/01/19
03/03/19
02/05/19
02/07/19
09/08/19
02/10/19
02/12/19
02/12/20
02/12/21
02/10/20
02/06/21
02/08/21
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02/06/20
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02/04/21
02/02/20
02/04/20
rating status, but there will be a market for a
right price, said a DCM banker.
“There will always be shifts and evolving
market conditions,” he said. “The European
market is a deep market, so, if appropriately
structured, even a sizeable deal could get done.”
Investors are also used to a degree of
uncertainty around the credit. “It is negative
5.4%
„ THE ANNUAL CPI RATE IN THE UK IN
at the moment, but if you have been DECEMBER, THE HIGHEST READING
invested in EDF, there always was volatility IN NEARLY 30 YEARS
in that name – it’s constant. Even in seniors,
sometimes it performs well then widens and
tightens back again,” said Tillier.
“Still, I don’t see why they won’t be able to
15.6%
„ THE PROPORTION OF THE EURO IG
tap the market and do the sizeable funding CORPORATE MARKET TRADING WITH
that they usually do. Of course, they will NEGATIVE MID-YIELDS AS OF JANUARY
OVERûTHEûPASTûWEEKûTOûBEûBIDûATûû
ACCORDINGûTOû2ElNITIVû%$&SûHYBRIDSûAREû
rated investment grade by Moody’s and
Fitch at Baa3 and BBB–, respectively, but
sub-IG at BB– by S&P.
Jack Daley, member of the portfolio
management team at TwentyFour Asset
Management, wrote that any downgrades of
the hybrids to below investment-grade could
lead them to “drop out of the IG index,
causing further selling pressure from IG
investors”.
20
have to pay some premium but investors
playing that name, namely investors in
Southern Europe, they are looking for yield
and looking at higher beta because credit is
so expensive. If you’re a fund manager doing
purely credit, you don’t have much choice.”
She put the new issue premium for
potential senior issues from EDF at around
20bp–25bp for a 10-year tenor against other
French utilities such as Engie (Baa1/BBB+/A–)
and Veolia (Baa1/BBB/BBB).
Jihye Hwang
International Financing Review January 22 2022
18, ACCORDING TO TRADEWEB. ON
DECEMBER 31 IT WAS 25.77% OF THE
MARKET
€2.314bn
„ THE AMOUNT OF CORPORATE BONDS
THE ECB BOUGHT (NET) IN THE WEEK
TO JANUARY 14 AS PART OF ITS CSPP
COMPARED WITH €550m THE WEEK EARLIER
In total, it has bought €314.313bn since the
programme began in 2016

SSAR
US DOLLARS
CADES TAKES 10-YEAR WINDOW
WHILE IT CAN
CADES braved out the 10-year part of the
dollar market last Wednesday, opting to
navigate rates-inspired volatility to raise
duration and avoid potentially more
challenging conditions later in the year.
4EN
YEARûDEALSûTENDûTOûBEûMOREûDIFlCULTû
to execute than shorter-dated trades in
dollars, but a sell-off in the Treasury
market has made execution even more
treacherous as the market speculates on
what the Fed will do next.
“The closer we get to the FOMC
“It was either this week or wait a few
weeks, and because we don’t know where
the market will be in two to three weeks
time, it was wise to go and do a 10-year
now.”
Finding a two-day execution window next
week could be problematic, given the FOMC
meeting.
“The market is a bit challenging because
there is a large amount of volatility at the
moment. The 10-year tenor is also a bit more
challenging but I believe it’s a good
outcome,” said the lead.
h#ADESûAREûAûmEXIBLEûISSUERûnûTHEYûCANûDOûAû
US$2bn trade and they can also do US$5bn
trades. At the 10-year point, a US$5bn trade
was not there today.”
Final books for the US$3bn transaction
closed in excess of US$4.25bn (including
US$300m JLM interest), rising from over
US$2bn at IoIs.
“Books were well oversubscribed. We
BONDS SSAR
accounts, that is as usual, it is just that
people are a bit more worried about the
future and rates, so they are more hesitant
in placing big orders.”
The spread for the January 2032 Reg S/
144A note was set at SOFR mid-swaps plus
48bp, 2bp inside IPTs, through BNP Paribas,
Deutsche Bank, Goldman Sachs and JP Morgan.
“In terms of pricing, we were right there.
It was good to start at plus 50bp, that’s a nice
attention-grabbing number. The curve is
quite steep to 10-years. If you do an
extrapolation of some of Cades’ bonds, you
would get fair value in and around 46bp,”
said the lead.
“I think there is a belief in the market that
things are not going to get better for a few
MONTHSûWITHûINmATIONûANDûRATESûMOVINGûUPû
There is also the French election in the not
too distant future, so for French credits to do
more challenging maturities could be
DIFlCULTûGOINGûFORWARDv
*ANUARYûn ûTHEûMOREûDIFlCULTûITûWILLû
be to do a trade. The week after that is
Asian holidays when it is not possible to do
a trade really, so we would have had to
wait until well into February to do the
transaction,” a lead said.
could have seen a bit more orders on the The French presidential election begins
central bank side but still there was good on April 10 and ends on April 24.
participation, particularly with Asian and
European accounts,” said the lead. TEXTBOOK TRIO
“Accounts are a bit more sensitive than The other transactions came at the short
usual. It’s not in terms of the number of end, perceived to be more defensive during

ALL INTERNATIONAL GREEN BONDS ALL INTERNATIONAL BONDS (ALL CURRENCIES) ALL BONDS IN EUROS
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues US$(m) (%) bank or group issues €(m) (%)
1 BNP Paribas 14 1,989.38 8.5 1 JP Morgan 106 35,265.84 9.1 1 JP Morgan 40 16,120.91 10.3
2 JP Morgan 12 1,514.48 6.5 2 Citigroup 81 31,144.53 8.0 2 BNP Paribas 42 13,662.28 8.7
3 Deutsche Bank 7 1,495.61 6.4 3 Deutsche Bank 70 22,301.28 5.8 3 Deutsche Bank 36 11,446.88 7.3
4 Natixis 5 1,378.99 5.9 4 BNP Paribas 70 21,971.88 5.7 4 Barclays 29 11,069.39 7.0
5 HSBC 15 1,369.71 5.9 5 Barclays 66 21,594.77 5.6 5 UniCredit 32 10,220.53 6.5
6 Citigroup 11 1,226.14 5.3 6 Bank of America 72 19,552.89 5.0 6 Societe Generale 31 7,980.21 5.1
7 Barclays 8 940.39 4.0 7 Goldman Sachs 55 16,855.24 4.4 7 Goldman Sachs 23 7,935.84 5.0
8 Credit Agricole 9 881.30 3.8 8 HSBC 64 16,292.89 4.2 8 Credit Agricole 25 7,626.74 4.9
9 ING 5 721.55 3.1 9 Credit Agricole 40 12,981.91 3.4 9 Citigroup 26 7,079.53 4.5
10 UniCredit 4 620.93 2.7 10 Societe Generale 40 12,283.86 3.2 10 Natixis 24 7,005.73 4.5
Total 42 23,340.06 Total 352 387,451.48 Total 118 157,222.82
Excludes social bonds and mixed use of proceeds. Including Euro, foreign, global issues. Excluding equity-related debt, Including Euro-preferreds. Excluding equity-related debt,
US Global ABS/MBS. US Global ABS/MBS.
Source: Refinitiv SDC code: JG1 Source: Refinitiv SDC code: J1 Source: Refinitiv SDC code: N1

EUROPEAN SOVEREIGN BOND AUCTION RESULTS WEEK ENDING JANUARY 21 2022

Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover
Jan 18 2022 UK £2.5bn 0.50 Jan 31 2029 1.105 2.39
Jan 18 2022 Italy €965m 0.95 Dec 1 2031 1.311 -
Jan 18 2022 Italy €785m 2.25 Sep 1 2036 1.618 -
Jan 18 2022 Germany €3.22bn 0 Apr 16 2027 –0.290 1.35
Jan 18 2022 Finland €995m 0 Sep 15 2026 –0.252 1.85
Jan 19 2022 Germany €1.3258bn 0 May 15 2036 0.150 1.15
Jan 20 2022 Spain €2.157bn 0 Jan 31 2027 0.088 1.63
Jan 20 2022 Spain €1.386bn 0.50 Apr 30 2030 0.429 1.91
Jan 20 2022 Spain €1.177bn 1.20 Oct 31 2040 1.210 1.73
Jan 20 2022 France €4.397bn 0 Feb 25 2025 –0.350 3.25
Jan 20 2022 France €3.962bn 0 Feb 25 2027 –0.150 2.32
Jan 20 2022 France €2.138bn 0.75 Nov 25 2028 –0.010 2.92
Jan 20 2022 France (€i) €684m 0.10 Mar 1 2026 –2.080 3.03
Jan 20 2022 France (€i) €602m 0.10 Jul 25 2031 –1.500 2.81
Jan 20 2022 France (i) €460m 0.10 Mar 1 2032 –1.330 2.87
Source: IFR

International Financing Review January 22 2022 21

times of volatility, with fellow French
agency CAISSE DES DEPOTS ET CONSIGNATIONS and
JAPAN FINANCE ORGANIZATION FOR MUNICIPALITIES
targeting the three-year maturity, the latter
with a green bond, and NWB BANK going even
shorter for its long two-year.
Overall, the results were solid, with JFM
arguably the pick of the bunch, increased in
size to US$750m from a planned US$500m
central banks that are really driving the
demand.”
NWB’s US$1.25bn March 2024 Reg S/144A
NOTEûATTRACTEDûAûlNALûBOOKûOFûMOREûTHANû
US$2bn.
“It is a good outcome and printing quite
tight,” said a lead. “It’s a classic defensive
maturity and issuing with a bit of spread, so
that is working well for it. If you look at
EUROS
NO FIREWORKS FOR SSAS AS
INVESTORS PUSH BACK
AUSTRIAûMANAGEDûTOûPULLûOFFûITSûlRSTû
syndicated deals of 2022 last Wednesday,
but a sharp repricing in the government
due to the strength and depth of demand.
Order books closed in excess of US$1.4bn,
edging up from US$1.2bn at IoIs.
The spread for its January 2025 Reg S/
144A green bond tightened 3bp from IPTs,
set at plus 26bp through Nomura, Barclays,
Bank of America and Morgan Stanley.
For CDC, the spread on its February 2025
THEIRûCURVEûITSûmATûTOûFAIRûVALUEûBUTûTOûBEû
honest, I looked more at that
KommuneKredit trade as the last liquid
print.”
The spread was set 1bp inside IPTs at plus
15bp through BMO Markets, Daiwa and
NatWest Markets. There was 1bp new issue
concession on offer, according to the lead.
bond market and mediocre secondary
performance of recent deals have meant
that, while primary transactions are still
being absorbed, there has been a paradigm
shift from the buy-anything conditions that
have prevailed for much of the past 18
months.
Quantitative tightening was always going
Reg S note was set at plus 21bp, 1bp inside
IPTs, through BNP Paribas, Citigroup, Daiwa,
Deutsche Bank and HSBC.
Books closed in excess of US$1.7bn and
the deal priced with a new issue concession
of around 1bp, according to a lead.
“It was a good quality order book with
CENTRALûBANKSûANDûOFlCIALûINSTITUTIONSû
“It is a different market backdrop, in
reality, and you have to accept that. The big
UK number earlier got everyone focused on
INmATIONûAGAINûANDûHIGHERûYIELDSû!TûSOMEû
point, there was going to have to be a
REmECTIONûOFûTHATûINûTHEûMARKETûANDû)ûTHINKû
we have seen that. I think it’s nothing too
horrible and I’m generally quite happy with
TOûBEûAûBIGûTOPICûINûûBUTûWITHûINmATIONû
running hot, central banks are now
expected to move earlier and more
aggressively than had been anticipated. The
impact has been sharp with the yield on
Germany’s 10-year benchmark passing 0%
FORûTHEûlRSTûTIMEûSINCEûû
“Bund yields have moved into positive
prominent in there,” said the lead. how the market is going here,” he said. TERRITORYûFORûTHEûlRSTûTIMEûINûAûLONGûTIMEvû
“ALMs and asset managers are bit The annual CPI rate in the UK in December said a banker.
sensitive to the volatility in rates, so it’s was 5.4%, the highest in nearly 30 years. h)NmATIONARYûPRESSURESûAREûBECOMINGû
more and more visible, and as more
L-BANK LEANS ON LEADS economies move out of this environment
ALL INTERNATIONAL US$ BONDS
L-BANK ventured into the market on where there are Covid restrictions, these
BOOKRUNNERS: 1/1/2022 TO DATE
Thursday with a dual-tranche offering, price increases become hard to ignore. The
Managing No of Total Share
bringing a new US$1bn January 2025 %#"ûWILLûlNDûITûHARDERûANDûHARDERûTOûPUSHû
bank or group issues US$(m) (%)
benchmark and a US$250m tap of its 1.375% back against rising prices.”
1 Citigroup 51 21,425.43 12.5 October 2028 note. While Austria achieved a comfortably
2 JP Morgan 59 15,136.32 8.9 Lead manager demand was required to get oversubscribed set of transactions, deal
3 Bank of America 47 13,769.69 8.1 the shorter leg over the line, with books sizes, order books and the amount of spread
4 Morgan Stanley 37 9,171.45 5.4 closing in excess of US$1bn (including tightening were indicative of solid rather
5 Goldman Sachs 32 7,752.35 4.5 US$125m JLM interest). The spread was set than spectacular trades.
6 Deutsche Bank 27 7,274.09 4.3 unchanged from IPTs at mid-swaps plus 18bp. “The supply has been well received to a
7 Barclays 26 6,531.88 3.8 Demand for the longer tranche was more certain extent, although the sizes printed
8 BNP Paribas 26 6,113.09 3.6 than US$275m and the spread was also set in haven’t been at the top end of issuers’
9 HSBC 29 5,474.57 3.2
line with IPTs, at SOFR mid-swaps plus 34bp. ranges. Also, the order books aren’t hitting
10 RBC 17 4,992.11 2.9
Including the tap there is now US$750m the heights that we saw this time last year,”
Total 153 170,832.96
outstanding in the October 2028 bond. said a second syndicate banker.
Including Euro, foreign and global issues. Excluding equity-related debt,
US Global ABS/MBS. Barclays, BMO Markets, Deutsche Bank and JP Austria went with a triple-tranche
Source: Refinitiv SDC code: O1 Morgan lead managed the deal. offering. Demand for its €3.5bn October
2028 benchmark was in excess of €16.5bn
ALL US DOLLAR FIXED-RATE GLOBALS ALL SOVEREIGN BONDS IN EUROS (including €1.7bn JLM interest), more than
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE €11.3bn (including €525m JLM interest) for
Managing No of Total Share Managing No of Total Share its €1.5bn reopening of its 0% October 2040
bank or group issues US$(m) (%) bank or group issues €(m) (%) NOTEûANDûOVERûõBNûINCLUDINGûõMû*,-û
1 Citigroup 9 7,596.22 16.0 1 JP Morgan 8 6,789.17 16.3 interest) for the €1bn tap of its 0.7% April
2 Bank of America 9 6,515.56 13.7 2 BNP Paribas 5 3,769.95 9.1 2070 paper.
3 JP Morgan 6 3,766.88 7.9 3 Barclays 6 3,749.74 9.0 “There is not much room for
4 Barclays 4 3,535.36 7.4 4 Nomura 4 3,649.49 8.8 performance, really, when things are
5 Morgan Stanley 6 3,414.30 7.2 5 Deutsche Bank 4 3,550.47 8.5 coming tight. Some of the big accounts from
6 Deutsche Bank 2 2,529.00 5.3 6 Societe Generale 2 2,153.95 5.2 investors are telling us that,” said a third
7 TD Securities 3 2,396.34 5.0 7 Citigroup 4 2,151.57 5.2 banker.
8 MUFG 4 2,210.48 4.7 8 HSBC 2 1,857.13 4.5 A €3.5bn 10-year for Ireland priced the
9 Santander 3 2,050.67 4.3 9 Goldman Sachs 4 1,853.94 4.5 week before was quoted 3bp wider than
10 Goldman Sachs 3 1,506.56 3.2 10 Santander 1 1,657.97 4.0 reoffer on Wednesday, according to
Total 16 47,483.82 Total 10 41,562.94 Tradeweb.
Excluding equity-related debt, ABS/MBS. Excluding ABS/MBS. “I fear the SSA market may turn around at
Source: Refinitiv SDC code: O5 Source: Refinitiv SDC code: N4 some point. Last week was a bit of a return

22 International Financing Review January 22 2022


No let-up in 10s as five more add
to SSA supply
„ PUBLIC SECTOR Issuers continue to hit the same part of the curve though little sign of indigestion
Investors looking to buy 10-year euro public
sector paper were spoilt for choice last Tuesday,
with four borrowers targeting the tenor
successfully, helped by the variety of trades
on offer, before GREECE added to the stream of
supply at the same tenor a day later.
The 10-year part of the curve has been
popular with SSA issuers, with €44.5bn raised
year-to-date, already ahead of 2021, where
€39.6bn had been raised by this point, and
2020, when €38.15bn was raised in the whole
of January, according to IFR data. Yet, there
have been little signs of indigestion.
“There was enough differentiation between
the deals that they could each find their own
spot. There was plenty of space for everyone,”
said a syndicate banker on Tuesday.
BELGIUM brought the largest transaction,
raising €5bn via an OLO that priced at the joint
tightest level among the deals, at less 6bp,
alongside a €500m no-grow green note from
NRW.BANK. MUNICIPALITY FINANCE came 1bp
wider for its €1bn trade, while the PROVINCE OF
QUEBEC offered a substantial spread pick-up
for its €2.25bn deal, due in no small part to its
being the only deal of the four that is ineligible
for the ECB asset purchase programmes.
While Belgium was comfortably covered,
with books exceeding €21bn (including €1.9bn
of lead interest), it was a far cry from the
more than €50bn it attracted for its previous
syndicated 10-year transaction just over a year
ago, a €6bn October 2031 note that priced on
January 12 2021 at less 7bp – a trade that was
€1bn larger and tightened 1bp more during
execution.
“While we have seen some good appetite so
far in 2022, for sovereigns in particular some
of the results are perhaps a little bit softer than
expected,” said a second banker.
“The sizes they have printed are also
historically on the lower end of the spectrum
and the bonds haven’t really performed in
secondaries. That was the case for Ireland and
to reality after a surprisingly strong start to
the year. Now is the time to be a bit careful
and NIPs are important.”
Portugal last week and Belgium was trading a
bit softer in the grey market, but post allocations
it has recovered to trade at reoffer flat.”
At less 6bp, the June 2032 OLO landed at
the tight end of guidance through BNP Paribas,
Citigroup, JP Morgan, Natixis and Nomura. Fair
value was seen in the context of minus 7.5bp to
minus 8bp, according to the second banker.
“Around 3bp new issue concession at starting
was maybe not the right strategy when we have
seen so much supply in the market in the past
week,” he said.
“For Belgium, Ireland and Portugal, the start
to finish move has not been as people were
maybe expecting. They either started a little bit
punchy or have not got the high-quality demand
they wanted, which led them to move less than
what we have seen historically.”
Ireland printed a €3.5bn 0.35% October 2032
note on January 13 that tightened 2bp to land at
plus 1bp, while Portugal’s €3bn 1.15% April 2042
paper tightened 1bp to price at plus 60bp on
January 12.
10-YEAR EURO SSA SUPPLY
Volume €bn
60
50
40
30
20
10
0
2017 2018 2019 2020 2021 2022
10-year supply to Jan 19
10-year supply all January
Source: IFR data
“The 20-year was okay but, interestingly, the
very long end, the 50-year, looked quite good due
TOûTHEûHIGHûSPREADûPICK
BONDS SSAR
Belgium has increased its 2022 funding
target to €41.2bn from €39.3bn last year,
flagging three syndications for the calendar year,
including a 10-year, a 30-year and a new green
OLO, likely at the 15-year tenor, according to a
UniCredit research note.
LESSER DEMAND
On Wednesday, Greece’s €3bn 10-year attracted
a final order book of more than €15bn (including
€900m JLM interest). Though this covered the
deal five times over, demand was only around
half that the sovereign attracted for its previous
two 10-year syndicated benchmarks – a €3.5bn
June 2031 note that priced just under a year ago
with an order book of over €29bn and a €2.5bn
tap of the same bond that amassed more than
€30bn in interest in June.
The spread for the June 2032 note was set
at plus 140bp, 5bp inside guidance, through
Barclays, Commerzbank, Eurobank, Morgan
Stanley, Nomura and Societe Generale.
MuniFin and Quebec took measured approaches
to the market and achieved solid results.
For MuniFin, the spread for its February 2032
paper was set at less 5bp. Final books closed in
excess of €2.05bn via Citigroup, Danske Bank,
Deutsche Bank and TD.
It was a similar story for Quebec, with the
spread for its January 2032 note landing at plus
18bp through BNP Paribas, Deutsche Bank, JP
Morgan, NatWest Markets and Societe Generale.
“MuniFin and the Quebec deal were very
textbook transactions – 2bp tightening, good
level of oversubscription and landing close to
fair value. They were very good results,” said the
first banker.
NRW.Bank impressed with its January 2032
green bond with final books closing in excess of
€2.1bn.
The size and strength of demand allowed
leads DekaBank and UniCredit to squeeze the
spread in 3bp from guidance to land at less 6bp.
David Cheetham
Fair value for the seven-year note was seen in
the context of less 26bp, from interpolation of
UPvûSAIDûTHEûlRSTûBANKER the 0.75% February 2028s and the 0.5% February
The spread for the seven-year bond
tightened 2bp from guidance to land at mid-
swaps less 21bp through Barclays, Bank of
America, Erste Group, Goldman Sachs, JP Morgan
and UniCredit, while the 20-year and 50-year
taps both tightened 1bp, landing at plus 1bp
and 62bp, respectively.
“It is interesting there is still demand at
the long end. Spreads up to 30 years are way
too tight, maybe due to the ECB
programmes buying them up, which means
all the bonds in this range are expensive and
tight on a spread level. Past that, things look
more attractive.”
International Financing Review January 22 2022
SûACCORDINGûTOûAû5NI#REDITûRESEARCHûNOTE
LONG END GETTING DIFFICULT
That Austria could pull off such long-dated
trades was all the more impressive on a day
when Raiffeisen Bank International failed to
print a 15-year due to poor subscription levels.
23
 And while STATE OF BERLIN managed to get a “Euros overall look good and I’m For 2022, the borrower’s funding
€500m 30-year over the line, it had to lean expecting more supply, obviously. There is programme for maturities of two years or
on the lead manager group, with the lots to do and they are getting it done,” said more is €11bn, similar to the €10.7bn raised
€500m-plus order books including €125m of a syndicate banker. in 2021.
JLM interest. After a surprisingly strong start to 2022,
“The main takeaway is it went okay. I there have been growing concerns INFLATION SURGE UNLIKELY TO CAUSE
don’t think there will be a better market regarding the underlying strength of the RISE IN SOVEREIGN LINKER ISSUANCE
environment in the future, the long end is euro SSA market. And while deals continue
STILLûAûBITûDIFlCULTvûSAIDûTHEûlRSTûBANKER to get done, the overall tone has become !ûRECORD
BREAKINGûINmATIONûPRINTûFROMûTHEû
“I see it right above their curve, so 0bp more balanced due to the recognition of eurozone due to surging energy prices and
concession. Long-end Laender have moved notable headwinds. supply chain bottlenecks has ensured that
around 2bp in secondaries and that made it h)FûYOUûTAKEû1%ûmOWSûINTOûACCOUNTûTHISû rising price pressures remain at the
AûBITûMOREûDIFlCULTv YEARûWILLûBEûTHEûlRSTûTIMEûINûTHREEûYEARSûTHATû forefront of market participants’ minds,
There were no benchmark trades for the we’ll see positive supply. Investors will be THOUGHûINmATION
LINKEDûSOVEREIGNûISSUANCEû
rest of the week, though activity is expected stuffed with paper and that means they have ISûNOTûEXPECTEDûTOûSURGEûSIGNIlCANTLY
to remain at elevated levels this week, the choice. If something is too tight they can “It is certainly a factor that is driving
ACCORDINGûTOûTHEûlRSTûBANKERû just say they are not playing,” said a second broader markets, but could you see a
“I expect Finland . . . and there are banker. SIGNIlCANTûUPTICKûINûLINKERûISSUANCEûBECAUSEû
rumours that Italy may come again and h)NûEUROSûFORûTHEûlRSTûWEEKûTHEûTRADESû of that? I’m not sure,” said a senior syndicate
maybe France. KfW are also looking at were extremely granular, but on the whole banker.
maybe doing another transaction,” he said. they lost a bit of the granularity last week.” h)NmATIONûISûCLEARLYûAûTHEMEûBUTûMOSTû
While Rentenbank has a reputation for sovereigns have communicated their plans
RENTENBANK GETS IT RIGHT WITH
2028 TAP
RENTENBANK made the most of the lack of
competing SSA supply on Monday, achieving
a good result with an upsized €750m
reopening of its 0% December 2028 paper.
ALL SUPRANATIONAL BONDS IN EUROS
BOOKRUNNERS: 1/1/2022 TO DATE
Managing No of
bank or group issues
AGGRESSIVEûPRICINGûITSûLATESTûDEALûBENElTEDû
from an attractive spread over comparables,
according to a lead.
“It’s a very good transaction. For investors,
it is attractive versus KfW and Germany. You
have a pick-up of 6bp over KfW – that’s a fair
pick-up,” he said.
The tap landed at mid-swaps less 15bp,
tightening 1bp from guidance, via JP Morgan,
LBBW and Societe Generale.
Total Share
KfW’s €5bn November 2028 paper was
€(m) (%)
bid on Monday afternoon at minus 20.8bp,
for the year, it is quite predictable what you
will see on the sovereign side of things.”
Consumer prices in the European Union
rose 0.4% month-on-month in December for
a 5.0% year-on-year jump, data released last
Thursday showed. The print came the day
after the UK equivalent showed a 5.4%
increase year-on-year and a week after the
US posted a 40-year high CPI year-on-year
reading of 7.0%.
ITALIAN PLANS
1 UniCredit 2 2,830.46 21.8 according to Tradeweb. !FTERûMANYûYEARSûOFûMEAGREûINmATIONûITûISû
=1 Goldman Sachs 2 2,830.46 21.8 “Secondary levels showed the NOTûTOOûSURPRISINGûTHATûINmATION
LINKEDû
3 JP Morgan 2 2,326.20 17.9 Rentenbank bond trading between minus products are few and far between, but ITALY
4 Citigroup 2 1,249.92 9.6 12bp and minus 15bp. To print at minus remains one of the most prominent issuers
5 Credit Agricole 1 1,000.00 7.7 15bp you could even say it is a negative in the euro sovereign space and plans to
6 Deutsche Bank 2 745.66 5.7 concession, but when you take into account bring more supply this year.
7 HSBC 2 621.66 4.8 where KfW is trading, I’d say it is something “There are many sources of uncertainty
8 Natixis 1 495.74 3.8 like 1bp new issue concession. They have AROUNDûINmATIONûANDûTHEûRESPONSEûOFûCENTRALû
9 Barclays 1 249.92 1.9 left a little bit of room for some BANKSû4HEREûWILLûDElNITELYûBEûAûDECENTû
=9 BNP Paribas 1 249.92 1.9 performance,” said the lead. amount of activity in this segment. We have
Total 5 12,977.72 "OOKSûCLOSEDûINûEXCESSûOFûõMû an internal model we utilise to try and
Excluding ABS/MBS. (including €100m of JLM interest). Including OPTIMISEûOURûEXPOSUREûTOûINmATIONûBASEDûONû
Source: Refinitiv SDC code: N5 the tap there is now €1.25bn outstanding. MANYûSCENARIOSûOFûRATESûINmATIONûANDûSOû
on,” said Davide Iacovoni, general manager
ALL AGENCY BONDS IN EUROS MUNICIPAL, CITY, STATE, PROVINCE ISSUES IN EUROS
of public debt at the treasury department of
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE
Ministry of Economy and Finance.
Managing No of Total Share Managing No of Total Share
h7EûREALLYûNEEDûTOûHAVEûANûINmATIONûPARTû
bank or group issues €(m) (%) bank or group issues €(m) (%)
of our funding because part of the state
1 Barclays 3 3,176.68 17.8 1 JP Morgan 3 901.09 17.3 BUDGETûREVENUESûAREûLINKEDûTOûINmATIONû3Oû
2 JP Morgan 5 2,719.70 15.3 2 Nord/LB 3 652.61 12.5 we are different to other issuers in that
3 BNP Paribas 4 2,470.87 13.9 3 Goldman Sachs 2 454.49 8.7 REGARDûINûTHATûWEûHAVEûAûNATURALûINmATIONû
4 Societe Generale 2 1,746.64 9.8 4 NatWest Markets 1 446.60 8.6 hedge.”
5 HSBC 1 1,497.81 8.4 =4 Societe Generale 1 446.60 8.6 Just under a year ago, Italy raised €4bn via
=5 Credit Agricole 1 1,497.81 8.4 =4 Deutsche Bank 1 446.60 8.6 a May 2051 linker, the most recent
7 Deutsche Bank 2 1,493.14 8.4 =4 BNP Paribas 1 446.60 8.6 syndicated sovereign issuance in this format
8 TD Securities 2 683.00 3.8 8 Barclays 1 371.47 7.1 for the euro market.
9 Danske Bank 2 680.69 3.8 9 DGZ-DekaBank 2 281.14 5.4 h)FûINmATIONûSTARTSûGOINGûUPûTHENûTHATûHASû
10 Bank of America 1 435.52 2.4 10 UniCredit 1 198.12 3.8 an impact on tax revenues, so the fact that
Total 9 17,827.04 Total 4 5,207.59 we are going to pay more interest on these
Excluding equity-related debt. Including publicly owned institutions. Excluding ABS/MBS. bonds does not automatically imply that we
Source: Refinitiv SDC code: N6 Source: Refinitiv SDC code: N7 WILLûHAVEûMOREûDElCITûASûTHEûTAXûREVENUESû

24 International Financing Review January 22 2022

 BONDS SSAR

should balance it, at least in part,” said “Without them having a bond out there it The UK DMO plans one syndication in the
Iacovoni.
“Overall our presence in the linker
market in terms of gross issuance will be at
least in line with what we had last year and
we will probably have even higher net
issuance than in 2021. We have a low
volume of redemptions in linkers in 2022
compared to 2021.”
FRANCE is also expected to bring linker
issuance this year, with some market chatter
that the sovereign is eyeing a 30-year
transaction.
Approximately 10% of its total 2022
issuance is planned to be in linker format,
and a potential debut green linker is touted.
SPAIN may also target the market, while
is always a bit hard to make out fair value.
Looking at the differentials in the US dollar
with Cades and Dexia gave some indication,
though, and that led to us calling fair value
in the context of plus 42bp,” said the lead.
Dexia Credit Local brought a £750m 1.25%
July 2025 note the week before that was
priced at plus 45bp, the tight end of IPTs.
“You’ve seen some other names from the
region out lately, most notably the Dexia
print. That came at plus 45bp and is now
trading at plus 43bp, so it’s very little
concession over that,” said a second banker.
“Demand was solid and it was a good
result for a name that is quite infrequent in
the sterling market. Everything is still
lRSTûQUARTERûOFûûFURTHERûDETAILSûOFû
which will be announced in the week
commencing February 7.
The transaction will be for either a
reopening of an existing, or a new,
conventional Gilt in the 50-year area.
NON-CORE CURRENCIES
ADB HEALTH BOND DRAWS THE CROWDS
The ASIAN DEVELOPMENT BANK (Aaa/AAA/AAA)
reopened the Kauri market in some style on
Tuesday with an impressive NZ$1.2bn
53M ûlVE
YEARûHEALTHûBONDûISSUEûWELLû
GERMANY has said it would issue between
€6bn and €8bn via auctions.
“People are somewhat tied to what they
have already put out there in terms of their
working well. It is a little surprising given above the indicative minimum size of NZ$300m.
the amount of supply we have had, but the ANZ, BNZ and TD Securities were joint lead
appetite is still there.” managers for the second largest Kauri bond
Council of Europe raised £250m with its sale on record, behind only last November’s
PLANSvûSAIDûTHEûlRSTûBANKERû 1.25% September 2026 note issue, which .:BNûlVE
YEARûSUSTAINABLEûDEALûFROMûTHEû
“For instance, I don’t think Spain could ATTRACTEDûAûlNALûBOOKûOFûMOREûTHANûaM World Bank.
say we are going to do two or three linkers The spread was set unchanged from IPTs The 2.75% January 28 2027s were priced at
because the markets are good in that space. at Gilts plus 35bp, Bank of America, RBC Capital ûTOûYIELDûûINûLINEûWITHû
Sovereigns usually look forward by about 12 Markets and TD Securities. GUIDANCEûATûMID
SWAPSûPLUSûBPûORûBPû
months. For other SSAs, they naturally just
don’t have the need for linker issuance,
typical ALM issuers like EIB and KfW.”
STERLING
AFD AND CEDB SWOOP FOR STERLING
RENTENBANK moved slightly out the curve
for its £250m 1.25% July 2027 benchmark,
priced on Wednesday.
The spread was set unchanged from IPTs
at Gilts plus 30bp via Barclays, Bank of America
and NatWest Markets. Demand was in excess
of £200m by the last update.
KFW returned to sterling on Thursday for
its second transaction of 2022 in the
wide of the April 2027 NZGB.
New Zealand investors bought 71.4% of
the bonds, Asia 28% and others 0.6%. Banks
were allotted 71.1%, asset managers 14.7%
ANDûOFlCIALûINSTITUTIONSûû
ADB plans to use the money raised to
lNANCEûAûPOOLûOFûPROJECTSûRELATEDûTOûTHEû
health sector, directly or indirectly through
governments or rural governments of ADB
AGENCE FRANCAISE DE DEVELOPPEMENT returned to
the sterling market after an almost seven-
year absence last Tuesday, adding to the
busy start in the currency for SSA issuers.
Counting the French agency’s deal and
the other deal in the market for the COUNCIL
OF EUROPE DEVELOPMENT BANK, supply had
already surpassed the £7.25bn issued by
January 18 in 2021, at £10.125bn, according
to IFR data.
“Today is really a testimony to the strong
YEARûGENDERûBONDSûFROMû!$"û
start of the year we have seen for sterling,”
said an AFD lead.
currency, pricing a £500m tap of its £1.85bn
0.875% July 2024 note issue.
The spread was set at 32bp over the 1%
April 2024 Gilt, 1bp inside guidance, via
Barclays, Bank of America and HSBC. Final
books closed in excess of £840m.
UK DMO DELIVERS UPDATE
The UK DEBT MANAGEMENT OFFICE has published
the minutes of calls with GEMMs and
investors, held on January 17.
Many attendees recommended that the
proportion of index-linked Gilts should be
MEMBERSûORûlNANCIALûINSTITUTIONSûORû
investments in private-sector health
projects.
The Kauri market raised an annual record
.:BNûINûûVIAûûDEALSûFROMûû
SSAs, comfortably exceeding the previous
year’s NZ$6.465bn supply.
Of last year’s total, more than half
(NZ$4.125bn) came via six ESG-related issues
including NZ$375m of 10-year and NZ$750m
OFûlVE
h)TûISûDIFlCULTûTOûQUANTIFYûEXACTLYûHOWû
much impact an ESG label has on domestic
“Investors are still there. The book growth
process may be a little bit slower than during
THEûlRSTûWEEKûOFûTHEûNEWûYEARûBUTûTHEûWELLû
DIVERSIlEDûINVESTORûDEMANDûISûSTILLûTHEREû
Transactions continue to work very well.”
!&$ûWASûBACKûWITHûITSûlRSTûDEALûINûTHEû
currency since it priced a £250m trade that
YEARûSALEûONû
matured in 2017, according to IFR.
A lead said it was a successful outcome for
the issuer. “It was a nice book that attracted
Cash-rich investors are clearly attracted by
incrementally more demand into the
transaction, especially after we set the spread.”
Books closed over £650m, rising from
INCREASEDûINûTHEûNEXTûlSCALûYEARûWITHûAûRISEû
of 12%–16% the most commonly cited.
Further green Gilt issuance was widely
supported, with recommendations for both
reopenings of the two existing green Gilts
and for one or more new maturity points to
be added.
A new maturity in the 20-year area was
most widely proposed, but there were
ISOLATEDûCALLSûFORûNEWûGREENû'ILTSûINûTHEûlVE
year and 40-year maturity areas, with
potential scope for an index-linked green
Gilt also mentioned by one attendee.
investor demand for Kauri bonds, but it is
fair to say that I believe it has a material
positive impact,” said Glen Sorensen,
director of syndicate at ANZ.
Norwegian agency KOMMUNALBANKEN, rated
Aaa/AAA (Moody’s/S&P), followed ADB’s strong
TRADEûWITHûITSûOWNû.:MûlVE
Friday, which raised a lot more than the
indicative minimum issue size of NZ$200m.
the pick-up available in the Kauri market versus
more liquid government bonds, as the KBN
û&EBRUARYûûSûWEREûPRICEDûATû
£470m when the spread for the £500m of Some attendees recommended that ûTOûYIELDûûBPûOVERûMID

1.25% June 2025 notes was set at Gilts plus reopenings of existing green Gilts could be SWAPSûANDûBPûWIDEûOFûTHEû!PRILûû.:'"
43bp, 2bp inside guidance, via Bank of delivered via auctions, with new lines being ANZ, CBA and TD Securities were joint lead
America, Deutsche Bank and HSBC. launched via syndication. managers for the transaction.

International Financing Review January 22 2022 25

 NIB slipstreams on Danish CORPORATES

sovereign green bond US DOLLARS

„ SSAR Massive demand leads to surge of wider ESG interest TARGET HITS LONG END AFTER MORE
THAN A DECADE
The NORDIC INVESTMENT BANK slipstreamed on The deal was priced at 33.5bp through mid-
the huge oversubscription of Denmark’s first swaps, in line with guidance. This translated to Big box retailer TARGET took a stab at the long
sovereign green bond last week to deepen 18.2bp over the November 2029 government bond. end of the credit curve in its latest debt
the local market with the supranational’s first
environmental bond in its member state’s
currency.
The DKr2bn (US$305m) no-grow January
2030 issue, lead managed by Danske Bank
and SEB, emerged one day after the kingdom
YEARûTENORSû4HEûNOTESû
achieved a record greenium of 5p on its debut.
No sovereign green bond has achieved that
pricing level at launch before.
The offering ranked as Denmark’s most
oversubscribed auction since 2008, according
to the central bank (Danmarks Nationalbank),
which manages the sovereign’s borrowing.
Although at least one leading local pension
fund declined to participate on the grounds of
price, a raft of domestic institutions and some
international investors submitted DKr23.54bn
of bids for the sovereign’s green twin to its
November 2031 0% government bond.
The DKr5bn issue was sold with a cut-off price
of 98.63 and a yield of 0.14%. Its conventional
twin was trading at 0.19% at the time of pricing.
MONTHû
UNMET DEMAND
Hellerup termed pricing “pretty much in line
with what we would do in euros”.
Before last week, only one SSA borrower had
ever offered a green bond in kroner. EIB issued
a DKr3bn climate awareness bond in June 2019,
with Danske as lead manager. Buyers included
domestic pension funds ATP and PKA.
Now, though, with ESG mandates multiplying
in the country, further issues seem likely.
“Investors are really, really interested in ESG
products in Denmark now,” said Hellerup.
REPO OBSTACLE
Despite NIB’s desire to avoid cross-currency
swaps to fund its local lending, the new issue
also ranked as only its second bond in kroner in
the past 20 years, according to Hellerup. This
reflects the deep local mortgage bond market,
against which supranationals struggle to offer
value, as well as its lack of repo eligibility with
Danmarks Nationalbank.
This disincentive for bank treasury buyers
comes despite Denmark’s 21.1% share of NIB’s
paid-in and callable capital. It founded the
lNANCINGûOFFERINGûONEûOFûTHEûFEWûBONDû
deals from industrial issuers in a US primary
market dominated by bank paper last week.
Target raised a US$2bn two-part senior
unsecured note, rated A2/A/A, split equally
ACROSSûlVEûANDû
priced at Treasuries plus 38bp and 85bp,
respectively, from whispers of the 60bp and
100bp area. Bookrunners were Barclays, Bank
of America and Citigroup.
The retailer’s decision to target longer-
dated maturities comes as investment-grade
borrowers look to get ahead of interest rate
increases from the US Federal Reserve
WHICHûISûUNDERûPRESSUREûTOûBRINGûINmATIONû
under control.
Target had last printed a 30-year bond in
January 2008 as part of a US$4bn three-part
bond, according to IFR data.
The retailer has thrived during the pandemic
as demand for its wares jumped in the work-
from-home environment. That helped drive a
ûGROWTHûINû%BITDAûINûTHEûlRSTûNINE
period of 2021 versus the comparable stretch in
Against this strong background, Helsinki- multilateral development bank with Finland, ûCORPORATEûlLINGSûSHOW
headquartered NIB swooped in to harness unmet Iceland, Norway and Sweden in 1975. “The pandemic has meaningfully
demand.
“Following the success of the inaugural green
government bond issue from the Kingdom of
Denmark, we saw a surge in demand for DKK-
denominated green assets from the domestic
investor base,” said Gustav Landstrom, global
head of SSA origination at Danske Bank.
NIB was “the perfect name to answer to that
call, considering its top credit quality, locally
anchored green bond framework and strong
name recognition among Danish institutional
investors”.
A largely domestic group of ESG-oriented
investors including AP Pension, Danske
Bank Asset Management and Nykredit Asset
Management, plus a single UK account, bought
into the same-day deal. Sales were split evenly
between fund managers (52%) and pension
funds and insurers (48%).
NIB’s eligible assets would only permit a
DKr2bn offering, though local green bond
appetite is now so strong that it could have
equalled the sovereign’s deal size if it had further
capacity and compromised a little on pricing,
said Jens Hellerup, head of funding and investor
Besides NIB, several other supras in which
Denmark is a shareholder lack repo eligibility.
These include the European Investment Bank
and the World Bank.
Danish banks actively buy supras in other
currencies such as euros and Swedish kronor
where their bonds are repo-eligible, however.
€1bn RECORD
NIB is on course for a near-€1bn record of green bonds
in 2022, according to Hellerup. It will issue its usual
€500m benchmark later in the year, with timing
dependent on internal asset/liability management
considerations. In autumn it will determine in which
market to fund its remaining requirement.
The new issue was NIB’s second green debut
in a member state currency in quick succession.
In October, it marked its 10-year anniversary in
the green bond market with an inaugural deal in
Norwegian kroner – a NKr1bn (US$113m) six-year
– as well as its latest Swedish krona offering.
Triple A peers EIB and KfW have raised a combined
NKr27bn in green format since 2019. The German
agency accounts for the bulk of this volume, mostly
through a repeatedly tapped August 2023 bond.
BENElTEDûMANYûRETAILûCATEGORIESûGIVENû
changes to consumer behaviour such as
more time spent at home, discretionary
budget savings from reduced spending on
services like travel, and stimulus payments
which mitigated unemployment spikes,”
said Fitch analysts.
EUROS
HEAVY SUPPLY WEIGHS ON
REAL ESTATE CREDITS
Investors are becoming more selective regarding
real estate credits after heavy supply, which
resulted in very different pricing outcomes for
two property issuers out on Tuesday.
German homebuilder DVI and French real
estate company GECINA were in the euro
market with moderate sizes, adding to the
mURRYûOFûREALûESTATEûSECTORûISSUANCEûTHATûHADû
REACHEDûõBNûINûTHEûlRSTûTWOûWEEKSûOFû
the year, according to IFR data, compared
with the overall euro IG corporate issuance
relations. Julian Lewis VOLUMEûOFûõBNûINCLUDINGûSOMEû%-û
crossover names.

26 International Financing Review January 22 2022


DVI (BBB–/BBB–) was marketing its debut
EUROûOFFERINGûWITHûAûlVE
YEARûTENORûATû)04SûOFû BBB+, Moody’s/S&P) or Heimstaden Bostad
mid-swaps plus 250bp–260bp. At the other
end of the pricing spectrum, Gecina (A3/A–)
began marketing a capped €500m 11-year
green bond at plus 75bp–80bp.
h)TSûBECOMINGûMOREûDIFlCULTûTOûNAVIGATEû
the market, particularly for the real estate
sector credits, because of the weight of
supply,” said a syndicate head who was on
the Gecina trade. Last year, the sector made
up about 20% of overall volumes, compared
with around 40% in the early weeks of this
year.
“Investors are being more selective about
their execution and issuers are pricing
accordingly.”
The lead put fair value for Gecina’s bonds
somewhere between its June 2032s and May
2034s that were seen at 41bp and 52bp. The
€500m notes landed at 60bp, after receiving
BONDS CORPORATES
peers such as Grand City Properties (Baa1/ The euro market is the key focus
for the company’s plans to diversify
(BBB/BBB, S&P/Fitch), according to S&P. funding sources, according to an
DVI was planning to tap the market with investor presentation, which also said the
an up to €500m offering as early as last proposed bonds will come with a
week, having engaged with investors since guarantee from parent Thames Water
December. Utilities and the intermediate holding
There is a sub-investment grade coupon company within the group, Thames
step-up of 125bp for the new notes that the Water Utilities Holdings.
SECONDûSYNDICATEûOFlCIALûSAIDûCOULDûHAVEû Financing subsidiary Thames Water
affected the overall demand. Utilities Finance is the issuer of the
“On one end, it’s a positive feature for potential secured Class A bonds that have
investors, but then it’s not eligible for the expected ratings of Baa1/BBB+
ECB’s CSPP.” (Moody’s/S&P), one notch higher than the
parent’s Baa2 rating from Moody’s.
THAMES WATER TAKES 4HEûCOMPANYûHASûANûANNUALûRElNANCINGû
TIME TO DIVERSIFY requirement expected at around £1bn. It
expects the majority of its debt issuance to
THAMES WATER is taking its time for a planned BEûCAPTUREDûUNDERûITSûSUSTAINABLEûlNANCINGû
euro two-tranche green bond offering that is framework.
set to diversify its funding. BNP Paribas, Morgan Stanley, NatWest
DEMANDûOFûOVERûõMûVIAûBNP Paribas,
Credit Agricole, CIC, HSBC, Mediobanca,
Santander and Societe Generale.
!ûSYNDICATEûOFlCIALûAWAYûFROMûTHEû
transaction saw fair value at plus 45bp,
leaving a 15bp concession, which he
described as “not the best” but in line with
premiums the real estate sector has had to
pay.
The UK’s largest water company Markets and SEB are bookrunners.
completed calls on Thursday for the
proposed transaction, consisting of a six- UPGRADE NARRATIVE SUPPORTS
year benchmark note and a potential ASPI DUAL-TRANCHER
10-year tranche, after announcing the deal
mandate on Monday. Crossover credit AUTOSTRADE PER L’ITALIA
“There’s no rush for this issuer, so they’re brought a €1bn dual-tranche offering on
just waiting for the right moment,” said a Tuesday that was more than twice
syndicate banker away from the deal. subscribed.
h4HEûDEALûISûNOTûABSOLUTELYûmYINGûBUTûITSûAû “Neither banks nor issuers had the courage
small transaction, and given the macro to wait and relax last week and they all wanted ALL US INVESTMENT GRADE CORPORATE DEBT
BOOKRUNNERS: 1/1/2022 TO DATE
backdrop of rising rates and the amount of to front-run the supply against rates
supply, the pricing looks fair,” the banker uncertainties, and so we saw such a crazy Managing No of Total Share
bank or group issues US$(m) (%)
said. “I would expect an IG corporate name amount that it was hard for investors to digest.”
to pay a NIP of 10bp–15bp and higher if the The overall €20.1bn of corporate issuance 1 Citigroup 31 13,117.29 11.2
company wants to go long.” last week, after including some EM 2 Morgan Stanley 27 12,973.40 11.1
4HEû&RENCHûOFlCE
FOCUSEDûREALûESTATEû crossover credits, according to IFR data, 3 JP Morgan 42 10,361.21 8.9
OPERATORûWILLûUSEûTHEûPROCEEDSûTOûlNANCEûORû coupled with the rising rates environment, 4 Bank of America 38 8,621.36 7.4
RElNANCEûAûPORTFOLIOûOFûELIGIBLEûGREENûASSETSû prompted issuers to pay concessions in the 5 Goldman Sachs 23 6,115.02 5.2
INCLUDINGûTHEûREDEMPTIONûORûRElNANCINGûOFû range of 15bp–20bp, depending on the tenor 6 Credit Agricole 12 4,384.41 3.8
outstanding green bonds. and credit. 7 Barclays 17 4,134.36 3.5
If it comes this week, Thames Water 8 MUFG 19 4,059.32 3.5
DEBUT IN SOFT MARKET would be tapping the market in a week that 9 Wells Fargo 21 3,949.80 3.4
DVI, on the other hand, failed to move bankers say will see a relatively light 10 BNP Paribas 19 3,918.02 3.4
pricing from the tight end of the IPTs, albeit volume, following the glut of supply and Total 80 116,739.79
the amount raised ended up being €50m because of earnings blackouts. Source: Refinitiv SDC code: F9
more than the minimum target. The issuer
ALL INV-GRADE US CORPORATE BONDS ALL CORPORATE BONDS IN EUROS
SETûlNALûTERMSûFORûTHEûõMûBONDûATûMID

BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE
swaps plus 250bp. Books were over €460m
ATûTHEûlNALûSPREADûAFTERûPEAKINGûATûONLYû Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues €(m) (%)
€545m. Deutsche Bank was sole global
1 Bank of America 13 2,987.37 11.9 1 BNP Paribas 17 3,226.74 11.0
coordinator and a bookrunner with
2 JP Morgan 9 2,474.78 9.9 2 Deutsche Bank 10 2,423.37 8.2
UniCredit.
3 Barclays 6 1,789.38 7.1 3 Citigroup 11 2,130.12 7.2
“It’s a new name – pretty small company
4 Wells Fargo 9 1,670.13 6.7 4 JP Morgan 13 2,077.33 7.1
coming with small size when the market is
5 Citigroup 6 1,398.27 5.6 5 Goldman Sachs 10 2,062.66 7.0
pretty soft,” said the second syndicate
6 RBC 6 1,336.60 5.3 6 Barclays 8 1,712.02 5.8
banker.
7 Sumitomo Mitsui 5 1,190.50 4.7 7 UniCredit 9 1,401.31 4.8
“Investors have plenty of choices, and
8 TD Securities 5 1,056.70 4.2 8 Societe Generale 11 1,192.03 4.0
especially in that sector, so it looks like the
9 Goldman Sachs 6 1,026.99 4.1 9 HSBC 8 1,157.89 3.9
name is one of the easiest ones to skip.”
10 Credit Agricole 4 991.33 4.0 10 ING 8 1,006.93 3.4
DVI is focused on German residential
Total 21 25,076.04 Total 36 29,460.03
assets and has a portfolio of around €2.1bn,
Excluding equity-related debt, ABS/MBS, all foreign issues, global issues Excluding equity-related debt. FIGs, ABS/MBS.
which is relatively small scale and size and non corporates.
compared with other residential real estate Source: Refinitiv SDC code: F6a Source: Refinitiv SDC code: N8

International Financing Review January 22 2022 27


ESG’s strong run builds
in IG corporates
„ CORPORATES SRI angle serves to narrow premium required
Bond issuance incorporating environmental,
social or governance components maintained a
strong run in the euro and sterling investment-
grade corporate market, with three issuers using
the label to hit the screens on Wednesday.
Spanish utility group Corporacion Acciona
Energias Renovables and pan-European logistics
property company P3 Group were marketing
green euro bonds, while UK-based housing
association Places for People was in the market
to price a sterling sustainability note.
CORPORACION ACCIONA ENERGIAS RENOVABLES
launched a capped €500m 10-year senior note
at 98bp over mid-swaps, inside initial price
thoughts of 120bp–125bp, through ACCIONA
ENERGIA FINANCIACION FILIALES (BBB–/BBB (high),
Fitch/DBRS).
One syndicate official put fair value at 30bp–
35bp inside IPTs for the pure renewable player,
saying the deal would be fine despite the issuer
being an unfamiliar name.
A lead said the transaction priced very close
to fair value of 96bp–97bp, benefiting from the
green angle. Other single-tranche green deals
have also managed to price tightly since the turn
of the year, in contrast to most transactions that
have needed some sort of concession to clear.
Both Icade and Electricity Supply Board, for
example, priced green bonds inside or very close
to fair value.
The Acciona lead referred to the issuer’s
0.375% October 2027s as well as 1% November
2033s from Italian electric utility A2A (Baa2/
BBB, Moody’s/S&P) that were seen at a spread
of 62bp and 82bp, respectively, prior to the deal
announcement.
Books continued to grow, reaching €2.25bn
before settling at over €2.1bn. Banco Sabadell,
BBVA, Bestinver Securities, Bank of America,
CaixaBank, Credit Agricole, HSBC, ING, Mizuho
and Santander were the leads.
P3 GROUP (BBB, S&P) went bigger in size for
its green bonds with a €1bn dual-trancher. Final
terms for a €500m four-year portion and another
€500m seven-year note were set at mid-swaps
plus 100bp and 150bp, respectively, with each
Aspi (Ba2/BB/BB+) is a sub-investment
tranche tightening by only 10bp from IPTs of the
110bp area and 160bp area.
The syndicate official put fair value for both
notes 30bp inside IPTs.
“People would rather have a 10-year note from
a renewable energy company than a four-year
from a real estate name,” said the lead on the
Acciona trade. “There’s no debate about green
helping drive demand, but real estate – that
sector has issued a hell of a lot.”
Comparables for P3 Group’s deal included
0.875% January 2026s and 1.25% June 2029s
of Central and Eastern European property
company CTP (Baa3/BBB–/BBB–) that were
seen at a benchmark spread of 95bp and 138bp,
respectively, prior to the deal announcement.
CTP’s are also green bonds.
Combined books came in at over €1.62bn. The
four-year note gained orders in excess of €800m,
while that for the seven-year tranche was more
than €820m.
BNP Paribas, Deutsche Bank, HSBC, ING and
JP Morgan were joint bookrunners.
STERLING TOO
In sterling, PLACES FOR PEOPLE TREASURY tapped
the market with its debut ESG bond. The
financial arm of its parent PLACES FOR PEOPLE
GROUP sold a £300m sustainability 14-year note
that received books exceeding £660m after
peaking at £720m.
The housing association indicated an expected
issue size of £250m when it was out with IPTs
at the Gilts plus 135bp area. The bonds have
expected ratings of A3/A–/A. The final spread
was set at 123bp through Barclays, Goldman
Sachs and NatWest Markets, with a lead putting
the concession at 10bp.
“This sector [housing association] strongly
adopted ESG, with 90% of the bond supply
last year coming with an ESG label,” said a
sustainable finance head.
“We will eventually get to a stage where
there’s either an ESG label or a strong social
disclosure measure for those bonds.”
Jihye Hwang
they are not offering much new issue
another €500m 10-year bond at mid-swaps
PLUSûBPûANDûBPûRESPECTIVELYûVIAû
active bookrunners Citigroup, JP Morgan and
UniCredit.
IPTs started at the 170bp–175bp and
215bp area over the benchmark. The
company’s December 2028s and January
SûWEREûSEENûATûBPûANDûBPû
before the deal’s announcement.
Books were slightly skewed to the
longer end at over €1.3bn for the 10-year
bond as it offered a higher premium
compared to the six-year tenor which saw
demand pass €1bn.
Moody’s sees some uncertainties with
Aspi following the collapse of the Polcevera
viaduct in August 2018 that was managed by
the company and led to prolonged
discussions with the Italian government
about its future. The positive outlook,
however, comes as the ratings agency
expects Aspi’s credit quality to improve as a
result of the agreement for the sale of
Atlantia’s entire stake in Aspi last June.
ICG FINDS LACK OF MOMENTUM
Alternative asset manager INTERMEDIATE
CAPITAL GROUP priced a €500m eight-year
sustainability-linked note issue at mid-
swaps plus 230bp, failing to tighten from
initial price thoughts.
“These days, there is not a lot of
momentum to move the price,” said a
DCM banker away from the deal. “It
looked like a solid deal to me, coming from
not a very well-known name.”
Books came in at over €600m via HSBC,
JP Morgan and Societe Generale.
“It’s a modest subscription for a
benchmark size, which is interesting given
the pick-up people are getting paid,” said a
lead. He put the concession in the context
of 30bp, citing ICG’s February 2027s that
were seen at around 133bp, although the
premium depends on how people work
out the curve.
The issuer was planning an eight or 10-
year maturity but eventually went with
the shorter tenor, as the rates environment
is prompting investors to become more
price-sensitive at the long end of the curve.
“The issuer would have preferred a 10-
year, if it was on, but the feedback we
received was quite heavily skewed to
towards the eight-year,” said the lead.
The bond issue extends the company’s
DEBTûMATURITYûPROlLEûANDûLOCKSûINûCHEAPERû
grade credit but its ratings are under review concession,” said an investor. lNANCINGûASû)#'û"""n""" ûPLANSûTOûUSEû
for an upgrade by Moody’s and comes with a One lead put the concessions at 5bp–10bp THEûPROCEEDSûTOûRElNANCEûMATURINGûDEBTû
positive outlook from S&P. Fitch also revised
Aspi’s rating watch to positive last June.
“The upgrade narrative remains intact
here but people weren’t expecting a new
issue right now and the view seems to be
28
ACROSSûBOTHûTRANCHESûALTHOUGHûTHEûlGUREûONû
the longer end of the curve remains “very
subjective”.
4HEû)TALIANûTOLLûROADûOPERATORûSETûlNALû
terms for a €500m six-year note and
International Financing Review January 22 2022
and increase cash reserves, according to
S&P.
There is a 30bp coupon step-up if the
company fails to meet its sustainability
targets.

