DECEMBER 11 2021 ISSUE 2413 www.ifre.

com

Hanging in the balance: SenseTime is

blacklisted on the day its IPO was due to price

Abrdn takes AT1s into new territory: rapturous

reception for asset manager’s £210m deal

Gradually, then suddenly: Evergrande

defaults at last on US$19bn of offshore bonds
PLUS: GERMAN MITTELSTAND FINANCING ROUNDTABLE

EQUITIES BONDS BONDS EQUITIES

Vietnamese EV Basket cases: Denmark to join Nu recovers
maker VinFast riskier hybrids set sovereign green US$50bn market
gears up for for comeback in bond club via value after
US$3bn US listing 2022 auction reinvigorated IPO
02 04 08 09
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Upfront
„ OPINION INTERNATIONAL FINANCING REVIEW

Losing face )NûTHEûENDûABRDNSûPEERSûANDûTHEûBROADERûMARKETûSEEMEDû

SUITABLYûCONVINCEDûASûDEMANDûFORûTHEûaMûDEALûSURPASSEDû

U S-China geopolitical jostling via the capital markets

took a surprising turn last week when it became clear
that China is not the only government willing to wreck
foreign IPOs.
4HEû53û4REASURYûBLACKLISTEDû#HINESEûARTIlCIALûINTELLIGENCEû
company SenseTime Group – thereby putting it off limits for
aBNûWITHûASSETûMANAGERSûANDûFUNDûMANAGERSûTAKINGûTHEû
lion’s share with an 84% allocation.
No doubt the deal was helped by its 5.25% coupon – higher
than almost anything else available in sterling with
investment-grade ratings – but bankers also pointed to some
advantageous features of the deal versus traditional bank
US investors – on the day it was due to price a HK$5.99bn !4SûSUCHûASûAûLACKûOFûCERTAINûRESTRICTIONSûONûCOUPONû
Hong Kong listing. payments and the absence of rules on loss absorption applied
The Treasury said SenseTime “was sanctioned because of the to AT1s from banks.
role its technology plays in enabling human rights abuses &ANSûOFûTHEûNEWûFORMATûOUGHTûNOTûGETûTOOûEXCITEDûHOWEVERû
against the Uyghurs and other Muslim minorities in Xinjiang”. !BRDNSûNEEDSûWEREûLIMITEDûTOûTHEûCIRCAûaMûITûHASûNOWû
The deal was on life support late on Friday night in Hong RAISEDûWITHûITSûCAPITALûSTRUCTUREûNOWûOPTIMISEDûASûITûLOOKSûTOû
+ONGû)TûHADNTûOFlCIALLYûBEENûCALLEDûOFFûBUTûITûWASûHARDûTOû acquire online investment platform (and fellow capital letter
SEEûITûSURVIVINGûATûLEASTûINûITSûPRESENTûFORM refusenik) interactive investor.
The timing of the announcement was ostensibly to mark Other asset managers are said to have expressed tentative
Human Rights Day but there will be no shortage of people INTERESTûINûJOININGûTHEû!4ûMARKETûBUTûEVENû$#-ûBANKERSû
WHOûSUSPECTûITûWASûINTENDEDûTOûRUINû3ENSE4IMESûDEALûJUSTûASû AREûHESITANTûTOûPREDICTûAûLARGEûVOLUMEûOFûSUPPLYû4RUTHûISû
the Chinese authorities had blown up the US listing of Didi DESPITEûABRDNSûTRIUMPHANTûDEALû!4SûFORûASSETûMANAGERSû
Global in July. will remain a niche product.
)NûANYûEVENTûTHEûTIMINGûWASûUNFORTUNATE
)NDEEDûTHEû3ENSE4IMEûBLACKLISTINGûCAMEûDAYSûAFTERûTHEû
China Securities Regulatory Commission said the US and State of uncertainty
China were working towards a solution to avoid Chinese
companies being delisted from US exchanges.
!NYûCHANCEûOFûlNDINGûCOMMONûGROUNDûINûTIMEûTOûAVERTûAû
wave of delistings now looks slim. The market awaits the
H olders of China Evergrande Group’s bonds have been
HOPINGûFORûGOVERNMENTûINTERVENTIONûTOûSAVEûTHEûDAYûBUTû
the type that arrived won’t help their recovery prospects
inevitable response from China. after Asia’s biggest offshore default.
Whatever happens it won’t be good news for those caught /FlCIALSûFROMûSTATE
LINKEDûENTITIESûLASTûWEEKûJOINEDû
INûTHEûMIDDLEû#HINESEûCOMPANIESûTHEIRûBANKSûANDûTHEIRû %VERGRANDESûNEWûRISKûMANAGEMENTûCOMMITTEEûHOURSû
investors. before it defaulted on US$19bn of offshore bonds.
)TûNOWûSEEMSûTHEûCENTRALûGOVERNMENTûASûWELLûASûTHEû
PROVINCIALûAUTHORITIESûINû'UANGDONGûWHEREûTHEûDEVELOPERûISû
Stupid name, great deal BASEDûWILLûPLAYûAûKEYûROLEûINûDECIDINGûHOWûTHEûDEBTû
restructuring plays out.

Y ou can’t accuse UK asset manager abrdn of not putting

itself out there in 2021.
"UTûITûISûSAFEûTOûSAYûTHATûITSûLATESTûINNOVATIONûTHEûISSUANCEûOFû
This apparent government intervention looks focused on
ensuring Evergrande delivers the projects it promised to
Chinese home buyers and limiting the economic – and
THEûlRSTû!DDITIONALû4IERûûFROMûANûASSETûMANAGERûWASûBETTERû political – impact.
received than its disemvowelling rebrand from Standard Life The authorities will be less concerned about the impact on
Aberdeen earlier this year. offshore fund managers and it is not clear they will have
4HEûNEWûNAMEûWASûWIDELYûPANNEDûNOTABLYûBEINGûDUBBEDû much of a voice.
an “act of corporate insanity” in responses to one poll. Finishing projects under construction could still require
Some observers might also have questioned the wisdom of selling off more assets to raise cash. So Evergrande could be a
abrdn approaching the market with a new structure of much smaller company by the time creditors are in a
SUBORDINATEDûDEBTûINûTHEûDEPTHSûOFû$ECEMBERûWITHûLIQUIDITYû position to stake their claims on its remaining assets.
DRYINGûUPûASûYEAR ENDûAPPROACHEDûANDûAFTERû4IERûûPRODUCTSû 7ITHû53BNûOWEDûTOûTRADEûCREDITORSûANDûAûPOSSIBLEû
had been hit hard by recent volatility. KNOCK ONûEFFECTûONû#HINASûBANKSûIFûTHOSEûBILLSûAREûNOTûPAIDû
)NûTHEûRUNûUPûBANKERSûALSOûRAISEDûQUESTIONSûABOUTûWHETHERû bondholders are hardly foremost in the authorities’
asset managers – among the key supporters of the AT1 thoughts. They will have to be content with whatever
market – would buy bonds issued by their rival. remains when the dust settles.

International Financing Review December 11 2021 1

Top news
Abrdn’s innvtv AT1s 04 Riskier hybrids set for comeback 04 Evergrande defaults at last 06

SenseTime blacklisted by US on
the day its IPO was due to price
„ Equities China’s largest AI company was supposed to price its deal on Friday

BY FIONA LAU h/Nû)NTERNATIONALû(UMANû 3PEAKINGûDURINGûTRADINGûHOURSû YETvûSAIDûAûPERSONûWITHû

2IGHTSû$AYû4REASURYûISûUSINGûITSû INû(ONGû+ONGûPEOPLEûWITHû KNOWLEDGEûOFûTHEûMATTERûh!TûTHEû
SENSETIME GROUPSû(ONGû+ONGû)0/û tools to expose and hold KNOWLEDGEûOFûTHEûSITUATIONûSAIDû SAMEûTIMEûITûWASû
OFûUPûTOû(+BNû53M û ACCOUNTABLEûPERPETRATORSûOFû 3ENSE4IMEûWASûAWAITINGûTHEû COMMUNICATINGûWITHûTHEû3TOCKû
WASûINûLIMBOûONû&RIDAYûAFTERûTHEû SERIOUSûHUMANûRIGHTSûABUSEvû OFlCIALûANNOUNCEMENTûFROMûTHEû %XCHANGEûOFû(ONGû+ONGûONûHOWû
#HINESEûARTIlCIALûINTELLIGENCEû DEPUTYûSECRETARYûOFûTHEû4REASURYû 53ûBEFOREûDECIDINGûWHATûITSûNEXTû to handle the IPO once the
COMPANYûWASûPUTûONûAûBLACKLISTû Wally Adeyemo, said in a STEPûWOULDûBE BLACKLISTûISûFORMALLYûANNOUNCEDv
THATûBARSû!MERICANSûFROMû statement. 4HEûDEALSûBOOKSûWEREû
investing in it. The statement said that “On International COVEREDûWITHûSUPPORTûMAINLYû
!û&INANCIALû4IMESûREPORTûONû
4HURSDAYûTHATûTHEû53û4REASURYû
WILLûPLACEûTHEûCOMPANYûONûTHEû
BLACKLISTûLEDûTOûAûDAYûOFûTENSIONû
%ASTû!SIAû4HEûDEALûWASû
ANDûSPECULATIONûDURINGû(ONGû
h3ENSE4IMEûWASûSANCTIONEDû
BECAUSEûOFûTHEûROLEûITSû
technology plays in enabling
HUMANûRIGHTSûABUSESûAGAINSTûTHEû
5YGHURSûANDûOTHERû-USLIMû
Human Rights Day,
Treasury is using its
tools to expose and
hold accountable
COMINGûFROMû#HINESEûINVESTORSû
INûADDITIONûTOûSOMEûPARTICIPATIONû
FROMûINVESTORSûINû%UROPEûANDû
3OUTH
MARKETEDûUNDERûTHEû!û
+ONGûTRADINGûHOURSûONû&RIDAYûASû MINORITIESûINû8INJIANGv perpetrators of serious FORMATûBUTû53ûINVESTORSûDIDûNOTû
ALLûINVOLVEDûWAITEDûFORûANû SenseTime, it added, “has human rights abuse” SHOWûMUCHûINTERESTûASûTHEû
ANNOUNCEMENTûFROMûTHEû53û DEVELOPEDûFACIALûRECOGNITIONû COMPANYûWASûALREADYûONûAû
4REASURY PROGRAMSûTHATûCANûDETERMINEûAû SEPARATEû53ûLISTûTHATûRESTRICTSû
4HATûANNOUNCEMENTûCAMEûJUSTû TARGETSûETHNICITYûWITHûAû COMPANIESûFROMûUSINGû!MERICANû
BEFOREûMIDNIGHTû(ONGû+ONGû PARTICULARûFOCUSûONûIDENTIFYINGû SUPPLIERS
TIMEûWITHûTHEû4REASURYûSAYINGû ETHNICû5YGHURSû7HENûAPPLYINGû "YûMIDNIGHTû(ONGû+ONGûTIMEû
THATû3ENSE4IMEûWASûONEûOFûlVEû FORûPATENTûAPPLICATIONSû ONû&RIDAYûSHORTLYûAFTERûTHEû53û
INDIVIDUALSûANDûûENTITIESû [SenseTime] has highlighted its h4HEûCOMPANYûWASûSTILLû 4REASURYûSTATEMENTûTHEûPICTUREû
SANCTIONEDûFORûhTHEIRûCONNECTIONû ABILITYûTOûIDENTIFYû5YGHURSû MEETINGûINVESTORSûASûOFû&RIDAYû WASûHARDLYûANYûCLEARERûh4HEREû
TOûHUMANûRIGHTSûABUSEûANDû WEARINGûBEARDSûSUNGLASSESûANDû MORNINGû;(ONGû+ONGûTIME=ûANDû WILLûBEûAûMILLIONûCALLSûOVERûTHEû
REPRESSIONv MASKSv THEYûHAVENTûPULLEDûTHEûPLUGû WEEKENDvûSAIDûAûPERSONû

Vietnamese EV maker VinFast gears up

for jumbo US listing
„ Equities Electric carmaker plans US$2bn–$3bn IPO in the second half of 2022

BY S ANURADHA h4HEûNEWûCOMPANYû6IN&ASTû .ORTHû!MERICAûANDû%UROPEûTHISû WHICHûISûUPûûSINCEûTHEûENDûOFû

3INGAPOREûISûAûSTEPûTOûTURNû YEARûANDûNEXTû ûANDûûTHISûYEARûALONE
VINFASTûPLANSûTOûBECOMEûTHEûlRSTû 6IN&ASTûINTOûAûGLOBALûCOMPANYû 6INGROUPûSAIDûITûWOULDûREMAINû &OREIGNûINVESTORSûHAVEûLONGû
Vietnamese company to list in ANDûPREPAREûFORûITSû53û)0/vû AûMAJORûSHAREHOLDERûINû6IN&ASTû demanded changes to the
THEû53ûHOPINGûTHATûSTRONGû 6IETNAMSûLARGESTûCONGLOMERATEû 3INGAPOREûAFTERûTHEû)0/ COUNTRYSûCOMPLICATEDû)0/û
DEMANDûFORûTHEûSTOCKSûOFûELECTRICû said in a statement. 4HEûDECISIONûTOûGOûFORûANû SETTLEMENTûANDûTRADINGûRULESû
VEHICLEûMAKERSûWILLûENABLEûAû 6IN&ASTûWHICHûWASûFOUNDEDûINû OFFSHOREû)0/ûCOMESûAFTERûTWOû INCLUDINGûAûGAPûOFûOVERûTWOû
US$2bn–$3bn IPO in the second ûANDûCOUNTSûVETERANûFORMERû OTHERû6INGROUPûCOMPANIESûnû MONTHSûBETWEENûTHEûTIMEûTHEû
half of 2022. 'ENERALû-OTORSûANDû6OLKSWAGENû Vincom Retail and Vinhomes SHARESûAREûSOLDûANDûLISTEDû"UTû
!SûAûlRSTûSTEPûPARENTû EXECUTIVESûINûITSûTOPû nûFOUNDûMIXEDûRESULTSûWITHûTHEIR THEûNEWû,AWûONû3ECURITIESû
6INGROUPûHASûSETûUPûAû3INGAPORE MANAGEMENTûTEAMûPRODUCESû DOMESTICûLISTINGSû4HEûFORMER IMPLEMENTEDûATûTHEûSTARTûOFûTHISû
BASEDûHOLDINGûCOMPANYûTHATûWILLû CARSûE SCOOTERSûANDûBUSESû)Tû RAISEDû$TRNûTHENû53M ûIN YEARûIGNOREDûTHESEûPLEASûMAKINGû
OWNû6IN&ASTSûOPERATIONSûINû OBTAINEDûAûPERMITûTOûTESTû ûANDûTHEûLATTERûAûRECORD OFFSHOREûLISTINGSûMOREûATTRACTIVEû
6IETNAMû4HISûISûNECESSARYû AUTONOMOUSûVEHICLESûONûPUBLICû $BNûINûû"OTHûSHARESûARE TOûLARGEûISSUERS
BECAUSEû6IETNAMESE STREETSûINû#ALIFORNIAûEARLIERûTHISû TRADINGûBELOWûTHEIRûISSUEûPRICE "ANKERSûALSOûWANTûLOCK UPSûONû
INCORPORATEDûCOMPANIESûCANû YEARûANDûISûDUEûTOûLAUNCHûTHREEû ANDûHAVEûUNDERPERFORMEDûTHE SMALLûSHAREHOLDERSûSUCHûASû
only list in Vietnam. NEWûELECTRICû356SûINû6IETNAMû BENCHMARKû6IETNAMû)NDEX COMPANYûEMPLOYEESûWHOûHAVEû

2 International Financing Review December 11 2021

 For daily news stories
@ visit www.ifre.com

EV fundraising frenzy 07 Denmark plans green auction  Nu moves to US$50bn 

INVOLVEDûWITHûTHEûDEALûh7EVEû ABOUTûISûTHEIRûROLEûONûANYû ALTHOUGHûITûISûCONSIDERINGûAû ANNOUNCEDûEARLIERûTHISûMONTHû

GOTûAûLOADûOFûSTUFFûWEûNEEDûTOû ATTEMPTûTOûPUSHûONûWITHûnûORû SMALLERûTRANSACTION #HINESEûCOMPANIESûTHATûLISTûONû
THINKûABOUTv RESHAPEûnûTHEû)0/ %VENûINûTHATûCASEûADDITIONALû 53ûSTOCKûEXCHANGESûMUSTû
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INVESTORSûHAVEûCOMMITTEDû UNABLEûTOûCONTINUEûWITHûTHEû ISûPURSUEDûTHENûTHATûCOULDûMEANû EVIDENCEûOFûTHEIRûAUDITINGû
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mOAT REGULATORYûACTION PRICINGûFORûSEVERALûWEEKSû “If any of the sponsors
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“There will be a million THEûDEALûTHEûDELAYûCOULDûTAKEû INCREASING TENSION
delay could take
calls over the weekend.
HAILINGû
We’ve got a load of
stuff we need to think
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CMB International, China
Merchants Securities and DBS.
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BANKSû
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International Financing Review December 11 2021 3

Top news
Abrdn takes AT1s into new territory
„ Bonds Debut deal exceeds expectations as asset manager capitalises on new format’s features

BY TOM REVELL 7HILEûTHEûACQUISITIONûWILLûBEû HAVEûSUFFEREDûWITHûTHEûYIELDûOFû KNOWNûINûTHEûDEBTûMARKETûANDû

FUNDEDûBYûAVAILABLEûCASHûFROMû THEû"ANKûOFû!MERICAû#O#OûINDEXû THEûBUSINESSûMODELSûYOUREûLESSû
4HEûlRSTûISSUANCEûOFû!DDITIONALû ABRDNSûCAPITALûRESERVESûTHEû!4û HITTINGûAûYEAR TO DATEûHIGHûOFû USEDûTOûSEEINGv
4IERûûCAPITALûBYûANûASSETû is aimed at optimising the asset ûONû.OVEMBERûûBEFOREû !BRDNûANDûITSûLEADSûWEREû
MANAGERûWASûRAPTUROUSLYû MANAGERSûCAPITALûUNDERûNEWû TRADINGûBACKûIN HOWEVERûABLEûTOûSIGNIlCANTLYû
RECEIVEDûBYûINVESTORSûASûABRDN )NVESTMENTû&IRMSû0RUDENTIALû !ûMODESTûREBOUNDûINûBROADERû REDUCEûTHEûSIZEûOFûTHATûPICK UPû
OVERCAMEûRECENTûVOLATILITYûINû 2EGIMEûRULESûTHATûWILLûAPPLYû CONDITIONSûTEEDûUPûAûSWIFTûENTRYû THANKSûTOûSTRONGûDEMANDû
4IERûûPRODUCTSûANDûCAPITALISEDû FROMû*ANUARYûû TOûTHEûMARKETûONû-ONDAYû 'UIDANCEûWASûSETûATûTHEûû
ONûSOMEûOFûTHEûNEWûFORMATSû FOLLOWINGûTHEûCONCLUSIONûOFûTWOû AREAûANDûTHEûSIZEûATûaMû
ADVANTAGEOUSûFEATURESûTOû “I was thinking a 6% DAYSûOFûMARKETINGûEFFORTSû BEFOREûTHEûCOUPONûWASûlXEDûATû
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REVENUEûTOûaM INûWHICHûSOMEû4IERûûPRODUCTSû SOMETHINGûTHATûISûLESSûWELL the leads.

Riskier hybrids set for comeback

„ Bonds Surge of corporate hybrid bond issuance could open the door to the return of debt with higher equity content

BY ED CLARK CANûBEûVULNERABLEûDURINGûPERIODSû BRINGûNEWûISSUERSûINTOûTHEû BECAUSEûTHEûDEFERRALûISûTRIGGEREDû

of volatility. MARKETûSOMETHINGûLIKEû ITûISûNON
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DEBTûSTACKûEVENûIFûSUCHûBONDSû INTOûTHEûHYBRIDûMARKETû4OûREALLYû METRICû)FûAûCOUPONûISûMISSEDû Source: IFR

4 International Financing Review December 11 2021

 For daily news stories
@ visit www.ifre.com

h)TSûVERYûWELLûRATEDûWHICHûISû GETûTHATûSAMEûBPûLEVERAGEû BETTERûQUALITYûTHANûTHEûAVERAGEû WANTINGûTOûDOûSIMILARûDEALSû

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DEVELOPMENTûINûTHEûMARKETû INTOûAûHIGHERûCOSTûTOûTHEûISSUER “It is hard to bring new UTILITIESûANDûTELECOMSû
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market. To really bring
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WELCOMEDûBYûINVESTORSvû õBNû"ASKETû#ûHYBRIDvûASKEDû
new issuers into the INûREGULARûUSEûMOREûTHANûAû
SAIDû!NDREAû3EMINARAû#)/ûû +APILû$AMANIûHEADûOFûCAPITALû market something like DECADEûAGOûTHEREûWEREûOTHERû
#%/ûOFûTHEûASSETûMANAGERû PRODUCTSûATû".0û0ARIBASûWHOûISû establishing a higher SECTORSûONûSHOWûWHICHûALSOû
2ED(EDGE KEENûONûTHESEûINSTRUMENTSû equity instrument INCLUDEDûMOREûVOLATILEû
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not be legally binding and the RECOGNITIONûFROMûTHEûAGENCY CONTENTûMAKESûAûHUGEûAMOUNTûOFû BONDSv „

International Financing Review December 11 2021 5

Top news
Evergrande defaults at last
„ Emerging Markets Authorities join the property company’s restructuring to safeguard stability, but uncertainty remains

BY MORGAN DAVIS, CAROL CHAN PRINCIPALûANDûRELATEDûINTERESTû 3EPTEMBERû%VERGRANDEû PROPOSALûTOûTHEûOFFSHOREûGUYSû

FOLLOWINGûAûDEFAULT BONDHOLDERSûINCLUDEDû%ASTSPRINGû ;BONDHOLDERS=ûTHATûINCLUDESûALLûOFû
CHINA EVERGRANDE GROUP is in 4HEûNEXTûSTEPSûFORû%VERGRANDEû )NVESTMENTSû"LACK2OCKû THEûOFFSHOREûBONDSûINûONEûGOvû
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Issuer Pricing date Size (US$m) Tenor Yield (%) Ratings at issue THATûIFûTHEûLARGESTûLIABILITIESûOFû
Kaisa Aug-31 300 364-day 11.00 NR THEûBORROWERûISûTOûHOUSEBUYERSû
Kaisa Jul-15 200 364-day 8.65 NR THENûTHEûCONTRACTUALûOBLIGATIONSû
Sunshine 100 Jun-29 219.6 364-day 13.00 NR OFûTHEûCOMPANYûWOULDûNEEDûTOû
Kaisa Jun-08 280 2023 tap 8.90 B2/–/B BEûTAKENûINTOûCONSIDERATIONv
Kaisa May-24 300 5NC3 11.65 B2/–/B !û'REATERû#HINAû$#-ûHEADû
Kaisa Apr-27 500 4.5NC2.5 11.75 B2/–/B FROMûAû%UROPEANûBANKûSAIDûITû
Kaisa Apr-20 200 2023 tap 9.15 B2/–/B WASûCLEARûTHATûCREDITORSûCLOSERûTOû
Fantasia Feb-25 250 3yr 11.35 –/–/B+ THEûASSETSûWOULDûGETûPAIDûlRSTû
Fantasia Feb-04 150 2023 tap 10.10 B3/–/– h!LLûOTHERûBONDSûHAVEûSIMILARû
Xinyuan Feb-03 100 2024 tap 14.00 –/–/B– TERMSûYOUûCANTûSAYûTHATûIFûTHEû
Sunshine 100 Jan-29 120 2.75yr 12.00 NR GOVERNMENTSûPRIORITYûISûTOû
Modern Land (China) Jan-25 71 2023 tap 9.95 B3/–/B ENSUREûPROJECTûCOMPLETIONûANDû
Modern Land (China) Jan-25 77 2024 tap 11.25 B3/–/B DELIVERYûITûISûPUTTINGû
Kaisa Jan-19 300 2023 tap 9.85 B2/–/B BONDHOLDERSûATûAûDISADVANTAGEv
Xinyuan Jan-18 170 3NP2 14.00 –/–/B– !ûPERSONûCLOSEûTOû%VERGRANDEû
Sinic Jan-18 250 364-day 8.50 –/–/B+ said the company intended to
Modern Land (China) Jan-05 250 2.25yr 10.40 B3/–/B FOLLOWûINTERNATIONALûMARKETû
Source: IFR STANDARDSûANDûPRINCIPLESûINû

6 International Financing Review December 11 2021

 For daily news stories
@ visit www.ifre.com

DEALINGûWITHûITSûRESTRUCTURINGû
ANDûAIMEDûTOûhFORMULATEûANDû
GOVERNMENTûDEPARTMENTSû
implement a viable
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OFFSHOREûDEBTûFORûTHEûBENElTûOFû
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SAIDûAû$#-ûHEADûFROMûAû#HINESEû
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ENSUREûPROJECTûCOMPLETIONûANDû
DELIVERYûTOûHOMEBUYERSû4HEû
EV fundraising frenzy
„ Equities Issuers plan to raise billions of dollars
BY FIONA LAU, KAREN TIAN %6ûBATTERYûMAKERûLG ENERGY
SOLUTIONûSTARTEDûPRE
!SIANûELECTRICûVEHICLEûCOMPANIESû LASTûWEEKûFORûANûUPûTOû7TRNû
SUBORDINATEDûTOûTHOSEûONSHOREû ULTIMATEûOUTCOMEûOFûTHEû FROMû#HINAûTOû6IETNAMûAREû 53BN û+28û)0/û3OUTHû
WITHûOPERATIONALûANDûlNANCIALû RESTRUCTURINGûHOWEVERûISûHARDû PLANNINGûEQUITYûRAISESûOFûATûLEASTû +OREASûLARGESTûEVERû4HEû
EXPOSUREûWHENû%VERGRANDEû TOûSAYv 53BNûNEXTûYEARûRIDINGûONû COMPANYûISûAûMAJORûSUPPLIERûTOû
UNDERGOESûRESTRUCTURINGû)TSû53û 4HEû$#-ûHEADûSAIDûTHEû INCREASINGûDEMANDûFORû CARMAKERSûINCLUDINGû4ESLAûANDû
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REmECTINGûTHEûMARKETSûWEAKû THEûCOMPANYSûSIZEû4HEû -AJORû#HINESEû%6û planning a US$2bn–$3bn US IPO
EXPECTATIONSûFORûRECOVERY GOVERNMENTûWASûLIKELYûTOûALLOWû MANUFACTURERSûBATTERYûMAKERSû in the second half of 2022.
#HINAûHASûYETûTOûVOICEûAûCLEARû SMALLERûPLAYERSûTOûGOûBANKRUPTû ANDûBATTERYûMATERIALSûPROVIDERSû h4HEûFUNDINGûNEEDSûFORûTHEû%6û
SHIFTûINûPOLICYûWITHûREGARDûTOûTHEû UNLESSûITûINCREASEDûINSTABILITYû HAVEûALREADYûRAISEDû53BNû SECTORûAREûHUGEûASûCOMPANIESûNEEDû
EMBATTLEDûPROPERTYûSECTORûBUTû he said. THISûYEARûACCORDINGûTOûDATAû TOûRAMPûUPûPRODUCTIONûANDû
THEREûHAVEûBEENûSIGNSûTHATûITSû COMPILEDûBYû)&2 STRENGTHENûRESEARCHûANDû
tone is softening. KAISA DEFAULTS 4HEûDEALSûINCLUDEDû"9$Sû development to fend off
4HEû0EOPLESû"ANKûOFû#HINAû %VERGRANDESûDEFAULTûWASû TWOûSHAREûPLACEMENTSûFORûAû COMPETITIONvûSAIDûANû%#-ûBANKER
ANDû#HINAû"ANKINGûANDû FOLLOWEDûBYûTHATûOFûKAISA GROUP COMBINEDû(+BNû h7EûWILLûSEEûMOREû
)NSURANCEû2EGULATORYû HOLDINGSûWHICHûFAILEDûTOûPAYûITSû 53BN ûANDûTHEû(ONGû+ONGû TRANSACTIONSûANDûINVESTORSû
#OMMISSIONûHAVEûTRIEDûTOû 53MûûSENIORûNOTESûDUEû SECONDARYûLISTINGSûOFû53
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REASSUREûTHEûMARKETûSAYINGûTHATû ONû$ECEMBERûûAFTERûBONDHOLDERSû 80ENGûANDû,Iû!UTOûWHICHûRAISEDû GIVENûITSûAûSECTORûWITHû
ANYûRISKSûFROMû%VERGRANDESû REJECTEDûAûPROPOSALûTOûEXTENDûTHEû (+BNûANDû(+BNû GOVERNMENTûPOLICYûSUPPORTûANDû
PROBLEMûTOûTHEûBROADERûPROPERTYû MATURITYûACCORDINGûTOûAûSOURCEû RESPECTIVELY STRONGûGROWTHû)TûALSOûSUITSûTHEû
SECTORûCANûBEûCONTAINED CLOSEûTOûTHEûSITUATIONû4HEREûISûNOû #HI.EXT
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$ECEMBERûûCUTûTHEûBANKû REPAYMENTûANDûTHEûMISSEDû MAGNETSûUSEDûINû%6ûBATTERIESû 'LOBALûELECTRICûVEHICLEûSALESû
RESERVEûRATIOûREQUIREMENTûBYû PAYMENTûWILLûTRIGGERûAûCROSS
STARTEDûPRE
MARKETINGûLASTûWEEKû REACHEDûûMILLIONûUNITSûINûû
BPûAûMOVEûWIDELYûVIEWEDûASûAû DEFAULTûONûOTHERûNOTESû FORûAû53MnMû(ONGû ANDûAREûEXPECTEDûTOûRISEûTOûû
signal of policy easing. The +AISAûHASûABOUTû53BNûOFû +ONGûLISTING MILLIONûUNITSûPERûYEARûBYû
MESSAGEûSENTûOUTûFROMûTHEû OFFSHOREûDEBT 4HEûFUNDRAISINGûFRENZYûISû 4HEûBIGûDEALSûFROMû#HINAûNEXTû
0OLITBUROûTHEûRULINGû ,IKEû%VERGRANDEû+AISAûISûYETû EXPECTEDûTOûCONTINUEûINûû YEARûINCLUDEûLITHIUM
IONûBATTERYû
#OMMUNISTû0ARTYSûTOPûDECISION
TOûMAKEûANûOFlCIALû WITHûATûLEASTûûCOMPANIESûINû giant CONTEMPORARY AMPEREX
MAKINGûBODYûALSOûFUELLEDû ANNOUNCEMENTûABOUTûTHEû !SIAûPLANNINGû)0/SûORûFOLLOW
TECHNOLOGYSû2MBBNû
SPECULATIONûTHATûTHEû missed payment. The company ONSû-OSTûOFûTHEûDEALSûWILLûBEû 53BN ûFOLLOW
ONûANDû(ONGû
GOVERNMENTûMIGHTûADOPTûAû DIDûNOTûIMMEDIATELYûRESPONDûTOû FROMû#HINAûBUTûTHEREûAREûALSOû +ONGû)0/SûOFûAROUNDû53BNû
MOREûDOVISHûAPPROACHûTOWARDSû AûREQUESTûFORûCOMMENT SIZEABLEûOFFERINGSûFROMûOTHERû EACHûFROMû%6ûMAKERSûLEAPMOTOR,
PROPERTYûCOMPANIES &ITCHûONû$ECEMBERûûCUTû Asian companies. WM MOTOR and HOZON AUTO. „
h7EVEûSEENûMOREûSTEP
INûTHISû +AISASûISSUERûRATINGûTOû2$ûFROMû
TIMEûWITHûDIFFERENTû #û4HEûRATINGSûAGENCYûAFlRMEDû MAJOR EV-RELATED EQUITY RAISINGS FROM ASIA IN 2022
THEûSENIORûUNSECUREDûRATINGSûOFû Company Deal type Fundraising

EVERGRANDE SHARES HIT A NEW LOW

+AISASûBONDSûATû#ûWITHûAû LG Energy Solution KRX IPO US$10.8bn
CLOSING PRICE RECOVERYûRATINGûOFû22 VinFast US IPO US$2–3bn
HK$ 'IVENûTHEûSIZEûOFû%VERGRANDEû Leapmotor HK IPO US$1bn
30
ANDû+AISAûINûTERMSûOFûTHEIRû WM Motor HK IPO US$1bn
PROPERTYûPROJECTSûANDûDEBTûBOTHû Hozon Auto HK IPO US$1bn
25 visible and invisible Tianqi Lithium HK listing US$1bn
INTERVENTIONûFROMûTHEû CATL Follow-on Rmb45bn
AUTHORITIESûISûEXPECTEDûDURINGû Yunnan Energy New Material Follow-on Rmb12.8bn
20
ANYûRESTRUCTURINGûPROCESSûTOû Farasis Energy Gan Zhou Follow-on Rmb5.2bn
LIMITûCONTAGIONûRISKûSAIDû Jiangsu Azure Follow-on Rmb2.5bn
15 MARKETûPARTICIPANTSû Mianyang Fulin Precision Follow-on Rmb1.5bn
h4HEûMARKETûHASûALREADYû Hunan Zhongke Electric Follow-on Rmb2.2bn
10 ANTICIPATEDûTHEûDEFAULTûOFû Shenzhen Dynanonic  Follow-on Rmb3.2bn
%VERGRANDEûANDû+AISAûREmECTEDû Shenzhen Senior Technology Material Follow-on Rmb6bn
INûBOTHûTHEûSTOCKûANDûBONDû Cangzhou Mingzhu Plastic Follow-on Rmb1.37bn
5
PRICESvûSAIDûTHEû%UROPEANû Nuode Investment Follow-on Rmb2.29bn
BANKSû'REATERû#HINAû$#-û Guangdong Jia Yuan Technology Follow-on Rmb4.9bn
0 HEADûh)ûDONTûTHINKûTHEûDEFAULTSû Do-Fluoride New Materials  Follow-on Rmb5.5bn
2020 2021 INûTHEMSELVESûTHISûWEEKûHAVEû Anhui Tongguan Copper Foil Group A-share IPO Rmb1.2bn
Source: Refinitiv MUCHûIMPACTûONûTHEûMARKETv „ Source: IFR

International Financing Review December 11 2021 7

Top news
Denmark drops green bond
certificates for auction entry
„ Bonds Long-awaited green bond debut will blend Dutch and German approaches into a new formula

BY JULIAN LEWIS #ICEROû3HADESûOFû'REENûASSIGNEDû %XPENDITURESûONûTHEûCOUNTRYSû 7HILEûITûISûhREASONABLEûTOû

ITSûSTRONGESTûh$ARKû'REENvûRATINGû WORLD LEADINGûSUSTAINABLEû ASSUMEvûTHATûTHEûDEALûWILLû
DENMARKûONEûOFûTHEûLASTû%UROPEANû nûPERMITSûTHEûCURRENTûANDû AGRICULTUREûSECTORûAREûEXCLUDEDû ACHIEVEûAûGREENIUMûTHEû
SOVEREIGNSûSTILLûOUTSIDEûTHEûGREENû PREVIOUSûYEARSûEXPENDITURESûTOûBEû FROMûTHEûFRAMEWORKû2ENEWABLEû SOVEREIGNSûPRIMARYûREASONûFORû
BONDûMARKETûHASûDUMPEDûAû FUNDEDûTHROUGHûGREENûBONDS ENERGYûESPECIALLYûWIND ûELECTRICû ISSUINGûISûTOûBEûhPARTûOFû
COMPLEXûPLANûTOûOFFERûSTRIPPABLEû ,IKEûTHEû%UROPEANû5NIONSû VEHICLESûANDûRAILûTRANSPORTûAREûTHEû ESTABLISHINGûAûGREENûCAPITALû
GREENûCERTIlCATESûINûANûINAUGURALû .EXT'ENERATION%5ûPROGRAMMEû MAINûELIGIBLEûAREASûALTHOUGHû MARKETvû7AGNERû4OFTDAHLûADDED
GREENûBONDûDEALûANDûWILLûINSTEADû THEû$ANISHûFRAMEWORKûSEEKSûTOû $ENMARKSûSUBSIDIESûFORûELECTRICû $ENMARKûALSOûHOPESûTOûWIDENû
ADOPTû'ERMANYSûTWINûBONDû be aligned as closely as possible VEHICLESûCOULDûSTILLûBEûCHALLENGEDû ITSûINVESTORûBASEûBYûATTRACTINGûNEWû
APPROACHû(OWEVERûTHEûCOUNTRYû TOûTHEû%5SûTAXONOMYûOFû OVERûMANUFACTURERSûSUPPLYûCHAINSû BUYERSû5NLIKEûTHEûONLYûOTHERû
WILLûENTERûTHEûMARKETûNEXTûMONTHû SUSTAINABLEûACTIVITIESûANDû'REENû UNDERûTHEûTAXONOMYSûh$Oû.Oû SOVEREIGNûTOûENTERûTHEûMARKETûVIAû
THROUGHûANûAUCTIONûINûCONTRASTûTOû "ONDû3TANDARDûnûTHOUGHûNEITHERû 3IGNIlCANTû(ARMvûREQUIREMENT ANûAUCTIONûTHEû.ETHERLANDSûITû
ITSûNEIGHBOURSûDEBUTûDEALûWHICHû OFûTHESEûISûlNALISED WILLûGIVEûNOûPREFERENTIALû
came via syndication. h)TûWASûIMPORTANTûTOûSECUREû DUTCH DIVERGENCE ALLOCATIONSûTOû%3'ûINVESTORS
$ENMARKûWILLûADDûAûGREENû THATûTHEûFRAMEWORKûWEûCAMEûOUTû !UCTIONEDûGREENûBONDSûMAYûTAKEû BNP Paribas, Danske Bank and
TWINûTOûITSûû.OVEMBERûû WITHûISûALSOûRELEVANTûINûTHEû LONGERûTOûESTABLISHûGREENIUMSû NordeaûACTEDûASûADVISERSûWITHû
BENCHMARKûBONDûONû*ANUARYûû FUTUREvûSAIDû-ARTINû7AGNERû BANKERSûARGUEû$EMANDûCANûALSOû .ORDEAûASûSTRUCTURINGûADVISER
4HISûWILLûFOLLOWûTHEûSOVEREIGNû 4OFTDAHLûHEADûOFûMONETARYû be inconsistent. Recently
SPECIFYINGûTHEûSIZEûANDûSCOPEûOFû POLICYûOPERATIONSûANDû 'ERMANYûHADûTOûRETAINûNEARLYû CANNIBALISATION CONCERN
ITSûGREENûBONDûPROGRAMMEûINûITSû GOVERNMENTûDEBTûATû$ANMARKSû HALFûOFûAûGREENû"UNDûAUCTION !SûAûSMALLERûSOVEREIGNûWITHû
USUALûPRE #HRISTMASûFUNDINGû .ATIONALBANKû(EûADDEDûTHATûTHEû "UTû$ENMARKûISûUNCONCERNEDû LIMITEDûBORROWINGûNEEDSû
ANNOUNCEMENTûTHISûMONTH CENTRALûBANKûHADûMADEûAûhGREATû ABOUTûTHEûDISTRIBUTIONûMETHODSû $ENMARKûINITIALLYûHATCHEDûAûNOVELû
)TSûDISCLOSEDû$+RBNû EFFORTvûTOûENSUREûALIGNMENT IMPACTûONûINVESTORûAPPETITEûORû APPROACHûTOûAVOIDûGREENûBONDSû
53BN ûOFûELIGIBLEûûGREENû *ACOBû-ICHAELSENûHEADûOFû PRICINGûh7EûCANûMAKEûTHEû CANNIBALISINGûITSûOFFERINGSûANDû
EXPENDITURESûINDICATEûPOTENTIALû SUSTAINABLEûlNANCEûADVISORYûATû ISSUANCEûACCORDINGûTOûTHEû HARMINGûTHEIRûLIQUIDITYû3INCEû
ANNUALûVOLUMEûALTHOUGHûû .ORDEAûSAIDûh4HATûREALLYûISûAû DEMANDûONûTHEûDAYvûSAIDû7AGNERû EARLYûLASTûYEARûITûHADûADVERTISEDûAû
MAYûBEûAûPARTICULARLYûSTRONGûYEARû STEP UPûFROMûMOSTûOFûTHEû 4OFTDAHLûh7EûAREûOPTIMISTICû SCHEMEûTOûOFFERûSEPARATELYû
$ENMARKSûFRAMEWORKûnûWHICHû SOVEREIGNSûTHATûWEVEûSEENv THEREûWILLûBEûLARGEûDEMANDv TRADEABLEûGREENûCERTIlCATESû

European SPACs move away from US structure

„ Equities Switzerland opens for SPACs as Mustier and De Giorgi return for more

BY ROBERT VENES FUNDûINITIATEDûINû!PRILûûTHATû "OOKSûOPENEDûONû4HURSDAYû have something completely