SWISS FRANCS
ZUG ESTATES CAPITALISES ON GREEN
DEMAND FOR DEBUT
ZUG ESTATES HOLDING brought its debut green
bond issue on Wednesday, taking advantage
of demand for environmentally sound
products to print a SFr100m (US$110m) no-
grow long seven-year inside fair value.
Following an investor call on Tuesday,
joint leads UBS and ZKB announced initial
price thoughts of Saron mid-swaps plus
65bp–70bp. That was swiftly revised to
63bp–65bp before pricing came in at the
TIGHTûENDû7ITHûAûûCOUPONûANDûAûû
their trades on a yield basis to cater to
investors’ preference.
The absolute yield pricing method is
preferred when investors want to know the
MINIMUMûAûBONDûWILLûYIELDû3UCHûAûmOORûISû
important for them, especially when they
expect benchmark rates to move lower.
However, it means they may have to accept
tighter spreads when benchmark rates rise
during bookbuilding.
JGB yields started to move higher from
late December, driven by movement in
Treasury yields on expectations that the US
Federal Reserve would tighten faster than
PREVIOUSLYûTHOUGHTûTOûCONTAINûINmATIONû/Nû
January 11, the 10-year JGB yield hit 0.15%,
the highest level since March 2021.
BONDS CORPORATES
“In the past four years, JGB yields have
been susceptible to downward pressure,”
said a Japanese fund manager. He said he
preferred absolute yield pricing because
yields had dropped after Bank of Japan
governor Haruhiko Kuroda denied the
possibility of near-term tightening.
Five-year JGB yields also need to turn
positive in order for spread pricing to be
used in corporate bond deals.
“Ten-year JGB yields are in positive
territory now, but yields in the mid-term
segment are still below zero, so I expect
corporate deals will continue to use the
absolute yield pricing unless mid-term JGB
yields turn positive,” said the syndicate
banker.
yield, the bonds came 85.6bp over the Swiss
YEARû
government curve. At that level, it was some
5bp inside Zug Estate’s curve.
A total of 55 all-Swiss accounts took part
for an average SFr1.82m ticket. Asset
managers took 68%, banks, private banks and
But on January 14, when there was decent !SûOFû&RIDAYûATûMIDDAYûlVEûANDû
supply in the domestic market, seven of the JGBs traded at –0.075% and 0.125%,
eight corporate issuers used the absolute respectively.
yield pricing method to price their bonds.
Earlier on that day, Reuters published a SOFTBANK SEALS BIGGEST TRADE
story noting that the Bank of Japan was
TREASURYûACCOUNTSûûPENSIONûFUNDSûûANDû discussing how soon it can start SOFTBANK GROUP raised a massive ¥550bn
insurance companies 1% – the latter two with telegraphing an eventual rate increase. That (US$4.81bn), its biggest trade to-date, from
such small portions as both are already PUSHEDû*'"ûYIELDSûUPûBPûINûTHEûlVEûTOû
the sale of a subordinated bond issue to
heavily invested in the property sector. year segments by the time these bonds were retail investors on Thursday. The seven-year
Zug Estate Holding is rated mid BBB by priced. Because the coupon guidance for the bonds, rated BBB+ by JCR, were priced with
#REDITû3UISSEû"AAnûBYûFEDAlNûANDû"""nûBYû
ZKB, with a second-party opinion from ISS
ESG.
YEN
JAPAN FAVOURS YIELD PRICING
YEARûCORPORATEû
Despite rising yen yields in the domestic
market, Japanese investors still prefer
issuers to market new bond deals on an
absolute yield basis, not spread pricing.
Yen yields have been slowly rising with
US yields, but investors are sceptical as to
whether yen yields will really rise further.
As a result, issuers of short to mid-term
corporate bonds are continuing to market
*ANUARYûûTRADESûHADûBEENûlNALISEDûTHEû a 2.48% coupon at par.
prior day, investors ended up with tighter The telecoms giant led by Masayoshi Son
spreads than previously thought. is a frequent issuer in the domestic retail
Still, the majority of the deals in the bond market, usually raising ¥400bn or
pipeline were marketed with coupon more per deal, and the latest trade exceeded
guidance, as investors are opting for that ITSûPREVIOUSûRECORDûOFûcBNûINû!PRILû
pricing method. )TSûSENIORûDEALûINû3EPTEMBERûûANDû
h+EYûBUYERSûOFûTHREEûTOûlVE
subordinated transaction in September 2021
bonds are pension funds, and what they see
[when they decide to buy or not] is at what ALL CORPORATE BONDS IN STERLING
BOOKRUNNERS: 1/1/2022 TO DATE
levels the BoJ buys corporate bonds,” said a
syndicate banker in Tokyo. As the BoJ Managing No of Total Share
bank or group issues £(m) (%)
operations are conducted on an absolute
yield basis, pension funds opt for the 1 Lloyds Bank 2 245.80 22.9
absolute yield pricing method. 2 Indl & Comm Bk China 1 165.80 15.5
The absolute yield pricing method is also =2 Santander 1 165.80 15.5
still favoured because investors doubt that Total 3 1,072.24
yen yields will rise further. Source: Refinitiv SDC code: N8a

ALL INVESTMENT-GRADE BONDS IN EUROS ALL SWISS FRANC BONDS INCLUDING ALL INTERNATIONAL STERLING BONDS
BOOKRUNNERS: 1/1/2022 TO DATE SECURITISATIONS EXCLUDING SECURITISATIONS
Managing No of Total Share BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE
bank or group issues €(m) (%)
Managing No of Total Share Managing No of Total Share
1 JP Morgan 35 15,704.67 11.2 bank or group issues SFr(m) (%) bank or group issues £(m) (%)
2 BNP Paribas 36 12,977.38 9.2 1 Credit Suisse 15 1,425.44 26.0 1 HSBC 14 2,616.62 15.6
3 Deutsche Bank 32 11,045.22 7.9 2 UBS 13 1,369.20 24.9 2 Barclays 10 1,643.01 9.8
4 Barclays 23 10,492.34 7.5 3 ZKB 6 1,324.56 24.1 3 NatWest Markets 11 1,485.27 8.9
5 UniCredit 23 8,802.70 6.3 4 Commerzbank 5 358.18 6.5 4 RBC 9 1,308.00 7.8
6 Goldman Sachs 18 7,502.98 5.3 5 Raiffeisen Schweiz 3 336.71 6.1 5 Citigroup 4 1,223.48 7.3
7 Societe Generale 24 7,178.76 5.1 6 BNP Paribas 5 300.68 5.5 6 Bank of America 9 1,184.39 7.1
8 Credit Agricole 18 6,472.67 4.6 7 Deutsche Bank 2 262.91 4.8 7 Lloyds Bank 5 1,153.36 6.9
9 Natixis 19 6,358.15 4.5 8 Basler KB 1 46.80 0.9 8 Deutsche Bank 4 1,006.21 6.0
10 HSBC 21 6,179.78 4.4 9 Luzerner Kantonalbank 1 33.33 0.6 9 JP Morgan 3 683.23 4.1
Total 95 140,305.31 =9 Credit Agricole 1 33.33 0.6 10 TD Securities 4 626.25 3.7
Excluding ABS/MBS, equity-related debt. Total 23 5,491.18 Total 29 16,722.43
Including preferreds. Excluding equity-related debt. Including preferreds. Excluding equity-related debt.
Source: Refinitiv SDC code: N9 Source: Refinitiv SDC code: K06c Source: Refinitiv SDC code: K05a

International Financing Review January 22 2022 29

were also ¥500bn each, but both were dual- division, Goldman reported a slight drop in Citigroup’s earnings release was the more
tranche trades and offered to institutional REVENUESûFROMûlXED
INCOMEûCURRENCYûANDû eventful, as the bank used the opportunity
and retail investors.
The issuer will use ¥454.68bn of the
proceeds to replenish cash on hand at a
subsidiary, which had decreased after it
repaid debt in December, and the remainder
to repay bonds that mature in February and
December.
Nomura, Daiwa, Mizuho, SMBC Nikko,
Mitsubishi UFJ Morgan Stanley and SBI Securities
TO
mOATINGû yield took another leg higher, moving up to
were the joint lead managers.
FIG
commodities trading in the fourth quarter.
Results also showed the hit from the heated
competition for bankers as operating
expenses in the fourth quarter surged 23%
from a year ago to US$7.27bn.
MORGAN STANLEY also printed a US$6bn
three-part senior unsecured bond deal on
Wednesday, the largest tranche of which
WASûAû53BNû.#ûlXED
offering. In addition, it sold a US$2.25bn
.#ûANDûAû53BNû3/&2ûmOATER
CITIGROUP AND JP MORGAN DIVE
INTO ROUGH WATERS
CITIGROUP and JP MORGAN braved market
turbulence on Tuesday to kick off the post-
to unveil plans to exit its consumer banking
unit Citibanamex, following its
announcement to divest its consumer
banking businesses in South-East Asia.
Though a thorn to prospective borrowers,
the sharp increase in interest rates will
likely put pressure on other US banks to
deploy new deals soon. The 10-year Treasury
1.86% on Tuesday from 1.77% on January 14.
“Banks are typically busy issuers in
January and we wouldn’t be surprised to see
peers join the capital markets fray in
comings days [and] weeks with rates on the
move and spreads still supportive,” said
CreditSights analysts.
US DOLLARS
GOLDMAN PRINTS ANOTHER
RECORD-BREAKER
GOLDMAN SACHS carried out its largest debt
YEARûmOATERûANDû53BNû
raise on Wednesday after it reported fourth-
quarter earnings, coming on the heels of
TO
mOATINGûNOTESû4HEûmOATERûPRICEDûATû
EARNINGSûISSUANCEûSPREEûMARKINGûTHEûlRSTûOFû
the US money centre banks to raise fresh EUROS
funds last week.
)NûAûREPEATûOFûITSûlNANCINGûEXERCISEûINû INVESTORS HOLD THE CARDS
April 2021, Citigroup raised US$5.5bn across AS FIG CONCESSIONS RISE
Aû53MûFOUR
four-year and US$3bn 11-year New issue premiums ticked higher in the
lXED
euro senior market as investors
similar issuance from Citigroup and JP BPûOVERû3/&2ûWHILEûTHEûFOUR
YEARûlXED
demonstrated their power, forcing
Morgan at the start of the week. TO
mOATINGûNOTESûLANDEDûATûBPûOVERû borrowers to play their hand and reveal
Goldman priced a US$12bn six-part senior Treasuries. their pricing intentions.
UNSECUREDûNOTEûCONTAININGûTHREE
YEARûlXED
Both four-year notes were issued under A busy start to the year for FIG issuers
TO
mOATINGûTHREE
YEARûmOATINGûSIX
YEARû Citigroup’s social bond framework, as the continued last week, even in spite of the
lXED
TO
mOATINGûSIX
YEARûmOATINGû
YEARû DEBTûRAISEûWILLûGOûTOWARDSûlNANCINGûTHEû onset of European bank reporting periods,
lXEDûANDû
YEARûlXED
TO
mOATINGûPORTIONS bank’s portfolio of affordable housing and bankers said the sheer volume of debt
4HEûTHREE
YEARûANDûSIX
YEARûmOATERSûCAMEû investments. raised was taking its toll. The impact was
in at SOFR plus 70bp and 112bp, tightening Interest rate volatility on Tuesday may most readily apparent in the senior
FROMûPRICEûTHOUGHTSûOFûTHEûBPûANDûBPû have hampered execution, as Citigroup’s 11- unsecured space, which has now absorbed
AREAû-EANWHILEûTHEûlXED
RATEûTRANCHESû year priced at 118bp over Treasuries, €24.65bn of issuance since the start of the
were set at Treasuries plus 70bp, 100bp, coming in wider than CreditSights’ year.
BPûANDûBPûFROMûBPûAREAûBPû assessment of fair value at 105bp–110bp. “In the senior market, it’s fair to say if you
area, 145bp area and 140bp area, The analysts pointed out its 2.52% 2032 asked buyside participants most would ask
respectively. senior unsecureds had traded at around for a break [in supply]. But on the issuer side
Wednesday’s jumbo bond exceeded the 110bp on January 14, according to of the fence, it seems to be skewed towards
SIZEûOFûITSû53BNûDEALûINû/CTOBERûWHICHûATû
the time set a record as the bank’s largest
offering, according to IFR data.
The debt raise could represent all the
bank’s senior note issuance this year, said
CreditSights analysts, who had pencilled in
an estimate for US$12bn of new supply
from the bank.
Goldman went on a borrowing spree in
2021 to fund the growth of its prime
brokerage business, printing nearly
US$41bn of debt, according to IFR data. That
pace is expected to slow sharply in 2022.
“We intend to issue materially less
benchmark debt for this year versus 2021,
though we will remain dynamic with
respect to business needs and market
opportunities,” said Denis Coleman, chief
MarketAxess data.
Some of the sogginess in the primary
MARKETûREGARDINGûTHEûDEALûMAYûALSOûREmECTû
investor fatigue around seeing the same
banks come to the market in every issuance
window.
“Because the banks come with new
bonds just about every quarter, there’s
never a scarcity premium. Anyone can get
all the Citi or JP bonds they want any
time,” said a portfolio manager. “When
supply is robust in general, sometimes the
big banks widen a bit more in the new
issue market.”
Going for size, JP Morgan sold a US$3.5bn
11-year senior unsecured note. The self-led
offering priced at 110bp over Treasuries
from whispers of 130bp area over.
validating current concessions in a backdrop
that doesn’t offer much upside,” said a
banker.
KBC GROUP WASûONEûOFûTHEûlRSTûISSUERSûOUTûINû
the euro senior market last week, with leads
BayernLB, BNP Paribas, Deutsche Bank, Goldman
Sachs and KBC marketing a six-year non-call
lVEûHOLDCOûSENIORûTRANSACTIONûWITHûINITIALû
price thoughts of mid-swaps plus 75bp–80bp
on Monday.
After around three and a half hours, the
LEADSûlXEDûTHEûSPREADûATûBPûWITHûNOû
update provided on the book size.
“A lot of investors were saying they just
NEEDEDûSOMEûDElNITIONûAROUNDûWHEREûWEû
were going to land,” said a banker at one of
the leads. “Clearly, you can infer the
bookbuild was slower than we’d hoped.
lNANCIALûOFlCERûATû'OLDMANû3ACHSûONûANû The deals come after the banks reported “We talked about how you can execute in
earnings call on Tuesday. results on January 14, with both showing a this market, what cards can you play? We
Though the bank recorded a historically DROPûINûREVENUESûFROMûTHEIRûlXED
INCOMEû played our cards and set the price, and then
strong year for its investment banking trading businesses in the fourth quarter. in the last half hour we’ve been very

30 International Financing Review January 22 2022


pleasantly surprised by the investor
reaction, which meant we could at least
discuss various sizing options.”
The leads went on to launch a €750m
deal, with books closing above €1bn as new
investors came in and others increased the
size of their orders.
“It’s an interesting representation of
where the market is,” said the lead banker.
“Books are building more slowly, investors
are disciplined on price and are very much
able to wait and see how deals develop
before putting orders in – that was quite
stark on KBC today.”
KBC’s deal also demonstrated the impact
of paying elevated concessions on issuers’
secondary curves, with its outstanding
holdco senior notes repricing in response.
+"#Sûû*ANUARYûûNON
there’s no guarantee the market will be open
on the way out. You have to go into this
market with your eyes open.”
Later in the week, issuers of senior
unsecured transactions found greater
traction by offering either ESG-labelled deals
(see separate article) or shorter tenors.
BPCE built a €1.4bn book for a €1bn four-
year senior preferred on Tuesday (as part of a
dual-tranche transaction, see separate
article), while, on Wednesday, BANCO
SANTANDER pulled in €2.7bn of orders to a
€1.5bn three-year non-call two senior
preferred.
Concessions remained substantial,
however, with BPCE paying up some 8bp
versus its curve and Santander 8bp–10bp.
BONDS FIG
The deal somewhat overshadowed a
€2bn 5.25-year covered sold by ROYAL BANK
OF CANADA the day before – itself one of the
largest covered bonds of recent years.
RBC’s April 2027 transaction was also
priced at 6bp, inside initial guidance of the
10bp area, on the back of more than
€3.15bn of orders (excluding JLMs).
BANK OF NOVA SCOTIA was also among the
action, having kicked off proceedings on
Monday with a dual-tranche covered
offering comprising a €1.25bn long eight-
year and a £1.3bn four-year.
The euro tranche was priced at 10bp,
with demand reported above €1.48bn (pre-
rec and including €85m JLM interest).
Bankers attributed the more modest
demand for BNS’s euro deal to the fact the
CALLûSû BMO SEALS SUPERSIZED COVERED issuer had sold a €1.75bn six-year covered
for example, widened from 60bp on Monday bond in December.
to 71bp by Friday, according to Tradeweb BANK OF MONTREALûSETûAûPOST
GLOBALûlNANCIALû The sterling tranche was priced at 28bp
lGURESû crisis record last week with a supersized over Sonia, with books above £1.4bn.
“Every new issue is repricing the market õBNûlVE
YEARûCOVEREDûBONDûTHEûMOSTû BMO was, like RBC, deemed to have paid
wider as issuers pay 15bp here, 15bp there,” eye-catching success from a series of a concession of around 2bp–3bp, while
said a third banker. “Because of that, we Canadian issues across the euro covered and BNS’s euro deal landed 1bp back of fair
need for supply to stop and for the market sterling senior markets. value.
to take stock.” BMO’s deal – the largest euro covered Bankers noted that average covered
bond since 2006, according to bankers bond premiums edged higher last week,
GO IN WITH YOUR EYES OPEN involved – underlined the outperformance but in the Canadians’ case, that mainly
Demand was also relatively slow to build for of Canadian bond offerings in a week in REmECTEDûTHEûVOLUMESûPRINTEDû
AûLONGûlVE
YEARûSENIORûPREFERREDûFORûNIBC which many issuers struggled for “To be fair, if BMO decided they only
BANK, also in the market on Monday. momentum. wanted €1bn, they could have got it to plus
The Dutch lender’s June 2027 transaction “For Canadians, it was a very fruitful week 4bp,” said a banker at one of BMO’s leads.
was marketed with IPTs of the mid-swaps – all deals went from well to superbly – h"-/ûANDû2"#ûAREûNOTûTRULYûREmECTIVEûOFû
PLUSûBPûAREAûTHROUGHûCredit Suisse, Deutsche
Bank, Goldman Sachs, JP Morgan and Societe
Generale.
4HEûlRSTûUPDATEûEMERGEDûAFTERûTWOûANDûAû
half hours to report books above €600m.
The €500m deal was ultimately launched at
YEARûBUTûLAUNCHEDûTHEûDEALû
while it was a bit of a mixed picture with the
other names,” said a syndicate banker.
BMO’s deal garnered more than €3.6bn of
demand as attractive relative value versus
core European covered bonds and
alternative investments in the SSA sphere
the NIP required.”
NATIONAL BANK OF CANADA proved that point
as it pushed pricing further on Thursday
while taking a smaller size.
NBC adopted the same 10bp area start
POINTûFORûITSûlVE
BPûWITHûlNALûBOOKSûLANDINGûATûõMû
Both issuers were deemed to have paid new
issue concessions of around 15bp.
“KBC and NIBC are both probably seeing
new issue concessions tick up a touch,” said
a fourth banker.
“Whilst KBC has recovered a lot, back to
core European levels, there is a sense that
for some investors they and NIBC are in the
second tier of names and maybe there is a
larger concession required for that sort of
credit. It’s also a function of how much
lured investors.
“We’re seeing asset managers and real
money investors really playing in size now,
and they haven’t been in the past years,”
said a second banker.
“That is in a way increasing the global
investor base and really pulling in investors
in the covered bond market. That’s why
we’re seeing pretty chunky book levels in
these Canadian transactions, they offer a bit
of relative value versus core Europe. And,
also, when you look at relative value versus
ATûBPûSHAVINGûTHEûlNALûNEWûISSUEû
CONCESSIONûTOûBPnBPû4HEûSIZEûWASûlXEDû
at €1bn with books closing above €1.5bn.
CIBC GOES ITS OWN WAY
Taking a different tack, CANADIAN IMPERIAL
BANK OF COMMERCE targeted the sterling
market, offering a four-year bail-in-able
senior unsecured transaction.
Bankers noted that appetite for sterling
senior paper from non-domestic names has
been limited so far this year.
supply there’s been across senior debt, SSAs, there’s a good pick-up versus where 2EmECTINGûTHATûINûAûRELATIVELYûRAREûSTEPû
WHETHERûITSûlNANCIALSûORûCORPORATESûNONEû
of which has [performed] much on the
secondary market.”
While market participants said a pause in
supply could help reset concessions, issuers
must weigh the risks of waiting.
“It shows you the power investors have
when [issuers] choose to hit a window where
SSA spreads are.”
That demand allowed leads BMO, BNP
Paribas, Commerzbank, Credit Agricole,
Santander and UBS to take the mammoth size
while tightening from initial guidance of
the mid-swaps plus 10bp area to price the
deal at 6bp.
”It’s an extraordinary transaction,” said
#)"#SûDEALûWASûMARKETEDûWITHûAûlXEDû
guidance range of the Gilts plus 100bp area
(+/–5bp).
“We felt going with something more
direct from the get go would help alleviate
investor concerns . . . and we didn’t feel
there was a material risk to starting with a
DElNEDûRANGEûINûTERMSûOFûCAPPINGûOURSELVESû
THEûMARKETûISûONûTHEûBACKûFOOTvûSAIDûTHEûlRSTû the second banker. “It’s a huge amount, out because it was very unlikely we’d see a
banker. “When we’ve had a few sessions of especially for BMO. The Canadians can print monstrous book that would give us
no supply, I think we will get better windows decent size but we’ve never really seen more exponential pricing power,” said a banker at
. . . but if you’re an issuer going into blackout, than €2bn being printed at once.” one of the leads.

International Financing Review January 22 2022 31

 The issuer was, however, unable to reach

Utmost debuts in RT1 as the tight end, with the spread ultimately
lXEDûATûBPûANDûTHEûSIZEûATûaMû4HEû
BOOKûCLOSEDûABOVEûaMûINCLUDINGûaMû

CNP offers rare Tier 3 JLM interest.

“All in all, it was a good execution process
to go through. We are a little disappointed
„ INSURERS Utmost revamps capital stack with RT1 issuance; CNP sells rare Tier 3  WEûDIDNTûGETûTOûLOOKûATûBPûBUTûITûWOULDû
Insurance companies UTMOST GROUP and
CNP ASSURANCES tapped into solid demand
for subordinated debt in sterling and euros,
respectively, on Thursday, with the former
landing a £300m inaugural Restricted Tier
1, while the latter stirred the dormant Tier 3
market.
Utmost’s deal was the first subordinated
FIG transaction in the sterling market this year.
As the issuer held investor calls last week,
bankers suggested it faced a relatively tough
task in opening the market, given substantial
movement in Gilts as well as the deal’s
expected rating of BB (Fitch), which limited
the crowd of investors able to participate. The
issuer’s default rating is BBB+.
“That’s not going to be the easiest to get over
the line, being Double B rated,” said a syndicate
banker ahead of the deal’s launch. However, the
issuer seized its moment as Gilts stabilised.
Leads Barclays, Lloyds Bank Corporate
Markets and NatWest Markets marketed the
perpetual non-call June 2029 transaction with
initial price thoughts of the 6.5% area for a
maximum size of £300m.
Guidance was later set at the 6.25% area
(+/–12.5bp WPIR) with the book above £825m.
Demand subsequently fell but the issuer was
nevertheless able to launch the deal at 6.125%.
The final book stood above £525m.
Reflecting on the result, bankers cited
encouraging signs given the relative
unfamiliarity of the issuer and the deal’s sub-
investment-grade rating.
“The fact that on a stable day, after a pretty
violent three days, we were able to get such
a book with high-quality investors coming in
bodes well for sub debt supply and sub debt
demand,” said a banker at one of the leads.
The new issue offered a pick-up versus
Triple B rated perpetual non-call 2031 RT1s
from fellow UK issuers Rothesay and Just
which, according to Tradeweb, were bid at
That bond was bid at a yield of 4.34% on
Thursday. Bankers noted that the bond and
other secondary market comparables had moved
around substantially in recent days, with the Tier
2s having been bid at a yield of 4.05% a week
before.
Part of the proceeds of the new issue will be
used to repay the £125m bank debt of Utmost
Holdings (Guernsey) Limited, the parent of
Utmost Group plc.
The lead banker said the deal had in effect
completed Utmost’s capital stack with just two
visits to the market in four months.
The deal follows the completion of Utmost’s
acquisition of Quilter International in November,
a transaction part-financed by last year’s £400m
Tier 2 issuance.
Utmost has stated its aim is to complete
further strategic M&A transactions and add
another £25bn of assets under administration
(AUA) over three-years – up from £62bn AUA as
of the end of the third quarter of 2021.
CNP (A1/A+/A+), meanwhile, launched a
€500m seven-year Tier 3.
There were only two Tier 3 euro benchmarks
issued last year, by Macif and Groupama, and
CNP’s last deal in the format was in December
2020, when it sold a 0.375% €500m March
2028 transaction.
The new issue was marketed with IPTs of mid-
swaps plus 130bp–135bp with the size capped
from the outset.
Leads Citigroup, Credit Suisse, HSBC, La
Banque Postale, Natixis, Societe Generale
ultimately set the spread at 110bp with books in
excess of €1.3bn.
Bankers said such demand was a good result
for a product that sits at the tight end of the
insurance capital spectrum.
“You don’t expect €2bn–€3bn type books in Tier
3 because it is quite skinny in terms of the overall
yield,” said a DCM banker away from the leads.
With CNP’s March 2028s bid at 99bp on
have been on the cusp with the book we
had,” said the lead.
DUO SHOWS TIER 2 DEALS NOT
IMMUNE TO SENSITIVITY
Tier 2 transactions for BPCE and BPER BANCA
last Tuesday showed the lightly supplied
euro bank capital space is far from immune
to the price sensitivity evident in other
markets as bankers acknowledged that
investors no longer need to chase yield
WHEREVERûTHEYûCANûlNDûIT
They were only the third and fourth euro-
denominated bank Tier 2 deals of the year,
following trades from Spain’s UniCaja Banco
and Italy’s Banco BPM the week before, and
THEûlRSTûINûBENCHMARKûSIZE
Given the lack of supply, their progress
was closely watched for signs of waning
appetite for subordinated debt, after
indications of fatigue and a pushback on
pricing in the senior unsecured market.
In tandem with a short-dated senior
preferred tranche, BPCE offered investors
THEûlRSTûCOREû%UROPEANûBANKûCAPITALûEUROû
benchmark of the year, marketing its 12-
year non-call seven Tier 2 with initial price
thoughts of mid-swaps plus 175bp area.
Sole lead Natixis went on to price a €1bn
deal at 157bp, on the back of more than
€1.55bn of orders.
BPCE also priced a €1bn four-year senior
preferred at 42bp on the back of more than
€1.55bn of orders.
A banker familiar with the trade said the
relatively unusual dual product format was
selected to take another large chunk out of
BPCE’s 2022 funding plan before the issuer
enters its blackout period. The French issuer
has now sold nine tranches of euro and US
dollar debt this year.
Bankers concluded from the deal that
core European Tier 2 remains relatively well
yield-to-calls of 5.54% and 5.74% on Thursday,
respectively.
Interpretations of the final price varied, given
the deal’s inaugural nature. But extrapolating
from Utmost’s Tier 2 paper and other insurers’
Tier 2s and RT1s, most bankers saw fair value at
around 6%, translating to a relatively slim new
issue premium of around 12.5bp.
The new issue is the life assurance group’s
second venture into the capital markets,
following a £400m December 2031 Tier 2
priced at 4% in September 2021.
32
Thursday, bankers saw fair value for the new
issue at around 105bp, implying the issuer paid a
5bp concession.
A banker at one of the leads noted that was at
the lower end of the concessions seen recently
in the euro market, adding that demand was
supported because the product offered some
incremental spread versus the levels currently
being paid for bank senior bonds.
The deal is expected to be rated A–/BBB+
(S&P/Fitch).
Tom Revell
International Financing Review January 22 2022
SUPPORTEDûBUTûSAIDûTHEûlNALûNEWûISSUEû
premium of 12bp–15bp on the Tier 2
TRANCHEûREmECTEDûAûLEVELûOFûPRICEûSENSITIVITYû
that had been absent in the subordinated
space for much of last year.
“[Tier 2] works better than senior non-
preferred because it offers a bit more juice,
and it has been scarce, but there is still
sensitivity and investors are being cautious,”
said the banker familiar with the trade.
“There are a number of insurance
companies involved in the trade attracted by
the absolute yield level, especially out of

France, but on the asset manager side a lot
are being more cautious. There is a potential
rise in yields and a potential repricing of
spreads, which means there is a lot more
sensitivity and [investors] don’t hesitate to
BONDS FIG
“It’s a good outcome given the LBBW CA NEXT BANK BRINGS TIGHT
headlines, which people seem to be SWISS COVERED
looking past,” said a syndicate banker
away from the deal. “It’s a testament to CREDIT AGRICOLE NEXT BANK brought a keenly
THATûlVE
YEARûVERYûSAFEûHIGHûQUALITYûSENIORû priced SFr100m no-grow July 2028 6.5-year
put in smaller orders or to drop if they think
you are tightening too much.”
RISK RE-VALUED?
That sensitivity was even more apparent in
BPER Banca’s July 2032 non-call 2027
transaction, as the deal was ultimately
launched in line with IPTs at 3.875%.
However, the book subsequently grew to
€775m-plus (including €50m lead manager
orders), allowing leads Barclays, BNP Paribas,
Citigroup, Intesa Sanpaolo, NatWest Markets and
Santander to set the size at €600m.
“This market is not one to be cute on,”
said a second banker. “Do you want size or
do you want price? I don’t think you can get
both in this market.”
While the hunt for yield that has driven
bank capital’s outperformance may not be
over, market participants said the deals
show that investor concern over expected
volatility and a potential repricing means
issuers and their syndicates cannot count on
piece continuing to work well.”
Speculation has surrounded the future
of Berlin Hyp amid talks over the sale of
the lender from its public-sector savings
bank owners to Landesbank Baden-
Wuerttemberg.
Earlier this month, S&P placed its
A-1 short-term rating of Berlin Hyp
on CreditWatch negative, stating that
the repositioning of the lender could
loosen its ties to the German savings banks
network and reduce the likelihood of it
receiving support from the group in
times of stress.
The deal comes after Berlin Hyp updated
its green bond framework to bring it into
line with the EU Taxonomy for Sustainable
Activities late last year. The bank has
pledged that 100% of its new green lending
will be aligned with the Taxonomy by the
end of 2026.
Elsewhere in the ESG bond sphere last
week, OP CORPORATE BANK sold a €500m 5.5-
covered bond offering on Thursday via Credit
Suisse and Luzerner KB, with Credit Agricole as
joint lead no books.
Initial price thoughts were at Saron mid-
swaps plus 12bp–15bp and the bonds
printed at the wide end, still paying a
negative 3bp new issue premium.
A total of 28 accounts took part for an
average ticket of just over SFr3.5m. Asset
managers took 63%, insurers and pension
funds 30.5% and banks, including private
banks, 6.5%.
CAnb is 100% owned by Credit Agricole
des Savoie, a part of Credit Agricole. Its
covered bonds are guaranteed by CAnb
Hypotheques SA and rated AAA by Fitch.
NON-CORE CURRENCIES
BANKS REVIVE AUSTRALIAN BONDS
Australian bank bond issuance has got off to
receiving the same level of demand as in
months gone by.
“There’s going to be decompression for
sure,” said a third banker, familiar with
BPER’s trade.
“Investors don’t just have to chase
YEARûSWEETû
something because it has a 4% coupon on it
anymore. It’s going to be very interesting.
People haven’t been valuing risk properly
for two years and I think there’s going to be
a big shift.”
Bankers suggested Additional Tier 1 or
Restricted Tier 1 capital would generate
greater enthusiasm than Tier 2, but no such
supply has been forthcoming in the euro
market, save for a €150m AT1 for Italy’s BFF
earlier this month.
“Following the repricing we have seen,
the spread between AT1 and Tier 2 is pretty
attractive, so there the chase for yield would
year inaugural green senior non-preferred
at 58bp upon a €1.8bn book.
Icelandic lender ISLANDSBANKI meanwhile
printed a €300m long three-year sustainable
senior preferred at 83bp, attracting more
than €450m of orders.
SWISS FRANCS
NAB DOUBLES DOWN IN SWISS FRANCS
NATIONAL AUSTRALIA BANK printed SFr300m
(US$328m) in a six and 10-year dual-
tranche senior unsecured deal on Monday.
The Aa3/AA– rated Australian major
announced respective IPTs of Saron mid-
swaps plus 30bp and 38bp area, and books
opened for minimums of SFr150m and
SFr100m shortly afterwards at the same
AûmYINGûSTARTûINûûWITHûISSUERSûRAISINGûAû
COMBINEDû!BNû53BN ûFOLLOWINGû
the end of cheap central bank funding.
COMMONWEALTH BANK OF AUSTRALIA, WESTPAC,
SUNCORP and the local branches of SMBC and
RABOBANKûALLûTARGETEDûTHEûlVE
spot, despite a diminished balance sheet bid.
Such volumes represent a return to
normality after Covid-related distortions
resulted in public Australian dollar senior
unsecured and covered bond supply from
LOCALûlNANCIALSûANDûBANKû+ANGAROOSû
plunging. Issuance fell from A$68.2bn and
!BNûINûûANDûûTOû!BNûINû
2020 and just A$28.1bn last year, according
to ANZ data.
This slowdown was largely due to the
Reserve Bank of Australia’s A$200bn Term
Funding Facility, which ran from March
2020 to June 2021 and provided banks with
PROBABLYûBEûMOREûAPPEALINGvûSAIDûTHEûlRSTû
YEARûFUNDINGûATûAûlXEDûRATEûOFûû
banker. “But the market has not been
tested.”
BHH RETURNS TO GREEN BOND MARKET
BERLIN HYP tapped into a resilient pocket of
demand in the belly of the senior curve as it
SEALEDûAûTWICEûSUBSCRIBEDûõMûlVE
YEARû tranche paid a 5bp premium.
green senior preferred transaction on
levels. It then priced SFr200m and
SFr100m in line with guidance.
The reason for the longer tranche being
smaller was to maximise the overall
issuance size, as investors have a marked
preference for shorter-end paper. Its
minimum SFr100m size was achieved with
a 10bp new issue premium. The shorter
A$133bn, while total drawdowns reached
Asset managers took the majority of
THREE
and then 0.1%.
Domestic senior supply remained muted
in H2 2021, with banks still awash with
liquidity from the TFF and bumper retail
deposits.
Australia’s four major banks accessed all
their TFF allowances for a combined
A$188bn across eligible authorised deposit-
4UESDAYûITSûlRSTûISSUEDûOFFûANûUPDATEDû%5û
Taxonomy-aligned framework.
The no-grow deal was priced at 30bp,
inside IPTs of the 45bp area, incorporating a
premium of around 5bp.
Commerzbank, Credit Agricole, JP Morgan,
LBBW, UniCredit were the leads.
both tranches, with 62.5% and 55.5%,
respectively. Insurers took 28% of the sixes
and 14.5% of the 10s, pension funds 7.25%
and 15% and banks, including private
banks, 2.25% and 15%.
Credit Suisse and UBS were leads on the
deals.
International Financing Review January 22 2022
taking institutions, which are mostly banks
but also building societies and credit unions.
Meanwhile, the household savings ratio
GREWûTOûûOFûDISPOSABLEûPERSONALûINCOMEû
in Q3 2021, according to the Australian
Bureau of Statistics, more than three times
pre-Covid ratios of 5%–6%.
33
 4HISûYEARSûREVIVALûWHICHûTARGETSûTHEûlVE
With the market shut on Monday for
year segment, shows bank treasuries are
NOWûREADYûTOûEXTENDûTHEIRûMATURITYûPROlLESû
ahead of TFF redemption towers in
September 2023 and June 2024, while
investors are keen to put their cash piles to
work after being starved of supply over the
last two years.
“The size of the A$4bn CBA senior
unsecured deal on January 11 encouraged
other FIG issuers to quickly follow by
illustrating the pent-up investor demand
The issuer has €750m of 5.875% December
Martin Luther King Jr Day, no deals were
seen in the primary market until
Wednesday, when two borrowers priced
taps. BUILDERS FIRSTSOURCE (Ba3/BB–) printed a
US$300m add-on to its 4.25% 2032s at 100.50
and US ACUTE CARE SOLUTIONS (B2/B–) sold a
US$225 add-on to its 6.375% 2026 notes at a
yield to maturity of 5.381%.
Activity perked up on Thursday as the 10-
year Treasury dropped to around 1.81%,
having climbed as high as 1.88% on Tuesday.
2025s that were yielding 3.364% on
Tradeweb last Wednesday afternoon.
The moves higher in rates are having a
clear impact on Europe’s high-yield primary
sector in terms of the maturities that some
issuers are willing to attempt and the
pricing that is required to access the market.
Webuild’s new deal was no exception.
“Webuild is a 4.5-year and there is a
reason for that,” said a third leveraged
lNANCEûBANKER
was more than offsetting any perceived
negative impact of the unwinding of the
committed liquidity facility,” said Adam
Gaydon, head of syndication at ANZ.
WIDER MARGINS
The expected upturn in bank issuance has
CONTRIBUTEDûTOûAûSIGNIlCANTûWIDENINGûINû
Hospital operator COMMUNITY HEALTH SYSTEMS,
crop protection company NUFARM, adventure
cruise company LINDBLAD EXPEDITIONS, private
jet company VISTAJET and insurance broker
RYAN SPECIALTY GROUP printed deals totalling
US$3.645bn.
Investors continued to pull cash from
HIGH
h0ARTLYûITûlTSûINTOûTHEIRûMATURITYûPROlLEû
they have a 2025 and 2027, but also why
push duration, given the mantra so far this
year has been ‘don’t do duration’? It is not
like you couldn’t do longer, but if you want
to optimise your costs we have been
advising that shorter duration is more
YIELDûBONDûFUNDSûWITHû53BNû attractive.”
spreads, with the 70bp clearing rate for the exiting the asset class in the week through Investors say that the premium they
recent CBA and Westpac trades being *ANUARYûûACCORDINGûTOû,IPPER would be looking for may be considerable,
materially more than the 41bp margin for Yet average high-yield spreads remain in even on something relatively mid-dated.
LASTû!UGUSTSû.ATIONALû!USTRALIAû"ANKûlVE
touching distance of all-time lows, closing at
year print.
Another factor behind higher spreads is
the shrunken balance sheet bid after the
Australian Prudential Regulatory Authority
announced on September 10 the winding
down of the RBA’s committed liquidity
facility by the end of 2022.
This was in response to soaring
Commonwealth and state government bond
h%VENûATûlVEûYEARSûVERSUSûAûLOTûOFûEXISTINGû
311bp over Treasuries on Wednesday, just
10bp wide of the low seen in December last
year. Analysts at Bank of America said on
Tuesday that investors expect this to change,
with a historically high share of both IG and
HY accounts now expecting wider spreads
over the next three months, based on a
survey. However, the net share of investors
expecting lower supply is at some of the
stuff I would expect a relatively steep curve,”
said Kyle Kloc, senior portfolio manager at
Fisch Asset Management.
“And, of course, the longer I go out, the
greater a premium I would expect. From an
issuer standpoint, they may not be that
happy with where we would be willing to
look at a deal.”
SUPPLYûWHICHûNOWûPROVIDESûSUFlCIENTûHIGH
highest levels on record.
quality liquid assets for banks to meet Basel
III rules.
As a result, banks buy far fewer CLF
assets, including domestic senior bank
bonds, to help achieve their required
liquidity coverage ratios. APRA reported the
aggregate CLF had fallen to A$102bn on
January 1 from A$140bn on September 10.
The latest Suncorp trade underlined this
buyside shift, with bank balance sheets
LINKEDû The high level of demand for the
taking just 18% of last Tuesday’s A$775m
FRN issue versus their majority 54% share of
3UNCORPSûPREVIOUSû!MûlVE
YEARû&2.û broader tone of the market.
offering that was issued two days before the
APRA CLF announcement.
YIELDûBANKERûh4HEûlRSTûFEWûDAYSû countries and government spending plans
HIGH-YIELD
RATEDûSUBû company’s high level of exposure to the
UNITED STATES
HIGH-YIELD LUMBERS INTO ACTION
The US high-yield market got off to a slow
THE RIGHT LEVEL?
EUROPE/MIDDLE EAST/
AFRICA
WEBUILD SLB SHOWS
PREMIUMS REQUIRED
Milan-headquartered construction company
WEBUILDûLANDEDûITSûlRSTûSUSTAINABILITY
bond issue last Wednesday, but the chunky
premium it gave investors underscored the
company Astaldi and associated operational
“It is a weak backdrop, look at equities,”
SAIDûONEûHIGH
of this week were a bit of shocker and rates
have been edging up. But, that said, when
rubber hits the road, deals are getting done.”
The issuer came out with price talk of 4%
area for a €400m 4.5-year BB–/BB rated
senior unsecured, in line with IPTs. Pricing
CAMEûINûATûû&ORûTHOSEûBETTER
investment-grade names that offer a little
less yield and are therefore less insulated
against moves in rates, higher new issue
premiums are almost inevitable.
“I think that it is a little too early to call
There was also some disagreement among
analysts over the appropriate pricing for the
new issue.
“We believe investors should ask for a
maturity and issuance premiums of around
30bp,” said Andrea Oelsner, a credit analyst
at Spread Research. “As such, we
recommend to subscribe in the 3.375%–3.5%
area.”
company’s services, the successful recent
integration of Rome-based construction
synergies, an increased focus on low-risk
likely to help boost activity were all seen as
supportive factors for Webuild’s bonds by
Oelsner.
While acknowledging some of these
points, the analysts at CreditSights
highlighted concerns linked to the
volatile construction sector in Italy, the
lRMSûGENERALûLACKûOFûINFORMATIONûDISCLOSUREû
and a high leverage for its rating bracket.
The company carries ratings of BB–/BB
and based on net debt, CreditSights sees
start but more issuers emerged as the how the market is shaping up, but I will say 7EBUILDSûLEVERAGEûATûXû4HATûlGUREû
week progressed and Treasury yields THATû7EBUILDûISûmASHINGûAûPRETTYûBIGû however, is the product of a disagreement
showed some signs of retreating from premium versus its curve,” said a second with Webuild over how the company
their climb. banker during bookbuilding. calculates its net debt. The issuer reports

34 International Financing Review January 22 2022

 BONDS HIGH-YIELD

leverage of 1.5x. CreditSights does not trade itself appeared reasonable. It just comes “It is really interesting, and I am looking
recommend buying the bonds if pricing down to pricing, which must compensate for forward to seeing how this shakes out,” said
comes in below 4%.
AMBITIOUS, BUT NOT THE FULL PICTURE
To avoid paying a 75bp redemption
premium, the issuer must reduce its carbon
intensity by 50% by the end of 2025,
incorporating Scope 1 and 2 emissions, from
a 2017 base.
According to an investor presentation, the
company’s carbon intensity has already
fallen by almost 30% since the base year.
the rates environment and other factors.
“Ceramtec has always been a decent
performer,” said one portfolio manager. “As
hospital waiting lists clear, there will be
more demand for things like hip and knee
replacements and the automotive sector
should recover as well.”
The company provides high performance
ceramic products to two markets: medical
and industrial.
However, despite their positive view of
THEûINVESTORûBEFOREûlNALûPRICINGûWASû
announced.
“The general view is bullish on credit,
negative on rates, so people are happy to
hold Triple Cs because they might not be as
risky as they usually are, and they are
insulated from interest duration. But a lot of
people can’t play them because of mandate
restrictions around ratings, valuations are
tight and then there are some macro
headwinds.”
While several sources said that the target
is ambitious and second-party opinion
provider Vigeo Eiris said that the KPI is
relevant, core and material to the issuer, it
has been pointed out that the target
overlooks the majority of the company’s
total emissions by excluding Scope 3
emissions.
Scope 3 emissions account for around 80%
of the Webuild’s emissions, according to
Vigeo Eiris.
CERAMTEC SPOTLIGHTS GROWING
FIXED-RATE SENSITIVITY
THEûlRMSûPERFORMANCEûFUNDûMANAGERSûSAIDû
they would need to be paid for the duration,
the company’s high level of leverage and the
subordination of the bond.
“It is a credit that has never really
delevered,” said the portfolio manager.
h!NDû"#û0ARTNERSûTYPIFYûlNANCIALû
ENGINEERINGû0%ûlRMSû)TûMIGHTûBEûAûHIGHû
coupon deal, but is it going to be an eight-
year piece of paper or a three-year piece of
paper? I think it is more likely to be an eight-
year and you have to get paid for that.”
The debt package backing the Ceramtec
acquisition is likely to push the company’s
The result so far, with the issuer leaning
even more heavily on the loan market than
initially planned, could also shape the way
that banks approach the market with other
deals.
“It will be an interesting benchmark for
Triple C issuance, but it will also be
something of a benchmark for what we do
in our LBO underwriting business for
unsecured bonds,” said a third leveraged
lNANCEûBANKER
EDREAMS LANDS TIGHT
In a sign of the increasing level of investor
PRICEûSENSITIVITYûAROUNDûlXED
RATEû performance is sustained at its current
instruments, German specialist ceramics-
maker CERAMTEC rejigged the components of
the debt package backing its acquisition by
BC Partners and CPP Investments last week
to increase the size of the loan offering and
scale back the bond portion.
Buyers are showing less price sensitivity
AROUNDûmOATING
LEVERAGEûUPûTOûûTIMESûBASEDûONû-OODYSû
estimates, although if operating
minimal concession last week as investors
levels this could be reduced to 7.5 times over
the next 12 to 18 months.
However, there is no headroom within its
ratings category for any further increases in
leverage, which could potentially result
from business underperformance or debt
funded acquisitions, wrote Moody’s analysts.
EDREAMS ODIGEO managed to land a
RElNANCINGûDEALûWITHûEITHERûNOûORûONLYûAû
FOCUSEDûONûTHEûlRMSûAPPARENTûRESILIENCEûTOû
and quick recovery from the pandemic,
though secondary performance suggested
that buyers might not be sleeping tight over
the weekend.
The Spanish online travel company was in
THEûMARKETûTOûRElNANCEûITSûõMûOFûû
RATEûPRODUCTSûMAKINGûTHEMû The issuer carries corporate ratings of B3 September 2023s. To fund the call, the issuer
more attractive to borrowers, said leveraged STABLE "ûSTABLE ûANDûTHEûNEWûlXED
RATEû is using the proceeds from the €375m 5.5-
lNANCEûBANKERS notes are expected to be awarded Caa2/ year non-call two senior secured offering,
“It should be the year of the leveraged CCC+ ratings. priced last Wednesday, and the €75m it
loan,” said one. Price talk of 5.25%–5.5% was announced raised through a recent capital increase.
“We’re going into a rising rate on Tuesday and the deal later priced at Unsurprisingly for an issuer in the travel
environment, which means you don’t want 5.25%. Investors and analysts offered a wide and leisure sector, investor attention was on
TOûBEûBUYINGûlXED
RATEûNOTESû!NDû#,/Sû variety of levels at which they would be THEûEFFECTSûTHEû#OVID
ûPANDEMIC
which are the engine of the demand side for WILLINGûTOûPLAYûTHEûTRADEûWITHûlGURESû “The main focus has been the sector and
loans, are at record levels of formation. ranging from low 5s to 6%. how the business has performed,” said one
[United Group] gave you a sense of investor
sentiment. But liquidity is still good. There’s
a bit more of a premium on the [Ceramtec]
bond side but demand still seems to be
there.”
Having initially approached the market
with a €250m senior secured RCF, €1.43bn
senior secured term loan B and €515m
eight-year non-call three senior unsecured
bond, on Tuesday evening the issuer
announced it was shaving €50m off the
bond and adding it to the TLB.
GOOD BUSINESS, CAUTIOUS ON PRICE
While the issuer changed the deal
CONlGURATIONûSLIGHTLYûTOûTAPûINTOûTHEûGREATERû
demand on the loans side, bond investors said
they liked the look of the business and the
Demonstrating how accommodating the
loan market currently is, the €1.48bn seven-
year TLB priced at a margin of E + 375bp.
“The fact that it had a B3 corporate rating
but was able to price through 400bp is
representative of how strong the tone and
demand is for loans,” said a second banker.
“At the end of the day, given how big the
loan demand was, it was a no-brainer.
Sponsors will save 150bp running against
[where the bond priced].”
SETTING THE TONE
As only one of two Triple C rated bonds to
hit the European market this year, bankers
and investors alike were watching it closely
to gauge what appetite there was for that
part of the ratings spectrum.
International Financing Review January 22 2022
LEVERAGEDûlNANCEûBANKERûh#LEARLYûWITHû
Covid, that could not be more in the
limelight than it is right now.”
One investor said that they were unlikely
to participate, purely because of the
industry. However, there seemed to be many
more that were happy to play in the deal.
Whispers were heard in the high 5s, but
Deutsche Bank (B&D), Barclays and Santander
were able to trim this back to price the deal
at a yield of 5.5%, representing virtually no
premium.
The tight pricing may well have weighed
on performance, with Tradeweb showing it
bid at a yield of 5.66% last Friday.
“I do like eDreams as a company, and if
you take a very long-term view, you are
probably getting paid for that risk,” said a
35
second fund manager. “But if I look versus
where their bonds have been trading the
whole time, it’s not really a premium.”
Prior to the announcement of the new
bond, eDreams’ September 2023s were
yielding over 4.2%, according to Tradeweb.
The analysts at CreditSights and Spread
Research both said 5.5% was a fair price for
the new bond.
The notes from VOYAGE CARE and ZENITH
FINCOûWEREûTHEûlRSTûTWOûSTERLINGûSUBû
investment-grade deals of 2022 and bankers
were eagerly awaiting the results to gauge
the tone in the market, given the pace of
rates rises in the UK has outstripped that of
Europe.
“It has been a pretty volatile week and
sterling has been more heavily impacted
subscribed and is trading a bit soft,” said an
INVESTORûWHOûSAWûTHEûBONDSûBIDûATûûONû
Friday morning. “I don’t know why but it
has not gone well.”
Although investors had raised some
questions about the credit and industry
during marketing, the tone appeared
generally positive.
“It is a decent story on the face of it,” said
[than the euro market] given that we have THEûINVESTORûh4HEYûHAVEûBENElTEDûHUGELYû
“IT IS A GOOD STORY” seen a faster rise in rates,” said one though, from spiking residual car values in
The business’s recent performance LEVERAGEDûlNANCEûBANKER the past couple of years so investors need to
supported demand for the new issue. Voyage Care, a UK care home operator be comfortable about what is a sustainable
Expectations are that leisure not business serving adults with learning disabilities, was level of performance.”
travel will be the quickest to recover from ABLEûTOûPRICEûAûaMûlVE
YEARûNON
CALLûTWOû Others were considering the longer-term
the pandemic, an expectation that clearly senior secured bond issue at 5.875%, in line prospects of the industry.
BENElTSûE$REAMSûGIVENûITSûFOCUS with price talk, through global coordinator “For me, the bigger question is going to be
“I like the credit; it is a good story,” said a
third buysider. “The business throws off
cash, even when earnings plummet. There
is this equity piece coming in, they have
survived one of the worst events that could
ever happen to the travel industry.”
and physical bookrunner JP Morgan.
The purpose of the B2/B+ rated note
OFFERINGûWASûTOûRElNANCEûITSûaMûOFû
5.875% May 2023 senior secured bonds with
a call in February, as well as £35m of second
lien notes.
WHATûHAPPENSûTOûmEETûLEASINGûASûAûCONCEPTvû
said a second fund manager.
“Is this a business that gets affected by
working from home trends? Will it still be
the case that large numbers of companies do
corporate car schemes? Typically, with the
November bookings were up 33% “Inside 6% is a great result for a Single B. It PEOPLEûTHATûDOûmEETûRENTALûITûISNTûJUSTûAû
COMPAREDûWITHûTHEûSAMEûMONTHûINûû ISûTHEûlRSTûONEûSINCEû/CTOBERûSECONDûSINCEû BENElTûTHEYûHAVEûPEOPLEûTHATûNEEDûTOûGETûINû
while December bookings, which would July,” said the banker. “From a company a car to go and see clients. Demand for that
have been impacted by the emergence of perspective, they are keeping the same could change over time.”
THEû/MICRONûVARIANTûWEREûINûLINEûWITHûû COUPONûASûTHEûlRSTûBONDûANDûREMOVINGûTHEû The corporate segment of Zenith’s
levels. second lien instrument, so saving £1.4m business, which includes company car and
Investors were also interested in a new
subscription model the company is rolling
out, said the banker. In theory, this will
produce a less volatile revenue stream. The
subscriber base is now at 2.2 million,
according to CreditSights.
There was also clear technical support for
the issue given the deal size was €375m for
THEûRElNANCINGûOFûõMûOFûBONDS
To price a deal with limited premium in
the current rates environment was seen as
an impressive feat, given some issuers (see
Webuild) have been seen issuing with
considerable concessions.
Some market participants attributed
annually in interest costs.”
Some investors were initially cautious.
Investing in healthcare names such as
Voyage can come with reputational risks
linked to the mistreatment of patients or
staff, said one fund manager.
“They haven’t had issues historically,”
said the banker. “There were investors who
admitted that they had done searches and
SAIDûTHATûTHEYûEXPECTEDûTOûlNDûLOADSûOFûCASESû
of employees or patients being mistreated
and they were pleasantly surprised that
there weren’t many at all.”
One measure of quality in the sector is a
company’s Care Quality Commission score.
LIGHTûCOMMERCIALûVEHICLEûmEETSûACCOUNTEDû
for 67% of its total income in the 12 months
to September 2021.
HSBC (B&D) and Barclays acted as joint
global coordinators and physical
bookrunners. Leads did not respond to a
request for comment regarding the
performance of the bonds.
COVIS PHARMA PREPS BONDS FOR
DRUG REFI
COVIS PHARMA is lining up its inaugural issue
in the high-yield bond market, sounding out
interest in US$850m-equivalent of notes
eDreams’ ability to do this to its ratings and
the absolute level of yield.
The issuer carries corporate ratings of B3/
CCC+/B and the new instrument is rated
Caa1/CCC+/B–. Webuild comes with BB–/BB
RATINGSûANDûWASûPRICEDûATûAûYIELDûOFû
YEARûNON
CALLûTWOûSENIORû
“The general view is bullish on credit,
negative on rates,” said the third investor. “So,
people are happy to hold Triple Cs because
they might not be as risky as they usually are
and they are insulated from interest rates.”
MIXED START TO STERLING HIGH-YIELD
It was a mixed start to the sterling high-yield
primary sector last week, as a pair of Single
B credits tapped the market. Although
neither could budge pricing from starting
YEARûLOOK
BACKûPERIODûFORûRElNANCINGû respiratory drugs from AstraZeneca.
levels, one was able to achieve a yield below
6%, marking something of an achievement
for that rating bracket.
36
)Nû%NGLANDûûOFû6OYAGESûSITESûAREûRATEDû
Good or Outstanding. The deal was issued at
par and bid at 100.124 on Friday.
ZENITH STALLS
First-time issuer Zenith sold a green bond
offering last week as part of its effort to
TRANSITIONûITSûmEETûTOûELECTRICûVEHICLESû4HEû
UK vehicle-hire company landed the par-
priced £475m 5.5-year non-call two senior
secured green issue at a yield of 6.5%, in line
with IPTs. The bond offering carries ratings
of B1/B+.
4HEûPROCEEDSûWILLûBEûUSEDûTOûRElNANCEû
£434m of term facilities, while an amount
equal to the proceeds will be used to acquire
electric vehicles. The issuer has established
AûTHREE
eligible assets.
“I think the price looks fair enough but
this deal appears not to have been well
International Financing Review January 22 2022
THATûITûWILLûUSEûTOûRElNANCEûDEBTSûINCLUDINGû
those incurred when acquiring products
from AstraZeneca.
The issuer is looking to tap dollar and
euro markets, having last week announced
53MûOFûlVE
secureds and US$375m-equivalent of euro
senior secured notes with the same maturity
and call structure.
The B2/B rated issuer announced IPTs of
7.5% and 7% areas on Thursday and pricing is
expected on January 28. Barclays is leading
the transaction.
Alongside a US$350m senior secured term
loan, the company is using the bond
PROCEEDSûTOûRElNANCEû53MûOFûTERMû
loans and the US$270m acquisition of two
The group’s net leverage, pro forma the
bond issue, stood at 4.5x at the end of
September 2021, based on normalised

Ebitda of US$262m, according to Spread
Research.
Operating in 40 countries but with 62% of
total sales coming from the US, the company
focuses on niche products relating to
respiratory illness and hospital and critical
care.
ADVANZ SQUEEZES OUT EXTRA
#OVISûISûNOTûTHEûlRSTûNAMEûFROMûTHEûPHARMAû
sector to engage with European high-yield
investors this year. Last week, ADVANZ PHARMA
priced a €175m tap of its 5% April 2028s at
û4HEûISSUERûWASûINûTHEûMARKETûTOû
lNANCEûTHEûACQUISITIONûOFûAûNUMBERûOFû
established drugs, including constipation
medication and antibiotics.
“At such a price, we believe that investors
are well remunerated for Advanz Pharma’s
hope Silverstone’s tight pricing could
perhaps tempt others back this year.
SILVERSTONE 2022-1 sold a US$250m two-year
dollar tranche at SOFR plus 38bp. The more
substantial sterling tranche, sized at £500m,
CAMEûATû3ONIAûPLUSûBP
“We wanted to take advantage of positive
market conditions and historically tight
levels in sterling,” said Krishan Hirani, head
of secured funding at Nationwide.
“The rationale for the dollars is more
strategic: Nationwide has put a lot of time
and effort into building a presence with US
onshore investors, and we wanted to keep
those lines open because that market is one
we will absolutely be accessing going
forward.”
What had been Silverstone’s last
outstanding dollar bond is due to repay
STRUCTURED FINANCE
“We are taking the most prudent
approach possible to build up a smooth
REPAYMENTûPROlLEûRATHERûTHANûWAITûUNTILû
much nearer the time,” Hirani said. “This
TRANSACTIONûISûTHEûlRSTûSTEPûnûTHEREûWILLûNOWû
be a steady increase in wholesale funding
for Nationwide, and Silverstone is part of
that.”
INVESTORS SLOWER TO TAKE DOWN
LONG TWIN BRIDGES PAPER
PARATUS sold the £550m UK buy-to-let RMBS
TWIN BRIDGES 2022-1 on Thursday, opening a
busy year for the specialist lender. Two
securitisations of seasoned mortgages as
well as three deals from the new origination
Twin Bridges shelf are all callable this year,
and it has a busy lending pipeline under
SPECIlCûRISKSûINCLUDINGûTHEûTHREEûONGOINGû
anti-competitive litigations in the UK as well
as the recent negative track record with the
debt restructuring in 2018,” wrote the
analysts at Spread Research.
“Indeed, the yield offered of 5% implies a
good premium of approximately 150bp–
200bp against other B2/B healthcare names
such as Cheplapharm bonds.”
Demand was strong enough for the issuer
to take extra size with the tap after initially
targeting €150m.
Despite this, one investor said that he was
wary of the name, seeing too much
acquisition and limited organic growth
shortly.
“Clearly we are paying more for dollars
than for sterling, but that differential itself
is as small as it has been for a number of
years,” Hirani added.
Bankers put the cross-currency swap at
around 12bp, implying the dollars came
inside sterling, but that ignores the big
difference in maturities and also swap costs,
including the cost of bringing dollars back
to sterling for the issuer.
The extra cost of the dollars explains why
Nationwide kept that tranche small, despite
subscription levels hitting around eight
times after initial price thoughts of 45bp to
way.
"UTûTHEûlRMûWILLûSOONûBEûLESSûRELIANTûONû
securitisation: a sale by current owner
Fortress to Apollo Global Management was
agreed in June last year and is expected to be
lNALISEDûINûTHEûCOMINGûWEEKS
“We will still be a substantial RMBS issuer
but some of our funding will be forward
mOWûFROMû!POLLOûnûITûWILLûPROBABLYûBEûHALFû
and half,” said Kris Gozra, director of
treasury at Paratus.
That is likely to mean a second Twin
Bridges RMBS later this year. It is not clear
WHATûFORMûTHEûEXPECTEDûRElNANCINGSûOFûTHEû
callable deals will take.
DESPITEûGOODûCASHmOWûGENERATIONûASûFACTORSû 50bp. That level was tightened to 40bp area
weighing on the credit. guidance before ending heavily covered at
Morgan Stanley led the deal. The bonds are ûTIMESûATûTHEûBPûlNALûSPREAD
rated B+/B3/B–. Prioritising the US domestic buyers may
have riled some UK buysiders, although they
had received an early steer that the dollar
tranche would be small and US focused.
“The whole point of the [more expensive]
STRUCTURED FINANCE dollar tranche was to feed the onshore US
guys,” said one banker involved with the
deal. “You want to avoid domestic investors
EMEA MBS being able effectively to arb – there’s no
Last week’s new issue, taken together
with Paratus’ two hefty Twin Bridges trades
in February and September last year, have
taken RMBS issuance to around £1.5bn
within 11 months. The latest deal was
topped by a £466m 4.5-year Triple A tranche,
WITHûAûCALLûDATEûPUSHEDûOUTûBEYONDûlVEûYEARSû
to June 2027.
Initial price thoughts on the tranche were
Sonia plus high 70s. Other, shorter-dated
seniors recently in the market have started
with similar IPTs but tightened a long way
SILVERSTONE HITS DOLLAR TARGET,
BREAKS STERLING TIGHTS
NATIONWIDE reopened its Silverstone Master
Trust last week to sell sterling paper at the
TIGHTESTûLEVELûFORû5+û2-"3ûSINCEûTHEûlNANCIALû
crisis. It also sold a small but heavily
oversubscribed dollar tranche that was the
lRSTûLINKEDûTOû3/&2ûFROMûAû5+û2-"3ûISSUER
Silverstone had not issued for two years:
of the UK’s banks and building societies all
but Coventry stayed away from mainstream
RMBS once the Bank of England opened its
point selling dollars to the same guys who
could have bought sterling, you’d just be
subsidising them.”
The heftier £500m sterling tranche never
hit such extreme levels of investor
enthusiasm as the dollars, although it
quickly went 2.1 times covered at low to mid
30s IPTs. Oversubscription remained
unchanged at 30bp area guidance and then
through the psychological 30bp barrier to
THEûlNALûBPûPRINT
One banker away from the deal suggested
that would equal around 17bp over Libor –
unthinkably tight for throughout much of
BEFOREûPRICINGû(OWEVERûTHEûlNALûPRINTûFORû
the 4.5-year Twin Bridges seniors came in to
just 77bp , with the tranche a modest 1.2
times covered.
“I don’t think it went badly – the market
is busy and it’s a bigger deal,” said one
investor. “That said, I do think you’re getting
paid for the longer maturity on the seniors.”
The February RMBS sold its seniors at
Sonia plus 85bp, while the September deal
found a market sweet spot that allowed a
Sonia plus 66bp print.
h)TûSHOWSûTHERESûNOTûANûINlNITEûAPPETITEû
FORûlVE
YEARûPAPERvû0ARATUSSû'OZRAûSAIDû
TFSME facility in response to the pandemic
in 2020.
But several market participants now say
another UK shelf could be readying a cross-
currency return in the coming weeks, and
THEûPOSTûlNANCIALûCRISISûERA
Nationwide has around £21bn of
drawings under the TFSME programme,
which offered four-year funding and closed
to new drawings in October.
International Financing Review January 22 2022
“Investors clearly favour three years, and at
that maturity I’m sure we could have
knocked at least 12bp off the Triple As.”
Paratus prefers the longer maturity,
which it used on last year’s trades too,
37
NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 21/1/2022
Issuer Amount (m) WAL DM Bookrunner(s) Rating Asset type
ACAR 2022–1 US$253.000 0.81 EDSF+ 35bp Deutsche Bank/JP Morgan/Wells Fargo NR/AAA/NR ABS
ACAR 2022–1 US$71.870 1.99 EDSF+ 45bp Deutsche Bank/JP Morgan/Wells Fargo NR/AA/NR ABS
ACAR 2022–1 US$74.870 2.61 IS+75bp Deutsche Bank/JP Morgan/Wells Fargo NR/A/NR ABS
ACAR 2022–1 US$68.420 3.27 IS+95bp Deutsche Bank/JP Morgan/Wells Fargo NR/BBB+/NR ABS
ACAR 2022–1 US$53,760 3.63 IS+210bp Deutsche Bank/JP Morgan/Wells Fargo NR/BB+/NR ABS
ACAR 2022–1 US$22.140 3.63 IS+335bp Deutsche Bank/JP Morgan/Wells Fargo NR/BB–/NR ABS
AXIS 2022–1 US$61.114 0.25 ILIB+8bp BofA/Truist P–1/NR/NR ABS
AXIS 2022–1 US$327.963 1.83 EDSF+50bp BofA/Truist Aaa/NR/NR ABS
AXIS 2022–1 US$23.683 3.60 iSWP+65bp BofA/Truist Aa3/NR/NR ABS
AXIS 2022–1 US$16.681 3.73 iSWP+80bp BofA/Truist A2/NR/NR ABS
AXIS 2022–1 US$24.919 3.73 iSWP+135bp BofA/Truist Baa2/NR/NR ABS
AXIS 2022–1 US$15.548 3.73 iSWP+350bp BofA/Truist Ba3/NR/NR ABS
AXIS 2022–1 US$10.452 3.37 ISWP BofA/Truist B3/NR/NR ABS
CARMX 2022–1 US$287 0.26 IntL+5bp JP Morgan/BofA/MUFG/TD Secs P–1/A–1+/NR ABS
CARMX 2022–1 US$540.7 1.09 EDSF+11bp JP Morgan/BofA/MUFG/TD Secs Aaa/AAA/NR ABS
CARMX 2022–1 US$540.7 2.58 IntS+11bp JP Morgan/BofA/MUFG/TD Secs Aaa/AAA/NR ABS
CARMX 2022–1 US$146.58 3.86 IntS+11bp JP Morgan/BofA/MUFG/TD Secs Aaa/AAA/NR ABS
CARMX 2022–1 US$17.65 3.97 IntS+35bp JP Morgan/BofA/MUFG/TD Secs Aa2/AA+/NR ABS
CARMX 2022–1 US$41.7 3.97 IntS+60bp JP Morgan/BofA/MUFG/TD Secs A2/A/NR ABS
CARMX 2022–1 US$25.67 3.97 IntS+87bp JP Morgan/BofA/MUFG/TD Secs Baa2/BBB/NR ABS
CLIF 2022–1 US$558.500 5.91 IS+100bp Wells Fargo/BofA/PNC NR/A/NR ABS
CLIF 2022–1 US$41.500 5.91 IS+140bp Wells Fargo/BofA/PNC NR/BBB/NR ABS
ELSTREE FUNDING NO.2 PLC £232.926 2.26 Sonia+72bp NatWest/JP Morgan/SMBC Nikko Aaa/AAA/NR RMBS
ELSTREE FUNDING NO.2 PLC £18.52 3.15 Sonia+100bp NatWest/JP Morgan/SMBC Nikko Aa2/AA/NR RMBS
ELSTREE FUNDING NO.2 PLC £10.685 3.15 Sonia+130bp NatWest/JP Morgan/SMBC Nikko A2/A/NR RMBS
ELSTREE FUNDING NO.2 PLC £8.548 3.15 Sonia+170bp NatWest/JP Morgan/SMBC Nikko Baa3/BBB/NR RMBS
FINANCE IRELAND RMBS NO. 4 DAC €269.14 – 3mE+40bp BofA/BNPP/Citigroup/Standard Chartered NR/AAA/NR RMBS
FINANCE IRELAND RMBS NO. 4 DAC €20.14 – 3mE+85bp BofA/BNPP/Citigroup/Standard Chartered NR/AA/NR RMBS
FINANCE IRELAND RMBS NO. 4 DAC €10.46 – 3mE+110bp BofA/BNPP/Citigroup/Standard Chartered NR/A/NR RMBS
FINANCE IRELAND RMBS NO. 4 DAC €9.66 – 3mE+165bp BofA/BNPP/Citigroup/Standard Chartered NR/BBB/NR RMBS
FINANCE IRELAND RMBS NO. 4 DAC €5.63 – 3mE+290bp BofA/BNPP/Citigroup/Standard Chartered NR/BB+/NR RMBS
FINANCE IRELAND RMBS NO. 4 DAC €3.22 – 3mE+390bp BofA/BNPP/Citigroup/Standard Chartered NR/BB/NR RMBS
FINANCE IRELAND RMBS NO. 4 DAC €7.22 – 3mE+350bp BofA/BNPP/Citigroup/Standard Chartered NR/B–/NR RMBS
FORDO 2022–A US$182.190 0.22 Intl+1bp Citigroup/Credit Agricole/SMBC/MUFG NR/A–1+/F1+ ABS
FORDO 2022–A US$361.420 0.92 EDSF+5bp Citigroup/Credit Agricole/SMBC/MUFG NR/AAA/AAA ABS
FORDO 2022–A US$361.420 2.20 iSwps+4bp Citigroup/Credit Agricole/SMBC/MUFG NR/AAA/AAA ABS
FORDO 2022–A US$95.040 3.39 iSwps+4bp Citigroup/Credit Agricole/SMBC/MUFG NR/AAA/AAA ABS
FORDO 2022–A US$31.560 3.56 iSwps+37bp Citigroup/Credit Agricole/SMBC/MUFG NR/AA+/AA+ ABS
FORDO 2022–A US$21.020 3.56 iSwps+60bp Citigroup/Credit Agricole/SMBC/MUFG NR/A+/AA ABS
Freddie Mac STACR REMIC Trust 2022–DNA1 US$478.00 1.95 SOFR+100bp Nomura/Morgan Stanley NR/A–/NR RMBS
Freddie Mac STACR REMIC Trust 2022–DNA1 US$318.00 4.66 SOFR+185bp Nomura/Morgan Stanley NR/BBB/NR RMBS
Freddie Mac STACR REMIC Trust 2022–DNA1 US$239.00 5.01 SOFR+250bp Nomura/Morgan Stanley NR/BB/NR RMBS
Freddie Mac STACR REMIC Trust 2022–DNA1 US$159.00 5.01 SOFR+340bp Nomura/Morgan Stanley NR/B+/NR RMBS
Freddie Mac STACR REMIC Trust 2022–DNA1 US$159.00 5.01 SOFR+710bp Nomura/Morgan Stanley NR/NR/NR RMBS
FREED ABS Tr 2022–1FP US$113.020 0.57 EDSF+45bp Credit Suisse/Truist/Jefferies NR/NR/NR ABS
FREED ABS Tr 2022–1FP US$57.540 1.77 EDSF+80bp Credit Suisse/Truist/Jefferies NR/NR/NR ABS
FREED ABS Tr 2022–1FP US$26.030 2.65 EDSF+115bp Credit Suisse/Truist/Jefferies NR/NR/NR ABS
FREED ABS Tr 2022–1FP US$36.300 3.45 EDSF+185bp Credit Suisse/Truist/Jefferies NR/NR/NR ABS
HPEFS 2022–1 US$277.000 0.37 IntL+8bp Wells Fargo/BNPP/Mizuho/MUFG P–1/A–1+/NR ABS

because it aligns better with the tenor of their IPTs of low 100s, low to mid origination in recent weeks meant the pre-
ITSûMORTGAGESû&ORûTHEûNEWû2-"3ûûOFû 100s and high 100s. Final pricing on fund ended up smaller than had been
THEûLOANSûAREûlXEDûRATEûANDûûAREûlXEDû
FORûlVEûYEARS
Joint leads’ books on the mezzanine
tranches had built more quickly
THANûTHEûSENIORSûTHEûaMû
Aa1/AA Class B, £23.275m Aa3/A–
#LASSû#ûANDûaMû!"""nû#LASSû$û
the three tranches was 100bp, 130bp
and 170bp.
NAB and Natixis were joint arrangers, and
were joint leads with Macquarie and
Standard Chartered.
The new deal came with a £108m
pre-funding element to take it to its
expected when the deal was being put
together.
“Last year we originated £1.4bn in
total, our biggest year by a country
mile, and given the pipeline we have
INûPLACEûWEREûPRETTYûCONlDENTûOFû
matching that number this year,”
each were about 4.5 times covered at lNALûaMûALTHOUGHûTHEûAMOUNTûOFûEXTRAû Gozra said.

38 International Financing Review January 22 2022

 STRUCTURED FINANCE

NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 21/1/2022 (CONTINUED)

Issuer Amount (m) WAL DM Bookrunner(s) Rating Asset type
HPEFS 2022–1 US$300.000 1.20 EDSF+16bp Wells Fargo/BNPP/Mizuho/MUFG Aaa/AAA/NR ABS
HPEFS 2022–1 US$225.825 2.05 IntS+16bp Wells Fargo/BNPP/Mizuho/MUFG Aaa/AAA/NR ABS
HPEFS 2022–1 US$47.800 2.52 IntS+45bp Wells Fargo/BNPP/Mizuho/MUFG Aaa/AA/NR ABS
HPEFS 2022–1 US$78.761 2.78 IntS+55bp Wells Fargo/BNPP/Mizuho/MUFG Aa1/A/NR ABS
HPEFS 2022–1 US$70.614 3.27 IntS+90bp Wells Fargo/BNPP/Mizuho/MUFG Aa3/BBB/NR ABS
LDPT 2022–A US$235.790 0.81 EDSF+105bp Credit Suisse/Guggenheim NR/NR/NR ABS
LDPT 2022–A US$41.680 1.85 EDSF+125bp Credit Suisse/Guggenheim NR/NR/NR ABS
LDPT 2022–A US$39.580 2.29 IntS+155bp Credit Suisse/Guggenheim NR/NR/NR ABS
LDPT 2022–A US$66.110 3.00 IntS+310bp Credit Suisse/Guggenheim NR/NR/NR ABS
LDPT 2022–A US$16.840 3.30 IntS+560bp Credit Suisse/Guggenheim NR/NR/NR ABS
OBX 2022–NQM1 US$445.078 1.95 EDSF+100bp Nomura/Barclays NR/AAA/NR RMBS
OBX 2022–NQM1 US$23.102 4.01 iSWAPS+130bp Nomura/Barclays NR/AA/NR RMBS
OBX 2022–NQM1 US$31.175 4.01 iSWAPS+160bp Nomura/Barclays NR/A/NR RMBS
OBX 2022–NQM1 US$20.041 4.01 iSWAPS+180bp Nomura/Barclays NR/BBB/NR RMBS
RCO 2022–1 US$198.400 1.82 3.000 Goldman Sachs/Credit Suisse NR/NR/NR RMBS
RCO 2022–1 US$31.600 3.01 5.250 Goldman Sachs/Credit Suisse NR/NR/NR RMBS
SEMT 2022–1 US$152.1 4.97 2–03bk UMBS 2.5% Morgan Stanley NR/NR/AAA RMBS
SEMT 2022–1 US$324 2.79 2–22bk DW 2.5% Morgan Stanley NR/NR/AAA RMBS
SEMT 2022–1 US$108 11.52 IS+ 120bp Morgan Stanley NR/NR/AAA RMBS
SEMT 2022–1 US$75.604 4.97 3–06bk UMBS 2.5% Morgan Stanley NR/NR/AAA RMBS
Servpro Master Issuer, Series 2022–1 US$260.00 6.8 IntS+135bp Barclays NR/BBB–/NR ABS
SILVERSTONE 2022–1 STS UK RMBS US$250 1.97 SOFR+38bp Barclays/BNPP/BofA/Citigroup Aaa/NR/AAA RMBS
SILVERSTONE 2022–1 STS UK RMBS £500 4.93 Sonia+29bp Barclays/BNPP/BofA/Citigroup Aaa/NR/AAA RMBS
Stratton BTL Mortgage Funding 2022–1 £388.47 2.59 Sonia+73bp BofA Aaa/AAA/NR RMBS
Stratton BTL Mortgage Funding 2022–1 £29.02 4.73 Sonia+100bp BofA Aa1/AA/NR RMBS
Stratton BTL Mortgage Funding 2022–1 £17.86 4.73 Sonia+125bp BofA Aa2/A–/NR RMBS
Stratton BTL Mortgage Funding 2022–1 £11.16 4.73 Sonia+165bp BofA A3/BBB–/NR RMBS
Stratton BTL Mortgage Funding 2022–1 £13.39 – Sonia+273bp BofA Ba3/B/NR RMBS
STWD 2022–FL3 US$525.000 2.47 SOFR+135bp Wells Fargo/Morgan Stanley/JP Morgan Aaa/NR/NR CMBS
STWD 2022–FL3 US$141.250 2.88 SOFR+180bp Wells Fargo/Morgan Stanley/JP Morgan NR/NR/NR CMBS
STWD 2022–FL3 US$50.000 3.38 SOFR+195bp Wells Fargo/Morgan Stanley/JP Morgan NR/NR/NR CMBS
STWD 2022–FL3 US$60.000 3.70 SOFR+220bp Wells Fargo/Morgan Stanley/JP Morgan NR/NR/NR CMBS
STWD 2022–FL3 US$53.750 4.04 SOFR+275bp Wells Fargo/Morgan Stanley/JP Morgan NR/NR/NR CMBS
STWD 2022–FL3 US$12.500 4.12 SOFR+325bp Wells Fargo/Morgan Stanley/JP Morgan NR/NR/NR CMBS
WFCM 2022–JS2 US$37.480 9.88 P+110bp Wells Fargo NR/AAA/NR CMBS
WFCM 2022–JS2 US$8.920 9.88 P+135bp Wells Fargo NR/AA–/NR CMBS
WFCM 2022–JS2 US$14.710 9.88 P+155bp Wells Fargo NR/A–/NR CMBS
WFCM 2022–JS2 US$24.900 9.88 P+180bp Wells Fargo NR/BBB–/NR CMBS
WFCM 2022–JS2 US$28.960 9.88 P+260bp Wells Fargo NR/BB–/NR CMBS
WFCM 2022–JS2 US$30.410 9.88 P+345bp Wells Fargo NR/B–/NR CMBS
WFCM 2022–JS2 US$58.220 9.88 P+450bp Wells Fargo NR/NR/NR CMBS
VZMT 2022–1 US$798.90 1.49 J + (TSY) +4bp BofA/Barclays/Mizuho/Wells Fargo Aaa/AAA/NR ABS
VZMT 2022–1 US$64.10 1.49 J + (TSY) 27bp BofA/Barclays/Mizuho/Wells Fargo Aa2/AA/NR ABS
VZMT 2022–1 US$37.00 1.49 J + (TSY) 40bp BofA/Barclays/Mizuho/Wells Fargo A2/A+/NR ABS
VZMT 2022–2 US$710.10 2.99 J + (TSY) 7bp BofA/Barclays/Mizuho/Wells Fargo Aaa/AAA/NR ABS
VZMT 2022–2 US$57.00 2.99 J + (TSY) 37bp BofA/Barclays/Mizuho/Wells Fargo Aa2/AA/NR ABS
VZMT 2022–2 US$32.90 2.99 J + (TSY) 55bp BofA/Barclays/Mizuho/Wells Fargo A2/A+/NR ABS

Gozra highlighted the strong
track record of the Twin Bridges
mortgages.
“We have originated 13,800 mortgages,
12,200 are live, and our total losses under
the Twin Bridges programme is just under
£11,000, less than a pound a mortgage,” he
said.
“We make it clear to borrowers that we
arrangement, and there is no obligation
for forbearance other than the measures
brought in for Covid. If you get into arrears
we’re onto it quickly.”
Paratus is the pre-crisis GMAC-RFC,
which was bought by Fortress in 2010.
)TûHASûlVEûEXISTINGûSECURITISATIONSûUPû
for call this year: Ciel 1, Stanlington 1,
ANDû4WINû"RIDGESûISSUESû
MARGIN CUT BY HALF FOR
ELSTREE SENIOR PAPER
Enra took advantage of buoyant demand
last week to price its second UK RMBS at
almost half the margin of its debut in 2020.
The buy-to-let and second charge RMBS
ELSTREE FUNDING NO.2 SOLDûITSûaMû4RIPLEû
û
û A tranche at Sonia plus 72bp, far inside the
treat buy-to-let as a commercial ANDû
 140bp it achieved for its debut trade in

International Financing Review January 22 2022 39

October 2020. Only £50m of senior bonds
from that deal ended up publicly
marketed: the rest of the Triple As ended
up as protected orders, and the mezzanine
notes were pre-placed.
The new deal was publicly sold and,
three-month Euribor discount margin,
after starting with initial price thoughts of
high 40s. Its previous deal in June sold
seniors at 43bp, and also found strong
demand with that tranche ending four
times covered.
Another UK RMBS could soon be on the
way from PARATUS. While its latest Twin
Bridges deal, backed by freshly originated
BTL loans, was priced last week, a new
STANLINGTON NO.2 vehicle has now been
registered with Companies House.
although it was in competition with plenty FINANCE IRELAND RMBS NO 4 is just the second 4HEûlRSTû3TANLINGTONûDEALû3TANLINGTONû
of other UK paper for investor attention,
CONFORMINGû2-"3û
its senior tranche was structured with the
shortest average life of deals in the market
YEARûCALLûDATE
last week, at just 2.3 years.
Joint leads NatWest (sole arranger), JP
Morgan and SMBC Nikko started with the
80bp area initial price thoughts, before
TIGHTENINGûlRSTûTOûBPûTOûBPûANDûTHENû
to 72bp to 74bp.
The mezzanine tranches were well
received too. The Aa2/AA, A2/A and Baa3/
"""û#LASSESû"ûTOû#ûEACHûWENTûAROUNDûlVEû
times covered at IPTs of low to mid 100s,
mid 100s and high 100s to 200bp area.
Final levels were 100bp, 130bp and 170bp.
The notes are backed by a portfolio of
euro new issue of the year, excluding CLOs.
The previous week Citigroup sold a very
different deal, Dutch buy-to-let mortgages
from non-bank lenders, at 72bp over
Euribor for the Triple As.
Below the senior layer, Finance Ireland
offered six mezzanine tranches. Classes B
to D were heavily oversubscribed and
came well inside IPTs – notably the Double
A tranche, which was six times covered at
low 100s before pricing at 85bp.
4HEûDEALûSECURITISESûAûõMûPOOLûOFû
Irish residential mortgages. There are
1,343 loans with an average balance of
€252,648. The WA original LTV is 73.55%,
THEû7!ûCURRENTû,46ûISûûANDûSEASONINGû
.OûWASûAûaMûNON
from Paratus sold in February 2017. It is
APPROACHINGûITSûlVE
The 2017 deal securitised mortgages
originated by GMAC-RFC and Victoria
Mortgage Funding. It was co-arranged by
Natixis and NatWest Markets.
The new year began with a range of UK
2-"3ûALREADYûlLEDûWITHû#OMPANIESû(OUSEûINû
late 2021. The majority of those have since
been announced and are either priced or in
the market. However, deals spied in
Companies House but yet to emerge publicly
include BARLEY HILL NO.2, FINSBURY SQUARE 2022-1
and GENESIS MORTGAGE FUNDING 2022-1.
The new Polaris RMBS announced is
ûLOANSûMADEûUPûOFûaMûBUY
TO
LETû ISûûMONTHS arranged by Citi and NAB, which are joint
ANDûaMûPRIMEûSECONDûLIENû4HEûAVERAGEû 4HEû7!ûINTERESTûRATEûISûûlRST
TIMEû leads with Standard Chartered. A three-day
current balance is £117,632 the weighted- buyers make up 47% of the pool and self- virtual roadshow ended on Friday.
average current LTV is 68%, seasoning is 4.8 employed borrowers stand at 13.4%. The provisional £450m pool comprises
months and the weighted-average interest Bank of America was sole arranger. Joint 2,471 loans with an average loan size of
rate is 4.27%. leads were BNP Paribas, Bank of America, £182,117. The weighted average current LTV
Enra is majority owned by private equity Citigroup and Standard Chartered. is 71.7%, seasoning is 3.5 months and the
lRMû%XPONENTûANDûINTENDSûTOûBEûAûMOREû
programmatic issuer off Elstree,
potentially bringing more than one new
RMBS each year. The mortgages were
originated through its West One Secured
Loans business, which also originates
bridging loans – historically the largest
part of its lending business – and
development loans, although there are no
plans to securitise those assets.
FINANCE IRELAND RETURNS
TO PEMBROKE CMBS
Ireland’s largest specialist lender, FINANCE
IRELAND, announced its second CMBS last
week. PEMBROKE PROPERTY FINANCE 2 is lead
managed by Barclays and HSBC and is
expected to be priced this week.
4HEûlRSTû0EMBROKEû#-"3ûWASûSOLDûINû
AVERAGEûINTERESTûRATEûISû
Mortgages with CCJs make up 25% of the
total pool, with those greater than two years
at 2.8%. Loans in three-month or longer
arrears are 0.04%.
EMEA ABS
OODLE COULD BE BACK WITH
*UNEûûANDûITSûlRSTûOPTIONALû NEW DOWSON AUTOS
STRATTON SECURITISES LANDBAY redemption date is coming up in March.
BTL MORTGAGES 4OWARDSûTHEûENDûOFûLASTûYEARûTHEûlRMûSAIDûITû !û#OMPANIESû(OUSEûlLINGûFORûDOWSON 2022-1
STRATTON BTL MORTGAGE FUNDING 2022-1, a buy-
to-let RMBS from DAVIDSON KEMPNER vehicle
Ertow IX, was priced via sole lead Bank of
America on Friday afternoon. The deal
WASûEXPLORINGûRElNANCINGûOPTIONSûANDû
21% of the new deal’s portfolio will
COMPRISEûLOANSûSECURITISEDûINûTHEûlRSTûDEAL
Pembroke is far more granular than
most European CMBS: the €316m portfolio
suggests OODLE FI NANCIAL SERVICES is lining up
a return to its UK auto ABS platform.
Oodle has issued four deals off its Dowson
programme, all arranged by Citigroup and
offering senior and mezzanine bonds. Its
securitises mortgages originated by for the new trade comprises 151 loans to DEBUTûCAMEûINûûWHILEûITSûRETURNûINû
LANDBAY PARTNERS. 84 borrower groups, giving an average March 2020 was taken down as markets
Pricing on the £388.47m 2.6-year senior loan size of €2.1m. closed on Covid fears. Oodle returned to
notes came at Sonia plus 73bp, in from
high 70s IPTs and then 73bp to 75bp
guidance. The deal also sold three
mezzanine tranches and one Class X note.
IRELAND RMBS ENJOYS EURO
LIMELIGHT
FINANCE IRELAND had the euro MBS market to
itself last week and took advantage to pick
up strong oversubscription for its fourth
Irish RMBS.
4HEûõMûTHREE
YEARûSENIORûPAPERû sized at an initial £450m and there is £50m
came 3.5 times covered at a 40bp over
40
4HEûlRSTûDEALûWASûSMALLERûATûõMûANDûTHEû
average loan size was smaller too at €1.6m.
The new CMBS is offering tranches rated
by S&P and KBRA from Triple A to B/B–.
NEW POLARIS ANNOUNCED, SECOND
STANLINGTON SIGHTED
PEPPER MONEY has announced UK RMBS
POLARIS 2022-1, backed by newly originated
owner-occupied (68%) and buy-to-let (32%)
residential mortgages. The portfolio is
CREDIT SUISSE ASSET MANAGEMENTûRElNANCEDû
potential pre-funding.
International Financing Review January 22 2022
public issuance in 2021 with two publicly
marketed trades.
Oodle is a non-captive lender originating
loans for mainly second-hand vehicles, and
targets near-prime borrowers.
EMEA CLO
THREE MADISON PARK VIII CLO
TRANCHES REFINANCED
three tranches from its MADISON PARK EURO
 STRUCTURED FINANCE

FUNDING VIIICLO on Friday, via Jefferies. Only In Freddie’s new CRT structure, the resulted in record-setting issuance in
three of the tranches previously shown M-1A notes were priced at 100bp over 30- whole business securitisation in 2021,
with price talk appear to have been sold, day compounded average SOFR, which was totalling US$14.6bn.
and they all came wide of that price talk. at the tight end of the guided range of While WBS supply is expected to retreat
The €287.5m Triple As priced at 82bp 100bp to 110bp. The tranche carried a in 2022, several issuers have emerged
over three-month Euribor, following 77bp WEIGHTED
AVERAGEûLIFEûOFûûYEARSûANDû since the start of the year. Fitness club
TOûBPûPRICEûTALKû4HEûõMû!!û#LASSû credit support of 3%. S&P and Kroll were chain PLANET FITNESS is marketing a
C came at 230bp after 205bp to 215bp talk,
ANDûTHEûõMû"AA"""nû#LASSû$ûCAMEûATû
370bp, from 320bp to 340bp talk.
The Aa2/AA Class B and Ba3/BB– Class E
tranches had previously been shown with
price talk of 160bp to 165bp and 650bp to
670bp respectively.
The reinvestment period ends in April
2024 and the non-call period for the three
RElNANCEDûTRANCHESûENDSûINû&EBRUARYû
US MBS
FREDDIE OFFERS MORE CRT
SUBORDINATES
RATEûNOTEûTRANCHESûWHICHûAREû
FREDDIE MAC rolled out a new structure for
its credit risk transfer securitisation last
Tuesday, offering a larger portion of the
subordinate stack to private investors.

))ûTRANCHEûAû
YEARû7!,û4HEREûISû
The US$1.353bn Structured Agency
Credit Risk 2022-DNA1 featured two M1
TRANCHESûFORûTHEûlRSTûTIMEû)NûPRIORû34!#2û
expected to rate it A– and A, respectively.
The M-1B tranche with a WAL of 4.66 years
and credit enhancement of 2% was priced
at 30-day compounded average SOFR plus
185bp, which was inside its guidance of
BPûTOûBPû30ûANDû+ROLLûPLANNEDûTOû
assign it BBB and BBB+ ratings,
respectively. Nomura and Morgan Stanley
were the joint bookrunners.
US ABS
WENDY’S EYES ABS DELIVERY
US burger chain WENDY’S said last Tuesday it
is considering issuing debt in the asset-
backed market to fund investments,
dividends and share buybacks.
The Dublin, Ohio-based company said a
DEALûCOULDûARRIVEûBYûTHEûENDûOFûTHEûlRSTû
quarter.
“If the transaction is completed, the
company expects to use the net proceeds
53MûISSUEûPLANET FITNESS MASTER ISSUER
LLC 2022-1, while property cleaning and
restoration services provider SERVPRO is
readying a US$260m deal, SERVPRO MASTER
ISSUER LLC 2022-1. The two deals are expected
to come to market by this week.
PLANET FITNESS PUMPS OUT ABS
Gym chain operator PLANET FITNESS is
PREPARINGûTOûPRICEûTHISûWEEKûAû53Mû
SECURITISATIONûTOûRElNANCEûSOMEûOLDERûDEBTû
and to fund its purchase of a large
franchisee.
PLANET FITNESS MASTER LLC 2022-1 contains
TWOûlXED
expected to be rated BBB– by S&P and BBB
by Kroll, and each will have a minimum
size of US$250m. The A-2-I note tranche
has a weighted-average life 4.7 years and
THEû!
a US$75m variable funding note tranche
that is not offered. Guggenheim is the sole
structurer and book manager.
DEALSûTHEû53ûMORTGAGEûlNANCEûAGENCYûHADû
offered a single M1 note tranche.
By selling off a bigger portion of the
riskier part of the capital stack Freddie will
hold less capital against possible losses on
the senior AH part of the structure, freeing
UPûCAPITALûFORû&REDDIEûTOûlNANCEûMOREû
mortgages.
“The capital that is retained against this
from the transaction in accordance with
its capital allocation policy, including
investments to support the growth of the
Wendy’s brand or the return of capital to
shareholders through dividends and share
repurchases,” the company said in a
statement.
The announcement lifted Wendy’s share
price last Wednesday as high as US$23.24
The deal is expected to close on February
8, S&P said.
On January 11, the Hampton, New
Hampshire company said it had inked an
agreement to acquire Sunshine Fitness
Growth Holdings, which owns and
operates more than 100 Planet Fitness
facilities in the Southeast United States in
a cash and stock transaction valued at
tranche drives a lot of the economics of the
deal. The higher the credit support for this
[AH] tranche, the lower the required
capital and the better the economics,” JP
Morgan analysts wrote in a research note.

ûNOTEûISSUEûMADEûINû
After a capital rule change from its
regulator the Federal Housing Finance
Agency last year, Freddie raised the share
of the subordinate part of its STACR deals
to 4.5% from 2.25%. Freddie and its larger
sibling Fannie Mae use credit risk transfer
SECURITIESûTOûOFmOADûSOMEûOFûTHEûCREDITûRISKû
on mortgages they guarantee to private
BEFOREûENDINGûATû53ûUPûûONûTHEû
day.
While it evaluates whether to tap the ABS
market, Wendy’s revised the dates for
reporting its fourth-quarter and full year
2021 results to March 1 and its 2022 investor
DAYûTOû*UNEû
The world’s third biggest burger chain
has previously bundled revenues from its
franchisees and repackaged them into ABS.
It offered the US$1.1bn WENDY’S FUNDING LLC
2021-1 last June to robust investor demand,
USINGûTHEûPROCEEDSûTOûRElNANCEûTWOûOLDERû
US$800m. The franchisor said it planned to
lNANCEûTHEûCASHûPORTIONûOFûTHEûDEALûBYû
issuing securitised debt.
As a part of the securitisation, it will
RElNANCEûAû#LASSû!
2018, which had a principal balance of
US$558m at the end of September 2021.
The note issue’s original balance was
US$625m and it carried a 4.666% coupon.
While a majority of Planet Fitness gyms
are operated by franchisees, the
acquisition of Sunshine Fitness will
increase the corporate-owned facilities to
investors. More favourable capital
treatment of CRT by FHFA under the Biden
administration, together with a resilient
US housing market, are expected to result
in record CRT issuance in 2022.
Earlier this month, Freddie said it plans
to print at least US$25bn in residential CRT
this year, up from US$18bn in 2021. Fannie
said it would issue US$15bn in CRT in
2022. Fannie priced a US$1.506bn
note issues made in 2015 and 2018.
Wendy’s declined to elaborate on its ABS
plan or on which banks it is considering
hiring for this possible issue.
ABS investors have gobbled up whole
business securitisations from fast-food
operators, whose revenues have shown
steady growth during the pandemic.
Historic low interest rates, meanwhile,
have enticed WBS issuers to come to
ûWHICHûISûUPûFROMûûINûû4HEREû
are currently 2,254 Planet Fitness gyms
around the world, according to Kroll.
“Owning corporate stores is an
important part of our strategy, as it gives
us both relevancy and credibility when
making decisions that impact the entire
system,” Planet Fitness chief executive
OFlCERû#HRISû2ONDEAUûSAIDûINûAûSTATEMENTû
about the Sunshine acquisition.
Connecticut Avenue Securities Trust 2022- MARKETûTOûRElNANCEûTHEIRûOLDERûMOREû The new ABS will increase the total debt
R01 on January 11. expensive debt. These positive factors to Planet Fitness securitisation trust to

International Financing Review January 22 2022 41

53BNûVERSUSû53BNûINûûBUTûTHEû
trust’s leverage will fall to 7.7x from 8.4x
on a total debt to adjusted Ebitda basis due
TOûTHEûEXPECTEDûINCREASEûINûCASHmOWSûTOû
service the debt from the Sunshine deal,
S&P said in a pre-sale report.
“Although we view Planet Fitness’
leverage as high relative to its corporate
securitisation peers, the company’s
performance has been improving from
Covid-related stress, and the results of
TERMûlNANCINGûTOû INVESTORûDEMANDûFORûITSûlRSTûSECURITISATIONû
strong membership and system-wide sales
indicate that the business may return to
year’s conference, which was down
sharply from around 8,200 attendees in
2020 prior to the Covid outbreak in the
United States.
KKR ACQUIRES MORTGAGE LENDER
0RIVATEûEQUITYûlRMûKKR said on Wednesday
it had purchased Merchants Mortgage
Trust & Corporation, which extends bridge
LOANSûANDûOTHERûSHORT
individual residential real estate investors,
for an undisclosed sum.
loans through KKR and its portfolio
companies, a source familiar with the
transaction said.
SERVPRO CLEANS UP IN ABS RETURN
SERVPRO, the biggest US provider of
property cleaning and restoration services,
raised US$260m in the asset-backed
market last Thursday, drawing solid
since last March.
The single-class transaction, SERVPRO
ûLEVELSûWHICHûCOULDûCAUSEûLEVERAGEûTOû Merchants is the latest KKR investment MASTER ISSUER LLC 2022-1, which carried a
fall below 7.0x,” S&P analysts wrote.
OMICRON DELAYS MAJOR US
SECURITISATION CONFERENCE
BBB- by S&P and BBB by Kroll, came in
Concerns about the Covid virus led to the
mIPvûLOANS
postponement of the US structured
lNANCEûINDUSTRYSûBIGGESTûCONFERENCEûFORûAû
BASEDûlNANCEûINVESTMENTû
second consecutive year.
The Structured Finance Association said
last Thursday it had moved its annual
SFVegas conference to July 17–20 from the
original dates of February 27 to March 2.
The event will still take place at the Aria
INûRESIDENTIALûlNANCEûWHICHûHASûBEENû
bolstered by blistering housing demand
during the pandemic. KKR has a stake in
Toorak Capital Partners, which makes
SIMILARûTYPESûOFûMORTGAGESûINCLUDINGûhlX
AND
BPûOVERûSWAPSûFORûAûYIELDûOFû
4HEû-ERCHANTSûACQUISITIONûlTSûINTOû
++2SûASSET
That yield is higher than the 2.40% on a
strategy that targets privately originated
INVESTMENTSûBACKEDûBYûHARDûANDûlNANCIALû
assets, KKR said, adding its credit strategies
will gain exposure to a pool of directly
originated, primarily short-term prime
residential mortgages. Merchants, founded
weighted-average life of 6.8 years, was
more than twice oversubscribed, a source
familiar with the deal said. The spread on
the notes, which were expected to be rated
Barclays was the sole bookrunner.
same-size note issue priced 10 months ago,
SERVPRO MASTER ISSUER LLC 2021-1, partly due to
the increase in overall bond yields. But it
was lower than the whole business
securitisation sold last week by a home
services rival, NEIGHBORLY, whose single-
Resort and Casino in Las Vegas.
The industry group said in a statement it
made the decision due to “the uncertainty
surrounding the Omicron variant, and to
make in-person attendance an option for
as many people as possible”.
,ASTûYEARSû3&6EGASûGATHERINGûlNALLYû
happened last October after it was delayed
a couple of times. The four-day event for
bankers, issuers, investors, rating agencies,
INûûANDûBASEDûINû$ENVERûORIGINATEDû
more than US$500m in loans to 500
borrowers in 2021.
“By enabling entrepreneurs to invest in
residential real estate, MMTC is
contributing to the long-term resilience of
the US housing market, which we are
excited to support through our ABF
strategy,” Daniel Pietrzak, partner and co-
head of private credit at KKR, said in a
tranche offering, NEIGHBORLY ISSUER LLC 2022-1,
with a 6.8-year WAL and a BBB– rating
from Kroll, cleared at a spread of swaps
plus 200bp and a yield of 3.712%.
While both companies have roughly the
same level of annual system-wide sales at
about US$3bn, Servpro paper has tended
to price tighter than Neighborly’s because
the former’s business is more tightly
focused in clean-up and repairs on
lawyers and service vendors, adapted a statement. PROPERTIESûDAMAGEDûBYûWATERûlREûMOULDû
hybrid format where attendees Merchants, which has sold its loans to or storms. Neighborly, on the other hand,
participated either online or in-person. securitisation issuers, is expected to offers a much wider array of into home
Roughly 3,600 people registered for last continue to securitise some or all of its services such as plumbing, pest control

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 21/1/2022

Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

SSAR
US DOLLARS
Jan 19 2022 Cades US$3bn Jan 26 2032 2.125 99.866 SOFR MS+48 2.14

Jan 19 2022 CDC US$1bn Feb 5 2025 1.375 99.637 SOFR MS+21 1.493

Jan 19 2022 JFM US$750m Jan 27 2025 1.5 99.93 SOFR MS+26 1.524

Jan 19 2022 NWB US$1.25bn Mar 15 2024 1.125 99.801 SOFR MS+15 1.22

Jan 20 2022 L-Bank US$1bn Jan 27 2025 1.375 99.751 SOFR MS+18 1.455

Jan 20 2022 L-Bank US$250m incr Oct 12 2028 1.375 96.739 SOFR MS+34 1.888
(US$750m)

EUROS
Jan 17 2022 Rentenbank €750m incr Dec 13 2028 0 99.533 MS-15 0.068
(€1.25bn)

42 International Financing Review January 22 2022


and landscaping, the source familiar with
the deal said.
Moreover, Servpro’s investment-grade
ABS issue are rated by two agencies rather
than one, which has tended to draw more
buying interest.
Proceeds from the Servpro deal are
intended for general corporate purposes
including a possible dividend to
shareholders, Kroll said.
leveraged loans. It is now just a matter of
calculating how much extra compensation
needs to be built in.
Recent loans, including US$3.6bn of
lNANCINGûTOûBACKûTHEûACQUISITIONûOFû
software company Quest Software by
Clearlake Capital, added a separate CSA on
top of the coupon paid to lenders to
increase compensation. Other borrowers,
however, have chosen not to add a
BONDS SUMMARY DETAILS
Blackstone reset its Allegany Park CLO
with Wells Fargo, setting pricing on a
US$320m Triple A tranche at 130bp over
SOFR, according to a source. ZAIS Group
priced a new deal with Jefferies setting the
coupon on a US$215m senior slice at 152bp
over SOFR, according to a second source.
Earlier this month Palmer Square Capital
Management priced a new static CLO that
pegged all of its tranches to SOFR.
)Nû-ARCHûûPRIVATEûEQUITYûGIANTû
Blackstone acquired a majority stake in
ISSUEû53û
Servpro.
The Servpro and Neighborly deals have
EVERû
rekindled the whole business ABS sector in
2022 following a record-setting year where
US$14.6bn in issuance was priced. This
separate cushion, including a US$1.15bn
term loan to back the spin-off of diabetes
care business Embecta from Becton,
Dickinson and Co.
The adjustment required for loans and
CLOs has been hotly debated because
existing funds that have built in
In November Marathon Asset
-ANAGEMENTûRAISEDûTHEûlRSTûNEW
CLO tranche tied to SOFR, just weeks after
/NEXû#REDITû0ARTNERSûPRICEDûTHEûlRST
SOFR CLO tranche in a reset transaction.
ARRC ADJUSTMENT
WEEKûlTNESSûCHAINûOPERATORûPLANET FITNESS
ISûREADYINGûAû53Mû7"3ûTOûRElNANCEû
some older debt and fund its acquisition of
a large franchisee.
US CLO
CLO MARKET TO ADAPT TO SOFR
The US CLO new-issue market is off to a
subdued start after record volume in 2021
as the asset class debates the correct
compensation for deals priced off of a new
benchmark rate.
The CLO market has started to adopt
SOFR as a lending benchmark to replace
Libor, but a sticking point is what
adjustment needs to be made as part of the
“hardwired” transition language
recommended by the Federal Reserve-
backed Alternative Reference Rates
Committee must use a 26bp CSA for three-
month SOFR. Loans are typically setting
the CSA for one-month SOFR at 10bp and
15bp for a three-month contract.
CLO issuers and investors – both debt
and equity – are taking their time to
determine the best level to set spreads,
particularly on the most senior slice,
according to Dan Wohlberg, director at
INVESTMENTûlRMû%AGLEû0OINTû#REDITû
Management.
“Many dealers are leading with large
liquid CLO managers to determine a fair
clearing Triple A value for the most
seasoned issuers,” he said. “Once a level is
set for managers of that tiering, it becomes
CLOs pool loans of different credit quality
and sell slices of the fund of varying seniority
to investors. A fund’s debtholders receive a
coupon – formerly based off Libor, but now
SOFR, and equity holders are paid the leftover
interest received. This could mean CLOs pay a
higher adjustment to their own investors
than they are receiving for lending to
borrowers in the US leveraged loan market,
leaving less for the equity tranche investors.
There is a big negotiation on how far to
adjust spreads when moving to SOFR from
Libor, according to Sean Solis, a partner at
LAWûlRMû-ILBANKû4HEû!22#ûSAIDûAûBPû
adjustment should apply for three-month
term SOFR when deals transition, but in
newly negotiated deals, the increase in
spread will be lower.
4HEû#,/ûMARKETûMAYûSTILLûBEûlNDINGûITSû
TRANSITIONûTOûREmECTûTHEûBASISûORûDIFFERENCEû
between the two rates.
CLO managers may simply incorporate
the extra spread required rather than
adding a separate credit spread
adjustment, as has occurred on some
a jumping off point for other issuers.”
JP Morgan has forecast Triple A spreads to
be 130bp over SOFR as part of an initial price
discovery before tightening to end the year
at 120bp, according to Rishad Ahluwalia,
head of CLO research at JP Morgan.
footing at the start the year, but that has not
dampened expectations for 2022.
“We think market activity was expected
to be slow early in the year, but our
US$135bn [full year] forecast would still be
the second-highest ever,” said Ahluwalia.

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

SOFR MS+50 area, - US$4.25bn Aa2/AA/NR/AAH BNPP/DB/GS/JPM -

SOFR MS+49 area,
SOFR MS+48
SOFR MS+22 area, - US$1.6bn Aa2/AA/AA BNPP/Citi/Daiwa/DB/HSBC N.Amer 36%, Asia 30%, Eur 27%, UK
SOFR MS+22 area, 7%. CB/OI 70%, Bks/PB 25%, FM/Ins/
SOFR MS+21 Other 5%.
SOFR MS+29 area, - US$1.4bn A1/A+/- Nomura/Barc/BofA/MS -
SOFR MS+27 area,
SOFR MS+26
SOFR MS+16 area, - US$1.8bn Aaa/AAA/- BMO/Daiwa/NatWest -
SOFR MS+16 area,
SOFR MS+15
SOFR MS+18 area, - US$750m Aaa/AA+/AAA Barc/BMO/DB/JPM -
SOFR MS+18 area,
SOFR MS+18
SOFR MS+34 area, - US$275m Aaa/AA+/AAA Barc/BMO/DB/JPM -
SOFR MS+34 area,
SOFR MS+34

MS-14 area, MS-15 - €925m Aaa/AAA/AAA JPM/LBBW/SG -

International Financing Review January 22 2022 43

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 21/1/2022 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Jan 18 2022 Belgium €5bn Jun 22 2032 0.35 99.868 MS-6 0.363

Jan 18 2022 MuniFin €1bn Feb 25 2032 0.25 98.991 MS-5 0.352

Jan 18 2022 NRW.Bank €500m Jan 26 2032 0.25 99.107 MS-6 0.341

Jan 18 2022 Quebec €2.25bn Jan 25 2032 0.5 99.244 MS+18 0.578

Jan 19 2022 Austria €1.25bn incr Apr 20 2071 0.7 88.237 MS+62 1.004
(€3.25bn)
Jan 19 2022 Austria €3.5bn Oct 20 2028 0 99.832 MS-21 0.025
Jan 19 2022 Austria €1.5bn incr Oct 20 2040 0 88.968 MS+1 0.626
(€5.3bn)
Jan 19 2022 Berlin €500m Jan 26 2052 0.625 99.619 MS+10 0.639

Jan 19 2022 Greece €3bn Jun 18 2032 1.75 99.197 B+184.2 1.836

STERLING
Jan 18 2022 AFD £500m Jun 18 2025 1.25 99.843 G+43 1.294
Jan 18 2022 CoE £250m Sep 15 2026 1.25 99.903 G+35 1.268

Jan 19 2022 Rentenbank £250m Jul 22 2027 1.25 99.553 G+30 1.331

Jan 20 2022 KfW £500m incr Jul 18 2024 0.875 99.24 G+32 1.185
(£2.35bn)
NON CORE
Jan 14 2022 AfDB A$300m incr Jan 10 2025 4 107.438 ASW+8 1.433
(A$650m)
Jan 14 2022 IADB A$2500 incr Apr 14 2027 2.5 0 ASW+21 -
(A$650m)
Jan 18 2022 NWB A$150m Jul 27 2032 2.5 99.588 ASW+40 2.545

Jan 19 2022 NIB A$125m incr Feb 28 2024 4.75 107.294 ACGB+34 1.2
(A$1.71bn)
Jan 21 2022 KfW A$300m Feb 15 2027 2 100 ASW+20 2

Jan 14 2022 ADB C$750m Jan 28 2025 1.625 99.959 MS-30 1.639
Jan 20 2022 NIB DKr2bn Jan 28 2030 0.125 99.651 MS-33.5 0.169

Jan 14 2022 Saxony-Anhalt NKr1bn Jan 25 2027 3mN+15 107.127 3mN+5 -

Jan 18 2022 ADB NZ$1.2bn Jan 28 2027 2.75 99.759 MS+15 2.802
Jan 21 2022 KBN NZ$500m Feb 9 2027 2.875 99.751 MS+215 2.929
Jan 19 2022 EIB Z1.1bn incr Nov 25 2029 0 92.41 PolGB+10 4.154
(Z3.2bn)
Jan 14 2022 SEK SKr500m incr Nov 8 2023 0.235 99.964 - 0.255
(SKr1.5bn)
Jan 21 2022 Malmo NKr1bn Mar 22 2027 3mN+100 100 3mN+100 -
CORPORATES
US DOLLARS
Jan 19 2022 Target Corp US$1bn Jan 15 2027 1.95 99.83 T+38 1.986
Jan 19 2022 Target Corp US$1bn Jan 15 2052 2.95 99.056 T+85 2.998
EUROS
Jan 17 2022 Cofinimmo €500m Jan 24 2028 1 99.826 MS+85 1.03

44 International Financing Review January 22 2022

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

MS-5 area, MS-6 2 €21bn, 155acs Aa3/AA/AA BNPPFortis/Citi/JPM/Natx/Nomura UK 28.9%, Neth 16.8%, Fr 15.6%, RoEur
19.2%, Belg 5.3%, Ger 5.1%, US 6.2%,
RoW 3%. Tsy 34.5%, FM 22.1%, CB/
OI 18.6%, PF 8.8%, HF 7.6%, Ins 5.8%,
Bank 2.7%.
MS-3 area, MS-4 - €2.05bn Aa1/AA+/- Citi/Danske/DB/TD Benelux 32%, Ger/Aus/Switz 22%, Fr
area (+/-1 WPIR), 17%, Asia 10%, Nordics 9%, Amers 5%,
MS-5 UK 4%, RoEur 1%. Bks 35%, CB/OI 31%,
AM 23%, Ins/PF 11%.
MS-3 area, MS-5 - €2.1bn Aa1/AA/AAA Deka/Uni -
area (+/-1 WPIR),
MS-6
MS+20 area, MS+19 - €4.1bn, 95acs Aa2/AA-/AA- BNPP/DB/JPM/NatWest/SG Fr 20%, Benelux 16%, Ger/Aus 16%,
area (+/-1 WPIR), UK 15%, US 13%, Swtiz 8%, RoEur
MS+18 6%, Nordics 4%, Other 2%. Bks/
Intermediaries 38%, AM 26%, OI 22%,
Ins/PF 10%, HF 3%.
MS+63 area, - €6.7bn Aa1/AA+/AA+/AAA Barc/BofA/Erste/GS/JPM/Uni -
MS+62
MS-19 area, MS-21 - €16.5m Aa1/AA+/AA+/AAA Barc/BofA/Erste/GS/JPM/Uni -
MS+2 area, MS+1 - €11.3bn Aa1/AA+/AA+/AAA Barc/BofA/Erste/GS/JPM/Uni -

MS+10 area, MS+10 - €500m Aa1/NR/AAA/ Deka/DZ/GS/JPM/LBBW/NordLB -

Scope:AAA
MS+145 area, - €15bn, 179acs Ba3/BB/BB/BB Barc/CMZ/EFG/MS/Nomura/SG UK/Ire 27.1%, Greece15.5%, Fr 13.3%, It
MS+140 9.1%, Nordics 8%, US 7.8%, Ger/Aus/
Switz 7.2%, Iberia 7.2%, RoEur 4.4%,
RoW 0.4%. FM 48.7%, Bks/PB 29.8%,
HF 12.8%, Ins/PF 7.3%, CB/OI 1.1%,
Other 0.3%.

G+45 area, G+43 - £650m NR/AA/AA BofA/DB/HSBC -

G+35 area, G+35 - £350m Aa1/AAA/AA+ BofA/RBC/TD -
area, G+35
G+30 area, G+30 - £200m Aaa/AAA/AAA Barc/BofA/NatWest -
area, G+30
G+33 area, G+32 - £820m Aaa/AAA/-/ Barc/BofA/HSBC -
Scope:AAA

ASW+8 - - Aaa/AAA/AAA/NR Nomura/TD -

ASW+21 - - Aaa/AAA/AAA ANZ/CBA -

ASW+40 area, - - Aaa/AAA/- Daiwa/Nomura/RBC -

ASW+40
ACGB+34 - - Aaa/AAA/AAA/NR Daiwa -

ASW+20 area, - - Aaa/AAA/AAA DB/RBC/TD -

ASW+20
GOC+33.8, MS-30 - - Aaa/AAA/AAA BMO/CIBC/Scotia/TD -
MS+33.5 - DKr2.2bn Aaa/AAA/-/ Danske/SEB Denm 99.5%, UK 0.5%. FM 52%, Ins/
Cicero:Cicero 2PO PF 48%.
3mN+5 - - Aa1/AA/AAA Nordea -
MS+15 area, MS+15 - - Aaa/AAA/AAA ANZ/BNZ/TD -
MS+21 - - Aaa/AAA/- ANZ/CBA/TD -
PolGB+10 area, - - Aaa/AAA/AAA BofA -
PolGB+10
- - - NR/NR/- SEB -

- - - NR/AAA SEB -

T+60 area, T+38 3 US$3.9bn A2/A/A BofA/Citi/Barc -

T+100 area, T+85 4 US$3bn A2/A/A BofA/Citi/Barc -

MS+110 area, - €1.6bn NR/BBB+/- BNPP/SG/ABN/GS/JPM/SMBC Nikko -

MS+90 area,
MS+85

International Financing Review January 22 2022 45

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 21/1/2022 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Jan 17 2022 Heimstaden Bostad Treasury €700m Jul 24 2025 0.625 99.76 MS+70 0.695

Jan 17 2022 Heimstaden Bostad Treasury €500m Jul 24 2028 1.375 99.179 MS+130 1.509

Jan 18 2022 DVI Deutsche €350m Jan 25 2027 2.5 99.463 MS+250 2.616
VermogensUnd
Immobilienverwaltungs
Jan 18 2022 Gecina €500m Jan 25 2033 0.875 98.211 MS+60 1.048

Jan 19 2022 Corporacion Acciona €500m Jan 26 2032 1.375 99.889 MS+98 1.387
Energias Renovables

Jan 19 2022 P3 Group €500m Jan 26 2026 0.875 99.326 MS+100 1.048

Jan 19 2022 P3 Group €500m Jan 26 2029 1.625 99.196 MS+150 1.748

Jan 20 2022 CNP Assurances €500m Jan 27 2029 1.25 99.489 MS+110 1.327

Jan 20 2022 Intermediate Capital Group €500m Jan 28 2030 2.5 99.414 MS+230 2.582

STERLING
Jan 17 2022 Futures Housing Group £70m incr Feb 8 2044 3.375 118.313 G+95 2.31
(£270m)
Jan 19 2022 Places for People Treasury £300m Jan 26 2036 2.5 98.598 G+123 2.604

SWISS FRANCS
Jan 19 2022 Zug Estates SFr100m Apr 17 2029 0.75 100.008 Saron MS+63 0.749

JAPANESE YEN
Jan 14 2022 Berkshire Hathaway ¥44.4bn Jan 23 2032 0.472 100 Tonar swaps+33 0.472

Jan 14 2022 Berkshire Hathaway ¥12.5bn Jan 23 2037 0.7 100 Tonar swaps+43 0.7

Jan 14 2022 Berkshire Hathaway ¥7bn Jan 24 2042 0.917 100 Tonar swaps+53 0.917

Jan 14 2022 Berkshire Hathaway ¥23bn Jan 25 2027 0.203 100 Tonar swaps+17 0.203

Jan 14 2022 Berkshire Hathaway ¥25bn Jan 25 2029 0.32 100 Tonar swaps+25 0.32

Jan 14 2022 Berkshire Hathaway ¥16.6bn Jan 25 2052 1.129 100 Tonar swaps+58 1.129

46 International Financing Review January 22 2022

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

MS+90 area, - €1.6bn NR/BBB/- BNPP/Citi/Danske/DB/ING/JPM/ -

MS+70/+75, MS+70 Nordea/Nyk/HCM/Swed/Uni
MS+145 area, - €825m NR/BBB/- BNPP/Citi/Danske/DB/ING/JPM/ -
MS+130/+135, Nordea/Nyk/HCM/Swed/Uni
MS+130
MS+250/+260, - €460m NR/BBB-/BBB- DB/Uni -
MS+250

MS+75/+80, - €875m A3/A-/- BNPP/CA-CIB/CIC/HSBC/Medio/ -

MS+60/+65, Santan/SG
MS+60
MS+120/+125, - €2.1bn -/-/BBB-/BBBH/ Saba/BBVA/Bestinver/BofA/Caixa/ -
MS+100/+105, Sustainalytics: CA-CIB/HSBC/ING/Miz/Santan
MS+98
MS+110 area, - €690m NR/BBB/-/ BNPP/HSBC/DB/ING/JPM UK/Ire 43%, Benelux 23%, Germ9%,
MS+100/+105, Sustainalytics:2PO Nordics 8%, S.Eur 8%, Switz 3%, Fr 2%,
MS+100 Other 4%. FM 73%, Ins/PF 17%, Bks 4%,
OI 4%, HF 2%.
MS+160 area, - €700m NR/BBB/-/ BNPP/HSBC/DB/ING/JPM UK/Ire 60%, Benelux 11%, Ger 13%,
MS+150/+155, Sustainalytics:2PO Nordics 5%, S.Eur 2%, Switz 3%, Fr 4%,
MS+150 Other 2%. FM 84%, Ins/PF 11%, Bks 3%,
HF 2%.
MS+130/+135, - €1.1bn NR/A-/BBB+ Citi/CS/HSBC/LBP/Natx/SG -
MS+110/+115 WPIR,
MS+110
MS+230 area, - €600m NR/BBB-/BBB/ JPM/SG/HSBC UK/Ire 37%, Iberia 18%, Benelux 16%,
MS+230 Sustainalytics:2PO Ger/Aus/Switz 13%, Nordics 11%, RoEur
5%. FM 65%, Ins/PF 21%, CB/OI 11%,
Bks/PB 3%.