HOLDSûAûTIGHTûPORTFOLIOûOFûSTAKESû ANDûCLOSEûONû-ONDAYûWITHû UNIQUEûINûTERMSûOFûMANAGEMENTû
!Sû%UROPEANû%#-ûHEADSûINTOû INûAûHANDFULûOFûLISTEDû3WISSû TRADINGûONû7EDNESDAYûCredit ANDûSPONSORûORûPROPOSITIONûORû
HIBERNATIONûTHEû)0/ûCALENDARû companies. Suisse and UBSûAREûBOOKRUNNERSû YOUûHAVEûTOûHAVEûFRIENDSûANDû
HASûBECOMEûPOPULATEDûWITHû 4HEû30!#ûCOMESûWITHûTHEû WITHûEFGûCO MANAGERûANDûIHAG FAMILYûLINEDûUPvûSAIDûAûBANKERû
30!#S TRADITIONALûSTRUCTUREûOFûUNITSû selling agent. ONûTHEûLATESTû30!#ûFROMû0EGASUSû
/Nû-ONDAY VT5 ACQUISITION COMPRISINGûONEûSHAREûANDûONE THEûCOLLECTIVEûOFû4IKEHAUû#APITALû
COMPANYûBECAMEûTHEûlRSTûEVERû THIRDûOFûAûWARRANTûANDûû PEGASUS FLIES AGAIN FORMERûBANKERSû*EANû0IERREû
3WISSû30!#û)0/ûTOûLAUNCHû)Tû MONTHSûTOûlNDûAûTARGETûBUSINESSû ,EDûBYûTHEûMUCHûBUSIERûANDû -USTIERûANDû$IEGOû$Eû'IORGIûANDû
CAMEûATûTHEûEARLIESTûOPPORTUNITYû THOUGHûTHROUGHûTHEûSECONDûHALFû MOREûMATUREû53ûMARKETûRECENTû ,6-(ûCHIEFûEXECUTIVEû"ERNARDû
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THEûSAMEûDAYûTOûALLOWûFORû30!#Sû HADûTERMSûMOREûGENEROUSûTOû)0/û OVERFUNDINGûTOûGIVEûINVESTORSûAû PEGASUS ENTREPRENEURIAL
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SAIDûWASûREADYûTOûGOûASûFARûBACKû the 144A deal open to US ACQUISITIONûHALFûAûWARRANTûPERû 30!#ûFROMûTHEûCOLLECTIVEûANDû
ASû-ARCHûWILLûRAISEû3&RMû INVESTORS UNITûANDûSOMEûHAVEûSEENû RAISEDûõMûLASTûWEEKûHAVINGû
53M ûANDûTARGETûAû 30!#SûAREûLARGELYûPRE PLACEDû SPONSORSûGIVINGûAWAYûSOMEûOFû RAISEDûõMûFROMû0EGASUSû
technology company, most ANDûFORû64ûTHEûKEYûBACKERSûAREû THEIRûHEAVILYûDISCOUNTEDûSTOCKû %UROPEûINû!PRILû4HEûTEAMûISûALSOû
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nû%NGAGEMENTû&UNDûAûLISTEDû COMMITTEDûTOûINVESTû3&RM SHORTERûDURATIONûYOUûHAVEûTOû 53MnM 

8 International Financing Review December 11 2021

 @ For daily news stories
visit www.ifre.com

alongside conventional
GOVERNMENTûBONDSûWITHûTHEûTWOû
DRIVINGûTHEûlRSTû7ORLDû"ANKûISSUEû
INûTHEûFORMATûTHEûREGIONSû Nu recovers US$50bn
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hGREENûONEûDAYûANDûNOTûTHEû GIVENûTHEûLEVELûOFû%3'ûRANKINGSû BY ANTHONY HUGHES MARKETûCAPûOFûEACHûOFû"RAZILSû
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SEPARATELY lELDvûSAIDû!NUû3AMMALLAHTIû DIGITALûBANKûNUûOVERCAMEû and Vale among the
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LISTEDû30!#û 4HOSEûTHATûBUYûANDûHOLDûATû NOWûTRADINGûONûTHEû3AOû0AULOû ALSOûGETTINGûTHISûDISRUPTORû
COMPRISEDûUNITSûOFûONEûSHAREû LEASTûMûUNITSûWILLûRECEIVEûANû 3TOCKû%XCHANGEûALSOûKNOWNûASû PREMIUMv
ANDûONE
THIRDûWARRANTûANDûAû ADDITIONALûûFROMûTHEûSPONSORSû THEû" û%ACHû"$2ûEQUALSûONE
4HEûTERMSûVALUEDû.UûATûAû
SLIGHTLYûSHORTERûTIMEFRAMEûOFûû OWNûHOLDINGSûATûBUSINESSû SIXTHûOFûAûSHAREû ûFORECASTûSALESûMULTIPLEûOFû
MONTHSûTOûlNDûAûTARGETû COMBINATIONû!TûLAUNCHûTWOû 4HOUGHûTHEûSYNDICATEûFOUNDû ABOUTûûVERSUSûABOUTûûFORûTHEû
EXPECTEDûTOûBEûAû%UROPEAN
INVESTORSûHADûSIGNEDûUPûTOû ENOUGHûINVESTORûDEMANDûTOû comp set.
HEADQUARTEREDûBUSINESSûWITHûAû INVESTûANûAGGREGATEûõM PRICEûTHEûDEALûATûTHEûTOPûOFûTHEû h)ûDONTûTHINKûPEOPLEûWEREû
TRACKûRECORDûOFûHIGHûGROWTHû !ûSECONDûBANKERûINVOLVEDûSAIDû 53nûRANGEû.UûPREVIOUSLYû RUSHINGûTOûOVERPAYûFORûITûBUTû
4HEREûISûANûOPTIONûOFûAûSIX
THEûûINCENTIVEûBOLSTEREDû CUTûTHEûRANGEûFROMû53nû THEREûWASûAûLOTûOFûINTERESTûFROMû
MONTHûEXTENSIONûSUBJECTûTOû INTERESTûBUTûTHEREûWASû TOûACCOUNTûFORûAûROUGHLYûû THEûBIGûGUYSûBECAUSEûITûISûANû
SHAREHOLDERûAPPROVAL SIGNIlCANTûFRIENDS
AND
FAMILYû AVERAGEûDECLINEûINûTHEûSHAREû ASSETûYOUûHAVEûTOûOWNvûTHEû
.OTABLYû0EGASUSû%UROPEûHASû INTEREST PRICESûOFû,AT!MûANDû53ûlNTECHû BANKERûSAID
YETûTOûMAKEûANûACQUISITIONû h4HEûLIKESûOFû4IKEHAUûANDûOTHERSû PEERSûDURINGû.OVEMBER !TûLAUNCHûHALFûOFûTHEû)0/ûWASû
HOWEVERûTHEûSECONDû30!#û INVOLVEDûINû0EGASUSûAREûWELLûTRUSTEDû !ûTIMELYûREBOUNDûINûGROWTHû ALREADYûSPOKENûFORûBYûAûGROUPûOFû
RAISEDûMOREûTHANûITSûTARGETûOFû ANDûSEASONEDûANDûHAVEûAûTRACKû STOCKSûINûTHEûTHREEûSESSIONSû HIGH
POWEREDûCORNERSTONEû
õM RECORDvûHEûSAIDûh)FûYOUûDONTûCOMEû AHEADûOFûPRICINGûGAVEûSOMEû INVESTORSûAMONGûTHEMû3EQUOIAû
4HEûSPONSORSûINVESTEDûõMû WITHûTHATûSAMEûDEPTHûOFûEXPERIENCEû ADDITIONALûMOMENTUMûANDû.Uû #APITALû"AILLIEû'IFFORDû
ONû)0/ûTERMSûPLUSûõMûFORû ANDûCREDIBILITYûUNLESSûYOUûAREû SHARESûCLOSEDûTHEIRûlRSTûDAYû 3OFT"ANKû$RAGONEERû
THEIRûûPROMOTEû4HEREûISûALSOû BRINGINGûINûMONEYûYOURSELFûYOUûDOû INSIDEûTHATûINITIALûRANGEûENDINGû )NVESTMENTû'ROUPûANDû4IGERû
ANûUPûTOûõMûFORWARDûPURCHASEû NEEDûTOûHAVEûTHEûOVERFUNDINGûANDû 4HURSDAYûUPûûATû53û 'LOBALû-ANAGEMENTû.OTû
AGREEMENTûWITHû4IKEHAUûANDû OTHERûFEATURESûTHATûAREûMOREû AFTERûTRADINGûASûHIGHûASû NAMEDûAMONGûTHEMûWASû
!RNAULTû INVESTOR
FRIENDLYv US$12.24. "ERKSHIREû(ATHAWAYûTHOUGHû
4HOUGHûAûFAIRLYûTRADITIONALLYû 0EGASUSûSHARESûDEBUTEDûONû THEûLEGENDARYûINVESTMENTûlRMû
STRUCTUREDû30!#ûTHEûSPONSORSû &RIDAYûANDûCLOSEDûUPûûATûõ DISRUPTOR REPORTEDLYûDIDûPARTICIPATEûINûTHEû
OFFEREDûTOûSHAREûSOMEûOFûTHEIRû BNP Paribas, Citigroup and 4HURSDAYSûCLOSINGûPRICEûVALUEDû )0/ûAFTERûINVESTINGû53MûINû
INVESTMENTûFORûINVESTORSûPUTTINGû Goldman SachsûWEREûJOINTû THEûEIGHT
YEAR
OLDûCOMPANYû .UûINûAû*UNEûPRE
)0/ûlNANCINGû
INûATûLEASTûõM BOOKRUNNERS „ at US$47.6bn, topping the ROUNDû „

International Financing Review December 11 2021 9

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An LSEG Business
 People

13
&
Oil major Shell
looks set to be
Markets
15 A Madrid
court orders 18 Wall Street is
unsettled by
among the European Santander to pay a spate of Covid-19
companies targeted Andrea Orcel €68m cases at Jefferies, but
by activist investors for withdrawing an the bank says it is just
offer to make him CEO being cautious

„ FRONT STORY STRATEGY

UniCredit targets advisory and ECM growth

CEO Orcel aims to distribute €16bn in 2022–24 strategic plan
UNICREDIT plans to selectively build up its of solutions to our clients, which is plan is based on organic growth, although
M&A advisory and equity capital markets something we were not able to do as well as he will keep an eye on acquisitions which
businesses in its investment bank as part of we would have wished in advisory and could add value.
a new three-year plan announced by CEO equity capital markets, given we were His plan aims to increase net revenues by
Andrea Orcel to increase revenues, improve under-invested in the business,” Orcel said. 2% per year through 2024 and deliver a net
PROlTABILITYûANDûRAMPûUPûPAYOUTSûTOû
shareholders.
Orcel said his plan aimed to “unlock the
potential” of UniCredit across its footprint
of 13 countries, spanning Italy, Germany,
and Central and Eastern Europe. He wants to
lift the Italian bank’s return on allocated
capital to at least 10% by 2024, from about
7% in 2021.
That includes increasing revenues in the
advisory and capital markets business by
11% per year until 2024, from about €500m
in 2021, indicating an extra €180m in fees to
about €680m in 2024. This represents easily
the punchiest growth ambitions for any unit
in the new corporate solutions division,
which also includes client risk management,
specialised lending, and transactions and
payments.
“Where we can do a lot more is on the
advisory and equity capital markets area, so
WEûAREûINVESTINGûSIGNIlCANTLYûINûTHATû
business, but always with a view of keeping
it targeted and focused to our existing
clients,” Orcel said on a media conference
call. “It’s a business that needs developing
and we are hiring, and we have quite a lot of
EXPECTATIONûFORûITû4HEûPLANûHASûSIGNIlCANTû
growth rates we are assuming for it, albeit
He said the cost of origination and risk PROlTûOFûATûLEASTûõBNûINûûFROMûABOUTû
would be lower as the business will be with €3.3bn expected for 2021.
existing clients, and rivals are not the bulge- The bank intends to distribute at least
bracket banks Orcel used to work for and €16bn for 2021–24 through dividends and
compete with. He said UniCredit did well in share buybacks, and keep excess capital of
debt capital markets and “we punch above 100bp–150bp. It aims to distribute €3.7bn
our weight”. for 2021 and a similar or higher amount for
2022, and higher payouts after that.
DIVIDENDS AND BUYBACKS That payout was higher than expected,
Orcel made his name as a star M&A banker ANDû5NI#REDITSûSHARESûJUMPEDûûONû
at Bank of America and then headed UBS’s Thursday to €12.80, their highest level since
investment bank, and took over at UniCredit February 2020.
in April. The payout equates to 56% of UniCredit’s
Earlier this year UniCredit was in talks to market capitalisation, even after the rally.
buy troubled Italian rival Banca Monte dei h#APITALûRETURNSûREPRESENTûAûSIGNIlCANTû
Paschi di Siena, but Orcel spurned the terms short and mid-term support for UniCredit,”
on offer and said on Thursday his 2021–24 said Barclays analyst Paola Sabbione in a
note. “The P&L goals seem reasonable, based
UNICREDIT BOUNCEBACK PLAN on both revenue (fees) and cost
%
€bn improvements. However, we miss clarity on
14
6 detailed drivers, and it will take time to
12
5 DELIVERûPROlTABILITYûRECOVERYv
10
4
Orcel is targeting €1.5bn of gross cost
8 savings by 2024 and a net cost reduction of
3
6 €500m. He intends to invest €2.8bn in digital
2 4 and data investments to establish UniCredit
1 as a leading digital bank, which will include
2
hiring 2,100 extra staff. He has already
0 0
named a new digital and information
–1 –2
from quite a low base.” OFlCERû*INGLEû0ANGûWHOûOVERSAWûTHEûlNTECHû
UniCredit has more than one million –2 –4 transformation of China’s Ping An Insurance
corporate clients, mostly small and mid- –6 Group.
–3
SIZEDûlRMSûBUTûALSOûMAJORûCORPORATESûANDûITû –8 Like many rivals, Orcel is also planning to
–4
has longstanding relationships with most. 2017 2018 2019 2020 2021E 2024
ramp up business related to sustainability,
“Our ambition is not to go out there and Target and is targeting €150bn of new ESG lending
compete with everyone. Our ambition is to Net profit €bn (lhs) RoTE % (rhs) volumes in the next three years.
improve our penetration and our provision Source: UniCredit results, Strategy Day December 9 Steve Slater

International Financing Review December 11 2021 11

“This is unprecedented. We’ve never
seen this level of activity in Asia”
MORGAN STANLEY’S SAURABH DINAKAR ON FUNDED COLLARS, P17

Central banks test settlement risks of digital currencies

Central banks have tested the resilience of using INTERNATIONALûSETTLEMENTSûBETWEENûlNANCIALû h*URAûDEMONSTRATESûHOWûWHOLESALEû#"$#Sû
digital currencies in typical cross-border institutions. can optimise cross-currency and cross-
wholesale transactions, signalling how seriously That has long been a key risk monitored border settlements, which are a key facet of
they are taking the use of such products.
The SWISS NATIONAL BANK and the BANK OF
FRANCE conducted a series of transactions to
settle foreign exchange payments and a
€200,000 10-day euro commercial paper deal
to see how central bank digital currencies
would work in such scenarios.
The daily turnover in global FX markets
can be more than US$6trn and international
arrangements only cover a small range of
currencies, assets and participants in the
[EU] governing council,” she said. “But we
market, meaning cross-border settlements
are riskier, slower and more costly than
BYûlNANCIALûSUPERVISORSûWHOûFEARûTHATûAû
counterparty could fail before a transaction
is completed, as happened with Lehman
Brothers’ failure in September 2008.
The deals tested settling FX transactions
in euro and Swiss franc CBDCs, and issuing,
transferring and redeeming tokenised euro-
denominated French commercial paper
BETWEENû&RENCHûANDû3WISSûlNANCIALû
institutions.
h0ROJECTû*URAûCONlRMSûTHATûAûWELL
designed wholesale CBDC can play a critical
role as a safe and neutral settlement asset
international transactions,” said Sylvie
Goulard, deputy governor of the Bank of
France.
Some smaller central banks, such as the
Bahamas, have already issued CBDCs but
larger ones are at different stages of
assessing them. Goulard said the eurozone
had not yet decided on whether to introduce
a euro CBDC.
h7EûCANNOTûPREJUDGEûTHEûDECISIONûOFûTHEû
are convinced we need to dig deeper and
MAKEûSUREûSYSTEMSûAREûEFlCIENTûANDûSAFEû7Eû
domestic ones. FORûINTERNATIONALûlNANCIALûTRANSACTIONSvû AREûNOTûATûTHEûENDûOFûTHEûJOURNEYû4HISûISûANû
The BANK FOR INTERNATIONAL SETTLEMENTS was said Benoit Coeure, head of the BIS IMPORTANTûlRSTûSTEPv
also involved in the experiment, called Innovation Hub. Coeure said: “The ultimate ambition is to
0ROJECTû*URAû4HEûPARTICIPANTSûSAIDûAûKEYû 0RIVATEûSECTORûlRMSûWEREûINVOLVEDûINûTHEû make cross-border transactions simpler and
outcome was that such currencies might be
USEDûBYûlNANCIALûINSTITUTIONSûTHATûAREûNOTû
RESIDENTûINûTHEûJURISDICTIONûWHEREûTHEû
transactions took place.
The three institutions concluded that
CBDCs could be used effectively for
Oudea takes on risk and compliance at SG
SOCIETE GENERALE’s longstanding chief
executive Frederic Oudea, who has been in the
PROJECTûINCLUDINGûCREDIT SUISSE, UBS and
NATIXIS. The banks directly transferred
CBDCs between each other on a single
platform based on distributed ledger
technology in a near real-time situation that
met regulatory requirements.
accusations it dodged sanctions against
Cuba and other countries.
faster.”
“HUGE IMPACT”
Mohamed Kallala, co-head of corporate and
investment banking at Natixis, told IFR the
use of blockchain technology and CBDCs
but is still way below the €82 level at the
beginning of 2008.
Now the DPA has been completed, Oudea
will be responsible for risk and compliance
position since 2008, is adding to his
extensive responsibilities by taking over
direct supervision of risk and compliance
across the French bank.
SG has faced several risk issues during
Oudea’s tenure. His reign started in the
same year as the bank lost nearly €5bn from
SG’s three-year deferred prosecution
agreement from the case recently ended.
Earlier in 2018 the bank paid US$1.3bn to US
and French authorities over transactions with
Libya and rigging Libor. That saw former
investment banking head Didier Valet go.
The bank’s fortunes have improved over
INûADDITIONûTOûAUDITûlNANCEûHUMANû
resources and communications.
Diony Lebot, who was responsible for the
remediation programme with US
authorities, will now be in charge of ESG
policies across the bank. She remains
RESPONSIBLEûFORûSPECIALISEDûlNANCIALûSERVICESû
AûSERIESûOFûROGUEûTRADESûBYû*EROMEû+ERVIELû the last year and its shares are up 72% this and insurance activities.
and in 2018 the bank paid US$1.4bn in a year to €29.28. That makes it one of the best Gaelle Olivier, chief executive for Asia, has
settlement with US authorities following performing European bank shares this year, been appointed group chief operating

Who’s moving where…

ROTHSCHILD & institutions group in Lenaig Trenaux has SG in 2006. Trenaux
CO has hired John investment banking been promoted to previously worked
Brennan from after joining the SOCIETE GENERALE’s for Natixis and BNP
Goldman Sachs as bank in 2005 and global head of mining, Paribas. She will
head of UK financial becoming partner in metals and industries replace Stephanie
institutions and co- 2020. He previously finance, based in Clement de Givry, who
head of European spent two years at Paris. She has been is moving to head
financial institutions Deutsche Bank and regional head of the global banking and
in its global advisory three years at JP mining, metals and advisory for Asia-
team, based in Morgan. industries finance Pacific in Hong Kong.
London. Brennan team for the Americas
was a partner in in New York since
Goldman’s financial 2016 after joining

12 International Financing Review December 11 2021


more widely could have “a huge impact on
THEûlNANCIALûINDUSTRYv
He said stablecoin initiatives of this kind
would have “more impact than bitcoin and
related crypto assets”. Such assets account
for 95% of the total market value of all
cryptocurrencies, currently over US$2trn.
Shareholder activists set sights on Europe
Shareholder activism is roaring back after a
brief pause following the outbreak of a
global pandemic and companies and their
advisers are expecting the coming season to
be busy – including a potential “golden age”
People
& Markets
While not a formal proposal, the call is being
taken as an activist threat, according to bankers.
“Shell has too many competing
stakeholders pushing it in too many
different directions, resulting in an
“This will provide additional services to
INVESTORSûBEYONDûBEINGûJUSTûANOTHERûASSETû
class,” he said, noting that stablecoins linked
to real currencies would have a wide impact
on banks.
“There is a lot of serious work looking at
the impact of stablecoins. With CBDCs you
may see central banks growing deposits,
which are guaranteed direct by the central
BANKûRATHERûTHANûBEINGûPLACEDûWITHûlNANCIALû
institutions.”
That could change how banks are funded,
with them having to rely more on wholesale
markets if some of their deposits are lost.
“We will be prepared for this and we are
ADVISINGû;lNANCIAL=ûCLIENTSûONûTHEûIMPACTûOFû
for activism in Europe.
It is unclear if the pause in activism was
out of respect for a global crisis or because
soaring equity markets left little to agitate
for, but the gloves now seem to be off.
“Our refreshed outlook predicts a
SIGNIlCANTûINCREASEûINûTHEûNUMBERûOFûPUBLICû
activist campaigns across Europe during
2022,” said Alvarez and Marsal in its latest
ACTIVISMûSURVEYû4HEûADVISORYûGROUPûIDENTIlEDû
58 companies at risk of becoming targets over
the next year, up from 53 earlier in the year.
The predicted increase in activism marks
a continuation of the trend.
!FTERûAûSUBDUEDûlRSTûQUARTERûINûWHICHû
public campaigns were down 35% compared
INCOHERENTûCONmICTINGûSETûOFûSTRATEGIESû
attempting to appease multiple interests but
satisfying none,” Third Point CEO Daniel
Loeb said in an open letter. “Some
governments want Shell to decarbonize as
rapidly as possible. Other governments want
it to continue to invest in oil and gas to keep
energy prices affordable for consumers.
Europe paradoxically wants both!”
Activist hedge fund Elliott Advisors is
MEANWHILEûPUSHINGûFORû5+ûENERGYûlRMûSSE
to split up.
Both campaigns come in the wake of a
STUNNINGûUPSETûSUFFEREDûBYû%XXONû-OBILûINû*UNEû
as activist investors won three board seats.
Europe is set to enter a “Golden Age for
this as deposits move to central banks and
HOWûTHISûWILLûIMPACTûHOWûTHEYûlNANCEû
themselves,” said Kallala.
The European Central Bank is understood
to be studying this aspect.
Christopher Spink
OFlCERûINûCHARGEûOFû)4ûANDûDIGITALû
transformation, another key strategic
initiative for the group.
WITHûTHEûlRSTûQUARTERûOFûûACTIVITYûHASû
ramped up as uncertainty caused by the
pandemic is gradually giving way to greater
corporate visibility, A&M said.
Between March and September, activist
campaigns in Europe rebounded strongly and
were up 22% year-on-year. However, over the
same period the number of US campaigns fell by
26%, demonstrating the growing importance of
Europe for activist investors, A&M said.
“We also predict a continued shift in focus
Activism” with a surge in activity during
2022, A&M said.
“As the fog gradually clears and corporate
visibility improves following the acute
phase of the pandemic, investors will look
to capitalise on this target-rich environment
to generate ever greater returns.”
The companies predicted to be at risk over
the next 12 to 18 months have a larger
average market capitalisation – £20.2bn or
€23.6bn – than those targeted in 2021 to-
Cecile BartenieffûCHIEFûOPERATINGûOFlCERûFORû
global banking and investor solutions,
where the investment bank sits, will take
over from Olivier as Asia CEO. She has been
in her role for four years.
Oudea said creating two posts at general
management level for ESG and IT was
important as these two areas “will affect all
our businesses and functions”.
4HEûCHANGESûAREûEFFECTIVEû*ANUARYû
Christopher Spink
among activists that will see them
concentrate on slightly fewer but larger
companies and hold their investments on
average for longer periods,” A&M said.
BREAKING SHELLS
Indeed, before the campaign season kicked
into gear in December, hedge fund Third
Point unveiled a stake in ROYAL DUTCH SHELL and
pushed for the oil company to break itself up
and create a standalone renewables business.
date (£16.9bn/€19.8bn) and during 2020
(£12.3bn/€14.4bn).
A&M is predicting that activist campaigns
will focus on a slightly smaller number of
larger targets over the next 18 months. The
lRMûSAIDûRECENTûCAMPAIGNSûAGAINSTû'3+ûANDû
Shell highlight the strength of this trend.
In Europe, activists will continue to focus
on the UK, but Germany will continue to be a
key market.
Philip Scipio

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

HOULIHAN LOKEY investment banking Giovanni Galvani from Caius Capital,

hired Geoff Wilson as a practice. He previously (left) has joined where he was head
managing director in spent 15 years at BLUEBAY ASSET of marketing and
its power and utilities McManus & Miles, MANAGEMENT as investor relations for
group, focusing and has also worked an analyst and James four years. Galvani
on the renewable at Merrill Lynch and Rous has joined as an was a distressed debt
power sector, based Bank of America. institutional portfolio and special situations
in New York. Wilson manager, to bolster analyst at SC Lowy,
joined from boutique the firm’s leveraged where he spent six
investment bank finance and special years, after previously
Whitehall & Co situations capabilities. spending a year at
where he shaped its They are based in Fidelity.
renewable energy London. Rous joined

International Financing Review December 11 2021 13

Bellwether
Bellwether: n. From the practice of placing a bell around the
neck of a castrated ram so that it might lead its flock
IN THE MOST recent episode of Succession, the multi-award
winning comedy-drama about a dysfunctional corporate
family, foul-mouthed proprietor Logan Roy is discussing a
potential acquisition by his entertainment conglomerate
protocol from the moment I entered the country on November
28 2021 until I left,” Horta-Osorio said in a statement.
Except that he violated the rules on December 1. So his
“strict” adherence lasted three days.
That’s even shorter than Bellwether’s usual attempt at
$RYû*ANUARY
In fairness, it was an unintentional breach and in the grand
7AYSTARû2OYCOûOFûAûSHINYûTECHûCOMPANYûCALLEDû'O*O
The Credit Suisse logo features prominently in the state-
of-the-art meeting room as the family discusses mergers of
equals and takeover tactics. After some to and fro, Logan
decides there’s the chance of a deal.
The whole thing has the air of smart product placement
– right up until Logan turns to a speaker phone underneath
the Credit Suisse logo and barks “Bring ‘em in. Let’s get the
banker fucks in here on this”, and the shot holds on the
Credit Suisse logo before the deal team trots in.
For anyone in the Credit Suisse marketing department
who’s not aware of this piece of TV gold, it takes place in
the 60th minute of episode 8, series 3. You’re welcome.
Given the sort of scandal-hit year Credit Suisse has
endured, is it showing it has a sense of humour, or is this a
EMERGEDûINûAûMOREûRECOGNISABLEû1!ûFORMATûmANKEDûBYûHISû
SIGNALûFROMûONûHIGHûABOUTûWHATûTHEûlRMûREALLYûTHINKSûABOUTû
its investment bankers?
SCHEMEûOFû#REDITû3UISSEûTHINGSûITûPALESûINTOûINSIGNIlCANCEû
against “the surveillance matter”, or the “prime brokerage
matter”, not to mention the “Greensill matter”. In fact,
compared with those, it doesn’t matter at all.
THE EIGHT-HOUR speech given by Indian politician VK Krishna
Menon in 1957 in which he explained his country’s position
on Kashmir is listed by Guinness World Records as the
longest speech delivered at the United Nations.
When Andrea Orcel emerged alone with a steely glint in
his eye to present UniCredit’s new strategy single-handedly,
many will have feared the worst and worried he might be
looking for a place in the history books.
After laying down his solo vision, he paused for a break and
RE
fellow executives, some of whom got a word in during Orcel’s
second back-to-back 90-minute session of the day.
CREDIT SUISSE PROVIDED some real-life fun too last week when
its chairman Antonio Horta-Osorio did what some prime
MINISTERSûANDûBUSINESSûEXECUTIVESûlNDûNEARLYûIMPOSSIBLEûHEû
made an apology.
Horta-Osorio apologised for unintentionally breaking
Covid-19 rules during a recent visit to Switzerland by
leaving the country during a 10-day quarantine period.
But on closer inspection, his apology is not exactly fulsome. “I
aim to abide by Swiss quarantine rules and strictly followed the
4HEûlNALûQUESTIONûCAMEûFROMûANûANALYSTûATû3ANTANDERûAûBANKû
that Orcel was set to run until a row over his pay ended up in
the courts and prompted his eventual move to UniCredit.
Would the word “Santander” cause Orcel to twitch like
an actor hearing the word “Macbeth”? Not at all. Asked
about which markets he would grow in, Orcel said: “Life
has the habit of showing you opportunities when you least
expect them, or when you are least ready.” It was almost
poetic... especially when Orcel found himself €68m richer
the next day. „

Who’s moving where…

„ Boutique government services „ NUMIS has hired equity analyst; and „ WILLIAM BLAIR to IGP head Elliot
investment bank team. He recently three people for Rachel Stott joined has nabbed Jim Farkas. IGP focuses
DC ADVISORY has worked on BAE its growth capital after being strategy Conniff as a managing on tech-enabled
hired Ellis Chaplin as Systems’ acquisition solutions team in manager at drinks director to beef up applications such as
managing director for of Bohemia Interactive London in recent company Fever-Tree, its industrial growth robotics, motion and
its aerospace, defence Simulations. months. Gbolahan after four years in products investment flow control, sensors
and government Ladipo joined from equity research at banking team. and automation, and
services team, based Nomura, where he JP Morgan. Numis Conniff, who joined energy and power.
in Washington, DC. spent seven years; has also hired from Lazard after prior
Chaplin joins from Matt Wisniewski Tiina Winnan from stints at Goldman
Raymond James, joined after seven Goldman Sachs as Sachs and Robert
where he worked years at Barclays, head of operations. W Baird, is based in
in the defence and most recently as an Chicago and reports

14 International Financing Review December 11 2021


JP Morgan sees Q4 IB fees up 35%
A record year for investment banking fees
is likely to end on a high note, according
Brian Moynihan. That would represent a rise
in revenues of at least 7% from a year ago,
People
& Markets
Pinto said. Still, performance in 2021 was a
better outcome than he was planning for.
Pinto said FICC revenues could be down
about 10% in the fourth quarter compared
to guidance from bank bosses last week. when it reported US$1.86bn in investment WITHûTHEûlNALûQUARTERûOFûûWHENûTHEû
JP MORGAN is expecting fee revenues in the banking revenues. bank reported FICC revenues of nearly
fourth quarter to be up about 35% from a CITIGROUP CHIEFûlNANCIALûOFlCERû-ARKû US$4bn. Revenues from equities trading are
year earlier.
*0û-ORGANûREPORTEDûRECORDû/CTOBERn
December investment banking revenues a
year ago of nearly US$2.6bn, which was up
34% compared with the end of 2019.
“When you compare the fourth quarter of
2021 with the fourth quarter of 2020,
investment banking fees are going to be up
in the mid-30s, plus or minus,” said Daniel
Mason said he expects to see “good fee
revenue growth” in the quarter. The bank
reported a 5% decline in investment banking
revenues in Q4 2020 compared with 2019.
TRADING BUST
While investment banking fees are likely to
continue a record run at most banks –
propelled by a record-setting pace for M&A
LIKELYûTOûBEûmATûWITHûAûYEARûAGOûWHENûTHEYû
came in at about US$2bn.
Revenues from equities trading have
surged this year for most banks to make up
for the reduction in FICC trading levels, but
next year equities trading revenues are
likely to begin a slide back to more
normalised levels, Pinto said.
Equities trading revenues across the
0INTOû#%/ûOFû*0û-ORGANSûCORPORATEûANDû transactions – trading revenues will continue to industry will have reached about US$77bn
investment bank. stabilise at below the robust pace set in 2020. this year, well above the normal range of
Pinto said the pipeline across M&A, debt 0INTOûESTIMATEDûTHATûTOTALûINDUSTRYûlXEDû US$55bn to US$65bn, Pinto said.
and equity underwriting looks quite strong income trading revenues are likely to be Citi expects fourth-quarter trading to be
into next year. Executives were speaking at
'OLDMANû3ACHSûlNANCIALûSERVICESûCONFERENCE
BANK OF AMERICA is also expecting a strong
lNISHûTOûTHEûYEARû4HEûBANKûISûEXPECTINGû
“another US$2bn quarter” from investment
banking fees in the fourth quarter, said CEO
Santander told to pay Orcel €68m over job offer
A Madrid court has ordered SANTANDER to pay
Italian banker Andrea Orcel €67.8m (US$76.4m)
over an offer to make him CEO that the
Spanish bank withdrew, Reuters reported.
4HEûCOURTûSAIDûTHEûBANKSûJOBûOFFERûLETTERûTOû
Orcel was a binding contract and Santander
about US$125bn this year, down from
US$147bn in 2020. That’s still well above the
trough of about US$100bn in 2019.
“Some of the normalisation has already
happened … and probably we’re going to
see some more normalisation next year,”
damage,” the ruling, dated December 9 but
released on Friday, said.
Santander and Orcel’s legal team declined
to comment.
The court said Santander has to pay Orcel
€17m for a sign-in bonus, €35m for a buyout
mATûTOûDOWNûMODESTLYûFROMûAûYEARûAGOûWHENû
trading revenues were US$3.9bn, up 14%
FROMûTHEûlNALûQUARTERûOFû
BofA is expecting to match year ago levels
in trading, Moynihan said.
Philip Scipio
The case revolved around whether a four-
page offer letter to Orcel in September 2018
was a binding contract or a non-binding
initial offer, as Santander chairman Ana
"OTINûASSERTEDûINûTHEûlRSTûSESSIONûOFûTHEû
Madrid court hearing in May.
will have to pay him the compensation.
“The contract was unilaterally and
arbitrarily rescinded by Banco Santander,”
the court said in its ruling, which can be
appealed before a Madrid regional court.
“The situation created by Banco
Santander caused Mr Orcel clear moral
clause, €5.8m for two years’ salary and €10m
for moral and reputational damage.
The court said that Santander would also have
TOûPAYûLEGALûINTERESTûSINCEûTHEûDATEûOFûlLING
Orcel sued Spain’s largest bank after it
WITHDREWûTHEûJOBûOFFERûALMOSTûTHREEûYEARSû
ago in a dispute over his pay package.
)Nû*ANUARYûû3ANTANDERûSAIDûTHEûBANKû
could not meet Orcel’s pay demands, which
included covering up to €35m (US$41m)
of a €55m compensation package he
was due to receive in future years
from UBS.
Jesus Aguado, Emma Pinedo

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

„ Denis Vucina, become head of Swiss „ HSBC has poached „ CREDIT SUISSE’s state-controlled „ BLACKSTONE has
head of Swiss franc and alternative Ajinkya Mukhopadhyay Brazilian unit lender Banco do hired two executives
franc syndicate at currency syndicate, from UBS to head named former Brasil from 2009 for its US$81bn hedge
DEUTSCHE BANK in and will assume its TMT group for Petrobras CEO to 2015. fund. David Ben-Ur
Zurich, is retiring after responsibility for the Southeast Asia and Ivan Monteiro and will join as chief
21 years in syndicate Zurich debt syndicate India within its global wealth management investment officer
and more than a desk from January 1. banking division, executive Marcello of the hedge fund
decade at the bank, based in Singapore. Chilov as interim solutions business.
a source said. Vucina Mukhopadhyay ran co-CEOs, replacing Atish Nigam will join
will leave at the end UBS’s TMT franchise Jose Olympio Pereira, as CIO of the special
of 2021. Christian in Southeast Asia and Reuters reported. situations investing
Spahn, director in India for two years. Monteiro was also business.
DCM syndicate, will previously CFO of

International Financing Review December 11 2021 15

“Green bonds will require EM issuers to disclose how the
capital raised will be deployed and ring-fence the capital”
BNP PARIBAS REPORT ON GREEN BONDS, P18

Capital markets week ahead:

Samsara, Evergrande, Hungary
‘TWAS THE WEEK BEFORE CHRISTMAS STUFFING THE TURKEY Italian football club SLEIGH BELLS RING MTN Nigeria, which
3AMSARAûTHEûmEETûMANAGEMENTûPLATFORMû *UVENTUSûISûDUEûTOûWRAPûUPûITSûõMûRIGHTSû operates the largest mobile phone network
that bills itself as one of the fastest-growing issue on Thursday, a deal that’s critical to in Africa’s most populous country, looks set
TECHNOLOGYûlRMSûINû3ILICONû6ALLEYûLOOKSûSETû
TOûBEûTHEûlNALûCOMPANYûTOûGOûPUBLICûINû.EWû
York this year. It is due to price its US$800m
NYSE listing on Tuesday, proceeds from
which will go towards plugging ongoing
losses – and fund future growth.
The deal caps the biggest year on record
for the US IPO market, with more than 300
companies going public and raising around
US$115bn between them. That’s about 70%
higher than the previous record. In Europe,
historically a much smaller market, growth
has also been dramatic – IPO volumes have
quadrupled from last year.
ALL IS CALM, ALL IS BRIGHT The fallout from
troubles at Evergrande continues, after the
Chinese real estate developer was declared
technically in default on its offshore bonds
last week. The decision triggered cross-
default clauses on around US$19bn of debt,
creating further stress on the company as it
STEADYINGûTHEûCLUBSûlNANCESûFOLLOWINGûTHEû
bruising impact of the pandemic. It’s
unclear how an ongoing investigation into
alleged false accounting will affect the deal.
0OLICEûRAIDEDûTHEûCLUBSûOFlCESûJUSTûHOURSû
before subscription began two weeks ago.
PARTY GAMES Mobile gaming platform Skillz
is set to make its bond market debut with a
JUNKûOFFERINGûTHATûWILLûTESTûINVESTORûAPPETITEû
FORûCOMPANIESûYETûTOûTURNûAûPROlTûORûGENERATEû
FREEûCASHmOWû4HEûCOMPANYûMERGEDûWITHû
Flying Eagle Acquisition Corporation in a
US$3.5bn deal a year ago and operates a
platform that allows players to compete
across the world via their phones.
NAUGHTY OR NICE? A French court is expected
to give its ruling on Monday on whether UBS
helped clients evade taxes, which could
RESULTûINûAûlNANCIALûPENALTYûOFûUPûTOûõBNû
The case has been rumbling for years, and
to complete a N97bn (US$240m) share sale
on Tuesday. Parent MTN Group is selling
575m shares as part of plans to gradually
REDUCEûITSûHOLDINGûANDûCOMESûJUSTûTWOû
months after it listed MTN Uganda.
MULLED WINE Swedish vintner Viva Wine is
set to close books on Friday for its Nasdaq
Stockholm IPO in a deal that looks set to
raise SKr1.2bn (US$130m). Proceeds from
the IPO will repay loans taken out to fund
the acquisition of Vicampo.de, its 11th
acquisition since 2009. Its produces and sells
its own and partner wines in the Nordics,
Germany, Switzerland, Austria, France and
the Netherlands.
The Capital Markets Week Ahead briefing will be
taking a short break and will return in January.
IFR wishes its readers a Merry Christmas and
Happy New Year.
SEEKSûTOûMANAGEûûREALûESTATEûPROJECTSû
and around US$300bn in liabilities.
HO HO HOû(UNGARYûISûSETûTOûLAUNCHûTHEûlRSTû
green sovereign Panda bond on Tuesday in
China’s interbank bond market. The Eastern
European sovereign is looking to raise
UBS has only provisioned €450m against the
case. But it has plenty of cash in reserve, and
investors hope that resolution of the case will
open the door to higher payouts. LAST WEEK IN NUMBERS
US$50bn – Valuation for Brazilian online
JINGLE BELLS India is braced for three IPOs bank Nu, after its US$2.6bn dual listing
in Mumbai. First up is CE Info Systems, also 5.25% – Coupon on £210m bond sale
Rmb1bn (US$160m) from the three-year
deal, proceeds from which will help fund its
transition to a low-carbon economy.
Hungary has twice previously sold debt in
the Panda market – in 2017 and then a year
later.
16
known as MapmyIndia, which is expected to
price its Rs10bn (US$130m) offering on
Monday. Metro Brands, formerly called
Metro Shoes, prices its Rs13.7bn deal on
Tuesday, and MedPlus Health Services
follows with a Rs14bn deal on Wednesday.
International Financing Review December 11 2021
FROMûABRDNûTHEûlRSTûEVERû!4ûFROMûANû
asset manager
€16bn – Amount UniCredit plans to
return to shareholders over the next
three years
 People
& Markets
Funded collars hit record in Asia equity capital markets banker at a European
bank said there were fewer banks in Asia
WITHûSTRONGûmOWûDERIVATIVESûBUSINESSESûANDû
Funded collars, a relatively rare type of and equity-linked solutions at Morgan the reduced competition means banks can
SHARE
BACKEDûlNANCINGûINû!SIAûHISTORICALLYû
AREûENJOYINGûTHEIRûBESTûYEARûONûRECORDûINûTHEû
region, according to bankers.
These structures involve banks selling
investors a put option and buying a call
option and then lending against the
“collared” shares.
This is providing a lucrative source of new
business for banks and also helping reduce
their risk compared with more traditional
margin lending.
Traditionally associated with highly
acquisitive companies such as China’s
recently restructured HNA Group, the use of
PROlLEûPUBLICû IMMEDIATELYûWITHOUTûBENElTINGûFROMûANYû
FUNDEDûCOLLARSûISûUPûSIGNIlCANTLYûEVENûONû
last year, which was already a bumper year,
bankers say.
They attribute this to market volatility, in
particular following the regulatory
crackdown in China across several sectors.
As a result, more investors are opting for
these structures instead of margin loans
because there is no risk of having to post
more collateral if share prices dip.
At the same time, banks are pitching
these products more aggressively, having
less risk appetite for providing margin
lending after the collapse of Archegos
Stanley. “This is unprecedented. We’ve never charge more than in Europe and the US.
seen this level of activity in Asia.”
“HERE TO STAY”
/VERALLûDEALûVOLUMESûAREûDIFlCULTûTOûQUANTIFYû
ASûTHEûVASTûMAJORITYûOFûTRANSACTIONSûAREû
private, although one banker said the
number of deals at his bank had risen
threefold this year. There is some debate
about whether overall volumes are up as last
YEARSûlGURESûWEREûSKEWEDûBYû3OFT"ANKSû
HUGEû53BNûlNANCINGûONûTHEûBACKûOFûITSû
shareholding in Alibaba Group Holding.
4HEREûHAVEûBEENûFEWERûHIGH
deals this year. The most notable involved
China’s ENN GROUP, which raised A$650m
53M ûTHROUGHûAûCOLLARûlNANCINGûONûITSû
9.97% stake in Australian oil and gas producer
SANTOS via Morgan Stanley and UBS.
Investors in Asia have tended to eschew
collars in the past given that the upside is
capped. They are also usually more
expensive than borrowing on margin unless
they are structured as zero-cost collars,
which is rare.
“One product is not necessarily more risky
than the other, as there can be well-structured
margin loans and poorly structured collars
The lack of liquidity is the main reason
why collars have been used less commonly
in Asia, but there are several reasons why
volumes are expected to continue growing.
More unicorns in the region are listing.
Since a lot of founders and early stage-
investors will look to monetise their
shareholdings at some point, many will opt
FORûCOLLARûlNANCINGSûRATHERûTHANûBLOCKû
trades because investors in some of the
region’s fast-growing tech companies are
usually reluctant to sell their shares
potential upside.
The expected rebound in cross-border M&A
activity is also expected to see more investors use
collars to build up stakes in target companies as
HNA did to build up its shareholding in Deutsche
Bank, while Geely Automotive did the same for
its stake in Daimler.
And bankers said they expected investors
to keep the more prudent approach they
have taken in response to market volatility
this year, even when bull market conditions
return.
“Eventually, once things stabilise a bit, the
margin loan business will come back, but the
Capital Management, which defaulted on a and vice versa; but all things being equal, it’s POPULARITYûOFûCOLLARûlNANCINGSûISûHEREûTOûSTAYvû
series of margin calls, led to massive losses generally true that the maximum loss in a tail said Morgan Stanley’s Dinakar. “I think some
at a number of banks this year. RISKûEVENTûFORûTHEûSAMEûlNANCINGûAMOUNTûONûAû of the volatility we have seen this year has
h)TûISûDIFlCULTûTOûGETûANYûVISIBILITYûONûOVERALLû collar would be lower,” said Aaron Oh, head of come as a bit of a shock to investors. A lot of
numbers, but anecdotally, the number of THEû!SIA
0ACIlCûSTRUCTUREDûSOLUTIONSûGROUPûATû wealth has evaporated and it’s across all asset
DEALSûISûUPûSIGNIlCANTLYûTHISûYEARûANDûTHISûHASû
more than made up for the reduction in
margin lending,” said Saurabh Dinakar, head
OFû!SIA
0ACIlCûlXED
INCOMEûCAPITALûMARKETSû options at different volatility levels. One
Indonesia woos tech companies
Indonesia has allowed companies with
multiple voting rights to list domestically, as
it targets more IPOs from the country’s
BASEDû%#-ûBANKER
burgeoning technology sector.
&OUNDERSûOFûE
Credit Suisse.
They are also lucrative for banks, which
make money on trades by pricing the two
Thomas Blott
assets of at least Rp2trn (US$139m) and must
have been operational for a minimum of
three years. It must also never have made a
public offering of shares.
CLASSESûSOûHAVINGûAûDIVERSIlEDûPORTFOLIOû
hasn’t helped much. I expect current
attitudes towards risk to remain.”
“The MVR facility has been put in place to
keep all the technology company founders
and investors happy. In return, Indonesia is
hoping they will list locally and improve the
visibility of the domestic market,” said the
*AKARTA
Among the companies likely to use the
COMMERCEûlNTECHûANDû MVR shares can total only 47.3% of a MVR facility to list locally are GOTO, which
other tech companies often use the MVR company’s capital. was created after the merger in May of ride-
structure to retain control after they bring “The issuance of this regulation is an HAILINGûCOMPANYû'OJEKûANDûE
COMMERCEû
in new investors.
“Global investors know that without the
founders’ vision, these companies can’t
grow. Hence there has been intense
lobbying to get the MVR facility off the
EFFORTûTOûENCOURAGEûlNANCIALûMARKETû
deepening, especially in the capital market
sector, by accommodating companies that
create new innovations,” the Financial
Services Authority said.
lRMû4OKOPEDIAû)NDONESIASûTWOûBIGGESTû
unicorns.
GoTo is planning an Indonesian IPO of up
TOû53BNûINûTHEûlRSTûHALFûOFûNEXTûYEARûAHEADû
of its plan for a larger US listing.
GROUNDvûAû*AKARTA
BASEDû%#-ûBANKERûSAIDû Indonesia is not alone in wooing technology /NLINEûTRAVELûlRMûTRAVELOKA is also
Under the new regulations, which went companies through special rights; Hong Kong, PLANNINGûAû53MnMûDOMESTICûmOATû
into effect on December 1, a company India and Singapore also have a framework for next year before going to the US market.
planning to issue MVRs should have total issuing dual-class shares. S Anuradha

International Financing Review December 11 2021 17

“Where we can do a lot more is on the advisory and equity capital
MARKETSûAREAûSOûWEûAREûINVESTINGûSIGNIlCANTLYûINûTHATûBUSINESSv
UNICREDIT CEO ANDREA ORCEL, P11

Green bond boom has further to go
Green bond new issues should rise a further
60% in 2022 even after doubling this year,
according to BNP Paribas. The French bank
expects corporate and emerging markets
issuers to drive global volume of nearly
ONEûINûlVEûOFûTHEûWORLDSûCOMPANIESûHAVINGû
committed to achieving carbon neutrality, the
bank sees household and corporate demand for
renewable energy ramping up.
In turn, this will create the need to develop
“Green bonds will require EM issuers to
disclose how the capital raised will be
deployed and ring-fence the capital to ensure
transparency. We think this transparency
will help reduce risk for investors.”
BNPP expects the EU to issue US$35bn–
$40bn in NGEU green bonds next year. This
53BNûNEXTûYEARûWHILEûTHEûlRSTûFULLûYEARû
of the European Union’s unprecedented
€250bn NextGenerationEU green bond
programme should also contribute.
".00ûIDENTIlESûCAPITALûEXPENDITURESûONû
renewable energy as the most important
ANDûlNANCE ûMOREûRENEWABLEûCAPACITYûITû
JUDGESûnûPARTICULARLYûASûBOTHûONSHOREûWINDû
and solar have gained competitiveness in key
markets such as China, the EU and the US as
coal and natural gas prices have risen.
BNPP is also bullish on the potential for
will maintain government-related credits as
the green bond market’s largest sector with
some US$180bn of new supply.
Without the EU’s borrowing to fund loans
ANDûGRANTSûTOûGREENûPROJECTSûUNDERûITSû
member states’ “Recovery and Resilience
factor behind the further growth. “We 2%ûCOSTSûTOûFALLûINû*APANûTHOUGHûTHEYûREMAINû Plans”, however, the government-related
EXPECTûAûSIGNIlCANTûPICK
UPûINûISSUANCEûBYû expensive there relative to coal and nuclear. AREAûWOULDûHAVEûSLIPPEDûBEHINDûlNANCIALSû
corporates looking to build more green (forecast to reach US$160bn) and been
electricity, develop batteries, increase EM MOMENTUM barely ahead of or even in line with
ENERGYûEFlCIENCYûANDûGENERALLYû@GREENûTHEIRû BNPP sees a strong outlook for EM green bond corporates (US$140bn).
supply chains,” it said in analysis by Trevor issuance. In the absence of committed EM Corporates, though, are also the near-
Allen, sustainability research analyst, and transition funding and with investors still exclusive issuers in a second ESG debt product
3UMATIû3EMAVOINE
*AINû'ûRATESûSTRATEGIST hunting for yield, the product should help where the bank forecasts strong growth:
It said capex represents 75%–80% of attract funding to EM countries and corporates. sustainability-linked bonds. BNPP anticipates a
development costs for onshore wind and The product’s use of proceeds doubling of SLB new issues to US$200bn in
solar. commitments should reassure buyers. These 2022, up from around US$100bn this year and
Net zero commitments are the key drivers of could include new accounts that do not a very modest total in 2020.
this expansion. With 120 countries and about typically invest in EM credit, BNPP said. Julian Lewis

Jefferies Covid outbreak unsettles Wall St

A spate of Covid-19 cases at JEFFERIES FINANCIAL Two sources familiar with the matter also BOOSTERS
GROUPûWASûNOTûCAUSEDûBYûAûSPECIlCûINCIDENTûTHEû said on Thursday that the recent outbreak Most banks are strongly recommending staff
Wall Street investment bank said on Thursday, was not believed to be the result of a get booster shots, sources said.
and its decision to reinstate home working was “superspreader” event. *EFFERIESûWILLûREQUIREûEVERYONEûWHOûWANTSû
erring on the side of caution, Reuters reported. 3OMEû*EFFERIESûSTAFFûWEREûSURPRISEDûBYû TOûENTERûANYûOFûITSûOFlCESûTOûHAVEûTHEIRû
*EFFERIESûONû7EDNESDAYûSENTûSTAFFûHOMEû Wednesday’s news and had been unaware BOOSTERûADMINISTEREDûBYû*ANUARYûûUNLESSû
and cancelled client parties and virtually all of any fresh wave of cases, they told they are not yet eligible to do so, Handler
but essential travel after nearly 40 new Reuters. wrote in a staff memo on Wednesday.
#OVID
ûCASESûWEREûREPORTEDûATûTHEûlRMû
prompting speculation about the cause of
the spike and whether other banks will
follow suit.
4HEû*EFFERIESûSPOKESMANûSAIDûTHEûNUMBERû
of cases was small – the Manhattan-
headquartered bank has 4,500 employees
Handler said in a memo to staff on Deutsche Bank has made Covid-19 boosters
Wednesday that more than 95% of all available to staff at its new headquarters in
employees were vaccinated, and 100% of Columbus Circle since early November,
THOSEûWHOûENTERûITSûOFlCESûWEREûVACCINATEDû according to a source familiar with the matter.
*EFFERIESûHADûCALLEDûITSûSTAFFûBACKûTOûITSûOFlCESû Wells Fargo said on Wednesday it was
in October. providing all employees with four hours of
The company did not specify the location PAIDûLEAVEûTOûGETûTHEûBOOSTERûSHOTû*0û-ORGANû
WORLDWIDEûWITHûOFlCESûINû!SIAûANDû%UROPEûASû
well as the United States – but it was getting
out in front of the issue. He said the bank
does not do routine staff Covid-19 testing.
“Throughout the pandemic, we have worked
to put the health and safety of our employees
of the 40 infected employees, nor whether
the return to working from home had been
IMPOSEDûATûALLûOFlCES
3EVERALû7ALLû3TREETûlRMSûAREûINCREASINGû
efforts to ensure staff get coronavirus
booster shots, as countries and industries
and Bank of America also provide employees
with paid time off to receive vaccines and
booster shots.
"ANKSûANDûOTHERûlNANCIALûlRMSûAREû
reluctant to reverse efforts since the summer
to move staff who had been working from
lRSTvû*EFFERIESûCHIEFûEXECUTIVEû2ICHARDû(ANDLERû grapple with how to respond to the spread HOMEûBACKûINTOûTHEûOFlCEû(OWEVERûTHEYûAREû
said in a statement to Reuters on Thursday. of the Omicron variant. conscious that workers are increasingly
“Given the time of year and the increase in Daily Covid-19 cases in New York City concerned about the Omicron variant.
#OVIDûCASESûHAPPENINGûEVERYWHEREûITûJUSTû have surged in recent days and "ANKSûANDûOTHERûlNANCIALûlRMSûAREû
made sense to encourage people to work from hospitalisations in the city are at their mostly allowing smaller teams to hold
home, be with their families, and avoid any highest level since April, according to holiday parties to help maintain morale, but
unnecessary travel or large social events.” data from the US Centers for Disease AVOIDINGûLARGE
SCALEûlRM
WIDEûGATHERINGSû
The bank has felt the pandemic’s impact Control and Prevention. While the Delta 3EVERALûlRMSûAREûREQUIRINGû#OVIDûTESTSû
ACUTELYûASûITSûCHIEFûlNANCIALûOFlCERû0EGû variant is still dominant in the US, Omicron before parties, the sources said.
Broadbent died due to coronavirus has been detected in many states including Matthew Scuffham, Jessica Dinapoli,
complications in March 2020. New York. Noor Zainab Hussain

18 International Financing Review December 11 2021

 BONDS
SSAR 21 Corporates 23 FIG 27 Covered Bonds 30 High-Yield 31 Structured Finance 33

„ FRONT STORY FINANCIALS

Risks and opportunities in AT1s

Additional Tier 1 market takes stock of record-breaking year
Deals may endure secondary suffering but investors upbeat
As 2021 nears its close, many issuers will “From that perspective, it does justify FREQUENTûBOUTSûOFûVOLATILITYûAREûEXPECTEDûTOû
look back with satisfaction on a year of
record-breaking Additional Tier 1 supply.
But for investors, this year’s vintage poses
DIFlCULTûQUESTIONSû
Issuers from across Europe set new lows
for AT1 coupons as they made the most of
hot market conditions, printing some
€11.1bn in the single currency, while reset
LOWERûRESETûSPREADSû"UTûBYûDElNITIONûIFû
you come into a bout of higher volatility
with risk assets moving lower, those will
behave with a higher beta because of that
extension risk,” Stacey said. “We’re very
comfortable with the issuers we own and
the bonds we own … with the resets we
have and with owning those bonds into
be a feature of the coming year.
“One of the issues we’ve seen with
[AT1s with] low back ends in previous
cycles, in 2018 or during Covid, they tend
TOûGETûDESTROYEDûlRSTûANDûONLYû
outperform at the end of the recovery,”
said Romain Miginiac, head of research at
Atlanticomnium.
spreads were also at historically low levels.
TERMû
But when the tone turned sour, those deals
were hard hit in the secondary market, with
investors perceiving a higher risk that
issuers will keep them outstanding as cheap
perpetual capital rather than calling and
replacing them.
“Some of the recent vintage of AT1s are
MOREûVULNERABLEûTOûNOTûBEINGûCALLEDûINûlVEû
to 10 years’ time, so we’re being cautious,”
perpetuity.”
“So there is an opportunity for a number
of these bonds given the sell-off, because I
think over time spreads will continue to
compress, particularly versus lower Tier 2s.
That differential between AT1 and lower
Tier 2 shouldn’t be anywhere close to 290bp
[at current levels] if you think about the
inherent risks to each tranche.”
Bankers emphasised that non-call
h)TûISûDIFlCULTûESPECIALLYûFORûLONG
investors like us, to get performance from
those, as you need to time the market very
well, buying when they are getting
absolutely destroyed or buying at the end of
the recovery when they outperform, seeing
it as a beta trading instrument rather than a
long-term investment.”
AT1s priced at even lower spreads in early
2018 illustrate just how long the recovery
said Peter Stage, senior managing director,
Europe at EJF Capital.
A €750m perpetual non-call November
û,Aû"ANQUEû0OSTALEû!4ûISSUEûWASû
priced in September at 3% – an all-time
low in the euro market – and with a reset
SPREADûOFûBPûEXEMPLIlESûTHEûSTRUGGLESû
of some of the class of 2021 in the
secondary market. At the peak of last
decisions remain rare and said issuers prefer
TOûCALLûANDûRElNANCEûASûLONGûASûANYû
additional cost is manageable – sticking to
long-held convention.
“I think the majority of issuers would look
to call if it is within 50bp or so, but if it’s
triple digits you’ve got to consider the
economics ... and regulators have to have
their say,” said a DCM banker.
CANûTAKEû"ELlUSûFORûEXAMPLEûLANDEDûAû
€500m 3.625% PNC2025 AT1 with a 293.8bp
reset in January 2018. The bond has
languished below par for most of its life,
only trading above par for a brief spell
between late July and September this year.
More broadly, participants are upbeat on
the prospects for the AT1 market and
investors cite multiple reasons to keep
MONTHSûVOLATILITYûTHEûDEALûWASûQUOTEDûATû
a yield of 4.52% and a cash price of 90.80,
according to Tradeweb.
OPPORTUNITY BECKONS?
Some investors saw buying opportunities in
the widening, and prices have come back in.
DISCERNING AND SOPHISTICATED
But in spite of the recent repricing, there are
still reasons for caution around 2021’s low-
reset bonds, in particular given more
3.625% BELFIUS AT1 FALLS BACK BELOW PAR
buying the asset class in 2022.
Stacey said that in a year of expected
higher volatility and rising rates, BlueBay
will be cautious on taking a lot of credit risk,
DURATIONûRISKûORûLIQUIDITYûRISK
In that context, the European AT1 space
still presents a big opportunity, he said,
,Aû"ANQUEû0OSTALESûDEALûFORûEXAMPLEûWASû
Bid price
bid at 4.08% a cash price of 93.30 on
Thursday.
The yield of the Bank of America CoCo
index hit a 2021 high of 4.21% on November
26 but has fallen back to 3.77%, still some
way off the record low of 3.24% reached in
early August.
providing investors stick to national
110
champions and systemically important
banks, whose capital positions have only
100 grown stronger during the pandemic era –
with CET1 ratios at all-time highs.
90 AT1s also offer relatively low duration risk
due to their call structures and, with a deep
80
and diverse buyer base, the product’s
Marc Stacey, senior portfolio manager at 70 LIQUIDITYûHASûBEENûPROVENûINûTIMESûOFûSTRESSû
BlueBay Asset Management, said that while Stacey said.
the new generation of low-coupon, low- 60 Investors and bankers also expect tight
reset AT1s comes with a higher extension valuations to be supported by negative net
50
RISKûTHOSEûLOWERûLEVELSûAREûJUSTIlEDûTOûAû AT1 supply next year, particularly after
30/01/18

31/01/19

31/01/21
30/04/18
31/07/18
31/10/18

30/04/19
31/07/19
31/10/19
31/01/20

31/07/20

30/07/21
30/04/21
30/10/20

31/10/21
30/04/20

large degree by banks’ huge buffers over SOMEûISSUERSûRElNANCEDûûCALLSûALREADYû

Maximum Distributable Amount and this year.
coupon restrictions and triggers. Source: Refinitiv Eikon Tom Revell

International Financing Review December 11 2021 19

PE cash stash to trigger wave of WEEK IN NUMBERS
‘super-jumbo’ buyouts 1.537%
Private equity set to turn to debt market to fund bids  DAY BEFORE’S LOW AS INVESTORS WEIGH
%UROPESûLEVERAGEDûlNANCEûHEADSûSAYûTHEYû
expect the market to be supportive for the
return of “super-jumbo” leveraged buyouts
next year, which are expected to pick up
despite potential challenges around new
Covid-19 variants and central bank rate
hikes.
"ANKERSûSAYû53ûPRIVATEûEQUITYûGROUPû++2Sû
õBNûlNANCINGûPACKAGEûBACKINGûITSû
„ THE YIELD ON 10-YEAR TREASURIES AS
OF DECEMBER 8, 11bp HIGHER THAN THE
VACCINE BOOSTERS VERSUS THE SPREAD
banks cutting back on asset purchases. OF THE OMICRON VARIANT
%
And while bankers say that they expect
1.8
the market to continue to be supportive,
1.7
PRIVATEûEQUITYûSPONSORSûMAYûFACEûSOMEû
1.6
constraints on the size of the debt
1.5
packages for the deals they are targeting.
1.4
1.3
NOT JUST DEBT
1.2
“The constraints on [the mega-buyouts]

1/9/21
8/9/21
15/9/21
22/9/21
29/9/21
6/10/21

20/10/21

1/12/21
8/12/21
13/10/21

27/10/21
3/11/21
10/11/21
17/11/21
24/11/21
proposed buyout bid for TELECOM ITALIA could REALLYûWILLûBEûTHEûAMOUNTûOFûEQUITYûTHATûWILLû
trigger a wave of similar blockbuster deals in need to come into them,” said Henrik
ûASûPRIVATEûEQUITYûBUYERSûLOOKûTOûDEPLOYû
their vast piles of capital and corporates
strive for growth.
“There will be more super-jumbo
buyouts,” said Daniel Rudnicki
Johnsson, co-head of investment banking at
Deutsche Bank. “There is simply no more
leverage available given the regulation that
is out there – but also in terms of what the
–1.06%
„ THE YIELD ON 10-YEAR TREASURY
market can absorb. I don’t think you could INFLATION-PROTECTED SECURITIES
3CHLUMBERGERûCO
HEADûOFûLEVERAGEDûlNANCEû see a €40bn debt issuance being absorbed by ON THURSDAY, INDICATING THAT
FORû%-%!ûATû*0û-ORGANûh0RIVATEûEQUITYûFUNDSû the [euro] market today – it would be too THE 10-YEAR BREAKEVEN RATE WAS
HAVEûUNMATCHEDûlREPOWERûANDûTHEûDEBTû large.” ROUGHLY 2.55%
MARKETûCANûSUPPORTûõBN
PLUSûlNANCINGû To that end, a lot of these mega-deals are %
0
packages across the euro and dollar markets, expected to be backed by cross-border –0.2
as well as the bond and loan markets.” lNANCINGûPACKAGESûSAIDûBANKERSû –0.4
Rudnicki Schlumberger, who co-heads the “In addition to the recent rapid growth in –0.6
53ûBANKSûLEVERAGEDûlNANCEûBUSINESSûWITHû THEûSIZEûOFûTHEû%UROPEANûLEVERAGEDûlNANCEû –0.8
–1.0
Ben Thompson, says the bank’s pipeline is as market, one of the reasons that we are able
–1.2
active as it has ever been, with the desk to see these larger deals for European –1.4
1/9/21
8/9/21
15/9/21
22/9/21
29/9/21
6/10/21

20/10/21

1/12/21
8/12/21
13/10/21

looking at very large situations for the
beginning of next year.
“This is the time of the cycle when you
can do €10bn to €20bn to even €40bn
buyouts, as long as current conditions last,”
said Rudnicki Schlumberger.
The driver of the potential buyout
bonanza is the sheer amount of cash held by
PRIVATEûEQUITYûFUNDSûnûTHEûUPSHOTûOFûOVERûAû
DECADESûWORTHûOFûQUANTITATIVEûEASINGû
Global buyout funds were sitting on a record
US$2.74trn in assets under management as
27/10/21
3/11/21
10/11/21
17/11/21
24/11/21
companies is that the US investor base is
always looking for new opportunities in the
global debt market,” said Thompson. “The
US dollar market unlocks huge amounts of
capital for deals – and we’ve already seen
THATûMARKETûmEXINGûITSûMUSCLESûONûTHEû
US$57bn
„ THE AMOUNT OF US HIGH-GRADE
Medline deal.” CORPORATE BOND ISSUANCE THIS MONTH
US investors snapped up almost AS OF DECEMBER 7, SETTING A NEW
US$15bn of high-yield bonds and loans in RECORD FOR SUPPLY FOR THE MONTH.
September to back medical product IT SURPASSED THE US$56bn OF SUPPLY
company Medline’s US$34bn leveraged IN DECEMBER 2014
buyout by Blackstone, The Carlyle Group
OFû1ûûACCORDINGûTOû0REQUINûDATAûWHICHû
has already led to record M&A volumes this
year.
h!LLûLARGEûPRIVATEûEQUITYûFUNDSûAREûTRYINGû
to deploy cash and are looking for situations
where they can put money to work,” said
Rudnicki Schlumberger. “There are only two
kinds of transaction for that: super-large
corporate disposals or take-privates.”
Just like this year, bankers are expecting
most buyout activity to take place in
technology and healthcare, two of the most
resilient sectors of the economy during the
pandemic.
However, capital markets execution is
not expected to be as simple as it has been
over the past year, with 2022 likely to
present challenges in the form of
and Hellman & Friedman. The deal was
the biggest leveraged buyout in the US
SINCEûTHEûûlNANCIALûCRISIS
Still, while bankers say they still have
US$32bn
„ THE AMOUNT OF ORDERS
appetite for taking on underwriting risk, PHARMACEUTICAL MERCK GOT FOR AN
desks are cognisant that there are a lot of US$8bn FIVE-PART DEAL ON TUESDAY
potential factors to trigger volatility. With AS IT RAISED FUNDS TO SUPPORT ITS
that in mind, they say they will be ACQUISITION OF ACCELERON
approaching deals with longer lead times
with some caution.
“We will be more thoughtful around how
long potential commitments might be on
our books, and how we structure those
€590m
„ THE AMOUNT OF CORPORATE BONDS
commitments – the longer you’re exposed to THE ECB BOUGHT (NET) IN THE WEEK
the market, the higher the chance that TO DECEMBER 3 AS PART OF ITS CSPP
another variant will emerge or that a COMPARED WITH THE €185m IT SOLD THE
different macro factor will introduce market WEEK EARLIER
volatility,” said Thompson. In total, it has bought €309.208bn since
INmATIONûPOTENTIALûLOCKDOWNSûANDûCENTRALû Eleanor Duncan the programme began in 2016

20 International Financing Review December 11 2021

 BONDS SSAR

“This is the second step in the process. For these PSI bonds and exchanged them into
SSAR
EUROS
GREECE SET TO END IMPRESSIVE YEAR
WITH LME
GREECE has announced the terms of a debt
exchange as the sovereign seeks to round off
an impressive year in capital markets with a
deal that will tie up some of the few
remaining loose ends from its turbulent
period during the eurozone debt crisis.
“It is a great opportunity for investors that
HAVEûBEENûHOLDINGûEXTREMELYûILLIQUIDûSECURITIESû
THEûlRSTûLIABILITYûEXERCISEûTHEYûBOUGHTûBACKû BIGGERûLINESû3UBSEQUENTLYûTHEYûHAVEû
a large chunk of this PSI stuff, which had concentrated on single lines and looked to
been created by the exchange of the old bring them up to €5bn–€6bn sizes.”
Greek bonds for new ones for the private The previous exchange also occurred
sector,” said the lead. towards year-end, in late November 2017,
“Since the previous liability exercise, but the timing of the latest offer is not based
there has been just over €4bn outstanding of on seasonality, according to the lead.
these PSI bonds. In most cases, they are “Supply from elsewhere or how the
relatively small leftovers, like market looks otherwise is not really a big
€150m–€250m per maturity year, and consideration. It is more a consideration of
THEREFOREûEXTREMELYûILLIQUIDv whether you want to get out of that sort of
BNP Paribas, Deutsche Bank, Goldman Sachs, STUFFûTHATûISûEXTREMELYûILLIQUIDûORûWHETHERû
HSBC, JP Morgan and Piraeus Bank are joint you don’t want to,” he said.
dealer-managers. “Generally, it is positive doing it late in
The bonds have maturities in every single the year, as people don’t have much else to
year from 2023 to 2042 and can be do. At the same time, if they had done it one
exchanged for existing euro-denominated or two months ago, it would probably have
TOûGETûOUTûANDûEXCHANGEûINTOûLIQUIDûON
THE
RUNû benchmarks – a 2% April 2027 note issue, a offered the same dynamics to the investors.”
bonds,” said a lead on the exchange. 3.9% January 2033 note issue, a 4% January The invitation was extended on December
Greece has recorded several notable 2037 note deal and a 4.2% January 2042 note 6 and had a 5pm CET December 10 deadline.
highlights in 2021, raising some €14bn offering. A cash consideration is also
across six successful syndications, landing a available for the outstanding 2023, 2024 and BANKERS LAUD ESM MOVE TO MORE
lVE
YEARûWITHûAûûCOUPONûPRICINGûAûû
10-year tap through Italy and bringing its
longest deal tenor in 15 years – a wildly
popular 1.875% 2052 note offering. There is
little doubt the sovereign has now
completed its rehabilitation story with
international investors and the latest move
2025 PSI paper, as well as for US FLEXIBLE APPROACH
bondholders of the 2042s.
The decision made by the EUROPEAN STABILITY
NORMALISING THE CURVE MECHANISM and the EUROPEAN FINANCIAL STABILITY
“It is in order to give investors the chance to FACILITY to ditch issuance windows and take a
get out of these bonds, which have hardly MOREûmEXIBLEûAPPROACHûTOûISSUANCEûWASû
any trading in them. Talking to our traders, lauded by bankers last week.
is merely the icing on the cake. THEYûHAVEûBEENûEXTREMELYûILLIQUIDûINûSOMEû A calendar of potential issuance weeks
The exchange and tender offer relates to cases trading with 50bp bid/offer spreads. FORûTHEûSUCCESSIVEûQUARTERûHASûBEENû
THEûREMAININGûILLIQUIDû03)ûBONDSûTHEû
majority of which were retired just over
four years ago via a liability management
exercise when €25.47bn, or 86.1%, of those
outstanding were swapped for new
benchmark notes.
So, for someone wanting to get out of this, it published since 2012 in an effort to
is a really good opportunity,” said the lead. provide a greater degree of transparency –
“This follows on from the attempt in 2017 something that was particularly
to normalise the curve. They wanted to have important in the euro SSA space following
larger bonds in terms of size and less bonds the European sovereign debt crisis a
in terms of number, so they bought back decade ago.

ALL INTERNATIONAL GREEN BONDS ALL INTERNATIONAL BONDS (ALL CURRENCIES) ALL BONDS IN EUROS
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 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 JP Morgan 150 26,411.23 7.2 1 JP Morgan 1,758 415,816.01 8.5 1 BNP Paribas 520 117,352.42 8.2
2 BNP Paribas 126 25,471.41 6.9 2 Bank of America 1,361 332,315.51 6.8 2 JP Morgan 402 92,081.56 6.4
3 Credit Agricole 105 22,537.24 6.1 3 Citigroup 1,340 327,124.86 6.7 3 Deutsche Bank 359 85,066.95 5.9
4 Citigroup 117 21,547.43 5.9 4 Goldman Sachs 1,055 269,999.93 5.5 4 Barclays 311 77,584.82 5.4
5 Deutsche Bank 102 19,726.72 5.4 5 Barclays 1,116 250,919.75 5.1 5 Credit Agricole 344 73,855.88 5.1
6 HSBC 116 19,048.51 5.2 6 Deutsche Bank 994 235,264.31 4.8 6 Societe Generale 284 69,938.78 4.9
7 Bank of America 103 18,154.84 4.9 7 BNP Paribas 1,024 230,132.11 4.7 7 HSBC 339 69,180.23 4.8
8 Barclays 78 13,798.68 3.8 8 Morgan Stanley 869 229,657.57 4.7 8 Bank of America 257 67,526.80 4.7
9 NatWest Markets 47 10,557.29 2.9 9 HSBC 1,045 217,613.62 4.5 9 Goldman Sachs 270 64,360.15 4.5
10 Goldman Sachs 65 10,489.80 2.9 10 Credit Suisse 760 136,770.58 2.8 10 UniCredit 303 63,963.50 4.5
Total 548 367,370.57 Total 6,687 4,878,027.86 Total 1,786 1,434,545.80
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 DECEMBER 10 2021

Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover
Nov 30 2021 Italy €2bn 0 Aug 1 2026 0.19 1.52
Dec 7 2021 Netherlands €2.1bn 2 Jul 15 2024 -0.688 –
Dec 7 2021 UK £1.5bn 1.25 Jul 31 2051 0.871 2.42
Dec 7 2021 Germany €3.277bn 0 Dec 15 2023 -0.71 1.4
Dec 8 2021 Germany €2.497bn 0 Aug 15 2031 -0.38 1.3
Source: IFR

International Financing Review December 11 2021 21

 However, as of next year, ESM/EFSF will
no longer communicate execution windows
for potential issuance in advance, a move
that is intended to provide the duo with a
GREATERûDEGREEûOFûmEXIBILITYûINûCOMINGûTOû
market.
“It is a good move and makes a lot of
sense,” said a banker. “If you continue to
publish these windows, it is restrictive and
REDUCESûTHEûmEXIBILITYûTOûSELECTûMOREû
favourable windows. At the end of the day, it
is taxpayer money too, so you should be
looking at savings where possible.”
Since 2018, when its last programme
concluded, ESM and EFSF funding activity
has been reduced to the rollover of existing
responsibilities and tasks. With this in mind,
we will stop publishing potential windows
for bond issuance,” continued Weiss, who
was appointed as head of funding and
investor relations in September.
MAKING WAY FOR NGEU
The size of its funding operations and the far
more benign market backdrop in recent
years has reduced the need for the
additional communication, and scrapping
issuance windows will leave the calendar
completely clear for the much larger NGEU,
which adopted the strategy recently.
“The European Union have taken their
place, really, but it makes sense as the EU
“They are not a really big issuer any more,
demonstrated by fact that it is possible for
them to come intraday. As a huge issuer that
needs to do size, you can’t come intraday,”
said the banker.
Annual funding targets for bond issuance
will still be announced and there remains an
aim to issue on all parts of the curve.
Auction dates for bill issuance will
continue to be announced. These will now
be for the next six months instead of per
QUARTER
The Luxembourg-based institution
celebrated its 10-year anniversary earlier
this year, with the landmark coinciding with
a big change in its remit. Subject to the
debt. They now plan to issue around €20bn– programme is so big they should take COMPLETIONûOFûTHEûRATIlCATIONûPROCESSûITûWILLû
€25bn in combined rollover debt each year priority. If the EU announce issuance take on new responsibilities linked to bank
for the foreseeable future.
“As we approach the new year, the ESM is
evolving and our funding operations will
REQUIREûNEWûDIMENSIONSûOFûmEXIBILITYû!ûNEWû
mandate established by the ESM reform will
lead to a broader mission for the institution
WINDOWSûTOûTHEûMARKETûITûISûBENElCIALû
because other issuers can avoid them,” said
a banker.
“Announcing windows can often work
against you if you are not that big an issuer. You
LOSEûmEXIBILITYûANDûCANûBEûFORCEDûTOûCOMEûWHENû
resolution and economic monitoring. The
transformation will leave it looking more
like a European version of the International
Monetary Fund, with a vastly expanded
mandate.
h/NCEûTHEûRATIlCATIONûPROCESSûOFûTHEû
THATûREQUIRESûNEWûWAYSûOFûTHINKINGvûSAIDû the market is not as conducive, which means amended ESM Treaty has been completed,
Silke Weiss in an ESM/EFSF investor you end up paying a higher concession.” the ESM will become the backstop to the
newsletter. In 2021, the six transactions from the Single Resolution Fund, making it the last
“Going forward, adaptability will be EFSF and the three from ESM came intraday resort safety net. The support provided will
crucial in the execution of our new on a Monday. be aligned to the size of the SRF, up to a

ALL US DOLLAR FIXED-RATE GLOBALS ALL INTERNATIONAL US$ BONDS ALL SOVEREIGN BONDS IN EUROS
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 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 JP Morgan 288 85,843.80 10.8 1 JP Morgan 1,209 284,072.20 10.3 1 JP Morgan 45 27,420.00 10.8
2 Bank of America 283 80,420.48 10.1 2 Citigroup 1,011 238,400.53 8.7 2 BNP Paribas 42 22,266.95 8.8
3 Citigroup 235 78,839.28 9.9 3 Bank of America 1,034 233,818.53 8.5 3 Citigroup 30 18,318.30 7.2
4 Morgan Stanley 155 54,989.06 6.9 4 Goldman Sachs 758 183,492.57 6.7 4 Barclays 25 16,922.58 6.7
5 Goldman Sachs 153 50,715.97 6.4 5 Morgan Stanley 615 156,274.51 5.7 5 Deutsche Bank 25 16,469.33 6.5
6 Barclays 131 39,639.77 5.0 6 Barclays 669 133,268.44 4.8 6 Credit Agricole 24 15,448.36 6.1
7 Wells Fargo 186 38,470.23 4.8 7 Deutsche Bank 558 117,174.74 4.3 7 UniCredit 18 14,854.69 5.9
8 Deutsche Bank 93 37,745.65 4.8 8 Wells Fargo 614 113,175.26 4.1 8 Bank of America 21 13,588.02 5.4
9 TD Securities 86 29,626.81 3.7 9 HSBC 513 101,891.30 3.7 9 Societe Generale 17 12,909.53 5.1
10 HSBC 68 27,223.49 3.4 10 Credit Suisse 551 101,187.92 3.7 10 HSBC 18 12,259.54 4.8
Total 523 793,909.38 Total 3,431 2,748,932.13 Total 95 253,313.47
Excluding equity-related debt, ABS/MBS. Including Euro, foreign and global issues. Excluding equity-related debt, Excluding ABS/MBS.
US Global ABS/MBS.
Source: Refinitiv SDC code: O5 Source: Refinitiv SDC code: O1 Source: Refinitiv SDC code: N4

ALL AGENCY BONDS IN EUROS ALL SUPRANATIONAL BONDS IN EUROS MUNICIPAL, CITY, STATE, PROVINCE ISSUES IN EUROS
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues €(m) (%) bank or group issues €(m) (%) bank or group issues €(m) (%)

1 BNP Paribas 41 15,017.50 10.6 1 Deutsche Bank 14 14,739.01 7.9 1 JP Morgan 23 5,023.99 14.1
2 Credit Agricole 37 11,478.74 8.1 2 Morgan Stanley 8 13,565.49 7.3 2 HSBC 25 4,407.55 12.3
3 JP Morgan 35 9,875.55 7.0 3 BNP Paribas 9 12,864.23 6.9 3 Deutsche Bank 20 3,319.83 9.3
4 Barclays 28 9,274.79 6.5 4 Goldman Sachs 12 12,247.01 6.6 4 UniCredit 13 2,827.41 7.9
5 HSBC 29 8,408.66 5.9 5 Bank of America 12 11,574.83 6.2 5 LBBW 15 2,779.83 7.8
6 Commerzbank 21 8,099.83 5.7 6 Barclays 12 11,360.24 6.1 6 Nord/LB 12 2,143.57 6.0
7 Deutsche Bank 23 7,983.60 5.6 7 Credit Agricole 15 10,657.60 5.7 7 Natixis 8 1,506.60 4.2
8 Goldman Sachs 22 7,928.18 5.6 8 DZ Bank 9 10,581.93 5.7 8 Credit Agricole 8 1,043.87 2.9
9 Bank of America 16 7,885.17 5.6 9 HSBC 16 10,345.68 5.5 9 DGZ-DekaBank 7 950.62 2.7
10 Natixis 18 7,822.25 5.5 10 UniCredit 9 9,414.89 5.0 10 TD Securities 4 941.90 2.6
Total 210 141,612.03 Total 70 186,958.65 Total 73 35,749.90

Excluding equity-related debt. Including publicly owned institutions. Excluding ABS/MBS. Excluding ABS/MBS.
Source: Refinitiv SDC code: N6 Source: Refinitiv SDC code: N5 Source: Refinitiv SDC code: N7

22 International Financing Review December 11 2021


nominal cap of €68bn,” Weiss said in the
newsletter.
SOVEREIGNS UNVEIL 2022 FUNDING
PLANS
A trio of sovereigns has announced their
funding plans for 2022, with BELGIUM and
IRELAND planning smaller issuance volumes
than some expected, while the €260bn OAT
target for FRANCE is unchanged from this
year and last.
Ireland’s plans come as the biggest
surprise of the three, with the National
Treasury Management Agency looking to
issue €10bn–€14bn next year, after raising
€18.5bn in 2021.
“Ireland’s plans are lower than market
expectations; they were seen announcing
something closer to €20bn,” said a banker.
“The news has helped Irish bonds to
perform and they have rallied today.”
Yields dropped across the curve for Irish
bonds on Thursday, with the biggest drop
seen in the 10-year, which by mid-
AFTERNOONûHADûFALLENûBYûBPûTOûBEûQUOTEDû
at 0.079%.
The NTMA will issue a statement at the
BEGINNINGûOFûEACHûCALENDARûQUARTERû
outlining the bond auction plans for that
period. It also intends to issue at least one
syndicated bond during the year.
“The reduced borrowing range for 2022
REmECTSû)RELANDSûIMPROVINGûlSCALûPOSITIONû
and our long-standing strategy of pre-
)NmATIONûHASûBECOMEûANûINCREASINGLYû
pressing theme in the second half of 2021.
Widely viewed metrics on price pressures
continued to come in well above central
BANKûTARGETSûDESPITEûINmATIONûBEINGûLABELLEDû
by many as transitory.
“We have consistently challenged the
transitory narrative from other economists
and central banks,” said Luigi Speranza,
chief global economist at BNP Paribas.
h/URûVIEWûISûTHATûHEADLINEûINmATIONûWILLû
slow next year but underlying price
PRESSURESûWILLûCONTINUEûTOûBUILDû)NmATIONûISû
partially supply driven but it is also due to
STRONGûDEMANDû)TûHASûLASTEDûSUFlCIENTLYû
long and been a sizeable enough shock to
trigger second-round effects, which means
there will be a more lasting effect.”
The longest new conventional OAT
planned for 2022 will be in the 20-year to 30-
year range.
CADES TARGETS SIMILAR FUNDING
LEVEL FOR 2022
CADES has announced a funding target of
€40bn in medium and long-term bonds in
2022, of which €35bn will be in social
format in euros, US dollars or sterling. The
amount is in line with earlier guidance and
follows €39.4bn of issuance this year.
It will be supplemented by the issuance of
DIVERSIlCATIONûBONDSûFORûANûAMOUNTûUPûTOû
€7bn, in the form of taps of existing bonds,
&RENCHûINmATION
BONDS CORPORATES
July 2020. The programme began with an
initial transfer of €20bn in the second half of
2020.
The amortisation objective voted for by
parliament as part of the Social Security
Financing Act for 2022 has been set at
€18.3bn for 2022, representing the largest
amount since its inception, with €17.4bn in
2021 and €16.7bn in 2020.
By year-end the agency will have
AMORTISEDûANDûRElNANCEDûõBNûOFûTHEû
€320.5bn of social debt assumed since its
inception.
The average maturity of its outstanding
debt has risen to 3.87 years, compared with
2.95 years in 2019, while the average
lNANCINGûRATEûHADûFALLENûTOûûBYû
November 30 2021, compared with 1.44% as
at December 31 2020 and 1.99% as at
December 31 2019.
CORPORATES
US DOLLARS
JUMBO M&A BONDS PUSH SUPPLY TO
RECORD
4WOûLARGEûACQUISITIONûlNANCINGSûFROMûMERCK
and ECOLAB led a crowded investment-grade
INDEXEDûBONDSûBONDSû primary market last week, helping to set a
funding liabilities,” said Frank O’Connor,
NTMA director of funding and debt
management, in a statement.
In 2021, the sovereign brought two
syndications: a €5.5bn long 10-year at the
start of January and a €3.5bn 20-year in
April.
h7ITHûONEûOFûTHEûLONGESTûMATURITYûPROlLESû
in Europe and lower redemptions over the
medium term, we have considerable
mEXIBILITYûINûMEETINGû)RELANDSûFUTUREû
denominated in non-strategic currencies or
private placements.
The French agency has brought 10 social
bond issues in 2021. Half of those were in US
dollars and raised a combined US$19.5bn.
Four euro transactions accounted for €18bn,
while a solitary a £1.5bn 0.125% December
2025 social note issue came early in the year.
4HEREûWEREûALSOûSEVENûDIVERSIlCATIONûBONDû
offerings – tap issues, private placements –
for a total of €3.4bn.
new record for high-grade bond supply in
the month of December.
As of Wednesday, investment-grade
corporate bond issuance this month hit
US$62.6bn, surpassing the US$56bn of
supply recorded in December 2014,
according to IFR calculations.
Execution for the M&A-driven jumbo
offerings was strong, suggesting demand
had recovered since the end of November.
Market participants had been wary of
BORROWINGûREQUIREMENTSvû/#ONNORûSAIDû
Though Belgium plans to increase its
2021 OLO funding target slightly to €41.2bn
from €39.3bn this year, the increase is less
than expected, according to a
Commerzbank research note.
"ELGIUMûHASûmAGGEDûTHREEûSYNDICATIONSû
ESG investors in particular largely
subscribed to the issues over the course of
the year, accounting for up to 45% of
allocations, according to lead manager
estimates.
“While the health context linked to the
Covid-19 epidemic continues to weigh
participating in the primary market after
some bond offerings priced before the
Thanksgiving holidays traded poorly on
the break. Easing concerns around the
Omicron variant’s economic impact
helped restore risk appetite, reversing
some of the widening in credit spreads in
for 2021, including a 10-year and a 30-year.
This year, it brought a €6bn 10-year in
PARTûSENIORû
January and €5bn 50-year in early February.
HEAVILYûONûSOCIALûSECURITYûlNANCESû#ADESûISû November.
paramount in the amortisation of social -ERCKûSOLDûANû53BNûlVE
debt in France,” said Jean-Louis Rey, unsecured note on Tuesday to support its
chairman of the Cades board of directors. US$11.5bn purchase of another
LINKER TARGET h)NûûOURûlNANCINGûANDûAMORTISATIONû pharmaceutical company, Acceleron,
There were no real surprises with the size of mechanisms have once again demonstrated drawing US$32bn of orders. New issue
France’s OAT target, but one thing of note their effectiveness by enabling the concessions ranged between 2bp and 3bp
WASûTHEûFOCUSûONûINmATION
LINKEDûBONDS assumption of €40bn of additional social for the tranches.
Approximately 10% of total issuance is debt.” &ORûITSûACQUISITIONûOFûRESINûMAKERû0UROLITEû
planned to be in linker format, with a The funding was part of the assumption water treatment specialist Ecolab raised a
potential new green linker in the 10-year to by Cades of €136bn of social debt, which US$2.5bn bond last Monday, backed by an
15-year range. was voted for by the French parliament in order book of US$8.25bn.