G+95 - - NR/A+/- NatWest -

G+135 area, G+125 - £660m A3/A-/A/ Barc/NatWest/GS/BoC/MUFG -

area (+/-2 WPIR), IMUG:IMUG 2PO
G+123

Saron MS+65/+70, -5 -, 45acs -/-/-/Credit UBS/ZKB Switz 100%. AM 68%, Bks/PB/Tsy 29%,
Saron MS+63/+65 Suisse:mid PF 2%, Ins 1%.
WPIR, Saron MS+63 BBB,fedafin:Baa-
,ISS ESG:2PO
,ZKB:BBB-

Tonar - - Aa2/AA/A+ BofA/JPM/Miz -

swaps+33/+40,
Tonar
swaps+33/+35,
Tonar swaps+33
(the #)
MS+43/+48, Tonar - - Aa2/AA/A+ BofA/JPM/Miz -
swaps+43/+45,
Tonar swaps+43
(the #)
Tonar - - Aa2/AA/A+ BofA/JPM/Miz -
swaps+53/+58,
Tonar
swaps+53/+55,
Tonar swaps+53
(the #)
Tonar - - Aa2/AA/A+ BofA/JPM/Miz -
swaps+17/+19, Tonar
swaps+17/+18, Tonar
swaps+17 (the #)
Tonar - - Aa2/AA/A+ BofA/JPM/Miz -
swaps+23/+28,
Tonar
swaps+24/+26,
Tonar swaps+25
(the #)
Tonar - - Aa2/AA/A+ BofA/JPM/Miz -
swaps+58/+63,
Tonar
swaps+58/+60,
Tonar swaps+58
(the #)

International Financing Review January 22 2022 47

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 21/1/2022 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

NON CORE
Jan 13 2022 Fibo Group NKr500m Jan 28 2025 (Jan 2023) 3mN+600 100 3mN+600 -

Jan 13 2022 Dios Fastigheter SKr150m Sep 15 2023 3mS+130 99.99 3mS+130 -

Jan 17 2022 Scania SKr1.1bn Jan 24 2024 3mS+50 100.302 3mS+40 -

Jan 17 2022 Scania SKr1.2bn Jan 24 2024 3mS+50 100.5 3mS+25 -
Jan 17 2022 Scania SKr500m Jan 24 2025 1.003 100 MS+40 1.003
Jan 17 2022 Swedish Match SKr200m incr Jan 24 2026 1.395 98.547 MS+103 -
(SKr1.2bn)
Jan 19 2022 Rikshem SKr300m Oct 28 2025 3mS+35.5 100 3mS+35.5 -
Jan 19 2022 Specialfastigheter SKr300m Jan 27 2026 0.86 100 - -
Jan 20 2022 FastPartner SKr400m Feb 2 2027 2.288 100 MS+145 2.288
Jan 20 2022 FastPartner SKr900m Feb 2 2027 3mS+145 100 3mS+145 -
Jan 21 2022 Oscar Properties Holding SKr250m incr July 5 2024 (July 2023) 3mS+725 99 - -
(SKr800m)
FINANCIALS
US DOLLARS
Jan 18 2022 Citigroup US$500m Jan 25 2026 (Jan 2025) SOFR+69.4 100 SOFR+69.4 -

Jan 18 2022 Citigroup US$2bn Jan 25 2026 (Jan 2025) 2.014 100 T+67 2.014

Jan 18 2022 Citigroup US$3bn Jan 25 2033 (Jan 2032) 3.057 100 T+118 3.057

Jan 18 2022 JPMorgan Chase & Co US$3.5bn Jan 25 2033 2.963 100 - 2.963
Jan 19 2022 Bank of New York Mellon US$850m Jan 26 2027 2.05 99.915 T+45 2.07

Jan 19 2022 Bank of New York Mellon US$450m Jan 26 2032 2.5 99.701 T+70 2.534

Jan 19 2022 Goldman Sachs US$350m Feb 24 2028 (Feb 2027) SOFR+112 100 SOFR+112 -

Jan 19 2022 Goldman Sachs US$3bn Feb 24 2028 (Feb 2027) 2.64 100 T+100 2.64

Jan 19 2022 Goldman Sachs US$4bn Feb 24 2033 (Feb 2032) 3.102 100 T+125 3.102

Jan 19 2022 Goldman Sachs US$2bn Feb 24 2043 (Feb 2042) 3.436 100 T+120 3.436

Jan 19 2022 Goldman Sachs US$650m Jan 24 2025 (Jan 2024) SOFR+70 100 SOFR+70 -

Jan 19 2022 Goldman Sachs US$2bn Jan 24 2025 (Jan 2024) 1.757 100 T+70 1.757

Jan 19 2022 Morgan Stanley US$2.25bn Jan 21 2028 (Jan 2027) 2.475 100 T+87.5 2.475

Jan 19 2022 Morgan Stanley US$2.5bn Jan 21 2033 (Jan 2032) 2.943 100 T+112.5 2.943

Jan 19 2022 Morgan Stanley US$1.25bn Jan 24 2025 (Jan 2024) SOFR+62.5 100 SOFR+62.5 -

Jan 20 2022 Bank of America US$1.75bn Perpetual (Jan 2027) 4.375 100 T+276 4.375

Jan 20 2022 BNZ US$400m Jan 27 2027 SOFR+81 100 SOFR+81 -

Jan 20 2022 BNZ US$750m Jan 27 2027 2.285 100 - 2.285

Jan 20 2022 BNZ US$350m Jan 27 2032 2.87 100 - 2.87

Jan 20 2022 U.S. Bancorp US$1.25bn Jan 27 2028 (Jan 2027) 2.215 100 - 2.215

Jan 20 2022 U.S. Bancorp US$850m Jan 27 2033 (Jan 2032) 2.677 100 - 2.677

EUROS
Jan 17 2022 KBC Group €750m Jan 21 2028 (Jan 2027) 0.75 99.717 MS+70 0.808

Jan 17 2022 NIBC Bank €500m Jul 24 2027 0.875 99.393 MS+85 0.991

48 International Financing Review January 22 2022

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

3mN+600/+650, - - - ABG/Carnegie/DNB -
3mN+600
3mS+130 - - NR/NR/-/ Danske -
Cicero:2PO
3mS+40 - - - Danske -
3mS+25 - - - Danske -
MS+40 - - - Danske -
MS+103 - - Baa2/BBB+/- Danske -

- - - A3/Cicero 2PO Danske

- - - -/AA+/- Danske -
MS+145 - - Baa3/-/- Danske/HCM -
3mS+145 - - Baa3/-/- Danske/HCM -
99.00-100, 99.00 - - - DNP/Pareto -

SOFR Equiv, SOFR - US$1bn A3/BBB+/A Citi -

Equiv, SOFR+69.4
T+85 area, T+67 -1 US$3.2bn A3/BBB+/A Citi -
(the #)
T+135 area, T+118 - US$7.8bn A3/BBB+/A Citi -
(the #)
T+130 area, T+110 1 - A2/A-/AA- JPM -
T+60 area, T+45 4 US$1.1bn A1/A/- BofA/GS/UBS/BNY -
(the #)
T+85 area, T+70 2 US$1bn A1/A/- BofA/GS/UBS/BNY -
(the #)
SOFR Equiv, - US$700m A2/BBB+/- GS -
SOFR+112 (the #)
T+120 area, T+100 2 US$7.9bn A2/BBB+/- GS -
(the #)
T+145 area, T+125 1 US$11.5bn A2/BBB+/- GS -
(the #)
T+140 area, T+120 0 US$7.2bn A2/BBB+/- GS -
(the #)
SOFR+90 Equiv, - US$1.1bn A2/BBB+/- GS -
SOFR+70 (the #)
T+90 area, T+70 4 US$3.6bn A2/BBB+/- GS -
(the #)
T+100/+105, T+90 -1.5 US$5.6bn A1/BBB+/A MS -
area (+/-2.5),
T+87.5
T+130/+135, T+115 -1.5 US$10.5bn A1/BBB+/A MS/Ramirez/Academy -
area (+/-2.5),
T+112.5
SOFR Equiv, - US$1.9bn A1/BBB+/A MS -
SOFR+65 area (+/-
2.5), SOFR+62.5
4.5% area, 4.375% - - Baa3/BBB-/BBB+ BofA -
(the#), 4.375%
SOFR equiv, - - A1/AA-/- Citi/GS/NAB/TD -
SOFR+81 (the #)
T+85/+90, T+68 - - A1/AA-/- Citi/GS/NAB/TD -
(the #)
T+115/+120, T+105 - - A1/AA-/- Citi/GS/NAB/TD -
(the#)
T+75 area, T+60 - - A2/A+/A+/AA MS/RBC/USB -
(the #)
T+100/+105, T+85 - - A2/A+/A+/AA MS/RBC/USB -
(the #)

MS+75/+80, MS+70 15 €1bn, 70acs Baa1/A-/A BLB/BNPP/DB/GS/KBC UK/Ire 35%, Fr 19%, Ger/Aus/Switz 18%,
the # Benelux 18%, S.Eur 6%, Asia 3%, Other
1%. AM/FM 62%, Ins/PF 14%, Bks/PB
12%, CB/OI 10%, Other 2%.
MS+95 area, 15 €700m NR/BBB+/BBB CS/DB/GS/JPM/SG -
MS+85 the #

International Financing Review January 22 2022 49

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 21/1/2022 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Jan 18 2022 Berlin Hyp €500m Jan 25 2027 0.375 99.817 MS+30 0.412

Jan 18 2022 BPCE €1bn Feb 2 2026 0.375 99.636 MS+42 0.467

Jan 18 2022 BPCE €1bn Feb 2 2034 (Feb 2029) 1.75 99.602 MS+157 1.811

Jan 18 2022 Islandsbanki €300m Mar 25 2025 0.75 99.878 MS+83 0.789

Jan 19 2022 Santander €1.5bn Jan 26 2025 (Jan 2024) 0.1 99.958 MS+35 0.121

Jan 20 2022 OP Corporate Bank €500m Jul 27 2027 0.625 99.512 MS+58 0.716

STERLING
Jan 17 2022 BFCM £300m Jan 26 2025 SONIA+50 100 SONIA+50 -
Jan 17 2022 BFCM £300m Oct 26 2028 1.875 99.38 - 1.965

Jan 20 2022 CIBC £325m Jan 27 2026 1.875 99.643 - 1.959

Jan 20 2022 Utmost Group £300m Perpetual (Dec 2028) 6.125 100 G+498.3 6.125

SWISS FRANCS
Jan 17 2022 NAB SFr100m Feb 3 2028 0.563 100 Saron MS+38 0.563

Jan 17 2022 NAB SFr200m Feb 3 2028 0.293 100 Saron MS+30 0.293

NON CORE
Jan 17 2022 Suncorp A$225m Jan 25 2027 - - ASW+78 2.56

Jan 17 2022 Suncorp A$775m Jan 25 2027 3mBBSW+78 100 3mBBSW+78 -

Jan 18 2022 Westpac NZ A$850m Jan 25 2027 - - ASW+70 2.51

Jan 18 2022 Westpac NZ A$1.9bn Jan 25 2027 3mBBSW+70 100 3mBBSW+70 -

Jan 19 2022 Rabobank Australia A$700m Jan 27 2027 0 100 3mBBSW+73 -

Jan 20 2022 Bank of Queensland A$250m incr May 6 2026 3mBBSW+63 99.111 3mBBSW+85 -
(A$675m)
Jan 17 2022 Landsbankinn SKr850m Jan 19 2024 3mS+65 100 3mS+65 -
Jan 17 2022 Lansforsakringar Bank SKr100m incr Sep 25 2025 0.565 0 - -
(SKr1.4bn)
COVERED BONDS
EUROS
Jan 17 2022 ABN Amro €1bn Jan 24 2037 0.625 99.872 MS+8 0.634

Jan 17 2022 BNS €1.25bn Jan 26 2030 0.375 99.816 MS+10 0.398

Jan 17 2022 LBBW €750m Jul 24 2029 0.125 99.376 MS-5 0.209

Jan 18 2022 Aktia Bank €500m Oct 25 2028 0.125 99.464 MS-1 0.205

Jan 18 2022 Credit Agricole Home Loan €1.25bn Feb 1 2033 0.375 98.781 MS+5 0.489

Jan 18 2022 RBC €2bn Jun 22 2032 0.125 99.682 MS+6 0.186

50 International Financing Review January 22 2022

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

MS+45 area, - €1bn Aa2/NR/AA- CMZ/CA-CIB/JPM/LBBW/Uni/Hauck -

MS+30
MS+60 area, - €1.85bn A1/A/A+ Natx -
MS+45 area (+/-3
WPIR), MS+42
MS+175 area, - €1.55bn Baa2/BBB/A- Natx -
MS+160 area (+/-3
WPIR), MS+157
MS+100 area, - €450m NR/BBB/- BofA/DB/MS/Nomura -
MS+83
MS+50/+55, 8 €2.7bn, 175acs A2/A+/A DB/Natx/RBI/Santan/SG Fr 23%, Ger/Aus 19%, Benelux 17%, UK/
MS+35 Ire 16%, Iberia 13%, Nordics 5%, Italy 4%,
Switz 1%, Other 2%. AM 60%, Bks/PB
15%, Ins/PF 12%, CB/OI 12%.
MS+75, MS+60 area - €1.8bn Aa3/AA-/-/ BofA/Citi/CA-CIB/OP -
(+/-2 WPIR), MS+58 Sustainalytics:2PO

SONIA+50 - £310m Aa3/A+/AA- GS/NatWest -

G+105 area, G+100 - £350m Aa3/A+/AA- GS/NatWest -
area (+/-3 WPIR),
G+97
G+100 area (+/-5 - £395m A2/BBB+/AA- Barc/CIBC/HSBC/NatWest -
WPIR), G+100
6.5% area, 6.25% - £650m NR/NR/BB NatWest/Barc/Lloyds Asia 42%, UK/Ire 33%, Eur 25%. FM
area (+/-0.125% 96%, Bks/PB 4%.
WPIR), 6.125%

Saron MS+38 area, 10 -, 37acs Aa3/AA-/- CS/UBS Switz 100%. AM 55.5%, Bks/PB 15%, PF
Saron MS+38 area, 15%, Ins 14.5%.
Saron MS+38
Saron MS+30 area, 5 -, 44acs Aa3/AA-/- CS/UBS Switz 100%. AM 62.5%, Ins 28%, PF
Saron MS+30 area, 7.25%, Bks/PB 2.25%.
Saron MS+30

ASW+83 area, - - A1/AA-/A+ ANZ/CBA/RBC/UBS/WBC -

ASW+78
3mBBSW+83 area, - - A1/AA-/A+ ANZ/CBA/RBC/UBS/WBC -
3mBBSW+78
ASW+73 area, - - Aa3/AA-/A+ WBC -
ASW+70
3mBBSW+73 area, - - Aa3/AA-/A+ WBC -
3mBBSW+70
3mBBSW+78 area, - - Aa3/A+/AA- ANZ/CBA/NAB/UBS -
3mBBSW+73
3mBBSW+85 - - A3/BBB+/A- ANZ -

3mS+65 - - NR/BBB/- Nordea/SEB -

- - - A1/A/- Nordea -

MS+10 area, MS+8 5 €1.15bn Aaa/NR/AAA ABN/CS/Helaba/LBBW/Santan -

the #, MS+8
MS+12 area, MS+10 - €1.48bn Aaa/NR/AAA/AAA BofA/DB/HSBC/NatWest/ -
the # Scotiabank/SG
MS+0 area, MS-4 -1 €1.05bn Aaa/NR/- BNPP/CA-CIB/Erste/ING/LBBW/Uni -
area (+/-1 WPIR),
MS-5
MS+4 area, MS+0 1 €1.5bn, 45acs Aaa/NR/- ABN/Danske/LBBW/Nordea/Swed Ger/Aus 35%, Finl 22%, Nordics 21%,
area (+/-1 WPIR), Benelux 14%, Asia 4%, It 3%, Fr 1%. Bks
MS-1 38%, CB/OI 31%, AM/FM 29%, Ins/
PF 2%.
MS+8 area, MS+5 3 €1.4bn, 40acs Aaa/AAA/AAA CA-CIB/Danske/DB/Erste/ING/ Fr 50%, Ger/Aus/Switz 23%, S.Eur 12%,
Santan/SG Nordics 5%, Benelux 5%, UK/Ire 1%,
Other 4%. CB/OI 48%, Bks/PB 32%, Ins/
PF 13%, AM 6%, HF 1%.
MS+10 area, MS+6 3 €3.15bn, 90acs Aaa/NR/AAA/AAA Danske/DB/ING/Rabo/RBC/SG Ger/Aus 35%, Asia 18%, Benelux 16%,
Nordics 14%, UK/Ire 9%, Fr 4%, Switz
2%, RoEur 2%. CB/OI 39%, Bks/PB 33%,
FM 22%, Ins/PF 5%, Other 1%.

International Financing Review January 22 2022 51

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 21/1/2022 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Jan 19 2022 BMO €2.75bn Jan 26 2027 0.125 99.707 MS+6 0.184

Jan 19 2022 MunHyp €750m Feb 1 2029 0.125 99.353 MS-3 0.218

Jan 19 2022 RBI €500m Jan 26 2028 0.125 99.5 MS+2 0.209

STERLING
Jan 17 2022 BNS £1.3bn Jan 26 2026 100 102.85 SONIA+28 the # -

SWISS FRANCS
Jan 18 2022 PfZ SFr156m Feb 11 2042 0.45 100.43 Saron MS+1 0.428

-
Jan 18 2022 PfZ SFr542m incr Mar 15 2030 0 98.017 Saron MS+8.01 0.248
(SFr947m)
-
Jan 18 2022 PfZ SFr249m Nov 3 2032 0.375 100.055 Saron MS+8 0.37

-
Jan 19 2022 Credit Agricole next bank SFr100m Jul 28 2028 0.22 100 Saron MS+13 0.22

NON CORE
Jan 19 2022 SSB Boligkreditt NKr2bn Apr 26 2027 3mN+25 100 3mN+25 -
Jan 19 2022 Nordea Hypotek SKr500m Feb 26 2027 75 100 - -
HIGH YIELD
US DOLLARS
Jan 19 2022 Builders FirstSource US$300m Feb 1 2032 (Aug 2029) 4.25 100.5 T+236 4.188

Jan 19 2022 US Acute Care Solutions US$225m incr Mar 1 2026 (Mar 2025) 6.375 101.5 T+430 5.831
(US$725m)
Jan 20 2022 Ashton Woods USA US$100m incr Apr 1 2030 (Apr 2027) 4.625 97.5 T+321 5
(US$400m)
Jan 20 2022 Ryan Specialty Group US$400m Feb 1 2030 (Feb 2027) 4.375 100 T+260 4.375

Jan 20 2022 VistaJet Malta Finance US$1bn Feb 1 2030 (Feb 2027) 6.375 100 T+461 6.375

EUROS
Jan 18 2022 Autostrade €500m Jan 25 2028 1.625 99.384 MS+155 1.734

Jan 18 2022 Autostrade €500m Jan 25 2032 2.25 99.039 MS+195 2.359

Jan 18 2022 BPER Banca €600m Jul 25 2032 (Jul 2027) 3.875 100 MS+372.8 3.879

Jan 19 2022 Advanz Pharma €175m incr Apr 1 2028 (Apr 2026) 5 99.375 B+539 5.12
(€625m)

Jan 19 2022 CeramTec €465m Feb 15 2030 (Feb 2027) 5.25 100 B+540 5.25
Jan 19 2022 eDreams ODIGEO €375m Jul 15 2027 (Jul 2026) 5.5 100 B+580 5.5

Jan 19 2022 Salini Impregilo €400m Jul 28 2026 3.875 100 B+427.2 3.879

Jan 20 2022 NBC €1bn Jan 27 2027 0.125 99.821 MS+5 0.161

STERLING
Jan 20 2022 Voyage Care BondCo £250m Feb 15 2027 (Feb 2026) 5.875 100 G+483 5.875

Jan 20 2022 Zenith Finco £475m Jun 30 2027 (Jan 2026) 6.5 100 G+549 6.5

NON CORE
Jan 20 2022 VNV Global SKr1.2bn Jan 31 2025 (Oct 2024) 5 100 - 5

52 International Financing Review January 22 2022

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

MS+10 area, MS+6 - €3.6bn Aaa/NR/AAA/AAA BMO/BNPP/CMZ/CA-CIB/Santan/ -

UBS
MS flat area, MS-3 - €940m Aaa/-/- Barc/Deka/DZ/LBBW/Santan/Uni -
area (+/-1 WPIR),
MS-3
MS+5 area, MS+2, - €750m Aa1/-/- Barc/BNPP/CMZ/ING/Medio/RBI -
B+49.2, MS+2

SONIA+30 area, 2 £1.5bn Aaa/NR/AAA/AAA BofA/DB/HSBC/NatWest/ -

SONIA+28 the # Scotiabank/SG

Saron MS+1 area, - - Aaa/-/- SKB

Saron MS+1

Saron MS+8 area, - - Aaa/-/- SKB

Saron MS+8.01

Saron MS+8 area, - - Aaa/-/- SKB

Saron MS+8

Saron MS+12/+15, - - NR/NR/AAA CS/KBLuz/CA-CIB -

Saron MS+13 the #

3mN+25 - - - Danske/DNB/Swed -
- - - Aaa/-/- Nordea -

100.00-100.50, - - Ba2/BB-/- BofA/Citi/CS/Truist/WFS/RBC/USB -

100.50
101.00-101.50, - - B2/B-/- Barc/DB/Apollo -
101.50
Px 97.50 - - B1/B+/- JPM/WFS/FITB/FHN/Regions/ -
Truist/USB/TCBI Securities, Inc
4.75/5%, - - B1/BB-/- JPM/Barc/WFS/BMO/GS/RBC/ -
4.5%/4.75%, Southcoast/UBS/CIBC/PNC
4.375%
6.5%/6.75%, - - Caa1/B-/BB- BofA/Jeff/Barc/CS -
6.375%

MS+170/+175, - €1bn Ba2/BB/BB+ Citi/JPM/Uni -

MS+160 area (+/-5),
MS+155
MS+215 area, - €1.3bn Ba2/BB/BB+ Citi/JPM/Uni -
MS+200 area (+/-5),
MS+195
3.875% area, - €775m Ba3/NR/BB- Barc/BNPP/Citi/IMI/NatWest/Santan -
3.875%
99.000-99.25, - - B3/B-/B+ MS/Barc/GS/IMI/JPM/Jeff/RBC -
99.25 area (+/-
0.125), 99.375
5.25/5.5%, 5.25% - - Caa2/CCC+/- MS/BofA/Nomura/MUFG/DB/UBS -
High 5%s, 5.5% - - Caa1/CCC+/B- DB/Barc/Santan/BBVA/SG/MS/ -
Caixa
4% area, 3.875% - - NR/BB-/BB/Vigeo BofA/GS/IMI/Natx/Uni/Akros/BBVA/ -
Eiris:VE 2PO BNPP
MS+10 area, MS+5 - €1.5bn Aaa/NR/AAA/AAA BNPP/CA-CIB/LBBW/NBC/NatWest/ -
UBS

High 5%s, 5.875% - - B2/B+/- JPM/Barc/Lloyds/NatWest -

area, 5.875%
6.5% area, 6.5% - - B1/B+/- HSBC/Barc/GS/NatWest -
area (+/- 12.5), 6.5%

- - - - Carnegie/Pareto -

International Financing Review January 22 2022 53

GLOBAL DEBT: SOVEREIGN FOREIGN CURRENCY LONG-TERM RATINGS (21/1/2022)
Moody’s S&P Fitch Moody’s S&P Fitch
Sovereign 1 2 3 4 5 6 Sovereign 1 2 3 4 5 6
Abu Dhabi Aa2 – AA AA+ Ba2 AA+ Laos Caa2 n Caa2 – – Caa2 B–
Albania B1 Ba2 B+ BB – – Latvia A3 Aaa A AAA Aaa AAA
Andorra – – BBB p c AAA BBB+ A+ Lebanon C Ca SD CC Ca CCC
Angola B3 B3 CCC+ CCC B3 B Lesotho – – – – Bn B+
Argentina Ca Caa3 CCC+ CCC+ Caa3 B– Liechtenstein – Aaa AAA AAA Aaa –
Armenia Ba3 Ba1 – – B+ BB– Lithuania A2 Aaa A AAA Aaa AAA
Aruba – – BBB BBB BB BB+ Luxembourg Aaa Aaa AAA AAA Aaa AAA
Australia Aaa Aaa AAA AAA AAA AAA Macau Aa3 Aaa – – Aaa AAA
Austria Aa1 Aaa AA+ AAA Aaa AAA Macedonia (FYR) – – BB– BB BB+ n BBB-
Azerbaijan Ba2 p Ba2 BB+ BB+ Ba2 BB+ Malaysia A3 Aa2 A– n A+ Aa2 A
Bahamas Ba3 Baa3 B+ B– Baa3 – Maldives Caa1 B3 – – B3 B
Bahrain B2 n B1 B+ BB– B1 BB+ Mali Caa1 B2 – – B2 –
Bangladesh Ba3 Ba2 BB– B– Ba2 BB- Malta A2 n Aaa A– p AAA Aaa AAA
Barbados Caa1 B2 B– B– B3 Mauritius Baa2 n A1 – – A1 –
Belarus B3 n B3 Bn B B3 B Mexico Baa1 n Aa3 BBB A Aa3 BBB+
Belgium Aa3 Aaa AA AAA Aaa AAA Moldova B3 B2 – – B2 –
Belize Caa3 n Caa2 B– B– Caa2 – Mongolia B3 B3 B B+ B3 B+
Benin B1 Ba1 B+ BBB– Ba1 BB– Montenegro B1 p Baa3 B AAA Baa3 –
Bermuda A2 Aaa A+ AA+ Aaa – Montserrat – – BBB– BBB– – –
Bolivia B2 n B2 B+ B+ B2 B Morocco Ba1 Baa2 BB+ BBB Baa2 BB+
Bosnia Herzegovina B3 B3 B BB– B3 – Mozambique Caa2 Caa1 CCC+ CCC+ Caa1 B–
Botswana A3 n A1 BBB+ A A1 – Namibia Ba3 Ba1 – – Ba1 BB+
Brazil Ba2 Baa2 BB– BB+ Baa2 BB Netherlands Aaa Aaa AAA AAA Aaa AAA
Bulgaria Baa1 Aa2 BBB A Aa2 A– New Zealand Aaa Aaa AA+ AAA Aaa AAA
Cambodia B2 B1 – – B1 – Nicaragua B3 B2 B- B- B2 B-
Cameroon B2 B1 Bn BBB– B1 B+ Nigeria B2 B2 B– B– B2 B
Canada Aaa Aaa AAA AAA Aaa AAA Norway Aaa Aaa AAA AAA AAA AAA
Cape Verde – – B– B+ B– B Oman Ba3 Ba2 B+ p BB– BB– BB+
Cayman Islands Aa3 Aaa – – Aaa – Pakistan B3 B2 B– B– B2 B–
Chile A1 n Aaa A AA – Aaa A+ Panama Baa2 A1 BBB n AAA A1 A
China A1 Aa1 A+ A+ Aa1 A+ Papua New Guinea B2 n B1 B– B– B1 –
Colombia Baa2 A1 BB+ BBB A1 BBB– Paraguay Ba1 Baa2 BB BB+ Baa2 BB+
Congo (DR) Caa1 p Caa1 CCC+ p CCC+ – – Peru Baa1 Aa3 BBB+ n A Aa3 A–
Congo (Rep) Caa2 B2 CCC+ BBB- CCC B– Philippines Baa2 A2 BBB+ A- A2 BBB+
Cook Islands – – B+ AAA – – Poland A2 Aa3 A– A+ Aa1 AA–
Costa Rica B2 Ba3 B– n BB– Ba3 B+ Portugal Baa2 Aa2 BBB AAA Aa2 AA
Cote d’Ivoire Ba3 Baa3 BB– BBB– Baa3 BB Qatar Aa3 Aa1 AA– AA Aa1 AA
Croatia Ba1 A2 BBB– BBB+ A2 A– Ras al–Khaimah – – A– AA+ A AA+
Cuba Ca Ca – – – – Romania Baa3 n A2 BBB– A– A2 BBB+
Curacao – – BBB–n BBB– – – Russia Baa3 Baa2 BBB- BBB Baa2 BBB
Cyprus Ba1 A1 BBB– p AAA A1 A Rwanda B2 n B1 B+ n B+ B1 B+
Czech Rep Aa3 Aaa AA– AA+ Aaa AAA St Vincent & Gren B3 Ba3 – – – –
Denmark Aaa Aaa AAA AAA AAA AAA San Marino – – – BB+n BBB
Dominican Rep Ba3 Ba1 BB– n BB+ Ba1 BB– Saudi Arabia A1 Aa2 A– A Aa2 A+
Ecuador Caa3 Caa2 B– B– Caa2 B– Senegal Ba3 Baa3 B+ BBB– Baa3 –
Egypt B2 Ba3 B B Ba3 B+ Serbia Ba2 Baa1 BB+ p BBB– Baa2 BBB–
El Salvador Caa1 n B2 B– n AAA B2 B Seychelles – – – – B+ BB +
Estonia A1 Aaa AA– p AAA AA- AAA Singapore Aaa Aaa AAA AAA AAA AAA
Eswatini B3 B1 – – B1 – Slovakia A2 Aaa A+ AAA Aaa AAA
Ethiopia Caa2 n Caa1 CCC n CCC Caa2 B Slovenia A3 Aaa AA– AAA Aaa AAA
Fiji B1 n B1 B+ B+ B1 – Solomon Islands Caa1 B3 – – B3 –
Finland Aa1 Aaa AA+ AAA Aaa AAA South Africa Ba2 Baa2 BB– BB+ Baa2 BB
France Aa2 p Aaa AA AAA Aaa AAA South Korea Aa2 Aaa AA AAA AA– AA+
Gabon Caa1 B3 – – B3 B Spain Baa1 Aa1 An AAA Aa1 AAA
Georgia Ba2 Baa3 BB n BBB– Baa3 BBB– Sri Lanka Caa2 Caa2 CCCn CCC CC B–
Germany Aaa Aaa AAA AAA AAA AAA Suriname Caa3 n Caa2 SD CCC Caa2 CCC
Ghana B3 n B1 B– B B– n d B– d Sweden Aaa Aaa AAA AAA AAA AAA
Greece Ba3 A3 BB AAA A3 BBB+ Switzerland Aaa Aaa AAA AAA AAA AAA
Guatemala Ba1 n Baa3 BB– BB+ Baa3 BB Taiwan Aa3 p Aaa AA p AAA Aaa AAA
Honduras B1 Ba3 BB– BB – – Tajikistan B3 B3 B– B– B3 –
Hong Kong Aa3 Aaa AA+ AAA Aaa AAA Tanzania B2 B3 – – B1 –
Hungary Baa2 A1 BBB A– A1 A Thailand Baa1 A1 BBB+ A A1 A–
Iceland A2 Aa2 A A Aa2 A+ Trinidad & Tobago Ba2 Baa1 BBB– n BBB Ba1 –
India Baa3 A3 BBB– BBB+ A3 BBB– Tunisia Caa1 B3 – – B3 B
Indonesia Baa2 A3 BBB n BBB+ A3 BBB Turkey B2 n B2 B+ n BB- B2 BB–
Iraq Caa1 Caa1 B– B– Caa1 B– Turks & Caicos – – BBB+ AAA – –
Ireland A2 p Aaa AA– AAA Aaa AAA Uganda B2 Ba3 B B Ba3 B+
Israel A1 Aa3 AA– AA+ Aaa AA Ukraine B3 B2 B B B2 B
Italy Baa3 Aa3 BBB p AAA Aa3 AA UAE Aa2 Aaa – – Aaa AA+
Jamaica B2 Ba3 B+ BB– Ba3 BB- UK Aa3 Aaa AA AAA Aaa AAA
Japan A1 p Aaa A+ AA+ Aaa AAA USA Aaa Aaa AA+ AAA AAA n AAA
Jordan B1 Ba1 B+ BB Ba1 BB Uruguay Baa2 A2 BBB BB– A2 BBB+
Kazakhstan Baa2 A3 BBB– BBB A3 BBB+ Uzbekistan B1 p B1 BB– n BB– B1 BB
Kenya B2 n Ba3 B B+ Ba3 B+ Venezuela C C SD CC C –
Kuwait A1 Aa2 A+ AA– Aa2 AA+ Vietnam Ba3 p Ba2 BB n BB Ba2 BB–
Kyrgyzstan B2 n B2 – – – – Zambia Ca Caa3 SD CCC– Caa3 B–

1 Moody’s Government Bonds
2 Moody’s Country Ceilings
3 S&P Government Bonds
4 S&P Transfer and
Convertibility Assessments
5 Fitch Government Bonds
6 Fitch Country Ceilings
p Positive outlook/on watch
for upgrade
n Negative outlook/on watch
for downgrade
N New rating
W Rating withdrawn
SD Selective default
RD Rating default c Improvement in ratings,
* Taken off positive watch/ outlook or watch status
outlook d Deterioration in ratings,
** Taken off negative watch/ outlook or watch status
outlook

54 International Financing Review January 22 2022

 EMERGING MARKETS
China  Pakistan 60 South Korea 60 Czech Republic 60 Georgia 61 Romania 62 Bahrain 62 Brazil 63

„ FRONT STORY CHINA

China’s developers put trust in buybacks

Announcing repurchases publicly is intended to send a positive message to investors
Fitch analyst says buybacks are at best neutral for developers’ ratings
Chinese property developers are actively
buying back offshore bonds to try to
demonstrate they have liquidity during the
sector-wide crisis, but the small sizes are not
DOINGûMUCHûTOûRESTOREûINVESTORûCONlDENCE
In the week beginning January 17, at least
lVEûDEVELOPERSûnûCOUNTRY GARDEN HOLDINGS,
ZHONGLIANG HOLDINGS GROUP, AGILE GROUP
HOLDINGS, SUNKWAN PROPERTIES GROUP and CIFI
HOLDINGS (GROUP)ûnûMADEûVOLUNTARYû
Although developers do not usually
disclose purchase prices, they tend to be
SUBSTANTIALLYûBELOWûFACEûVALUEû3OMETIMESû
THEûMOVEûHELPSûSUPPORTûBONDûPRICES
During the week, Country Garden saw its
BONDûPRICESûREBOUNDûONû*ANUARYûû
following the company’s US$10m bond
buyback disclosure on January 17,
COMPRISINGû53MûINûPRINCIPALûOFûITSûû
NOTESûDUEû*ULYûûANDû53MûOFûITSûû
#)&)ûWHICHûHADûBOUGHTûBACKû
53MûINûPRINCIPALûAMOUNTûOFûITSûû
2022 bonds under a tender offer priced
above par earlier this month, on Wednesday
announced it had repurchased Rmb20m
53M ûOFûITSûû$IMû3UMûBONDSûDUEû
!PRILû
NEUTRAL ON RATINGS
Adrian Cheng, co-head of China property at
announcements about bond repurchases NOTESûDUEû!PRILû &ITCHûBELIEVESûBONDûBUYBACKSûAREûATûBESTû
TOTALLINGûAROUNDû53M
EQUIVALENTûINû The news allowed Country Garden’s US NEUTRALûFORûDEVELOPERSûRATINGS
principal amount on the Stock Exchange of dollar bonds to recover around six points, “In an environment where many
(ONGû+ONG about two-thirds of what they lost on developers are unable to access the capital
At a time of widespread market weakness January 17, bringing their notes back up to market for fundraising, a developer has to
and investor caution, bond repurchases THEûHIGHûSûTOûLOWûS fund these buybacks with other sources of
have become a way for issuers in the A Country Garden spokesperson said the LIQUIDITYûORûINTERNALûCASHvûHEûSAIDûh"UTûEVENû
troubled Chinese property sector to send a COMPANYûHASûSUFlCIENTûFUNDSûANDûISûINûAû if developers do buybacks, the fundamental
POSITIVEûMESSAGEûTOûTHEûMARKET STABLEûlNANCIALûPOSITIONûh4HEûCOMPANYû question remains as to whether a developer
The repurchase total was a drop in the hopes to send a positive signal to the market has the liquidity to repay maturities and
OCEANûTHOUGHûCONSIDERINGûTHEûlVEû through the repurchasing of the senior interests that are due in the next few
developers have a combined US$22bn in US NOTESûTOûENHANCEûCONlDENCEûOFûLONG
TERMû MONTHSv
dollar bonds outstanding, according to
2ElNITIVûDATA
The bonds were trading at cash prices as
low as the 60s when the repurchases were
made, allowing companies to make savings
on future repayments by buying them
INVESTORSvûSAIDûTHEûSPOKESPERSON
“The company will pay close attention to
market conditions and continue to
REPURCHASEûIFûTHEûCONDITIONûISûRIGHTv
While most bond repurchase
announcements came late at night, Agile
A report from CreditSights called the ups
and downs of the developers’ bonds “a
VICIOUSûCYCLEv
h&EARûCONTINUESûTOûGRIPûTHEû#HINAû
property sector, with continued headlines of
another liquidity crunch or developer
BELOWûFACEûVALUE
One real estate company executive said
that announcing buybacks publicly, even for
SMALLûAMOUNTSûISûhAûGOODûGESTUREvû3OMEû
companies have also disclosed that top
executives have bought bonds themselves,
which telegraphs that they have skin in the
made its disclosure during lunch hours, just
a few hours ahead of downgrades by rating
AGENCIESû)TûSOMEWHATûHELPEDûTOûMITIGATEû
the negative rating news, said market
PARTICIPANTS
!GILEûSAIDûINûITSûlLINGûTHATûITûHADûONû
*ANUARYûûREPURCHASEDû53MûINûPRINCIPALû
TUMBLINGûINTOûDISTRESSvûSAIDûTHEûREPORT
!û#HINAû$#-ûBANKERûSAIDûTHEûMARKETûISû
waiting for the government to loosen its grip
on developers’ cash, allowing them freer
ACCESSûTOûPROJECTûPROCEEDSûTOûREPAYûDEBTS
“They cannot expect even good
companies to survive if they are not allowed
GAMEûHEûSAID OFûITSûûSENIORûNOTESûDUEûONû-ARCHûû ACCESSûTOûTHEIRûOWNûCASHvûSAIDûTHEûBANKER
While investors have not always -OODYSûDOWNGRADEDû!GILESûISSUERûRATINGû The policy loosening may soon become
responded as well to these moves as the to B1 from Ba2, while S&P lowered Agile’s REALITYû/Nû*ANUARYûû2EUTERSûCITINGûFOURû
companies hoped, the executive expected
developers would continue to announce
BUYBACKS
ONE DAY BEFORE MATURITY
In many cases, companies bought back their
bonds and made their disclosures
ISSUERûRATINGûTOû"ûFROMû""nûBOTHûWITHû
negative outlooks, citing increased
RElNANCINGûRISK
Among the developers announcing bond
buybacks last week, Zhongliang, a relatively
new name compared with the other three,
HASûBEENûTHEûMOSTûAGGRESSIVEû)TûMADEûSEVENû
people with knowledge of the matter,
reported that the Chinese government is
drafting nationwide rules to make it easier
for developers to access pre-sale funds held
in escrow accounts, and said it aims to roll
out the new rules as early as the end of
*ANUARYûINûAûPUSHûTOûPREVENTûAûWIDERûCRISIS
immediately after their bond prices REPURCHASEûlLINGSûINû/CTOBERûTHREEûINû The new rules would help developers meet
SLUMPEDû-ANYûOFûTHEMûAREûALSOûBUYINGûBACKû November, two in December, and two in DEBTûOBLIGATIONSûPAYûSUPPLIERSûANDûlNANCEû
bonds just a few weeks or months before *ANUARYûSOûFAR operations by letting them use the funds in
THEûMATURITYûDATEû3UNKWANûSAIDûONû&RIDAYûITû )NûITSûLATESTûlLINGûDATEDû*ANUARYûû escrow that are currently controlled by the
had repurchased US$6m in principal of its Zhongliang said it had bought a further municipal governments with no central
û*ANUARYûûûBONDSûJUSTûONEûDAYû 53MûINûPRINCIPALûOFûITSûûNOTESû OVERSIGHTûACCORDINGûTOû2EUTERS
BEFOREûMATURITY MATURINGûONû*ANUARYûû Morgan Davis, Carol Chan

International Financing Review January 22 2022 55

 PLACEMENTû4HEûBONDSûWEREûPLACEDûWITHûAû property sector on the back of news about
BANKûTHATûHASûAûCREDITûLINEûWITHûTHEûCOMPANYû potential easing of funds held in escrow
ASIA-PACIFIC As the latest deal was larger, the developer
OPTEDûFORûAûBOOKBUILTûPUBLICûOFFERING
Credit Suisse, China Zheshang Bank Hong Kong
CHINA branch and HSBCûWEREûGLOBALûCOORDINATORSû
They were also lead managers and
GREENTOWN CHINA GETS SOME HELP bookrunners with Industrial Bank Hong Kong
branch, Guotai Junan International, China
ACCOUNTSvû#REDIT3IGHTSûWROTEûINûAûNOTE
CHINA WATER SELLS RARE
HIGH-YIELD BONDS
CHINA WATER AFFAIRS GROUPûPAIDûAûSIGNIlCANTû
PREMIUMûTOûRAISEû53MûFROMûAûTAPûOFûITSû
Property de veloper GREENTOWN CHINA
HOLDINGS revisited the US dollar bond market
less than two months after its last issuance,
THISûTIMEûRELYINGûFORûTHEûlRSTûTIMEûONûTHEû
support of a standby letter of credit from a
#HINESEûBANK
SBLCs are widely used by non-rated
#HINESEûLOCALûGOVERNMENTûlNANCINGû
OPINIONûPROVIDER But China Water was able to return to the
vehicles with relatively weak credit
fundamentals to issue offshore bonds, but
they are less common for property
developers, although some have used them
Construction Bank (Asia), Shanghai Pudong
Development Bank Hong Kong branch, China
Minsheng Banking Corp Hong Kong branch and
China International Capital Corp
Credit Suisse and HSBC were also green
structuring banks while China Zheshang
"ANKû(ONGû+ONGûBRANCHûWASûRATINGûADVISERû
6IGEOû%IRISûWASûSECOND
The presence of foreign bookrunners did
NOTûHELPûTOûDRAWûMANYûMARKETûORDERSû
Buyers were mainly Chinese banks and
orders were not particularly strong given
ûûGREENûBONDSûONû7EDNESDAYûASû
investors treat the Chinese high-yield
MARKETûWITHûCAUTION
US dollar high-yield issuance from China
ground to a halt in the last few months, as
the sector grappled with property
DEVELOPERSûSTRUGGLEûTOûMAKEûDEBTûPAYMENTSû
market with a tap last week, following
reverse inquiries that allowed for anchor
ORDERS
The borrower, which is rated Ba1/BB+
BEFOREûSUCHûASû&UJIANû9ANGOû'ROUPûANDû THEûLOWûYIELD -OODYS30 ûSOLDûTHEûORIGINALû53Mû
8INHUû:HONGBAO “Regular investors in Greentown’s bonds TRADEûINû-AYû4HEûNEWûNOTESûBRINGûTHEûTOTALû
Hong Kong-listed Greentown on Thursday won’t buy at such a yield level,” said the DEALûSIZEûTOû53M
PRICEDûAû53MûTHREE
YEARûCREDIT
BANKER )TûREOPENEDûTHEûSENIORûDEALûATûlNALûPRICEû
enhanced green bond issue at par to yield &INALûSTATISTICSûWEREûNOTûAVAILABLEûBUTû GUIDANCEûOFûûWHEREûITûWASûPRICEDû4HATûISû
ûSLIGHTLYûTIGHTERûTHANûINITIALûPRICEû ORDERSûWEREûSAIDûTOûBEûOVERû53MûWHENû ANûIMPLIEDûYIELDûOFû
GUIDANCEûOFûûAREAû lNALûGUIDANCEûWASûANNOUNCEDûINCLUDINGû “We were contemplating if we should do
The Reg S issue is backed by an 53MûFROMûTHEûLEADS INITIALûPRICEûGUIDANCEûORûlNALûPRICEûGUIDANCEû
irrevocable SBLC from CHINA ZHESHANG BANK 'REENTOWNûISû
OWNEDûBYûSTATE
but given the market now, going straight to
HANGZHOU BRANCHûWHICHûISûRATEDû"AA"""nû
-OODYS30 
4HEûSENIORûGREENûBONDSûWILLûBEûRATEDû"""nû
BYû30
A banker on the deal said Greentown has
AûCREDITûLINEûFROMû#HINAû:HESHANGû"ANKû
Because of the weak market backdrop, it
chose to use an SBLC-backed issue to tap its
EXISTINGûOFFSHOREûISSUANCEûQUOTA
owned China Communications
#ONSTRUCTIONû'ROUPû0ROCEEDSûWILLûBEûUSEDû
FORûDEBTûRElNANCINGûINûACCORDANCEûWITHûTHEû
COMPANYSûGREENûlNANCINGûFRAMEWORK
The banker does not think SBLCs will
become common in the property sector,
saying: “Greentown’s SOE shareholder
background helped it to secure support
FROMû#HINESEûBANKSû&ORûPRIVATELYûOWNEDû
&0'ûWITHûAûPREMIUMûTOûSECONDARIESûWOULDû
be a bit more seamless,” said a banker on the
TRADE
The existing bonds had been trading
AROUNDûûONûTHEûBIDûSIDEûh0REMIUMSûATû
this time are inching higher,” said the
BANKER
China Water had contemplated a
transaction at the end of 2021, given that it
“If the market situation was not so bad DEVELOPERSûITûWILLûBEûVERYûDIFlCULTûINûTHEû has offshore issuance approval that will
and it could issue ordinary bonds at a CURRENTûMARKETv EXPIREûSOONû4HEûMARKETûWASûNOTûREADYûFORû
reasonable cost, it may not have used the 2ESEARCHûlRMû#REDIT3IGHTSûBELIEVESûTHEû the deal before, so the issuer decided to wait
3",#ûFORMATvûSAIDûTHEûBANKER 3",#ûHELPEDû'REENTOWNûGARNERûSUFlCIENTû for mandates and investor cash to reset in
'REENTOWNûRATEDû"A""nû-OODYS30 ûINû INVESTORûINTEREST the new year before trying again, said the
$ECEMBERûISSUEDû53MûOFûTHREE
YEARûNON
“The timing of the deal also takes BANKER
CALLûTWOûNOTESûATûPARûTOûYIELDûûVIAûPRIVATEû ADVANTAGEûOFûTHEûSIGNIlCANTûREBOUNDûINûTHEû $EALûSTATISTICSûANDûTHEûlNALûORDERûBOOKû
SIZEûWEREûNOTûMADEûPUBLIC
ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS The senior notes will be guaranteed by
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE THEûISSUERSûOFFSHOREûSUBSIDIARIESû4HEYûWILLû
Asia-Pacific Managing No of Total Share BEûRATEDûINûLINEûWITHûTHEûISSUER
Managing No of Total Share bank or group issues US$(m) (%) The proceeds will be used to repay the
bank or group issues US$(m) (%) company’s 2017 bonds and other debt, as
1 Citigroup 23 6,153.25 11.0
1 HSBC 18 2,916.39 9.1 WELLûASûFORûWORKINGûCAPITALû!NûAMOUNTû
2 JP Morgan 18 4,688.93 8.4
2 Citigroup 14 2,571.43 8.1 EQUALûTOûTHEûNETûPROCEEDSûWILLûlNANCEûORû
3 BNP Paribas 17 4,158.23 7.4
3 BNP Paribas 11 2,203.88 6.9 RElNANCEûGREENûPROJECTSûPARTICULARLYûWATERû
4 Barclays 12 3,595.04 6.4
4 JP Morgan 10 2,081.79 6.5 SUPPLYûPROJECTSû4HEûBORROWERûSUPPLIESû
5 HSBC 20 3,156.35 5.6
5 Standard Chartered 17 1,754.03 5.5
6 Bank of America 13 3,001.26 5.3
water and provides waste-water treatment
6 Mizuho 11 1,369.45 4.3
7 Goldman Sachs 8 2,565.38 4.6
SERVICESûINû#HINA
7 MUFG 6 1,052.70 3.3
8 Deutsche Bank 9 2,361.73 4.2
Morgan Stanley, Barclays, BoCom
8 Barclays 8 1,023.98 3.2
9 Standard Chartered 17 1,754.03 3.1 International, China Citic Bank International,
9 DBS Group 11 1,006.60 3.2
10 Mizuho 12 1,741.93 3.1 Huatai International, HSBC, Mizuho, Nomura,
10 Bank of America 6 920.36 2.9
Total 70 56,151.10 Shanghai Pudong Development Bank Hong Kong
Total 50 31,902.13 branch, Standard Chartered and UBS are the
Excluding equity-related debt.
Excluding equity-related debt. GLOBALûCOORDINATORSûANZ was added as a
Source: Refinitiv SDC code: L4 Source: Refinitiv SDC code: L1 GLOBALûCOORDINATORûDURINGûTHEûDAY

56 International Financing Review January 22 2022


AOYUAN DEFAULTS ON TWO BONDS
CHINA AOYUAN GROUP said it will not make
payments on two US dollar senior bond
issues due to mature in January in order to
preserve its limited cash resources and
“maintain fairness” among its creditors
pending a comprehensive debt
RESTRUCTURING
4HEûTWOûBONDûISSUESûAREûTHEûûNOTESûDUEû
*ANUARYûûANDûûNOTESûDUEû*ANUARYûû
The Chinese property developer will also
SKIPûTHEûLATESTûCOUPONSûONûITSûûNOTESû
DUEû*UNEûûANDûûNOTESûDUEû*UNEû
ûUPONûEXPIRYûOFûTHEû
DAYûGRACEûPERIOD as Chinese issuance slows.
The four bonds have an aggregate
outstanding principal amount of about
53BN
!OYUANûSAIDûINûAûLATEû7EDNESDAYûlLINGû
that it intends to adopt the same principle
INûRESPECTûOFûITSûOTHERûOFFSHOREûlNANCIALû
DEBTû
The default was widely expected after the
developer on December 2 disclosed that it
was unable to make an immediate
REPAYMENTûOFû53MûTHATûCREDITORSû
demanded, and that such non-payments
may trigger the possible acceleration of
repayment by creditors of some of its other
OFFSHOREûlNANCINGûARRANGEMENTSû
Aoyuan in November hired Admiralty
Harbour CapitalûASûlNANCIALûADVISERûANDû
Linklaters as legal adviser to assess its capital
ANDûlNANCIALûSITUATIONûANDûTOûENGAGEûWITHû
OFFSHOREûCREDITORS
India sets record pace offshore
„ INDIA Limited size and liquidity in rupee market drive issuers to international market
India has set a record-breaking pace for US
dollar bond issuance as it draws increased
attention from investors wary of volatile Chinese
credits.
The country’s corporates are tapping the
offshore market, since it offers size and tenors
they cannot achieve onshore, while international
investors are turning to Indian high-yield paper
to refinance bonds or loans.
Indian US dollar bond supply has already
reached nearly US$6bn this year, fuelled by
popular trades from Reliance Industries, ReNew
Power, Indian Railway Finance Corp, JSW
Infrastructure and Shriram Transport Finance.
“If the early trend of January continues, it is
possible that dollar bond transactions out of
India could touch circa US$10bn this quarter
itself,” said Chetan Joshi, head of debt financing
at HSBC India.
That would put issuance on course to beat
the annual record of US$21.1bn set in 2019,
according to Refinitiv data.
Ganeshan Murugaiyan, head of corporate
coverage and advisory at BNP Paribas India,
estimates that India will post record issuance
in this year of more than US$22bn, while Love
Sharma, head of India and Middle East credit at
Lombard Odier Investment Managers, forecasts
US$25bn.
EMERGING MARKETS ASIA-PACIFIC
“We want to keep the offshore funding
route active and ensure that 20% of [our]
total liability of Rs1trn (US$13.5bn) is from the
offshore market because the domestic market
can get cold any time,” said CEO Umesh
Revankar.
Many companies in capital-intensive
industries are expected to raise offshore funds
“Indian corporates from the renewable and
infrastructure sectors will continue to explore
the dollar bond/loan route for projects which
are fully operational and have shown collection
of cash, as it allows them to free up domestic
bank lines for expansion and growth,” said
Girish Madan, director at Fitch.
More relaxed rules on offshore borrowing
could also spur issuance.
On December 8, the Reserve Bank of India
raised the all-in cost ceiling on foreign currency
external commercial borrowings to 500bp over
the benchmark rate, from 450bp previously.
“This could be marginally positive for issuers
to raise offshore funds; though we need to
monitor how the transition from Libor to
alternative reference rate pans out,” Madan at
Fitch said.
FILLING THE GAP
)NûITSûLATESTûlLINGû!OYUANûSAIDûITûHASû
ENGAGEDûANûINDEPENDENTûlNANCIALûADVISERûTOû
conduct extensive due diligence of its
operations in order to assess its current
LIQUIDITYûANDûCASHmOWûPOSITIONû4HEû
overarching purpose of the assessment and
due diligence work is to provide “the basis for
formulating an optimal restructuring
proposal that aims to treat all creditors and
other stakeholders fairly according to their
POSITIONûINûTHEûCAPITALûSTRUCTUREûOFûTHEûGROUPv
The developer said a majority of its
property projects have remained on
schedule despite its liquidity problems, and
it will continue to focus on completing and
delivering projects and reducing its
OPERATIONALûEXPENSES
The company said it has been in
preliminary discussions with potential
strategic investors and purchasers, but no
LEGALLYûBINDINGûAGREEMENTûHASûBEENûMADEû)Tû
will also continue to actively explore
POTENTIALûOPPORTUNITIESûFORûASSETûDISPOSAL
SUNAC GETS ANOTHER DOWNGRADE
Chinese property developer SUNAC CHINA
HOLDINGS WASûDOWNGRADEDûONû&RIDAYûFORûTHEû
second time in a week amid an industry
DOWNTURN
VEDANTA RESOURCES, KALYAN JEWELLERS INDIA,
JINDAL STEEL AND POWER, ADANI GREEN ENERGY and
MUMBAI INTERNATIONAL AIRPORT are all mulling
US dollar bond offerings, according to DCM
bankers.
The transactions from Kalyan Jewellers,
Mumbai International Airport and Jindal
Steel and Power will be debut deals. Kalyan
Jewellers is eyeing a five-year bond issue of up
to US$200m, with Credit Suisse rumoured to be
involved.
“Most of the companies which have raised
bonds have done so at historic tight spreads,
whether versus US Treasuries or absolute yields,
and this includes both investment-grade and
high-yield issuers,” said HSBC’s Joshi.
Conglomerate Reliance Industries printed this
month’s deal at the lowest-ever 10-year spread
and 30-year coupon from an Indian company.
The US$1.75bn 3.625% 30-year piece was priced
at 98.612 to yield 3.702% and the US$1.5bn
2.875% 10-year at 99.758 to yield 2.903%, or
120bp over Treasuries.
Double B rated commercial vehicle financier
Shriram Transport Finance paid a 4.15% yield
for a US$475m 3.5-year bond issue, its tightest
pricing in the offshore market.
STF noted that it tapped the offshore market
for size, as well as to diversify its funding sources.
International Financing Review January 22 2022
While Indian offshore issues across the credit
spectrum are expected to find support, DCM
bankers said that high-yield bonds from
the country are filling the gap left by the
tumultuous China property sector.
“China real estate made up half of the APAC
issuance before the market disruption last
year, but with all the overhang which came
with property developers, volumes have come
down,” said BNP Paribas’ Murugaiyan. “There
has been a sector change, and as a result, there
will be a fund allocation which gets shifted,
although India comprises a miniscule part of
APAC issuance.”
China accounted for just over 50% of Asian
high-yield issuance last year, while India was
next with around 15%.
Sharma at Lombard Odier estimates that
India’s share could rise to 20%–25% in the next
three to five years, due partly to a decline in
Chinese supply.
“The only market where we can expect
decent growth in supply is India HY as it stands
out in terms of decent quality credits with good
ratings, disclosures, favourable sector outlooks,
and mostly predictable policy regime. This
allows investors to take a view on these credits
based on fundamentals,” said Sharma.
Krishna Merchant
57
GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 21/1/2022
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

ASIA
Jan 18 2022 Shaoxing City Investment Rmb1bn Jan 21 2027 3.65 100 - 3.65
Group
Jan 17 2022 Maxi-Cash Financial Services S$60m Jan 24 2025 6.05 100 - 6.05
Jan 18 2022 Housing and Development S$950m Jan 25 2029 1.971 100 - 1.971
Board
Jan 14 2022 Chengdu Jingkai Guotou US$200m incr Dec 7 2024 5.3 99.73 - 5.4
Investment Group Co (US$500m)

Jan 14 2022 Golden Dragon Mountain US$105m Jan 20 2023 3.8 100 - 3.8
Trading BVI Co
Jan 14 2022 Korean Air Lines ¥30bn Jan 21 2025 0.45 100 - 0.45
Jan 14 2022 Taixing Zhiguang US$100m Jan 19 2023 1.95 100 - 1.95
Environmental Protection
Jan 14 2022 Zhongchuang HK US$80m Jan 21 2025 2.1 100 - 2.1
Technology Co
Jan 17 2022 Luheng International Co US$42m Jan 20 2025 3 100 - 3

Jan 18 2022 Caofeidian State Holding US$100m Dec 25 2024 2.1 100 - 2.1
Investment Group Co

Jan 18 2022 Dongtai Communication US$65m Jul 20 2022 5.8 100 - 5.8

Jan 18 2022 Huzhou City Investment US$300m Jan 25 2025 2.85 100 - 2.85
Development Group

Jan 18 2022 Hyundai Capital Services US$400m Apr 24 2025 2.125 99.739 T+87 2.209

Jan 18 2022 Hyundai Capital Services US$300m Jan 24 2027 2.5 99.543 T+97 2.598

Jan 18 2022 Jiaozuo Investment Group US$100m Jan 20 2023 5.5 100 - 5.5

Jan 18 2022 Xin Yue Co US$500m Jan 25 2027 2.358 100 T+75 2.358

Jan 19 2022 China Water Affairs Group US$150m incr May 18 2026 4.85 97 - -
(US$350m)

Jan 19 2022 Henan Railway Investment US$400m Jan 26 2025 2.2 100 Yld+2.2 % 2.2
Co

Jan 19 2022 Huzhou Moganshan High- US$210m Jan 24 2025 3.4 100 - 3.4
tech Group Co
Jan 19 2022 Jiangsu Gaokai Investment US$100m Jan 24 2025 2.1 100 - 2.1
Development Group Co
Jan 19 2022 Quzhou Communications US$200m Perpetual 2.5 100 - 2.5
Investment Group Co

Jan 20 2022 Greentown China Holdings US$400m Jan 27 2025 2.3 100 - 2.3

Jan 20 2022 Huzhou Nanxun New Town US$28.6m Jan 24 2025 2.25 100 Yld+2.25 2.25
Investment Development
Group Co
Jan 20 2022 Huzhou Nanxun Tourism US$48m Jan 25 2025 2.15 100 - 2.15
Investment Development
Group Co

Jan 20 2022 ICBC Financial Leasing US$700m Jan 27 2025 2.125 99.706 T+90 2.227

Jan 20 2022 ICBC Financial Leasing US$500m Jan 27 2027 2.7 99.722 T+115 2.76

58 International Financing Review January 22 2022

 EMERGING MARKETS ASIA-PACIFIC

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

4% area, 3.65% - - - CISI/Guosen -

6.05% yld - - - DBS/CIMB -

1.971% yld - - -/-/AAA DBS/HSBC/OCBC /StCh/UOB -

5.8% area, 5.4% - - Ba2/-/- Haitong Intl/HaitongBk/BOSC/ -

CNCBI/CMBC Cap/Essence/
Guoyuan/Soochow/CEB Intl
4.3% area, 3.8% - - - CICC/Tensant -

0.45% cpn - - Aa2/-/-/R&I:AA- Daiwa/Miz/Nomura -

1.95% yld - - - Zhongtai/Zheshang/Dingxin/ -
Donghai
2.1% area, 2.1% - - - HungSing/CISI/Dingxin/Haitong Intl/ -
Southwest/CLSA/Everbright Sec
3% yld - - - Fosun Hani/Zheshang/Wilson/ -
Harmonia Capital/Dongxing
2.2% area, 2.1% - - - CEB Intl/STF Investment/Tensant/ -
Zheshang/CMBI/Luso/Industrial/
Silk Road
5.8% yld - - - AMC Wanhai/CISI/Huatai/Shenwan -
Hongyuan/Haitong Intl
3.3% area, 2.85% - - -/-/BBB BoC/CCBI/CICC/Industrial/Everbright -
HK/CLSA/CNCB Capital /Haitong
Intl/Orient/StCh/BOCOMI
T+110 area, T+87 1 US$1.1bn, 67acs NR/BBB+/BBB+ BNPP/CA-CIB/JPM/MUFG/SMBC APAC 20%, EMEA 23%, N.Amer 57%.
the # AM/FM 69%, Corp 10%, Ins/PF 10%, PB
6%, Other 5%.
T+125 area, T+97 1 US$900m, 76acs NR/BBB+/BBB+ BNPP/CA-CIB/JPM/MUFG/SMBC APAC 40%, EMEA 13%, N.Amer 47%.
the # AM/FM 51%, Corp/CB/OI 17%, Ins/PF
15%, Bks 11%, Other 6%.
5.5% area, 5.5% - - - Guotai Junan/Shenwan Hongyuan/ -
CNCB Capital /Central China/
Guoyuan
T+120 area, T+75 - US$2.35bn NR/NR/A+ BoC/GF Sec/CICC/ABCI/Guotai -
Junan/CNCBI/CLSA/StCh/Haitong
Intl/ABCHK/BoCom/CCBA/
EverbrightHK/WingLung/ENBD/
Industrial/ICBCI/Luso/OCBC
97.00 px - - Ba1/BB+/- MS/Barc/BOCOMI/CNCBI/Huatai/ -
HSBC/Miz/Nomura/SPDB/StCh/
UBS/ANZ/CTBC
2.45% area, 2.2% - US$1.65bn A2/-/- Guotai Junan/DBS/BOCOMI/CNCBI/ -
the # EverbrightHK/CISI/CMBCHK/
CSI/Zheshang/CLSA/CMBC Cap/
WingLung/Haitong Intl/HSBC/Hua
Xia/ICBCI/Industrial/ABCI/CICC/
StCh/Zhongtai/CNCB Capital
3.4% cpn - - - Haitong Intl/CICC/Industrial/CSI/ -
Huatai/Hua Xia/BOSC/Dongxing
2.1% cpn - - - Guotai Junan/Haitong Intl/ -
WingLung/CISI
2.9% area, 2.5% - - -/-/BBB- Central/CNCBI/ABCI/CICC/BOSC/ -
BoC/OCBC/Industrial/BOCOMI/
WingLung/ICBCI/Haitong Intl/CMBI/
Huatai
2.4% area, 2.3% - - NR/BBB-/- CS/Zheshang/HSBC/Industrial/ -
Guotai Junan/CCBA/SPDB/
CMBCHK/CICC
2.25%(#) - - - Interarch/Haitong Intl/Zheshang/ -
Industrial

2.25% area, 2.15% - - - Central/Industrial/CLSA/CISI/ -

SunRiver International/CNCB
Capital/CSI/Guoyuan/CMBC Cap/
Zheshang
T+120 area, T+90 - US$1.4bn, 56acs A2/NR/A ICBC/ABChina/ANZ/BoC/BoCom/ Asia 95%, EMEA 5%. Bks/FI 70%, AM/
BNPP/BofA/Citi/CMBI/HSBC/JPM/ FM 19%, CB/PF/PB 11%.
Miz/MUMSS/CCBI/DBS/Industrial
T+145 area, T+115 - US$1.1bn, 71acs A2/NR/A ICBC/ABChina/ANZ/BoC/BoCom/ Asia 99%, EMEA 1%. Bks/FI 73%, AM/
BNPP/BofA/Citi/CMBI/HSBC/JPM/ FM 17%, Ins/PF/PB 10%.
Miz/MUMSS/CCBI/DBS/Industrial

International Financing Review January 22 2022 59

GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 21/1/2022 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Jan 20 2022 Rugao Fugang Engineering US$50m Jan 25 2025 2.1 100 - 2.1
Construction Co
Jan 20 2022 Rugao Fugang Engineering US$50m Jan 25 2025 2.1 100 - 2.1
Construction Co
Jan 20 2022 Rugao Fugang Engineering US$100m Jan 25 2025 2.1 100 - 2.1
Construction Co
Jan 20 2022 Shenwan Hongyuan HK US$200m Jan 26 2023 1.5 100 - 1.5

Jan 20 2022 Shinhan Card US$400m Jan 27 2027 2.5 99.65 T+95 2.575
EMEA
Jan 19 2022 Government of Romania US$1.35bn Feb 27 2027 3 99.391 T+150 3.13
Jan 19 2022 Government of Romania US$1.06008bn Mar 27 2032 3.625 99.37 T+185 3.699
Jan 19 2022 Silknet US$300m Jan 31 2027 (Jan 2026) 8.375 100 T+676.5 8.375

Jan 20 2022 Nova KBM €300m Jan 27 2025 (Jan 2024) 1.875 99.92 MS+215 1.916

LATAM
Jan 14 2022 Mercury Chile Holdco US$360m Jan 24 2027 6.5 100 - 6.5
Jan 18 2022 CAF SFr350m Feb 24 2027 0.45 100.235 Saron MS+47 0.402

Jan 19 2022 JBS USA Lux US$600m Feb 2 2029 3 98.366 T+145 3.263

Jan 19 2022 JBS USA Lux US$900m Feb 2 2052 4.375 99.967 T+220 4.377

Jan 20 2022 Central American Bottling US$1.1bn Apr 27 2029 5.25 99.266 - 5.375
Corp

Jan 20 2022 Paraguay US$500.6m Jun 28 2033 3.849 99.994 - 3.85

S&P lowered the developer’s issuer (ANWHAû,IFEû!! ûMAYûMARKETû YEARû

RATINGûTOû""nûFROMû""ûANDûITSûOUTSTANDINGû PAKISTAN NON
CALLûlVEû!2EGû3ûNOTESûTOûBEûRATEDû
SENIORûUNSECUREDûNOTESûTOû"ûFROMû""nû
4HEûOUTLOOKûISûNEGATIVE
“Pressure on Sunac’s liquidity is
accumulating because of the company’s
weakening capital market access and
restrictive regulatory conditions,” the
RATINGSûAGENCYûSAID
It said Sunac will need to partly rely on
asset disposals over the next six months to
help manage its sizeable short-term debt
MATURITIES
"AA!nû-OODYS30 ûAFTERûINVESTORûCALLSû
SOVEREIGN PLANS SUKUK OFFERING AREûCOMPLETED
The ISLAMIC REPUBLIC OF PAKISTAN held investor
calls last week for a proposed US dollar
benchmark seven-year sukuk offering off its
GLOBALûSUKUKûPROGRAMME EUROPE/AFRICA
Credit Suisse, Deutsche Bank, Dubai Islamic Bank
and Standard Chartered are lead managers and
BOOKRUNNERSûONûTHEû!2EGû3ûDEAL CZECH REPUBLIC
In July last year, the sovereign, rated B3/
The developer needs to tackle "n"nûREOPENEDûTHREEûTRANCHESûOFûTHEû53û ENERGO-PRO SWITCHES EUROS
2MBBNn2MBBNû53BNnBN û DOLLARû!2EGû3ûSENIORûUNSECUREDûBONDSûITû FOR DOLLARS
of onshore and offshore bond maturities PRICEDûONû-ARCHûûRAISINGûANûADDITIONALû
THISûYEARûACCORDINGûTOû30
4HEûDOWNGRADEûCAMEûAFTERû&ITCHûONû
Wednesday cut Sunac’s issuer rating to
""nûFROMû""ûANDûITSûSENIORûUNSECUREDû
NOTESûTOû"ûFROMû""nû4HEûOUTLOOKûISû
YEARûNON
CALLûTWOûBENCHMARKûNEWû
NEGATIVE
&ITCHûSAIDûTHEûNEGATIVEûOUTLOOKû
AND
ALLûOFûITSûõMûOFûûSû
REmECTSûUNCERTAINTYûOVERûTHEûAVAILABILITYû
of restricted cash in escrow accounts
to service parent-level debt and the
US$1bn and bringing the total outstanding
TOû53BNû
SOUTH KOREA
HANWHA LIFE PLANS SUSTAINABLE TIER 2
HANWHA LIFE INSURANCE held investor calls in
Asia, Europe and the US starting January 20
ENERGO-PRO, a Czech-headquartered
electricity distributor and hydropower
producer in the Black Sea region, is
PREPARINGûAû53ûDOLLARûBONDûOFFERING
4HEûlVE
issue is being made alongside an offer to buy
BACKûANY
4HEûTENDERûOFFERûEXPIRESûONû*ANUARYû
4HEûISSUERûISûRATEDû"ûBYû30ûANDû""nûBYû
&ITCHû30ûSAYSûTHATûTHEûISSUANCEûWILLû
stability of the company’s sales, which for a potential US dollar subordinated IMPROVEû%0SûDEBTûMATURITYûPROlLEû
may further weaken its business and SUSTAINABILITYû4IERûûBONDûOFFERING ALTHOUGHûITûCOULDûMEANûHIGHERûlNANCEû
lNANCIALûPROlLES
-OODYSûONû/CTOBERûûAFlRMEDû3UNACSû
issuer rating at Ba3 and senior bond rating
at B1 but changed the outlook to stable
0ROSûLASTûDEALûCAMEûINûûWITHûAû
FROMûPOSITIVE
YEARûNON
CALLûTHREEûISSUE
JP Morgan is sole global coordinator as well EXPENSESûWHICHûWILLûBEûREmECTEDûINûTHEû
as bookrunner and lead manager with Bank company’s funds from operations from
of America, Citigroup and Standard Charteredû 
Hanwha Investment & Securities is also joint %NERGO
LEADûMANAGER õMûûSIX

60 International Financing Review January 22 2022

 EMERGING MARKETS EUROPE/AFRICA

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

2.1% (#) - - - Guotai Junan/Haitong Intl -

2.1% (#) - - - Guotai Junan/Zheshang/Industrial -

2.1% (#) - - - Guotai Junan/Haitong Intl/WingLung -

1.9% area, 1.5% - - - Shenwan Hongyuan/WingLung/ -

Industrial/SPDB/CISI/CCBA/CICC/
CMSHK/CCBI/CMBI/CEB Intl/Central
China/Galaxy Sec
T+125 area, T+95 - - A2/-/- BNPP/Citi/CA-CIB/MUFG/StCh -

T+160 area, T+150 - - Baa3/BBB-/BBB- Citi/Erste/HSBC/ING/JPM/SG -

T+195 area, T+185 - - Baa3/BBB-/BBB- Citi/Erste/HSBC/ING/JPM/SG -
8.5% area, 8.375%, - US$480m B1/NR/B JPM/UBS/TBC -
T+676.5
MS+225 area, - €500m Ba1/NR/BBB- GS/BNPP/JPM/Uni -
MS+220 area (+/-5
WPIR), MS+215

- - - - GS -
Saron MS+47/+52, -3 - Aa3/A+/A+/ CS/DB Switz 100%. AM 77.96%, Ins 20.39%, PF
Saron MS+47 Sustainalytics:2PO 1.12%, Retail/PB 0.54%.
T+170 area, T+145 - US$2.5bn Baa3/BB+/BBB- Barc/BMO/Miz/RBC -
(the #)
T+235 area, T+220 - US$2.4bn Baa3/BB+/BBB- Barc/BMO/Miz/RBC -
(the #)
Mid/High 5%, 5.5% - - Ba2/BB+/- Citi/JPM -
area (+/- 12.5),
5.375%
Low 4%s , 3.85% - - Ba1/BB/BB+ GS/Citi -

Citigroup, Goldman Sachs and JP Morgan are 4HEûlNALûBOOKûWASûJUSTû53MûWHILEûAû Some support came through the tender,
THEûBOOKRUNNERSûFORûTHEûNEWûOFFERING PRICEûOFûûWASûHIGHERûTHANûITûWOULDû while the fact the deal was open to onshore
have been had the deal come right at the 53ûINVESTORSûWASûALSOûHELPFULû53ûINVESTORSû
STARTûOFûTHEûYEARû3TILLûTHEûlNALûYIELDûWASû have historically liked Georgian credit and
GEORGIA INSIDEûTHEûûAREAûSTARTINGûPOINTû4HEû THISûWASû3ILKNETSûlRSTûBONDûTOûBEûINû!û
deal’s timing was dictated by a related FORMATû4HEûCREDITûITSELFûTHOUGHûWASûNOTû
REGIONAL TENSIONS MAKE LIFE TENDERûOFFERûFORû3ILKNETSûû!PRILûSû the main debating point; it was what the
TOUGH FOR SILKNET leaving management and the leads exposed CORRECTûPRICEûSHOULDûBEûRELATIVEûTOûTHEûRISKS
to the whims of the market for 10 calendar 3ILKNETû""û-OODYS&ITCH ûITSELFûBOUGHTû
Georgian telecoms company SILKNET issued days until the early deadline on the offer 53MûOFûTHEûBONDSûSOûLEADSûONLYûNEEDEDû
Aû53MûlVE YEARûNON CALLûTWOûBONDûONû HADûPASSED TOûPLACEû53MûINTOûTHEûMARKETûh4HEYû
7EDNESDAYûTHOUGHûTHEûPRICINGûREmECTEDû “We knew we were exposing ourselves to wanted a notional size of US$300m to make
the geopolitical and market hurdles the MOREûMARKETûRISKûBECAUSEûOFûTHEû,-ûBUTû ITû#%-") ELIGIBLEûBUTûTHEYûDIDNTûNEEDûTHATû
company had to overcome to get the deal there was not much we could do about it,” MUCHûlNANCINGvûSAIDûTHEûBANKER
DONE SAIDûTHEûBANKERûh7EûWEREûHAPPYûTOûlNDûAû There is a 12-month lock-up on the
With Russian troops massing near WINDOWû;ONû7EDNESDAY=û!LLûTHINGSû purchase, while investors are protected by a
5KRAINESûBORDERûANDûlNANCIALûMARKETSû CONSIDEREDûITûWENTûVERYûWELLû)TûWASûAûVERYû covenant to keep Silknet’s net debt to Ebitda
also wary of an imminent rate hike HIGH QUALITYûBOOKv ATûNOûHIGHERûTHANûXû!FTERûADJUSTINGûFORû
BYûTHEû53û&EDERALû2ESERVEûINTERESTûINû Pricing strategy was complicated not just THEûBONDûSALEû3ILKNETûWILLûBEûXûLEVERED
riskier credits in that part of the world by the external risks but also the lack of any The biggest credit risk for investors is the
ISûFALLING DIRECTûCOMPARABLESû3ILKNETSûOUTSTANDINGû COMPANYSû&8ûEXPOSUREû)TSûREVENUESûAREûINûLARIû
While Georgia itself is not a part of the bond was no use as a reference point, so so any depreciation in the currency against the
tensions building in the region, investors investors considered other Georgian credits, US dollar is a risk, especially as hedging is very
with positions in Russia and Ukraine are SUCHûASû'EORGIAû#APITALû"EYONDûTHATû EXPENSIVEû/NEûQUIRKûTHATûINVESTORSûNEEDEDûTOû
increasingly wary of adding more risk that accounts also looked at other similarly rated consider is that the lari’s performance can be
could be vulnerable in a broader sell-off if telecoms companies in Latin America, as directly linked to the lira’s given the strong
the situation between the two CIS nations well as corporates in Ukraine such as Kernel TRADEûTIESûBETWEENû'EORGIAûANDû4URKEY
ESCALATESûFURTHER ANDû6ODAFONEû5KRAINEûTOûFACTORûINûOUTLIERS 4HEûBONDSûWEREûBIDûATûûAFTERûTHEYû
“Even though the Georgian sector hasn’t &EEDBACKûRANGEDûFROMûAûYIELDûINûTHEûSûTOû WEREûFREEûTOûTRADEû!SûFORûTHEûTENDERûJUSTû
moved much, the fact that everything else SûANDûSûh4RYINGûTOûNARROWûTHEûlELDûWASû UNDERûûOFûHOLDERSûINûAGGREGATEûPRINCIPALû
is moving in the wrong direction hurt ANûISSUEû7HATûHANDLEûDOûYOUûNEEDûTOû OFûTHEûSûWHICHûAREûUPûFORûAûCALLûINûAûFEWû
them,” said a banker about the impact of capture enough investors to get the deal MONTHSûPUTûFORWARDûTHEIRûBONDS
THEûBROADERûREGIONALûRISKSûONûTHEûDEAL DONEvûSAIDûTHEûBANKER JP Morgan and UBSûWEREûTHEûBOOKRUNNERS

International Financing Review January 22 2022 61

 PRICEDûBPûINSIDEûTHEIRûSTARTINGûLEVELSû

Investors unsure how to #OMBINEDûBOOKSûWEREû53BNû

EXCLUDINGûSWITCHES
While investors have cash to deploy and

price Russia-Ukraine risk an investment-grade sovereign in the US

DOLLARûMARKETûISûASûVANILLAûASûITûGETSûINû%-û
THEREûWASûSTILLûAûDEGREEûOFûCAUTIONû4HEû
„ CIS Investors try to calculate the risks and opportunities of growing PROSPECTûOFûAûRATEûHIKEûINû-ARCHûBYûTHEû
tensions between the two nations &EDERALû2ESERVEûISûNOWûBAKEDûINûBUTûWITHû
SOMEûPROMINENTûINVESTORSûCALLINGûFORûAûBPû
With US Secretary of State Antony Blinken central bank made soothing “all under control” RISEûRATESûMARKETSûHAVEûBEENûINûJITTERYûFORM
attempting to find a diplomatic solution to the comments. The yield on the 10-year Treasury, for
Russia-Ukraine crisis, EM bondholders still seem
largely ambivalent to the risk of an invasion
and the possibility of further sanctions against
Moscow.
TO
SAFETYûBUYING
Blinken was meeting his Russian counterpart
Sergei Lavrov in Geneva for talks on Friday about
Some strategists, in fact, think Ukraine’s
bonds represent good value, particularly its US
dollar securities. Oxford Economics analysts are
positively bullish about the prospect of investing
in Ukraine dollar bonds, predicting that any
invasion will fail to trigger a severe recession or
EXAMPLEûHITûûONû7EDNESDAYûTHEûlRSTûTIMEû
it had reached that level in two years, before
EASINGûBACKûTOûINSIDEûûBYûTHEûENDûOFûTHEû
WEEKûTHANKSûTOûSOMEûmIGHT
“Given the US rates volatility, we have
MOREûINTERESTûINûTHEûlVE
YEARûTRANCHEvûSAIDû
the growing crisis. On Wednesday President Joe sovereign default. Uday Patnaik, head of emerging markets
Biden said he thought Russia will “move” into
Ukraine. Moscow denies it is planning this.
In the financial markets, there has been selling
of Russian debt but even though yields have
risen sharply since the turn of the year, bond
prices are still largely intact. Take the sovereign’s
US$3bn 4.75% May 2026s, for example. The
yield has jumped by more than 100bp since the
start of 2022 to be bid around 3.88%. But the
bid price is still comfortably above par, at 103.44.
“We think markets are pricing in too high a risk
of invasion and default,” said Oxford Economics.
“We calculate that Ukraine’s benchmark bonds
price in a 20% probability of default, but better
outcomes for Ukraine are still on the table.”
The analyst said anecdotal evidence suggests
that’s a broadly held view. “From what I hear
from foreign investors, those who think that
the situation will not evolve into actual Russian
hostile actions on the ground – so far the
DEBTûATû,')-ûAFTERû)04SûWEREûANNOUNCEDû
h&AIRûVALUEûISûAPPROXIMATELYû4REASURIESûPLUSû
BPû"UTûGIVENûTHEûSTATEûOFûTHEûMARKETSû
there would likely need to be a concession
involved (not to mention that Romania will
issue in euros as well, thus quite a bit of
SUPPLY vû
Romania complied, with a banker putting
THEûCONCESSIONSûATûABOUTûBPûh)NVESTORSû
want to put money to work but they also
Following warnings by US and European
leaders that Russia will be punished if troops
invade Ukraine, non-Russian investors are
running a big risk if they aren’t offloading their
bonds, say analysts.
“Given the clear warnings and messaging
now from Biden and Western leaders on war-
in-Ukraine risks and sanctions-on-Russia risks,
I don’t think Western investors holding Russian
assets can whinge after the event if they find
secondary sanctions rolled out on Russian assets
majority – think that the space is very oversold,
and are tempted to pick up the sovereign and
good corporates,” he said.
But he also said many investors are “quite
scared still”, which is why there is so much
volatility at the long end of Ukraine’s curve in
particular. One instrument that has come under
pressure in recent weeks is the sovereign’s
GDP-linked warrants. They were issued as
part of Ukraine’s 2015 debt restructuring. They
have shed about 20 points in value since the
WANTûAûBUFFERûIFûTHINGSûGOûSOUTHvûHEûSAIDû
The growing fear of a possible war
between Russia and Ukraine was also cited
as a reason for the conservative pricing
strategy, given Romania shares a border
with Ukraine, even though it is not involved
INûTHEûDISPUTEûBETWEENûTHEûTWOû#)3ûNATIONS
Pricing could have been tightened more
than it was but Romania decided to play it
SAFEûGIVENûALLûTHEûEXTERNALûRISKS
The deal is tied to a tender offer on three
over the next few weeks,” said Tim Ash, senior
EM sovereign strategist at BlueBay.
There’s no sense of panic from foreign
investors in the local markets either. “The best
measure of risk aversion both in Russia and
Ukraine are the local markets; local government
bonds are classic EM last-in, first-out assets,”
said an analyst. “The foreigners outflow at both
markets was rather moderate in December–
January and the central banks of both countries
are calm.”
Last week Ukraine’s central bank hiked
its main interest rate by 100bp to 10% partly
because of the standoff with Russia but also
inflationary pressures. The analyst said the
beginning of the year, falling to around 72. The 53ûDOLLARûNOTESûDUEûINûûûANDûû
warrants were quoted at 115 in September. TOTALLINGûJUSTûOVERû53BNûINûOUTSTANDINGû
“The warrants are obviously under pressure, PRINCIPAL
since it is the most volatile and speculative asset Citigroup, Erste Group, HSBC, ING, JP Morgan
in the Ukrainian universe.” and Societe GeneraleûWEREûTHEûLEADS
Vitaliy Vavryshchuk, head of macroeconomic
research at asset manager ICU, thinks Ukrainian
bonds are likely only heading in one direction.
“The reaction of the markets to the news from
Russia was quick and very negative, and now MIDDLE EAST
supported by a high level of uncertainty,” said
Vavryshchuk. “Therefore, the situation in the
Eurobond market will remain difficult, and investors BAHRAIN
are likely to continue to reduce exposure to Ukraine.”
Robert Hogg INFRACORP PLANS PERPETUAL
GREEN SUKUK

4HEûSOVEREIGNûRATEDû"AAûSTABLE  Bahrain-based INFRACORP, an infrastructure

ROMANIA """nûSTABLE """nûNEGATIVE ûSOLDûTWOû FUNDûSPUNûOUTûOFûASSETûMANAGERû'&(û&INANCIALû
BONDSûWITHûlVEûANDû YEARûTENORSûFORû 'ROUPûAIMSûTOûISSUEûAROUNDû53MûINû
SOVEREIGN PLAYS SAFE WITH DOLLAR RETURN 53BNûINûTOTALû!û53BNûDUEûû PERPETUALûGREENûSUKUKûINûTHEûlRSTûQUARTERû
BONDûLANDEDûATûBPûOVERû4REASURIESû '&(SûCHIEFûEXECUTIVEûSAIDûONû-ONDAY
ROMANIA returned to the US dollar market for WHILEûAû53BNûDUEûûTRANCHEû Infracorp has hired banks to advise on the
THEûlRSTûTIMEûSINCEûûONû7EDNESDAYû CAMEûATûPLUSûBPû/NûTHEû YEARû debt sale, CEO Hisham Alrayes told Reuters
THROUGHûAûSWITCHûANDûTENDERûOFFER 53MûWASûNEWûMONEYû"OTHûTRANCHESû INûANûINTERVIEWûBUTûDIDûNOTûNAMEûTHEMû

62 International Financing Review January 22 2022

 EMERGING MARKETS AMERICAS

Allen & Overy was hired as legal adviser and

+0-'ûASûAUDITOR
Infracorp’s roughly US$1bn in capital will NKBM offers hopes for smaller
come from the sukuk as well as US$200m in
EQUITYû4HEûFUNDûHASû53BNûINûASSETSûUNDERû
management and was spun off to allow
players as FIG mandates pile up
Infracorp to focus on infrastructure assets
WHILEû'&(ûMAINLYûLOOKSûATûlNANCIALû „ FINANCIALS CEE lenders line up deals across the capital structure
INSTRUMENTS
Proceeds from the sukuk sale will be Slovenian lender NOVA KBM managed to increase by Scope) is looking at the Tier 2 market, after
ELIGIBLEûTOûlNANCEûENVIRONMENTûSOCIALûANDû
governance goals, a focus in the Gulf and
around the world as governments and
investors acknowledge the need to curb
emissions and improve corporate
GOVERNANCE
!LRAYESûSAIDû'&(ûWASûINûTALKSûWITHûSTRATEGICû
ANDûlNANCIALûINVESTORSûTOûBUYûAûSTAKEûINû
Infracorp, which would initially reduce its
STAKEûINûTHEûSPUN
the size of its inaugural three-year non-call two
senior non-preferred offering on Thursday, as it
found making an international debut in 2022
more straightforward than last year’s path for
some of its regional peers.
NKBM (Baa1/–/BBB–) attracted a book in
excess of €475m to its deal, helping it to bring
home a €300m bond. That was €50m more
than expected. Pricing came 10bp inside initial
holding calls for a euro-denominated Capital
Requirement Regulation-compliant 10.25-year
non-call 5.25 bond. The note through Citigroup,
JP Morgan, Societe Generale and OTP Bank, is
expected to be rated Ba1 by Moody’s and BB+ by
Scope.
OTP was the first CEE issuer to bring a CCR-
compliant Tier 2, making its mark in 2019 with
a €500m 10-year non-call five note. That bond
OUTûCOMPANYûTOûûANDû guidance, landing at swaps plus 215bp.
EVENTUALLYûDILUTEû'&(SûSHAREûTOû
Eventually, he said this would “bring
down our ownership and hence de-
consolidate it from our book and [Infracorp]
BECOMESûONEûOFûOURûASSOCIATESv
'&(ûLASTûYEARûRECEIVEDûAPPROVALûTOûISSUEû
up to US$300m in Additional Tier 1 sukuk,
!LRAYESûSAID
The company could issue between
53MûANDû53MûINû!4ûSUKUKûTHISû
year, should it need and if market conditions
appealed to Western European buyers, with
Moving the spread and increasing the size
stood in contrast to a period late last year when
smaller banks found less liquid senior preferred
deals a tough sell. From Eastern Europe, pan-
Baltic financial group Citadele banka had to
reduce the size of its trade to get it over the line
and Slovakian lender 365.bank pulled its bond.
“They are pursuing their MREL strategy,”
said one syndicate banker about NKBM. “A lot
of banks looked at issuing MREL in Q4 2021,
but from mid-November the market was very
the EM angle adding some enticing additional
spread over Western European comparables.
With a volatile rates backdrop and a broadly
unsettled market tone, conditions have not been
ideal for some of the more niche trades, but
NKBM demonstrated that those obstacles are by
no means insurmountable. The focus on pricing
is just greater.
“Like always, there is a curve that will make
a trade work and I think we found the right
guidance for that,” said the banker. “But yes,
AREûRIGHTûHEûADDED difficult, so a lot of the activity was pushed back
into January.”
Indeed, on Wednesday ERSTE BANK HUNGARY
(BBB+, Fitch) revived a mandate from last year,
announcing a euro senior preferred four-year
AMERICAS non-call three deal for an expected €350m,
with lead managers Citigroup, Deutsche Bank
and Erste Group. Last November it announced a
BRAZIL €250m transaction with a five-year non-call four
maturity.
JBS USA GOES LONG FOR FIRST TIME Czech lender MONETA MONEY BANK (A2,
Moody’s) is also lining up a senior preferred
The US subsidiaries of meatpacker JBS, rated €200m six-year non-call five. JP Morgan is lead
clearly the market is harder to see through than
it was at the start of 2021.”
What to use to guide pricing for the new
NKBM issue was tricky, said the banker. The
credit and instrument lack direct comparables,
so in the end leads decided to bring together a
mix of other issuers.
“If you look at Central and Eastern European
bank comparables, the majority are issued by
local entities that are ultimately owned by some
European national champion, like the Erste
Hungary name,” he said.
“So we looked at issuance from names like
"AA"""""nûPRICEDûAû53BNû!2EGû manager and bookrunner. Erste Bank, RBI and Commerzbank. We also
S benchmark offering last week that There are also two Tier 2 mandates from looked at similarly rated Western European
INCLUDEDûTHEûBORROWERSûINAUGURALûLONGûBOND better-known lenders in the region. Slovenia’s comparables such as Credito Emiliano. And also
!û53MûSEVEN
YEARûNOTEûDUEûINûû NOVA LJUBLJANSKA BANKA (Baa1/BBB–) has others, like Luminor.”
WASûPRICEDûATû4REASURIESûPLUSûBPû!NDûAû mandated JP Morgan and NLB as lead managers The new SNP is expected to be rated Ba1/
53Mû
YEARûCAMEûATûPLUSûBPû)NITIALû for a €300m 10-year non-call five Tier 2 offering, BBB–. Goldman Sachs was global coordinator
PRICEûTHOUGHTSûWEREûINûTHEûBPûANDûBPû expected to be rated BB by S&P. and was joined as a bookrunner by BNP Paribas,
AREA And Hungary’s OTP BANK (Baa1 (positive) by JP Morgan and UniCredit.
The offering was co-issued by the JBS USA Moody’s/BBB (stable) by S&P/BBB+ (stable) Ed Clark, Robert Hogg
,UXû3!û*"3û53!û&OODû#OMPANYûANDû*"3û53!û
&INANCEû)NCû0ROCEEDSûWILLûBEûUSEDûTOûFUNDû
THEûREDEMPTIONûOFûûNOTESûANDûFORû
GENERALûCORPORATEûPURPOSESû4HEûACTIVEû
bookrunners are Barclays, BMO Capital
Markets, Mizuho and RBC Capital Markets
JBS was last in the market in November JBS SA, based in Sao Paulo, is the world’s
when subsidiaries of the Brazil-based global largest protein producer in terms of
packaged meat producer JBS SA priced revenue, slaughter capacity and production,
US$2bn of bonds, including a sustainability- and the second-largest pork producer in the
“We expect JBS to remain active in LINKEDûNOTEû4HEûBONDûOFFERINGSûWEREû*"3Sû 53ûACCORDINGûTOû-OODYSû4HEûCOMPANYûHASû
RElNANCINGûITSûHIGH
COUPONCALLABLEûBONDSû lRSTûSINCEû-OODYSûRAISEDûITSûUNSECUREDû operations in more than 20 countries with
NOWûTHATûITSûISû)'
RATEDû7EûANTICIPATEûTHEû RATINGSûTOû"AAûFROMû"AûONû.OVEMBERûû MOREûTHANûûOFlCESûANDûPLANTS
53MûINûû*"3û53!ûNOTESûDUEûINû 4HISûFOLLOWEDûANûUPGRADEûFROMû&ITCHûINû*UNEû &ITCHûSAIDûINû.OVEMBERûITûEXPECTEDû*"3Sû
ûTHATûBECOMEûCALLABLEûINû*ULYûWILLûBEû LASTûYEARûTOû"""nûFROMû""û30ûUPGRADEDû net leverage to remain below two times in
;RElNANCED=ûATûlRSTûCALLvûSAIDû#REDIT3IGHTS *"3ûTOû""ûINû/CTOBER 2021, driven by sales and Ebitda growth,

International Financing Review January 22 2022 63

primarily as a result of the strong One lead saw 33 all-Swiss accounts After starting price progression on
PERFORMANCEûOFûITSû53ûBEEFûOPERATIONS participate, with asset managers Thursday, Chilean power company SOCIEDAD
REGIONAL
CAF’S SWISS GREENS GAIN TRACTION
PARTYûOPINIONû be used for capital expenditure related to
CAF came to the Swiss market on Tuesday
WITHûANûUPSIZEDû3&RMû53M ûGREENû
bond, paying a negative new issue premium
TAKINGûTHEûMAJORITYûATûûINSURERSû
TAKINGûMOSTûOFûTHEûRESTûATûû
Pension funds and insurers split the
REMAININGû
#!&ûISûRATEDû!A!!ûANDûHASûAû
3USTAINALYTICSûSECOND
ACTIVE WEEK FOR LATAM ISSUERS
DE TRANSMISION AUSTRAL, Baa2/BBB, came back
ONû&RIDAYûANDûLAUNCHEDûAû53Mû!
Reg S 10-year senior unsecured green note
ISSUEûATû4REASURIESûPLUSûBP Itau and
ScotiabankûWEREûBOOKRUNNERSû0ROCEEDSûWILLû
GREENûELIGIBLEûPROJECTSû)NITIALûPRICEûTHOUGHTSû
WEREûINûTHEûLOWûBPûAREA
The Guatemalan-based CENTRAL AMERICA
ASûINVESTORSûPILEDûIN It was a busy week for Latin American BOTTLING CORPORATION #"# ûRATEDû"AûANDû
Leads Credit Suisse and Deutsche Bank opened issuers, with corporates and a sovereign ""ûBYû-OODYSûANDû&ITCHûLASTû4HURSDAYû
BOOKSûATû3ARONûMID
SWAPSûPLUSûBPnBPû HITTINGûTHEû53ûDOLLARûMARKETû%VENûWITHû PRICEDûAû53BNû!2EGû3ûSEVEN
YEARû
FORûAûMINIMUMû3&RMûBEFOREûPRINTINGûTHEû volatility roiling markets all week, issuers senior unsecured sustainability note
BIGGERûSIZEûATûTHEûTIGHTûENDûOFûGUIDANCE remained steady and brought their OFFERINGûATûû)NITIALûPRICEûTHOUGHTSû
At that level, equivalent to Swiss OFFERINGSûACROSSûTHEûLINE WEREûMIDûTOûHIGHûSûCitigroup and JP
GOVERNMENTSûPLUSûBPûANDûAûûYIELDû MorganûWEREûJOINTûBOOKRUNNERSû0ROCEEDSû
the bonds came about 3bp inside fair value, ALL INTL EMERGING MARKETS BONDS will be used to purchase 2027 notes and
COMPAREDûTOû#!&SûNON
GREENûOUTSTANDINGû BOOKRUNNERS: 1/1/2022 TO DATE redeem any notes not tendered, and
CURVE Latin America RElNANCEûEXISTINGûINDEBTEDNESSûASûWELLûASû
Managing No of Total Share FORûGENERALûCORPORATEûPURPOSES
INTERNATIONAL ISLAMIC FINANCE DEBT bank or group issues US$(m) (%) Central America Bottling produces,
BOOKRUNNERS: 1/1/2022 TO DATE distributes and markets beverages including
1 Bank of America 6 1,957.75 14.1
carbonated soft drinks, bottled water, sports
Managing No of Total Share 2 Barclays 2 1,815.52 13.1
bank or group issues US$(m) (%) drinks, energy drinks, juices, nectars, teas
3 JP Morgan 5 1,728.45 12.4
ANDûBEERSû#"#ûISû0EPSI#OSûANCHORûBOTTLERû
1 HSBC 1 125.00 16.7 =3 Citigroup 5 1,728.45 12.4
5 Santander 4 1,682.94 12.1
FORû#ENTRALû!MERICAû,UCRORû!NALYTICSûSAID
=1 Goldman Sachs 1 125.00 16.7
6 BBVA 2 1,568.05 11.3
-OODYSûSAIDûTHEûOFFERINGûINCLUDESûAû
=1 Mizuho 1 125.00 16.7
7 Mizuho 1 372.47 2.7
sustainability-linked structure associated
=1 Citigroup 1 125.00 16.7
=7 RBC 1 372.47 2.7
with a target to reduce CBC’s absolute
=1 Emirates NBD 1 125.00 16.7
=7 BMO 1 372.47 2.7 GREENHOUSEûGASESûEMISSIONSû3COPEûûANDû û
=1 Saudi Ntil Bk SJSC 1 125.00 16.7
10 Goldman Sachs 3 346.75 2.5 as well as obtain a Carbon Trust Zero Waste
Total 1 750.00
Total 12 13,896.14 TOû,ANDlLLûCERTIlCATIONûFORûCERTAINû
Excluding equity-related debt. Excluding equity-related debt.
manufacturing plants operated by the
Source: Refinitiv SDC code: J27 Source: Refinitiv SDC code: L3 COMPANYû
A third sovereign in as many weeks hit the
ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS MARKETû4HEûREPUBLIC OF PARAGUAY, Ba1/BB/BB+,
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE PRICEDûONû4HURSDAYûAû53Mû*UNEûû
Europe/Africa Middle East NOTEûISSUEûTOûYIELDûû)NITIALûPRICEûTHOUGHTSû
Managing No of Total Share Managing No of Total Share WEREûLOWûûAREAûCitigroup and Goldman Sachs
bank or group issues US$(m) (%) bank or group issues US$(m) (%) WEREûBOOKRUNNERSû0ROCEEDSûWILLûBEûUSEDûFORû
1 Citigroup 2 540.28 20.7 the purchase of existing bonds of the Republic
1 Goldman Sachs 3 1,645.15 21.3
=2 Goldman Sachs 1 423.48 16.2 DUEûINûûANDûINû
=1 Deutsche Bank 3 1,645.15 21.3
=2 JP Morgan 1 423.48 16.2 4HEûNEWûYEARûKICKEDûOFFûWITHûAû53BNû
=1 BNP Paribas 3 1,645.15 21.3
=2 Barclays 1 423.48 16.2 BENCHMARKûTWO
PARTûOFFERINGûFROMû-EXICOû
4 Citigroup 2 1,313.09 17.0
5 HSBC 1 116.80 4.5 and last week Panama was in the market
5 JP Morgan 2 455.22 5.9
=5 Sumitomo Mitsui 1 116.80 4.5 WITHûAû53BNûTWO
PARTûBONDûOFFERINGû
6 Commerzbank 1 332.06 4.3
=6 Barclays 1 332.06 4.3 =5 First Abu Dhabi Bk 1 116.80 4.5 At least one offering sits in the supply
8 HSBC 1 123.16 1.6 =5 MUFG 1 116.80 4.5 PIPELINEûINGENIO MAGDALENA, a Guatemalan
=8 Bank of America 1 123.16 1.6 =5 BNP Paribas 1 116.80 4.5 sugar and biomass power producer, started
=8 MUFG 1 123.16 1.6 10 Deutsche Bank 1 96.07 3.7 investor calls last week for an up to
Total 4 7,737.33 Total 4 2,615.51 53MûSEVEN
YEARûISSUEûRATEDû"n""nû
Excluding equity-related debt. Excluding equity-related debt. Credit Suisse and JP Morgan are the
Source: Refinitiv SDC code: L2 Source: Refinitiv SDC code: L5 BOOKRUNNERS

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64 International Financing Review January 22 2022

 LOANS
Australia  Hong Kong  India  France  Germany  Oman  Qatar 
UK û United States 70 Leveraged Loans 70 Restructuring 

„ FRONT STORY INDIAN MARKET

REC leads public sector offshore

State-owned Indian companies kick-start activity after dismal volumes in 2021
REC’s US$1.175bn loan pays less than its previous borrowing completed three months ago
State-owned REC has launched a 0ETROLEUMû(INDUSTANû0ETROLEUMû)NDIANû HUNGRYûFORûTOP
TIERû035ûASSETSûTHATûCARRYû
53BNûlVE
YEARûlNANCINGû)NDIASû /ILû/.'#ûANDû/.'#û6IDESHûANDû0OWERû LOWûRISKûWEIGHTINGSûFORûCAPITALûEMPLOYED
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&INANCEû#ORP !SûAûRESULTûOFûSTRONGûDEMANDû035û
BANKINGûlNANCIALûCOMPANYûWHICHûLENDERSû 4HISûSETûOFûBORROWERSûHASûCONSISTENTLYû BORROWERSûAREûPUSHINGûDOWNûPRICINGû,ASTû
HOPEûWILLûPROVIDEûAûlLLIPûTOûOFFSHOREû
SYNDICATEDûLOANSûTHISûYEARûAFTERûAûPOORû
YEARûCLUBûLOANûPAYINGûALL
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2021.
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OILûANDûGASûCOMPANIESûSUCHûASû"HARATû RESULTûOFûDECLININGûDEALûmOWûANDûAREû Evelynn Lin, Mirzaan Jamwal

International Financing Review January 22 2022 65

 0OWERû ûANDû3TATEû'RIDû#ORPûOFû#HINAû 0ORTûOFû-ELBOURNEûCOUNTSû1)#û&UTUREû&UNDû
 ûAMONGûITSûSHAREHOLDERS 'LOBALû)NFRASTRUCTUREû0ARTNERSûANDû/NTARIOû
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SEVEN BACK JUMBO AUSNET BUY TERMûLOANûLINKEDûTOû3/&2
Bank of America, Bank of ChinaûCitibankû CHINDATA SEEKS US$300m LOAN
3EVENûBANKSûAREûPROVIDINGûDEBTûFUNDINGû Credit Agricole CIBûGoldman SachsûHSBC and
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OFûUNDRAWNûBUTûCOMMITTEDûUNSECUREDûBANKû MANAGERSûATû53MnMûWILLûRECEIVEûANû /Nû$ECEMBERûûTHEû"AINû#APITAL BACKEDû
OVERDRAFTûWORKINGûCAPITALûANDûLOANSûANDû ALL INûOFûBPûVIAûAûBPûFEE DATAûCENTREûCOMPANYûANNOUNCEDûTHEûSUDDENû
!BNûINûMEDIUM TERMûNOTESûSENIORû 0ROCEEDSûWILLûBEûUSEDûFORûGENERALû RESIGNATIONûOFûFOUNDERûANDûCHIEFûEXECUTIVEû
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!US.ETSûGEARINGûWASûûANDûITSûNETû INTERNALûDEBTûANDûSUPPORTûOFûFUNDINGûNEEDSû THANûûTHATûDAY
DEBTûTOûREGULATEDûANDûCONTRACTEDûASSETûBASEû OFûTHEûBORROWERûANDûITSûSUBSIDIARIES "AINSûEXECUTIVEûVICE PRESIDENTû&EIû8UûHASû
RATIOûWASû BEENûAPPOINTEDûASûINTERIMû#%/ûWHILEûTHEû
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ANDûOPERATESû6ICTORIASûELECTRICITYû REPLACEMENT
TRANSMISSIONûNETWORKûASûWELLûASûONEûOFûlVEû 0ORTûOFû-ELBOURNEûHASûOBTAINEDûAû!Mû #HINDATAûRAISEDû53MûFROMûAû.ASDAQû
ELECTRICITYûDISTRIBUTIONûNETWORKSûANDûONEûOFû 53M ûTHREE YEARûLOANûFROMûûBANKSû )0/ûINû3EPTEMBERûûTHATûVALUEDûTHEû
THREEûGASûDISTRIBUTIONûNETWORKSûINû6ICTORIAû FORûRElNANCING COMPANYûATû53BN
ACCORDINGûTOûITSûWEBSITE 4HEûBORROWINGûISûSPLITûINTOûAû!Mû
!US.ETûWHICHûISûLISTEDûONûTHEû!USTRALIANû CAPITALûEXPENDITUREûTRANCHEûANDûAû!Mû
3ECURITIESû%XCHANGEûCOUNTSû3INGAPOREû WORKINGûCAPITALûFACILITYûANDûOFFERSûINTERESTû HONG KONG
MARGINSûOFûBPûOVERû""39
ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY ,ENDERSûAREûCommonwealth Bank of Australiaû DIGITALBRIDGE DIALS IN FOR LOAN
SYNDICATED VOLUME (INCLUDING JAPAN) Bank of Nova ScotiaûCIBCûANZûBank of AmericaûBank
BOOKRUNNERS: 1/1/2022 TO DATE of ChinaûBNP ParibasûChina Construction Bankû $IGITALûINFRASTRUCTUREûINVESTMENTûlRMû
Managing No of Total Share Export Development CanadaûMUFGûNational DIGITALBRIDGE GROUPûHASûRAISEDûAû(+BNû
bank or group issues US$(m) (%) Australia BankûWestpac and Bank of Communications. 53M ûTHREE YEARûLOANûBACKINGûITSû
1 MUFG 4 603.44 41.2 LONSDALE FINANCEûISûTHEûBORROWER PURCHASEûOFûTELECOMSûSERVICESûPROVIDERû
2 Taiwan Coop Finl Hldg 3 251.82 17.2 )Nû-AYûûTHEûBORROWERûRAISEDûAû 0##7SûDATAûCENTREûBUSINESSESûINû(ONGû
3 Land Bank of Taiwan 1 207.92 14.2 !BNûlNANCINGûCOMPRISINGûAû!Mû +ONGûANDû-ALAYSIA
4 United Overseas 1 141.18 9.6 TWO YEARûTERMûLOANûAû!MûTHREE YEARûTERMû Deutsche Bank and ING WEREûTHEûMANDATEDû
5 First Financial Holding 1 130.26 8.9 LOANû!MûFOUR YEARûTERMûLOANûANDûAû!Mû LEADûARRANGERSûBOOKRUNNERSûANDû
6 Cathay Financial Hldg 1 98.00 6.7 THREE YEARûREVOLVINGûCREDITûFACILITYûTHATûPAYSû UNDERWRITERSûOFûTHEûlNANCINGûWHICHû
7 Hua Nan Finl Hldgs 1 16.74 1.1 MARGINSûOFûBPûBPûBPûANDûBPûOVERû COMPRISESûAû(+BNûTERMûLOANûANDûAû
=7 Agricultural Bk of Taiwan 1 16.74 1.1 ""39ûRESPECTIVELY (+MûGUARANTEEûPIECE
Total 12 1,466.09 0ROCEEDSûPARTIALLYûRElNANCEDûAû!BNû -,!SûAREûANZûCredit Agricole CIBûCTBC
Proportional credit
LOANûAû1)# LEDûCONSORTIUMûRAISEDûINûLATEû BankûDBS BankûMUFGûNatixisûSiemens Bank
Source: Refinitiv SDC code: S3a ûFORûITSûACQUISITIONûOFû0ORTûOFû-ELBOURNE and SMBC.