International Financing Review December 11 2021 23

 Newmont raises US$1bn with
transition ‘template’
„ CORPORATES Gold miner ties bond coupon to Scope 3 emissions
Colorado-based NEWMONT on Monday priced a
US$1bn offering of 10-year notes the coupon of
which is tied to gender diversity and – a rarity for a
precious-metal miner – its “entire carbon footprint”
including hard-to-measure Scope 3 emissions.
More companies in the so-called transition
sectors, such as mining, energy and
transportation, are seeking to tap the growing
market for sustainability-linked bonds. ESG-
focused investors have, at the same time, often
balked at the terms offering by companies in
sectors with poor environmental records, if they
expressed interest at all.
Emissions targets have not been ambitious
enough; penalties for missing them – like the
standard 25bp step-up – have not been steep
enough. As a result, the SLBs from high emitters
that have priced have often gone into portfolios
of their usual investors rather than those of the
growing crop of environmentally focused funds.
“The most important thing is for companies to
articulate decarbonisation related to their entire
carbon footprint,” said Scott Roose, global head
of ESG financing at Credit Suisse.
The Baa1/BBB rated gold producer’s first SLB
goes beyond many of the earlier bonds issued by
transition companies in this format. Its inclusion
of Scope 3 emissions – from activities not
owned or controlled by the issuer – in the bond
framework and a coupon step-up of as much as
60bp helped convince some ESG investors.
“I think the problem is that not many of these
companies have focused on Scope 3,” said
Market participants had been anticipating
SOMEûLARGEûACQUISITIONûlNANCINGûPACKAGESû
hitting the US primary sector. Banks were
under pressure to bring any M&A bonds to
avoid having to carry risk on their balance
sheets through the turn of the year. And
market volatility in late November made it
tricky to clear the decks before December
got underway.
“Banks taper [their balance sheets] before
going into year-end, so there’s [typically] not
a lot of supply in general sloshing around,”
said Adam Coons, portfolio manager at
Winthrop Capital Management.
M&A
The improvement in corporate balance
sheets and earnings throughout this year
has meant investors have been more
FORGIVINGûOFûDEBT
Roose, referring to earlier SLBs. “I would say
that at the beginning of the year, if you look at
the SLBs that have been done globally, there’s
been Scope 1 and Scope 2 and now you are
just starting to see Scope 3 absolute metrics
dovetailing with a net-zero focus – that’s where I
think the trend is going.”
That the Newmont bond’s targets were
backed by the Science Based Target initiative
(SBTi), which recommends including Scope 3 if
it is 40% or more of total emissions, also helped
attract investors. Newmont’s Scope 3 comprised
about 60% of total emissions, according to ISS
ESG, which provided the second-party opinion
for the deal.
Science-based targets, according to market
participants, will probably be requirements
for other transition issuers in the SLB market,
especially if they want to attract a greater
portion of ESG-focused money.
“The other element is having SBTi targets,”
Roose said. “Newmont is one of the only miners
globally to have this ambition. This adds validity
to the company’s pursuit of decarbonisation
emissions targets by 2030 and then net zero by
2050.”
Newmont priced a 2.6% bond to yield
2.611%, or 117bp over Treasuries, following
guidance in the area of plus 120bp. Credit
Suisse was SLB structuring adviser and,
along with BMO Capital Markets, Goldman
Sachs and JP Morgan, a joint bookrunning
manager.
down a build-up in leverage from a chunky
ACQUISITION
“M&A bond issues can go well, but
management has got to have credibility.
They’ve got to show they’ve cleaned up their
balance sheet before,” said a senior credit
analyst.
Indeed, Ecolab underlined its
commitment to cut down on its debt
following its purchase of Purolite, which is
expected to lift net leverage to 3.2 times
from two times, according to CreditSights.
The company said it would divert cash to
pay down incoming short-term maturities,
based on an investor presentation.
In the end, the willingness of investors to
absorb these large M&A bonds came down
to the vibrancy of primary markets and
cheap borrowing costs. Even after corporate
The offering did come with a discount for the
issuer, and while banks often use these savings
as one way to help convince issuers to come to
the ESG market, they are not usually the prime
reason a company is willing to do all the extra
paperwork required of sustainable debt.
“There was about a 5bp savings, but I
don’t think that is the key driver for why these
companies are doing ESG financings,” said Roose.
Savings aside, for companies such as
Newmont, an SLB also shows the market a
commitment to environmental and social issues
that have become much more important for all
kinds of investors over the past couple of years.
The deal specifically comes with three
performance targets, all with a 2030 deadline:
Newmont aims reduce Scope 1 and 2
greenhouse gas emissions 32% from a 2018
base; reduce absolute Scope 3 emissions, the
biggest portion of its footprint, 30% from 2019;
and have 50% representation of women in
senior leadership.
If the first two emissions targets are not met
and verified, the coupon increases 50bp, and if
the third is not met and verified, Newmont pays
another 10bp more.
“We advised them to have a substantial
step-up,” Roose said. “These targets are
important to Newmont, and they wanted to
make sure the structure was appropriate for the
investor community. This is an ideal template for
transitionary companies to follow for an SLB.”
Timothy Sifert
the debt may not have risen much, as they
were issuing new bonds when Treasury
yields remained historically low and credit
traded at tight spreads.
“The actual debt service is getting better
even as leverage is ticking up,” said Coons.
“It’s easier to manage debt loads when
capital markets are wide open. We joke that
you could probably issue debt at a lemonade
stand right now.”
WESTERN DIGITAL PIVOTS TO
UNSECURED DEBT
WESTERN DIGITAL made use of its freshly
minted investment-grade rating to sell a
new senior unsecured bond on Tuesday,
scrapping its earlier plans to sell a secured
note.
lNANCEDû-!ûESPECIALLYû debt levels swelled from the purchase of a 4HEûMAKERûOFûHARDûDRIVESûANDûmASHûDATAû
for companies with a history of whittling new business, their overall cost of servicing storage devices issued US$1bn of senior

24 International Financing Review December 11 2021


unsecured notes split evenly across a seven-
year and a 10-year tranche via Bank of
America, JP Morgan and MUFG. Strong demand
helped leads tighten pricing aggressively by
35bp for each tranche from initial thoughts,
eventually printing the notes at 145bp and
165bp over Treasuries, respectively.
Bookrunners, encouraged by the upward
trajectory of Western Digital’s credit rating,
pushed for an unsecured format.
YEARûNON
CALLûlVEû NextEra had already come to the
Western Digital initially marketed a
potential secured bond offering on its Friday
roadshow. But when the deal hit the
primary market, the company switched to
an unsecured bond instead after Fitch
upgraded it to BBB– from BB+ on Friday, said
a lead banker.
Fitch’s upgrade put the company solidly
in investment-grade bond indices, as
Moody’s had already given the company a
Baa3 rating, with only S&P leaving Western
Digital at junk.
“We think an unsecured bond deal makes
more sense given the company’s desire to
strengthen its balance sheet, particularly as
its entire structure will now be unsecured
and its bonds will be in IG indices,” said
CreditSights analysts. “The switch to an
unsecured bond deal is also favourable for
the existing notes, since they will no longer
BEûLAYEREDûBEHINDûAûSIGNIlCANTûAMOUNTûOFû
secured debt.”
Western Digital will pay down a chunk of
its nearly US$4.3bn term loan A with the
proceeds from the new bond. It is also
replacing the remainder of its term loan A
with a new US$3bn term loan B maturing in
2027.
The company had also triggered
provisions on a loan agreement to change its
outstanding US$944m term loan B into
unsecured obligations, removing all secured
instruments from its capital structure,
ACCORDINGûTOûAûCORPORATEûlLINGûFROMû-ONDAYû
The move would give Western Digital the
NEXTERA’S HYBRID RIDES RISK-ON
REVIVAL
NEXTERA ENERGY came to the investment-grade
primary market for the second time last
week with a new hybrid offering amid
renewed appetite for riskier debt
instruments.
Out of its holding company, the utility
PRINTEDûAû53Mû
subordinated junior note on Thursday at
3.8%, moving sharply in from initial price
thoughts of the 4.375% area. Bookrunners
were Barclays, BNP Paribas, Citigroup, Credit
Agricole, Morgan Stanley, RBC Capital Markets
and Wells Fargo.
“It’s one of the biggest moves we’ve seen
from where we’ve started [in price thoughts]
to where we’ve landed,” said a lead banker.
NextEra came tighter than a recent batch
of new corporate hybrids. On Tuesday,
property investor BROOKFIELD landed a
US$260m perpetual hybrid note at 4.875%
through its Canadian holding entity. Other
borrowers including British
Telecommunications, DTE Energy and
Sempra Energy jumped into the market in
November, all printing above 4%.
Strong execution in NextEra’s new
OFFERINGûREmECTEDûHOWûWANINGûCONCERNSû
around the Omicron variant aided the
performance of riskier debt instruments last
week, with credit spreads reversing some of
the widening seen at the end of November.
HUNGRY FOR HYBRID
The paucity of preferred notes and
corporate hybrid structures that carried
investment-grade ratings also helped to
attract yield-starved investors with high-
grade mandates that were otherwise fenced
out of those markets.
“When you’ve got a good corporate credit
going way out in the curve and into
subordinated debt, that incremental yield
BONDS CORPORATES
Bolstering its popularity among the
buyside, NextEra is ploughing billions into
the build-out of renewable energy
infrastructure across the US, making it one
of the highest rated utilities on ESG scoring
frameworks.
“It’s a good energy transition story.
$ElNITELYûAHEADûOFûJUSTûABOUTûALLûLARGEû53û
utilities,” said an investor.
investment-grade bond market earlier with
a US$2.5bn senior unsecured deal on
Tuesday. Funds raised from the new
corporate hybrid and senior notes will help
take out senior debt maturing between 2022
and 2026 and junior notes coming due in
2076.
The utility is expected to lean heavily on
capital markets next year, as it signalled it
would spend around US$60bn on capital
expenditures in the four years through
2022, 57% of which will go towards
renewable energy projects. Yet this deluge of
debt issuance is likely to be offset by the
utility’s prudence, in the eyes of debt
investors, in raising funds with plenty of
new stock and issuance of hybrid debt
instruments, said CreditSights. Around 56%
of the company’s capital structure is
COMPOSEDûOFûEQUITY
h4HEYûDElNITELYûHAVEûBEENûBONDHOLDER
friendly, which really is to their advantage
in the long run, since it is a very capital-
intensive business and cost of debt capital
really matters,” said the investor.
EUROS
NTT TAKES THE PLUNGE
NTT FINANCE decided to pull the trigger on a
much-awaited €1.5bn dual-tranche green
bond issue last Monday, having been kept on
the sidelines by market volatility for almost
mEXIBILITYûTOûRAISEûSECUREDûlNANCINGûINûTIMESû they offer to the marketplace gets sucked up THREEûWEEKSûSINCEûlRSTûANNOUNCINGûTHEûDEALû
of distress. in this environment,” said the banker. on November 12.

ALL INV-GRADE US CORPORATE BONDS ALL US INVESTMENT GRADE CORPORATE DEBT ALL CORPORATE BONDS IN EUROS
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 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 Bank of America 99 17,301.34 10.8 1 JP Morgan 604 178,808.37 12.4 1 BNP Paribas 252 33,320.54 8.3
2 JP Morgan 104 16,990.14 10.6 2 Bank of America 581 166,201.21 11.6 2 Deutsche Bank 174 24,993.38 6.2
3 Citigroup 74 13,053.11 8.1 3 Citigroup 487 133,190.19 9.3 3 JP Morgan 175 23,849.11 5.9
4 Goldman Sachs 57 10,700.52 6.7 4 Goldman Sachs 348 122,301.75 8.5 4 Citigroup 134 20,324.61 5.0
5 Wells Fargo 87 9,408.34 5.9 5 Morgan Stanley 329 94,639.39 6.6 5 Bank of America 122 20,322.68 5.0
6 Barclays 49 9,057.04 5.6 6 Wells Fargo 385 72,417.00 5.0 6 HSBC 141 18,327.23 4.5
7 Morgan Stanley 62 8,545.69 5.3 7 Barclays 248 60,737.61 4.2 7 Societe Generale 121 17,742.76 4.4
8 Deutsche Bank 35 8,278.70 5.2 8 Deutsche Bank 177 53,895.47 3.7 8 Credit Agricole 149 16,792.18 4.2
9 Mizuho 40 7,175.55 4.5 9 HSBC 152 45,896.86 3.2 9 Goldman Sachs 134 16,390.62 4.1
10 MUFG 44 7,125.81 4.4 10 MUFG 209 45,123.37 3.1 10 Morgan Stanley 103 15,532.89 3.9
Total 241 160,616.15 Total 1,242 1,437,323.81 Total 577 403,203.38
Excluding equity-related debt, ABS/MBS, all foreign issues, global issues Excluding equity-related debt. FIGs, ABS/MBS.
and non corporates.
Source: Refinitiv SDC code: F6a Source: Refinitiv SDC code: F9 Source: Refinitiv SDC code: N8

International Financing Review December 11 2021 25

 Given how much spreads had widened
SINCEûTHEûPOTENTIALûDEALûWASûlRSTûmAGGEDûTOûTHEû
market, there was some speculation that the
issuer, which multiple bankers described as
being particularly price-sensitive, would
shelve the new issue until the new year.
But with rates relatively low and broader
markets fairly stable last week, the issuer
(rated A by S&P) decided to take the plunge,
given the expectation that while new issue
concessions may come down at the start of
2022, rates are likely to be going up.
“They had been monitoring the market
and they saw over the last couple of sessions
the market looking a bit more stable and
constructive,” said a banker at one of the
leads. “They knew what was achieved and
they decided to go.”
Rival bankers also seemed to agree that
issuing now, rather than delaying, was the
right choice.
And the company, which acts as the
INTERNATIONALûlNANCINGûANDûLEASINGûARMû
of Japan’s Nippon Telegraph and
Telephone, was rewarded with a
substantial book. Orders for the €650m
four-year senior unsecured tranche
peaked at €3bn, while the €850m seven-
year tranche saw demand in excess of
€3.5bn.
The issuer was also able to partially avoid
THEûSIGNIlCANTûPREMIUMSûTHATûISSUERSûATûTHEû
end of November were paying to access the
market. Prior to last Monday, some bankers
had suggested that it would not be
surprising to see NTT paying concessions of
over 20bp.
In the end, spreads on the two tranches
were set at 27bp and 45bp versus mid-swaps,
representing new issue premiums of 1bp-
2bp and 10bp, based on the estimates of
SYNDICATEûOFlCIALSûINVOLVEDûINûANDûAWAYû
The issuer and the deal had a number of
factors working in its favour. It features
green use-of-proceeds and this was the
BORROWERSûlRSTû%3'ûOUTINGûINûTHEû%UROPEANû
market; the issuer is both well rated and
rare in the euro market; and in absolute
terms the spread it was offering, given its
ratings, was decent.
In a sign of the extent to which market
conditions had shifted during the three
weeks the issuer had been waiting to issue,
NTT’s curve had widened meaningfully
since mid-November, especially at the short
end.
When leads announced pre-
announcement comparables on November
12, they highlighted a €1bn 0.01% March
2025 issue and a €1bn 0.342% March 2030 at
5bp and 27bp. These same bonds were seen
at 24bp and 38bp at the start of last week.
h9OUûHAVEûINmATIONû/MICRONûANDûMOREû
hawkish central banks,” said one syndicate
banker away from the deal. “You can totally
understand a scenario where an issuer is
looking at the market and thinking that
rates remain relatively low, but aren’t going
to be for very much longer, so go now.”
ALL INVESTMENT-GRADE BONDS IN EUROS
from the transaction. ORANGE JUMPS IN AHEAD OF JANUARY
“This deal ticks a lot of boxes,” said the RUSH
lead. “Just because you have had two or
three weeks of market instability, it doesn’t French telecoms operator ORANGE decided to
mean investors shy away from the things bring forward a new issue and tap into the
that they have been looking for for most of primary last Tuesday, rather than wait until
this year.” January, when heavy supply means that
borrowers are often jostling for the
ALL CORPORATE BONDS IN STERLING attention of investors.
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE /NLYûAûDAYûBEFOREûTHEûlNANCINGûARMûOFû
Managing No of Total Share Managing No of Total Share Japan’s Nippon Telegraph and Telephone
bank or group issues €(m) (%) bank or group issues £(m) (%) demonstrated that although it is late in the
1 BNP Paribas 372 94,985.13 8.1 1 Barclays 51 4,955.41 16.8 year, accounts are still there for new issues,
2 JP Morgan 280 76,560.00 6.5 2 HSBC 35 3,321.08 11.3 even at relatively limited premiums,
3 Deutsche Bank 237 66,792.73 5.7 3 NatWest Markets 29 2,696.50 9.1 providing the credit and product are right.
4 Credit Agricole 254 64,889.41 5.5 4 Lloyds Bank 31 2,481.83 8.4 /RANGEû"AA"""""" ûCLEARLYûlTSûTHEû
5 Barclays 211 60,905.71 5.2 5 BNP Paribas 21 1,760.68 6.0 bill. Its €1bn 12-year senior unsecured
6 HSBC 259 60,117.82 5.1 6 Goldman Sachs 17 1,271.56 4.3 amassed orders of over €5.5bn, with leads
7 Societe Generale 219 59,034.67 5.0 7 Santander 12 1,234.69 4.2 THENûABLEûTOûlXûTHEûSPREADûATûBPûFORûAû
8 UniCredit 207 53,954.39 4.6 8 Bank of America 15 1,231.07 4.2 concession of just 5bp.
9 Bank of America 169 53,407.48 4.6 9 RBC 14 1,175.52 4.0 “Investors’ cash positions continue to be
10 Citigroup 190 49,391.66 4.2 10 Morgan Stanley 12 1,090.21 3.7 ROBUSTûANDûNEWûISSUEûSUPPLYûINûTHEûlNALû
Total 1,329 1,170,824.15 Total 86 29,515.32 couple of weeks of the year is low,” said one
Excluding ABS/MBS, equity-related debt. banker involved, as an explanation for why
Source: Refinitiv SDC code: N9 Source: Refinitiv SDC code: N8a the issue was so sought-after.
In addition, Orange is a well-known and
ALL INTERNATIONAL STERLING BONDS ALL SWISS FRANC BONDS INCLUDING liked credit that does not actually appear in
EXCLUDING SECURITISATIONS SECURITISATIONS the market that often. The issuer has raised
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE €2bn in the primary this year, although
Managing No of Total Share Managing No of Total Share €500m of that was subordinated debt.
bank or group issues £(m) (%) bank or group issues SFr(m) (%) “The [new issue] was actually more
1 HSBC 111 17,613.96 11.3 1 Credit Suisse 131 13,907.03 26.7 planned for early 2022,” said a second
2 NatWest Markets 110 16,745.52 10.7 2 UBS 108 10,927.38 21.0 banker at one of the leads. “But they just
3 Barclays 123 16,481.50 10.6 3 Verband Schweiz 18 7,044.73 13.5 wanted to ride the NTT momentum and do
4 RBC 70 9,908.32 6.3 4 ZKB 68 5,924.73 11.4 THISûNOWûINûAûQUIETERûMARKETûVERSUSûWHATûISû
5 JP Morgan 46 9,650.46 6.2 5 Raiffeisen 43 3,980.73 7.7 expected to be a busy January.”
6 BNP Paribas 46 8,403.69 5.4 6 Deutsche Bank 29 2,827.00 5.4 Bankers have been debating since
7 Deutsche Bank 44 8,231.94 5.3 7 BNP Paribas 13 1,547.98 3.0 November whether to get clients to go into a
8 Lloyds Bank 60 8,046.92 5.2 8 Commerzbank 14 1,136.65 2.2 market that has, until this week, demanded
9 Nomura 26 7,551.00 4.8 9 Basler KB 11 727.91 1.4 some steep premiums, at least at the start,
10 Bank of America 47 7,420.99 4.8 10 SKB Banka 3 610.74 1.2 or hold off until January. While premiums
Total 309 156,044.27 Total 245 51,996.31 may be lower then, rates could well be
Including preferreds. Excluding equity-related debt. Including preferreds. Excluding equity-related debt. higher and there would be considerable
Source: Refinitiv SDC code: K05a Source: Refinitiv SDC code: K06c competing supply.

26 International Financing Review December 11 2021


With concessions now falling, the balance
of things may be changing, though in a sign
RATEûRATEûSENIORûUNSECUREDûNOTEû
THATûSYNDICATEûOFlCIALSûSTILLûNEEDûTOûBEûCAREFULû
about the way they approach the market,
Orange’s IPTs of 80bp–85bp incorporated a
starting concession of 30bp–35bp.
That was broadly in line with what was seen
at the end of November, when syndicate
OFlCIALSûWEREûEMPHASISINGûHOWûIMPORTANTûITû
was to widen IPTs to offer an initial concession
of 30bp or more, demonstrating to investors at
the outset that the issuer was willing to pay up
IFûREQUIRED
FALLING YIELDS COAX AROUNDTOWN
BACK TO EUROS
AROUNDTOWN raised €1.25bn last Thursday,
with an opportunistic deal that took
advantage of the recent tightening in the
real estate company’s curve.
The trade, which came alongside a tender
offer, found good traction and underscored
the fact that while it is late in the year,
investors have still been looking to pick up
new paper.
“I think what we are seeing is some
pent-up demand coming through,” said one
syndicate manager away from Aroundtown.
“Late November and early December are
always expected to be busy so investors keep
some cash aside, but because of the
Like the other issuers last week,
Aroundtown paid some premium. Estimates
varied given the steepness of the issuer’s
curve. At the lower end, some suggested a
premium of 3bp, while at the upper 8bp was
put forward.
One factor that probably supported
demand for Thursday’s deal is the lack of
supply out of Aroundtown in recent years.
Although the REIT was once a highly
active issuer in the bond market – in 2019 it
issued multiple transactions across euros,
sterling, Swiss francs and US dollars – its last
euro benchmark came in January, when it
issued a €600m 1.625% perpetual non-call
5.5-year hybrid.
It had not issued a senior benchmark in
12 months and has been much less active
than other Germany-focused REITs.
In a sign that bankers think investors will
continue to be willing to engage with
borrowers to some degree in the build up to
Christmas, French pharmaceutical SANOFI
(A1/AA) on Thursday announced the
mandate for a non-deal roadshow to talk
accounts through its new sustainability-
linked bond framework.
Calls will take place on December 15 and
16.
4HEREûAREûFOURû+0)SûINCORPORATEDûINTOûTHEû
framework. Two of these are linked to
climate mitigation and cover Scope 1, 2 and
BONDS FIG
raised A$350m (US$252m) from a debut, six-
YEARûlXED
offering.
The notes pay a 3.026% coupon and priced
at par, at the tight end of revised 135bp–
140bp area guidance, which had been
reduced from the initial 145bp area price
talk.
CBA and Westpac were joint lead managers.
“Our inaugural MTN issuance was well
supported by both domestic and
international investors. The issuance
strengthens CIP’s balance sheet, increasing
debt duration and is illustrative of the REIT’s
improved access to a broader range of
capital sources,” said Jesse Curtis, CIP fund
manager and Centuria’s head of industrial.
Centuria Industrial REIT is one of
Australia’s largest pure-play industrial REITs
listed on the ASX.
FIG
US DOLLARS
ABN AMRO PRINTS LONG-DATED TIER 2
ABN AMRO jumped into the subordinated debt
VOLATILITYûTHISûPERIODûWASûACTUALLYûVERYûQUIETû
and now some investors have been telling
us they want some supply.”
Aroundtown (BBB+ from S&P) was able to
make use of this supply/demand imbalance
with an opportunistic liability management
exercise.
“We recognised the tighter yields in our
bonds and decided to take the opportunity
for a liability management exercise,” said a
source at the company.
To give some sense of the level of
tightening that had occurred, the yield on
Aroundtown’s €800m 1.625% January 2028s
has come in from 1.03% at the end of
November to 0.86% towards the end of last
week, according to Tradeweb.
The real estate company set the spread on
the €1.25bn April 2027 senior unsecured
note at 88bp over mid-swaps, well inside the
115bp–120bp IPTs, while also announcing a
tender offer targeting its €600m 0.375%
September 2022s and €500m 1.875% January
2026s.
“It’s been a pretty positive outcome
today,” said a DCM banker at one of the
leads. “We’re printing €1.25bn at 88bp,
which I think has gone better than the base
case. The market tone today was pretty
strong.”
4HEûlNALûBOOKûFORûTHEûTRANSACTIONû
exceeded €3.7bn and it priced at a yield of
3 emissions and two provide targets to
improve access to medicine.
“What I think investors want are
FRAMEWORKSûTHATûAREûREmECTIVEûOFûEACHû
business,” said a banker away from the
roadshow. “If you have a company like a
pharmaceutical, investors are not only going
to want to see emissions targets, but social
ones, because ultimately that is what is
really relevant to the company.”
In a similar fashion, when Novartis issued
a €1.75bn 0% September 2028 SLB last year,
it linked a coupon step-up to two targets
relating to greater access to medicine.
Whether Aroundtown’s deal was the last
of the year remains to be seen, especially as
the latter half of this week is dominated by
central bank meetings.
All this said, some bankers have said that
given the apparent demand that new issues
have been met with last week, they would
not be entirely surprised if some
opportunistic issuers, looking at deals that
DOûNOTûREQUIREûINVESTORûENGAGEMENTû
beforehand, were contemplating a trade.
NON-CORE CURRENCIES
CENTURIA DEBUTS
CENTURIA INDUSTRIAL REIT, rated Baa2 (Moody’s),
MARKETûASûITûTOOKûADVANTAGEûOFûTHEûmATTERû
yield curve to raise Tier 2 regulatory capital
before the end of the year.
The Dutch bank last Monday priced a
US$1bn 15-year non-call 10 subordinated
note at 190bp over Treasuries, tightening
sharply from price thoughts in the 215bp
area.
The offering also included a new US$1bn
eight-year non-call seven senior non-
preferred note in green bond format, which
landed at 110bp over. Earlier in September,
the bank had printed an identical structure
in euros. By issuing in an extended maturity,
ABN AMRO’s subordinated offering was
ACCESSINGûAûLESSûLIQUIDûANDûSMALLERûSEGMENTû
of the market for FIG borrowers.
But the long-dated structure has gained
traction in the subordinated market among
Yankee banks. Australian bank Westpac last
month raised a 15-year non-call 10
subordinated note at 153bp over Treasuries,
drawing strong interest from investors
looking to pick up some yield from a highly
rated borrower.
“Not an altogether unusual structure for a
Tier 2 Yankee sub given that eligibility for
REGULATORYûCAPITALûAMORTISESûOVERûTHEûlNALû
lVEûYEARSûTOûMATURITYûOFûTHEûBONDû7HILEûWEû
haven’t necessarily seen it from Dutch
banks, we have seen it from French and
Australian banks,” said Dan Bruzzo,
0.766%. VIAûITSûlNANCINGûSUBSIDIARYû#)0û&UNDINGû managing director at Amherst Pierpont.

International Financing Review December 11 2021 27

 Still, ABN AMRO’s decision to go long
shows FIG borrowers were eager to bring
forward issuance to hedge against the
prospect of higher bond yields next year.
That was despite the recent pull-back in
long-dated Treasury rates, sparked by
mounting concerns that the Omicron
variant could dent the progress of the global
economic recovery.
The 10-year Treasury, which closed on
December 3 at 1.35%, was at 1.43% last
Monday, after hovering above 1.60% in late
November.
“Long-dated issuance is always a positive
for capital ratios. If you think the market is
giving away the window to print long-dated
debt and you have a view rates are going to
be higher, then now is a good time,” said
trade, abrdn with the AT1 and today we had PERFECT FIT
Westpac.” Bankers added that the short-dated, well-
A banker at one of Westpac NZ’s leads said rated nature of the deal – which is
the issuer decided to push ahead after expected to be A1/AA– (Moody’s/S&P) –
weighing up the likely outcomes in terms of perfectly suited investors’ needs at
volume and concession for a transaction year-end.
now versus a deal launched in a busier “For us, that trade has always been there,”
January market, concluding that there was SAIDûTHEûLEADûBANKERûh)TûWASûJUSTûAûQUESTIONû
little downside to going on this side of the of were [issuers] willing to pay the entry
Christmas break. fee?”
Leads Barclays, HSBC, JP Morgan and Westpac The deal is Westpac NZ’s second euro
marketed the deal with IPTs of mid-swaps benchmark senior offering of 2021,
plus 75bp area. following a €750m six-year deal which
The spread was ultimately set at 55bp on priced at 42bp in July.
the back of more than €2.85bn of orders – In line with broader market moves, that
which bankers noted was an unprecedented 0.01% transaction widened sharply in late
level of demand for a New Zealand issuer in November to a peak of 58bp on November
the euro market. 26, before tightening back in to trade at
3COTTû+IMBALLûCO
HEADûOFû53ûlXEDûINCOMEûATû h4HATûREmECTSûWHATûWEûHAVEûSEENûONûTHEû 48bp on Tuesday morning.
BMO Global Asset Management. SECONDARYûMARKETûWITHûmOWSûSTRONGLYû Some bankers saw fair value for the new
Bookrunners for the two-part offering skewed to buying, showing that there is still ISSUEûmATûTOûTHATûREFERENCEûPOINTûWHEREASû
were ABN AMRO, Bank of America, Citigroup, cash to be deployed by year-end,” said a others put it slightly tighter at 45bp,
Morgan Stanley, RBC, Goldman Sachs and second banker away from the deal. IMPLYINGûAûlNALûCONCESSIONûOFûEITHERûBPûORû
Standard Chartered. “The fact is the macro is still very strong 10bp.
even if it’s the end of the year and we have “Overall, some of these issuers are paying
SEENûAûVERYûSUBSTANTIALûSQUEEZEûONûTHEû up a little bit, but who knows what people
EUROS secondary market and very substantial will be paying in January, so I understand
tightening, so there are still pre-funding the rationale,” said a third banker away
WESTPAC NZ GRABS LAST-MINUTE trades that can be done.” from the deal.
SENIOR PRE-FUNDING
ALL FINANCIAL INSTITUTION BONDS IN EUROS ALL SUBORDINATED FINANCIAL INSTITUTION
BOOKRUNNERS: 1/1/2021 TO DATE BONDS (ALL CURRENCIES)
Westpac NZ launched a well-timed senior
Managing No of Total Share BOOKRUNNERS: 1/1/2021 TO DATE
unsecured pre-funding exercise last week as
bank or group issues €(m) (%) Managing No of Total Share
ITûLANDEDûAûBLOWOUTûõMûlVE
YEARû
1 BNP Paribas 86 15,622.43 7.4 bank or group issues US$(m) (%)
transaction off an almost four times
2 Societe Generale 64 13,446.18 6.3 1 HSBC 61 12,140.40 8.5
subscribed book.
3 Goldman Sachs 51 11,592.64 5.5 2 JP Morgan 65 11,232.06 7.8
Away from the US dollar market, FIG
4 Credit Agricole 57 11,118.83 5.2 3 Citigroup 65 10,914.76 7.6
issuance prior to Westpac NZ’s deal had
5 Natixis 50 10,561.19 5.0 4 Barclays 48 9,029.59 6.3
been limited to opportunistic covered bonds
6 JP Morgan 66 10,524.17 5.0 5 Goldman Sachs 48 8,012.15 5.6
and strategic capital trades in December.
7 Deutsche Bank 59 9,983.15 4.7 6 Bank of America 46 7,799.16 5.4
While the market tone was dictated by the
8 Barclays 62 9,876.36 4.7 7 BNP Paribas 42 7,018.02 4.9
NEWSûmOWûONûTHEû/MICRONûVARIANTûSOMEû
9 UniCredit 62 9,713.53 4.6 8 Deutsche Bank 26 6,943.06 4.8
market participants suggested the window
10 HSBC 67 9,070.34 4.3 9 Morgan Stanley 36 6,303.60 4.4
for senior issuance had already closed for
Total 350 211,883.59 10 UBS 29 5,400.27 3.8
the year.
Including banks, insurance companies and finance companies. Excluding Total 205 143,375.59
But, on Tuesday, Westpac’s deal, the equity-related and covered bonds. Excluding publicly owned institutions.
lRSTûBANKûSENIORûUNSECUREDûISSUANCEûINû Source: Refinitiv SDC code: N11 Source: Refinitiv SDC code: J3a
euros since late November, showed
ALL GLOBAL AND EUROMARKET YEN BONDS ALL INTERNATIONAL YEN BONDS
CONDITIONSûHADûRECOVEREDûSUFlCIENTLYûTOû
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
put such pre-funding transactions back on
Managing No of Total Share Managing No of Total Share
the table.
bank or group issues ¥(m) (%) bank or group issues ¥(m) (%)
“The senior market has been untested in
euros since November 25, when we had 1 Mizuho 13 196,883.33 19.1 1 Sumitomo Mitsui 31 430,612.33 25.0
BFCM with a 3.25-year senior preferred and 2 Mitsubishi UFJ MS 25 157,709.05 15.3 2 Mizuho 30 287,000.00 16.7
SocGen with a social 6NC5 SNP,” said a 3 Sumitomo Mitsui 11 130,591.67 12.7 3 Mitsubishi UFJ MS 33 209,075.71 12.1
syndicate banker away. “Those transactions 4 JP Morgan 8 97,500.00 9.5 4 Nomura 29 178,891.67 10.4
went well but, overall, issuers have shied 5 MUFG 4 76,858.33 7.5 5 Daiwa Securities 21 129,366.67 7.5
away from the senior market given all the 6 Nomura 7 63,775.00 6.2 6 JP Morgan 8 97,500.00 5.7

recent volatility.” 7 Bank of America 2 63,333.33 6.1 7 MUFG 4 76,858.33 4.5

“The activity we’ve seen in secondary 8 Goldman Sachs 2 49,733.33 4.8 8 Bank of America 2 63,333.33 3.7

where a lot of real money accounts have 9 Daiwa Securities 4 43,750.00 4.2 9 Goldman Sachs 2 49,733.33 2.9
10 BNP Paribas 2 27,125.00 2.6 10 Natixis 6 34,500.00 2.0
been buying – spreads have been tightening
Total 56 1,029,842.38 Total 88 1,723,446.38
considerably since the wides in November –
Excluding equity-related debt. Including preferreds. Including all Euro, foreign and global issues. Excluding equity-related
is translating into primary with strong debt.
EXECUTIONSûWEûHADûTHEû5NIQAûINSURANCEû Source: Refinitiv SDC code: K10 Source: Refinitiv SDC code: K12

28 International Financing Review December 11 2021

 BONDS FIG

The new issue performed strongly in the Next year’s issuance could come in the Initial price guidance when the
secondary market, trading 7bp inside reoffer form of Additional Tier 1 capital or senior marketing started on Tuesday was 33bp
at 48bp on Thursday. paper, said Slape, adding that the bank may FORûTHEûlVE
YEARû30ûBPnBPûFORûTHEû

issue further MREL-eligible debt in 2023. year SP, 54bp–55bp for the six-year
NON
CALLûlVEû3.0ûANDûBPnBPûFORûTHEû
STERLING
MOODY UPGRADES CO-OP SENIOR
CALLûlVEûANDûûFORûTHEû
YEARû
UNSECURED
Moody’s has upgraded the senior unsecured
DEBTûOFûTHEû5+SûCO-OPERATIVE BANK to B1 from
B3, citing progress in the bank’s efforts to
YEN
BPCE TIER 2 SAMURAI IN DEMAND
BPCEûRETURNEDûTOûTHEûYENûMARKETûFORûTHEûlRSTû
time in a year to sell ¥138bn (US$1.21bn) of
multi-tranche Samurai bonds, with a Tier 2
10-year non-call nine. IPG for the Tier 2
sub debt was 1.05%–1.1% for the 10-year
NON
non-call 10.
Books closed in Europe at the close of
business that day, and in Asia at 11am Tokyo
time the following day.
RETURNûTOûSUSTAINEDûPROlTABILITYûWHILEû
noting the likely cost of its plans to raise
MREL-eligible debt next year.
Moody’s also lifted Co-op Bank’s deposit
ratings to Ba3 from B2 and upgraded the
holding company to B1 from B3 on
Thursday, while maintaining a positive
YEARûNON
CALLûlVEû4IERûû EQUALûTOûTHEûONE
portion setting a record for its size.
“This deal has set a new trend,” said a
banker away from Thursday’s trade, who
expects other foreign issuers to follow suit
and sell subordinated bonds in the yen
market.
4HEûcBNû
TONAR REFERENCE
A noteworthy aspect of the transaction is
that BPCE will use Tonar swaps to reset the
coupons for the callable tranches if not
called. The coupon on the six-year non-call
lVEû3.0ûTRANCHEûWILLûRESETûATûAûlXEDûRATEû
YEARû4ONARûPLUSûBPûTHEû
outlook on the senior unsecured debt rating tranche of the six-part offering was the coupon on the 10-year non-call nine will be
and the deposit ratings. biggest subordinated bond deal ever in the one-year Tonar plus 70bp, the coupon on the
The ratings agency said the upgrades international yen market, according to 
YEARûNON
CALLûlVEûSUBûWILLûBEûlVE
YEARû
REmECTEDûTHEûBANKSûPROGRESSûTOWARDSûAû 2ElNITIVûDATA Tonar plus 112.8bp and the coupon on the
more sustainable business model and It priced with a 1.1% coupon at 112.8bp 
YEARûNON
CALLûûWILLûBEûlVE
YEARû4ONARû
IMPROVEMENTSûINûITSûPROlTABILITYûASûWELLûASû over Tonar mid-swaps. Pension funds were plus 120.1bp.
the bank’s plans to issue MREL-eligible debt, key investors, with Japanese regional BNP Paribas, Credit Agricole and Barclays
which provides additional protection to accounts, life insurers, universities and for their yen deals priced earlier this year
depositors and bondholders and results in others also participating. will use JGBs to reset the coupons if the
an additional notch of uplift under Moody’s The 1%-plus absolute yield level and the bonds are not called.
analysis. Samurai format were important factors Mitsubishi UFJ Morgan Stanley, Mizuho, Natixis
After 10 years of losses, Co-op Bank has behind the demand. and Nomura were the bookrunners for the
REPORTEDûSUCCESSIVEûQUARTERLYûPROlTSûTHISû 4HEûOTHERûTRANCHESûWEREûlVEûANDû
YEARû BPCE deal. The expected ratings were A1/A/
year. Together with capital generation, that SENIORûPREFERREDûNOTESûSIX
YEARûNON
CALLûlVEû A+/A+ (Moody’s/S&P/Fitch/R&I) for the SP
has already seen the bank rewarded with and 10-year non-call nine senior non- tranches, Baa1/BBB+/A/A for the SNP
upgrades from Moody’s and Fitch in July – preferred bonds, and 15-year non-call 10 portions and Baa2/BBB/A–/A for the
when Moody’s raised the senior debt rating Tier 2 debt. The French bank marketed a subordinated bonds.
to B3 from Caa1 and Fitch upgraded its seven-year SP tranche but dropped it.
Issuer Default Rating to B+ from B. 4HEûlVE
YEARû30ûPRICEDûWITHûAûû
Moody’s said on Thursday it believed the coupon at 33bp over Tonar swaps. Books had NON-CORE CURRENCIES
risk that Co-op Bank would remain loss- built up to over ¥30bn, but the size was
making has reduced. capped at ¥25bn because the issuer was pre- AMP PAYS DOWNGRADE PREMIUM
“The ratings agency believes that, funding as it had already raised enough
following the restructuring over the last funds for the year. AMP BANK, rated Baa2/BBB (Moody’s/S&P),
several years, charges for exceptional items The ¥8.7bn 10-year SP priced with a returned to the local senior market for the
will reduce and moderate loan growth and 0.439% coupon at 39bp over, the ¥9bn six- lRSTûTIMEûINûOVERûTHREEûYEARSûONû4HURSDAYû
POTENTIALLYûHIGHERûBASEûRATESûINûTHEû5+ûWILLû YEARûNON
CALLûlVEû3.0ûWITHûAûûCOUPONû with a A$125m (US$90m) three-year
support the bank’s revenue.” at 54bp over, the ¥14.9bn 10-year non-call mOATING
RATEûNOTEûPRICEDûATûTHREE
MONTHû
Moody’s added, however, that it expected
#O
OPû"ANKSûPROlTABILITYûTOûREMAINûVERYû
weak and said achieving returns in excess of
the bank’s cost of capital is highly unlikely
in the next 12–18 months, while
acknowledging an uncertain operating
ENVIRONMENTûINûTHEû5+
The anticipated issuance of MREL-eligible
debt, while positive for bondholders and
depositors, will also increase the bank’s cost
of funding, said Moody’s.
Nick Slape, chief executive of Co-op Bank,
said during an investor event in October the
bank expected to issue up to £200m of
YEARûmOATERûONû.OVEMBERû
-2%,
ELIGIBLEûDEBTûINûûBEFOREûITSûlNALû completely, so the issuer marketed
-2%,ûREQUIREMENTûKICKSûINûFROMû*ANUARYûû
2023.
nine with a 0.728% coupon at 70bp over, and
the ¥5.8bn 15-year non-call 10 Tier 2 with a
1.25% coupon at 120.1bp over. The issue
price was 100 for all tranches.
DELAYED DEAL
The issuer held a roadshow in the week
of November 15 and was initially looking
to sell the bonds in the week beginning
November 29. But the bank opted to sit
on the sidelines because of volatility
caused by the discovery of the more
contagious Omicron variant. Conditions
then started to stabilise, but not
23 from Agricultural Bank of China, Sydney
QUICKLYûLASTûWEEKûWITHûRELATIVELYûTIGHTû
guidance ranges.
BBSW plus 90bp. CBA, UBS and Westpac were
joint lead managers.
AMP Bank previously sold a A$400m
three-year FRN at three-month BBSW plus
108bp in September 2018 when it was
rated three notches higher at A2/A
(Moody’s/S&P).
4HEûISSUERûSUFFEREDûSEVERALûSUBSEQUENTû
downgrades due to its prominent role in
!USTRALIANûlNANCIALûSCANDALS
One recent comparable which may
indicate where AMP Bank would have
cleared with its former Single A ratings was
THEû!MûTHREE
branch (A1/A/A), which priced 53bp wide of
three-month BBSW.