66 International Financing Review January 22 2022


Vietinbank on fundraising spree
„ VIETNAM Lender returns for third loan in less than six months
Barely two months after signing the country’s
largest syndicated loan, VIETNAM JOINT STOCK
COMMERCIAL BANK FOR INDUSTRY AND TRADE
(Vietinbank) is back for a loan of up to US$1bn,
highlighting the large capital needs of Vietnam’s
financial institutions as the economy improves.
Although this will be Vietinbank’s third
sizeable loan in less than six months amid a
rising tally of offshore borrowings from other
Vietnamese FIs, demand among international
lenders for the country’s credits shows no signs
of waning.
The tenor of the new loan has not been
determined yet, but Vietinbank is aiming to
stretch its debt maturity profile after raising
US$1.79bn combined from its previous two loans
that had tenors ranging from one to three years.
As one of the four largest state-owned
commercial banks in Vietnam, Vietinbank,
rated Ba3/BB− (Moody’s/Fitch), is attractive
to international lenders eyeing exposure to the
country’s credits.
A Fitch report in December said Vietinbank’s
asset quality performance was likely to
benefit from an improving economic outlook,
which would also have positive effects on its
3PECIALûPURPOSEûVEHICLEû0OWER$#û(OLDCOû
OWNEDû GENERATIONûCAPACITYûADDITIONûPROGRAMMEû
profitability. The ratings agency also recognised
improvements in the bank’s risk management
and controls over the past few years.
“Vietinbank is a safe credit with a strong
profile and we are more comfortable with
financial institution borrowers as they are
regulated compared with corporate borrowers,”
said a senior loan banker from an existing lender.
“In addition, the tenor of the previous borrowing
is only one year, so it is not too difficult for us to
obtain internal approvals to provide continuous
support to the new deal.”
In November, Vietinbank closed a US$1bn
one-year borrowing that was heavily
oversubscribed, with allocations of participating
banks significantly scaled back. The deal
attracted 16 banks in general syndication, a
good outcome considering it was a result of
reverse enquiries following a stronger response
to a US$790m dual-tranche loan completed in
August. The smaller financing comprised tenors
of two and three years and drew 21 banks in
general syndication.
“As the previous deal was oversubscribed,
there is still unmet demand there,” the banker
said.
0UBLICû&INANCIALûISûAû
LOANS ASIA-PACIFIC
AND ANOTHER...
Vietinbank is not the only Vietnamese bank
returning to the offshore loan market. Private
sector lender VIETNAM TECHNOLOGICAL &
COMMERCIAL JOINT STOCK BANK (Techcombank)
is in talks for a US$700m multi-tranche loan,
returning within five months of closing a
US$800m dual-tranche loan – its largest facility
ever.
Techcombank’s latest financing could be split
into a US$500m three-year tranche, a US$100m
four-year portion and another US$100m five-
year piece.
Despite the flurry of borrowings from
Vietnamese credits that helped lift the country’s
syndicated loan volumes to US$7.1bn in 2021 –
triple the 2020 tally – bankers are unconcerned
about country limits.
“The country limits are not a big issue now as
Vietnam overall represents a good choice for us
in terms of risk and return, and we can apply to
increase the limits if necessary,” said a Taiwan-
based loan banker. “In addition, we are keen to
book some good assets in the first few months
of the year.”
Chien Mi Wong, Evelynn Lin
ISûTHEûBUYERûOFûTHEûASSETSûANDûTHEûBORROWERû SUBSIDIARYûOFû-ALAYSIASû0UBLICû"ANKûWHICHû ANDûFORûRElNANCING
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TRANCHEûSUSTAINABILITY

FOURTHûQUARTERûOFû NTPC POWERS UP FOR LOAN LINKEDûLOANûINTOûGENERALûSYNDICATION
HSBCûIntesa SanpaoloûMUFGûRabobank
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(ONGû+ONG
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Commercial Bank and Mega International FORûTHEû53MûAMOUNTûANDûANû HASûAûREMAININGûLIFEûOFûûYEARSûASSUMINGû
Commercial Bankû,EADûARRANGERSûAREûE Sun ADDITIONALûTHREEûMONTHSûFORûTHEû TRANSFERSûTAKEûPLACEûATûTHEûENDûOFû-ARCH
Commercial BankûLand Bank of TaiwanûTaishin REMAININGûGREENSHOE "ANKSûHAVEûBEENûINVITEDûTOûJOINûONûAûPROûRATAû
International BankûTaiwan Cooperative Bank 4HEûDEADLINEûFORûBIDSûISû*ANUARYûûWITHû BASISûWITHûCOMMITMENTSûOFû53MûANDûABOVEû
and Shanghai Commercial & Savings Bank. SIGNINGûOFûTHEûFACILITYûAGREEMENTûTARGETEDûFORû FORûTHEû-,!ûTITLEûWITHûAûBLENDEDûTOP
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INûOFûBPûVIAûAûBPû

International Financing Review January 22 2022 67

FEEûWHILEûARRANGERSûWITHûTICKETSûOFû "OTHûFACILITIESûHAVEûTWOûONE
YEARû /MANûEXPECTSûITSûBUDGETûDElCITûTHISûYEARû
53MnMûWILLûRECEIVEûBLENDEDûALL
INûOFû EXTENSIONûOPTIONSûANDûAREûCURRENTLYû
BPûVIAûAûBPûFEE
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SAMEûASû50,SûDEBUTû53MûlVE
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TOûREACHûûOFû'$0ûWELLûWITHINûTHEûLIMITSûOFû
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#AREûSERVICESûGROUPûKORIANûHASûPLACEDûANû NEEDSûTHISûYEAR
AROUNDûõMû3CHULDSCHEINDARLEHENûTHATû 4HEûSMALLû'ULFûCRUDEûPRODUCERûEXPECTSû
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BYûûANDûCARBONûEMISSIONSûANDûSOLIDû SEVENûANDûEIGHTûYEARSûMOSTLYûONûlXEDûRATES TOûSTABLEûFROMûNEGATIVEûASûHIGHERûOILûPRICESû
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YEARûBPûONûTHEûSEVEN
YEARû SHEETû)Nû/CTOBERû-OODYSûDIDûTHEûSAMEûANDû
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YEARûANDûBPûOVERû%URIBORûONûTHEûSEVEN
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4HEûlNANCINGûHELPSû+ORIANûEXTENDûITSû DOHA BANK GETS STRONG RESPONSE
AFRICA AVERAGEûDEBTûMATURITYûTOûûYEARSûCOMPAREDû
WITHûûYEARSûATûTHEûENDûOFû DOHA BANKûHASûATTRACTEDûûBANKSûINûGENERALû
AFC RAISES US$400m LOAN SYNDICATIONûFORûITSû53MûTHREE
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SYNDICATEDûTERMûLOAN
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53MûTHREE
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CONTINENTSûPOST
PANDEMICûRECOVERY Mizuho Bank and Intesa Sanpaolo
Absa BankûBank of ChinaûFirst Abu Dhabi Bankû "RAKINGûSYSTEMSûGROUPûKNORR-BREMSE has COORDINATEDûTHEûlNANCINGûWITHû-IZUHOû
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BankûStandard Chartered and SMBC WEREû AûMARGINûTIEDûTOûTHEûCOMPANYSû 4HEûOTHERûLENDERSûAREûANZûEmirates
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YEARûEXTENSIONûOPTIONS Commercial BankûExport-Import Bank of the
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4HEûFACILITYûWASûINCREASEDûFROMûANûINITIALû CURRENTLYûRATESû+NORR
"REMSEûATû#ûONûAû Business BankûFirst Commercial BankûLand
TARGETûOFû53MûAFTERûCOMMITMENTSû SCALEûRANGINGûFROMû$nûTOû! Bank of Taiwan and Taishin International
CAMEûINûOVERûûTIMESûOVERSUBSCRIBED Deutsche Bank and UniCredit COORDINATEDû Bank.
-OODYSûRECENTLYûIMPROVEDûITSûOUTLOOKûFORû the loan. 4HEûlNANCINGûWHICHûINCLUDESûAûONE
YEARû
!&#SûINVESTMENT
GRADEûCREDITûRATINGSûTOû EXTENSIONûOPTIONûWASûFULLYûDRAWNûONû
STABLEû)TSûSENIORûUNSECUREDûRATINGûISû! $ECEMBERûû
OMAN 4HEûLOANûWHICHûWASûLAUNCHEDûATû
53MûOFFEREDûAûTOP
LEVELûALL
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FRANCE SOVEREIGN SEEKS US$3bn–$4bn BPûVIAûANûINTERESTûMARGINûOFûBPû
OVERû,IBOR
ALSTOM WRAPS REFINANCING OMANûISûINûTALKSûWITHûREGIONALûBANKSûTOû 0ROCEEDSûAREûFORûGENERALûCORPORATEûANDû
RElNANCEûAû53BNûLOANûITûTOOKûOUTûEARLYû WORKINGûCAPITALûPURPOSESû
4RAINûMAKERûALSTOM HASûCOMPLETEDûAûõBNû LASTûYEARûSEEKINGûTOûINCREASEûITSûSIZEûTOû )Nû-ARCHûLASTûYEARû$OHAû"ANKûRAISEDûANû
RElNANCINGûREPLACINGûTHEûCOMPANYSû BETWEENû53BNnBNû2EUTERSûREPORTED INCREASEDû53MûTHREE
YEARûLOANû
EXISTINGûFACILITIESûANDûREINFORCINGûITSû 4HEûLOANûTAKENûOUTûINû&EBRUARYûLASTûYEARûHASûAû
LIQUIDITY 
MONTHûTENORûWITHûAûONE
YEARûEXTENSIONû
EMEA LOANS BOOKRUNNERS – FULLY
!LSTOMSûMAINûlVE
YEARûREVOLVINGûCREDITû OPTIONûATûTHEûBORROWERSûDISCRETION
FACILITYûWASûINCREASEDûTOûõBNûFROMûõBNû /MANûWASûORIGINALLYûSEEKINGûUPûTOû53BNû SYNDICATED VOLUME
BOOKRUNNERS: 1/1/2022 TO DATE
ANDûTHEûMATURITYûWASûEXTENDEDûTOû*ANUARYû WITHûLASTûYEARSûLOANûBUTûMOREûTHANûDOUBLEDûITSû
ûFROMû/CTOBERûû4HEû2#&ûACTSûASûAû SIZEûDUEûTOûSTRONGûAPPETITEûFROMûBANKS Managing No of Total Share
bank or group issues US$(m) (%)
BACKSTOPûTOûTHEûCOMPANYSûõBNû.%5û $ESPITEûTHEûEXTENSIONûOPTIONû/MANûISû
COMMERCIALûPAPERûPROGRAMME TRYINGûTOûRElNANCEûTHEûLOANûWITHûBETTERû 1 Coop Rabobank 1 376.17 33.3
-EANWHILEûAûõBNû2#&ûORIGINALLYûPUTû TERMS =1 ING 1 376.17 33.3
INûPLACEûINû!PRILûûTOûREINFORCEûTHEû 0RICEûTALKûFORûTHEûRElNANCINGûISûAROUNDû =1 ABN AMRO 1 376.17 33.3
COMPANYSûLIQUIDITYûDURINGûTHEû#OVID
û BPûOVERû,IBORû4HEûORIGINALûLOANSûALL
INû Total 1 1,128.50
CRISISûHASûBEENûEXTENDEDûTOû*ANUARYûû PRICINGûINCLUDINGûFEESûWASûBETWEENûBPû Proportional credit
FROMû!UGUSTû ANDûBP Source: Refinitiv SDC code: R17

68 International Financing Review January 22 2022


Aramco set to line up US$10bn RCF refi
„ SAUDI ARABIA Jumbo loan is scheduled to mature in March
SAUDI ARAMCO and its lenders are ready to
move forward with the refinancing of the
oil giant’s US$10bn revolving credit facility
that was agreed in 2015 and matures in
March.
The refinancing has been expected to
come to the market since last September,
but bankers say that work on Aramco’s more
complicated oil and gas pipeline financings
delayed its progress.
Aramco is still in the process of arranging
a US$12bn–$14bn loan that it plans to offer
to buyers of its gas pipeline network, while
last June a consortium led by US investment
firm EIG Global Energy Partners bought 49%
of the Aramco Oil Pipelines Company backed
by a US$10.8bn staple financing raised by
Aramco.
“There is movement now, I think the
refinancing will come very soon. The pipeline
deals are just complicated and very time
consuming,” said one banker.
EASING APPETITE
The refinancing is expected to be a relatively
straightforward rollover of money by Aramco’s
key international relationship lenders.
Lenders say appetite for the deal has been
buoyed by the partial pay down of the oil pipeline
loan with a bond take-out, and by Aramco’s
prepayment in November of a US$10bn one-year
term loan that was originally agreed in May 2020
and extended for a further year.
Earlier this month, EIG Pearl Holdings, in
which the oil consortium holds an 89.45% stake,
raised a US$2.5bn project bond to take out a
portion of a US$10.8bn five-year loan.
This has helped some banks which were beginning
to struggle with Saudi exposure, a second banker said.
“Some of the international banks were
complaining that they were hitting Saudi country
limits,” the banker said. “After the prepayment
and the bond take-out that has eased.”
Other lenders have had no problem with Saudi
exposure in general, or Aramco more specifically,
LOANS EMEA
with oil prices hitting a seven-year high.
“In the bank market there is no issue at all
with getting full on Saudi. Aramco is sitting
on lots of cash with oil at more than US$80 a
barrel,” said the first banker.
Saudi Aramco declined to comment.
The existing US$10bn RCF is split into two
tranches. A US$7bn tranche is split between
a US$6bn five-year facility with two one-year
extension options that have been exercised,
and a US$1bn annually renewable 364-day
facility. The loans pay margins of 12bp and
10bp, respectively.
The second tranche is a SR11.25bn (US$3bn)
murabaha facility, comprising a SR7.5bn
five-year facility with two one-year extension
options, and a SR3.75bn annually renewable
364-day facility, paying 11bp and 9bp,
respectively.
There are 27 banks on the deal, led by global
coordinators HSBC, JP Morgan and Riyad Bank.
Sandrine Bradley

WASTEûANDûZEROûSINGLEûUSEûPLASTICûBUSINESSû OPERATIONSûTHISûYEARûUSINGûûRENEWABLEû

UK ANDûRUNNINGûAûûSUSTAINABLEûSUPPLYû ELECTRICITY
CHAINûBYû
ITV COMPLETES £500m SLL WORKSPACE LANDS SLL
BURBERRY GETS £300m SLL
"ROADCASTERûITVûHASûAGREEDûAûaMû 3MALLûBUSINESSûLANDLORDûWORKSPACE has
REVOLVINGûCREDITûFACILITYûWITHûMARGINSûLINKEDû ,UXURYûBRANDûBURBERRYûHASûSIGNEDûAûaMû AGREEDûAûaMûSUSTAINABILITY LINKEDû
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BarclaysûBNP ParibasûCredit SuisseûMizuhoû TOûEMBEDû%3'ûACROSSûITSûOPERATIONSû 4HEûPREVIOUSû2#&ûWHICHûWASûPROVIDEDûBYû
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ûRENEWABLEûENERGYûTOûBECOMEûAûZEROû BECOMEûCARBONûNEUTRALûACROSSûITSûOWNû STRATEGYûANDûNETûZEROûCARBONûPATHWAY

International Financing Review January 22 2022 69

NORTH AMERICA Reshoring may boost new
UNITED STATES money volumes
DICK’S SPORTING GOODS GETS RCF „ US Companies looking to expand domestic production facilities to fix supply chain issues

2ETAILERûDICK’S SPORTING GOODSûHASûSIGNEDûANû Supply chain disruptions caused by the global DOMESTIC FOCUS
UNSECUREDû53BNûlVE
YEARûREVOLVINGûCREDITû pandemic have highlighted the shortcomings Major US manufacturers have already signalled
FACILITYûREPLACINGûAûLOANûFROMû!UGUSTû of relying on products or components sourced their intention to expand investment in domestic
4HEûMATURITYûDATEûMAYûBEûEXTENDEDûBYûUPû internationally and from jurisdictions in which production. In December, Reuters reported that
TOûTWOûONE
YEARûPERIODSûANDûITSûSIZEû US companies have little or no influence. automotive giant General Motors planned to
INCREASEDûBYûUPûTOû53M Reshoring, the positioning of manufacturing invest up to US$4bn in two Michigan plants to
4HEûOPENINGûMARGINûBASEDûONûTHEû assets closer to home, is a solution under boost its electric vehicle production capacity. In
BORROWERSûDEBTûRATINGûISûBPûOVERûTERMû consideration by many US corporates, and one September, semiconductor company Intel broke
3/&2ûPLUSûAûCREDITûSPREADûADJUSTMENTûFEEûOFû that investment-grade loan bankers hope will ground on two new factories in Arizona with a
BPûBPûORûBPûFORûONEûTHREEûORûSIX
lead to more new money loans in the coming price tag of US$20bn. Those semiconductor
MONTHûINTERESTûPERIODSûRESPECTIVELY year. factories are intended to increase Intel’s supply
4HEûCOMPANYSûCONSOLIDATEDûLEVERAGEû Despite the continued effects of the chain resilience, Reuters reported.
RATIOûMAYûNOTûEXCEEDûûTIMES pandemic in 2021, new money loans for The inadequacies of the “just in time” supply
Wells FargoûISûTHEûADMINISTRATIVEûAGENTû investment-grade corporate borrowers model highlighted by the pandemic are viewed
!DDITIONALûLENDERSûAREûBank of AmericaûPNC totalled US$350bn, up 122% year on year by some as long-term problems worthy of
BankûTD BankûUS BankûCapital OneûFifth Third and almost 50% above 2019’s US$238bn investment to rectify.
BankûTruist BankûCitizens BankûHSBC and
Huntington National Bank.
$ICKSûISûRATEDû"AAûBYû-OODYSûANDû"""û
BYû30
FRANKLIN TAKES BSBY RCF
)NVESTMENTûMANAGEMENTûCOMPANYûFRANKLIN
RESOURCESûHASûSIGNEDûAû53Mû
DAYû risk intelligence companies. Additionally,
REVOLVINGûCREDITûFACILITY
total prior to the Covid-19 outbreak. Of that,
M&A related transactions last year comprised
US$198bn of the new money aggregate, or
56.5% of the 2021 total.
Some of that M&A activity was driven by
corporate consolidation, including financing
for credit reporting companies Equifax and
TransUnion to support their acquisitions of
book interest income, or via the increase and
the US$43bn merger of WarnerMedia and
“It’s been two years and the world is now
different than it was before. The ports are backed
up and we’re not in a position to rely so heavily
on transoceanic supply chains,” a second loans
banker said.
Funding of new manufacturing facilities
could come in the form of term loans, which
certain banks are eager to provide in order to
opportunistic drawing of existing revolving credit
4HEûREVOLVERûPAYSûAûMARGINûOFûBPûOVERû"3"9û
THEû"LOOMBERGû3HORT
4ERMû"ANKû9IELDû)NDEXû loans and a revolving credit facility. This year,
RATEûTHATûHASûBEENûUSEDûBYûSOMEûBORROWERSûASûANû
ALTERNATIVEûTOûTHEû,IBORûREFERENCEûRATE
4HEû3/&2ûREFERENCEûRATEûHASûBEENûMOREû
WIDELYûADOPTEDûASûANûALTERNATIVEûTOû,IBORûBYû
THEûSYNDICATEDûLOANûMARKETûSINCEûTHEû
BEGINNINGûOFûTHEûYEAR
4HEû2#&SûCOMMITMENTûFEEûISûBP
Bank of AmericaûISûTHEûADMINISTRATIVEûAGENTû
ANDûWASûSOLEûLENDERûATûTHEûDATEûOFûTHEûCREDITû
AGREEMENTSûCLOSE
#OVENANTSûRESTRICTû&RANKLINû2ESOURCESû
CONSOLIDATEDûNETûLEVERAGEûRATIOûTOûAû
MAXIMUMûOFûTHREEûTIMES
&RANKLINû2ESOURCESûISûRATEDû!ûBYû-OODYSû
ANDû!ûBYû30
LEVERAGED LOANS
Discovery was backed by bridge loans, term
“I think upsizes and drawing of revolvers
bankers are hopeful that reshoring efforts will
add another avenue of opportunities for new
money loans.
“It sounds like people are looking at capacity
expansion, whether that’s through acquisition
or the building of new capacity, and they’re
likely to use the bank market to do that,” said
a loans banker. “Companies are now acquiring
or building in the US, Mexico and Canada so
they don’t have to deal with the port issues. The
supply chain is really affecting companies, it’s
affecting their working capital and becoming
cumbersome to business.”
Supply chain constraints have been cited by
many as a cause of the highest US inflation rate
for 40 years, which stood at 7% for the year,
according to the US Bureau of Labor Statistics.
lNANCINGûPACKAGEûTOûSUPPORTûITSûBUYOUTûBYû
ANû!DVENTû)NTERNATIONAL
lines.
would probably be adequate for most
companies, without the need for term loans,”
said a third banker.
One major US manufacturing company,
Thermo Fisher Scientific, increased the size of
its five-year revolving credit facility by US$2bn
in January to US$5bn. The facility was provided
by the same bank group that committed to the
December 2020 revolver that was replaced.
Gardening equipment company Toro
announced on January 14 that it had drawn on its
revolver to partially fund the acquisition of lawn
mower manufacturer Intimidator Group. The
company said the acquisition “provides unique
opportunities to further leverage … procurement
and manufacturing efficiencies”.
Rhys Adams
0RICINGûONûTHEû4,"ûMAYûBEûINITIALLYûGUIDEDû
LEDûINVESTORû ATûAROUNDûBPnBPûOVERû3/&2ûBANKERSû
CONSORTIUMûINûAû53BNûDEAL SAIDû4HEREûISûEXPECTEDûTOûBEûAûEURO

UNITED STATES 4HEûlNANCINGûISûEXPECTEDûTOûINCLUDEûAû DENOMINATEDûPORTIONûTHEYûSAID
53BNûSENIORûSECUREDûSEVEN
YEARûTERMûLOANû"û "ANKERSûLOOKINGûATûTHEûlNANCINGûAREû
MCAFEE SETS LENDER CALL Aû53BNûlVE
YEARûREVOLVINGûCREDITûFACILITYûANDû CONlDENTûITûWILLûBEûWELLûRECEIVEDûINûTHEû
53BN
EQUIVALENTûOFûSENIORûUNSECUREDûEIGHT
MARKETûDUEûTOûTHEûUNDERSTANDABLEûANDû
#YBERSECURITYûSOFTWAREûPROVIDERûMCAFEE has YEARûNOTESû-C!FEEûANNOUNCEDûINû.OVEMBERû APPRECIABLEûNATUREûOFû-C!FEESû
SCHEDULEDûAûLENDERûCALLûONû-ONDAYûFORûAû WHENûITûOUTLINEDûDETAILSûOFûTHEûACQUISITION CYBERSECURITYûBUSINESSûANDûTHEûSTRONGû

70 International Financing Review January 22 2022

 LOANS LEVERAGED LOANS

RETENTIONûRATEûOFûTHEûCOMPANYSû 4HEûBUYOUTûISûEXPECTEDûTOûBEûCOMPLETEDûINû 4RAILERûMANUFACTURERûNOVAEûGUIDEDûTERMSû

CUSTOMERûBASE THEûlRSTûQUARTERû4HEûINVESTORûGROUPûINCLUDESû FORûLOANSûTHATûWILLûFUNDûITSûACQUISITIONûBYû
JP MorganûISûLEADINGûTHEûTRANSACTION CURRENTûSPONSORSû6ERITASû#APITALûANDû%VERGREENû "RIGHTSTARû#APITALû0ARTNERS
/THERûLENDERSûALREADYûINVOLVEDûINûTHEûFACILITYû #OASTû#APITALûWHICHûWILLûEACHûRETAINûAûMINORITYû 4HEûlNANCINGûCOMPRISESûAûlVE
YEARû53Mû
AREûBank of AmericaûCredit SuisseûBarclaysû INVESTMENTûINû!THENAHEALTHûINûADDITIONûTOû REVOLVINGûCREDITûFACILITYûAûSEVEN
YEARû53Mû
CitigroupûHSBCûRBCûCPPIB Credit Investmentsû OTHERûNEWûCO
INVESTORSûINCLUDINGûSOVEREIGNû lRST
LIENûTERMûLOANûANDûAûSEVEN
YEARû53Mû
UBSûPSP Investments Credit II USAûBank of Montrealû WEALTHûFUNDSû')#ûANDûAûSUBSIDIARYûOFûTHEû!BUû lRST
LIENûDELAYED
DRAWûTERMûLOAN
KKRûMacquarieûMizuhoûMUFGûNomura Securitiesû $HABIû)NVESTMENTû!UTHORITY 0RICINGûONûTHEûlRST
LIENûLOANSûISûOFFEREDûATû
Wells FargoûBNP ParibasûCIBCûCitizens BankûCredit #LOUD
BASEDûHUMANûRESOURCESûlRMûTEMPOû BPûOVERû3/&2ûPLUSûAûCREDITûSPREADû
AgricoleûFifth ThirdûIntesa SanpaoloûKeyBankû KNOWNûASû!LIGHTû3OLUTIONSûISûRAISINGûAû ADJUSTMENTûWITHûAûûmOORûANDûAûû/)$û
NatixisûSociete GeneraleûStandard CharteredûStifelû 53BNûTERMûLOANû"ûTHATûWILLûRElNANCEûAû 4HEûMARGINûISûTIEDûTOûTWOûSTEP
DOWNS
SMBCûTD Bank and Bank of Nova ScotiaûASû TERMûLOANûDUEûINû 4HEû#3!ûISûOFFEREDûATûBPûFORûONE
MONTHû
PREVIOUSLYûREPORTED 4HEûLOANûWHICHûMATURESûONû!UGUSTûû 3/&2ûBPûFORûTHREE
MONTHû3/&2ûANDûBPû
4HEûACQUIRINGûINVESTORûGROUPûINCLUDESû ûISûOFFEREDûATûBPûOVERû3/&2ûWITHûAû FORûSIX
MONTHû3/&2
INVESTMENTûlRMSû0ERMIRAû!DVISERSû ûmOORûANDûANû/)$ûOFû "OTHûLOANSûCOMEûWITHûûSOFTûCALLû
#ROSSPOINTû#APITALû0ARTNERSû#ANADAû0ENSIONû )TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû PROTECTIONûFORûSIXûMONTHSû4HEû$$4,ûHASûAû
0LANû)NVESTMENTû"OARDû')#ûANDûAûSUBSIDIARYû SIXûMONTHS SIX
MONTHûDRAWûPERIOD
OFûSOVEREIGNûFUNDû!BUû$HABIû)NVESTMENTû 4EMPOûISûALSOûSEEKINGûTOûAMENDûTHEûTERMSûOFû JefferiesûSMBC and Nomura AREû
!UTHORITYû4HEûGROUPûHASûALSOûRECEIVEDû ITSûEXISTINGû53MûTERMûLOANû"ûDUEûINûû BOOKRUNNERS
53MûINûEQUITYûlNANCINGûFROMû030û
)NVESTMENTSû#REDITûANDû.EUBERGERû"ERMAN
ATHENAHEALTH OUT WITH LBO LOANS
FUNGIBLEû
(EALTHCAREûTECHNOLOGYûCOMPANYû
LIENûTERMûLOANû lNANCEûMERGERûANDûACQUISITIONûACTIVITYûANDû
ATHENAHEALTHûISûINûTHEûMARKETûWITHûAû
53BNûTERMûLOANûANDûAû53BNûDELAYED
TOûBPûOVERû3/&2ûATûPARûWITHûAûûmOOR
4HEûPROûFORMAûSIZEûOFûTHEûENTIREûFACILITYû
WILLûBEûABOUTû53BN
Bank of AmericaûISûARRANGINGûTHEûDEAL
(ARDWOODûmOORINGûSUPPLIERûAHF PRODUCTS
ISûRAISINGûAû53MûlRST
lNANCINGûITSûACQUISITIONûBYû0ACELINEû%QUITYû
0ROCEEDSûOFûTHEûlNANCINGûWILLûALSOûFUNDû
.OVAESûACQUISITIONûOFûPEERû-IRAGEû4RAILERS
-IDDLEûMARKETûINSURANCEûBROKERAGEû
ASSUREDPARTNERSûLAUNCHEDûAûNON
INCREMENTALû53MûTERMûLOANûTHATûWILLû
PAYûDOWNûITSûREVOLVER
0ARTNERSûFROMû!MERICANû)NDUSTRIALû0ARTNERS 4HEûLOANûWHICHûMATURESûINû&EBRUARYû
DRAWûTERMûLOANûTHATûWILLûFUNDûTHEû 0RICINGûONûTHEûSEVEN
YEARûLOANûISûOFFEREDûATû ûISûOFFEREDûATûBPûOVERû3/&2ûWITHûAû
COMPANYSûBUYOUTûBYûANûINVESTORûGROUPûLEDû BPûOVERû3/&2ûPLUSûAûCREDITûSPREADû ûmOORûANDûANû/)$ûOFûû4HEREûISûNOû
BYû"AINû#APITALûANDû(ELLMANûû&RIEDMANû ADJUSTMENTûWITHûAûûmOORûANDûANû/)$ûOFû CREDITûSPREADûADJUSTMENT
RElNANCEûDEBTûFUNDûWORKINGûCAPITALûANDûBEû 4HEû#3!ûISûOFFEREDûATûBPûFORûONE
MONTHû )TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû
USEDûFORûGENERALûCORPORATEûPURPOSES 3/&2ûBPûFORûTHREE
MONTHû3/&2ûANDûBPû SIXûMONTHS
4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBPn FORûSIX
MONTHû3/&2 Barclays ISûTHEûLEAD
LEFTûBOOKRUNNERûJP
BPûOVERû3/&2ûWITHûAûûmOORûANDûANû )TûCARRIESûûHARDûCALLûPROTECTIONûFORûû MorganûBank of AmericaûMorgan StanleyûBMOû
/)$ûOFûû)TûINCLUDESûûSOFTûCALLû MONTHSûANDûTHEûLOANûWILLûAMORTISEûATûûINû Goldman SachsûRBCûDeutsche BankûMizuhoû
PROTECTIONûFORûSIXûMONTHS
4HEREûWILLûBEûTWOûBPûSTEP
DOWNSûWHENûTHEû ûPERûANNUM
CLOSINGûDATEûlRST
LIENûNETûLEVERAGEûDECREASESûBYû
THEûlRSTûYEARûAFTERûWHICHûITûWILLûSTEPûUPûTOû Credit SuisseûMacquarie and ING AREûJOINTû
BOOKRUNNERS
!ûCOVENANTûRELATEDûTOû!(&û0RODUCTSûTOTALû "ANKûOFû!MERICAûISûALSOûTHEûADMINISTRATIVEû
ûTIMESûANDûûTIMESûRESPECTIVELY NETûLEVERAGEûWILLûAPPLYûTOûTHEûLOAN AGENT
4HEREûWILLûBEûANûADDITIONALûBPûSTEP
4HEûlNANCINGûALSOûINCLUDESûAû53Mû
DOWNûWHENûTHEûCOMPANYûGOESûPUBLIC asset-based loan. EMBECTA SEEKS SPIN-OFF DEAL
4HEû$$4,ûCOMESûWITHûAûTICKINGûFEEûTHATû #ORPORATEûANDûFACILITYûRATINGSûAREû""
KICKSûOFFûATûûOFûTHEûMARGINûONûDAYûû UBSûISûLEAD
LEFTûARRANGERûKeyBanc and Stifel 0RICINGûDETAILSûAREûOUTûONûAû53BNûSENIORû
AFTERûDEALûCLOSEû4HISûWILLûINCREASEûTOûûOFû AREûJOINTûARRANGERS SECUREDûTERMûLOANû"ûTHATûWILLûlNANCEû"ECTONû
THEûMARGINûONûDAYû $ICKINSONûANDû#OMPANYSûSPIN
OFFûOFû
JP Morgan ISûLEADINGûTHEûDEAL PRINCE OUTLINES TERM LOAN EMBECTAûITSûDIABETESûCAREûBUSINESS
4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBPn
AMERICAS LOANS BOOKRUNNERS – FULLY #HEMICALSûANDûMINERALSûMANUFACTURERû BPûOVERû3/&2ûWITHûAûûmOORûANDûANû
SYNDICATED VOLUME PRINCE INTERNATIONALûISûSEEKINGûAûCOVENANT
/)$ûOFûn
BOOKRUNNERS: 1/1/2022 TO DATE LITEû53BNûlRST
LIENûTERMûLOAN )TûCARRIESûûSOFTûCALLûPROTECTIONûFORûSIXû
Managing No of Total Share 4HEûLOANûTOGETHERûWITHûAû53Mû MONTHSûANDûNOûCREDITûSPREADûADJUSTMENTû
bank or group issues US$(m) (%) REVOLVINGûCREDITûFACILITYû53MûINûSENIORû 4HEûLOANûWILLûAMORTISEûATûûPERûANNUM
1 Bank of America 3 1,838.33 23.6 SECUREDûNOTESûANDû53MûINûUNSECUREDû %XPECTEDûCORPORATEûANDûFACILITYûRATINGSûAREû
2 JP Morgan 2 1,038.33 13.3 NOTESûWILLûFUNDûTHEûPURCHASEûANDû "A"
=2 Barclays 2 1,038.33 13.3 COMBINATIONûOFû0RINCEûWITHûPEERSû&ERROûANDû 4HEûLOANûWILLûPROVIDEûTHEûCASHû
=2 Citigroup 2 1,038.33 13.3 #HROMAmOû4ECHNOLOGIES DISTRIBUTIONûTOû"$ûANDûPAYûFEESûANDûEXPENSESû
=2 Mizuho 2 1,038.33 13.3 4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBPnBPû RELATEDûTOûTHEûSPIN
OFF
6 Wells Fargo 2 838.33 10.7 OVERû3/&2ûPLUSûAûCREDITûSPREADûADJUSTMENTûWITHû Morgan StanleyûISûTHEûLEAD
LEFTûARRANGERûANDû
7 HSBC 2 251.99 3.2 AûûmOORûANDûANû/)$ûOFû ADMINISTRATIVEûAGENT
8 Banca IMI 1 213.66 2.7 )TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû JP MorganûCitigroupûWells FargoûMUFGûUS Bank
9 TD Securities 2 117.42 1.5 SIXûMONTHS and BNP ParibasûAREûJOINTûLEADûARRANGERSûCitizens
=9 RBC 2 117.42 1.5 Credit SuisseûBarclaysûGoldman Sachsû BankûSantander and PNC BankûAREûCO
MANAGERS
Total 5 7,803.68 JefferiesûKeyBankûDeutsche BankûHSBC and %MBECTAûWILLûBECOMEûAûPUBLICLYûTRADEDû
Proportional credit Bank of America AREûARRANGINGûTHEûDEAL COMPANYûUPONûCOMPLETIONûOFûTHEûSPIN
OFFû
Source: Refinitiv SDC code: R7 #ORPORATEûANDûFACILITYûRATINGSûAREû""n WHICHûISûEXPECTEDûTOûCLOSEûINûTHEûSECONDûQUARTER

International Financing Review January 22 2022 71

 0HARMACEUTICALûCOMPANYûBAUSCH HEALTH 4HEûlNANCINGûCOMPRISESûAû53Mû 4HEûSECOND
LIENûLOANûISûOFFEREDûATûBPû
LAUNCHEDûAû53BNûSENIORûSECUREDûTERMû FUNGIBLEûINCREMENTALûlRST
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LOANû"ûTHATûALONGûWITHûPROCEEDSûFROMûAû ANDûAû53MûFUNGIBLEûINCREMENTALû û/)$
UNITSûPLANNEDû)0/ûWILLûRElNANCEûDEBT SECOND
LIENûTERMûLOAN #ALLûPROTECTIONûONûTHEûSECOND
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BPnBPûOVERû3/&2ûPLUSûAûCREDITûSPREADû BPûOVERû,IBORûWITHûAûûmOORûANDûANû JP MorganûISûTHEûLEAD
LEFTûARRANGERûANDûALSOû
ADJUSTMENTû4HEû#3!ûISûBPûFORûAûONE
/)$ûOFûn THEûADMINISTRATIVEûAGENTûONûTHEûlRST
LIENû
MONTHûCONTRACTûBPûFORûAûTHREE
MONTHû 4HEûENTIREûAPPROXIMATELYû53Mû loan. Golub CapitalûISûANûARRANGER
CONTRACTûANDûBPûFORûAûSIX
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4HEûLOANûCOMESûWITHûAûûmOORûANDûANû PROTECTIONûRESETûFORûSIXûMONTHS SECOND
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/)$ûOFûû)TûCARRIESûûSOFTûCALLûPROTECTIONû 0RICINGûONûTHEûSECOND
LIENûLOANûISûOFFEREDû #ORPORATEûRATINGSûAREû""nû&IRST
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ADMINISTRATIVEûAGENT LIENûWILLûBEûAPPROXIMATELYû53M
0ROCEEDSûWILLûRElNANCEûALLûOFûTHEûCOMPANYSû #OMMITMENTSûTOûTHEûLOANSûWEREûSIGNEDûINû BAKELITE MARKETS ACQUISITION DEAL
EXISTINGûTERMûLOANû"ûFACILITIESûWHICHûASûOFû
3EPTEMBERûûûCOMPRISEDûAû53BNû
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LIENûTERMûLOANûTOûFUNDûITSû
TERMûLOANû"ûDUEûINû.OVEMBERû
0ACIlCSûCHEMICALSû
4HEûRElNANCINGûISûDESIGNEDûTOûFACILITATEû
THEûSEPARATIONûANDûDISTRIBUTIONûOFû"AUSCHû
LEFTûARRANGERû 0RICINGûONûTHEûSEVEN
YEARûLOANûISûGUIDEDûATû
ûALLOWINGûTHEû,IBORûRATEûTOûBEû
GRANDFATHEREDûINTOûTHISûYEAR #HEMICALSûMAKERûBAKELITEûISûSEEKINGûAû
4HEûCOMPANYûWILLûALSOûINCREASEûITSûREVOLVERû 53MûlRST
TOû53MûASûPARTûOFûTHEûlNANCING ACQUISITIONûOFû'EORGIA
#ORPORATEûRATINGSûAREû""n UNITûANDûRElNANCEûDEBT
Antares CapitalûISûTHEûLEAD
(EALTHSûEYEûHEALTHûBUSINESSû"AUSCHûû BarclaysûBMOûDeutsche BankûHSBCûKKR BPnBPûOVERû3/&2ûPLUSûAûCREDITûSPREADû
,OMBûWHICHûTHEûCOMPANYûISûSPINNINGûOFFû
THROUGHûANû)0/û4HEûRElNANCINGûISûEXPECTEDû
TOûOCCURûONLYûAFTERûTHEû)0/SûCOMPLETION
MONTHû
4HEûlNANCINGûWILLûALSOûBEûUSEDûTOûREDEEMûALLû
Capital MarketsûMUFGûProspect CapitalûRBCû ADJUSTMENTû)TûCOMESûWITHûAûûmOORûANDû
SMBC and Stifel AREûJOINTûLEADûARRANGERS ANû/)$ûOFû
-OBILEûTECHNOLOGYûCOMPANYûSYNIVERSEûISû 4HEû#3!ûISûOFFEREDûATûBPûFORûONE
RAISINGûAû53BNûlRST
LIENûTERMûLOANûTHATû 3/&2ûBPûFORûTHREE
MONTHû3/&2ûANDûBPû
OFûTHEûCOMPANYSûOUTSTANDINGûûSENIORû WILLûRElNANCEûDEBT FORûSIX
MONTHû3/&2
NOTESûDUEûINûûANDûPARTIALLYûREDEEMûITSû 0RICINGûONûTHEûSEVEN
YEARûLOANûISûGUIDEDûATû 4HEûLOANûCARRIESûûSOFTûCALLûPROTECTIONû
OUTSTANDINGûûSENIORûNOTESûDUEûINû BPnBPûOVERû3/&2ûWITHûAûûmOORû FORûSIXûMONTHSû)TûWILLûAMORTISEûATûûPERû
!PPROXIMATELYû53BNûOFûOTHERûSENIORû ANDûANû/)$ûOFû ANNUM
SECUREDûDEBTûSECURITIESûASûWELLûASûPROCEEDSû 4HEûMARGINûCOMESûWITHOUTûTHEûCREDITû 4ICKINGûFEESûOFûûOFûTHEûMARGINûWILLû
FROMû"AUSCH,OMBSû)0/ûANDûTHEûREPAYMENTû SPREADûADJUSTMENTûCOMMONLYûSEENûINû3/&2
APPLYûAFTERûûDAYSûINCREASINGûTOûûAFTERû
OFûANûINTERCOMPANYûNOTEûOWNEDûBYû BASEDûDEALSû(OWEVERûTHEûSPREADûWILLûADJUSTû ûDAYS
"AUSCH,OMBûWILLûALSOûFUNDûTHEûRElNANCINGû BPûUPûORûDOWNûSUBJECTûTOûTHEûCOMPANYSû #ORPORATEûRATINGSûAREû""""ûWHILEû
ANDûNOTEûREDEMPTIONS ABILITYûTOûMEETûCERTAINû%3'
LINKEDûKEYû TRANCHEûRATINGSûAREû"""n""
4HEûûNOTESûREDEMPTIONûISûCONDITIONEDû PERFORMANCEûINDICATORS Goldman SachsûISûTHEûLEAD
LEFTûARRANGERû
UPONûTHEûRECEIPTûOFûAGGREGATEûGROSSûPROCEEDSû 4HEûLOANûALSOûCOMESûWITHûûSOFTûCALLû Deutsche BankûUBSûMacquarie and Jefferies AREû
OFûATûLEASTû53BNûFROMû"AUSCH,OMBSû)0/û PROTECTIONûFORûSIXûMONTHS ALSOûARRANGERS
ITSûDEBTûlNANCINGûTHEûCREDITûAGREEMENTû "OTHûCORPORATEûANDûlRST
LIENûRATINGSûAREû""n %LECTRONICSûMANUFACTURERûEMERALD EMSûISûINû
RElNANCINGûANDû53BNûOFûSENIORûSECUREDû BarclaysûISûTHEûLEAD
LEFTûBOOKRUNNERûANDû THEûMARKETûWITHûAû53MûlRST
LIENûTERMû
DEBTûSECURITIES ADMINISTRATIVEûAGENTûGoldman SachsûMizuhoû LOANûTOûFUNDûITSûACQUISITIONûBYû#RESTVIEWû
4HEûlNANCINGûISûALSOûEXPECTEDûTOûINCLUDEûAû
53MûREVOLVINGûCREDITûFACILITY
YEARûLOANûISûGUIDEDûATû
0RIMARYûCAREûPHYSICIANûGROUPûPHYSICIAN
PARTNERSûISûINûTHEûMARKETûWITHûAû53Mû
lRST
LIENûTERMûLOANûTHATûWILLûSUPPORTûANû
EQUITYûINVESTMENTûINûTHEûCOMPANYûBYû
Bank of AmericaûCredit SuisseûDeutsche Bankû 0ARTNERS
BNP Paribas and Societe GeneraleûAREûJOINTû 0RICINGûONûTHEûSEVEN
BOOKRUNNERS BPûOVERû3/&2ûPLUSûAûCREDITûSPREADû
3YNIVERSEûANNOUNCEDûINû!UGUSTûANû ADJUSTMENTû)TûCOMESûWITHûAûûmOORûANDûANû
AGREEMENTûTOûGOûPUBLICûTHROUGHûAûMERGERû /)$ûOFû
WITHû-
"RIGADEû!CQUISITIONû))û#ORPûAû 4HEû#3!ûISûOFFEREDûATûBPûFORûONE
MONTHû
PRIVATEûEQUITYûlRMû+INDERHOOKû)NDUSTRIES SPECIALûPURPOSEûACQUISITIONûCOMPANYû4HEû 3/&2ûBPûFORûTHREE
MONTHû3/&2ûANDûBPû
4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBP
BPû 30!#ûISûSPONSOREDûBYûlNANCIALûADVISORYûlRMû FORûSIX
MONTHû3/&2
OVERû3/&2ûPLUSûAûCREDITûSPREADûADJUSTMENTûWITHû -û0ARTNERSûANDûINVESTMENTûlRMû"RIGADEû 4HEûLOANûCARRIESûûSOFTûCALLûPROTECTIONû
AûûmOORûANDûANû/)$ûOFûû)TûCOMESûWITHûû #APITALû-ANAGEMENT FORûSIXûMONTHS
SOFTûCALLûPROTECTIONûFORûSIXûMONTHS 3OFTWAREûCOMPANYûPRECISELYûISûINûTHEû 4HEûCREDITûAGREEMENTûINCLUDESûAûCOVENANTû
4HEû#3!ûISûBPûFORûONE
MONTHû3/&2û MARKETûWITHûAûLOANûTHATûWILLûFUNDûITSû RELATEDûTOûTHEûBORROWERSûTOTALûNETûLEVERAGE
BPûFORûTHREE
MONTHû3/&2ûANDûBPûFORûSIX
ACQUISITIONûOFûPEERû0LACE)1ûANDûPAYûDOWNûAû #ORPORATEûANDûFACILITYûRATINGSûAREû""n
MONTHû3/&2 REVOLVERûDRAW UBS ISûTHEûLEAD
LEFTûARRANGERûFORûTHEû
Credit Suisse and Truist AREûARRANGINGûTHEû 4HEûlNANCINGûCOMPRISESûAû53Mû TRANSACTIONûBarclaysûISûAûJOINTûBOOKRUNNER
DEALûWHICHûALSOûINCLUDESûAû53Mû FUNGIBLEûINCREMENTALûlRST
LIENûTERMûLOANû ATHLETICO PHYSICAL THERAPYûISûRAISINGûAû
REVOLVINGûCREDITûFACILITY DUEûINû!PRILûûANDûAû53MûFUNGIBLEû 53MûTERMûLOANû"ûTOûFUNDûITSûACQUISITIONû
#ORPORATEûANDûFACILITYûRATINGSûAREû"" INCREMENTALûSECOND
LIENûTERMûLOANûDUEûINû OFûPEERû0IVOTû(EALTHû3OLUTIONSûFROMû
DESSERT LAUNCHES M&A DEAL
LIENûLOANûISûOFFEREDûATûBPûOVERû
YEARûLOANûISûOFFEREDûATûBPn
&OODûANDûBEVERAGEûCOMPANYûDESSERT
HOLDINGSûLAUNCHEDûAû53MûlNANCINGûTOû
!PRILû INVESTMENTûlRMû0ENNANT0ARKûRElNANCEû
4HEûlRST
debt and add cash to the balance sheet.
,IBORûWITHûAûûmOORûANDûANû/)$ûOFûn 4HEûSEVEN
 BPûOVERû3/&2ûPLUSûAûCREDITûSPREADû
3OFTûCALLûPROTECTIONûOFûûONûTHEûlRST
LIENû ADJUSTMENTûWITHûAûûmOORûANDûANû/)$ûOFû
FUNDûITSûACQUISITIONûOFûPEERû3TEVENû#HARLES LOANûROLLSûOFFûINû!PRIL n

72 International Financing Review January 22 2022

 LOANS LEVERAGED LOANS

4HEû#3!ûISûOFFEREDûATûBPûFORûONE MONTHû 4HEû#3!ûISûOFFEREDûATûBPûFORûONE MONTHû 0EPSI#OûANNOUNCEDûINû!UGUSTûTHEûSALEûOFû

3/&2ûBPûFORûTHREE
MONTHû3/&2ûANDûBPû 3/&2ûBPûFORûTHREE
MONTHû3/&2ûANDûBPû 4ROPICANAûANDûOTHERû.ORTHû!MERICANûJUICEû
FORûSIX
MONTHû3/&2 FORûSIX
MONTHû3/&2 BRANDSûTOû0!)û0ARTNERSûFORû53BNû!SûPARTû
)TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû )TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû OFûTHEûTRANSACTIONû0EPSI#OûWILLûRETAINûû
SIXûMONTHS SIXûMONTHS OWNERSHIPûINûAûJOINTûVENTUREûWITHû0!)ûWHILEû
Bank of AmericaûISûTHEûLEAD
LEFTûARRANGERû JefferiesûAntares Capital and KKR Capital THEûPRIVATEûEQUITYûlRMûWILLûOWNû
BMO ISûALSOûANûARRANGER MarketsûAREûBOOKRUNNERS 3OFTWAREûPROVIDERûQUEST SOFTWAREûWRAPPEDû
#ORPORATEûRATINGSûAREû"" 4HEûTRANSACTIONûINCLUDESûAûlVE
YEARû THEûlNANCINGûFORûITSûACQUISITIONûBYû#LEARLAKEû
53MûREVOLVINGûCREDITûFACILITY #APITALûFROMû&RANCISCOû0ARTNERS
VIVID SEATS LAUNCHES A&E 2ESTAURANTûFRANCHISORûINSPIRE BRANDSûISû 4HEûCOMPANYûINCREASEDûTHEûSIZEûOFûITSûlRST

REPRICINGûAû53BNûlRST
LIENûTERMûLOANû" LIENûTERMûLOANû"ûTOû53BNûFROMû53BNû
/NLINEûTICKETûMARKETPLACEûVIVID SEATSûISûINû 4HEûLOANûWHICHûMATURESûONû$ECEMBERûû ANDûREDUCEDûTHEûSIZEûOFûTHEûSECOND
LIENûTERMû
THEûMARKETûWITHû53MûAMEND
AND
ûISûOFFEREDûATûBPûOVERû3/&2ûPLUSûAû LOANûTOû53MûFROMû53M
EXTENDûlRST
LIENûTERMûLOANûTOûRElNANCEûITSû CREDITûSPREADûADJUSTMENTûATûPARûWITHûAû 4HEûSEVEN
YEARûlRST
LIENûLOANûPRICEDûATû
53MûlRST
LIENûTERMûLOAN ûmOOR BPûOVERû3/&2ûPLUSûAûCREDITûSPREADû
0RICINGûONûTHEûSEVEN
YEARûLOANûISûOFFEREDû 4HEû#3!ûISûOFFEREDûATûBPûFORûONE
MONTHû ADJUSTMENTûOFûBPûUNDERûAûONE
MONTHû
ATûBPûOVERû3/&2ûWITHûAûûmOORûANDûANû 3/&2ûBPûFORûTHREE
MONTHû3/&2ûANDûBPû CONTRACTûBPûUNDERûAûTHREE
MONTHû
/)$ûOFû FORûSIX
MONTHû3/&2 CONTRACTûANDûBPûUNDERûAûSIX
MONTHû
)TûCARRIESûûSOFTûCALLûPROTECTIONûFORûSIXû Barclays ISûTHEûLEAD
LEFTûBOOKRUNNERûANDû CONTRACTû)TûWASûPREVIOUSLYûGUIDEDûATûBPn
MONTHS ADMINISTRATIVEûAGENT BPûOVERû3/&2ûWITHûNOû#3!
#ORPORATEûANDûlRST
LIENûRATINGSûWEREûBOTHû 4HEûCOMPANYûISSUEDûTHEû53BNûLOANû 4HEûMARGINûWILLûSTEPûDOWNûBYûBPûINûTHEû
UPGRADEDûTOû"A"ûFROMû"" ATûBPûOVERû,IBORûWITHûAûûmOORûINû EVENTûOFûANû)0/û4HEûCOMPANYûREMOVEDûAû
Barclays ISûTHEûLEAD
LEFTûARRANGERûANDû $ECEMBERû PREVIOUSLYûOFFEREDûSTEPDOWNûOFûBPûATûû
ADMINISTRATIVEûAGENTûBank of Americaû TIMESûINSIDEûCLOSINGûDATEûlRST
LIENûLEVERAGE
CitigroupûCredit SuisseûDeutsche Bank and RBC
LIENûLOANûCOMESûWITHûAûûmOORû
AREûJOINTûBOOKRUNNERS
4HEûCOMPANYûWILLûALSOûUSEûCASHûFROMûITSû
BALANCEûSHEETûTOûFUNDûTHEûRElNANCING
%NGINEERINGûCOMPANYûEAST WEST
YEARûSECOND
LIENûLOANûPRICEDûATû
MANUFACTURINGûLAUNCHEDûAû53MûTERMû
LOANû"ûANDûAû53MûDELAYEDûDRAWûTERMû
LIENûTERMû GUIDEDûATûBPnBPûOVERû3/&2ûWITHûNOû
LOANûTHATûWILLûFUNDûITSûBUYOUTûBYûINVESTMENTû
TROPICANA WRAPS JV LOANS 4HEûlRST
ANDûANû/)$ûOFûûFROMûnû)TûCARRIESûû
*UICEûMAKERûTROPICANAûCOMPLETEDûAû SOFTûCALLûPROTECTIONûFORûSIXûMONTHSûANDûWILLû
53BNûLOANûPACKAGEûlNANCINGûAûJOINTû AMORTISEûATûûPERûANNUM
VENTUREûBETWEENû0EPSI#OûANDû&RENCHû 4HEûEIGHT
PRIVATEûEQUITYûlRMû0!)û0ARTNERS BPûOVERû3/&2ûWITHûTHEûSAMEû#3!û)TûWASû
4HEûlNANCINGûCOMPRISESûAûlRST
LOANûSPLITûBETWEENûAûFUNDEDû53BNûTRANCHEû CSA.
lRMû-3$û0ARTNERS ANDûAû53MûDELAYEDûDRAWûTERMûLOANûASûWELLû 4HEûSECOND
LIENûLOANûCOMESûWITHûAûû
4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBPn ASûAû53MûSECOND
LIENûTERMûLOAN mOORûANDûANû/)$ûOFûûFROMûnû(ARDû
BPûOVERû3/&2ûWITHûAûûmOORûANDûANû 4HEûCOMPANYûINCREASEDûTHEûFUNDEDû CALLûPROTECTIONûONûTHEûSECOND
LIENûLOANûWILLû
/)$ûOFû TRANCHEûFROMûITSûORIGINALûSIZEûOFû53BNû KICKûOFFûATûûBEFOREûDROPPINGûTOû
)TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû WHILEûTHEû$$4,ûWASûREDUCEDûFROMûITSû #ORPORATEûRATINGSûAREû""nû&IRST
LIENû
SIXûMONTHS ORIGINALûSIZEûOFû53Mû4HEûSECOND
LIENû RATINGSûAREû""nûWHILEûSECOND
LIENûRATINGSû
KeyBankûING and TD AREûARRANGINGûTHEû TERMûLOANûALSOûDECREASEDûFROMûTHEûORIGINALû AREû#AA###
DEALûWHICHûALSOûINCLUDESûAû53Mû AMOUNTûOFû53M Goldman Sachs WASûLEAD
LEFTûARRANGERûONû
REVOLVINGûCREDITûFACILITY 0RICINGûONûTHEûSEVEN
YEARûlRST
LIENûLOANûISû THEûlRST
LIENûTERMûLOANûWHILEûMorgan Stanley
3TAFlNGûCOMPANYûVACOûPRICEDûAû53Mû BPûOVERû3/&2ûPLUSûAûBPûCREDITûSPREADû LEDûTHEûSECOND
LIENû4HEûOTHERûARRANGERSûAREû
lRST
LIENûTERMûLOANûTHATûWILLûREPAYûDEBTûANDû ADJUSTMENTûTIGHTERûTHANûTHEûGUIDANCEûOFû Bank of AmericaûBMOûBarclaysûCitiûCredit
MAKEûAûSHAREHOLDERûDISTRIBUTION BP SuisseûGolub CapitalûHSBCû3ECURITYû"ENElTû
4HEûSEVEN
YEARûLOANûlRMEDûATûBPûOVERû 4HEûLOANûCOMESûWITHûAûûmOORûANDûANû Wells FargoûCitizensûClearlake CapitalûAntares
3/&2ûPLUSûAûCREDITûSPREADûADJUSTMENTûWITHûAû /)$ûOFûûTIGHTENEDûFROMûnû)Tû CapitalûDeutsche BankûCBAMûBNP Paribasû
ûmOORûANDûANû/)$ûOFû CARRIESûûSOFTûCALLûPROTECTIONûFORûSIXû Silicon Valley BankûUBS and SPC Capital Markets.
MONTHSû4ICKINGûFEESûONûTHEû$$4,ûSTARTûATû
US LEVERAGED LOANS ûOFûTHEûMARGINûAFTERûûDAYSûTHENûû GRIFFON TIGHTENS MARGIN ON TLB
BOOKRUNNERS: 1/1/2022 TO DATE OFûTHEûMARGINûAFTERûûDAYS
Managing No of Total Share 0RICINGûONûTHEûEIGHT
YEARûSECOND
LIENûTERMû -ANUFACTURERûGRIFFONûTIGHTENEDûTHEûMARGINû
bank or group issues US$(m) (%) LOANûISûBPûOVERû3/&2ûPLUSûAûBPû#3!û ONûAû53MûTERMûLOANû"ûTHATûWILLûFUNDûITSû
1 HSBC 1 38.33 8.3 FROMûGUIDANCEûOFûBP 53MûACQUISITIONûOFûCEILINGûFANûSUPPLIERû
=1 Goldman Sachs 1 38.33 8.3 4HEûLOANûCOMESûWITHûAûûmOORûANDûANû (UNTERû&ANûFROMû-ID/CEANû0ARTNERS
=1 JP Morgan 1 38.33 8.3 /)$ûOFûûTIGHTENEDûFROMûINITIALûGUIDANCEû 4HEûSEVEN
YEARûLOANûWASûPRICEDûATûBPûOVERû
=1 Citizens Finl Group 1 38.33 8.3 OFûû(ARDûCALLûPROTECTIONûKICKSûOFFûATûû 3/&2ûPLUSûAûCREDITûSPREADûADJUSTMENTûFROMû
=1 Wells Fargo 1 38.33 8.3 BEFOREûDROPPINGûTOû BPûOVERû3/&2ûPLUSûAû#3!ûATûLAUNCHû4HEû#3!û
=1 TD Securities 1 38.33 8.3 #ORPORATEûRATINGSûAREû""û&ACILITYûRATINGSû ISûBPûFORûONE
MONTHû3/&2ûBPûFORûTHREE

=1 Barclays 1 38.33 8.3 AREû"A"ûANDûSECOND
LIENûRATINGSûAREû" MONTHû3/&2ûANDûBPûFORûSIX
MONTHû3/&2
=1 Mizuho 1 38.33 8.3 ### )TûCOMESûWITHûAûûmOORûANDûAûû/)$û
=1 RBC 1 38.33 8.3 Credit SuisseûWASûLEAD
LEFTûARRANGERûONûTHEû FROMûINITIALûGUIDANCEûOFûn
=1 Citigroup 1 38.33 8.3 lRST
LIENûLOANûWHILEûBank of America led the 4HEûLOANûCARRIESûûSOFTûCALLûPROTECTIONû
Total 1 460.00 SECOND
LIENûLOANûRabobankûBarclaysûRBCû FORûSIXûMONTHS
Excluding Project Finance. CitigroupûJefferies and Sumitomo Mitsui AREûALSOû #ORPORATEûRATINGSûAREû""û&ACILITYû
Source: Refinitiv SDC code: P2 ARRANGERS RATINGSûAREû"A""

International Financing Review January 22 2022 73

 4HEûCOVENANT LITEûLOANûWHICHûMATURESûONû

TDC set to hit market with
jumbo refi
„ EUROPE Nuuday and TDC Net are set to get two new capital structures
Danish telecoms company TDC GROUP is teeing
up a jumbo financing package to refinance its
capital structure after the company finalised the
LIENûTERMûLOANû"ûBACKINGûITSû
split of its business last year.
Banks on the refinancing are expected to
include Deutsche Bank and Goldman Sachs,
according to sources. TDC’s debt stack totalled
more than €7.1bn-equivalent across loans and
bonds as of September 2021, across issuers
TDC Group and DKT Holdings, according to a
financial report from the company.
LIENûTERMûLOANûTHATûWILLûFUNDû
Market participants say that the refinancing has
been well-flagged since Macquarie-owned TDC first
announced its intention to split its business into two
Meanwhile, TDC Net’s financing could be
ring-fenced with infrastructure assets, which
would allow the company to achieve ratings in
the BBB–/BB+ area, despite higher leverage,
which is expected to be in the 6–6.5 times
area.
Estimates on when the financing might come
have varied among sources, with one saying
it was expected as early as this month, while
another said it was more likely a second-quarter
event.
A high-yield bond investor said that he was
likely to participate in the TDC Net financing,
despite what is likely to be a high leverage
-AYûûûWASûPRICEDûATûBPûOVERû,IBORû
WITHûAûûmOOR
)TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû
SIXûMONTHSûANDûAMORTISESûATûûPERûANNUM
4HEûLOANûWILLûCOMBINEûWITHûANûEXISTINGû
TERMûLOANû"ûTOûFORMûAû53MûTRANCHE
Morgan StanleyûWASûTHEûSOLEûBOOKRUNNERû
ANDûADMINISTRATIVEûAGENT
#ORPORATEûANDûFACILITYûRATINGSûAREû""
4HEûCOMPANYûISSUEDûAû53MûSEVEN
YEARûGREENûlRST
BUYOUTûBYûPRIVATEûEQUITYûlRMû%NERGYû#APITALû
0ARTNERSûINû!PRILûû)TûWASûONEûOFûTHEûlRSTû
GREENûTERMûLOANSûOUTSIDEûOFûTHEûRENEWABLEû
ENERGYûSECTORûANDûTHEûlRSTûGREENû4,"ûINûTHEû
53ûLEVERAGEDûLOANûMARKETûBACKINGûAûBUYOUT
3TAFlNGûCOMPANYûADDISONûSWITCHEDû
BENCHMARKSûTOû3/&2ûFROMû,IBORûONûAû
53MûlRST
ITSûBUYOUTûBYûPRIVATEûEQUITYûlRMû4RILANTICû
.ORTHû!MERICA
#OMMITMENTSûONûTHEûLOANûWEREûSIGNEDûINû
standalone entities: network provider TDC Net, and multiple. ûCAUSINGûTHEû,IBORûRATEûTOûBEû
Nuuday, the company’s cable TV and broadband “As an infrastructure asset, TDC Net is a GRANDFATHEREDûINTOû
arm. It is expected to include both loans and bonds. more sleep-at-night asset from a fundamental 4HEûSEVEN
YEARûLOANûWASûPRICEDûATûBPû
The plan is to push TDC’s holdco debt down
to the two operating companies. At present,
the company’s debt that sits at the holdco
level includes: TDC A/S, which has senior
DOWNûTOûBPû
secured term loans B and IG-style bonds (rated
LIENûLEVERAGEû
B+/B1/BB+), and DKT Finance, which holds
subordinated high-yield bonds (CCC+/Caa1/B–).
Nuuday and TDC Net are set to get two new
capital structures, with TDC Net expected to
perspective. You don’t have to worry about
whether the company has lost or made market
share. It’s a better business, and so it can handle
more debt and therefore will be more leveraged.
That’s the sort of business I’d love to lend
against.”
The first source said that some of the existing
subordinated high-yield bonds at issuer DKT
and investment-grade-style bonds at TDC A/S
OVERû3/&2ûWITHûAûûmOORûCOMPAREDûWITHû
BPûOVERû,IBORûATûLAUNCHû4HEû/)$ûWASû
TIGHTENEDûTOûûFROMû
4HEREûWILLûBEûAûBPûSTEP
OVERû3/&2ûWHENûTHEûNETûlRST
REACHESûûTIMES
)TûCOMESûWITHûûSOFTûCALLûPROTECTIONûFORû
SIXûMONTHS
KKR Capital Markets and Credit Suisse led the
carry most of the leverage as the stronger asset.
YEARû
Market players speculated that the plan could
BASEDûLENDINGûFACILITY
eventually be to sell Nuuday.
Nuuday is expected to get ratings in the Single
LIENûTERMûLOANûTOû53MûFROMû
B area, and leverage of around 4 times, said one
source.
YEARûLOANûWASû
could remain in place due to potential leverage
constraints at the OpCo. One £425m bond at
TDC A/S is not callable, maturing only next year
in 2023. Otherwise all other debt is likely to be
refinanced, he said.
Eleanor Duncan
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 LOANS LEVERAGED LOANS

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International Financing Review January 22 2022 75