International Financing Review December 11 2021 29

 BOQ GOES SHORT HAVEûTHEûlELDûOFûPLAYûTOûTHEMSELVESûEVENûIFû which sold a £350m December 2024
not everyone is keen to play in December,” transaction in July at 39bp over Gilts.
BANK OF QUEENSLAND (A3/BBB+/A–) revisited the banker said. MunHyp’s deal, priced when swaps
the senior unsecured market on Wednesday Canada, where issuers have been weaned SPREADSûWEREûTIGHTERûWASûQUOTEDûATûBPûBIDû
with a A$275m (US$197m) sale of one-year off central bank funding, has been one of on Friday, but bankers argued that bond was
SENIORûUNSECUREDûmOATING
RATEûNOTESûWHICHû the key jurisdictions driving covered TOOûILLIQUIDûANDûARTIlCIALLYûTIGHTûTOûBEûAû
priced in line with three-month BBSW plus issuance this year. BNS came hot on the relevant reference point.
27bp guidance via sole lead manager ANZ. heels of CIBC, which launched a successful h7EVEûSEENûTHEûOTHERûlXEDûFROMû-UN(YPû
BoQ has raised a lot of funds this year to £1bn four-year Sonia-linked covered bond earlier in the year, but given the very
help pay for its A$1.3bn purchase of ME issue on Tuesday. SIGNIlCANTûMOVEûINûSWAPSûSPREADSûTHISûISû
Bank, which was completed on July 1. “It’s good to see a couple of Canadian banks COMINGûQUITEûAûLOTûWIDERûONûAû'ILTûBASISvû
In October, Bank of Queensland issued an getting good execution this week. We’ll said the syndicate banker away from the
!MûDUAL
TRANCHEûlVE
YEARûSENIORû probably continue to see that trend of deal. “But, actually, versus where I would see
UNSECUREDûNOTEûOFFERINGûlVEûMONTHSûAFTERûAû
!MûTWO
PARTûlVE
YEARûSALE January,” said the banker away from the deal.
4HEûBANKûSUBSEQUENTLYûSETûAûNEWûREGIONALû
bank clearing rate benchmark for Tier 2
notes in November with a A$400m 10.5-year
non-call 5.5-year wholesale print.
COVERED BONDS
EUROS
BNS CROSSES FINISH LINE WITH LARGEST
LINKEDû further covered bond supply.
EURO COVERED OF 2021
Wednesday saw yet another Canadian credit
in pre-funding mode, with BANK OF NOVA
SCOTIA printing a €1.75bn six-year mortgage-
backed deal, the largest euro covered bond
issue since April 2020.
“They’ve done the largest US dollar
[covered] ever in October and now the
Canadian banks accessing markets in
even a little bit inside.”
STERLING
BAYERNLB LANDS UPSIZED STERLING
COVERED REFI
BAYERISCHE LANDESBANK made a well-received
return to the sterling covered bond market
on Friday with a £300m three-year public
sector Pfandbrief, with strong demand
allowing it to increase the size of the deal
and price inside the level it could have
ACHIEVEDûWITHûANûEQUIVALENTû3ONIA
transaction.
4HEûDEALûWASû"AYERN,"SûlRSTûFORAYûINTOû
the sterling covered bond market since
January 2017, when it sold a £250m deal
that matures on December 20.
“The whole thesis was [BayernLB] had that
bond coming up to maturity on December
20 and saw an opportunity,” said a banker
close to the deal. “The issuer avoided pre-
them in Sonia-linked format, it’s potentially
The banker close to the deal agreed,
CALCULATINGûTHATûTHEûlNALûSPREADûOFû'ILTSûPLUSû
BPûWASûEQUIVALENTûTOû3ONIAûPLUSûBPû
“From our point of view, three-year
Canadian or Aussie paper fair value is 22bp–
23bp, so I think this is a negative concession
here by a basis point or so,” he said.
The bond, like the deal it replaced, was
issued to match BayernLB’s sterling-
denominated assets.
Some bankers predicted BayernLB’s deal
will be the last FIG issuance of 2021,
although others were hesitant to rule out
“There’s probably a window [for more
covered issuance] at the start of next week,
but it doesn’t seem like anyone is rushing to
grab it,” said the syndicate banker.
“If someone had wanted to do something,
they might have done it by now, and
obviously there are central bank meetings
next week, starting from Wednesday.”
A second syndicate banker said investors,
largest euro [covered] of the year – it’s funding to not pay the carry and has now SPECIlCALLYûCENTRALûBANKSûAREûSTILLûhHUNTINGû
phenomenal for Scotia. Overall, it’s a very match-funded and match-settled and were us down” for opportunities to put their
pleasing result that rounds up their funding able to upsize the deal.” MONEYûTOûWORKûINûPARTICULARûINûTHEûlVE
YEARû
very well,” one lead manager said. The new public sector Pfandbrief was part of the curve in euros.
A banker away from the trade said the marketed with initial guidance of the Gilts plus
deal was of notable size, adding that an 72bp area and indicated at £250m (no-grow). CIBC BEATS JANUARY RUSH WITH
ORDERûBOOKûOFûMOREûTHANûõBNûWASûEQUALLYû The spread was set at 68bp on £545m of CHUNKY COVERED
impressive considering how late in the year orders, before the size was increased to
it came. £300m as the order book grew to £785m. CANADIAN IMPERIAL BANK OF COMMERCE achieved
Commerzbank, HSBC, ING, Natixis and Credit Suisse was sole bookrunner and size in the sterling covered space on
Scotiabank opened books at mid-swaps plus BayernLB was joint lead manager.
10bp area for the December 2027 “Demand was overwhelming, and given ALL COVERED BONDS (ALL CURRENCIES)
benchmark. Fair value was estimated at plus the allocations and given the number of BOOKRUNNERS: 1/1/2021 TO DATE
5bp. new sterling investors for the issuer, we Managing No of Total Share
“The six-year tenor clearly didn’t hurt,” wanted to make sure we looked after them bank or group issues US$(m) (%)
the banker away from the deal said. “It was and gave them bonds,” said the banker close 1 HSBC 43 10,881.38 7.2
offering a positive yield to investors at IPTs, to the deal. 2 Commerzbank 45 7,836.90 5.2
but that has been somewhat wiped out by a Those away from the deal said it went 3 Natixis 37 6,595.56 4.4
combination of mid-swaps levels reducing well. “It’s a good trade,” said a syndicate 4 UBS 32 6,553.85 4.3
this morning as well as the spread move.” banker. “It’s taking advantage of a late but 5 NatWest Markets 30 6,379.88 4.2
The leads were able to land the bond at plus very strong window for sterling, particularly 6 Credit Suisse 26 6,250.29 4.1
6bp. for well-rated and short-dated [bonds], a safe 7 Barclays 36 6,079.12 4.0
“I think BNS were smart to be moving bid into the end of the year.” 8 UniCredit 40 5,885.58 3.9
forward in December rather than taking 9 BNP Paribas 29 5,831.83 3.9
their chances in January alongside a dozen FIRST SINCE JULY 10 LBBW 37 5,740.74 3.8
sovereign transactions and a load of The last German Pfandbrief issuer to target the Total 184 150,813.89
agencies all targeting euros – electing to currency was Muenchener Hypothekenbank, Source: Refinitiv SDC code: J15a

30 International Financing Review December 11 2021

 BONDS HIGH-YIELD

Tuesday, seizing the earliest available post- “For CIBC to get £1bn done is testament
earnings window and beating the January to the fact that people are looking for
rush to execute a £1bn four-year Sonia- defensive short-dated assets, and HIGH-YIELD
linked covered bond. SOMETHINGûINûmOATING
RATEûFORMûATûTHISûSORTû
“A successful transaction despite it being of spread is appealing. We saw no real
QUITEûLATEûINûTHEûYEARvûONEûLEADûMANAGERû attrition on the 2bp move – in fact, orders UNITED STATES
said. “Generally at this time of year, we start picked up a little bit, as folks were pleased
seeing a number of investors pulling back,
but this was one of the few opportunities to
buy Sonia in recent months, from a
renowned issuer.”
4HEûTRADEûWASûTHEûlRSTû#ANADIANûCOVEREDû
in sterling since October. CIBC itself last
visited the space in June with a £1.25bn June
2026 covered FRN that came at 28bp over
Sonia.
CIBC, NatWest Markets, Nomura and RBC
opened books at Sonia plus the 30bp area for
the December 2025 benchmark and landed
at plus 28bp on the back of demand over
£1.25bn by the time they closed.
Bankers close to the trade gauged the new
issue concession within a 0bp–2bp range
YEARûNON
ANDûSAIDûITûATTRACTEDûHIGH
QUALITYûACCOUNTS
A second lead manager said the four-year
tenor played a key role in the deal’s
outcome, noting that RBC was only able to
SECUREûAûaMûSIZEûTHROUGHûAûlVE
YEARû
covered bond in October.
ALL US$ DENOMINATED HIGH-YIELD BONDS
BOOKRUNNERS – 1/1/2021 TO DATE
Managing No of
bank or group issues
1 JP Morgan 395
2 Bank of America 367
WITHûTHEûDElNITIONûAROUNDûTHATûSPREADvû SKILLZ BRINGS MOBILE GAMING
the second lead said. PLATFORM TO JUNK MARKET
“All-in-all, this is a very good
demonstration that the sterling market, Mobile gaming platform SKILLZ is looking to
DESPITEûHAVINGûITSûOWNûCASHmOWûQUIRKSûANDû price a debut junk bond issue this week,
technicalities on occasion, is a very viable testing investor appetite for a fast-growing
new issue product, particularly at this time gaming platform that is burning cash to
of the December calendar,” he said. grow revenues.
With Canadian issuers having a lot of Skillz, which merged in a US$3.5bn deal
funding to do for 2022, market participants WITHûSPECIALûPURPOSEûACQUISITIONûCOMPANYû
expect further supply to come out of this &LYINGû%AGLEû!CQUISITIONû#ORPORATIONûINû
jurisdiction soon. December 2020, operates a multiplayer
“I’m sure we will see Canadian banks video game competition platform that
continue to be active across all of the allows players to compete across the world
covered markets, including sterling. CIBC on Apple and Android mobile games. It is
did a good job of being pretty nimble, LOOKINGûTOûISSUEû53MûOFûlVE
enough to get themselves ahead of the pack CALLûTWOûlRSTûLIENûSECUREDûNOTESûFORûGENERALû
in December rather than in January when corporate purposes.
they may be up against more in the way of The company held a non-deal roadshow
other Triple A supply from sovereigns, several weeks ago, according to a portfolio
agencies and the like,” the second lead manager. It held an investor call last
manager said. Thursday and expects to price the bonds this
Wednesday via Citigroup (lead left), Goldman
ALL NON-DOLLAR DENOMINATED HIGH-YIELD BONDS Sachs, Bank of America, Jefferies, RBC and Silicon
1/1/2021 TO DATE Valley Bank. S&P assigned a B– rating to the
Total Share Managing No of Total Share company and secured bond offering.
US$(m) (%) bank or group issues €(m) (%) Skillz is the latest debut borrower to try to
52,264.19 10.5 1 Goldman Sachs 96 8,939.82 7.3
raise cash in the junk bond market despite
43,441.37 8.8 2 Barclays 74 8,827.84 7.2 NOTûYETûGENERATINGûANYûPROlTûORûFREEû
3 Goldman Sachs 242 28,618.14 5.8 3 JP Morgan 89 8,730.71 7.1 CASHmOWûTHOUGHûINVESTORSûHAVEûBEENû
4 Citigroup 256 28,238.71 5.7 4 Deutsche Bank 84 7,912.38 6.4 willing to overlook this in cases such as Tesla
5 Wells Fargo 232 26,089.39 5.3 5 BNP Paribas 94 7,685.44 6.3 ANDû.ETmIXûINûRECENTûYEARS
6 Barclays 238 26,059.44 5.2 6 Bank of America 59 7,273.55 5.9 “No earnings, no Ebitda – it’s going to be
7 Deutsche Bank 225 24,695.26 5.0 7 HSBC 72 6,928.07 5.6 tough,” said the portfolio manager.
8 Morgan Stanley 181 23,519.76 4.7 8 Morgan Stanley 51 5,232.70 4.3
9 Credit Suisse 221 22,286.39 4.5 9 Credit Suisse 62 4,861.03 4.0 PROFIT SHARE
10 RBC 172 18,588.59 3.7 10 Credit Agricole 66 4,726.57 3.8 Skillz generates revenues by receiving a
Total 754 496,392.26 Total 223 122,931.85 percentage of player entry fees in paid
Including US domestics, Euro, foreign, globals. Excluding equity-related debt. Excluding equity-related debt.
competitions, after deducting user prize
Source: Refinitiv SDC code: B5 Source: Refinitiv SDC code: B6 MONEYûANDûTHEûPROlTûSHAREûPAIDûTOû
developers. Revenues have soared in the
ALL ASIAN HIGH-YIELD ISSUERS ALL EUROPEAN HIGH-YIELD ISSUERS past three years, reaching US$230m in 2020
1/1/2021 TO DATE 1/1/2021 TO DATE up from US$50.8m in 2018.
Managing No of Total Share Managing No of Total Share However, expansion has come at a steep
bank or group issues US$(m) (%) bank or group issues US$(m) (%) cost. The company generated net losses of
1 JP Morgan 113 14,722.88 8.1 US$145.5m in 2020, up from losses of
1 HSBC 59 3,616.37 7.1
2 Barclays 86 12,585.59 6.9 US$23.6m in 2019. Adjusted Ebitda was
2 Deutsche Bank 61 3,537.67 6.9
3 JP Morgan 28 2,849.32 5.6 3 Goldman Sachs 106 12,490.94 6.9 negative US$18.5m in 2018, which dropped
4 Credit Suisse 54 2,616.49 5.1 4 Bank of America 67 11,452.09 6.3 to negative US$66m in 2020.
5 Citic 68 2,515.19 4.9 5 BNP Paribas 104 11,282.65 6.2 S&P said it expects Skillz’s Ebitda and free
6 Citigroup 22 2,292.47 4.5 6 Deutsche Bank 87 10,749.07 5.9 CASHmOWûTOûREMAINûNEGATIVEûFORûATûLEASTûTHEû
7 Guotai Junan Secs 77 2,239.34 4.4 7 Morgan Stanley 59 8,031.49 4.4 next two years due to high customer
8 Haitong Secs 73 2,032.19 4.0 8 HSBC 73 7,972.63 4.4 ACQUISITIONûCOSTS
9 UBS 54 1,709.91 3.4 9 Credit Suisse 71 7,954.29 4.4 In contrast to traditional gaming
10 Bank of America 21 1,689.43 3.3 10 Citigroup 65 6,912.78 3.8 companies such as Activision Blizzard,
Total 151 51,031.88 Total 250 181,598.11 Electronic Arts (EA), Playtika, and Zynga,
Excluding equity-related debt. Excluding equity-related debt. which make money from in-app purchases
Source: Refinitiv SDC code: B06d Source: Refinitiv SDC code: B06c and advertising, Skillz looks to make money

International Financing Review December 11 2021 31

by advertising games produced by
developers in return for a higher share of
PROlT
The company generates most of its
revenues from just three games, with
Solitaire Cube, 21 Blitz and Blackout Bingo
accounting for 73% of its revenues in the
nine months ended September 30 2021,
according to marketing materials.
“The goal is to create a virtuous cycle
where both the developer and the platform
can grow its user base and the user remains
engaged with a multitude of games to
compete in,” said S&P on Thursday.
However, the company’s platform is
currently below the scale necessary to
achieve this virtuous cycle, S&P said.
3KILLZûHASûNOTûYETûIDENTIlEDûAûSPECIlCû
“material single use” for the proceeds but
remain challenged by its natural gas
WEIGHTEDûPRODUCTIONûPROlLEûABOUTûûOFû
expected production) and high reserves
concentration.”
The bond deal came ahead of an
expected drop in natural gas prices,
which reached multi-year highs earlier in
2021. With mild weather in November,
the US Energy Information
Administration said on Tuesday that the
natural gas spot price at Henry Hub
averaged US$5.05 per million British
thermal units (MMBtu), down from the
October average of US$5.51/MMBtu but
up from an average of US$3.25/MMBtu in
THEûlRSTûHALFûOFû
The EIA expects spot prices to drop to
US$4.58/MMBtu from December 2021
through to February 2022, then generally
lenders from February 2023 to February
2024.
In a statement on Tuesday, S&P said it
maintained a negative outlook on the
company’s CCC+ rating. While there is
growing expectation that the company
COULDûOFFERûAûUNIQUEûSOLUTIONûTOûLARGEûANDû
small businesses in a return-to-work
environment, there is still considerable
uncertainty about what decisions companies
will take on their real estate footprint.
“The adoption rates for all of WeWork’s
offerings could be highly variable given its
concentration in urban areas,” said S&P.
“Gateway urban markets have been subject to
shifting demographics as residents relocate to
the suburbs to live and, in some cases, work
FOLLOWINGûTHEûIMPOSITIONûOFûNEWûOFlCEûCAPACITYû
restrictions and reduction in real estate or due
could end up using the cash for funding
working capital, capital expenditure,
operating expenses and expansion through
investments in other businesses and
technologies, the marketing materials show.
In addition to the new junk bonds, the
company intends to obtain additional debt
lNANCINGûUNDERûAûNEWûREVOLVINGûCREDITû
facility, which, if established, would be
secured by liens that have priority over the
new bonds.
SOUTHWESTERN ENERGY FUELS
EXPANSION
Natural gas exploration and production
company SOUTHWESTERN ENERGY COMPANY raised
US$1.15bn in the junk bond market on
7EDNESDAYûTOûHELPûFUNDûITSûACQUISITIONûOFû
GEP Haynesville and a tender offer for
decline through 2022, averaging US$3.98/
MMBtu in 2022 amid rising US natural gas
production and slowing growth in LNG
exports.
Joint bookrunners on Wednesday’s
Southwestern bond issue were JP Morgan,
Bank of America, Citigroup, RBC, Wells Fargo,
Mizuho, MUFG, PNC, Regions and Truist.
SOFTBANK OFFLOADS WEWORK BONDS
3OFT"ANKûOFmOADEDû53MûOFûWEWORK
bonds in a secondary sale last week, after
the co-working company struck a deal with
SoftBank and a syndicate of lenders to
extend its credit facility for an additional
year.
The notes for sale were originally part of a
US$2.2bn package of 5% 2025 senior secured
notes issued to StarBright WW LP, a
TOûTHEûPOTENTIALûRISEûOFûSATELLITEûOFlCESûWHICHû
could lead to a sustained decline in the density
OFûCORPORATEûOFlCESûINûSUCHûAREASv
EUROPE/MIDDLE EAST/
AFRICA
T-MOBILE NETHERLANDS FINALLY LANDS
BUYOUT BOND
T-MOBILE NETHERLANDS got the bond
COMPONENTûOFûITSûlNANCINGûBACKINGûITSû
BUYOUTûBYûPRIVATEûEQUITYûHOUSESû!PAXûANDû
Warburg Pincus across the line last week,
vindicating leads’ decision to get the deal
done before year-end.
The telecoms company (B2/B) approached
investors last Tuesday with a €1.35bn high-
yield bond issue, split into a €800m
existing debt.
4HEû
YEARûNON
CALLûlVEûSENIORûNOTEûISSUEû this transaction, SoftBank will split the
was priced at 4.75%, after bookrunners
tightened levels from initial price thoughts
of 5%–5.25% and price talk of 4.75%–5%. The
bonds were offered alongside a US$550m
term loan B to fund the US$1.325bn cash
consideration of the purchase and the
US$300m tender offer for its 2025 and 2027
notes.
The new 2032 bonds will be the longest
dated in the company’s capital structure.
The closest comparable is Southwestern’s
5.375% 2030 senior note issue that was
trading at a yield around 4.2% on Tuesday,
according to MarketAxess.
Southwestern, rated Ba3/BB/BB, bolstered
its footprint in the Haynesville region with
3OFT"ANKûAFlLIATEûINû*ULYûû!SûPARTûOFû
tranche (B1/B) and €550m in eight-year non-
US$2.2bn notes into US$550m of “Series II”
notes that were sold last week, and
designated the remaining US$1.65bn bonds
as “Series I” notes, according to marketing
materials.
Joint bookrunners JP Morgan, Goldman
Sachs, Mizuho, Deutsche Bank and Citigroup
priced the bonds on Thursday at 85.989
cents on the dollar to yield 9.75%. Initial
price thoughts had been for a yield of 9.875%
which was tightened to talk of 9.625%–
9.875%.
WeWork’s existing CCC+/CCC– rated
7.875% 2025 bonds were trading at a cash
price of 96.125 to yield around 9.2% on
Monday before the secondary sale was
seven-year non-call three senior secured
call three senior unsecured notes (Caa1/
CCC+). Leads made the decision to pull the
trigger on the deal amid easing anxiety over
the Omicron variant of Covid-19.
“Launching into a market that hasn’t seen
a bond in a week and a half is not an easy
decision but there’s so much uncertainty for
January 2022 that it felt like the right one,”
said a banker familiar with the deal.
Prior to Tuesday’s announcement,
Europe’s high-yield bond market had not
seen a deal launched since November 24 as
borrowers ran scared of Omicron, a new and
more infectious variant of Covid-19. But
screens turned green last week thanks in
PARTûTOûNEWSûTHATûTHREEûDOSESûOFûTHEû0lZERû
THEûACQUISITIONûOFû'%0ûWHICHûFOLLOWEDûTHEû
US$2.7bn merger with Indigo Natural
Resources in September.
h4HEûACQUISITIONSûOFû'%0ûANDû)NDIGOûAREû
favourable as they add higher margin
production and provide basin
announced, according to MarketAxess.
WeWork will not receive any proceeds
from the secondary note sale. The company
closed a merger with SPAC BowX in October
that gave the company total gross cash
proceeds of US$1.283bn. On Monday,
and BioNTech vaccine should be effective
against the Omicron strain of Covid-19.
And with no other deals in last week’s
European high-yield bond market, all eyes
were on T-Mobile Netherlands.
Price talk on the senior secured notes was
DIVERSIlCATIONvûSAIDû-OODYSûONû WeWork said it had extended its credit at 3.875% area, while on the senior
Wednesday. “However, Southwestern will facility with SoftBank and a syndicate of unsecured notes it came at 5.5%–5.75%.

32 International Financing Review December 11 2021

 STRUCTURED FINANCE

“I can get comfortable on a senior secured another Irish NPL RMBS, EUROPEAN RESIDENTIAL Initial price thoughts for the X (€2m), A
LEVELûBUTûGIVENûHOWûTHINûTHEûEQUITYûCUSHIONû LOAN SECURITISATION 2021-NPL1. õ û"
õM ûlXEDûRATEû"
ûõM û
is, you really need to get paid to own the
subs,” said one investor on the pricing
differential, noting that the two sponsors
HAVEûONLYûPUTûAûTOTALûEQUITYûCHEQUEûOFû
€1.1bn into the deal.
A second investor put the differential
down to the company’s outstanding loans
providing an anchor for pricing on the
unsecureds.
Pricing was eventually set at 3.75% and
5.5%.
The high-yield bond issue’s execution was
made simpler by the fact that the loan
COMPONENTûOFûTHEûlNANCINGûHADûALREADYû
been placed, said bankers familiar with the
deal.
T-Mobile Netherlands was forced to split
the execution of the loan and bond
COMPONENTSûOFûITSûlNANCINGûPACKAGEûINû
November after the company’s numbers
were not ready in time to be included in the
offering memorandum for the high-yield
bond component of the take-out.
Leads landed a €2.4bn seven-year term
loan B in November, which saw good
demand and was upsized from €2bn. The
seven-year TLB was priced at 400bp over
The issuer is LSF11 BOSON INVESTMENTS S.A R.L., C (€31.75m), D (€35.75m) and E (€30.25m)
acting on behalf of Compartment 2, with notes were: plus 50bp area, 96bp area,
Hudson Advisors Spain acting as asset manager 175bp–180bp, 2.1%–2.2%, 240bp–250bp,
and back-up administrator facilitator. 260bp–370bp and 660bp–675bp.
The servicer is Servihabitat Servicios The F note’s status was subject. The deal
Inmobiliarios, while the retention holder is emerged on Friday with the following levels:
Lone Star Capital Investments. 45bp, 96bp, 170bp, 2.2%, 365bp 647bp (98 price)
The A/A low rated A1 (€200m) and the A/BBB and 820bp for the F, with no price published.
high rated A2 (€20m) notes were both pre- The reinvestment period ends in January
placed at discount margins of three-month 2027; the non-call ends in January 2024
Euribor plus 200bp (97.27 and 92.3 price) while WHILEûTHEûLEGALûlNALûISûINû*ANUARYûû
the rest of the capital structure was retained. Elsewhere, MEDIRECT BANK (MALTA), now
The €12m B, €16m C, €2m P and €376.8m operating under the FIL INVESTMENTS INTERNATIONAL
D notes have margins of plus 300bp, plus brand gave noteholders notice of a planned
400bp N.A. and plus 500bp. Lone Star will RElNANCEûEXERCISEûFORûITSûGRAND HARBOUR CLO 2019-1.
retain the Class D notes. Subordinated noteholders are exploring a
RElNANCINGûINûWHOLEûOFûTHEûRATEDûNOTES
EMEA CLO
US MBS
CLO PRIMARY FINALLY SLOWS
FANNIE GREEN CMBS PROGRAMME HITS
4HEû#,/ûPRIMARYûMARKETûlNALLYûSLOWEDûLASTû MILESTONE
week with the most notable development
coming from PGIM LOAN ORIGINATOR MANAGER Fannie Mae has reached US$100bn in green
which priced a reset of its €503.35m DRYDEN multi-family mortgage securitisation since it
79 EURO CLO 2020 via arranger, Credit Suisse. launched this programme a decade ago.
%URIBORûWITHûAûûmOORûATûPAR
ALL EUROPEAN ISSUERS GLOBAL STRUCTURED FINANCE IN EUROS
“The fact that there’s a loan out there
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
meant that the bond was essentially pre-
Managing No of Total Share Managing No of Total Share
marketed,” said a second banker familiar
bank or group issues US$(m) (%) bank or group issues €(m) (%)
with the deal. “That allowed leads to have a
1 BNP Paribas 36 11,586.05 17.2 1 BNP Paribas 22 7,078.12 19.2
very accurate read for the market for this
2 Bank of America 22 6,222.57 9.2 2 Societe Generale 13 5,045.76 13.7
transaction.”
3 Societe Generale 15 6,151.63 9.1 3 Santander 9 2,957.26 8.0
Bond buyers said they liked the TMT
4 Citigroup 25 6,029.41 8.9 4 Credit Agricole 7 2,211.45 6.0
sector as a Covid-19 hedge, but voiced
5 Santander 15 4,530.46 6.7 5 Deutsche Bank 9 2,027.96 5.5
concerns about the company’s initial net
6 Morgan Stanley 9 2,844.55 4.2 6 Citigroup 8 1,917.47 5.2
leverage, which will sit at almost 6x, and the
7 Deutsche Bank 11 2,714.63 4.0 7 Bank of America 8 1,857.80 5.0
deal’s covenant package.
8 Barclays 15 2,641.75 3.9 8 Morgan Stanley 5 1,665.31 4.5
“The covenants are ridiculously
9 Credit Agricole 7 2,605.49 3.9 9 ING 6 1,612.01 4.4
AGGRESSIVEvûSAIDûTHEûlRSTûINVESTOR
10 Lloyds Bank 9 2,250.34 3.3 10 UniCredit 6 1,585.73 4.3
#REDITûRESEARCHûlRMû#OVENANTû2EVIEWû
Total 122 67,463.80 Total 70 36,893.06
called the deal’s debt covenant
Includes securitisations, credit-linked notes (Euro, foreign, global and Includes securitisations, credit-linked notes (Euro, foreign, global and
“extraordinarily permissive”. domestics) and excludes CDOs. domestics) and excludes CDOs.
h%NORMOUSûlXEDûBASKETSûANDûAûLONGû Source: Refinitiv SDC code: B16n Source: Refinitiv SDC code: B16g
laundry list of uncapped baskets will permit
an eye-watering amount of incremental GLOBAL SECURITISATIONS IN STERLING SECURITISATIONS – ALL EUROPEAN RMBS
debt,” wrote analysts. BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
Managing No of Total Share Managing No of Total Share
bank or group issues £(m) (%) bank or group issues €(m) (%)

1 Bank of America 14 2,856.90 17.3 1 Citigroup 15 3,329.18 16.1

2 BNP Paribas 17 2,780.26 13.4
STRUCTURED FINANCE
2 Citigroup 17 2,632.18 16.0
3 BNP Paribas 14 2,273.78 13.8 3 Lloyds Bank 7 1,595.52 7.7
4 Lloyds Bank 8 1,134.27 6.9 4 Barclays 10 1,534.78 7.4
5 NAB 8 1,133.86 6.9 5 Bank of America 7 1,400.84 6.8
EMEA MBS 6 Barclays 8 1,001.26 6.1 6 NAB 8 1,312.40 6.3
7 JP Morgan 4 787.67 4.8 7 Morgan Stanley 4 1,283.48 6.2
ERLS 2021-NPL1 PRE-PLACES LATEST 8 Santander 6 725.36 4.4 8 Natixis 6 842.55 4.1
NPL TRADE 9 StanChart 7 684.54 4.2 9 ABN AMRO 3 656.96 3.2
10 Morgan Stanley 4 642.74 3.9 10 HSBC 5 647.16 3.1
Issuers continued to opt for pre-placement Total 51 16,492.54 Total 49 20,733.48
execution strategies in the face of choppy Including Euro, foreign, global and domestics, excluding CDOs. Including Euro, foreign, global and domestics, excluding CDOs
market conditions. Morgan Stanley brought Source: Refinitiv SDC code: B16i Source: Refinitiv SDC code: B10a

International Financing Review December 11 2021 33

 4HEûBIGGESTû53ûMORTGAGEûlNANCEûAGENCYû
said last Wednesday it has issued US$12.7bn
in green CMBS as of November this year,
compared with US$13bn for all of 2020.
$URINGûTHEûlRSTûYEARûOFûTHEûPROGRAMMEûINû
2012, it issued US$55.7m in green multi-
family bonds.
“Fannie Mae’s Multifamily green
lNANCINGûHASûHELPEDûPRESERVEûANDûIMPROVEû
existing housing stock, supporting our
efforts to bolster the nation’s supply of
housing affordable to low- and moderate-
income households,” Michele Evans, Fannie
Mae’s executive vice-president of multi-
family said in a statement.
Fannie will probably issue US$10bn–
“The multi-family business is strong.
We think that trend will continue well
into 2022,” she said.
In addition to green funding for
apartments, Fannie Mae launched in April
2020 a green MBS programme for new
single-family homes with green building
CERTIlCATIONSûTHATûMEETûORûEXCEEDûTHEû
NATIONALûPROGRAMMEûREQUIREMENTSûFORû
%NERGYû3TARûû#ERTIlEDû(OMESû!TûTHEûENDû
of November, Fannie has issued 44 green
deals for new single-family homes, totalling
US$486m.
US ABS
The US$1.37bn offering, COLOGIX SERIES 2021-1,
comes after the record-sized US$2.1bn issue from
rival Flexential that was priced in November.
The Cologix transaction features four
tranches: US$100m of A-1 variable funding
notes; a US$845m A-2 class; a US$127m B
note tranche and US$64.5m of C paper,
ACCORDINGûTOû+ROLLû4HEûRATINGûAGENCYûISû
expected to assign A– ratings for A-1 and
A-2; BBB– for B and BB– for C.
Cologix, which is majority-owned by
PRIVATEûEQUITYûlRMû3TONEPEAKû)NFRASTRUCTUREû
Partners, and other data centre companies
have been growing even during a pandemic
because of rising data usage.
Deutsche Bank is the sole structurer and
$15bn in green multi-family bonds in 2022, JOINTûBOOKRUNNERû+ROLLûSAIDû4HEûBANKûCOULDû
Lisa Bozzelli, Fannie Mae’s senior director of COLOGIX PREPS DATA CENTRE ABS DEBUT not immediately be reached for comment.
multi-family, told IFR. Co-location service providers such as
Fannie’s overall funding activity is Data centre operator COLOGIX is preparing to Cologix, DataBank and Flexential lease to
keeping pace with the continued ISSUEûITSûlRST
EVERûSECURITISATIONûSECUREDûBYû many smaller customers that may only need
strong apartment demand since the CASHmOWSûFROMûûFACILITIESûPROMPTEDûBYû a shelf, an individual rack or private cage at
pandemic. Rents have risen at an growing investor demand for this type of their data centres under short-term
average 9% clip in 2021, Evans told IFR. digital asset. contracts.

NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 10/12/2021

Issuer Amount (m) WAL DM Bookrunner(s) Rating Asset type
Acres 2021-Fl2 US$385 4.56 1mUSL+140bp JP Morgan/Barclays/Morgan Stanley Aaa/NR/NR CMBS
Acres 2021-Fl2 US$30.625 4.80 1mUSL+175bp JP Morgan/Barclays/Morgan Stanley NR/NR/NR CMBS
Acres 2021-Fl2 US$38.5 4.84 1mUSL+225bp JP Morgan/Barclays/Morgan Stanley NR/NR/NR CMBS
Acres 2021-Fl2 US$47.25 4.90 1mUSL+310bp JP Morgan/Barclays/Morgan Stanley NR/NR/NR CMBS
Acres 2021-Fl2 US$51.625 4.98 1mUSL+310bp JP Morgan/Barclays/Morgan Stanley NR/NR/NR CMBS
Acres 2021-Fl2 US$14 4.98 1mUSL+400bp JP Morgan/Barclays/Morgan Stanley NR/NR/NR CMBS
BINOM 2021-INV1 US$152.484 2.59 IntS+97bp Credit Suisse NR/AAA/NR RMBS
BINOM 2021-INV1 US$15.668 2.59 IntS+130bp Credit Suisse NR/AA/NR RMBS
BINOM 2021-INV1 US$27.136 2.59 IntS+155bp Credit Suisse NR/A/NR RMBS
BINOM 2021-INV1 US$12.942 5.03 IntS+210bp Credit Suisse NR/BBB/NR RMBS
BMARK 2021-B31 US$19.800 2.68 USL+25bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/AAA/AAA CMBS
BMARK 2021-B31 US$138.050 4.90 USL+55bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/AAA/AAA CMBS
BMARK 2021-B31 US$23.220 6.90 USL+73bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/AAA/AAA CMBS
BMARK 2021-B31 US$215.000 9.80 USL+71bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/AAA/AAA CMBS
BMARK 2021-B31 US$575.676 9.94 USL+73bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/AAA/AAA CMBS
BMARK 2021-B31 US$23.526 7.36 USL+65bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/AAA/AAA CMBS
BMARK 2021-B31 US$142.182 9.98 USL+95bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/AA-/AAA CMBS
BMARK 2021-B31 US$63.981 9.98 USL+115bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/NR/AA- CMBS
BMARK 2021-B31 US$60.428 9.98 USL+160bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/NR/A- CMBS
BMARK 2021-B31 US$37.322 9.98 USL+260bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/NR/BBB CMBS
BMARK 2021-B31 US26.659 9.98 USL+375bp Citigroup/JP Morgan/Deutsche Bank/Goldman Sachs NR/NR/BBB- CMBS
BSPRT 2021-FL7 US$508.500 2.79 USL+132bp Wells Fargo/Barclays Aaa/NR/NR CMBS
BSPRT 2021-FL7 US$13.500 3.55 USL+165bp Wells Fargo/Barclays Aaa/NR/NR CMBS
BSPRT 2021-FL7 US$52.875 4.32 USL+205bp Wells Fargo/Barclays Aaa/NR/NR CMBS
BSPRT 2021-FL7 US$66.375 4.39 USL+230bp Wells Fargo/Barclays Aaa/NR/NR CMBS
BSPRT 2021-FL7 US$67.500 4.64 USL+275bp Wells Fargo/Barclays Aaa/NR/NR CMBS
BSPRT 2021-FL7 US$13.500 4.73 USL+340bp Wells Fargo/Barclays Aaa/NR/NR CMBS
CRVNA 2021-N4 US$163.932 0.86 EDSF+45bp BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/AAA/NR ABS
CRVNA 2021-N4 US$60.686 3.49 IntS+62bp BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/AAA/NR ABS
CRVNA 2021-N4 US$52.44 1.39 EDSF+62bp BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/AA/NR ABS
CRVNA 2021-N4 US$52.877 2.06 IntS+85bp BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/A/NR ABS
CRVNA 2021-N4 US$53.751 2.77 IntS+125bp BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/BBB/NR ABS
CRVNA 2021-N4 US$53.314 3.82 IntS+335bp BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/BB/NR ABS
CRVNA 2021-N4 US$20.102 0.63 EDSF+270bp BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/BB/NR ABS
CRVNA 2021-N4 US$28.718 - 9% yld BNP Paribas/Citigroup/Wells Fargo/CS/DB NR/NR/NR ABS

34 International Financing Review December 11 2021

 STRUCTURED FINANCE

While the asset class is still relatively new,
deals from this kind of data centre provider
have tended to be priced with higher yields
than those from wholesale, or hyper-scale,
data centres where companies rent a large
part or even the entire facility under long-
term leases.
“What you are seeing in the data centre
space is that there is a clear differentiation
between deals backed by longer-term
CONTRACTSûWITHûREALûHIGH
QUALITYûTENANTSûONû
the hyper-scale side and those backed by co-
location data centres, which are emerging a
tier behind,” an ABS banker away from the
deal said.
The weighted average remaining term of
contracts in the Cologix transaction, which
Respective support for the Class A2 to F
covers 1,064 customers, is 1.5 years. This
compared with 9.0 years on a US$530m
wholesale data centre offering in October
from Vantage Data Centers backed by leases
to 14 tenants.
While short-term contracts carry greater
risks if customers do not to renew their
LEASESû+ROLLûSAIDû#OLOGIXSûCUSTOMERûCHURNû
or turnover rate has averaged 0.8% since
2018, which is below the industry’s average
of 1%.
The emergence of co-location issuers has
bolstered data centre ABS supply this year. It
has totalled US$5.5bn so far this year, which
has far surpassed the US$2.4bn total for all
of 2020, according to IFR.
The A$65.9m of Class A3, A$14.8m of
ASIA-PACIFIC MBS
RESIMAC TAPS JAPANESE DEMAND
Non-bank lender RESIMAC raised A$1bn
53M ûEQUIVALENTûFROMûTHEûDUAL
currency RESIMAC PREMIER SERIES 2021-3 RMBS
nûTHEûlRSTû2-"3ûBACKEDûBYû!USTRALIANû
mortgages this year to include a yen
tranche.
NAB and SMBC Nikko were arrangers for
the Australian dollar notes and lead
managers with Standard Chartered Bank.
SMBC Nikko was sole arranger for the
Japanese yen tranche and joint lead
manager with NAB.
The ¥16bn (US$140m) Class A1 notes
with a four-year weighted-average life and
10% credit support priced at one-month
yen TONA plus 35bp.
The senior A$700m Class A2 notes with
a two-year WAL priced 85bp wide of one-
month BBSW.
Class B, A$10.9m of Class C, A$3.9m of
Class D, A$2.2m of Class E and A$1.2m of
Class F notes, all with 3.8-year WALs,
priced 110bp, 130bp, 140bp, 235bp,
450bp and 600bp over one-month BBSW.
notes is 10%, 3.41%, 1.93%, 0.84%, 0.45%,
0.23% and 0.11%.
The transaction was completed by
A$1.1m of Class G notes.
There were three such trades last year,
including the Resimac Premier Series
2020-3 in December. This followed the

NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 10/12/2021 (CONTINUED)