 Bankers eye repricings as leveraged
loan demand surges
„ EUROPE Market has seen a big increase in inflows
As demand for leveraged loans surges ahead of
expected rate rises, some bankers are already
pitching repricings to borrowers that have seen
their loans trade above par in secondary.
The loan market has seen an increase in
inflows as investors look to buy up floating-rate
instruments in order to protect themselves
against both a high-inflationary environment
and rising rates.
Meanwhile, CLOs, the engines of leveraged
loan demand, are looking to buy up assets after
record levels of formation last year, bankers said.
Triple A tranches of CLOs are being marketed at
around 93bp – some of the tightest execution
levels the market has seen since October 2019.
Talk is that there are around 60 separate active
warehouses, which is up by at least 10 from last
year.
“It’s the year of leveraged loans. People are
super bulled up and floating rate is where it’s
going to be,” said a senior leveraged finance
banker. “We’ve already been pitching multiple
repricings.”
Leveraged loan investors are taking down
supply in the market with ease, and some
market players are already questioning whether
there will be enough primary volumes to satiate
demand.
“I think we’re at that inflection point where
we’ll continue to see decent volumes and if the
demand continues to be as strong as it is – and
I’m sure loan investors don’t want to hear this –
but I think you’ll start to see repricings,” said a
second banker.
Ceramtec’s (B3/B) move to rejig the debt
package backing its acquisition by BC Partners
and CPP Investments in favour of loans is a
sign of things to come in terms of demand, said
bankers. The seven-year term loan B (B2/B)
was upsized by €50m to €1.48bn, and landed at
375bp over Euribor. Meanwhile, the downsized
€465m fixed-rate bond (Caa2/CCC+) landed at
5.25%.
“The fact that it had a B3 corp rating but was
able to pierce through 400bp is representative
of how strong the tone and demand is for loans,”
said the second banker. “Given how big the
demand for the loan was, [the rejig] was a no-
brainer.”
EYES ON PERFORMERS
Bankers pitching repricings are likely to target
Covid-impacted companies that raised loans in
2019 at higher spreads, and then performed well
on the back of reopening trends, said the first
banker. Those names now have a decent chance
of repricing lower, he said.
But there are also a number of other
performing credits that priced with coupons of
over 400bp over Euribor that have seen their
loans surge above par in secondary in recent
weeks.
Some examples include the UK’s Advanz
Pharma, which has a €297m term loan B
maturing in 2028 with pricing of 500bp over
Euribor which was seen offered at 100.688 on
January 19, according to Refinitiv data. And
Finnish sporting goods company Amer Sports
has a €1.7bn TLB maturing in 2026 at 450bp
over Euribor which was seen offered at 100.58.
Still, while the US dollar market has already
seen a number of repricings, it may be a while
until they find their way to the European market,
said bankers.
“I’m not sure that the market has validated
enough of the basic repricing levels,” said the
first banker. “If [primary] gets back to 325bp–
350bp, then we might see something move
on that front. But there probably hasn’t been
enough of a move in the market for your regular
repricing. My number one focus right now is
M&A and LBOs. That’s what we’re chasing and
where we’re spending most of our time.”
In addition, the next couple of weeks are
expected to be fairly busy in terms of supply, said
bankers.
“I think it would be fairly ballsy for anyone to
come out with a repricing particularly as there
are so many deals about to hit the market,”
said a third banker. “But I wouldn’t rule it out. If
conditions remain good and supply fades down
a bit, they might come, but it’s not top of my list.”
Eleanor Duncan

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76 International Financing Review January 22 2022

 LOANS LEVERAGED LOANS

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International Financing Review January 22 2022 77

 Imagina starts lock-up talks with creditors
„ SPAIN Subordinated shareholder loan covers working capital needs
Spanish sports media group IMAGINA MEDIA
AUDIOVISUAL has received a €120m subordinated
shareholder loan to shore up its liquidity, as it
starts negotiating with its creditors to lock them
into a €1bn debt restructuring agreement.
Imagina and its shareholders agreed the
restructuring deal in December, and formal
negotiations to lock its creditors into the deal are
set to begin.
An up to €150m subordinated shareholder
loan, essentially a liquidity injection to cover
company’s immediate working capital needs,
was agreed as part of the proposed restructuring
transaction, and so far €120m has been made
available to Imagina.
“This has stabilised the company for now
and put it on a good footing financially,” said
one source close to the situation. “They do
have €150m available but just took what they
calculated they needed. It’s just under €120m
and it covers its working capital needs for now.”
At the end of last year, the company’s shareholders
– comprising majority owners Chinese private
equity firm Orient Hontai Capital, founders Jaume
Roures and Tatxo Benet and British advertising giant
WPP, alongside a limited partner to OHC, Chinese
billionaire Hao Tang – agreed a €620m equity raise to
sort out the company’s financial woes.
OHC acquired a 54% majority stake in
Imagina in July 2018 backed by a €920m loan,
comprising a €380m seven-year term loan B
due in 2024, a €300m six-year amortising term
loan A due in 2025, a €180m senior secured
second-lien facility also due in 2025, and a fully
drawn €60m revolving credit facility.
Once the €620m equity raise is finalised,
€470m will be used to pay down some of the
€680m first-lien debt, and the €150m loan will
be converted into equity. The remaining €210m
first-lien debt will be extended or refinanced.
The €180m second-lien debt will eventually
be repaid at par or refinanced once the company
is on a stable footing again.
The group’s second-lien creditors, Searchlight
and Invesco, which acquired the company’s
€180m second-lien debt at a discount last
June, have also been vying for ownership of the
business, and they have tabled a circa €500m
deal that includes the equitisation of the second-
lien debt and a capital injection of €150m.
Under the terms of the agreed deal, the
company will go to the shareholders in the first
instance, and if they fail to provide the cash as
agreed, it will revert to Searchlight and Invesco.
“The lock-up agreement is not complicated,
creditors aren’t being asked to take a lot of risk so it
should not take long to agree,” the source said.
The first-lien lenders are being advised
by Houlihan Lokey. Searchlight and Invesco
are being advised by Lazard, with Rothschild
advising the company.
The company has been struggling with
high leverage, which ratings agency Moody’s
estimated at eight times in 2020, and weak
liquidity that was exacerbated by the pandemic,
which has impacted live sports events. The
restructuring deal would reduce Imagina’s
leverage to around three times Ebitda.
Sandrine Bradley

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78 International Financing Review January 22 2022

 EQUITIES
Australia  China  India  Japan  South Korea  France  Germany  Israel 
Italy  Spain  UK  United States  Structured Equity 

„ FRONT STORY US

Credo launches US$300m IPO

Chipmaker focuses on management, not China links
High-speed internet chipmaker CREDO PROVIDEDûBYûHIGH
POWEREDûCORNERSTONEû the largest asset managers in the US and a
TECHNOLOGY pushed ahead with its US$300m DEMANDûANDûTHEûIMPRESSIVEûRECORDûOFû GIANTûSOVEREIGNûWEALTHûFUNDûVALIDATINGûTHEû
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PEDIGREEûOFûMANAGEMENTûTHEûVALIDATIONû MISPRICINGûDEALSûBUTûWHENûYOUûHAVEûTWOûOFû Anthony Hughes

Auto1 shareholders to coordinate

Three sponsors will sell together, once the share price recovers
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that comes as shares are trading at less UPPINGûTHEIRûCOMMITMENTSûCOVERAGEû agreement is not an indication that we are
than half the price of its IPO nearly a year in minutes, pricing at the top of the LOOKINGûTOûSELLûRIGHTûNOWvûTHEû
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CAPITALûCOMPANIESûAREûEXPECTEDûTOûREDUCEû DEBUTûCLOSEûOFûõûTHEûHIGHûPOINTûFORûTHEû They will sell together and if any chooses
their stakes as the company matures and STOCKûYETûTHEûGAINûWASûSOûLARGEûTHATû!""Sû NOTûTOûPARTICIPATEûTHATûlRMûWILLûNOTûSELLûFORû
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!UTOûSHARESûHAVEûFALLENûSTEADILYûSINCEû PRE )0/ûINVESTORSûATûõûANDûõ Robert Venes

International Financing Review January 22 2022 79

 the world and intends to focus on )0/ûOFûUPûTOû2SBNû53M ûLOWERûTHANû
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METALSûHASûRAISEDû!Mû53M ûFROMûAû 4HEûSPONSORûANDû%ARLY"IRD#APITALûHAVEû 2SBNûUPûûFROMû2SBNûINûû.ETû
NON
UNDERWRITTENûINSTITUTIONALûPLACEMENT COMMITTEDûFORûAûPRIVATEûPLACEMENTûOFû PROlTûROSEûûTOû2SBNûFROMû2SBN
4HEûDEALûRECEIVEDûSTRONGûSUPPORTûFROMû 53M !DANIû7ILMARûPRODUCESûSOYAûBEANû
MOREûTHANûûHIGH
QUALITYû!USTRALIANûANDû EarlyBirdCapital and Haitong International SUNmOWERûMUSTARDûANDûRICEûBRANûEDIBLEûOILSû
INTERNATIONALûINSTITUTIONALûINVESTORS AREûTHEûJOINTûBOOKRUNNERS )TûALSOûSELLSûPACKAGEDûBASMATIûRICEûPULSESû
)TûSOLDûMûSHARESûATû!ûEACHûORûAû
DISCOUNTûOFûûTOûTHEûCLOSINGûPRICEûOFû
!ûONû*ANUARYû
The company will use the proceeds for
EXPLORATIONûPROJECTSûANDûGENERALûWORKINGû
CAPITAL
Argonaut Securities and Sprott Capital
BACKEDûONLINEûLOGISTICSûlRM
PartnersûWEREûTHEûJOINTûLEADûMANAGERS
CHINA
SOYAûCHUNKSûANDûWHEATûmOUR
Bank of America, Credit Suisse, JP Morgan and
INDIA Kotak AREûTHEûJOINTûGLOBALûCOORDINATORSûANDû
BOOKRUNNERSûWITHûBNP Paribas, HDFC Bank
DELHIVERY GETS APPROVAL FOR IPO and ICICI Securities
3OFT"ANK
FRACTAL ANALYTICS MEETS BANKS FOR IPO
DELHIVERY RECEIVEDûREGULATORYûAPPROVALûFORûAû
2SBNû53M û)0/ûTHATûITûMAYûLAUNCHû !RTIlCIALûINTELLIGENCEûCOMPANYûFRACTAL
ASûEARLYûASûTHISûMONTH ANALYTICS ISûMEETINGûBANKSûTOûlNALISEûTHEû
0RIMARYûSHARESûTOTALLINGû2SBNûANDû SYNDICATEûFORûAû53MnMûDOMESTICû
2SBNûOFûSECONDARYûSHARESûWILLûBEûONû )0/ûPLANNEDûFORûNEXTûYEARûPEOPLEûWITHû
AINNOVATION PRICES IPO AT THE BOTTOM OFFER KNOWLEDGEûOFûTHEûTRANSACTIONûSAID
$ELHIVERYûWASûFOUNDEDûINûûANDûITSû "OTHûPRIMARYûANDûSECONDARYûSHARESûAREû
QINGDAO AINNOVATION TECHNOLOGYûAû3OFT"ANK
INVESTORSûINCLUDEû3OFT"ANKû4HEû#ARLYLEû LIKELYûTOûBEûOFFERED
BACKEDû#HINESEûARTIlCIALûINTELLIGENCEû 'ROUPû&IDELITYû&OSUNû)NTERNATIONALûANDû 4HEûCOMPANYûWASûCO
FOUNDEDûBYûGROUPû
start-up, has priced its Hong Kong IPO at the 4IGERû'LOBAL CHIEFûEXECUTIVEû3RIKANTHû6ELAMAKANNIûANDû
BOTTOMûOFûTHEûRANGEûTOûRAISEû(+BNû $ELIû#-&ûAû&OSUNû'ROUPûSUBSIDIARY û36&û #%/û0RANAYû!GRAWALû/THERûINVESTORSû
53M û $OORBELLû3OFT"ANK û#!û3WIFTû)NVESTMENTSû INCLUDEû!PAXû0ARTNERSûANDû40'û#APITALû!SIAû
4HEûCOMPANYûMARKETEDûMûPRIMARYû #ARLYLE ûANDû)NDIASû4IMESû)NTERNETûAREû 4HEûLATTERûISûINûTHEûPROCESSûOFûINVESTINGû
SHARESûFORûANûûFREE
mOATûATû(+n AMONGûTHEûVENDORS 53MûINûTHEûlRMûATûAûVALUATIONûOFû
ûPERûSHARE $ELHIVERYûHADûTOTALûINCOMEûOFû2SBNûINû AROUNDû53BN
The low-end pricing represents a 2022 THEûYEARûTOû-ARCHûûUPûûFROMû2SBNû Fractal has more than 3,500 employees
ENTERPRISEûVALUE
TO
SALESûOFûûTIMESûANDûAû INû&9û)TSûNETûLOSSûWIDENEDûûTOû GLOBALLYûINCLUDINGûINûTHEû53ûTHEû5+û
ûPRICE
TO
SALESûOFûûTIMES 2SBNûFROMû2SBN 5KRAINEû)NDIAû3INGAPOREûANDû!USTRALIA
3OFT"ANKûISûSUBSCRIBINGûTOûAROUNDû Bank of America, Citigroup, Kotak and Morgan 4HEûCOMPANYûCOULDûNOTûBEûREACHEDûFORûAû
53MûOFûSHARESûASûAûCORNERSTONEûINVESTORû StanleyûAREûTHEûLEADûMANAGERS COMMENT
WHILEû,AURIONû#APITALû-ASTERû&UNDûHASû
PLEDGEDû53M ADANI WILMAR DOWNSIZES IPO BOAT LIFESTYLE PLANS IPO
The shares will start trading on January
 %DIBLEûOILûMAKERûADANI WILMAR has set the Consumer electronics maker BOAT LIFESTYLE
!)NNOVATIONûPOSTEDûAûNINE
MONTHûLOSSûOFû PRICEûRANGEûATû2Sn2SûAûSHAREûFORûANû PLANSûTOûlLEûFORûAû2SBNn2SBNû
2MBMû53M ûINûûCOMPAREDû
WITHûAû2MBMûLOSSûAûYEARûEARLIER ASIA-PACIFIC EQUITIES ASIA-PACIFIC EQUITIES (EX-JAPAN)
CICC, China Renaissance and UBS are the BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE
SPONSORS Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues US$(m) (%)
KEYARCH FILES FOR SPAC IPO 1 Morgan Stanley 5 1,422.68 7.5 1 Citic 6 1,162.61 6.8
2 Bank of America 2 1,294.54 6.8 2 Morgan Stanley 3 1,092.55 6.4
KEYARCH ACQUISITION CORP, a special purpose 3 Citic 6 1,162.61 6.1 3 Goldman Sachs 2 1,027.17 6.1
acquisition company, plans to raise 4 Goldman Sachs 2 1,027.17 5.4 4 Mirae Asset Daewoo 2 1,022.88 6.0
53MûFROMûAû.ASDAQû)0/ 5 Mirae Asset Daewoo 2 1,022.88 5.4 5 Shinyoung Securities 2 998.15 5.9
4HEûCOMPANYûBACKEDûBYû'REATERû#HINA
6 Shinyoung Secs 2 998.15 5.3 6 Daishin Securities 2 985.21 5.8
focused asset management company Keywise 7 Daishin Securities 2 985.21 5.2 7 Citigroup 1 977.22 5.8
#APITALûSAIDûINûAûlLINGûITûINITIALLYûWOULDûNOTû 8 Citigroup 1 977.22 5.1 =7 HI Investment & Secs 1 977.22 5.8
COMBINEûWITHûAûTARGETûTHATûISûBASEDûINûORûWITHû =8 HI Investment & Secs 1 977.22 5.1 =7 KB Financial Group 1 977.22 5.8
ITSûPRINCIPALûBUSINESSûOPERATIONûINû#HINAû =8 Shinhan Fnl Grp 1 977.22 5.1 =7 Hana Financial Grp 1 977.22 5.8
INCLUDINGû(ONGû+ONGûANDû-ACAU  Total 103 18,978.53 Total 94 16,973.38
)TûMAYûTARGETûDISRUPTIVEûTECHNOLOGYûANDû Including all domestic and international deals and rights issues Including all domestic and international deals and rights issues
INNOVATIVEûSERVICESûCOMPANIESûANYWHEREûINû Source: Refinitiv SDC code: C4a1 Source: Refinitiv SDC code: C4a2

80 International Financing Review January 22 2022

 EQUITIES ASIA-PACIFIC

53MnM û)0/ûTHISûMONTHûPEOPLEû INDICATIVEûPRICEûOFûcûPERûSHAREûWITHûAû Founded in 2000, the company specialises
WITHûKNOWLEDGEûOFûTHEûTRANSACTIONûSAID
"OTHûPRIMARYûANDûSECONDARYûSHARESûWILLû
BEûSOLD
Axis Capital, Bank of America, Credit Suisse
and ICICI Securities AREûTHEûBANKSûONûTHEû
GREENSHOEûOFûUPûTOûûSHARES
4HEûBOOKSûWEREûSETûTOûOPENûONû*ANUARYûû
ANDûTHEûSHARESûWEREûTOûBEûLISTEDûONû&EBRUARYû

The selling shareholders included Integral
INûBUSINESSûPROCESSûOUTSOURCINGûANDûCALLû
CENTREûSERVICES
Mizuho ISûBOOKRUNNERûWITHûDaiwa, Nomura,
SMBC Nikko, SBI and Rakuten.
TRANSACTION û)NNOVATIONû!LPHAûANDûCOMPANYû#%/û+ENû
#HIEFûMARKETINGûOFlCERû!MANû'UPTAûANDû 3UGIYAMA MALAYSIA
CHIEFûPRODUCTûOFlCERû3AMEERû'UPTAûAREûTHEû %STABLISHEDûINûûTHEûCOMPANYûOFFERSû)4û
CO
FOUNDERSûOFûTHEûCOMPANYû1UALCOMMû CONSULTINGûSYSTEMûINTEGRATIONûSERVICESûANDû FARM FRESH PRE-MARKETS M$1bn IPO
6ENTURESû7ARBURGû0INCUSûANDû&IRESIDEû DIGITALûMARKETINGûCONSULTINGûANDûWEBû
6ENTURESûAREûAMONGûTHEûOTHERûINVESTORS PRODUCTION $AIRYûPRODUCERûFARM FRESH, formerly called
"OATûMANUFACTURESûEARPHONESû Mitsubishi UFJ Morgan Stanley and Daiwa 4HEû(OLSTEINû-ILKû#OMPANYûHASûSTARTEDûPRE

HEADPHONESûSPEAKERSûSOUNDBARSûTRAVELû WEREûTHEûLEADûUNDERWRITERS MARKETINGûAûDOMESTICû)0/ûOFûAROUNDû-BNû
CHARGERSûANDûCABLES 53M 
MITSUI FUDOSAN SEALS FOLLOW-ON !CCORDINGûTOûTHEûDRAFTûPROSPECTUSûUPûTOû
MûSHARESûWILLûBEûSOLDûMû
JAPAN MITSUI FUDOSAN LOGISTICS PARK has priced a SECONDARYMûPRIMARY û#ONTROLLINGû
PRIMARYûFOLLOW
ONûOFûNEWûUNITSûATûcû SHAREHOLDERSû2AINFORESTû#APITALû&ARMCHOICEû
NIPPON PAINT HOLDERS SELL SHARES EACHûTOûRAISEûcBNû53M  &OODSûANDû!GRIFOODû2ESOURCESûAREûTHEûVENDORS
4HEûINTERNATIONALûBOOKûWASûCLOSEûTOûû )NSTITUTIONSûWILLûBEûSOLDûMûSHARESû
!ûGROUPûOFûSHAREHOLDERSûINûNIPPON PAINT TIMESûCOVEREDûWITHûOVERûûLINESûANDûNOû ANDûRETAILûM
HOLDINGS HASûRAISEDûcBNû53BN û PRICEûSENSITIVITYû4HEûTOPûûINVESTORSûTOOKû 2EVENUEûINûlNANCIALûYEARûûWASû-Mû
through a secondary follow-on offering MOREûTHANûûOFûTHEûDEAL UPûûFROMû-MûINû&9û0ROlTûAFTERû
PRICEDûATûc !LLOCATIONSûWEREûSKEWEDûTOWARDSû TAXûFELLûûTOû-MûFROMû-M
4HEûBOOKûWASûMULTIPLEûTIMESûCOVEREDû PROPERTYûSPECIALISTSûLONG
ONLYûINVESTORSûANDû The company sells milk and yogurt under
WITHûMOREûTHANûûLINESû4HEREûWASûVERYû EXISTINGûSHAREHOLDERS THEû&ARMû&RESHûBRANDû)TûALSOûOWNSûTWOûDAIRYû
LIMITEDûPRICEûSENSITIVITY 4HEûISSUEûPRICEûISûATûAûûDISCOUNTûTOû FARMSûANDûAûPROCESSINGûPLANTûINû!USTRALIA
4HEûTOPûlVEûINVESTORSûTOOKûMOREûTHANûû *ANUARYûSûCLOSEûOFûcûTHEûTIGHTûENDû CIMB, Credit Suisse and Maybank are the
of the deal, while long-only, fundamental OFûTHEûMARKETEDûDISCOUNTûRANGEûOFûnû JOINTûGLOBALûCOORDINATORS
ANDûSOVEREIGNûWEALTHûFUNDSûTOOKûABOUTû AFTERûDEDUCTINGûANûEXPECTEDûDIVIDENDûOFû
4HEûSALEûPRICEûISûATûAûûDISCOUNTûTOûTHEû c
*ANUARYûûCLOSEûOFûcûTHEûTIGHTûENDûOFûTHEû 4HEû2%)4ûWHICHûINVESTSûINûLOGISTICSû SINGAPORE
MARKETEDûDISCOUNTûRANGEûOFûn facilities and other real estate assets in Japan
4HEûBASEûSIZEûCOMPRISEDûMûSHARESû ANDûOVERSEASûCOMPRISEDûûUNITSûWITHûAû STRAITS TRADING SELLS UPSIZED
4HEREûISûAûM
SHAREûûGREENSHOE ûGREENSHOEûOFûûUNITS PLACEMENT
!LLûTHEûSHARESûWEREûSOLDûTOûINTERNATIONALû 4HEûDEALûWASûSOLDûûTOûINTERNATIONALû
INVESTORS INVESTORSûINûTHEûFOLLOW
ONûANDûûTOû STRAITS TRADINGûHASûRAISEDû3Mû53M û
The selling shareholders include DOMESTICûINVESTORS FROMûANûUPSIZEDûSHAREûPLACEMENTûPRICEDûATû
3UMITOMOû-ITSUIû"ANKINGû#ORPORATIONûANDû There is a three-month lock-up for the 3ûPERûSHARE
-ITSUBISHIû5&*û4RUSTûANDû"ANKINGû ISSUERûANDûAûSIX
MONTHûLOCK
UPûFORû-ITSUIû The transaction was increased to 26m
#ORPORATION &UDOSAN shares from 12m in response to strong
4HEREûISûAû
DAYûLOCK
UPûFORûTHEûISSUERû 0ROCEEDSûWILLûBEûUSEDûTOûACQUIREû DEMANDû4HEûSHARESûREPRESENTûûOFûTHEû
3UMITOMOû-ITSUIû4RUSTû"ANKû.IPSEAû PROPERTIESûORûREPAYûDEBT EXPANDEDûSHAREûCAPITALû
)NTERNATIONALûANDû&RASERû(+  Daiwa, Nomura and SMBC Nikko are the joint 4HEûSHARESûWEREûPRICEDûFROMûAû3n
Bank of America, Nomura, Morgan Stanley and GLOBALûMANAGERS ûRANGEûANDûTHEûPRICEûISûANûûDISCOUNTû
SMBC Nikko WEREûTHEûJOINTûBOOKRUNNERSûANDû TOûTHEûPRE
DEALûCLOSEûOFû3
JOINTûLEADûMANAGERS BEWITH SETS PRICE FOR IPO $EMANDûCAMEûFROMûEXISTINGû
SHAREHOLDERSûINSTITUTIONALûINVESTORSûANDû
BTC CORPORATION PULLS IPO "USINESSûSUPPORTûSERVICESûPROVIDERûBEWITH HIGH
NET
WORTHûINVESTORSû!ROUNDûû
Technology and consulting company BTC
DAYûLOCK
UPûONûTHEûCOMPANY
CORPORATIONûHASûCANCELLEDûITSû43%û)0/ûOFûUPû
HASûSETûANûINDICATIVEûPRICEûOFûcûPERû ACCOUNTSûPARTICIPATED
SHAREûFORûANûUPûTOûcBNû53M û43%û 4HEREûISûAû
)0/ 4HEûFUNDSûWILLûBEûUSEDûFORûACQUISITIONSû
TOûcBNû53M ûBECAUSEûOFûTHEû 4HEûBASEûDEALûCOMPRISESûûPRIMARYû ANDûCOMMITTEDûINVESTMENTS
GLOBALûSPREADûOFûTHEû/MICRONûVARIANTûANDû SHARESûANDûMûSECONDARYûSHARESûWITHû CLSA, DBS, Maybank, Phillips, RHB and UOB
market conditions, it said in a message sent SECONDARYûGREENSHOEûOFûûSHARESû WEREûJOINTûPLACEMENTûAGENTS
TOûINVESTORS The selling shareholder is parent company
4HISûISûTHEûSECONDû43%ûmOATûTOûHAVEûBEENû 0ASONAû'ROUPûWHICHûHASûAû
DAYûLOCK
UP
withdrawn in recent weeks, after 4HEûDEALûWILLûBEûSOLDûTOûRETAILûANDû SOUTH KOREA
E
COMMERCEûCHATBOTûSERVICESûPROVIDERû:EALSû INSTITUTIONALûINVESTORSûWITHûAûnûSPLIT
PULLEDûITSû)0/ûOFûUPûTOûcBNûAHEADûOFûTHEû "OOKSûWILLûOPENûFROMû&EBRUARYûnû4HEû HYUNDAI ENGINEERING LAUNCHES KRX IPO
PLANNEDûLISTINGûONû$ECEMBERûûALSOû DEALûWILLûPRICEûONû&EBRUARYûûANDûTHEûSHARESû
BECAUSEûOFûMARKETûCONDITIONS AREûDUEûTOûBEûLISTEDûONû-ARCHû Construction company HYUNDAI ENGINEERING
The deal comprised 60,000 primary and 0ROCEEDSûWILLûBEûUSEDûFORûEQUIPMENTûANDû STARTEDûBOOKBUILDINGûONû*ANUARYûûFORûAû
ABOUTûMûSECONDARYûSHARESûATûANû WORKINGûCAPITAL +28û)0/ûOFûUPûTOû7TRNû53BN 

International Financing Review January 22 2022 81

 4HEûDEALûCOMPRISESûMûSHARESûMû UPSIZEDûGLOBALûDEPOSITARYûRECEIPTûOFFERINGû -ûSHARESûOPENEDûONû7EDNESDAYûATû
PRIMARYMûSECONDARY ûORûûOFûTHEû PRICEDûATû53 õûANDûCLOSEDûATûTHEûSAMEûLEVELûDOWNû
ENLARGEDûSHAREûCAPITALûINûANûINDICATIVEûPRICEû 4HEûTOPûlVEûINVESTORSûTOOKûABOUTûûOFû ûFROMûTHEûPREVIOUSûCLOSE
RANGEûOFû7n7ûEACH
The price range implies a market cap of
53BNnBN
The selling shareholders include Hyundai
-OTORû'ROUPûEXECUTIVEûCHAIRMANû%UI
SUNû THEûENLARGEDûSHAREûCAPITAL
#HUNGûANDûHONORARYûCHAIRMANû-ONG
THEûDEAL Natixis/Oddo BHF and Societe Generale were
4HEûTRANSACTIONûWASûINCREASEDûINûSIZEûTOû JOINTûBOOKRUNNERS
Mû'$3SûFROMûMûFOLLOWINGûSTRONGû
DEMANDû4HEûSHARESûSOLDûREPRESENTûûOFû
GERMANY
+OOû 4HEû'$3SûWEREûMARKETEDûATû53n
#HUNG û/NEû'$3ûEQUALSûTWOûORDINARYûSHARES CHEPLAPHARM KICKS OFF FRANKFURT
4HEûCOMPANYûPLANSûTOûSELLûnûOFûTHEû 4HEREûISûAû
DAYûLOCK
UP FLOAT
SHARESûTOûINSTITUTIONALûINVESTORSûnûTOû The company will use the proceeds for the
retail and 20% to an employee stock PURCHASEûOFûMACHINERYûANDûINVESTMENTûINû Pharmaceuticals company CHEPLAPHARM has
OWNERSHIPûPLAN 2$ LAUNCHEDûAû&RANKFURTû)0/ûTARGETINGûõMû
"OOKBUILDINGûWILLûCLOSEûONû*ANUARYûû Credit SuisseûWASûSOLEûBOOKRUNNER INûFRESHûCASHûALONGSIDEûSOMEûSELLINGûBYû
PRICINGûISûSLATEDûFORû*ANUARYûûANDûTHEû SHAREHOLDERSûINûTHEûlRSTûMAJORû%UROPEANû
SHARESûWILLûLISTûONû&EBRUARYû mOATûOFûTHEûYEARû
%STABLISHEDûINûûTHEûCOMPANYûISûTHEû 4HEûSECONDARYûCOMPONENTûISûLIKELYûTOûBEû
plant construction and infrastructure SMALLERûTHANûTHEûPRIMARYûBUTûSTILLû
AFlLIATEûOFû(YUNDAIû-OTORû'ROUP EUROPE/MIDDLE CONSIDERABLEûACCORDINGûTOûAûBANKERû
(YUNDAIû%NGINEERINGûANDû#ONSTRUCTIONû EAST/AFRICA INVOLVEDûPOINTINGûTOûAûDEALûSIZEûINûEXCESSûOFû
the construction arm of the group, is the õBNû
LARGESTûSHAREHOLDERûOFû(YUNDAIû%NGINEERINGû 3ELLERû"RAUNû"ETEILIGUNGSûISûALSOûPROVIDINGû
WITHûAûûSTAKEû4HEûGROUPSûLOGISTICSû FRANCE AûGREENSHOEû
ARMû(YUNDAIû'LOVISûHOLDSû 4HEûFREE
mOATûISûSTILLûTOûBEûDETERMINEDû
0ROCEEDSûWILLûBEûUSEDûFORûINVESTMENTSûINû CNP ENDS 15-YEAR INVESTMENT IN M6 )NVESTORSûHAVEûBEENûGIVENûAûWIDEûPOTENTIALû
NEWûBUSINESSûAREASûANDûGENERALûWORKINGû VALUATIONûFORûTHEûCOMPANYûINûRESEARCHû
CAPITAL
Goldman Sachs, KB Securities and Mirae Asset
Daewoo AREûLEADINGûTHEûmOAT
KSOE TO LIST HYUNDAI SAMHO IN 2022
4UESDAYûEVENINGûHADûBEENûEXPECTEDûTOûSEEûAû
FEWûACCELERATEDûBOOKBUILDSûINû%UROPEû
CONSIDERINGûTHEû-ARTINû,UTHERû+INGû*Rû$AYû
holiday in the US meant there was no
ACTIVITYûTHEûPREVIOUSûEVENINGû9ETûWITHû
ACCORDINGûTOûTHEûBANKERûUSINGûAûVARIETYûOFû
METRICSû
4HEûDEALûHADûBEENûEXPECTEDûTOûHITûTHEû
MARKETûINûTHEûSECONDûHALFûOFû
Credit Suisse, Deutsche Bank and JP Morgan
%UROPEANûMARKETSûAûLITTLEûSOFTûONû4UESDAYûAû AREûJOINTûGLOBALûCOORDINATORSûANDûJOINTû
+OREAû3HIPBUILDINGûû/FFSHOREû%NGINEERINGû CLEAN
UPûTRADEûFROMû#.0ûINûMEDIAûBUSINESSû BOOKRUNNERSûWITHûBarclays and Citigroup.
+3/% ûISûPLANNINGûTOûLISTûSHIPBUILDERûHYUNDAI GROUPE M6 WASûTHEûONLYûACTION Commerzbank/Oddo BHF, DZ Bank and ING/
SAMHO HEAVY INDUSTRIES BYûTHEûENDûOFûûASû 4HEûSALEûCOMPRISEDûMûSHARESû Stifel AREûCO
LEADûMANAGERS
AGREEDûWITHûAûPRE
)0/ûINVESTORûTHEûCOMPANYû REPRESENTINGûJUSTûOVERûûOFûTHEûSHAREû #HEPLAPHARMûMAINLYûINVESTSûINûWELL

HASûSAID CAPITALûANDûAROUNDûûDAYSûTRADING ESTABLISHEDûBRANDEDûPHARMACEUTICALSûWITHû
(YUNDAIû3AMHOû(EAVYû)NDUSTRIESûRAISEDû !ûWALL
CROSSINGûPROCESSûTOOKûPLACEûONû EXPIREDûPATENTSû)TûDISTRIBUTESûPRODUCTSûINû
7BNû53M ûFROMûAûPRE
)0/û -ONDAYûANDû4UESDAYûWITHûSOMEû53û AROUNDûûCOUNTRIES
INVESTMENTûBYû)--û0RIVATEû%QUITYûINû*UNEû ACCOUNTSûSTILLûREACHABLEûONû-ONDAYûDESPITEû )TûWILLûUSEûTHEû)0/ûPROCEEDSûTOûREPAYûDEBTû
ûDURINGûANûINDUSTRYûRECESSION the holiday, and ended with the deal ANDûTOûlNANCEûACQUISITIONSûOFûPRODUCTSû
+3/%ûISûTHEûLARGESTûSHAREHOLDERûOFû COVEREDûONûINDICATIONS 0RE
MARKETINGûBEGANûONû-ONDAYûANDûWILLû
(YUNDAIû3AMHOûOFûWHICHûITûOWNSû &ORMALûCOVERAGEûFOLLOWEDûAROUNDûHALFûANû last around two weeks, with one week of
!CCORDINGûTOûLOCALûMEDIAûTHEûPLANû hour after launching with reference to BOOKBUILDINGûTOûFOLLOWû-EETINGûSLOTSûBEGANû
CONlRMEDûTOûANALYSTSûBYû+3/%ûVICE
CHAIRMANû 4UESDAYSûõûCLOSE lLLINGûUPûONû4HURSDAYûWITHûLONG
ONLYû
ANDû#%/û+Aû3AM
HYUNûEARLIERûTHISûWEEKûHASû 0RICINGûCAMEûATûõûFORûAûõMûDEALû names and generalists showing interest in
ANGEREDûMINORITYûINVESTORSûINû+3/%ûWHOûFEARû ANDûAûûDISCOUNTû4HEûSHARESûHAVEûRISENû THEûSTOCKû
THATûTHEûCOMPANYSûSHAREûPRICEûWILLûPERFORMû NEARLYûûSINCEûTHEûSTARTûOFû The fact that Cheplapharm deals with
BADLYûAFTERûTHEûSPIN
OFFûASûITûDIDûFOLLOWINGûTHEû #.0ûHADûBEENûINVESTEDûINû-ûSINCEûû ALREADYûAPPROVEDûDRUGSûANDûHASûNOû2$û
LISTINGûOFûANOTHERûSUBSIDIARYû(YUNDAIû(EAVYû WHENûITSûSHARESûWEREûTRADINGûASûHIGHûASûõû ACTIVITIESûMEANSûTHATûTHEREûISûLESSûRISKû
)NDUSTRIESûLASTû3EPTEMBERû+3/%ûSHARESûAREû ALTHOUGHûITûHASûMOSTLYûTRADEDûBELOWûõû INVOLVEDûFORûINVESTORSû4HEûSTOCKûTHEREFOREû
DOWNûûINûTHEûPASTûSIXûMONTHS SINCEû DOESûNOTûREQUIREûTHEûSAMEûLEVELûOFûINVESTORû
&OUNDEDûINûû(YUNDAIû3AMHOûBUILDSû The top 10 accounts took around 65% specialism as some other healthcare stocks
CONTAINERûCARRIERSûCRUDEûOILûTANKERSûBULKû OFûAûBOOKûOFûAPPROXIMATELYûûLINESûWITHû MIGHTûACCORDINGûTOûAûSECONDûBANKERû
CARRIERSûLIQUElEDûNATURALûGASûCARRIERSûANDû the top 20 orders accounting for around WORKINGûONûTHEûDEALû
OTHERûTYPESûOFûSHIPS ûOFûTHEûDEALû!LLOCATIONSûWEREûSKEWEDû )NVESTORSûAREûPARTICULARLYûFOCUSEDûONûTHEû
to wall-crossed accounts, shareholders COMPANYSûHIGHû%BITDAûMARGINûWHICHûWASû
ANDûLONG
ONLYûMONEYûBUTûWITHûAûGOODû AROUNDûûINûTHEûNINEûMONTHSûTOû3EPTEMBERû
TAIWAN showing from hedge funds and some US ûASûWELLûASûITSûACQUISITIONûTRACKûRECORD
AP MEMORY TECHNOLOGY UPSIZES GDR
AP MEMORY TECHNOLOGY, a memory IC design
company, has raised US$190m from a fully
82
MONEY
!ûBANKERûINVOLVEDûSAIDûTHATûINTERESTûINûTHEû
NAMEûHASûBEENûHELPEDûBYûTHEûMERGERû
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TOûCOMPLETEûBYûTHEûENDûOFûTHEûYEAR
International Financing Review January 22 2022
3INCEûû#HEPLAPHARMûHASûSPENTûABOUTû
õBNûACQUIRINGûMOREûTHANûûPRODUCTSû
FROMûMAJORûPHARMAûCOMPANIESû
4HEûCOMPANYûSIGNEDûANDûCLOSEDûõMûOFû
acquisitions in 2021 and has more than
 EQUITIES EMEA

õBNûOFûASSETSûUNDERûCONSIDERATIONûINûTHEû JP Morgan is sole placement agent on the The company hopes to wrap up the deal
NEARûTERMû 0)0%ûLAUNCHEDûTOûSUPPORTûTHEûTRANSACTIONû BYûTHEûENDûOFû*ANUARYûORûEARLYû&EBRUARYû
#HEPLAPHARMûRECORDEDû%BITDAûOFûõMû HAVINGûBEENûSOLEûBOOKRUNNERûONûTHEû)0/ 4HEûMAJORITYûOFûTHEû)0/ûWILLûBEûSECONDARYû
INûûUPûFROMûõMûINûû%BITDAûROSEû 4HEREûISûSOMEûCROSSOVERûTHEû'&*û%3'û alongside a primary raising that will account
FURTHERûLASTûYEARûHITTINGûõMûFORûTHEûlRSTû SPONSORSHIPûTEAMûINCLUDESû#%/û'ISBERTû FORûABOUTûAûlFTHûOFûTHEûDEAL
NINEûMONTHS 2UEHLûWHOûWASûALSOûCHAIRMANûOFûû30!#û) 4ECHNOPROBEûWILLûUSEûTHEûFRESHûCASHûTOû
Some early peer suggestions include FUNDûITSûINTERNATIONALûGROWTHûSTRATEGYû
)TALIANûPHARMACEUTICALûCOMPANYû2ECORDATIû 4HEûCOMPANYûMAKESûPROBEûCARDSûTHATû
'ERMANYSû$ERMAPHARMûANDûTHEû53Sû ISRAEL are used to test chips during
2OYALTYû0HARMAû semiconductor manufacturing that go on
Cheplapharm is the largest IPO to launch IMAGESAT INTERNATIONAL EYES TOûBEûUSEDûINûCOMPUTERSûANDû
INû%UROPEûSOûFARûTHISûYEAR
,ASTûWEEKûSAWûTHEûPARENTûOFû$UTCHûlLEû
SENDINGûSERVICEû7E4RANSFERûLAUNCHûAû
õMnõMû%URONEXTû!MSTERDAMû
.ORWEGIANûSHIPûCHARTERûCOMPANYû'RAMû
#ARû#ARRIERSûBEGANûBOOKBUILDINGûFORûAû
TEL AVIV IPO
IMAGESAT INTERNATIONAL is targeting
APPROXIMATELYû53MûINûPRIMARYû
PROCEEDSûFROMûAû4ELû!VIVû)0/ûTHATûWILLûFUNDû
PLANNEDûSATELLITEûLAUNCHESûOVERûTHEûNEXTûTWOû
SMARTPHONESû'ûHOMEûAUTOMATIONûANDû
THEûAUTOMOTIVEûINDUSTRIESû#HIPû
PRODUCTIONûHASûBEENûINûFOCUSûAFTERûFACTORYû
shutdowns during the pandemic created
worldwide scarcity, with a particular
IMPACTûONûCARûPRODUCTION
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ANDûû30!#û))ûWRAPPEDûUPûTHEûWEEKû 4HEREûISûALSOûEXPECTEDûTOûBEûSELLINGûBYû WORLDSûLARGESTûSEMICONDUCTORû
RAISINGûõMûAHEADûOFûITSû&RANKFURTû SHAREHOLDERSûTHOUGHûSIZINGûISûNOTûYETûSETû MANUFACTURERS
LISTINGû /WNERSûINCLUDEûLOCALûPRIVATEûEQUITYûlRMû Intesa Sanpaolo and Mediobanca are joint
The current IPO window remains highly &)-)ûWITHûû)SRAELIû!EROSPACEû BOOKRUNNERSû
SELECTIVEûACCORDINGûTOûSEVERALûBANKERSûWITHû )NDUSTRIESûWITHûûANDû$ISCOUNTû#APITALû
*ANUARYûLIKELYûTOûBEûQUIETûAHEADûOFûAûPICK
UPû WITHû CIVITANAVI ON COURSE FOR MILAN IPO
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BOOKSûOPENûUNTILû&EBRUARYûûANDûPRICINGûONû
SEQUEL 468 SPAC COMPLETES IPO AS GFJ &EBRUARYûû!ûTRADINGûDEBUTûISûEXPECTEDûONû
TARGETS TADO &EBRUARYû
4HEûSATELLITEûIMAGINGûlRMûHASûPROVIDEDû
MONEYûVALUATIONû
CIVITANAVI SYSTEMS has kicked off pre-
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4HEûSECONDûVEHICLEûFROMûû#APITALû SERVICESûTOûDEFENCEûANDûINTELLIGENCEû ESTIMATESûOFûABOUTûõMnõMûANDû
completed its fundraising on Friday, January ORGANISATIONSûFORûMOREûTHANûûYEARSû)TûHADû SELLINGûBYûSHAREHOLDERSûCOULDûADDû
ûWITHûAûlNALûPROCEEDSûTOTALûOFûõMûFORû
468 SPAC II AFTERûLAUNCHINGûWITHûAûBASEûSIZEûOFû
õMûANDûPROVISIONûFORûANOTHERûõM
!ûBANKERûINVOLVEDûSAIDûû30!#û)Sû
SUCCESSFULûBUSINESSûCOMBINATIONûWITHû
AûBACKLOGûOFû53MûASûOFû3EPTEMBERûANDûAû
PIPELINEûTOûûOFû53BNû/NûTHEû
STRENGTHûOFûTHOSEûNUMBERSûTHEûCOMPANYûISû
PROJECTINGûnû#!'2ûOFûûANDûANû
%BITDAûMARGINûOFûû
õMnõMûTOûTHEûDEALûACCORDINGûTOûAû
BANKERûINVOLVEDû
The Italian company makes precision
sensors for the aerospace and defence
industry as well as the mining, oil and gas,
"OXINEûINû!UGUSTûHADûSIGNIlCANTLYûHELPEDû UBSûISûSOLEûBOOKRUNNERûWITHûDiscount ANDûMARITIMEûSECTORSû)TSûNAVIGATIONûANDû
MOMENTUMûFORûTHEûNEWûmOATû"OXINEûWASû Capital and Barak Capital ASûLOCALûDISTRIBUTORS STABILISATIONûSYSTEMSûAREûUSEDûINûSHIPSû
renamed Tonies and shares traded up in aircraft and spacecraft to measure position
.OVEMBERûWHENûTHEûCOMBINATIONûWASû ANDûALTITUDEûWITHOUTûHAVINGûTOûRELYûONû
COMPLETED ITALY EXTERNALûREFERENCESûLIKEûSATELLITESû
&ORûTHEûSECONDû30!#ûMûUNITSû
comprising one share and one-third warrant
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OVERSUBSCRIBEDûWITHûALLOCATIONSûSKEWEDû
TOWARDûINVESTORSûWHOûSHOWEDûEARLYû
commitment in pre-marketing and those
TECHNOPROBE TESTS WATERS FOR
MILAN IPO
TECHNOPROBE, which makes testing
equipment for semiconductor wafers, plans
#IVITANAVIûSAIDûONEûOFûTHEûCOMPANYSû
distinguishing factors is that it is not
COVEREDûBYûTHEû53û$EPARTMENTûOFû3TATESû
)NTERNATIONALû4RAFlCûINû!RMSû2EGULATIONSû
THATûRESTRICTûEXPORTSûOFûMILITARYû
TECHNOLOGY
INVESTEDûINûTHEûPREVIOUSû)0/
The target is a company with principal
OPERATIONSûINû%UROPEûINûTHEûCONSUMERû
TECHNOLOGYûANDORûSOFTWAREûANDûARTIlCIALû
INTELLIGENCEûSECTORûWITHûANû
TOûLISTûONû%URONEXTû'ROWTHû-ILANûWITHûAû !LTHOUGHûMUCHûLARGERûBYûMARKETûCAPû
POTENTIALûDEALûSIZEûOFûAROUNDûõMû US aerospace and defence technology
!ûSOURCEûCLOSEûTOûTHEûDEALûPOINTEDûTOûAû COMPANYû.ORTHROPû'RUMMANûANDû53û
MARKETûCAPITALISATIONûOFûABOUTûõBNûFORû conglomerate Honeywell are among
MONTHû 4ECHNOPROBEûWHICHûISûAIMINGûFORûAûû #IVITANAVISûPEERSûASûWELLûASû&RENCHû
TIMEFRAME FREE
mOAT AEROSPACEûCOMPANYû3AFRAN
3HARESûINûû30!#û))ûCLOSEDûATûõûONû -ILANSûJUNIORûMARKETûISûNOTûNORMALLYû There is early interest in placing anchor
DEBUTûONû4HURSDAYûONûWEREûATûTHATûSAMEû
LEVELûONû&RIDAYûMORNING
BerenbergûWASûSOLEûBOOKRUNNER
4HEûTEAMûBEHINDû/CTOBERSûõMûGFJ ESG
ACQUISITION Iû30!#ûHASûIDENTIlEDûITSûTARGETûINû
HOMEûTOûSUCHûLARGEûCOMPANIESû/FûTHEû
PREVIOUSûûCOMPANIESûTOûLISTûONûTHEûGROWTHû
MARKETûTHEûLARGESTûWASû3VASû"IOSANAûWITHûAû
MARKETûCAPûOFûõM
The decision to list on the smaller
ORDERSûFROMûINVESTORSûTHEûBANKERûSAIDû
#IVITANAVIûWILLûUSEûTHEûPRIMARYûPROCEEDSû
TOûINCREASEûPRODUCTIONûCAPACITYûANDûEXPANDû
internationally, including into the UK and
3PAINû4HEûFRESHûCASHûWILLûALSOûIMPROVEû
TADOûAû'ERMANûSMARTûHOMEûENERGYû EXCHANGEûWILLûALLOWû4ECHNOPROBEûTOûLISTû PRODUCTûDEVELOPMENTûSOURCEûNEWûTALENTû
COMPANY SOONERûASûITûMEANSûITûDOESNTûHAVEûTOûWAITû ANDûEXPANDûTHEûSALESûTEAMû
4ADOûISûEXPECTEDûTOûHAVEûANûENTERPRISEû UNTILûITûHASûFULL
YEARûlNANCIALûRESULTSû Berenberg and Intermonte are joint
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RECEIVINGûNEWûSHARESûINûTHEûCOMPANYûANDû AIMSûTOûEVENTUALLYûUPGRADEûTOûTHEûMAINû 4HEûCOMPANYûISûLEDûBYû#%/ûANDûCO

CASHûOFûUPûTOûõM MARKET FOUNDERû!NDREAû0IZZARULLIû

International Financing Review January 22 2022 83

 DONGFENG SHAVES MORE OFF 0ROCEEDSûAREûTOûBEûUSEDûBYû&ONDULû
NETHERLANDS STELLANTIS STAKE 0ROPRIETATEAûTOûFUNDûITSûBUYBACKûPROGRAMMEû
ASûWELLûASûPOTENTIALûDIVIDENDS
WETRANSFER OPENS BOOKS WITH $ONGFENGû-OTORûSOLDûABOUTûûOFû 4HEûTRADEûLEAVESû&ONDULû0ROPRIETATEAû
SMALLER PRIMARY TRANCHE carmaker STELLANTIS ONû4HURSDAYûEVENINGûTOû which carried out the sale through its
RAISEûõM &RANKLINû4EMPLETONûSUBSIDIARYûWITHûAûSTAKEû
4HEûPARENTûOFûlLEûSENDINGûSERVICEûWETRANSFER 4HEûSALEûCOMPRISEDûMûSHARESûUPSIZEDû OFûJUSTûUNDERûûSUBJECTûTOûAû
DAYûLOCK
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HASûINITIATEDûAûWEEKûOFûBOOKBUILDINGûFORûAû FROMûMûANDûWASûCOVEREDûINûLESSûTHANûû 0ETROMûSHARESûHAVEûRISENûMOREûTHANûû
õMnõMû%URONEXTû!MSTERDAMûmOATû minutes after launching with reference to SINCEûTHEûSTARTûOFûû4HEûSTOCKûCLOSEDûATû
WITHûAûSMALLER
THAN
EXPECTEDûPRIMARYû THEûõû-ILANûCLOSE ,ûTWOûWEEKSûAGOûANDûATû,ûINûEARLYû
COMPONENTû &INALûPRICINGûWASûõûAûûDISCOUNTû .OVEMBERûLEVELSûLASTûSEENûINû
4HEûlXEDûPRIMARYûTRANCHEûHASûBEENû TOûTHEûCLOSE 3HARESûENDEDûmATûATû,ûONû4HURSDAY
REDUCEDûTOûABOUTûõMûFROMûTHEû $ONGFENGû-OTORûISûLEFTûWITHûABOUTûû Fondul Proprietatea last sold shares in
APPROXIMATEûõMûTARGETEDûBYûTHEû ACCORDINGûTOû2ElNITIVûDATAû 0ETROMûINû3EPTEMBERûûSELLINGûûATû
company at launch of pre-marketing on BNP Paribas WASûBOOKRUNNER ,û4HEûNEXTûTRADEûWILLûLIKELYûBEûANûEXIT
*ANUARYûû 3HARESûFELLûBELOWû!""ûPRICINGûONû&RIDAYû Erste Group and SSIF Swiss Capital were joint
!ûPRICEûRANGEûOFûõnõûHASûBEENû ANDûWEREûDOWNûûATûõûEACHûBYûPMû GLOBALûCOORDINATORSûANDûJOINTûBOOKRUNNERSû
set for shares in the company, which offers INû,ONDONû with Banca Comerciala Romana and Auerbach
lLEûTRANSFERûANDûPRODUCTIVITYûTOOLSûFORû 4HEûTOPûûORDERSûTOOKûûOFûTHEûBOOKû Grayson
PEOPLEûWORKINGûINûCREATIVEûINDUSTRIESû WHICHûTOTALLEDûABOUTûûLINESû4HEûTOPûû
4HEûRANGEûCORRESPONDSûTOûû%6 ORDERSûTOOKûABOUTûû
REVENUEûOFûXnXûONûCONSENSUSûANDû 4HEûBOOKûWASûMULTIPLEûTIMESûCOVEREDû SPAIN
COMESûATûAûnûDISCOUNTûTOûPEERSûTHATû from a wall-crossing, with allocations
TRADEûATûOVERûX skewed to long-only and wall-crossed IBERCAJA LAUNCHES LONG-AWAITED IPO
%6FREEûCASHmOWûISûALSOûBEINGûUSEDûASûAû ACCOUNTSû
metric, with the range corresponding to -OSTûOFûTHEûSTOCKûWENTûTOû5+ûNAMESûANDû IBERCAJA has launched pre-marketing for its
XnXûFORû it also attracted strong demand from long-awaited all-secondary IPO that could
"OOKSûCLOSEûONû*ANUARYûûANDûTRADINGûISû #ONTINENTALû%UROPEû$UTCH
HEADQUARTEREDû FETCHûõMnõMû
SETûFORûTHEûFOLLOWINGûDAYû4HEûBASEûDEALûWASû
COVEREDûBYû&RIDAYûEVENINGû
4HEREûISûAûSECONDARYûLEGûOFûUPûTOûMû
SHARESûTHATûWOULDûADDûõMûTOûTHEûDEALû
SIZEûATûTHEûTOPûOFûTHEûRANGE
3ELLINGûISûLEDûBYû(IGHLANDû%UROPEû
Stellantis has listings in France, Italy and the
53ûHAVINGûBEENûFORMEDûLASTûYEARûBYûTHEû
MERGERûOFû&IATû#HRYSLERûANDû03!
4HEûTIGHTûDISCOUNTûCANûBEûATTRIBUTEDûTOûTHEû
popularity of the stock, according to a
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4HEû)0/ûWHICHûHASûBEENûINûTHEûPIPELINEû
SINCEûûCOULDûGIVEûTHEûBANKûAûMARKETûCAPûOFû
APPROXIMATELYûõBNû)TûISûREQUIREDûUNDERû
Spanish law, which was put in place after the
ûlNANCIALûCRISISûTHATûOLDûSAVINGSûBANKSû
NOWûBANKINGûFOUNDATIONS ûWITHûOWNERSHIPûOFû
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with certain senior managers and THATûWASûPRICEDûATûõûANDûALSOûLEDûBYû -AINûSHAREHOLDERû)BERCAJAû&OUNDATIONûISû
EMPLOYEESûOFûTHEûCOMPANYû4HEREûISûAûû ".00 REQUIREDûTOûREDUCEûITSûSTAKEûINûTHEûBANKûTOû
SECONDARYûGREENSHOEû 7HILEûMOSTûINVESTORSûWEREûCOMFORTABLEû BELOWûûFROMûTHEûCURRENTûûMEANINGûAû
0ARENTû7E2OCKûISûCHANGINGûITSûNAMEûTOû AROUNDûlNALûPRICINGûOFûõûONû4HURSDAYSû MINIMUMûFREE
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LISTING THEûWIDERûMARKETûENVIRONMENTûANDûTHEûFACTû PUBLICûBYûTHEûENDûOFûûTHATûWASûEXTENDEDû
The fresh cash will go towards that Stellantis shares are trading around BYûTWOûYEARSûDUEûTOûTHEû#OVID
ûPANDEMICû
7E4RANSFERSûGROWTHûINCLUDINGûINVESTMENTû THEIRûHIGH The fact that many early-look meetings
in marketing and acquisitions, technologies, HAVEûALREADYûTAKENûPLACEûANDûTHATûDEMANDû
products, intellectual property rights and ISûHIGHûFORûlNANCIALûSTOCKSûINû%UROPEûLEDûTOû
OTHERûASSETS ROMANIA the decision to get the IPO out of the door
7E2OCKûWILLûALSOûUSEûPARTûOFûTHEûPROCEEDSû EARLYûINûûAûBANKERûSAIDû
TOûSETTLEûOBLIGATIONSûUNDERûTHEûMANAGEMENTû FONDUL PROPRIETATEA NEARS EXIT ON
INCENTIVEûPLANûANDûTOûPAYû(IGHLANDû%UROPEû OMV PETROM STAKE EMEA EQUITIES
INûCONNECTIONûWITHûTHEûCONVERSIONûOFû BOOKRUNNERS: 1/1/2022 TO DATE
PREFERENCEûSHARESûTOûORDINARYûSHARES 3TATE
BACKEDû&ONDULû0ROPRIETATEAûFURTHERû Managing No of Total Share
The implied post-money market cap is TRIMMEDûITSûSTAKEûINû2OMANIASûOMV PETROM bank or group issues US$(m) (%)
õMnõMû ONû7EDNESDAYûNIGHTûSELLINGûûOFûTHEûOILû 1 Bank of America 2 660.16 19.0
4HEûFREE
mOATûWILLûBEûUPûTOûûONû ANDûGASûBUSINESS 2 Goldman Sachs 4 592.65 17.0
LISTINGûUPûTOûûONûAûFULLYûDILUTEDûBASISû The trade launched around the London 3 Morgan Stanley 3 559.57 16.1
ANDûUPûTOûûINCLUDINGûDILUTIONûFROMûALLû CLOSEûWITHûAûBASEûSIZEûOFûBNûSHARESûANDûANû 4 Barclays 2 190.78 5.5
TREASURYûSHARESû OPTIONûTOûUPSIZEûBYûBNûSHARES 5 Natixis 2 159.36 4.6
Bank of America and Morgan Stanley are joint 4HEREûWASûSUFlCIENTûDEMANDûTOûUPSIZEûTHEû 6 BNP Paribas 2 118.48 3.4
GLOBALûCOORDINATORSûANDûJOINTûBOOKRUNNERSû BASEûDEALûBYûAûTHIRDûTOûBNûSHARESû 7 JP Morgan 2 116.47 3.3
with ABN AMRO/Oddo BHF and Barclays. They REPRESENTINGûûOFûSHAREûCAPITAL 8 Berenberg 1 107.50 3.1
WILLûEARNûAûBASEûFEEûOFûûPLUSûAû 0RICINGûCAMEûATû,ûANûûDISCOUNTûTOû 9 Carnegie 2 103.75 3.0
DISCRETIONARYûINCENTIVEûFEEûOFûû4HEûGLOBALû THEû,ûCLOSEûFORûAûDEALûSIZEûOFû,Mû 10 Societe Generale 2 77.97 2.2
COORDINATORSûWILLûRECEIVEûûOFûTHEûFEESû 53M û3HARESûHADûFALLENûFORûTHREEûDAYSû Total 29 3,480.94
EACHûWITHûTHEûREMAININGûûSPLITûBETWEENû INûAûROWûLEADINGûUPûTOûTHEûSALEûHAVINGûENDEDû Including all domestic and international deals and rights issues
THEûTWOûJOINTûBOOKRUNNERS THEûPREVIOUSûWEEKûATû,û Source: Refinitiv SDC code: C4cr

84 International Financing Review January 22 2022

 EQUITIES EMEA

!SûREPORTEDûINû-ARCHûûJP Morgan and .UMISûANDû3%"ûWEREûALSOûJOINTûBOOKRUNNERSû offer comprises a placing, a 3-for-25 open
Morgan Stanley are leading the syndicate as ONûTHEûmOAT OFFERûANûOFFERûFORûSUBSCRIPTIONûANDûANû
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BOOKRUNNERSûWITH Bank of America and UBS.
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intermediaries offer, run through Peel
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CROSSEDûINûADVANCEûANDûWASû UK
COVEREDûONûINDICATIONSûATûLAUNCHû
4HEûTRADEûWASûINCREASEDûINûSIZEûONûPRICINGû
carried out another intraday
acquisition fundraising on Thursday,
RAISINGûaMûFOLLOWINGûAûaMû
TRADEûINû/CTOBER
LXI REIT TARGETING £125m FOR ASSET -ARLOWEûWASûOFFERINGûOFûMûSHARESû
TOûMûSHARESûORûûOFûSHAREûCAPITALû PIPELINE THATûPRICEDûATûaûPERûSHAREû0ROCEEDSûWILLû
WITHûPRICINGûOFû3+RûSETTINGûAû3+RBNû fund the £135m acquisition of Optima,
53M ûDEALûSIZEû0RICINGûWASûAûû LXI REITûANûINmATION
PROTECTEDû2%)4ûISû WHICHûPROVIDESûOCCUPATIONALûHEALTHûSERVICESû
DISCOUNTûTOûTHEû3+RûCLOSEû4HEû targeting £125m to fund acquisitions INûTHEû5+
3+RBNûmOATûPRICEDûATû3+R TOTALLINGûAPPROXIMATELYûaMûTHEûVASTû 4HEûOFFERINGûREPRESENTEDûAPPROXIMATELYû
4RUECALLERûSTOCKûTRADEDûEVENûHIGHERûINû MAJORITYûOFûWHICHûHAVEûBEENûSOURCEDûOFF
ûOFûSHAREûCAPITALûANDûPRICINGûWASûAûû
$ECEMBERûANDûHITûAûCLOSINGûHIGHûOFû MARKET DISCOUNTûTOû7EDNESDAYSûaûCLOSE
3+R 4HEûCOMPANYûISûOFFERINGûMûNEWû 4HEûSTOCKûWASûTRADINGûAROUNDûaû
4HEûTOPûûORDERSûINûAûBOOKûOFûMOREûTHANû SHARESûORûûOFûSHAREûCAPITALûATûPûEACHû SHORTLYûBEFOREûPMûAFTERûWHICHûPRICINGûWASû
ûLINESûTOOKûAROUNDûûOFûTHEûBOOKûWITHû FORûAûûPREMIUMûTOûESTIMATEDû.!6ûPERû announced, suggesting a real-time discount
THEûTOPûûORDERSûTAKINGûAROUNDûû4HEû ORDINARYûSHAREûATû$ECEMBERûûOFûPû NEARERûTOû
BOOKûWASûSKEWEDûTOûLONG
ONLYûMONEYû REDUCEDûBYûEXPECTEDûINTERIMûDIVIDENDûOFû 3INCEûTHEû#OVID
ûTROUGHûINû-ARCHû
SHAREHOLDERSûANDûWALL
CROSSEDûACCOUNTS PûFORûTHEûFOURTHûQUARTERû0RICINGûISûALSOûAû ûWHENû-ARLOWEûSHARESûWEREûTRADINGû
/Nû4HURSDAYûTHEûSHARESûlNISHEDûTHEûDAYû ûDISCOUNTûTOû-ONDAYSûPûCLOSE ATûPûTHEûSTOCKûHASûMOREûTHANûTRIPLEDû
UPûûATû3+R ,8IûSHARESûHAVEûRISENûMOREûTHANûûSINCEû and is up more than 26% since late
There were multiple lock-ups from the THEûBEGINNINGûOFû .OVEMBER
)0/ûWITHûHOLDERSûBELOWûûSUCHûASû 4HEûMAXIMUMûNUMBERûOFûSHARESûAVAILABLEû 4HEûlNALûBOOKûWASûOVERSUBSCRIBEDûWITHû
/PEN/CEANûSUBJECTûTOûAû
DAYûLOCK
UPûTHATû through the share issuance programme is ALLOCATIONSûHEAVILYûSKEWEDûTOWARDSûLONG

EXPIREDûINûEARLYû*ANUARY Mû4HEûFUNDRAISINGûISûNOTû ONLYûMONEYûANDûSHAREHOLDERS
Carnegie and JP Morgan were joint UNDERWRITTEN 3HARESûCLOSEDûJUSTûABOVEûPRICINGûATûa
BOOKRUNNERSûONûTHEûCLEAN
UPûTRADEûHAVINGû !ûPROSPECTUSûANDûSCHEDULEûAREûEXPECTEDû Berenberg and Cenkos were joint lead
BEENûGLOBALûCOORDINATORSûALONGSIDEû INûTHEûNEXTûWEEKûWITHûTHEûFUNDRAISINGû BOOKRUNNERSûANDûBROKERSûWITHûStifel Nicolaus
#ITIGROUPûANDû'OLDMANû3ACHSûONûTHEû)0/û EXPECTEDûTOûCLOSEûINûEARLYû&EBRUARYû4HEû EuropeûASûBOOKRUNNER

International Financing Review January 22 2022 85

 BALTIC CLASSIFIEDS DROPS 4HEûGROUPûISûNATURALLYûEXPECTEDûTOûBENElTû internet hardware play Credo Technology is
ON APAX SALE FROMûPURSUITûOFûNET
ZEROûEMISSIONSûAROUNDû BRINGINGûITSû53Mû)0/ûONû7EDNESDAY
THEûWORLDûANDûTHEû)0/ûSHOULDûATTRACTû%3'û "ANKERSûAREûALSOûINCREASINGLYûRELYINGûONû
!PAXû0ARTNERSûSOLDûûOFûBALTIC CLASSIFIEDS MONEY EXISTINGûINVESTORSûANDûANCHORûORDERSûTOûGETû
GROUP ONû4HURSDAYûEVENINGûTAKINGûHOMEû $ENMARKSû'REENû(YDROGENû3YSTEMSû offerings across the line rather than
aMûFROMûTHEûSALEûOFûMûSHARES another maker of electrolysers, raised STRUGGLINGûHEDGEûFUNDS
Bank of AmericaûWASûBOOKRUNNER $+RBNû53M ûINûAûlXED
PRICEû 4HEûCOMPANIESûREADYûTOûLAUNCHû)0/SûNEXTû
The deal launched with reference to #OPENHAGENû)0/ûINû*UNEû$ESPITEûINITIALLYû WEEKûINCLUDEûCAR
SHARINGûlRMû4UROûRETAILERû
4HURSDAYSûPûCLOSEûANDûlNALûPRICINGûOFû TRADINGûUPûSHARESûWEREûBELOWûTHEû$+Rû -ATTRESSû&IRMûSUSTAINABLEûFABRICûCOMPANYû
PûREPRESENTEDûAûûDISCOUNT PRICINGûBYû3EPTEMBERûFALLINGûTOûAûCLOSINGû #ARILOHAû,.'ûPRODUCERû%XCELERATEû%NERGYû
4HEûCOMPANYûRUNSûADVERTISINGûPORTALSûINû LOWûOFû$+RûINû/CTOBERû3HARESûAREûNOWû ANDûONLINEûREALûESTATEûBROKERAGEû
,ITHUANIAû%STONIAûANDû,ATVIAû)TSû,ONDON
AROUNDû$+RûEACH (OME3MART
listed shares were underwater on Friday and 5+ûCLEANûENERGYûBUSINESSû#ERESû0OWERû
CLOSEDûATûPûDOWNûûFORûTHEûDAYûANDû (OLDINGSûRAISEDûaMûINû-ARCHûTOûBUILDû RHODIUM POSTPONES US$108m
ûBELOWû!""ûPRICINGû capacity for its green hydrogen production, NASDAQ IPO
4HEûDEALûEQUATESûTOûMOREûTHANûûDAYSû BASEDûONûSOLIDûOXIDEûELECTROLYSISûTECHNOLOGY
TRADINGû CenkosûISûSOLEûBROKERûTOû#0(û!DMISSIONûISû "ITCOINûMINERûRHODIUM ENTERPRISES opted to
!PAXSûSTAKEûDROPSûTOûAROUNDûûLOCKEDû
UPûFORûûDAYSû
!ûWALL
CROSSINGûEXERCISEûPRECEDEDûLAUNCHû
ANDûLEDûTOûVISIBILITYûONûTHEûFULLûDEALûSIZEû
EXPECTEDûINûEARLYû&EBRUARY POSTPONEûITSû53Mû.ASDAQû)0/ûONû
Thursday amid tough conditions in the new
issue market and the dismal trading
PERFORMANCEûOFûAûTRIOûOFûOTHERûBITCOINû
4HEûTOPûûORDERSûTOOKûûOFûTHEûBOOKû
WHICHûWASûMULTIPLEûTIMESûSUBSCRIBEDûANDû
SKEWEDûTOûLONG
ONLYûNAMESûANDûEXISTINGû
shareholders that were keen to top up, a
BANKERûINVOLVEDûSAIDû
3OMEûSIZEABLEûORDERSûTHATûWEREûPLACEDû
LATEûINûTHEûBOOKBUILDûWEREûALSOû
ACCOMMODATEDû
"ANKûOFû!MERICAûWASûALSOûSOLEûGLOBALû
COORDINATORûONû"ALTICû#LASSIlEDSûaMû)0/û
AMERICAS
Cowen had planned to price the offering on
UNITED STATES
CHALLENGES MOUNT FOR US ECM
)TûISûONLYû*ANUARYûBUTûALREADYûTHEûHANGOVERû
FROMûLASTûYEARSûFRENETICûLEVELSûOFû53û%#-û
MINERSûTHATûWENTûPUBLICûLATEûLASTûYEAR
!ûSYNDICATEûLEDûBYûB Riley Securities and
7EDNESDAYûNIGHTûAFTERûMARKETINGûMûNEWû
2HODIUMûSHARESûATû53nûOVERûTHEû
PREVIOUSûWEEK
"ANKERSûCLOSEûTOûTHEûDEALûCITEDûMARKETû
conditions for the decision not to proceed
with the offering, which was timed
alongside renewed declines in technology
INû*UNEûANDûJOINTûBOOKRUNNERûWITHû".0û ACTIVITYûHASûARRIVEDûFORCINGûSOMEû)0/û STOCKSûINûRECENTûWEEKS
0ARIBAS aspirants to reconsider their near-term 2HODIUMûWHICHûPLANNEDûTOûUSEûTHEû
PLANSûTOûGOûPUBLICûASûINVESTORSûLICKûTHEIRû PROCEEDSûTOûEXPANDûITSûBITCOINûMININGû
CPH2 TARGETS £50m FOR ELECTROLYSER
PRODUCTION
CLEAN POWER HYDROGEN, a commercial green
SHORTENEDûWEEKûLIMITEDûTHEûNUMBERû
wounds from an epic sell-off in growth
STOCKS
Though the start of earnings season and a
HOLIDAY
9ETûWITHûTHEûPREVIOUSûTHREEûALLûDOWNûMOREû
OPERATIONSûWOULDûHAVEûBEENûTHEûFOURTHû
BITCOINûMINERûTOûGOûPUBLICûINûTHEû53ûSINCEû
3EPTEMBER
HYDROGENûBUSINESSûALSOûKNOWNûASû#0(ûISû OFûDEALSûBANKERSûHAVEûALREADYûADVISEDûMANYû than 20% from their IPO prices it left many
TARGETINGûaMûINûANû!)-û)0/ companies in the IPO pipeline to delay their SCRATCHINGûTHEIRûHEADSûWHYû2HODIUMûWOULDû
CPH2 manufactures hydrogen production OFFERINGS FAREûANYûBETTER
UNITSûDEVELOPEDûTHROUGHûITSû)0
PROTECTEDû Some are still hoping to launch though 4HEû)0/ûTERMSûVALUEDû2HODIUMûATûUPûTOû
MEMBRANE
FREEûELECTROLYSERû)NTELLECTUALû some are waiting to see whether the coming 53BNû4HEûTHREEûMINERSûTHATûWENTû
property protection should allow the group WEEKSû&/-#ûMEETINGûWILLûOFFERûSOMEûSORTû PUBLICûLATEûLASTûYEARû!RGOû"LOCKCHAINû
TOûPURSUEûINTERNATIONALûJOINTûVENTURESûANDû OFûmOORûONûSINKINGûSTOCKûVALUATIONS 3TRONGHOLDû$IGITALû-ININGûANDû)RISû%NERGYû
LICENSINGûARRANGEMENTSûENABLINGûITûTOûSCALEû 4HEûPASTûWEEKSûONLYû)0/SûFROMûTRIPLEûNETû HAVEûSEENûTHEIRûVALUATIONSûFALLûTOûAROUNDûTHEû
UPûQUICKLYûANDûATûLOWûCOST LEASEû2%)4û&OURû3PRINGSû#APITALû4RUSTûANDû 53MnMûMARK
!CCORDINGûTOû#0(ûTHEûHYDROGENû BITCOINûMINERû2HODIUMû%NTERPRISESûWEREû
economy is forecast to lead to a 650 times postponed on Thursday after failing to price US EQUITIES
INCREASEûINû%UROPEANûDEMANDûFORû LATEû7EDNESDAYû4HATûWASûHARDLYûAûSURPRISEû BOOKRUNNERS: 1/1/2022 TO DATE
ELECTROLYSERSûBYûûWITHûANû%5û ASûTHEûAVERAGEûLOSSûFROMûLASTûYEARSû
PLUSû Managing No of Total Share
ELECTROLYSISûCAPACITYûTARGETûEQUIVALENTûTOû 53û)0/SûHASûWIDENEDûTOûMOREûTHANûû bank or group issues US$(m) (%)
'7û4HATûISûEXPECTEDûTOûREQUIREûANû "ANKERSûSTILLûMANAGEDûTOûRAISEû53BNû 1 Morgan Stanley 8 1,176.47 17.1
INVESTMENTûOFûUPûTOûõBNûTOWARDSû LASTûWEEKûFROMûOVERNIGHTûSTOCKûSALESû 2 Bank of America 8 1,107.10 16.1
electrolysers producing 10 million tonnes INCLUDINGûDEALSûFROMûBITCOIN
FRIENDLYû 3 JP Morgan 5 866.17 12.6
PERûYEARûOFûRENEWABLEûHYDROGEN 3IGNATUREû"ANKû53M û2%)4û!MERICANû 4 Goldman Sachs 5 858.79 12.5
The group is targeting electrolyser sales (OMESûû2ENTû53M ûANDûALTERNATIVEû 5 Citigroup 4 658.41 9.6
EQUIVALENTûTOû'7ûPRODUCTIONûCAPACITYûBYû ENERGYûlRMû%NVIVAû53M  6 RBC 4 515.66 7.5
ûEQUIVALENTûTOûAûûSHAREûOFûTHEû $EALûmOWûHASûNOTûYETûCOMEûTOûAûCOMPLETEû 7 Jefferies 5 374.59 5.5
PROJECTEDû%5ûMARKETûALTHOUGHû#0(ûHASû STANDSTILLûTHOUGHûBANKERSûAREûCLEARLYûBEINGû 8 Evercore Partners 4 236.53 3.4
GLOBALûAMBITIONSû4HEûGROUPûHASûAû SELECTIVEûABOUTûTHEûTYPESûOFûCOMPANIESûTHATû 9 Credit Suisse 1 173.33 2.5
CONTRACTEDûORDERûBOOKûEQUIVALENTûTOû-7ûOFû AREûCOMINGûTOûMARKETûTOûRAISEûCAPITAL 10 Barclays 2 172.18 2.5
UNITûPRODUCTIONûFORûDELIVERYûINûûANDûAû "USINESSûDEVELOPMENTûCOMPANYû3ILVERû Total 19 6,867.43
PIPELINEûATûVARYINGûSTAGESûOFûDEVELOPMENTû 3PIKEû)NVESTMENTû53M ûHOPESûTOûPRICEû Including all domestic and international deals and rights issues
FORûPOTENTIALûORDERSûINûEXCESSûOFû-7 its IPO post-close Tuesday while high-speed Source: Refinitiv SDC code: C3r

86 International Financing Review January 22 2022

 EQUITIES AMERICAS

THEûSALEûOFûMûSHARESûREPRESENTINGûABOUTû

Four Springs Capital Trust ûOFûTHEûSINGLE FAMILYûHOMEû2%)4ûATû

53ûTHEûBOTTOMûOFûAû53nû
RANGEûANDûAûûDISCOUNTûTOû7EDNESDAYSû

pulls plug on NYSE IPO CLOSINGûPRICEûOFû53

Half of the offering (10m of the 20m
SHARES ûWASûSTRUCTUREDûASûAûFORWARDûSALEûTHATû
„ US Carlyle and Goldman Sachs-backed REIT fails in second IPO attempt
FOUR SPRINGS CAPITAL TRUST, an internally
managed triple-net-lease REIT that counts
Amazon as its largest tenant, conceded defeat
late on Thursday by officially postponing an
up to US$270m NYSE IPO due to “market
conditions”.
Morgan Stanley, Goldman Sachs, Wells Fargo,
Mizuho Securities and Scotiabank tried in vain to
stitch together a deal after the IPO of 18m shares
at US$13–$15 failed to be priced as scheduled
Wednesday night.
This was the second time Four Springs pulled
the plug on an IPO after a full marketing effort,
was to convert into equity at 90% of the IPO
price, so the lower the price the higher their
stake.
Carlyle and Goldman Sachs would have been
diluted to 29.8% and 10.2%, from 52.9% and
18.1%, if the deal had gone ahead at a midpoint
US$14 pricing.
In April, the dividend on the preferred stock
increases to 12%, from 11.5% currently, if Four
Springs is unable to complete the IPO by then.
Unfortunately, “Net lease REIT IPOs are never
easy”, as one investor told IFR.
Four Springs postponed its IPO amid an influx
CANûBEûSETTLEDûFORûCASHûOVERûTHEûNEXTûYEARû
ENABLINGûTHEû2%)4ûTOûREDUCEûIMMEDIATEû
earnings dilution from the offering and
delay collecting part of the proceeds until it
ISûREADYûTOûSPENDûTHEMû
!MERICANû(OMESûSHARESûCLOSEDû4HURSDAYû
SLIGHTLYûABOVEûOFFERûATû53
The stock touched a record high of
53ûONû$ECEMBERûûCAPPINGûAûû
SURGEûLASTûYEAR
The landlord of more than 56,000 homes
INûûSTATESûISûBENElTINGûFROMûHIGHû
occupancy rates and rising rents, as well as a
surge in US home prices during the
PANDEMICûAûûANNUALûGAINûTHROUGHû
having failed at an earlier attempt in 2017 (5.6m
shares at US$17–$19).
3HILLERû53û.ATIONALû(OMEû0RICEû)NDEX 
Not many get a third chance.
Four Springs raised US$200m last year from
of new capital into the net lease sector. Netstreit /CTOBERûACCORDINGûTOûTHEû30û#ORE,OGICû
and Spirit Realty Capital raised US$200m and #ASE
US$390m from stock sales in recent weeks to !MERICANû(OMESûREVEALEDûALONGSIDEûTHEû
fund acquisitions they expect to complete this OFFERINGûITûEXPECTSûTOûPOSTûNETûPROlTûOFû
the sale of preferred stock to Carlyle and an year. 53MnMûFORû1ûûORûnûCENTSûAû
affiliate of Goldman Sachs. The preferred stock Robert Sherwood SHAREûANDûABOVEûTHEûNINE
CENTûANALYSTû
CONSENSUS
!VERAGEûOCCUPANCYûROSEûTOûûUPûFROMû
2HODIUMûWHICHûMINESûBITCOINûFROMûITSû HEALTHûANDûWELLNESSûWHOSEû53Mû3ILVERû ûONûAûSEQUENTIALûBASISûWHILEûTHEûRENTSû
BASEûINû4EXASûANDûCLAIMSûTOûDOûSOûATûAûMUCHû 3PIKEû!CQUISITIONû)û30!#ûMERGEDûWITHû ITûCHARGEDûROSEûBYû
LOWERûPOWERûCOSTûTHANûTHEûINDUSTRYûAVERAGEû ONLINEûCANNABISûRETAILERû7-û4ECHNOLOGY 4HEû2%)4ûISûUSINGûPARTûOFûTHEûMONEYûRAISEDû
GENERATEDûAûNETûPROlTûOFû53MûONû 7-û4ECHNOLOGYûTRADESûATû53ûHAVINGû to repay a portion of the US$550m it spent
REVENUESûOFû53MûINûTHEûNINEûMONTHSû TUMBLEDûFROMû53ûINû.OVEMBERûAFTERû in the fourth quarter on home purchases
ENDEDû3EPTEMBERû registering stock late last year it used to ANDûLANDûDEVELOPMENT
.ORWAY
LISTEDûINVESTMENTûCOMPANYû$,4Xû FUNDûACQUISITIONS !MERICANû(OMESûEXECUTEDûAûSIMILARû
Aû2HODIUMûSHAREHOLDERûCONlRMEDûINûAû The insider support is a new addition after US$600m stock sale/partial forward sale in
STATEMENTûONû4HURSDAYûTHATûTHEû2HODIUMû 3ILVERû3PIKEûFAILEDûTOûRAISEûAûLARGERû53Mû -AYûLASTûYEARûSETTLINGûTHEûREMAININGûMû
)0/ûHADûBEENûPOSTPONEDûAHEADûOFûITSû from a pure-strain IPO last summer that left on the forward portion in the fourth
PLANNEDû*ANUARYûûDEBUTûTHOUGHûITûDIDûNOTû launched and was marketed at the same QUARTERû)TûALSOûRAISEDû53MûDURINGûTHEû
ELABORATEûONûTHEûREASONSû 53ûPRICEûWITHOUTûTHEûBACKSTOP PASTûQUARTERûBYûSELLINGûSTOCKûONûTHEûOPENû
7HENû2HODIUMûlRSTûlLEDûPUBLICLYûINû 4HEû3ILVERû3PIKEû"$#ûPLANSûTOûUSEû MARKETûATûANûAVERAGEûPRICEûOFû53
.OVEMBERû$,4Xû#%/û4HOMASû#HRISTENSENû proceeds from the IPO to seed new loans in
SAIDûHISûCOMPANYûWASûhCONlDENTûTHATûTHEû THEûCANNABISûINDUSTRYû7ITHûNOûPORTFOLIOû FAST-GROWING SIGNATURE
MARKETûWILLûBEûENTHUSIASTICûABOUTûTHISû)0/v CURRENTLYûITûEXPECTSûITûWILLûTAKEûTHREEûTOûNINEû RAISES US$740m
MONTHSûTOûDEPLOYûTHEûCAPITAL
SILVER SPIKE REHASHES 3ILVERû3PIKEû#APITALûTHEû"$#SûEXTERNALû .EWû9ORK
BASEDûSIGNATURE BANK raised
CANNABIS BDC IPO manager, separately announced an 53MûFROMûAûBLOCKûSALEûLATEûONû4UESDAYû
agreement on Thursday to merge its THEûBITCOIN
FRIENDLYûBANKSûTHIRDûSTOCKûSALEû
SILVER SPIKE INVESTMENTûANûEXTERNALLYû 53Mû3ILVERû3PIKEû!CQUISITIONû))û30!#û INûTHEûPASTûYEARûASûCAPITALûNEEDSûHAVEû
MANAGEDû"$#ûFOCUSEDûONûTHEûCANNABISû WITHû%LEUSISûAûCLINICAL
STAGEûBIOTECHû increased alongside its sharply accelerated
sector, launched a US$125m IPO last week TARGETINGûDEPRESSIONûWITHûANû)6
DELIVEREDû BALANCEûSHEETûGROWTH
WITHûAûSLIGHTûTWISTûSPECIlCALLYûTHATûTHEû PSYCHEDELICûDRUG Goldman Sachs, Morgan Stanley and Jefferies
EXTERNALûMANAGERûISûPURCHASINGû53Mn SOLDûMû3IGNATUREûSHARESûFORûûOFûTHEû
MûOFûTHEûSHARESûINûTHEûOFFERING AMERICAN HOMES 4 RENT COLLECTS OUTSTANDINGûATû53ûTHEûBOTTOMûOFûTHEû
)TûWASûNOTûANûANCHORûORDERûGIVENûTHATûTHEû US$783m OVERNIGHT 53nûRANGEûANDûAûûDISCOUNTûTOû
MONEYûISûNOTûFROMûAûNEWûINVESTORûBUTûITû LASTûSALEûALSOû53 
DOESûSHRINKûTHEûPOTûOFûPUBLICûFUNDINGû AMERICAN HOMES 4 RENTûRAISEDû53MûFROMû In a tough market for secondary offerings,
NEEDEDûTOûCOMPLETEûTHEûDEAL ANûOVERNIGHTûSTOCKûSALEûONû7EDNESDAYû THISûPRICINGûOUTCOMEûPROVEDûAGGRESSIVEû
Stifel and Piper JaffrayûAREûMARKETINGûMû earmarking the proceeds to fund recent WITHûTHEûSHARESûPULLINGûBACKûTOû53ûBYû
SHARESûATûAûlXEDû53ûOFFERûPRICEûFORû HOMEûPURCHASESûANDûPROVIDINGûDRYûPOWDERû 4HURSDAYSûCLOSE
PRICINGûNEXTû4UESDAYû*ANUARYû FORûMOREûACQUISITIONS #URRENTûLEVELSûSTILLûREPRESENTûAûSUBSTANTIALû
4HEû"$#ûISûEXTERNALLYûMANAGEDûBYû3ILVERû !ûSYNDICATEûLEDûBYûBank of America, JP premium to the US$232 price at which
Spike Capital, an asset manager focused on Morgan, Citigroup and Morgan Stanley priced 3IGNATUREûRAISEDû53MûVIAû-ORGANû

International Financing Review January 22 2022 87

3TANLEYûANDû"ANKûOFû!MERICAûINû*ULYû
Signature also raised US$630m from a
FOLLOW
ONûOFFERINGûPRICEDûATû53ûAûSHAREû
BASEDû
ENVIVA BURNISHES ESG CREDENTIALS )NûCONJUNCTIONûWITHûTHEûlNANCINGû%NVIVAû
FOR NEW FUNDING REVEALEDûITûHADûAûMEMORANDUMûOFû
UNDERSTANDINGûWITHûITSûlRSTû53
INû&EBRUARY ENVIVAûAûMAKERûOFûWOODûPELLETSûUSEDûBYû COMPANYûTOûhCO
DEVELOPûAûSUPPLYûCHAINû
4HEûLATESTûSALEûCAMEûAFTERûTHEûBANKûEARLIERû UTILITIESûASûANûALTERNATIVEûFEEDSTOCKûTOûCOALû STRATEGYûFORûAûRElNERYûTHATûTHEûCOMPANYûISû
on Tuesday reported strong fourth-quarter PICKEDûUPû53MûINûAûSTOCKûSALEûOVERNIGHTû EVALUATINGûFORûCONSTRUCTIONv
NUMBERSûAMIDûSURGINGûDEPOSITûGROWTHûINû ONû7EDNESDAY
PARTûDRIVENûBYûITSûDIGITALûBANKINGûUNITû4HEû Goldman Sachs, Citigroup and JP Morgan, the BASIS FILES FOR NASDAQ IPO
NUMBERSûBEATû3TREETûESTIMATESûONûSEVERALû ACTIVEûBOOKRUNNERSûONûTHEûOFFERINGû
METRICSûINCLUDINGûNETûINTERESTûMARGINS CONlDENTIALLYûMARKETEDûTHEûlNANCINGûFORû BASIS GLOBAL TECHNOLOGIESûHASûlLEDûAû53Mû
4HEûOFFERINGûALSOûFOLLOWSûTHEûSTOCKSû two full days, allowing them to launch the placeholder for a Nasdaq IPO, putting the
INCLUSIONûINûTHEû30ûûLASTûMONTHû MûSHAREûOFFERINGûOVERSUBSCRIBEDûAFTERûTHEû #HICAGO
BASEDûWORKmOWûAUTOMATIONûANDû
TYPICALLYûAûUSEFULûEVENTûAROUNDûWHICHûTOû 53ûMARKETûCLOSEûONû7EDNESDAY MEDIAûBUYINGûSOFTWAREûlRMûONûTRACKûFORûAû
TIMEûAûSTOCKûSALE 4HEYûPRICEDûTHEûFULLûMûSHARESûONû &EBRUARYûDEBUT
3IGNATURESûREMARKABLEû53BNûSURGEûINû 4HURSDAYûMORNINGûATû53ûTHEûBOTTOMûOFû Goldman Sachs, Bank of America and RBC
DEPOSITSûINûTHEûPASTûYEARûAûûINCREASEûWASû THEû53nûMARKETINGûRANGEûANDûAûû Capital MarketsûLEADûANû
lRMûSYNDICATEû
SUPPORTEDûBYûITSûFAST
GROWINGûDIGITALûASSETû DISCOUNTûTOû7EDNESDAYSû53ûCLOSE NAMEDûONûTHEûCOVERûOFûTHEûlLING
BANKINGûTEAMûWHICHûGREWûDEPOSITSûBYû %NVIVAûCLOSEDû4HURSDAYûTRADINGûATû &OUNDEDûûYEARSûAGOûBYû#%/û3HAWNû
53BNûDURINGûTHEûPASTûQUARTERûALONEû 53ûPROVIDINGûAûTIDYûPROlTûFORû 2IEGSECKERû"ASISûREPORTEDûNETûINCOMEûOFû
(including on the Signet payments INVESTORSûTHATûPARTICIPATED 53MûFROMûREVENUESûOFû53MûINûTHEû
PLATFORM û /NEûhLARGEûGLOBALûINVESTORvûTOOKûDOWNû lRSTûNINEûMONTHSûOFûûTHEûLATTERûUPû
!SKEDûONû4UESDAYSûEARNINGSûCALLûABOUTû 53MûOFûTHEûOFFERINGûIDENTIlEDûBYûONEû $IGITALûADVERTISERSûUSEû"ASISSûSOFTWARE
AS

CAPITALûRATIOSû#//û%RICû(OWELLûDIDûNOTûLETûONû BANKERûINVOLVEDûASûAûLONG
ONLYûINSTITUTIONû A
SERVICEûPLATFORMûTOûPURCHASEûMOBILEû
THATûANûOFFERINGûWASûIMMINENTûBUTûTOLDû RATHERûTHANûAûSTRATEGICûCORPORATEûEVENû DISPLAYûANDûVIDEOûADVERTISINGûINVENTORYû
ANALYSTSûh)FûWEûSEEûANûEXTENDEDûPERIODûOFû THOUGHû%NVIVAûALSOûANNOUNCEDûITûHADûINKEDû FROMûPUBLISHERS
GROWTHûINûOURûFUTUREûWEREûNOTûGOINGûTOûBEû AûDEALûWITHûITSûlRSTû53
BASEDûCUSTOMERûTOû 4HEû)0/ûlLINGûCOMESûAFTERûTHEûCOMPANYû
SHYûABOUTûRAISINGûCAPITALv SUPPORTûBIOFUELûRElNINGûFACILITIES CHANGEDûITSûNAMEûFROMû#ENTROûINû/CTOBERû
4HEûBANKûSHRUGGEDûOFFûQUESTIONSûABOUTû 4HATûTHEûOFFERINGûWASûOVERSUBSCRIBEDûISû LASTûYEARûTHEûTHûANNIVERSARYûOFûITSû
the impact of falling crypto prices on its HARDLYûSURPRISINGûGIVENûTHEûLARGEûANCHORû INCORPORATION
prospects, though it plans more disclosure ORDERû-OREûSURPRISINGûISûTHATû%NVIVAûOPTEDû "ASISûWHOSEûBIGGESTûSHAREHOLDERûWITHû
ABOUTûDIGITALûINITIATIVESûLATERûINûTHEûQUARTERû NOTûTOûUPSIZEûWITHûADDITIONALûISSUANCEû ûISû3ANû&RANCISCO
BASEDûVENTUREûCAPITALû
one of which could include issuing LIMITEDûTOûûSHARESûFROMûTHEû lRMû&46û6ENTURESûlRSTûlLEDûCONlDENTIALLYû
STABLECOINSûONûBEHALFûOFûCUSTOMERS GREENSHOE ONû/CTOBERû

ECM DEALS: WEEK ENDING 21/1/2022

Stock Country Date Amount Price Deal type Bookrunner(s)
Groupe M6 France 18/01/2022 €107 €16.80 Accelerated Bookbuild (Secondary) Natixis/Oddo BHF, Societe Generale
AInnovation Hong Kong 21/02/2022 HK$1.18bn HK$26.30 IPO (Primary) CICC, UBS
Vedanta India 18/01/2022 Rs11.9bn Rs313 Follow-on (Secondary) Citigroup
Glanbia Ireland 19/01/2022 €70m €12.25 Accelerated Bookbuild (Secondary) BNP Paribas, Goodbody, HSBC, Rabobank/Kepler Cheuvreux
Mitsui Fudosan Logistics Park Japan 19/01/2022 ¥17.7bn ¥545,190 Follow-on (Primary) Daiwa, Nomura, SMBC Nikko
Nippon Paint Holdings Japan 17/01/2022 ¥129.2bn ¥922 Follow-on (Secondary) BofA, Nomura, Morgan Stanley, SMBC Nikko
Baltic Classifieds Group Lithuania 20/01/2022 £77.6m 207p Accelerated Bookbuild (Secondary) BofA
DUET Acquisition Malaysia 19/01/2022 US$75m US$10 SPAC IPO (Primary) EF Hutton
Stellantis Netherlands 20/01/2022 €732m €18.30 Accelerated Bookbuild (Secondary) BNP Paribas
OMV Petrom Romania 19/01/2022 L978.25m L0.43 Accelerated Bookbuild (Secondary) Erste Group, SSIF Swiss Capital, Banca Comerciala Romana,
Auerbach Grayson
Novo Tellus Alpha Acquisition Singapore 19/01/2022 S$150m S$5 IPO (Primary) CS, DBS, CIMB
Straits Trading Singapore 14/01/2022 S$81m S$3.11 Follow-on (Primary) CLSA, DBS, Maybank, Phillips, RHB, UOB
Truecaller Sweden 19/01/2022 SKr1.067bn SKr72 Accelerated Bookbuild (Secondary) Carnegie, JP Morgan
AP Memory Technology Taiwan 20/01/2022 US$190m US$29,65 Follow-on (Secondary) Credit Suisse
Marlowe UK 20/01/2022 £131m £10 Accelerated Bookbuild (Primary) Berenberg, Cenkos, Stifel Nicolaus
AIB Acquisition I US 18/01/2022 US$75m US$10 SPAC IPO (Primary) Maxim Group
American Homes 4 Rent US 19/01/2022 US$783m US$40.60 Accelerated bookbuild (Primary, BofA, JP Morgan, Citigroup, Morgan Stanley
Primary via forward sale)
Banyan Acquisition US 19/01/2022 US$210m US$10 SPAC IPO (Primary) BTIG
Enviva US 19/01/2022 US$301m US$72 Accelerated bookbuild (Primary) Goldman Sachs, Citigroup, JP Morgan, Barclays, BMO CM,
HSBC, RBC CM, Truist Securities
Four Springs Capital US 19/01/2022 US$270m US$15 IPO (Primary) Morgan Stanley, GS, Wells Fargo, Mizuho Securities
HCM Acquisition US 20/01/2022 US$250m US$10 SPAC IPO (Primary) Cantor
Heartland Media Acquisition US 20/01/2022 US$175m US$10 SPAC IPO (Primary) BofA, Moelis
KnightSwan Acquisition US 20/01/2022 US$200m US$10 SPAC IPO (Primary) RBC CM
Rhodium Enterprises US 19/01/2022 US$107.7m US$14 IPO (Primary) B Riley Securities, Cowen
Signature Bank US 18/01/2022 US$739.2m US$355.70 Accelerated bookbuild (Primary) Goldman Sachs, Morgan Stanley, Jefferies

88 International Financing Review January 22 2022


ARCELLX FILES FOR NASDAQ IPO
SPECIALISTûSTABLEûANDûAûDEALûSTRUCTUREDû
#ANCERûDRUGûDEVELOPERûARCELLXûlLEDûAû
US$100m placeholder for a Nasdaq IPO as it
LOOKSûTOûFUNDûAûNEWûCELLûTHERAPYûFORûBONEû
MARROWûCANCER
4HEûlLINGûPUTSû!RCELLXûONûTRACKûTOûGOû
STRUCTURED EQUITY
30!#
WITHûANûINNOVATIVEûPROVISIONûTOûENCOURAGEû
INVESTORSûNOTûTOûREDEEMûATûTHEûTIMEûOFûAû STRUCTURED EQUITY
MERGER
KENSINGTON CAPITAL ACQUISITION IV comes with
a Class 1 and Class 2 warrant, potentially IRELAND
PROVIDINGûINVESTORSûWITHûUPûTOûTWOûWARRANTSû
PUBLICûINû&EBRUARYûEIGHTûMONTHSûSINCEû EXERCISABLEûATû53 GLANBIA GETS EUROPE UNDER WAY WITH
collecting US$120m from a Series C The catch here is the Class 2 warrants EB AND SELL-DOWN
CROSSOVERûROUNDûINû*UNE REMAINûINûPLACEûONLYûIFûINVESTORSûDOûNOTû
Bank of America, SVB Leerink, Barclays and REDEEMûTHEIRûSHARESûFORûCASHûATûTHEûMERGER !FTERûAûLONGûPERIODûOFûSLUMBERûINTERRUPTEDû
William Blair AREûACTINGûASûJOINTûBOOKS h4HEûEXPIRATIONûOFûTHEû#LASSûûWARRANTSû BYûONLYûTWOûSYNTHETICSû%UROPEANûEQUITY

!RCELLXûISûRUNNINGûAû0HASEû)ûTRIALûOFûCANCER
upon redemption of the shares to which linked properly opened on Wednesday
KILLINGû#!2
4ûDRUGSûTHATûAREûPOTENTIALLYûSAFERû they are attached is different from a typical EVENINGûFORûTHEûlRSTûTIMEûSINCEûMID

ANDûMOREûPOTENTûTHANûEXISTINGûAPPROVEDû BLANKûCHEQUEûCOMPANYûOFFERINGvû .OVEMBERûWITHûAûõMûBONDûISSUEû
TREATMENTS +ENSINGTONûOUTLINESûINûTHEû)0/ûlLING EXCHANGEABLEûINTOû)RISHûDAIRYûANDûNUTRITIONû
4HEûBIOTECHûREPORTEDûIMPRESSIVEûINTERIMû +ENSINGTONûOFFSETSûITSûGENEROSITYûBYûFULLYû BUSINESSûGLANBIA
RESULTSûLASTûMONTHû!TûTHEû.OVEMBERûûCUT
FUNDINGûTHEûTRUSTûRATHERûTHANûOVER
FUNDINGû The issuer was GLANBIA CO-OPERATIVE SOCIETY,
OFFûDATEûALLûûPATIENTSûWITHûBONEûMARROWû ASûHASûBECOMEûSTANDARDûPRACTICEûANDû WHICHûHASûMADEûPREVIOUSûSELL
DOWNSûINû
cancer that took a single infusion of the cell EXTENDINGûTHEûINVESTMENTûTENORûONûTHEûNEWû 'LANBIAûANDûSOLDûAûFURTHERûûONû7EDNESDAYû
THERAPYûûDAYSûEARLIERûWEREûSHOWINGû 30!#ûTOûTHEûFULLûûMONTHS ALONGSIDEûTHEûISSUEûOFûEXCHANGEABLEûBONDS
POSITIVEûRESPONSESûINCLUDINGûûTHATûWENTû UBSûISûSOLEûBOOKRUNNERûONû+ENSINGTONû)6 0ROCEEDSûWILLûBEûUSEDûTOûFUNDûTHEû
INTOûREMISSIONû/NEûOFûTHEûûPATIENTSûDOSEDû +ENSINGTONûISûNOTûTHEûlRSTûTOûTACKLEûTHEû ACQUISITIONûOFû'LANBIASûûSTAKEûINû'LANBIAû
SOûFARûEXPERIENCEDûAûSERIOUSûSIDEûEFFECT PROBLEMûOFûHIGHûINVESTORûREDEMPTIONSû"ILLû )RELANDûANNOUNCEDûINû.OVEMBER
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TRIALûANDûLAUNCHû0HASEû))ûBEFOREûTHEûENDûOFû CAMEûWITHûAûhTONTINEvûPROVISIONûWHEREBYû share sale came shortly after 5pm in London
THISûYEARû)TûISûALSOûINûPRE
CLINICALû INVESTORSûTHATûDOûNOTûREDEEMûAREûELIGIBLEûTOû ONû7EDNESDAYûWITHûAPPROXIMATELYûMû
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4ûTREATMENTSûFORû collect more than the one-ninth warrant SECONDARYûSHARESûINû'LANBIAûONûOFFERûWITHû
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53Mû30!#û)0/ûTHEûLATESTûFROMûTHEû THEûOFFERING !""ûANDûDELTAûPLACINGûRISKEDûMISSINGûOUT

International Financing Review January 22 2022 89

 Country Garden makes CB comeback
„ CHINA Developer finds success with deal as secondary prices recover
Chinese property developer COUNTRY GARDEN has
raised HK$3.9bn (US$501m) from a convertible
bond to refinance offshore debt, a week after
failing to attract enough demand for a proposed
deal.
The completion of the chunky transaction was
a welcome boost to the Chinese property sector,
as some weaker developers continue to struggle
for funding.
The latest offering came with sweetened
terms and took advantage of a strong share
price recovery, after media reports suggested
that China is drafting nationwide rules to make
it easier for property developers to access funds
from sales currently held in escrow accounts.
The 4.5-year put two CB carries a yield-to-
maturity of 4.95% and a conversion premium of
16.4% above the close of HK$6.96 on Thursday.
This compares with the proposed terms of
a US$300m three-year put-two CB for which
Country Garden tested the water with the help of
Morgan Stanley and JP Morgan on January 12.
That deal would have carried a yield-to-
maturity of 4.75% and a conversion premium
of 25%. The proposed deal did not go ahead
as there was not enough demand, but more
investor-friendly terms helped the Baa3/BB+/
BBB– rated issuer cross the line this time.
“In our view, this issuance, along with the
Country Garden’s recent onshore transactions,
demonstrate the company’s stronger-than-peer
funding capability in a very volatile funding
environment,” wrote S&P on Friday.
It noted that Country Garden this month
issued Rmb520m (US$82m) in asset-backed
securities, the first issue by a Chinese private
sector developer this year, as well as a Rmb1bn
onshore bond last month.
Country Garden’s US dollar bonds fell after
news spread of the unsuccessful CB attempt
the previous week, sending the yield on its
September 2025 notes up two percentage
points to 12% on January 13.
Weakening sentiment for Chinese property
bonds sent the yield on the 2025s up even more
to a peak of 17.8% on January 17, but by the time of
the new trade it had come back to around 8.3%.
This was despite further bad news from the sector,
as China Aoyuan Group announced it would not
redeem a combined US$1.086bn in principal of
bonds maturing on January 20 and 23.
Country Garden also attempted to reassure
investors about its own liquidity by buying back
US$10m in principal of two outstanding bonds,
helping secondary prices recover slightly.
COOLING OFF
There was a cooling-off period of two weeks
from the market sounding on January 12, which
basically meant the two banks could not bring
the CB back to the market within this period.
A different bookrunner, though, faced no such
restrictions.
UBS, as sole global coordinator and sole
bookrunner, brought the deal back on Thursday
after reverse inquiries from a handful of CB
investors and non-traditional investors.
The club deal was sold to fewer than 10
investors with the top three taking the majority
of the transaction.
“Similar to other developers, Country Garden
is hungry for funds. We are not surprised to see it
pay up to raise as much as it can,” said a banker
away from the deal.
The company plans to use the proceeds to
refinance existing medium to long-term offshore
debt that will become due within one year.
Country Garden has a US$411m bond
maturing on January 27, but said the proceeds
from the CB will not be used to redeem it. That
will be repaid on time at maturity using internal
resources, it said.
It also has a US$695m bond maturing on July
25 and a US$625m note due on January 17 next
year.
Shares in Country Garden surged a combined
18.6% from Tuesday to Thursday. The stock fell
5.8% to HK$6.56 on Friday morning due to the
dilutive effect of the CB issue.
Fiona Lau, Daniel Stanton

0RICINGûCAMEûATûûUPûûWITHûTHEû 4HEûBONDûmOORûWASûûFROMûGUIDANCEû h7EREûSEEINGûAûLOTûOFû)'ûPAPERûLEAVINGû

õû!""ûPRICINGûREPRESENTINGûAûTIGHTûû of 93%–95% with implied of 19% on THEûMARKETûANDû)'ûVALUATIONSûINûTHEû
DISCOUNTûANDûANûINITIALûEXCHANGEûPRICEûOFû PRICING SECONDARYûMARKETûAREûVERYûRICHûSOûTHEû
õû4HEûSECONDARYûSALEûTOTALLEDûõM 4HEûBONDSûWEREûTRADINGûAROUNDûn SYNTHETICSûSERVEDûAûPURPOSEûFORûLONG

ûONû4HURSDAYûMORNING ONLYûMONEYûWANTINGûEXPOSUREûTOû)'û
GLOBAL CONVERTIBLE OFFERINGS 4HEûlNALûDELTAûPLACINGûWASûJUSTûUNDERû CREDITûANDûLARGEûLIQUIDûUNDERLYINGvûHEû
BOOKRUNNERS: 1/1/2022 TO DATE õM SAID
Managing No of Total Share !ûMULTIPLEûTIMESûCOVEREDûBOOKûWASû 4HOSEûWEREûFORûAûSPECIlCûPURPOSEû
bank or group issues US$(m) (%)
1 JP Morgan 1 487.87 34.0
STARTSûTRADESûWITHûMOREûBROADû
2 Goldman Sachs 2 318.02 22.1
=2 Morgan Stanley 2 318.02 22.1
THIRDS !ûSECONDûBANKERûINVOLVEDûSAIDûTHATû
4 Credit Suisse 1 141.67 9.9
5 UBS 1 62.50 4.4
GRADEûISSUERSûINûBENCHMARKû
=5 Yuanta Finl Hldg 1 62.50 4.4
7 Ageas 1 45.30 3.2
Total 5 1,435.88
skewed to outrights and wall-crossed HEûSAIDûBUTûTHEûHOPEûISûTHATû'LANBIAû
ACCOUNTSû4HEûTOPûûORDERSûTOOKûMOREûTHANû KICK
ûOFûTHEûBOOKûANDûTHEûTOPûûORDERSûTOOKû APPEAL
MOREûTHANûTWO
4HEûSTOCKûCLOSEDûDOWNûûATûõûONû INVESTORSûAREûLOOKINGûFORûINDUSTRIALûNAMESû
4HURSDAY ANDûINVESTMENT
4HEûBANKERûSAIDûTHATûTHEûBANKûSYNTHETICû SIZE
issuance was a result of a major lack of BNP Paribas and HSBCûWEREûJOINTûGLOBALû
INVESTMENT
GRADEûPAPERûWITHûAûNUMBERûOFû COORDINATORSûANDûJOINTûBOOKRUNNERSûWITHû
Including exchangeables and domestic offerings. )'ûBONDSûALREADYûMATURINGûTHISûYEARû Rabobank/Kepler CheuvreuxûGoodbody was co-
Source: Refinitiv SDC code: C9 INCLUDINGû-ICHELINûANDû5NIBAIL MANAGER

EQUITY-LINKED DEALS WEEK ENDING: 21/1/2022

Issuer Country Date Amount Greenshoe Tenor Coupon/YTM % Premium (%) Bookrunner(s)
Country Garden China 20/01/2022 HK$3.9bn - 4.5y 4.95 16.4 UBS
Glanbia Co-Operative/Glanbia Ireland 19/01/2022 €250m - 5y 1.875 35 BNP Paribas, Goodbody, HSBC, Rabobank,
Kepler Cheuvreux

90 International Financing Review January 22 2022

 INTERNATIONAL FINANCING REVIEW CONTACTS

EDITOR SENIOR REPORTERS: LONDON DEPUTY CREDIT EDITOR TOKYO

Matthew Davies Green/ESG Financing: Julian Lewis Helene Durand Wakako Sato
m.davies@lseg.com julian.lewis@lseg.com helene.durand@lseg.com wakako.sato@lseg.com
DEPUTY EDITOR Fixed-income: Jon Penner NEWS EDITORS REPORTERS: LONDON
Equities/Structured equity: jonathen.penner@lseg.com *ULIANû"AKERû Candy Chan
Owen Wild julian.baker@lseg.com candy.chan@lseg.com
Fixed-income: Tom Revell
owen.wild@lseg.com tom.revell@lseg.com DESK EDITORS Prudence Ho
AMERICAS BUREAU CHIEF Ian Edmondson prudence.ho@lseg.com
NEW YORK
Jack Doran ian.edmondson@lseg.com NEW YORK
People & markets: Philip Scipio
jack.doran@lseg.com philip.scipio@lseg.com David Holland Rhys Adams
ASSOCIATE EDITORS david.holland@lseg.com rhys.adams@lseg.com
Green/ESG Financing: Tim Sifert
Features and analysis: Gareth Gore timothy.sifert@lseg.com CHIEF SUB-EDITOR Andrew Hedlund
gareth.gore@lseg.com Richard Stanbury andrew.hedlund@lseg.com
3TRUCTUREDûlNANCEûRichard Leong
US editor: Stephen Lacey richard.leong@lseg.com EDITORIAL ASSISTANT Sasha Padbidri
stephen.lacey@lseg.com Anna Farish sasha.padbidri@lseg.com
HONG KONG
Fixed-income, Emerging markets: anna.farish@lseg.com PRINT/WEB PRODUCTION, LONDON
People & markets: 4HOMASû"LOTT
Sudip Roy thomas.blott@lseg.com LPC Head of production: Clive George
sudip.roy@lseg.com LOANS EDITOR
Fixed-income: Carol Chan IFR production manager:
People & markets: Steven Slater Chris Mangham Carole Styles
c.chan@lseg.com
steven.slater@lseg.com )&2û!SSOCIATEû%DITOR
SYDNEY chris.mangham@lseg.com !NDREASû-ICHAELû.ITAû7EBBû
Green/ESG Financing Editor: Fixed-income: John Weavers Gavin White
Tessa Walsh BUREAU CHIEF: HONG KONG
john.weavers@lseg.com
Prakash Chakravarti GLOBAL HEAD – ADVERTISING &
tessa.walsh@lseg.com
TOKYO SPONSORSHIP SALES
prakash.chakravarti@lseg.com
Derivatives: Christopher Whittall Fixed-income: Takahiro Okamoto Shahid Hamid
christopher.whittall@refinitiv.com BUREAU CHIEF: NEW YORK
takahiro.okamoto@lseg.com mohammad.hamid@lseg.com
Michelle Sierra
MANAGING EDITOR
REPORTERS: LONDON michelle.sierra@lseg.com ADVERTISING & SPONSORSHIP
Philip Wright Fixed-income: David Cheetham SALES DIRECTOR
philip.wright@lseg.com ASSISTANT EDITOR, US LOANS: NEW YORK
david.cheetham@lseg.com Leonie Welss
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International Financing Review January 22 2022 91

 INTERNATIONAL FINANCING REVIEW INDEX

468 SPAC II 83 Commonwealth Bank of Australia 33 JP Morgan 2, 11, 12, 30 Quanergy Systems 8
ABN AMRO 19 Community Health Systems 34 Kalyan Jewellers India 57 Quest Software 73
Acciona Energia Financiacion Filiales 28 Corporacion Acciona Energias Renovables 28 KBC Group 30 Rabobank 33
Activision Blizzard 13 Council Bank of Europe Development 25 Kensington Capital Acquisition IV 89 Raiffeisen Bank International 2, 19
Adani Green Energy 57 Country Garden 90 Keter 75 REC 65
Adani Wilmar 80 Country Garden Holdings 55 Keyarch Acquisition Corp 9, 80 ReNew Energy Global 8
Addison 74 Covis Pharma 36 KfW 25 Rentenbank 24, 25
Advanz Pharma 37 Credit Agricole 19 KKR 42 Republic of Paraguay 64
Africa Finance Corporation 68 Credit Suisse 15 Knorr-Bremse 68 REV Renewables 89
Agence Francaise de Developpement 25 Credit Suisse Asset Management 40 Kommunalbanken 25 Rhodium Enterprises 86
Agile Group Holdings 55 Credo Technology 79 Korian 68 RMG Acquisition Corp II 8
AHF Products 71 Davidson Kempner 40 Landbay Partners 40 Romania 62
Alantra 15 Delhivery 80 Landesbank Baden-Wuerttemberg 19 Royal Bank of Canada 31
Alstom 68 Dessert Holdings 72 L-Bank 22 Ryan Specialty Group 34
Altimeter Growth 8 Dick’s Sporting Goods 70 Liberty Tire Recycling 74 Sajjan India 77
American Homes 4 Rent 87 DigitalBridge Group 66 Lindblad Expeditions 34 Saudi Aramco 69
AP Memory Technology 82 Doha Bank 68 Lonsdale Finance 66 Servpro 41
Aquila Acquisition Corp 9 DVI 26 LXi REIT 85 Signature Bank 87
Arcellx 89 Dynasty Financial Partners 89 M6 82 Silknet 61
Arxada 75 East West Manufacturing 73 Macquarie International Finance 66 Silver Spike Investment 87
Asian Development Bank 25 EDF 20 Madison Park Euro Funding VIII 40 Simply Good Foods 74
ASK Investment Managers 77 eDreams Odigeo 35 Maravai Life Sciences 74 SMBC 33
AssuredPartners 71 Elstree Funding No.2 39 Marlowe 85 Sociedad de Transmision Austral 64
Athenahealth 71 Embecta 71 McAfee 70 SoftBank Group 29
Athletico Physical Therapy 72 Emerald EMS 72 Mehilainen 75 Spain 25
Atria Convergence Technologies 77 Energo-Pro 60 Microsoft 6, 13 Stanlington No.2 40
AusNet Services 66 Enviva 88 Mitsui Fudosan Logistics Park 81 Stellantis 84
Austria 22 Erste Bank Hungary 63 Mizuho Financial Group 18 Straits Trading 81
Auto1 Group 79 Ethiopia 18 Moneta Money Bank 63 Suisse 7
Autostrade per l’Italia 27 Farm Fresh 81 Morgan Stanley 2, 11, 12 Sunac China Holdings 57
Bakelite 72 Finance Ireland 40 Muenchener Hypothekenbank 19 Suncorp 33
Baltic Classifieds Group 86 Fluidra 76 Mumbai International Airport 57 Sunkwan Properties Group 55
Banco Santander 3, 31 Four Springs Capital Trust 87 Municipality Finance 23 Syniverse 72
Bank of America 2, 11, 12 Fractal Analytics 80 National Australia Bank 33 Target 26
Bank of Montreal 3, 19, 31 France 25 National Bank of Canada 31 TDC Group 74
Bank of Nova Scotia 31 Franklin Resources 70 National Dental Care 78 Technoprobe 83
Barley Hill No.2 40 Freddie Mac 41 Nationwide 37 Telecom Italia 10
Basis Global Technologies 88 Gateway Strategic Acquisition 9 Neighborly 42 Tempo 71
Bausch Health 72 Gecina 26 NIBC Bank 31 Thames Water 27
Belgium 23 Genting Hong Kong 78 Nippon Paint Holdings 81 The Creative Productivity Group 84
Berlin Hyp 33 Germany 25 Nordic Investment Bank 26 The World Bank 18
Bewith 81 GFJ ESG Acquisition I 83 Novae 71 Trendyol 85
Biscuit International 76 Glanbia Co-operative Society 89 Nova KBM 63 Tropicana 73
boAt Lifestyle 80 GlaxoSmithKline 13 Nova Ljubljanska banka 63 Truecaller 85
BPCE 31 Glencore 18 Novotech Health Holdings 77 TSG 75
BPER Banca 32 Goldman Sachs 2, 11, 12 Novo Tellus Alpha Acquisition 9 Two Degrees Group 77
BTC Corporation 81 Grab Holdings 8 NRW.Bank 23 UK Debt Management Office 25
Builders FirstSource 34 Greece 23 NTPC 65, 67 UniCredit 15
Burberry 69 Greentown China Holdings 56 Nufarm 34 Unilever 13
Cades 21 Griffon 73 NWB Bank 22 UPL 67
CAF 64 Group of Butchers 75 Oman 68 US Acute Care Solutions 34
Caisse des Depots et Consignations 22 Guardian Early Learning Group 77 OMV Petrom 84 Utmost Group 32
Canadian Imperial Bank of Commerce 31 Hanwha Life Insurance 60 Oodle Fi nancial Services 40 Vaco 73, 74
Capital Group 28 Hony Capital Acquisition 9 OP Corporate Bank 33 Vedanta Resources 57
Centaurus Metals 80 HSBC 12 Orcon Group 77 Vertex Technology Acquisition Corp 9
Central America Bottling Corporation 64 Hyundai Engineering 81 OTP Bank 63 VistaJet 34
Ceramtec 35, 75 Hyundai Samho Heavy Industries 82 P3 Group 28 Vivid Seats 73
Chad 18 Ibercaja 84 Paratus 37 Voyage Care 36
Cheplapharm 82 ImageSat International 83 Pegasus Asia 9 Voyage Digital (NZ) 77
China 56 Imagina Media Audiovisual 78 Pembroke Property Finance 2 40 Water Affairs Group 56
China Aoyuan Group 57 Indian Railway Finance Corp 65 Pepper Money 40 Webuild 4, 34
China Evergrande Group 18 Infracorp 62 PG ArtemisB 77 Wella 74
China Zheshang Bank Hangzhou branch 56 Ingenio Magdalena 64 Physician Partners 72 Wendy’s 41
Chindata 66 Inspire Brands 73 Places for People Group 28 Westpac 33
CIFI Holdings (Group) 55 Intermediate 28 Places for People Treasury 28 WeTransfer 84
Citic Capital 8 Islamic Republic of Pakistan 60 Planet Fitness 41, 43 Workspace 69
Citigroup 2, 11, 12 Islandsbanki 33 Precisely 72 Zambia 18
Civitanavi Systems 83 Italy 24 Prince International 71 Zenith Finco 36
Clean Power Hydrogen 86 ITV 69 Province of Quebec 23 Zhongliang Holdings Group 55
Clinigen 75 JBS 63 Public Financial Holdings 67 Zug Estates Holding 29
CNP Assurances 32 Jindal Steel and Power 57 Qingdao AInnovation Technology 80

92 International Financing Review January 22 2022

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