Issuer Amount (m) WAL DM Bookrunner(s) Rating Asset type
ERLS 2021-NPL1 €200 2.23 3mE+200bp Morgan Stanley NR/A/NR RMBS
ERLS 2021-NPL1 €20 2.96 3mE+200bp Morgan Stanley NR/A/NR RMBS
GCAT 2021-NQM7 US$213.216 1.96 EDSF+95bp Credit Suisse NR/AAA/NR RMBS
GCAT 2021-NQM7 US$12.558 4.01 IntS+135bp Credit Suisse NR/AA/NR RMBS
GCAT 2021-NQM7 US$14.672 4.01 IntS+155bp Credit Suisse NR/A/NR RMBS
GCAT 2021-NQM7 US$9.121 4.01 IntS+200bp Credit Suisse NR/BBB/NR RMBS
GCAT 2021-NQM7 US$6.874 4.01 IntS+315bp Credit Suisse NR/BB/NR RMBS
FREMF 2021-KSG2 US$51.300 6.65 S+16bp JP Morgan/Citigroup NR/NR/NR CMBS
FREMF 2021-KSG2 US$575.408 9.81 S+30bp JP Morgan/Citigroup NR/NR/NR CMBS
FREMF 2021-KSG2 US$626.708 9.29 T+140bp JP Morgan/Citigroup NR/NR/NR CMBS
FREMF 2021-KSG2 US$32.985 9.69 T+320bp JP Morgan/Citigroup NR/NR/NR CMBS
Freddie Mac Spc Series K-F126 US$759.622 9.58 SOFR+24bp Morgan Stanley/PNC CM NR/NR/NR CMBS
Freddie Mac Spc Series K-J36 US$37.44 3.93 SOFR+24bp Morgan Stanley/Wells Fargo NR/NR/NR CMBS
Freddie Mac Spc Series K-J36 US$177.683 7.56 SOFR+54bp Morgan Stanley/Wells Fargo NR/NR/NR CMBS
Freddie Mac WI-K748 US$175 7.28 IntN+27bp Barclays/Goldman Sachs NR/NR/NR CMBS
SEMT 2021-9 US$252.98 4.99 2-00 bk UMBS 2.5% Wells Fargo NR/NR/AAA RMBS
SEMT 2021-9 US$103 2.81 2-10 bk DW 2.5% Wells Fargo NR/NR/AAA RMBS
SEMT 2021-9 US$32 2.81 2-06 bk DW 2.0% Wells Fargo NR/NR/AAA RMBS
SEMT 2021-9 US$45 11.52 ISwaps+100bp Wells Fargo NR/NR/AAA RMBS
SEMT 2021-9 US$56.053 4.99 3-00 bk UMBS 2.5% Wells Fargo NR/NR/AAA RMBS
STACR 2021-HQA4 US$445 2.55 1mSOFR+95bp Barclays/BofA Baa3/NR/NR RMBS
STACR 2021-HQA4 US$222 5.04 1mSOFR+235bp Barclays/BofA Ba3/NR/NR RMBS
STACR 2021-HQA4 US$148 5.04 1mSOFR+375bp Barclays/BofA NR/NR/NR RMBS
STACR 2021-HQA4 US$148 5.04 1mSOFR+700bp Barclays/BofA NR/NR/NR RMBS
VALET 2021-1 US$324.5 0.14 IntL+3bp Wells Fargo/JP Morgan/Santander/TD Securities P1/A1+/NR ABS
VALET 2021-1 US$630 0.88 EDSF+8bp Wells Fargo/JP Morgan/Santander/TD Securities Aaa/AAA/NR ABS
VALET 2021-1 US$630 2.18 IntS+7bp Wells Fargo/JP Morgan/Santander/TD Securities Aaa/AAA/NR ABS
VALET 2021-1 US$165.5 3.24 IntS+6bp Wells Fargo/JP Morgan/Santander/TD Securities Aaa/AAA/NR ABS
VCC 2021-4 US$214.925 2.71 IntS+140bp Barclays/Citigroup NR/NR/NR RMBS
VCC 2021-4 US$17.073 3.16 IntS+170bp Barclays/Citigroup NR/NR/NR RMBS
VCC 2021-4 US$14.998 3.74 IntS+205bp Barclays/Citigroup NR/NR/NR RMBS
VCC 2021-4 US$27.125 3.43 IntS+255bp Barclays/Citigroup NR/NR/NR RMBS
VCC 2021-4 US$11.328 4.01 IntS+315bp Barclays/Citigroup NR/NR/NR RMBS
VCC 2021-4 US$6.383 4.74 IntS+430bp Barclays/Citigroup NR/NR/NR RMBS
VCC 2021-4 US$27.284 3.77 7.5% Barclays/Citigroup NR/NR/NR RMBS

International Financing Review December 11 2021 35

A$1bn Liberty Series 2020-1 RMBS in May, plus 130bp, 145bp, 175bp, 270bp, 500bp 2.6-year WALs, priced 125bp, 145bp,
WHICHûINCLUDEDûTHEûlRSTûYENûTRANCHEû and 620bp. 225bp, 415bp and 630bp wide of one-
within an Australian RMBS since 2011, The transaction was completed by month BBSW.
ANDûTHEûSUBSEQUENTû!BNû&IRSTMACû A$2m of Class G 1 and A$2.5m of Class G 2 Respective credit support for the A1-a
2020-3 in October. notes. to F notes is 25.8%, 13.9%, 9.5%, 5.3%, 2.9%
Yen-denominated tranches target Respective credit support for the Class and 1%.
Japanese appetite for Australian A1 to G 1 notes is 25%, 11.6%, 7.1%, 4.5%, The A$8m of Class G notes were
mortgage-backed assets by developing 2.6%, 1.8%, 0.9% and 0.5%. retained, while the total excludes the
new investors who are not yet ready to A$25.25m of Class A1-x notes, which are
buy Australian dollars. repaid senior in the income waterfall in
Previously, RMBS bought by Japanese ASIA-PACIFIC ABS accordance with its controlled
investors were swapped from Australian amortisation schedule. The A1-x notes
dollars into yen, but these new structures PEPPER PARKS AUTO AND EQUIPMENT with a 1.1-year WAL priced at one-month
provide a way to invest directly in yen- ABS BBSW plus 85bp.
denominated notes. Pepper previously sold the no-grow
PEPPER MONEY raised an upsized A$800m !MûAUTOûANDûEQUIPMENTû!"3û
BLUESTONE MAKES NON-CON RETURN FROMûITSûLATESTûAUTOûANDûEQUIPMENTû!"3û offering, Pepper Sparkz 3, in December
offering, PEPPER SPARKZ 4. 2020.
Non-bank mortgage lender BLUESTONE NAB was arranger and joint lead The Sparkz 3 Class A1-a, A1-x, B, C, D, E
accessed the Australian non-conforming manager with Bank of America, MUFG, RBC and F notes priced at one-month BBSW
RMBS market for the 32nd time last Capital Markets, Societe Generale and Westpac plus 105bp, 100bp, 160bp, 190bp, 285bp,
Thursday with the no-grow A$500m for the securitisation, which had an 500bp and 700bp, or 15bp, 15bp, 35bp,
BLUESTONE SAPPHIRE 2021-1 TRUST. indicative minimum size of A$600m. 45bp, 60bp, 85bp and 70bp wider than the
Bluestone, owned by America private The A$593.6m of Class A1-a notes with LATESTûEQUIVALENTûTRANCHESû
EQUITYûlRMû#ERBERUSû#APITALû-ANAGEMENTû a 1.6-year WAL priced in line with This followed the public A$600m
since 2018, entered the prime RMBS guidance at one-month BBSW plus 90bp. Pepper Sparkz Trust No 2 auto ABS in
market in July via the A$700m Bluestone The A$95.2m of Class B, A$35.2m of January 2020 and the privately placed
Prime 2021-1 Trust, which followed on Class C, A$33.6m of Class D, A$19.2m of A$511.6m Reg S master trust Pepper
naturally from a strategic partnership Class E and A$15.2m of Class F notes, with Sparkz Trust No 1 in July 2019.
with Athena Home Loans signed two
US ASSET-BACKED SECURITIES GLOBAL STRUCTURED FINANCE IN US$
months earlier.
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
At the time Bluestone said it was likely
Managing No of Total Share Managing No of Total Share
to issue two or three prime RMBS deals a
bank or group issues US$(m) (%) bank or group issues US$(m) (%)
year as well as an annual non-conforming
1 JP Morgan 143 40,777.12 9.6 1 JP Morgan 290 135,746.35 13.0
RMBS.
2 Wells Fargo 133 34,846.92 8.2 2 Credit Suisse 291 109,274.61 10.5
NAB was arranger and joint lead
3 Barclays 117 34,715.79 8.2 3 Citigroup 247 101,317.14 9.7
manager with CBA and Macquarie Bank for
4 Citigroup 121 31,956.71 7.5 4 Wells Fargo 265 97,067.30 9.3
Thursday’s transaction.
5 Bank of America 109 27,689.98 6.5 5 Goldman Sachs 278 90,851.93 8.7
The A$115m of Class A1S and A$260m
6 Credit Suisse 109 27,521.70 6.5 6 Morgan Stanley 204 83,300.43 8.0
of Class A1L notes with 0.6 and 2.9-year
7 RBC 92 25,828.83 6.1 7 Bank of America 238 78,204.48 7.5
WALs priced 60bp and 105bp wide of one-
8 Goldman Sachs 99 24,606.04 5.8 8 Barclays 211 55,628.89 5.3
month BBSW.
9 Deutsche Bank 106 23,690.01 5.6 9 Deutsche Bank 167 40,495.49 3.9
The A$67m of Class A2, A$22.5m of
10 Morgan Stanley 53 13,932.93 3.3 10 Nomura 106 29,657.06 2.8
Class B, A$13m of Class C, A$9.5m of Class
Total 719 424,468.40 Total 1,649 1,042,805.08
D, A$4m of Class E and A$4.5m of Class F
Excludes MBS. Including securitisations (Euro, foreign, global and domestics, excluding
notes, with 4.2, 4.2, 4.2, 4.2, 3.8 and 1.9- CDOs) and PFI bonds.
year WALs priced at one-month BBSW Source: Refinitiv SDC code: F14 Source: Refinitiv SDC code: B16b

STRUCTURED FINANCE – ALL INTL ISSUERS

GLOBAL CDOs ALL EUROMARKET CDOs
BOOKRUNNERS: 1/1/2021 TO DATE
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 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 US$(m) (%)
1 Credit Suisse 179 35,641.33 9.1
1 JP Morgan 49 17,895.22 10.7 1 JP Morgan 49 17,827.21 11.6
2 Barclays 145 33,731.74 8.6
2 Barclays 40 14,660.89 8.8 2 Barclays 40 14,660.89 9.5
3 Citigroup 126 33,524.23 8.5
3 Jefferies 37 14,045.93 8.4 3 Jefferies 35 13,656.96 8.9
4 Goldman Sachs 150 33,421.52 8.5
4 Citigroup 36 13,968.86 8.4 4 Goldman Sachs 36 12,525.90 8.1
5 Bank of America 125 30,094.62 7.6
5 Goldman Sachs 37 12,733.19 7.6 5 Morgan Stanley 34 12,249.64 7.9
6 JP Morgan 106 28,041.66 7.1
6 Morgan Stanley 36 12,607.44 7.6 6 Citigroup 31 12,147.20 7.9
7 Deutsche Bank 125 25,386.26 6.4
7 Wells Fargo 37 11,997.11 7.2 7 Natixis 20 10,363.99 6.7
8 Wells Fargo 97 24,452.92 6.2
8 Natixis 20 10,363.99 6.2 8 Bank of America 24 9,532.16 6.2
9 Morgan Stanley 99 21,539.51 5.5
9 Bank of America 24 9,532.16 5.7 9 BNP Paribas 19 8,761.29 5.7
10 BNP Paribas 61 15,443.86 3.9
10 BNP Paribas 19 8,761.29 5.3 10 Credit Suisse 18 7,675.21 5.0
Total 731 393,594.65
Total 355 166,567.61 Total 326 154,132.83
Includes securitisations, PFI bonds, self-funded issues and credit-linked
Including Euro, foreign, global, US domestics. Excludes global and domestic. notes. Excludes US global ABS/MBS and CDOs.
Source: Refinitiv SDC code: B12 Source: Refinitiv SDC code: J11 Source: Refinitiv SDC code: J10c

36 International Financing Review December 11 2021

 STRUCTURED FINANCE

Kiwi RMBS market flies high

„ RMBS Increased deal flow boosts confidence as banks await new instrument

The New Zealand market for residential
mortgage-backed securities has enjoyed, by
some distance, its busiest year on record with
five deals from four non-bank lenders raising a
combined NZ$1.4bn (US$951m).
The total includes two new entrants,
BLUESTONE and BASECORP, as their warehousing
facilities became large enough to be termed
out with sufficient high-quality assets and their
performance histories met the requirements to
obtain ratings.
“The New Zealand ABS market spent a longer
time than others, including Australia, recovering
from the global financial crisis which was
blamed, rightly or wrongly, on the asset class,”
said Simon O’Connell, director of structured
finance at Westpac New Zealand, which has
been on every New Zealand ABS and RMBS deal
since 2010.
“The buyside is becoming more comfortable
with securitisations again, in part reassured
by the reserve bank’s greater interest in the
market and a more consistent deal flow which
encourages more investor research, knowing
that further issues are in the pipeline.”
O’Connell noted that New Zealand’s rapidly
expanding retirement investment funds, most
notably KiwiSaver, are increasing their exposure
to ABS, which provide a better return than other
high-quality assets.
Beside local investors, O’Connell said
Australian and Asian accounts had participated
in recent transactions, though deal sizes are still
too small to target US or European investors.
Basecorp sold its second RMBS on Monday,
the NZ$250m BASECORP 2021-2 TRUST non-
conforming offering. The NZ$150m of Class
A1 notes with 40% support and a 2.0-year
weighted-average life priced 90bp wide of one-
month BKBM.
Basecorp’s first RMBS in March, the
NZ$250m Basecorp RMBS 2021-1 Trust, was
privately placed with no pricing disclosed.
Bluestone opened its account on December
2 with the NZ$250m BLUESTONE NZ PRIME
2021-1 TRUST while Resimac sold the NZ$300m
Resimac Prime Trust Series 2021-1 in September,
a month after Avanti Finance printed the
NZ$350m Avanti RMBS 2021-1.
Before this year, Resimac and Avanti had
been the only Kiwi RMBS issuers since 2010
with respectively four and three transactions
previously.
Resimac issued NZ$150m, NZ$250m,
NZ$250m and NZ$300m of RMBS in 2014,
2017, 2019 and 2020 while Avanti raised
NZ$200m, NZ$200m and NZ$250m from its
first three deals in 2018, 2019 and 2020.
WAITING FOR RMOS
Non-banks, which despite recent growth sell
only 2.5% of New Zealand mortgages, dominate
RMBS as the country’s four major banks and
Kiwibank continue to use offshore covered bonds
and self-securitised or internal RMBS (I-RMBS)
for their mortgage-backed funding needs.
ASB Bank, Westpac New Zealand and Bank
of New Zealand accessed the deep European
covered bond market in May and June with
respective €850m (US$960m) 10-year,
€750m seven-year and €750m seven-year
trades while Kiwibank issued a A$500m
(US$360m) five-year covered Kangaroo in
September 2020.
Banks have no interest in adding public RMBS
offerings to their wholesale funding tool kits
given the time and extra resources required to
establish new programmes while they await
the Reserve Bank’s stalled efforts to boost the
domestic mortgage securitisation market by
introducing a new instrument.
In November 2017 the RBNZ proposed to
replace I-RMBS with residential mortgage
obligations – a cross between covered bonds
and RMBS.
The consultation paper said RMOs would
improve the risk position of the RBNZ by
promoting the use of higher-quality and more
liquid mortgage bonds as collateral in the bank’s
lending operations.
The proposal drew early criticism from the
banks and the two sides continue to argue over
what the new instrument should look like and
whether it will offer sufficient cost benefits.
In July this year the RBNZ deferred
development of RMOs until after the borrowing
window for the Funding for Lending Programme
closes in December 2022 because I-RMBS are
the primary source of collateral in exchange for
the term funding provided via the FLP.
“The bank recognises the importance of
a robust mortgage bond collateral standard
in New Zealand and remains committed to
contribute to a sustainable securitisation market
over the long term,” the RBNZ said.
A local DCM banker believes the RBNZ is
committed to ending I-RMBS. “This will leave
banks with little option but to adopt RMOs
in order to maintain sufficiently high liquidity
ratios,” he said.
John Weavers

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International Financing Review December 11 2021 37

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 10/12/2021
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

SSAR
EUROS
Dec 8 2021 Schleswig-Holstein €300m incr Oct 29 2026 0.01 - - -
(€800m)
Dec 9 2021 EIB €250m incr May 15 2026 0.375 103.258 MS-21 -0.357
(€1.85bn)
NON CORE
Dec 8 2021 Stockholms Lans Landsting NKr2bn Dec 10 2027 1 105.562 ~3mN+7 -
Dec 8 2021 Norrkopings kommun SKr600m Dec 15 2026 0.605 100 - 0.605

Dec 9 2021 NTTC A$70m incr Mar 21 2051 3 99.98 ACGB+72 3

(A$150)
CORPORATES
US DOLLARS
Dec 6 2021 BAKER HUGHES CO- US$600m Dec 15 2026 2.061 100 T+85 2.061
OBLIGOR
Dec 6 2021 BAKER HUGHES CO- US$650m Dec 15 2023 1.231 100 T+60 1.231
OBLIGOR
Dec 6 2021 Dell International US$1bn Dec 15 2041 3.375 99.668 T+155 3.398

Dec 6 2021 Dell International US$1.25bn Dec 15 2051 (Jun 2051) 3.45 99.963 T+170 3.452

Dec 6 2021 Ecolab US$500m Dec 15 2023 0.9 99.931 T+30 0.935

Dec 6 2021 Ecolab US$850m Dec 15 2051 2.7 99.755 T+95 2.712

Dec 6 2021 Ecolab US$500m Feb 1 2027 1.65 99.97 T+45 1.656

Dec 6 2021 Ecolab US$650m Feb 1 2032 2.125 99.962 T+70 2.129

Dec 6 2021 Newmont Mining US$1bn Jul 15 2032 (Apr 2032) 2.6 99.898 T+117 2.611

Dec 6 2021 Roche Holding US$2bn Dec 13 2028 1.93 100 T+55 1.93

Dec 6 2021 Roche Holding US$2bn Dec 13 2031 2.076 100 T+65 2.076

Dec 6 2021 Roche Holding US$2bn Dec 13 2051 2.607 100 T+85 2.607

Dec 6 2021 Wisconsin Energy Corp US$500m Dec 15 2028 (Oct 2028) 2.2 99.761 T+85 2.237

Dec 7 2021 Emerson Electric US$1bn Dec 21 2028 (Oct 2028) 2 99.779 - 2.034

Dec 7 2021 Emerson Electric US$1bn Dec 21 2031 (Sep 2031) 2.2 99.688 - 2.235

Dec 7 2021 Emerson Electric US$1bn Dec 21 2051 (Jun 2051) 2.8 99.778 - 2.811

Dec 7 2021 GLP Capital US$800m Jan 15 2032 (Oct 2031) 3.25 99.376 T+185 3.323

Dec 7 2021 Merck & Co US$1bn Dec 10 2028 (Oct 2028) 1.9 99.824 - 1.927

Dec 7 2021 Merck & Co US$2bn Dec 10 2031 (Sep 2028) 2.15 99.794 - 2.173

Dec 7 2021 Merck & Co US$2bn Dec 10 2051 (Jun 2051) 2.75 99.756 - 2.762

Dec 7 2021 Merck & Co US$1.5bn Dec 10 2061 (Jun 2061) 2.9 99.718 - 2.912

Dec 7 2021 Merck & Co US$1.5bn Jun 10 2027 (May 2027) 1.7 99.958 - 1.708

Dec 7 2021 Western Digital Corporation US$500m Feb 1 2029 (Dec 2028) 2.85 99.816 - 2.879

Dec 7 2021 Western Digital Corporation US$500m Feb 1 2032 (Nov 2031) 3.1 99.726 - 3.132

Dec 8 2021 Athene Holding US$500m May 15 2052 3.45 99.983 - 3.451

Dec 8 2021 NextEra Energy Capital US$1bn Jan 15 2027 1.875 99.931 T+62 1.889
Holdings
Dec 8 2021 NextEra Energy Capital US$1bn Jan 15 2032 2.44 99.972 T+92 2.443
Holdings
Dec 8 2021 NextEra Energy Capital US$500m Jan 15 2052 3 99.781 T+112 3.011
Holdings

38 International Financing Review December 11 2021

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

- - - NR/NR/AAA Deka/LBBW -

- - - Aaa/AAA/AAA/AAA BofA/LBBW -

- - - - SEB -
- - - NR/AA+/-/ HCM -
Cicero:2PO
ACGB+72 - - Aa3 Daiwa -

T+110/+115, T+90 9 US$3bn A3/A- JPM/MS Adds books/NIC

area (+/-5), T+85
T+80 area, T+65 9 US$2.5bn A3/A- JPM/MS -
area (+/-5), T+60
IPT T+187.5, T+155 8 US$4.5bn Baa3/BBB/BBB Barc/BofA/Citi/JPM/CS/WFS -
(the #)
T+200 area, T+170 7 US$3.5bn Baa3/BBB/BBB Barc/BofA/Citi/JPM/CS/WFS -
(the #)
T+60 area, T+30 - US$2bn A3/A-/A- BofA/Barc/GS/JPM -
(the #)
T+115 area, T+95 11 US$2.5bn A3/A-/A- BofA/Barc/GS/JPM -
(the #)
T+70 area, T+45 - US$2bn A3/A-/A- BofA/Barc/GS/JPM -
(the #)
T+90 area, T+70 7 US$1.75bn A3/A-/A- BofA/Barc/GS/JPM -
(the #)
T+145 area, T+120 -3 US$3.5bn Baa1/BBB/- BMO/CS/GS/JPM -
area (+/-3), T+117
T+75 area, T+60 8 US$5.25bn Aa3/AA/AA BNPP/Citi/DB/JPM -
area (+/-5), T+55
T+85 area, T+70 8 US$4.75bn Aa3/AA/AA BNPP/Citi/DB/JPM -
area (+/-5), T+65
T+105 area, T+90 8 US$5bn Aa3/AA/AA BNPP/Citi/DB/JPM -
area (+/-5), T+85
T+110 area, T+90 3 US$1.25bn Baa1/BBB+/BBB+ JPM/PNC/Scotia/USB -
area (+/-5), T+85
T+80 area, T+65 -1 US$2.1bn A2/A Citi/GS -
area (+/- 5), T+60
T+95 area, T+80 -1 US$2.3bn A2/A Citi/GS -
area (+/-5), T+75
T+120/+125, T+105 1 US$2.6bn A2/A Citi/GS -
area (+/-5), T+100
T+220 area, T+190 3 US$3.3bn Baa1/BBB-/BBB- BofA/FITB/JPM/WFS -
area (+/-3), T+185
T+75 area, T+50 (the 3 US$5.8bn A1/A+/A+ DB/BofA/Barc/CS/GS -
#), T+50
T+90 area, T+70 (the 3 US$7.4bn A1/A+/A+ DB/BofA/Barc/CS/GS -
#), T+70
T+115 area, T+95 2 US$7.6bn A1/A+/A+ DB/BofA/Barc/CS/GS -
(the #), T+95
T+130 area, T+110 2 US$5.7bn A1/A+/A+ DB/BofA/Barc/CS/GS -
(the #), T+110
T+65 area, T+45 3 US$5.5bn A1/A+/A+ DB/BofA/Barc/CS/GS -
(the #), T+45
T+180 area, T+150 -1 US$4.4bn Baa3/BB+/BBB- BofA/JPM/MUFG -
area (+/- 5), T+145
T+200 area, T+170 -1 US$3.4bn Baa3/BB+/BBB- BofA/JPM/MUFG -
area (+/-5), T+165
T+180 area, T+160 - - None/A-/BBB BofA/MS/GS/WFS -
area (+/-3), T+157
T+90 area, T+65 - - Baa1/BBB+/A- BofA/MUFG/CS/GS/JPM/Scotia -
area (+/- 3) , T+62
T+120 area, T+95 - - Baa1/BBB+/A- BofA/MUFG/CS/GS/JPM/Scotia -
area (+/- 3), T+92
T+140 area, T+115 - - Baa1/BBB+/A- BofA/MUFG/CS/GS/JPM/Scotia -
area (+/- 3), T+112

International Financing Review December 11 2021 39

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 10/12/2021 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Dec 9 2021 NextEra Energy Capital US$600m Mar 15 2082 3.8 100 T+254.7 3.8
Holdings
Dec 9 2021 Qorvo US$500m Dec 15 2024 (Dec 2023) 1.75 99.814 - 1.814

EUROS
Dec 6 2021 NTT Corp €650m Dec 13 2025 0.082 100 MS+27 0.082

Dec 6 2021 NTT Corp €850m Dec 13 2028 0.399 100 MS+45 0.399

Dec 7 2021 Orange €1bn Dec 16 2033 0.625 98.741 MS+55 0.735

Dec 9 2021 Aroundtown €1.25bn Apr 15 2027 0.375 97.965 MS+88 0.766

NON CORE
Dec 10 2021 Centuria Industrial Reit A$350m Dec 2027 3.026 100 ASW+135 3.026

Dec 7 2021 Intea Fastigheter SKr150m incr Sep 1 2025 3mS+155 - - -

(SKr1.15bn)
FINANCIALS
US DOLLARS
Dec 6 2021 ABN Amro US$1bn Dec 13 2029 (Dec 2028) 2.47 100 T+110 2.47

Dec 6 2021 ABN Amro US$1bn Mar 13 2037 (Dec 2031) 3.324 100.003 T+190 3.324

Dec 7 2021 GA Global Funding Trust US$600m Dec 8 2023 1.25 99.931 - 1.285

Dec 7 2021 JPMorgan Chase & Co US$2.35bn Dec 10 2025 (Dec 2024) 1.561 100 T+60 1.561

Dec 7 2021 JPMorgan Chase & Co US$400m Dec 10 2025 (Dec 2024) SOFR+60 100 SOFR+60 -

Dec 8 2021 Brighthouse Financial Global US$500m Dec 15 2023 1.2 99.951 - 1.225
Funding
Dec 8 2021 Rabobank US$1.25bn Dec 15 2027 (Dec 2026) 1.98 100 T+73 1.98

Dec 8 2021 Toronto-Dominion Bank US$500m Dec 13 2024 1.25 99.927 T+33 1.275

EUROS
Dec 7 2021 Westpac Securities NZ €750m Dec 14 2026 0.427 100 MS+55 0.427
(London Branch)
JAPANESE YEN
Dec 9 2021 BPCE ¥25bn Dec 16 2026 0.302 100 Tonar swaps+33 0.302
(the #)
Dec 9 2021 BPCE ¥9bn Dec 16 2027 (Dec 2026) 0.512 100 Tonar swaps+54 0.512
(the #)

Dec 9 2021 BPCE ¥8.7bn Dec 16 2031 0.439 100 Tonar swaps+39 0.439
(the #)

Dec 9 2021 BPCE ¥74.6bn Dec 16 2031 (Dec 2026) 1.1 100 Tonar swaps+112.8 1.2

Dec 9 2021 BPCE ¥14.9bn Dec 16 2031 (Dec 2030) 0.728 100 Tonar swaps+70 0.728
(the #)

Dec 9 2021 BPCE ¥5.8bn Dec 16 2036 (Dec 2031) 1.25 100 Tonar swaps+120.1 1.25

40 International Financing Review December 11 2021

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

4.375% area, 3.8% - - Baa2/BBB/BBB CA-CIB/Barc/BNPP/Citi/MS/RBC/ -

WFS
Very low T+100s, - - Ba1/BBB-/BBB+ BofA/Citi/WFS -
T+90 area (+/-5),
T+85

MS+55 area, 1 €3bn NR/A/-/JCR AAA/ JPM/MS/BofA/GS/BNPP/ -

MS+30/+35, MS+27 R&I AA+ Nomura/Miz/SMBC Nikko/
Daiwa
MS+70 area, MS+50 10 €3.5bn NR/A/-/JCR AAA/ JPM/MS/BofA/GS/BNPP/ -
area, MS+45 R&I AA+ Nomura/Miz/SMBC Nikko/
Daiwa
MS+80/+85, 5 €5.5bn Baa1/BBB+/BBB+ CA-CIB/MS/BBVA/BNPP/CIC/Citi/ Ger/Aus 29%, UK 25%, Fr 21%,
MS+55/+60 WPIR, DB/ING Benelux 10%, Nordics 7%, Switz 3%,
MS+55 Other 5%. AM 57%, Ins/PFs 16%,
CB/OI 14%, Bks/PB 9%, HF 2%,
Other 2%.
MS+115/+120, 5 €3.7bn NR/BBB+ BNPP/Citi/DB/GS/Santan -
MS+90 area (+/-2
WPIR), MS+88

ASW+145 area, - - Baa2 CBA/WBC -

ASW+135/+140
area, ASW+135
- - - NCR BBB+ Nordea -

T+135 area, T+110 5 US$2bn Baa1/BBB/A/ ABN/Citi/GS/BofA/MS -

(the #), T+110 Sustainalytics:ESG
17.9/100,ISS
ESG:C+ Prime,
Env 1, Soc 1, Gov 3
T+215 area, T+190 5 US$2.5bn Baa2/BBB-/BBB+ ABN/Citi/GS/BofA/MS/StCh -
(the #), T+190
T+70 area, T+60 (the 5 US$750m A3/A-/A- DB/BNPP/MS/WFS -
#), T+60
T+175 area, T+60 4 - A2/A-/AA- JPM -
(the #), T+60
SOFR Equiv, - - A2/A-/AA- JPM -
SOFR+60
T+70 area, T+55 - - A3/A+ Barc/CS/GS/USB -

T+90/+95, T+73 (the - - Aa2/A-/A+ BofA/Barc/GS/MS/Rabo -

#), T+73
Mid-High T+40s, - - Aa3/A/- Academy/JPM/RSeelaus/TD/Siebert -
T+33

MS+75 area, MS+55 10 €2.85bn A1/AA- Barc/HSBC/JPM/WBC -

the #

Tonar swaps+33 - - A1/A/A+/R&IA+ MUMSS/Miz/Natx/Nomura -

(the #)
Tonar - - Baa1/BBB+/A/ MUMSS/Miz/Natx/Nomura -
swaps+54/+55, R&I:A
Tonar swaps+54
(the #)
Tonar - - A1/A/A+/R&IA+ MUMSS/Miz/Natx/Nomura -
swaps+39/+40,
Tonar swaps+39
(the #)
1.05%/1.1%, 1.1% - - Baa2/BBB/A-/R&I:A MUMSS/Miz/Natx/Nomura -
(the #)
Tonar - - Baa1/BBB+/A/ MUMSS/Miz/Natx/Nomura -
swaps+69/+70, R&I:A
Tonar swaps+70
(the #)
1.25% (the #) - - Baa2/BBB/A-/R&I:A MUMSS/Miz/Natx/Nomura -

International Financing Review December 11 2021 41

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 10/12/2021 (CONTINUED)
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

STERLING
Dec 6 2021 abrdn £210m Perpetual (Dec 2026) 5.25 100 G+470.9 5.25

SWISS FRANCS
Dec 7 2021 Banque Cantonale Vaudoise SFr125m Dec 22 2033 0.2 100.148 Saron MS+20 0.188

NON CORE
Dec 3 2021 Skandiabanken SKr250m incr Nov 24 2026 3mS+75 102.94 3mS+15 -
(SKr2.45bn)
Dec 3 2021 Skandiabanken SKr700m incr Nov 24 2026 3mS+75 102.941 3mS+15 -
(SKr2.2bn)
Dec 3 2021 Skandiabanken SKr250m incr Nov 24 2026 3mS+75 103.014 3mS+15 -
(SKr2.7bn)
Dec 6 2021 Bluestep Bank SKr200m incr Oct 20 2026 3mS+100 - 6mS+30 -
(SKr1.7bn)
Dec 8 2021 Bank of Queensland A$275m Dec 15 2022 0 100 3mBBSW+27 -
Dec 9 2021 AMP Bank A$125m Dec 16 2024 0 100 3mBBSW+90 -
Dec 8 2021 SBAB SKr950m incr Sep 21 2026 75 101.053 3mS+53 -
(SKr2.4bn)
Dec 9 2021 Lansforsakringar Bank SKr750m incr Oct 5 2026 3mS+75 101.063 3mS+53 -
(SKr1.25bn)
Dec 9 2021 Resurs Bank SKr50m incr Nov 15 2024 3mS+107 - - -
(SKr600)
COVERED BONDS
EUROS
Dec 8 2021 BNS €1.75bn Dec 15 2027 0.01 100.084 MS+6 -0.004
STERLING
Dec 7 2021 CIBC £1bn Dec 15 2025 SONIA+100 102.86 SONIA+28 -

Dec 10 2021 BayernLB £300m Dec 14 2024 1 99.757 G+68 1.083

HIGH YIELD
US DOLLARS
Dec 6 2021 DIRECTV Holdings US$1.4bn Aug 15 2027 (Aug 2025) 5.875 101.75 T+425 5.444
LLC and DIRECTV
Financing Co
Dec 6 2021 Ritchie Bros auctioneers US$600m Dec 15 2031 (Dec 2026) 4.75 100 T+328 4.75
Dec 8 2021 Dun & Brad US$460m Dec 15 2029 (Dec 2026) 5 100 - 5

Dec 8 2021 II-VI Inc US$990m Dec 15 2029 (Dec 2026) 5 100 - 5

Dec 8 2021 Southwestern Energy US$1.15bn Feb 1 2032 (Feb 2030) 4.75 100 - 4.75
Company

Dec 8 2021 Standard Industries US$500m incr Jul 15 2030 (Jul 2028) 4.375 99.375 - 4.463
(US$1.6)
Dec 9 2021 HOWARD MIDSTREAM US$400m Jan 15 2027 6.75 100 T+551.9 6.75
ENERGY PARTNERS

EUROS
Dec 9 2021 WP/AP Telecom Holdings €550m Jan 15 2030 (Jan 2027) 5.5 100 B+597 5.5
III BV

Dec 9 2021 WP/AP Telecom Holdings €800m Jan 15 2029 (Jan 2027) 3.75 100 B+426 3.75
IV BV

NON CORE
Dec 6 2021 Ritchie Bros auctioneers C$425m Dec 15 2029 (Dec 2024) 4.96 100 GOC+346.2 4.95

42 International Financing Review December 11 2021

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

6% area, 5.5% area, - £1.65bn Baa2/BBB- Barc/BofA/HSBC/JPM UK 65%, US O/S 12%, Switz 8%,
5.25% Fr 5%, Nordics 3%, Other 7%.
AM/FM 84%, Bks 8%, Ins/PF 3%,
Other 5%.

Saron MS+19/+21, - - NR/AA BCV -

Saron MS+20

- - - Aaa SEB -

- - - Aaa SEB -

- - - Aaa Danske -

- - - Aa1 Danske -

3mBBSW+27 - - A3/BBB+/A- ANZ -

3mBBSW+90 - - Baa2/BBB CBA/UBS/WBC -
- - - Baa1/BBB+ Danske/Swed -

- - - A3/A- Danske/Swed -

- - - - SEB -

MS+10 area, MS+6 1 €2.4bn Aaa/NR/AAA/AAA CMZ/HSBC/ING/Natx/Scotia -

SONIA+30 area, 1 £1.1bn Aaa/NR/AAA CIBC/NatWest/Nomura/RBC -

SONIA+28
G+72 area 1 £785m Aaa CS -

101.50 (+/- 0.25), - - Ba3/BB/BBB- CS/DB/HSBC/GS/Miz/MUFG/UBS/ -

101.75 Barc/Jeff/TPG/Loop

4.75%/5%, 4.75% - - Ba3/BB+ GS/RBC/BofA -

5%/5.25% - - Caa1/B-/BB- GS/BofA/JPM/RBC/Barc/Citi/ -
Truist/WFS/Citizens/HSBC/Miz/
TD/MUFG/BMO/DB/SMBC/
Natx/Jeff
5.5% area, 5.25% - - B2/B+/BB JPM/PNC/Citizens/BMO/HSBC/Miz/ -
area, 5% MUFG/TD
5%/5.25%, 4.75%/5 - - Ba3/BB/BB BofA/Citi/JPM/Miz/MUFG/ -
% PNC/RBC/Truist/WFS/
Regions/CA-CIB/FITB/GS/
MS/CIBC/Citizens/CS/HSBC/
SMBC
Px 99.375 - - B1/BB Citi/DB/BNPP/JPM/Miz/TD -

6.75%/7%, 6.75% - - B3/B RBC/Southcoast/CIBC/Citizens/ -

MUFG/TD/Truist/ING/Regions/USB/
SMBC

5.5%/5.75%, 5.5% - - Caa1/CCC+ Barc/DB/MS/ABN/BNPP/ -

CMZ/CS/ING/Jeff/KKR/Miz/
MUFG/NatWest/Nomura/
Rabo/RBC/Santan/SMBC/
SG/Uni/StCh
3.875% area, 3.75% - - B1/B Barc/DB/MS/ABN/BNPP/ -
CMZ/CS/ING/Jeff/KKR/Miz/
MUFG/NatWest/Nomura/
Rabo/RBC/Santan/SMBC/
SG/Uni/StCh

5% area, 5% - - Ba3/BB+ GS/RBC/BofA -

International Financing Review December 11 2021 43

GLOBAL DEBT: SOVEREIGN FOREIGN CURRENCY LONG-TERM RATINGS (10/12/2021)
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+ AA AA+ Laos Caa2 n Caa2 – – CCC B–
Albania B1 Ba2 B+ BB – – Latvia A3 Aaa A AAA A– AAA
Andorra – – BBB AAA BBB+ A+ Lebanon C Ca SD CC RD CCC
Angola B3 B3 CCC+ CCC CCC B Lesotho – – – – Bn B+
Argentina Ca Caa3 CCC+ CCC+ CCC B– Liechtenstein – Aaa AAA AAA – –
Armenia Ba3 Ba1 – – B+ BB– Lithuania A2 Aaa A AAA A AAA
Aruba – – BBB BBB BB BB+ Luxembourg Aaa Aaa AAA AAA AAA AAA
Australia Aaa Aaa AAA AAA AAA AAA Macau Aa3 Aaa – – AA AAA
Austria Aa1 Aaa AA+ AAA AA+ AAA Macedonia (FYR) – – BB– BB BB+ n BBB–
Azerbaijan Ba2 p Ba2 BB+ BB+ BB+ BB+ Malaysia A3 Aa2 A– n A+ BBB+ A
Bahamas Ba3 Baa3 B+ B– – – Maldives Caa1 B3 – – B– B
Bahrain B2 n B1 B+ BB– B+ BB+ Mali Caa1 B2 – – – –
Bangladesh Ba3 Ba2 BB– B– BB– BB– Malta A2 n Aaa A– p AAA A+ AAA
Barbados Caa1 B2 B– B– – – Mauritius Baa2 n A1 – – – –
Belarus B3 n B3 Bn B Bn B Mexico Baa1 n Aa3 BBB A BBB– BBB+
Belgium Aa3 Aaa AA AAA AA– AAA Moldova B3 B2 – – – –
Belize Caa3 n Caa2 B– B– – – Mongolia B3 B3 B B+ B B+
Benin B1 Ba1 B+ BBB– B+ BB– Montenegro B1 p Baa3 B AAA – –
Bermuda A2 Aaa A+ AA+ – – Montserrat – – BBB– BBB– – –
Bolivia B2 n B2 B+ B+ B B Morocco Ba1 Baa2 BB+ BBB BB+ BB+
Bosnia Herzegovina B3 B3 B BB– – – Mozambique Caa2 Caa1 CCC+ CCC+ CCC B–
Botswana A3 n A1 BBB+ A – – Namibia Ba3 Ba1 – – BB n BB+
Brazil Ba2 Baa2 BB– BB+ BB– n BB Netherlands Aaa Aaa AAA AAA AAA AAA
Bulgaria Baa1 Aa2 BBB A BBB p A– New Zealand Aaa Aaa AA+ AAA AA AAA
Cambodia B2 B1 – – – – Nicaragua B3 B2 B– B– B– B–
Cameroon B2 B1 Bn BBB– Bn B+ Nigeria B2 B2 B– B– B B
Canada Aaa Aaa AAA AAA AA+ AAA Norway Aaa Aaa AAA AAA AAA AAA
Cape Verde – – B– B+ B– B Oman Ba3 Ba2 B+ p BB– BB– n BB+
Cayman Islands Aa3 Aaa – – – – Pakistan B3 B2 B– B– B– B–
Chile A1 n Aaa A AA– A– A+ Panama Baa2 A1 BBB n AAA BBB– n A
China A1 Aa1 A+ A+ A+ A+ Papua New Guinea B2 n B1 B– B– – –
Colombia Baa2 A1 BB+ BBB BB+ BBB– Paraguay Ba1 Baa2 BB BB+ BB+ BB+
Congo (DR) Caa1 p Caa1 CCC+ p CCC+ – – Peru Baa1 Aa3 BBB+ n A BBB+ n A–
Congo (Rep) Caa2 B2 CCC+ BBB– CCC B– Philippines Baa2 A2 BBB+ A– BBB n BBB+
Cook Islands – – B+ AAA – – Poland A2 Aa3 A– A+ A– AA–
Costa Rica B2 ** Ba3 B– n BB– Bn B+ Portugal Baa2 Aa2 BBB AAA BBB AA
Cote d’Ivoire Ba3 Baa3 BB– BBB– BB– BB Qatar Aa3 Aa1 AA– AA AA– AA
Croatia Ba1 A2 BBB– BBB+ BBB p A– Ras al–Khaimah – – A– AA+ A AA+
Cuba Ca Ca – – – – Romania Baa3 n A2 BBB– A– BBB– n BBB+
Curacao – – BBB–n BBB– – – Russia Baa3 Baa2 BBB– BBB BBB BBB
Cyprus Ba1 A1 BBB– p AAA BBB– A Rwanda B2 n B1 B+ n B+ B+ n B+
Czech Rep Aa3 Aaa AA– AA+ AA– 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+ BB– ** BB– Saudi Arabia A1 Aa2 A– A A A+
Ecuador Caa3 Caa2 B– B– B– B– Senegal Ba3 Baa3 B+ BBB– – –
Egypt B2 Ba3 B B B+ B+ Serbia Ba2 Baa1 BB+ BBB– BB+ BBB–
El Salvador Caa1 n B2 B– n AAA B– n B Seychelles – – – – B+ BB +
Estonia A1 Aaa AA– p AAA AA– AAA Singapore Aaa Aaa AAA AAA AAA AAA
Eswatini B3 B1 – – – – Slovakia A2 Aaa A+ AAA A AAA
Ethiopia Caa2 n Caa1 CCC n CCC CCC B Slovenia A3 Aaa AA– AAA A AAA
Fiji B1 n B1 B+ B+ – – Solomon Islands Caa1 B3 – – – –
Finland Aa1 Aaa AA+ AAA AA+ p AAA South Africa Ba2 Baa2 BB– BB+ BB– n BB
France Aa2 p Aaa AA AAA AA n AAA South Korea Aa2 Aaa AA AAA AA– AA+
Gabon Caa1 B3 – – B– B Spain Baa1 Aa1 An AAA A– AAA
Georgia Ba2 Baa3 BB n BBB– BB BBB– Sri Lanka Caa2 Caa2 CCC +n CCC+ CCC B–
Germany Aaa Aaa AAA AAA AAA AAA Suriname Caa3 n Caa2 SD CCC RD CCC
Ghana B3 n B1 B– B Bn B Sweden Aaa Aaa AAA AAA AAA AAA
Greece Ba3 A3 BB AAA BB BBB+ Switzerland Aaa Aaa AAA AAA AAA AAA
Guatemala Ba1 n Baa3 BB– BB+ BB– BB Taiwan Aa3 p Aaa AA p AAA AA AAA
Honduras B1 Ba3 BB– BB – – Tajikistan B3 B3 B– B– – –
Hong Kong Aa3 Aaa AA+ AAA AA– AAA Tanzania B2 B3 – – – –
Hungary Baa2 A1 BBB A– BBB A Thailand Baa1 A1 BBB+ A BBB+ A–
Iceland A2 Aa2 A A A A+ Trinidad & Tobago Ba2 Baa1 BBB– n BBB – –
India Baa3 A3 BBB– BBB+ BBB– n BBB– Tunisia Caa1 B3 – – B– n B
Indonesia Baa2 A3 BBB n BBB+ BBB BBB Turkey B2 n B2 B+ BB– BB– n BB–
Iraq Caa1 Caa1 B– B– B– B– Turks & Caicos – – BBB+ AAA – –
Ireland A2 p Aaa AA– AAA A+ AAA Uganda B2 Ba3 B B B+ n B+
Israel A1 Aa3 AA– AA+ A+ AA Ukraine B3 B2 B B Bp B
Italy Baa3 Aa3 BBB p AAA BBB c AA c UAE Aa2 Aaa – – AA– AA+
Jamaica B2 Ba3 B+ BB– B+ BB– UK Aa3 Aaa AA AAA AA– AAA
Japan A1 p Aaa A+ AA+ An AAA USA Aaa Aaa AA+ AAA AAA n AAA
Jordan B1 Ba1 B+ BB BB– ** BB Uruguay Baa2 A2 BBB BB– BBB– n BBB+
Kazakhstan Baa2 A3 BBB– BBB BBB BBB+ Uzbekistan B1 p B1 BB– n BB– BB BB
Kenya B2 n Ba3 B B+ B+ n B+ Venezuela C C SD CC – –
Kuwait A1 Aa2 A+ AA– AA n AA+ Vietnam Ba3 p Ba2 BB n BB BB– BB–
Kyrgyzstan B2 n B2 – – – – Zambia Ca Caa3 SD CCC– RD 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

44 International Financing Review December 11 2021

 EMERGING MARKETS China 46 Hungary 47 Turkey 47 Zambia 47 Chile 50 Mexico 50

„ FRONT STORY ESG

Investors mop up Latvia’s ESG debut

Sovereign strikes with upsized ESG bond
LATVIA opened books on its inaugural
sustainability bond on Monday and had no
problem drawing in orders. That helped
leads ratchet in pricing for a minimal new
issue concession, with some even arguing
the deal priced in line with fair value.
day to go,” said a second banker on Monday.
h!Nû%3'ûLABELûALWAYSûHELPSûINûSOMEûSHAPEûORû
form, and did so here.”
,ATVIAûHOLDSûMOREûAPPEALûTOû33!ûBUYERSû
than EM investors. Those accounts
considering the deal were happy to
with the spread set at 6bp over swaps. On
Monday, that bond was seen at 24bp by leads
on the new issue.
Also relevant for judging the pricing of
the new trade, Latvia has a €1.31bn 0%
March 2031, which leads had at around
While it is late in the year and the ENGAGEûWITHûTHEûlNALûORDERûBOOKûTOPPINGû 23bp. Bonds from Lithuania were also used
opportunities to issue are fading fast, Latvia €2.35bn, only slightly down from the as comparables. Estimates for fair value for
decided to take to the market to make the most €2.5bn peak. The spread was set at 25bp. Monday’s deal centred on 24bp–25bp.
of the lack of supply and the relatively low rates Demand was also strong enough to allow Although the sovereign has not issued in
available, especially as conditions are expected
to be less accommodating next year.
“There are often pockets of liquidity left
around at this time of year to mop up
anything that comes out,” said one banker.
Following several days of marketing, both
to talk investors through its framework and
ENGAGEûDIRECTLYûWITHûlXED
the issuer to increase the size to €600m.
Barclays, BNP Paribas and Credit Agricole led
the transaction.
)NAUGURALû%3'ûDEALSûWORKûBESTûWHENû
investors have time to engage with the
issuer and the framework, and therefore,
the fact that the borrower decided to tap the
THEû%3'ûBONDûMARKETûBEFOREûTHEREûHASûBEENû
issuance from some of the country’s state-
owned corporates, such as Augstsprieguma
Tikls and Latvenergo.
,ATVIAûISûFARûFROMûTHEûlRSTû#%%ûSOVEREIGNû
TOûTAPûINTOûDEMANDûFORû%3'ûASSETSû4HISûYEARû
has seen several names enter the market. In
INCOMEûACCOUNTSû market now, when there is no competing *UNEû3LOVENIAû!!!n! ûISSUEDûAûõBNû
on the new issue, the Baltic sovereign (A3/ supply, would have likely worked in its 0.125% July 2031 sustainability bond and
A+/A–) announced a €500m January 2030 at favour, said a banker away from the trade. WASûFOLLOWEDûINTOûTHEûMARKETûBYû3ERBIAû"A
IPTs of mid-swaps plus low 30s.
“The market has opened pretty
constructively this morning, so it was a good
January to usher in hunting season
New year supply from CEEMEA expected to get off to a fast start
Banks are boasting a stacked set of mandates
from CEEMEA that are set to be unveiled
in the market as soon as January comes
around.
“January is going to be crazy, we have
about 10 mandates or thereabouts and I’m
hearing the big Americans have 25,” said a
syndicate banker. “A lot of the trades
which had been delayed were the
corporates, as the sovereigns always had
access. I think we’ll see new issuers in
euros and the other theme is going to be
project bonds.”
A second syndicate banker is also
preparing for a wave of deals.
h7HOûCOMESûlRSTûWILLûBEûTHEûUSUALûLOWû
beta suspects from CEE and the Middle East,”
he said. “The question is which name will it
be from the high-yield front that wants to
come to the fore – maybe Turkey, but then at
what price and at what yield?”
One area that could provide some extra
yield for investors is Africa, with a trader
The sovereign last issued nearly six
months ago – a €500m no-grow January
2029 bond that priced close to fair value,
saying a handful of sovereigns could be in
line to print deals.
“People need to come, we’re waiting on
Kenya, potentially Ghana with a social bond
and Angola has been talking about it too,” he
said. “We could easily see new issuance from
Africa early, although probably not in the
lRSTûWEEKûASûTHEYûWILLûNEEDûTOûGIVEûTIMEûFORû
the market to adjust to the new year.”
“January is going to be crazy,
we have about 10 mandates or
thereabouts and I’m hearing the
big Americans have 25”
The second banker said the pipeline
features those that have been stuck in the
queue for a while, as well as fresh
entrants.
“We are still in a very volatile rates
environment and so issuers have to be
pragmatic about what windows are open to
International Financing Review December 11 2021
"""" ûWHICHûINû3EPTEMBERûISSUEDûITSû
own €1bn 1% 2028 green bond.
Ed Clark
them,” he said. “But it’s looking crazily busy,
with the pipeline getting busier every day
while a lot of deals had been pushed back.
We could be looking at a situation where the
level of supply far outpaces both demand
and the technical side, given we are seeing
OUTmOWSv
%-ûDEBTûHASûRECORDEDûNETûOUTmOWSûFORû
the past four weeks, according to EPFR and
Bank of America, with the latest weekly
lGURESûSHOWINGûABOUTû53MûLEFTûTHEû
asset class.
Investors will be hoping that January’s
trades usher in a more productive year, after
2021 has proved to be a disappointment.
“Total returns year-to-date are negative
both in EM local markets and EM credit,
roughly in line with those of 2018,” said
Barclays. “Also, low yielding EM FX
underperformed in 2021, in line with G10
high beta peers, while high yielding EM
currencies just managed to break even.”
Robert Hogg
45

ASIA-PACIFIC
CHINA
GREENLAND BRAVES MARKET
GREENLAND HOLDING GROUP braved the market
ONû4UESDAYûWITHûAû53MûEIGHT
MONTHû comfortable with it. In the onshore market,
NOTEûISSUEûTHATûBECAMEûTHEûlRSTûOFFSHOREû
deal from the struggling Chinese property
sector in more than a month, following
recent positive policy signals.
4HEûUNRATEDû2EGû3û!UGUSTûûûû
notes were priced at par to yield 8% (on an
YEARûSENIORû
annual basis), unchanged from price guidance.
Last week, though, also saw CHINA
EVERGRANDE GROUP and KAISA GROUP HOLDINGS
enter technical default after both failed to
make interest payments due on bonds (see
Top News for more).
Greenland’s choice to use a very short tenor
was unusual in the offshore market, where most
short-dated notes have a 364-day maturity.
The source said the tenor matched
investor demand and the issuer was also
banks, the rating agency said.
it is very common to issue commercial paper
with a tenor of less than one year.
“I do not expect this will become a trend
offshore,” said the source. But, “the issuer got
the deal done. I think it is positive to the
market, sending a message that developers are
still able to tap the current choppy market.”
!CCORDINGûTOûANû/CTOBERûNOTEûFROMû30û
'REENLANDû(OLDINGû'ROUPûHASû53BNû
of offshore notes due in 2022 and the
bond maturities are “still manageable”
given its cash balance and cash from
offshore projects.
The company also maintains a cross-
BORDERûCASHûPOOLûSUFlCIENTûFORû
repatriating cash from onshore and
continues to have access to its major
WUXI CONSTRUCTION SEALS
GREEN BOND
WUXI CONSTRUCTION AND DEVELOPMENT INVESTMENT
HASûPRICEDûAû53MûTHREE
green bond offering at par to yield
The developer came out directly with The offshore bond market has been ûTHEûTIGHTûENDûOFûlNALûGUIDANCEûOFû
lNALûGUIDANCEûAFTERûlNDINGûSUPPORTûFROMû EFFECTIVELYûSHUTûSINCEûMID
3EPTEMBERûWITHû 1.95%–2% and well inside initial guidance
anchor investors. It achieved its targeted
size, said a source familiar with the
situation. He declined to comment on
whether the bond issue was fairly priced.
The developer’s 5.75% bonds due
3EPTEMBERûûûCLOSEDûATûûONû
Tuesday, yielding 18.3%/11.1%, according to
2ElNITIVûDATA
The source said recent policy signals and
Greenland’s state-owned background
helped. “The deal attracted market orders in
addition to anchors,” he said.
ONLYûAûFEWûDEVELOPERSûSUCHûASû3HIMAOû'ROUPû
Holdings, Redsun Properties Group and
3EAZENû'ROUPûABLEûTOûTAPûTHEûMARKETûVIAû
PUBLICûDEALSû-OSTûOFûTHEûFEWû53ûDOLLARûBONDû
issues from developers since then have been
private placements or club deals.
The last deal from the property sector was
from Ganglong China Property Group,
WHICHûRAISEDû53MûFROMûAûNEWûMONEYû
issue alongside an exchange offer in early
.OVEMBERûTOûRElNANCEûAûBONDûOFFERINGûDUEû
on December 1, according to IFR data. Before
of the 2.5% area.
4HEû2EGû3ûTRANSACTIONûISûTHEûlRSTûGREENû
bond issued by a local Chinese state-
owned corporate issuer to be listed in
Hong Kong, Luxembourg and Macau
simultaneously, according to a banker on
the deal.
“A yield level of below 2% for a
prefecture-level city enterprise was
remarkable,” he said, “Investors are
familiar with the name given that it was
already the third time it visited the
Before the transaction was launched, the THATû$A&Aû0ROPERTIESû'ROUPûSOLDû53Mû offshore market. The green bond nature
People’s Bank of China cut the bank reserve of 13.5% senior notes due April 2023 via a also helped to attract demand.”
ratio requirement by 50bp late on Monday. The private placement in late October. Deal statistics for the transaction were
move was viewed by the market as a signal of (EADQUARTEREDûINû3HANGHAIû'REENLANDû not available at the time of writing but
policy easing amid an economic slowdown. Holding Group was 46.37% indirectly owned orders were said to be in excess of
Also on Monday, the Politburo, the ruling BYûTHEû3HANGHAIû3!3!#ûASûATûEND
3EPTEMBER 53BNûATûlNALûGUIDANCEûINCLUDINGû
Communist Party’s top decision-making body, Greenland Global Investment is the issuer 53MûFROMûTHEûLEADS
said in a meeting chaired by President Xi Jinping and Greenland Holding Group, rated Ba2 Wholly owned subsidiary Xihui Haiwai
that it would “boost the healthy development (under review for downgrade) by Moody’s I Investment Holdings is the issuer and
and the virtuous cycle of the real estate sector”, ANDû"ûNEGATIVE ûBYû30ûISûTHEûGUARANTORû the Wuxi municipal government-owned
according to the state-run Xinhua News Agency. Proceeds will primarily be used for urban infrastructure constructor and
The meeting fuelled speculation that the OFFSHOREûDEBTûRElNANCING lNANCIALûSERVICESûPROVIDERûISûTHEû
government might adopt a more dovish BOC International was sole global guarantor.
approach towards property companies. coordinator, bookrunner and lead manager. The bonds are expected to be rated
BBB+ by Fitch, in line with the guarantor.
ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS 0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEû
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE group debt in accordance with a green
Asia-Pacific Managing No of Total Share lNANCEûFRAMEWORK
Managing No of Total Share bank or group issues US$(m) (%)
bank or group issues US$(m) (%)
1 JP Morgan 329 65,189.13 8.6
SUNSHINE 100 DEFAULTS
1 HSBC 312 32,365.61 8.2 2 Citigroup 334 62,843.13 8.3
2 Citigroup 173 23,448.34 5.9 3 HSBC 416 55,625.27 7.3
Real estate company SUNSHINE 100 CHINA
3 JP Morgan 144 20,468.62 5.2 HOLDINGS has defaulted on its 10.5% 2021
4 Bank of America 197 38,132.19 5.0
4 Standard Chartered 238 19,948.53 5.1 5 Standard Chartered 342 38,038.50 5.0 bonds.
5 Bank of America 111 15,751.59 4.0 6 BNP Paribas 225 34,426.81 4.5 The borrower was supposed to pay the
6 Credit Agricole 145 14,331.54 3.6 7 Goldman Sachs 124 29,981.84 4.0 53MûOUTSTANDINGûPRINCIPALûOFûTHEû
7 BNP Paribas 141 13,813.97 3.5 8 Morgan Stanley 103 21,356.75 2.8 3INGAPORE
LISTEDûBONDSûONû$ECEMBERûûINû
8 Bank of China 232 13,738.86 3.5 9 Credit Agricole 183 20,185.43 2.7 ADDITIONûTOû53MûOFûUNPAIDûINTERESTû
9 Deutsche Bank 110 10,818.40 2.7 10 Deutsche Bank 143 19,367.96 2.6 But the company announced in a stock
10 Citic 258 10,588.07 2.7 Total 1,397 758,720.22 EXCHANGEûlLINGûTHATûLIQUIDITYûISSUESû
Total 918 394,811.62 related to the Chinese property sector’s
Excluding equity-related debt.
Excluding equity-related debt. woes has prevented it from meeting its
Source: Refinitiv SDC code: L4 Source: Refinitiv SDC code: L1 obligations.

46 International Financing Review December 11 2021


The default will trigger cross-default
provisions on other debt instruments,
meaning that the affected notes could
become immediately due if creditors want
TOûACCELERATEûPAYMENTû3UNSHINEûûNOTEDû
INûITSû-ONDAYûlLINGûTHATûITûHASûNOTûYETû
received any such demands from creditors.
Monday’s announcement is only
EMERGING MARKETS ASIA-PACIFIC
resources for new infrastructure projects
with different instruments,” Ekrem
EUROPE/AFRICA Imamoglu said when asked if a bond issue in
international markets was being considered.
4HEûMUNICIPALITYûSECUREDû53MûINû
HUNGARY %UROBONDûlNANCINGûLASTûYEARûTOûFUNDûTHEû
completion of four subway projects around
SOVEREIGN READIES GREEN PANDA Istanbul. The Eurobond, which has a
3UNSHINEûSûLATESTûMISSEDûPAYMENTû)Nû MATURITYûOFûlVEûYEARSûANDûAûûYIELDûSAWû
August, the company failed to repay its 6.5% HUNGARYûISûSETûTOûLAUNCHûTHEûlRSTûGREENû DEMANDûOFûMOREûTHANû53BN
convertible bonds. That default also sovereign Panda bond in China’s interbank Imamoglu did not say in the interview
triggered the cross-default provisions of the bond market on December 14 with a on Monday with Reuters, when the bond
ûûBONDSûASûWELLûASûTHEû3INGAPORE
2MBBNû53M ûTHREE
YEARûDEAL might be launched. His comments come
LISTEDû53MûûSûANDûTHEû(ONGû The sovereign, rated AAA by China Lianhe as Turkey grapples with the fallout from
+ONG
LISTEDû53MûûGREENûS and Baa2/BBB/BBB by global rating agencies, a 45% plunge in the value of the lira
plans to issue the bonds under its 2021 RMB against the dollar this year.
MORE DOWNGRADES FOR AOYUAN green bond issuance programme and its green After last year’s issue, Imamoglu said
bond framework (May 2020), which is aligned the city of 16 million people was only
Rating agencies have downgraded CHINA with the ICMA Green Bond Principles and was RESORTINGûTOûFOREIGNûlNANCINGûAFTERû
AOYUAN GROUP again after the developer said REVIEWEDûBYû#ICEROû3HADESûOFû'REENûASûTHEû repeated requests to obtain funds from
it is unable to make the immediate second-party opinion provider. Turkish state banks failed.
REPAYMENTûOFû53MûTHATûCREDITORSû Proceeds will be remitted offshore and Imamoglu, from the main opposition
demanded following previous downgrades. converted into euros for the issuer’s green Republican People’s Party (CHP), took
Fitch on December 7 lowered the Hong funding programme and will be used for OFlCEûINû*UNEûûAFTERûDEFEATINGûTHEû
Kong-listed Chinese real estate company’s eligible green expenditures in line with candidate of President Tayyip Erdogan’s
issuer and senior bond ratings to C from Hungary’s planned transition to a low AK Party in the mayoral election.
###nûTOûREmECTûITSûVIEWûTHATûhAûDEFAULTûORû carbon, climate-resilient and He is seen by some as a potential
default-like process has begun”. environmentally sustainable economy. contender to challenge Erdogan in the
!ûDAYûBEFOREû30ûCUTû!OYUANSûISSUERû ,IANHEû%QUATORûHASûCERTIlEDûTHATûTHEû 2023 presidential elections, although he
RATINGûTOû3$ûSELECTIVEûDEFAULT ûFROMû###û proposed issue complies with the says he is only focused on his job as
and its senior bond rating to CC from requirements of the Green Bond Endorsed mayor.
CCC–, citing a high vulnerability to non- Project Catalogue (2021 Edition), the ICMA After the election, Turkish state banks
repayment. It subsequently withdrew its Green Bond Principles (June 2021) and the stopped extending loans to Istanbul,
ratings at the company’s request. 3USTAINABLEû$EVELOPMENTû'OALSûANDûSELF
which was run for 25 years by Erdogan’s
)NûAûlLINGûDATEDû$ECEMBERûû!OYUANû
said the non-payments of the obligations,
for which the company and/or members
of the group are borrowers or guarantors,
may trigger the possible acceleration of
repayment by creditors of some of its
OTHERûOFFSHOREûlNANCINGûARRANGEMENTSû)Tû
has not yet reached alternative payment
arrangements with the creditors.
Fitch said it believes Aoyuan’s public
BONDSûAREûNOTûAMONGûTHEû53MûOFû
lNANCINGûAFFECTEDûBYûTHEûDEMANDSûFORû
repayment, because an acceleration of
payment for Aoyuan’s public bonds
regulatory rules of the National Association
of Financial Market Institutional Investors.
The senior unsecured bonds will be
offered to onshore investors, and offshore
institutional investors via Bond Connect.
Bank of China is bookrunner and lead
underwriter.
Hungary made its debut in the Panda
bond market in 2017 with an offering of
Rmb1bn three-year notes at 4.85%. In 2018,
it issued Rmb2bn three-year notes at 4.3%.
In October, Poland, rated A2/A–/A–, priced a
Rmb3bn three-year Panda bond offering in
China’s interbank market at par, to yield 3.2%.
AKP and its Islamist predecessor party,
Imamoglu said previously.
Aside from the subway, the
municipality has invested €500m–€550m
in other projects.
Last month it opened an 85 megawatt
waste incineration and power station, a
biomethanation plant to produce energy
and fertiliser from food waste, and a
WATERûPURIlCATIONûPLANT
Imamoglu said work was continuing
ONûSECURINGûlNANCEûFORûAûNEWûWASTEû
incineration plant and a subway line
between the Istanbul districts of
cannot be triggered solely by rating 4HEûTRANSACTIONûWASûTHEûlRSTûSOVEREIGNû "EYLIKDUZUûANDû3EFAKOYûWHICHûISû
downgrades but must be accompanied by Panda issue since Portugal’s Rmb2bn three- expected to require a €1bn investment.
other events, including a change of year bond in May 2019. He said the municipality aimed for the
control. metro to carry 30% of the city’s passenger
!OYUANûHASû2MBBNû53BN ûOFû
public capital-market debt maturing or
becoming puttable through to end-2022,
INCLUDINGû53MûINûSENIORûNOTESûDUEûINû
*ANUARYûûANDû53MûOFûNOTESûTHATû
turn puttable in June 2022, according to
Fitch.
Moody’s has a Caa2 issuer rating on
Aoyuan and a Caa3 rating on its bonds,
following a downgrade from B2 and B3,
respectively, on November 22. The
outlook was changed to negative from
ratings under review.
TURKEY
ISTANBUL PREPARES INTERNATIONAL
BOND TO FUND INFRASTRUCTURE
ISTANBUL’s mayor said the municipality was
working on a possible international bond to
fund new infrastructure projects, a year
AFTERûTHEû4URKISHûCITYûCOMPLETEDûITSûlRSTû
Eurobond issue.
“We are working both on a bond issue
and our talks are continuing on foreign
International Financing Review December 11 2021
TRAFlCûUPûFROMûAûCURRENTûLEVELûOFû
ZAMBIA
BONDHOLDERS DEMAND DETAILS
OF DEBT RELIEF
A group of ZAMBIA’s international
creditors said on Friday the country
would need to provide more details on
its recently agreed IMF support
programme and its own economic
47
GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 10/12/2021
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

ASIA
Dec 7 2021 Weifang Binhai Investment €80m Dec 12 2022 5.1 100 - 5.1
Development
Dec 6 2021 BoCom HK branch HK$1.2bn Dec 13 2023 0.95 100 - 0.95

Dec 3 2021 Yi Hong International US$100m Dec 8 2024 3.5 100 - 3.5
Development Co
Dec 6 2021 Baoji Investment US$60m Dec 9 2024 3.35 100 - 3.35
Dec 6 2021 Junfeng International Co US$250m Dec 9 2024 2.2 100 - 2.2

Dec 6 2021 MingYang Smart Energy US$200m Dec 14 2024 1.6 100 Yld+1.6 % 1.6
(BVI) Company
Dec 7 2021 Greenko Power II US$1bn Dec 13 2028 (Dec 2027) 4.3 100 - 4.3

Dec 7 2021 Greenland Holding Group US$350m Aug 10 2022 7.974 100 - 8
Dec 7 2021 ITG Holding Investment (HK) US$300m Dec 12 2022 2.15 100 - 2.15

Dec 7 2021 Jinan Shuntong International US$100m Dec 12 2022 2 100 - 2

Co
Dec 7 2021 Wuxi Construction and US$300m Dec 14 2024 1.95 100 - 1.95
Development

Dec 8 2021 CEBI Splendid US$300m Dec 15 2024 2 99.336 T+125 2.23

Dec 8 2021 Sagicor Financial Corp US$150m incr May 13 2028 (May 2026) 5.3 101.5 - 5.023
(US$550)
Dec 8 2021 Yuyao Economic US$100m Dec 13 2024 2.5 100 - 2.5
Development Zone
Construction Investment and
Development
Dec 9 2021 Jingming Yuantong US$165m Dec 14 2024 2.9 100 - 2.9
Development Investment
(BVI) Co

Dec 9 2021 PINGDU CITY STATE- US$200m Dec 16 2024 5 100 - 5

OWNED ASSETS
MANAGEMENT CO LTD

EMEA
Dec 6 2021 Latvia €600m Jan 23 2030 0.25 99.896 MS+25 0.263

Dec 7 2021 Banca Comerciala Romana L600m Dec 9 2028 (Dec 2027) 5.98 100 ROMGB+65 5.98
LATAM
Dec 6 2021 Alsea US$500m Dec 14 2026 7.75 100 - 7.75

Dec 6 2021 Banco De Chile US$500m Dec 9 2031 2.99 97.578 T+185 3.276

Dec 7 2021 Pemex US$1bn Feb 16 2032 (Nov 2031) 6.7 99.976 - 6.7

plans if the two sides were to strike a
debt relief deal.
The group, made up of international
funds that own the country’s now-
defaulted bonds, said it was also crucial
that the likes of China, which has also
leant heavily to cooper-rich Zambia,
provided the same degree of debt relief,
“Inter-creditor equity should also be
of paramount importance in the
authorities’ approach to restoring
debt sustainability,” the group, which
calls itself the Zambia External
Bondholder Committee, said in a
statement.
“To establish a process in which all
Committee expects the authorities to
engage in simultaneous discussions
WITHûTHEû/FlCIALû#REDITORû#OMMITTEEû
for Zambia and the Bondholder
Committee with equality of
information disclosure for both
groups.”
:AMBIAûBECAMEû!FRICASûlRSTû
reports Reuters. PARTIESûHAVEûCONlDENCEûTHEû pandemic-era sovereign defaulter last

48 International Financing Review December 11 2021

 EMERGING MARKETS EUROPE/AFRICA

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

5.5% area, 5.1% - - - HaitongBk/Luso/Central/Haitong Intl -

1.3% area, 0.95% - - NR/A- BoCom/ABCHK/BoC/CCB/CMBCHK/ -

(the #) CA-CIB/HSBC/Industrial/StCh
- - - - Silk Road/Zheshang -

- - - - Fosun Hani/Dongxing/Wilson/TF -
2.7% area, 2.2% - - -/-/BBB+ Guotai Junan/Haitong Intl/Zhongtai/ -
Hua Xia/CMBC Cap/WingLung/CNCB
Capital /CMBCHK/SPDBI/ABCI/
Shenwan Hongyuan/Chiyu
1.9% area, 1.6% - - -/-/A BoC Macau/Luso/CCBA/CCB/
WingLung/SPDB/Industrial
4.625% area, 4.3% - US$2.47bn, 148acs Ba1/NR/BB Barc/BofA/DBS/DB/JPM/HSBC "Asia 39%, EMEA 34%, US 27%. FM
89%, Ins/PF/SWF 9%, Bks/PB 2%.
"
8% - - - BOCI
2.5% area, 2.15% - - - Luso/BoC Macau/ABCI/CISI/SPDBI/
Zheshang/Chiyu/CICC/Guotai Junan/
Xiamen International
2.4% area, 2% - - -/-/A- CCBI/BoC Macau/Luso/WingLung/
BOCOMI/Guotai Junan
2.5%, 1.95%/2% - - NR/NR/BBB+ StCh/CSI/CLSA/OCBC /Hua Xia/ -
WPIR, 1.95% CNCB Capital /BoCom/Industrial/
CMBCHK/Everbright HK/Zhongtai/
SPDB/WingLung
T+170 area, T+125 - US$1.2bn NR/NR/BBB CEB Intl/StCh/SPDB/CCBA/BoCom/ -
(the #) WingLung/Industrial/ABCI/ANZ/
BoC/BOCOMI/CCBI/CNCBI/CISI/
CICC/CMSHK/CMBCHK/CLSA/CMBC
Cap/CNCB Capital /Everbright Sec/
Guosen/Haitong Intl/Huatai/ICBCA/
Nanyang/Natx/Silk Road/SMBC
Nikko/Soochow/SPDBI/Tensant/BEA/
Zhongtai/CSI/Shenwan Hongyuan
- - - -/BB-/BB- JPM -

2.6% area, 2.5% - - Baa3/-/BBB- Guotai Junan/BOSC/Zheshang/ -

(the #) ChaoShang

3.2% area, 2.9% - - -/-/BBB- Central/ABCI/Industrial/Haitong -

Intl/CLSA/CNCB Capital /SunRiver
International/TF/CISI/Shenwan
Hongyuan
5.3% area, 5% - - - Orient/Hua Xia/CNCB Capital / -
Industrial/Donghai/Shenwan
Hongyuan/TF/Guoyuan/GLAM/
CICC/Zhongtai

MS+low 30s, MS+28 0 €2.35bn A3/A+/A-/ISS Barc/BNPP/CA-CIB -

area, MS+26 area ESG:2PO
(+/-1 WPIR), MS+25
- - - NR/NR/BBB+ BCRomana/Erste -

High 7%s - - B1/NR/BB- BBVA/BofA/Santan/Scotia/ -

BCPSecs/MUMSS/Rabo/SMBC
T+200 area, T+195 - US$1.5bn A1/A BofA/Citi/GS/JPM -
area (+/-5), T+185
6% area, 6.7% (the #) - US$5bn Ba3/BBB BofA/Citi/GS/HSBC -

November after years of chronic Zambia’s external debt includes IMF deal and a rise in copper prices,
government overborrowing had AROUNDû53BNûINûINTERNATIONALû which are now double the level they
already left it with far too much debt to BONDSû53BNûTOûMULTILATERALû WEREûWHENû#OVID
ûlRSTûSAVAGEDûTHEû
repay. lending agencies such as the IMF and world economy.
After months of negotiations, last week ANOTHERû53BNûTOû#HINAûANDû#HINESEû “The Committee looks forward to
ITûPROVISIONALLYûAGREEDûAû53BNûTHREE
entities.
year IMF plan that will require it to slash
spending and cut politically-sensitive
subsidies on power, fuel and farming.
engaging with the authorities in a good
The bonds that make up that debt faith and collaborative manner in the
have surged this year following the coming weeks,” the bondholder group
election of a new president keen on an added.
International Financing Review December 11 2021 49
 The bond offering received around ALSEA SEES GOOD DEMAND FOR
53BNûOFûORDERSûFROMûAûVARIETYûOFûINVESTORSû FIVE-YEAR NOTE
AMERICAS INCLUDINGûLARGEû53ûREALûMONEYûACCOUNTS
h)TûWASûWELLûRECEIVEDvûTHEûlRSTûSOURCEû Mexican restaurant operator ALSEA last week
said. The structure of the offering through
CHILE RElNANCINGûANDûTENDERSûWASûEXPECTEDûTOû
mATTENûTHEû0EMEXûYIELDûCURVE
YEARûNON
CALLûTWOû
BANCO DE CHILE HITS DOLLAR MARKET Initial price thoughts were in the high
6% area with the deal eventually landing
PRICEDûAû53MûSENIORûUNSECUREDûNOTEû
FETCHINGû53BNûINûORDERS
4HEû!2EGû3ûlVE
offering was priced at 7.75%. Initial price
thoughts were in the high 7% range. Books
BANCO DE CHILEûLASTûWEEKûPRICEDûAû53Mû at 6.70%. The bond was trading up above WEREûAROUNDû53BNûACCORDINGûTOûAû
10-year bond, attracting an order book of par by Friday. “If it had limped over the syndicate source.
AROUNDû53BN line and traded down it would have Alsea is rated B1 by Moody’s and BB– by
The deal was priced at a yield of 3.276% or eroded the economics of the exchange,” &ITCHûh!LSEASûRATINGSûREmECTûITSûSOLIDûPOSITIONûASû
spread of 185bp over Treasuries. Investors said the second source. The good ANûOWNERûANDûFRANCHISEûOPERATORûOFû123û
included high-grade and emerging market performance of the new issue “sets the cafeterias, and casual dining restaurants in
buyers, a syndicate member said. whole thing up.” Latin America and Europe,” said Fitch.
4HEûBANKûWHICHûISûAûFULLûSERVICEûlNANCIALû Pemex is offering to exchange 12 bonds !LONSOû3ANCHEZûAûVICE
PRESIDENTûATû-OODYSû
institution providing credit and non-credit with maturities ranging from 2024 to 2030 said that one factor supporting its rating of Alsea
products and services and a broad retail for a combination of new securities and is “its diverse portfolio with leading brands that
network in Chile, was last in the market in cash, while it would make cash offers for six INCLUDEû3TARBUCKSûANDû$OMINOSûWHICHû
/CTOBERûWITHûAû3&RMûDUEûûBOND bonds with maturities between 2044 and ACCOUNTEDûFORûûOFûREVENUESûASûOFû3EPTEMBERv
The dollar offering, rated A1/A, was priced 2060. Alsea has a large presence in Mexico and
through Bank of America, Citigroupû"$ û Priority is being given to those bonds Europe, where it generates 87% of its revenues,
Goldman Sachs and JP Morgan. Initial price from 2024 to 2030 – the 12 bonds are ranked Moody’s said. The company also operates in
thoughts were in the low 200s over in order of priority of 1–11 (Pemex has two !RGENTINAû#HILEû#OLOMBIAûANDû5RUGUAY
Treasuries. 9.5% due 2027 bonds that will be considered BBVA, Bank of America, Santander and
Moody’s said its “debt rating as a single series for the purpose of the ScotiaBank were the active bookrunners.
ACKNOWLEDGESûTHEûBANKSûSOLIDûPROlTABILITYû exchange offer). The bonds ranked from
THATûISûSUPPORTEDûBYûAûDIVERSIlEDûREVENUEû 12–17 are the longer-dated ones subject to a ALL INTL EMERGING MARKETS BONDS
base and robust risk management”. cash tender only. BOOKRUNNERS: 1/1/2021 TO DATE
30ûSAIDû"ANCOûDEû#HILEûhHASûAûHIGHû “The liability management transaction Latin America
systemic importance for Chile, supported by does not target outstanding Pemex Managing No of Total Share
its sound market share as one of the largest securities maturing in 2022 and 2023, given bank or group issues US$(m) (%)
banks in the country and its ample banking the commitment from the government of
1 JP Morgan 67 16,817.92 13.0
access in the retail system”. Mexico to ensure budgetary allocations for 2 Bank of America 53 14,529.41 11.2
additional capital injections ... to cover said 3 Citigroup 54 13,535.88 10.4
maturities,” said Pemex. 4 Santander 53 10,947.04 8.4
MEXICO The early participation deadline for the 5 Morgan Stanley 35 9,693.48 7.5
offer to exchange old bonds for new 6 Goldman Sachs 39 9,336.40 7.2
PEMEX DRUMS UP BIG ORDERS AFTER securities or receive cash is December 20, 7 BNP Paribas 29 7,221.87 5.6
GOVERNMENT SHOWS SUPPORT WITHûAûlNALûDEADLINEûOFû*ANUARYûûFORûTHEû 8 HSBC 26 7,060.54 5.4
overall exercise. 9 Scotiabank 19 5,278.42 4.1
PEMEXûPRICEDûAû53BNû
YEARûNOTEûOFFERINGû Bank of America, Citigroup, Goldman Sachs 10 BBVA 15 3,914.54 3.0
ONû$ECEMBERûûASûPARTûOFûAûLARGERûlNANCINGû and HSBC were the active bookrunners on Total 157 129,682.42
PACKAGEûTOûHELPûSTABILISEûITSûlNANCESûANDû the new issue and dealer managers on the Excluding equity-related debt.
manage its liabilities. liability management. Source: Refinitiv SDC code: L3
The Mexican state-owned oil and gas
company issued the bonds to support a ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS
liability management exercise, comprising BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
exchange and cash tender offers, on a series Europe/Africa Middle East
OFûBONDSûTHATûHAVEûINûTOTALûABOUTû53BNûINû Managing No of Total Share Managing No of Total Share
principal outstanding. Pemex (Ba3/BBB) will bank or group issues US$(m) (%) bank or group issues US$(m) (%)
ALSOûRECEIVEû53BNûOFûCAPITALûFROMûTHEû 1 Standard Chartered 76 12,053.31 11.4
1 JP Morgan 73 19,028.32 15.1
Mexican government to support its 2 HSBC 57 11,175.73 10.6
2 Citigroup 60 16,495.86 13.1
RElNANCINGûEFFORTSû4HEûGOVERNMENTSû 3 Citigroup 41 10,612.93 10.0
3 BNP Paribas 33 8,482.75 6.7
assistance was a big factor in assuring 4 JP Morgan 40 10,005.63 9.5
4 Goldman Sachs 23 7,007.19 5.6
investors and driving demand, a source 5 Goldman Sachs 19 5,758.14 5.4
5 VTB Capital 22 5,747.25 4.6
close to the deal said. 6 BNP Paribas 18 4,380.71 4.1
6 Standard Chartered 24 5,581.09 4.4
The government’s outlay not only gives 7 First Abu Dhabi 25 3,938.87 3.7
7 Bank of America 20 5,107.22 4.1
clarity to the market around Pemex’s near- 8 MUFG 13 3,045.56 2.9
8 Societe Generale 23 4,864.94 3.9
TERMûFUNDINGûPROlLEûBUTûALSOûDEMONSTRATESû 9 UniCredit 21 4,780.76 3.8 9 Emirates NBD 23 2,604.01 2.5
to investors its commitment to the 10 HSBC 17 4,652.15 3.7 10 Mizuho 19 2,464.23 2.3
company, said another source. “It shows the Total 153 125,794.57 Total 148 105,850.90
market there is actual support. It’s a Excluding equity-related debt. Excluding equity-related debt.
powerful message,” he said. Source: Refinitiv SDC code: L2 Source: Refinitiv SDC code: L5

50 International Financing Review December 11 2021

 LOANS
Australia 52 Hong Kong 52 India 53 New Zealand 53 Taiwan 54 Vietnam 54 Czech Republic 55 Germany 56
Netherlands 56 Sweden 56 UK 57 United States 58 Leveraged Loans 58

„ FRONT STORY US MARKET

Lev loan rally set to continue in 2022

Loans expected to increase dominance over bonds in levfin next year
Leveraged loan volumes will continue to
rise in 2022 as merger and acquisition
activity picks up and environmental, social
and corporate governance loans gain
traction, according to bankers speaking at
INCOMEûINVESTMENTSûTHROUGHOUTûTHEû
-5&'SûANNUALûLEVERAGEDûlNANCEûOUTLOOKû
media roundtable in New York.
While both leveraged loans and high-
yield bonds have seen strong issuance in
2021, next year MUFG bankers anticipate
loans may be the asset class of choice.
than high-yield bonds, given the
REPAYMENTûmEXIBILITYûOFFEREDûBYûLOANSû
DESPITEûTHEIRûHIGHERûPREMIUMSû0RIVATEû
credit investors are increasingly chasing
lXED
were approximately 160 LBO loans issued
capital structure, which could further
bolster volumes.
“Second-lien provides a relatively
attractive return, and I think that the
[relative value] between second-lien and
HIGH
acquisitions,” said Grant Moyer, head of
leveraged capital markets at MUFG.
In 2021, private equity sponsors leaned
HEAVILYûONûLOANSûTOûlNANCEûBUYOUTSû4HEREû
this year through the third quarter of 2021,
AûSIGNIlCANTûINCREASEûFROMûTHEûû,"/ûLOANSû
ISSUEDûTHROUGHûTHEûlRSTûTHREEûQUARTERSûOFû
2020.
4HEûAVERAGEû,"/ûLOANûSIZEûINûûCLOCKEDû
YIELDûWILLûNARROWvû-UNROûSAIDûh4HEû
Institutional loan issuance so far this
year is US$798bn, while high-yield bond
volume is US$467.6bn, according to
2ElNITIVû,0#ûDATAû4HISûCOMPRISESûANû
approximately 60/40 split between the two
INûATûJUSTûUNDERû53MûWHILEûlFTYûOFû
dollars available in private credit and
sponsors’ willingness to pay some
premium for second-lien will expand the
TYPEûOFûlNANCINGSûTHATûSECONDûLIENSû
historically have encompassed from
THESEûLOANSûEXCEEDEDû53BNûINûSIZEû4HESEû
included a sizable US$7.27bn term loan B to
fund the buyout of MEDLINE INDUSTRIES.
Incorporating ESG features into leveraged
loans is expected to be one of the sector’s
asset classes, which bankers believe will
likely widen in 2022.
“We’ll repivot to what has historically
been a two-thirds/one-third split between
leveraged loans and high-yield bonds in
LIENûPRICINGûINûTHEûTHIRDûQUARTERûWASû
terms of composition,” said Ryan Munro,
head of leveraged capital markets
syndicate at MUFG. “I think we’ll start to
see some of the deals that were done as
secured bonds [return] back to loan format,
where they more naturally would have
been absent a dislocation in the loan
market when those deals were priced.”
According to Munro, the combination of
second-lien loans and unitranches will
LINKEDû
LIKELYûSEEûAûSPIKEûINûVOLUMEû0RIVATEûEQUITYû
sponsors favour second-lien loans more
Investors pile into WOW! loan
modest-sized tranches to larger tranches.”
Average second-lien pricing in the third
quarter was 680.88bp over Libor, down
FROMûBPûINûTHEûlRSTûQUARTERû!VERAGEû
lRST
companies operating in more
395.59bp over Libor, down from 402.78bp
INûTHEûlRSTûQUARTER
INCREASED M&A ACTIVITY
In addition, bankers anticipate increased
activity in mergers and acquisitions to
bolster loan volume moving into next year,
as prospects grow clearer for a further
return to normal from the height of the
pandemic.
“Absent any crazy variant, I think we’re
going to see more people want to do more
SIGNIlCANTûTRENDSûDURINGûûASûITûWASûINû
the investment-grade space during 2021.
Interest among leveraged loan issuers in
ESG is increasing, especially among
environmentally sensitive industries such as
the energy sector.
COVANTA, a waste-to-energy company,
grabbed attention in November when it
agreed US$1.435bn of sustainability-linked
LOANSûTOûlNANCEûITSûACQUISITIONûBYû%14û
Infrastructure.
It included environmentally linked
TARGETSûTHATûMAYûINmUENCEûPRICINGûANDûWASû
THEûINDUSTRYSûlRSTûSUSTAINABILITY
LEVERAGEDûBUYOUTûlNANCINGûINûTHEû53û
Rhys Adams, Matthew Tracy
Fargo and M&T were joint-lead arrangers on
THEû7/7
ûlNANCING
h2IGHTûNOWûPARTICULARLYû#,/SûAREûGOINGûTOû
SOFR-based loan is latest to shun credit spread adjustment ASKûFORû;Aû#3!=ûBUTûIFûTHEYûOTHERWISEûLIKEûTHEû
DEALûTHEYREûGOINGûTOûBEûJUSTûlNEûWITHûAû
!û53MûlNANCINGûFORûTELECOMMUNICATIONSû oversubscribed, with only a handful of SIMPLERûCONSTRUCTûTHANûHAVINGûALLûTHEû#3!û
company WIDEOPENWEST saw heightened investors dropping out because of the mechanics in there,” the source said.
investor demand as accounts participating in ABSENCEûOFûAû#3! 4HEûLOANûCOMESûWITHûûSOFTûCALLûPROTECTIONû
the credit embraced the Secured Overnight “It priced at an appropriate level for the FORûSIXûMONTHSûANDûAMORTISESûATûûPERûANNUM
&INANCINGû2ATE
PEGGEDûlNANCINGûTHATûDIDûNOTû rating,” a source said. “It looked like it had a 4HEûDEALûISûAMONGûAûSLEWûOFûRECENTû3/&2

include a credit spread adjustment. new issue concession to it, but it looked like based loans that priced without a credit
4HEûLOANûWHICHûMATURESûINû$ECEMBERû REGULARûWAYûONûTHATûPERSPECTIVEû4HEûmOORûISû spread adjustment, as lenders and bankers
ûlRMEDûATûBPûOVERû3/&2ûWITHûAûû 50 basis points, which is where everything is negotiate aspects of SOFR pricing ahead of
mOORûANDûANû/)$ûOFû GETTINGûDONEû4HATSûALSOûREGULARûWAYû)Tû $ECEMBERûûTHEûDATEûAFTERûWHICHûREGULATORSû
4HEûlRST
LIENûlNANCINGûSLATEDûTOûRElNANCEû would be tough to argue that not having the say no new loans should be pegged to Libor.
existing debt does not include a separate #3!ûCOSTûTHISûISSUERûANYûMONEYv #ORPORATEûRATINGSûAREû"""nûANDûFACILITYû
spread compensation for the differential Morgan Stanley, KeyBank, Bank of America, ratings are B1/BB.
BETWEENû,IBORûANDû3/&2û4HEûDEALûWASûALSOû Credit Suisse, Goldman Sachs, Regions Bank, Wells Michelle Sierra

International Financing Review December 11 2021 51

 Commercial Bank, National Australia Bank,
SMBC, Taiwan Business Bank and Taiwan
ASIA-PACIFIC Cooperative Banks are the banks joining the
facility.
ANZ and Commonwealth Bank of Australia
AUSTRALIA were the mandated lead arrangers and
Although the new deal attracted two
Japanese lenders, both joined from Hong
Kong.
h#HINESEûCREDITSûAREûSTILLûCHALLENGINGûFORû
Japanese regional banks,” the source said.
Mizuho Bank was the mandated lead
EBOS EYES LOAN FOR LIFEHEALTHCARE
YEARûTRANCHEû return a year after its debut in the Samurai
EBOS GROUP is seeking a A$540m (US$387m)
term loan for its proposed acquisition of
medical devices business LIFEHEALTHCARE
FROMûPRIVATEûEQUITYûlRMû0ACIlCû%QUITYû
0ARTNERS
INCORPORATEDûUNITûOFû#-"û
Australia and New Zealand-listed
HEALTHCAREûlRMû%BOSûISûALSOûRAISINGûUPûTOû
A$742m in equity to fund the acquisition
bookrunners for the borrowing, which is
SPLITûINTOûAû!MûlVE
(facility A1) and a A$240m four-year piece
(facility B).
4HEûLOANûOFFERSûOPENINGûINTERESTûMARGINSû
OFûBPûANDûBPûOVERû""39ûFORûTHEûlVEû
and four-year tenors, respectively.
BAPCOR COMPLETES REFI
#ARûPARTSûSUPPLIERûBAPCORûHASûRElNANCEDû
ARRANGERûOFûTHEûDEALûWHICHûMARKSû0!)&,Sû
loan market.
4HEûLATESTûLOANûPAYSûAûlXEDûINTERESTûRATEûOFû

Earlier in the week, CMB INTERNATIONAL
LEASING MANAGEMENT, a wholly owned and
(ONGû+ONG
Financial Leasing, closed a ¥15bn three-year
Samurai green loan with four lenders.
MUFG and SMBC were the mandated lead
and issuing A$23m of shares to
LifeHealthcare management.
4HEûCOMPANYûEXPECTSûNETûDEBTLASTûû
YEARûTRANCHESûTOTALLINGû!Mû while Bank of Yokohama and Norinchukin Bank
months of pro forma Ebitda to be below 2.25
times at June 30 2022.
Ebos has signed an agreement to acquire
,IFE(EALTHCAREûFROMûFUNDSûADVISEDûBYû0%0û
and other minority holders, comprising
ûOFû,IFE(EALTHCARESû!USTRALIAûANDû.EWû
:EALANDûSUBSIDIARIESûANDûûOFû
part of a A$520m (US$371m) loan signed in
ûWITHûlVEûLENDERS
4HREE
that were due in July 2022 have been
extended into A$200m and A$70m tranches
maturing in July 2025 and July 2026,
respectively.
ANZ, HSBC, MetLife, MUFG and Westpac
Banking Corp are the lenders for the A$520m
borrowing, which also includes a A$150m
ARRANGERSûBOOKRUNNERSûANDûGREENûlNANCEû
structuring advisers of the transaction,
joined as lead arrangers.
0ROCEEDSûWILLûBEûUSEDûINûACCORDANCEûWITHû
#-"&,SûSUSTAINABLEûlNANCINGûFRAMEWORK
4HEûLATESTû3AMURAIûISû#-"&,SûTHIRDûSUCHû
loan in as many years.
#-"û&INANCIALû,EASINGûHASûRAISEDûAûcBNû
(US$132m) three-year Samurai green loan
,IFE(EALTHCARESû!SIANûUNITû4RANSMEDICûFORû tranche maturing July 2024 and a A$100m from four lenders.
A$1.167bn. portion due July 2026.
#O
FOUNDERSûOFû4RANSMEDICûWILLûRETAINûTHEû No changes were made to debt covenants
REMAININGû or security arrangements. HONG KONG
)Nû-AYûû0%0ûACQUIREDû,IFE(EALTHCAREû +0-'ûANDû!LLENSûADVISEDû"APCORûONûTHEû
VIAûITSûENTITYû0ACIlCû(EALTHû3UPPLIESû"IDCOû RElNANCING CHINA MERCHANTS UNIT LIFTS LOAN
backed by a A$139.65m buyout loan.
)Nû*ULYûTHATûLOANûWASûRElNANCEDûWITHûAû
OWNEDû
!M
EQUIVALENTûlVE
YEARûLOAN
HARVEY NORMAN INKS A$410m REFI
Electronics retailer HARVEY NORMAN has closed
a A$410m (US$292m) revolving credit
FACILITYûFORûRElNANCINGûAFTERûATTRACTINGûû
lenders in syndication.
Agricultural Bank of China, Bank of China,
China Everbright Bank, First Commercial Bank,
Hua Nan Commercial Bank, Mega International
ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY
SYNDICATED VOLUME (INCLUDING JAPAN)
SOUTHERN CROSS AUSTEREO BAGS REFI
CONGLOMERATEû#HINAû-ERCHANTSû'ROUPûHASû
Media company SOUTHERN CROSS AUSTEREO has
signed a A$250m (US$179m) four-year
REVOLVINGûCREDITûFACILITYûFORûRElNANCINGûWITHû
lVEûBANKS
ANZ, Mizuho Bank, National Australia Bank,
SMBC and Westpac are the lenders on the
loan.
Westpac is the only new bank in the
syndicate.
+EYûlNANCIALûCOVENANTSûREMAINû
unchanged, with the leverage ratio capped
at 3.5 times and the interest cover ratio
required at a minimum of 3 times Ebitda.
4HEûlNANCIALûLEASINGûUNITûOFûSTATE
increased its three-year loan to US$445.7m
from US$400m.
SMBC was the mandated lead arranger and
bookrunner of the transaction, which
offered an all-in pricing close to 140bp based
on an interest margin of 108bp over Libor.
Mandated lead arrangers are China Citic
Bank and Shanghai Pudong Development Bank.
0ARTICIPANTSûAREûHang Seng Bank, Bank of East
Asia, DBS Bank, HSBC and OCBC Wing Hang.
4HEûBORROWERûISûCHINA MERCHANTS FINANCIAL
LEASING (HONG KONG) HOLDING, a wholly owned
SUBSIDIARYûOFû#HINAû-ERCHANTSû#OMMERCEû
BOOKRUNNERS: 1/1/2021 TO DATE 0ROCEEDSûWILLûBEûUSEDûTOûREPAYûDRAWNûDEBTû &INANCIALû,EASINGûWHICHûISûTHEûMAINûlNANCIALû
Managing No of Total Share of A$128m. LEASINGûARMûOFû#HINAû-ERCHANTSû'ROUP
bank or group issues US$(m) (%) #HINAû-ERCHANTSû#OMMERCEû&INANCIALû
1 Mizuho 415 76,438.51 14.4 Leasing, rated Baa2/BBB/BBB+, is providing a
2 Bank of China 287 65,140.69 12.3 CHINA letter of comfort for the loan.
3 Sumitomo Mitsui 618 63,787.13 12.0 0ROCEEDSûWILLûBEûUSEDûFORûRElNANCINGûANDû
4 MUFG 651 51,512.22 9.7 PING AN INTL LIFTS SAMURAI general corporate purposes.
5 Ag Bank of China 36 17,911.85 3.4
6 HSBC 98 17,693.57 3.3 PING AN INTERNATIONAL FINANCIAL LEASING has PARKSON RETAIL BAGS HK$2.7bn LOAN
7 Standard Chartered 78 14,438.78 2.7 increased its three-year loan to ¥17.5bn
8 ANZ 49 13,563.50 2.6 (US$137m) after attracting four lenders in PARKSON RETAIL GROUP, a unit of Malaysia’s

9 CBA 47 10,311.12 1.9 syndication. Lion Group, has obtained a three-year loan
10 China Construction 43 10,264.30 1.9 4WOûNEWûLENDERSûFuyo General Lease and a OFûUPûTOû(+BNû53M ûFROMûlVEû
Total 2,694 530,275.86 Japanese regional bank, joined the existing lenders.
Proportional credit
LENDERSûTHEû4OKYOûBRANCHESûOFûAgricultural China Zheshang Bank is the facility agent of
Source: Refinitiv SDC code: S3a Bank of China and Bank of Communications. the borrowing, which attracted Chong Hing

52 International Financing Review December 11 2021

 LOANS ASIA-PACIFIC

Bank, Xiamen International Bank, China Bohai

Bank and Shanghai Rural Commercial Bank in
general syndication. Reliance makes green loan debut
0ROCEEDSûAREûFORûRElNANCINGûANDûGENERALû
corporate purposes. „ INDIA Financing backs acquisition of Norwegian firm
According to the facility agreement,
COMPANYûCHAIRMANû#HENGû(ENGû*EMûANDûHISû RELIANCE INDUSTRIES has signed a US$736m- It represents RIL’s largest overseas
WIFEû#HANû#HAUû(AûMUSTûREMAINûTHEû
LARGESTûULTIMATEûBENElCIALûOWNERSûOFû
0ARKSONû2ETAILû4HEûDUOûHELDûAûSTAKEûOFû
ûATûTHEûDATEûOFûTHEûANNOUNCEMENT
(ONGû+ONG
LISTEDû0ARKSONû2ETAILûHASûû
equivalent green loan to fund its acquisition of
Norwegian solar panel manufacturer REC Solar
Holdings, marking the first such financing for the
Indian conglomerate.
ANZ, Credit Agricole, DBS Bank, HSBC and (ChemChina).
acquisition and a rare instance of an
Indian company acquiring assets from a
Chinese seller. China National Bluestar is
a unit of China National Chemical Corp
DEPARTMENTûSTORESûINû-ALAYSIAûûINû#HINAû
and nearly 20 others across Vietnam and
Indonesia.
CABLE TV TOWER LOAN DRAWS FIVE
A consortium comprising real estate
investment managers SCHRODER PAMFLEET and
BENTALLGREENOAK has closed a HK$1.614bn
(US$208m) four-year loan for the acquisition
of an industrial property from Hong Kong’s
7HARFû$EVELOPMENT
Standard Chartered was the sole mandated
lead arranger and bookrunner of the
MUFG were the lenders on the borrowing, which
is the first green acquisition financing from India.
The borrowing is split into a US$250m six-
year term loan, a US$150m working capital
facility and a S$460m (US$336m) five-year bank
guarantee facility.
ANZ and MUFG took US$70m each of the
term loan, while DBS and HSBC took US$40m
apiece. Credit Agricole was allocated US$30m.
DBS, HSBC and MUFG took equal shares of
the working capital facility, while the first two
named banks split the bank guarantee facility
equally.
The term loan pays an interest margin of
On the same day, RNESL also announced
it was acquiring up to 40% in India’s Sterling
and Wilson Solar. In August it had announced
a US$50m investment in US energy storage
company Ambri.
The acquisitions and the green loan mark
RIL’s first steps in its goal to become a net
carbon zero company by 2035 and make India
a hub for low-cost solar manufacturing.
The operator of the world’s biggest oil
refining complex at Jamnagar in western India
said in June it would invest US$10.1bn in clean
energy over three years.
The conglomerate will invest Rs600bn
lNANCINGûWHICHûATTRACTEDûlVEûOTHERû
lenders in syndication. MLA is Dah Sing Bank.
Lead arrangers are China Construction Bank,
Cathay Bank, Mega International Commercial
Bank and E Sun Commercial Bank.
around 120bp–125bp over Libor.
Singapore-incorporated REC SOLAR is the
borrower on the loan, while Reliance New Energy
Solar, a wholly owned subsidiary of RIL and the
acquiring entity, is the guarantor.
(US$7.96bn) to build four giga factories at
Jamnagar to produce solar cells and modules,
energy storage batteries, fuel cells and green
hydrogen, Mukesh Ambani, RIL chairman and
one of Asia’s richest men, said at the time.
4HEû#ABLEû46û4OWERûAû
STOREYûINDUSTRIALû The borrowing is also a rare acquisition
PROPERTYûLOCATEDûINû(ONGû+ONGSû4SUENû7ANû
district, serves as security for the deal,
which represents a loan-to-value ratio of
ABOUTû
4HEûLOANûOFFEREDûAûTOP
LEVELûALL
INûPRICINGû Drawdown of the loan took place on
of 205.50bp via an interest margin of 198bp
over Hibor.
At the end of the maturity, the borrower
can choose to extend the loan for a year.
Lenders will be paid a 50bp extension fee.
On June 30, the consortium announced
the completion of the acquisition of an
industrial property and parking spaces at
#ABLEû46û4OWERûANDû/NEû-IDTOWNû4HEû
premises comprise approximately 568,200 sq
ft of industrial space and 122 parking spaces.
4HEû#ABLEû46û4OWERSûTENANTSûINCLUDEûAû
REC Solar is a 25-year-old company with
financing from the Indian oil-to-telecoms three manufacturing facilities – two in Norway
conglomerate, which opted for a term borrowing for making solar-grade polysilicon and one
instead of a short-term bridge facility as is in Singapore making photovoltaic cells and
typically employed in most M&A situations. modules.
RIL plans to use REC Solar’s industry-
December 1 after which all outstanding liabilities leading technology in its fully integrated,
at REC Solar were settled and the acquisition metallic-silicon-to-PV-panel giga factory at
was completed. Dhirubhai Ambani Green Energy Giga Complex
On October 10, RNESL announced its in Jamnagar, initially starting with 4GW per
acquisition of 100% shareholding of REC Solar annum capacity and eventually growing to
from China National Bluestar (Group) for an 10GW per annum.
enterprise value of US$771m. Prakash Chakravarti
Axis Bank, Bank of Baroda, Bank of India,
Canara Bank, DBS Bank, MUFG and SMBC are NEW ZEALAND
the lenders on the US dollar portion.
television broadcasting station, telecoms
companies and logistics businesses.
INDIA
YEARûBORROWINGûINû53ûDOLLARSû
"O)û3-"#ûANDûMizuho Bank are the banks LOAN EYED FOR HOSPITAL BUY
on the yen loan.
2%#ûHADûSENTûAûREQUESTûFORûPROPOSALSû Australian asset manager QIC and
in October for a US$100m-equivalent superannuation fund SUNSUPER are seeking a
lVE
LOANûOFûABOUTû!MnMû53Mn
ORûYENûWITHûANûUNSPECIlEDûGREENSHOEû $279m) backing their proposed acquisition
REC RETURNS FOR US$1.5bn LOAN option. of EVOLUTION HEALTHCARE in New Zealand.
4HEûINTERESTûRATEûONûTHEûLATESTûLOANûWILLû ANZ, Bank of China, Commonwealth Bank of
State-owned REC has picked eight banks for a BEûLINKEDûTOûTHEûDAILYûCOMPOUNDEDû4OKYOû Australia and ING BankûAREûARRANGINGûTHEûlNANCING
53BN
EQUIVALENTûlVE
YEARûBULLETûLOANû /VERNIGHTû!VERAGEû4ONAR ûBENCHMARKû 1)#ûONûBEHALFûOFû1)#û'LOBALû)NFRASTRUCTUREû
returning within weeks of closing a smaller WITHûAûlVEûWORKINGûDAYSûLOOK
BACKûPERIODû Fund, and Sunsuper have signed a binding
US dollar borrowing that met a strong for the yen borrowing, and Libor for the US AGREEMENTûWITHûPRIVATEûEQUITYûlRMû0ACIlCû
response from the market. dollar loan. %QUITYû0ARTNERSûTOûACQUIREû%VOLUTIONû(EALTHCARE
4HEûLATESTûBORROWINGûISûSPLITûINTOûAû 4HEûLATESTûBORROWINGûISûTHEûFOURTHûVISITû )Nû-ARCHûû0%0ûBOUGHTûAûMAJORITYû
US$1.175bn facility and a US$325m- to the offshore loan market for the stake in Evolution Healthcare from funds
equivalent yen tranche. INFRASTRUCTUREûlNANCEûCOMPANYûTHISûYEAR AFlLIATEDûWITHûINVESTMENTûlRMû2/#û

International Financing Review December 11 2021 53

0ARTNERSû'OLDMANû3ACHSûFUNDûTHEûTARGETSû
founders and management.
Evolution Healthcare is a private hospital
network in New Zealand comprising 10
comprehensive and day hospitals in addition
to a portfolio of ancillary healthcare
facilities in the country and one private
hospital in Australia.
DELEGAT GROUP RENEWS FACILITIES
DELEGAT GROUP has renewed loans totalling
NZ$333m (US$225m) with four existing
banks.
Bank of New Zealand, China Construction Bank
(New Zealand), HSBC and Westpac are the
lenders that have recommitted to the loans.
4HEûLOANSûHAVEûTENORSûOFûTHREEûTOûlVEû
years, achieving a weighted average
maturity of four years.
In 2019, the company extended the
maturity of its loan through to July 30 2022
with the four banks.
$ELEGATûISûAûPRODUCERûOFûBRANDEDû.EWû
Zealand wine and markets its products in
Australia, New Zealand, Asia, North
America, Europe and the Middle East.
SINGAPORE
OLAM RAISES SOFR CLUB LOAN
Singapore-listed food and agri-business OLAM
INTERNATIONAL has raised a US$150m club loan
pegged to the Secured Overnight Financing
CPPIB sees Asian
debt opportunity
„ ASIA Canadian pension fund pursues new financings in China and India
After committing over US$700m in debt to Asia
this year, the CANADA PENSION PLAN INVESTMENT
BOARD is seeking opportunities to grow its credit
portfolio in key markets such as China, India, and
Australia as the region opens up to non-bank
lenders.
Canada’s largest pension fund manager
is unfazed by recent developments in China,
particularly in the property sector which is facing
a liquidity crunch.
“Recent events in the real estate credit sector
have weighed on financing and lending activities
in China and we are watching the developments
closely,” said Raymond Chan, head of APAC
credit at CPPIB. “While the events may have
an impact on investor confidence in the credit
investments sector, we believe there are still many
opportunities in China’s broader debt market.”
“[In China], real estate continues to be the
most important sector in the credit market, given
its market size and use of leverage,” said Chan.
Mandated lead arrangers are DBS Bank, KGI
Bank, Taipei Fubon Commercial Bank, O Bank and
Shanghai Commercial & Savings Bank. Managers
are Hua Nan Commercial Bank and Taishin
International Bankû0ARTICIPANTSûAREûKing’s Town
Chan knows the Chinese market well,
having worked previously at SSG Capital with
responsibility for special situations investments
and secured lending in Greater China. He
has also worked as head of Greater China at
Intermediate Capital Group and team head of the
real estate sector at HSBC.
Prior to Chan’s hire in October 2019, CPPIB
invested Rmb704m (US$110m) in a loan to
support an international sponsor’s purchase of
a non-performing loan portfolio in China. The
portfolio is primarily backed by commercial
real estate properties in Guangzhou, one of the
country’s four tier-one cities.
Globally, CPPIB invests across the credit
structure, including term loans, high-yield bonds,
mezzanine lending, structured products and
other credit instruments for borrowers in all
sectors.
In Asia-Pacific, outside of public credits,
the investment manager is focused on sub-
Commercial Bank are the mandated lead
arrangers and bookrunners of the senior
secured term loan.
4HEûTRANSACTIONûCOMPRISESûAû53Mû
tranche (facility A) for Vingroup and a US$100m
2ATEûAHEADûOFûTHEû$ECEMBER
ENDûDEADLINEûTOû Bank and Taichung Commercial Bank. portion (facility B) for Vinfast. A US$100m
cease new US dollar Libor contracts. 4HEûDEALûOFFERSûANûINTERESTûMARGINûOFûBPûOVERû greenshoe option applies to both borrowers.
DBS Bank and Industrial and Commercial Bank ,IBORûANDûANûANNUALûFEEûOFûBPû4HEûBORROWERû Facility A pays an interest margin of
of China Singapore branch are the lenders on will pay any excess interest rate beyond a 40bp 302bp over Libor, while facility B offers
the one-year facility. DIFFERENCEûBETWEENû4!)&8ûANDû,IBOR BPû4HEûAVERAGEûLIFEûISûûYEARS
OLAM TREASURY is a co-borrower. 4HEûANNUALûFEEûWILLûBEûADJUSTEDûBASEDûONûTHEû Vingroup is guarantor on facility B for
0ROCEEDSûWILLûBEûUSEDûFORûGENERALû BORROWERSûAFTER
TAXûNETûPROlTûMARGINûBPûFORû automotive manufacturer Vinfast.
corporate purposes. ANûAFTER
TAXûNETûPROlTûMARGINûOFûûORûBELOWû Banks have been invited to lend to both
4HEûFACILITYûAGREEMENTûALSOûALLOWSûFORûTHEû BPûFORûABOVEûûANDûBPûFORûûORûHIGHER borrowers on a pro rata basis at three ticket
carve-out, separation, and proposed 4HEûBORROWERSûAREûCHAINWIN BIOTECH & levels.
DEMERGERûANDû)0/ûOFûONEûOFû/LAMSûUNITSû AGROTECH (CAYMAN ISLANDS)ûANDûITSûSIXû#HINA
MLAs committing US$30m and above will
previously known as Olam Food Ingredients, based units, while Win Semiconductors is receive top-level all-in pricing of 338bp and
as per the company’s reorganisation plan the guarantor. 371bp based on fees of 150bp for both
announced on January 20 2020. Funds are for capital expenditure, facilities.
RElNANCINGûANDûWORKINGûCAPITALûPURPOSES ,EADûARRANGERSûJOININGûWITHû53Mn
$29m earn all-ins of 333bp and 366bp via
TAIWAN 130bp in fees, while arrangers taking
VIETNAM 53MnMûAREûOFFEREDûALL
INSûOFûBPû
WIN SEMICONDUCTORS UPS LOAN and 362bp based via a 110bp fee.
VINGROUP, UNIT PAY UP 0ROCEEDSûWILLûBEûUSEDûFORûCAPITALû
4AIWAN
LISTEDû7INû3EMICONDUCTORSûHASû ON GREEN DEBUT expenditure and general corporate purposes
increased a three-year loan for its units to INûLINEûWITHûTHEûû'REENû,OANû0RINCIPLESû
US$300m from a US$200m target after #ONGLOMERATEûVINGROUP and its subsidiary ISSUEDûBYûTHEû!SIAû0ACIlCû,OANû-ARKETû
attracting 10 banks in general syndication. VINFAST TRADING AND PRODUCTION have launched Association, and in compliance with
Far Eastern International Bank was the SYNDICATIONûOFûAûlVE
YEARûDEBUTûGREENûLOANûOFû 6INGROUPSûSUSTAINABLEûlNANCEûFRAMEWORK
original mandated lead arranger and up to US$500m, offering slightly richer 0RICINGûONûTHEûLATESTûBORROWINGûISû
bookrunner of the transaction, while Mega pricing than their previous borrowing in 2019. marginally higher than on the previous
International Commercial Bank joined with the BNP Paribas, Cathay United Bank, Credit 53MûlVE
YEARûDUAL
TRANCHEûLOANûTHEû
same title. Suisse, HSBC, Maybank and Taipei Fubon two borrowers raised in late 2019.

54 International Financing Review December 11 2021


investment-grade corporate, structured, and
real asset credit in both primary and secondary
markets.
INDIAN ALTERNATIVES
Infrastructure credit is another theme CPPIB is
actively pursuing in India as domestic players are
increasingly looking for financing solutions from
offshore investors.
In November CPPIB disclosed that it had
committed C$115m (US$91m) in debt to a
portfolio of late-stage construction toll-roads
owned by Dilip Buildcon, a listed developer and
operator of infrastructure assets in India.
Chan also sees opportunities for alternative
lenders to provide financing to distressed and
mid-market companies in the country because
financing conditions in domestic banking and
financial sectors have tightened since 2018 as a
result of a liquidity crunch at several non-bank
financial companies.
Last year subsidiary CPPIB Credit Investments
agreed to lend Rs7.25bn (US$98m then) to support
JSW Project’s investment in distressed steelmaker
BMM Ispat, which was the manager’s first Indian
direct onshore rupee-denominated financing.
CPPIB also has exposure to India via
commitments to Baring Private Equity Asia’s
Vinfast borrowed US$310m through
India Credit Fund III, which lends in rupees to
performing mid-market companies, and the
distressed assets-focused India Resurgence
Fund.
It has played an active role in leveraged
financings from India, and is a lender on a
US$165m deal completed in July for private
equity firm KKR’s acquisition of Vini Cosmetics.
CPPIB lined up a US$185m mezzanine facility
to back Carlyle’s bid for Indian IT outsourcing
services provider Mphasis earlier this year, but
the deal fell through after the acquisition hit a
valuation hurdle.
In September, CPPIB underwrote US$325m of
the US$500m unitranche loan backing BPEA’s
buyout of Singapore-headquartered business
process outsourcing company Straive. The deal
is Asia’s biggest unitranche outside of Japan and
Australasia and represents a leverage multiple of
6.5 times–7 times with all-in pricing of 6.5%–7%.
The target generates the majority of its revenues
from operations in India.
CPPIB also committed HK$700m (US$90m)
alongside banks to a first-lien term loan that
is part of a HK$2bn financing for CVC Capital
Partners’ buyout of Hong Kong-based streetwear
apparel company IT and the subsequent carve-
out of its brands.
Mirae Asset Finance (Vietnam) provides
LOANS EMEA
RAPID PROGRESS
The credit investments this year have helped
CPPIB make rapid progress in Asia, with
sizeable individual holdings in a target range
between US$50m and US$1bn-plus, and
private debt financing tenor usually ranging
between three and seven years.
“The Asia-Pacific portfolio has more than
doubled in size since 2019,” said Chan. “We
expect the portfolio growth to continue as
Covid’s market impacts lessen and travel
restrictions become less onerous.”
However, the region accounts for a minuscule
portion of its global portfolio. As of March 31,
CPPIB’s APAC credit assets totalled C$1.1bn,
with C$300m in new investment activity since
April 2020 and a net return of 8.1% over that
period.
CPPIB’s global credit portfolio totalled
C$43.8bn at the end of March this year, while
its net assets were C$497.2bn.
Chan expects to grow CPPIB’s private credit
book further through opportunities not just in
China and India, but Australia as well where it
is primarily focused on lending to companies
backed by both local and international
sponsors.
Mirzaan Jamwal
INûRIVALû)MMOlNANZûTOûABOUTûûFROMûû
facility A, while Vingroup raised US$265m
via facility B.
4HEûTRANSACTIONûPAIDûTOP
LEVELûALL
INûPRICINGû insurance.
of 369bp and 334bp based on margins of
335bp and 305bp over Libor for facilities A
ANDû"ûRESPECTIVELYû4HEûAVERAGEûMARGINûACROSSû
the loans for both borrowers was 325bp over
Libor, while the average life was 4.175 years.
YEARû
MIRAE ASSET DOUBLES LOAN
MIRAE ASSET FINANCE (VIETNAM) has exercised the
greenshoe on a dual-tranche loan launched
in general syndication in July, doubling it to
US$100m after attracting four lenders in
general syndication.
Mizuho Bank was the mandated lead
arranger and bookrunner of the transaction,
which is equally split into a two-year
tranche A and a one-year tranche B.
Bank of China, KEB Hana Bank, Kookmin Bank
came in as MLAs, while Woori Bank joined as
a lead arranger.
4HEûDEALûOFFEREDûTOP
LEVELûALL
INûPRICINGûOFû and UniCredit.
172.5bp and 335bp for tranches A and B,
TERMûOWNERûOFûINCOME
0RINCIPALûlNANCIALûCOVENANTSûCOMPRISEû
RETAILûlNANCINGûSOLUTIONSûINCLUDINGûCASHû
instalment and secured loans, and
EUROPE/MIDDLE
EAST/AFRICA
CZECH REPUBLIC
CPI PROPERTY TAPS BRIDGE
#ENTRALûANDû%ASTERNû%UROPEûFOCUSEDûCPI
PROPERTY GROUP is backing its offer for
!USTRIASû)MMOlNANZûWITHûAûõBNûBRIDGEû
loan.
4HEûBRIDGEûLOANûISûBEINGûPROVIDEDûBYûAû
club of Banco Santander, Credit Suisse, Erste,
Goldman Sachs, HSBC, Raiffeisen Bank
International, Societe Generale-Komercni Banka
and ambitions.
#0)0'ûISûAûLONG
by way of a voluntary partial offer.
FAROE ISLANDS
BAKKAFROST LANDS €700m SLL
Salmon farming company BAKKAFROST has
AGREEDûTERMSûFORûAûõMûlVE
sustainability-linked revolving credit
facility.
4HEûMULTICURRENCYûlNANCINGûWILLû
BEûUSEDûTOûRElNANCEû"AKKAFROSTSû
existing bank facilities as well as for
general corporate purposes including
acquisitions.
4HEû2#&ûINCLUDESûTHEûmEXIBILITYûTOûAGREEû
ANûUPûTOûõMûOFûADDITIONALûlNANCINGû
during the life of the loan.
0RICINGûONûTHEûFACILITYûWILLûBEûLINKEDûTOû
the company’s performance on
sustainability key performance indicators
aligned to Bakkafrost’s overall ESG targets
respectively, based on interest margins of GENERATINGûREALûESTATEûINûTHEû#ZECHû2EPUBLICû ANûEQUITYûRATIOûOFûNOTûLESSûTHANûûANDû
155bp and 300bp over Libor. "ERLINûANDûTHEû#%%ûREGIONû4HEûCOMPANYûISû interest coverage of no less than two times.
4RANCHEû!ûCARRIESûAûGUARANTEEûFROMû-IRAEû headquartered in Luxembourg and its Rabobank, DNB Bank and Nordea have
!SSETû#APITALûTHEûDIRECTûPARENTûOFû-IRAEû
Asset Finance (Vietnam), while tranche B
comes with a letter of comfort, because of
which the longer-term piece pays a lower
margin.
shares are listed on the Frankfurt Stock
Exchange.
!FTERû#0)û0ROPERTYûANNOUNCEDûPLANSûFORûTHEû
takeover offer, Austrian real estate company S
Immo said it would increase its shareholding
International Financing Review December 11 2021
agreed to continue their support as
lenders.
4HEû2#&ûISûSUBJECTûTOûTHEûFACILITYû
agreement, which is expected during the
lRSTûQUARTERûOFû
55
 0RICINGûONûTHEûFACILITYûWILLûBEûADJUSTEDû be supported by the company’s largest
GERMANY based on NSI’s performance on four key shareholders.
performance indicators comprising the $ESPITEûANûINCREASEûINûLEVERAGEû3ECURITASû
VW TAKES DEBUT SLL percentage of buildings labelled at least is committed to and expects to maintain its
BREEAM “very good”; the percentage of INVESTMENT
GRADEûRATINGûWITHû30û"""!
û
VOLKSWAGEN HASûAGREEDûAûõBNûTHREE
YEARû BUILDINGSûWITHû%0#û!ûENERGYûLABELSû WITHûAûSTABLEûOUTLOOK û4HEûCOMPANYûWILLû
LOANûTHEûCOMPANYSûlRSTûSUSTAINABILITY
sustainable investments as a percentage of focus on deleveraging over the short term.
linked loan with margins tied to the capex; and the company’s GRESB rating. 4HEûACQUISITIONûISûEXPECTEDûTOûCLOSEûINûTHEû
COMPANYûACHIEVINGûITSû#/ûmEETûEMISSIONû h4HEûINCLUSIONûOFûTHISûFRAMEWORKûCEMENTSû lRSTûHALFûOFû
reduction target in Europe. NSI’s strategy to fully integrate
0ROCEEDSûWILLûBEûUSEDûFORûRElNANCINGûANDû sustainability into all aspects of its business KARNOV INKS €160m BRIDGE
to cover new liquidity requirements. ANDûOPERATIONSvû.3)û#&/û!LIANNEûDEû*ONGû
Credit Agricole COORDINATEDûTHEûlNANCINGû said. “We believe this is critical as the Information services company KARNOV is
with Santander, BayernLB, Commerzbank, Intesa lNANCIALûPERFORMANCEûANDûLONG
TERMû backing its acquisition of the information-
Sanpaolo and Societe Generale also participating. viability of assets and businesses become BASEDûBUSINESSESûOFû4HOMSONû2EUTERSûINû
h)NûTHEûFUTUREûWEûWILLûLINKûOURûlNANCINGû increasingly correlated to their Spain and Wolters Kluwers in Spain and
portfolio even more closely to these sustainability.” &RANCEûWITHûAûõM
EQUIVALENTûBRIDGEûLOANû
ambitious decarbonisation targets,” said ABN AMRO, ING, Rabobank and "ELlUSûare from Nordea.
#&/û!RNOû!NTLITZûh&OLLOWINGûTHEûSUCCESSFULû
placement of green bonds, we are now also
meeting the growing demand for
SUSTAINABLEûlNANCIALûINSTRUMENTSûINûTHEû
area of loans.”
67ûBECAMEûTHEûlRSTûCARûMANUFACTURERûTOû
COMMITûTOûTHEû0ARISû!GREEMENTûCLIMATEû
targets in 2018 and has set itself a goal of
becoming net carbon neutral by 2050.
As part of its new auto e-mobility strategy,
PROVIDINGûTHEûlNANCINGûWITHû!".ûASû
sustainability coordinator and documentation
AGENTû.AUTA$UTILHûADVISEDû.3)
NORWAY
HEXAGON NETS REFINANCING
#OMPOSITEûCYLINDERûMAKERûHEXAGON
Karnov will repay part of the bridge loan
through an issue of new shares
CORRESPONDINGûTOûATûLEASTûûOFûITSûEXISTINGû
shares.
After the share issue, expected pro forma
net debt would be round 4.5 times as of the
end of June 2021.
Karnov provides information across the
areas of legal, tax and accounting and
environmental, health and safety.
the company has integrated decarbonisation
as part of its ESG, decarbonisation and
integrity initiative.
legal information services from its Nordic
67ûISûAIMINGûFORûûOFûITSûGLOBALûVEHICLEû
deliveries to be all-electric by 2030.
COMPOSITES has signed a NKr1.7bn (US$168m)
LOANûRElNANCING
4HEûlNANCINGûINCLUDESûAû.+RBNûTHREE
year term loan and a NKr350m
multicurrency revolving credit facility with
an initial three-year maturity and two
additional one-year extension options.
4HEûACQUISITIONSûWHICHûAREûEXPECTEDûTOû
be completed in 2022, will expand Karnov’s
BASEûINû$ENMARKûANDû3WEDENûANDûTOû
establish a strong market presence in Spain
and France.
0RIVATEûEQUITYûlRMû'-4û#OMMUNICATIONSû
NETHERLANDS 4HEûlNANCINGûWASûAGREEDûWITHûTWOûBANKSû 0ARTNERSûACQUIREDû+ARNOVûINûûAFTERûITSû
including Hexagon’s existing lender DNB SEPARATIONûFROMû4HOMSONû2EUTERSûSELLINGûITû
NSI ADDS SUSTAINABILITY Bank, which is also providing a NKr250m TOû2OTHSCHILDSû&IVEû!RROWSû0RINCIPALû
bilateral overdraft facility. Investments in 2015. Five Arrows exited the
#OMMERCIALûPROPERTYûINVESTORûNSI has !SûPARTûOFûTHEûRElNANCINGû(EXAGONû COMPANYûINûûTHROUGHûANû)0/ûOFûTHEû
AMENDEDûITSûõMûREVOLVINGûCREDITûFACILITYû intends to call all its outstanding bonds. company.
to include a sustainability-linked margin. 0REVIOUSLYû(EXAGONûHADûAûBILATERALû
4HEû2#&SûMATURITYûHASûBEENûRESETûFORûAûNEWû NKr600m multicurrency senior secured ELECTROLUX BAGS DEBUT SLL
lVE
YEARûTERMûWITHûTWOûONE
YEARûEXTENSIONû revolving credit facility and overdraft
OPTIONSûGIVINGûTHEûCOMPANYûmEXIBILITYûTOû facility that was due to mature in March Home appliance maker ELECTROLUX has
execute its development programme. 2023. SIGNEDûAûõBNûSUSTAINABILITY
LINKEDû
Hexagon makes high-pressure cylinders, REVOLVINGûCREDITûFACILITYûRElNANCINGûITSû
EMEA LOANS BOOKRUNNERS – FULLY FUELûSYSTEMSûANDûLOW
PRESSUREû,0'ûCYLINDERS EXISTINGûõBNû2#&ûTHATûWASûDUEûTOûMATUREûINû
SYNDICATED VOLUME May 2023.
BOOKRUNNERS: 1/1/2021 TO DATE 4HEûMULTI
CURRENCYûlNANCINGûHASûAûlVE

Managing No of Total Share SWEDEN year maturity with options to extend for up
bank or group issues US$(m) (%) to two years.
1 BNP Paribas 200 48,087.74 7.3 SECURITAS TAPS FOR B&D BUY 0RICINGûISûLINKEDûTOûTHEûCOMPANYSû
2 Societe Generale 115 42,801.39 6.5 sustainability goals, including being climate
3 Credit Agricole 184 37,460.56 5.7 Security services group SECURITAS is backing neutral in its operations by 2030; to be a
4 Deutsche Bank 114 34,234.06 5.2 its US$3.2bn transformative acquisition of LEADERûINûENERGY
EFlCIENTûPRODUCTSûTHATû
5 Bank of America 90 33,696.09 5.1 3TANLEYû"LACKûû$ECKERSûELECTRONICûSECURITYû reduce carbon emissions while in use; and
6 JP Morgan 101 32,538.86 5.0 unit with a fully committed bridge loan to continue ensuring the health and safety
7 UniCredit 140 26,929.34 4.1 underwritten by SEB. of its employees.
8 Citigroup 77 24,010.69 3.7 4HEûBRIDGEûLOANûWILLûBEûRElNANCEDûAFTERû 4HEûTARGETSûAREûALIGNEDûWITHûTHEû
9 Morgan Stanley 32 23,371.29 3.6 the completion of the acquisition by a mix company’s “For the Better 2030”
10 HSBC 99 23,045.17 3.5 of equity and long-term debt. sustainability framework.
Total 734 655,443.05 4HEûEQUITYûCOMPONENTûOFûTHEûRElNANCINGû 4HEûlNANCINGûCLOSEDûOVERSUBSCRIBEDûWITHû
Proportional credit will come from the proceeds of an around syndicate of 11 banks and was increased
Source: Refinitiv SDC code: R17 US$915m-equivalent rights issue, which will FROMûõMûATûLAUNCH

56 International Financing Review December 11 2021

 LOANS NORTH AMERICA

Citigroup and SEB were coordinating 0RICINGûISûLINKEDûTOû%3'ûKEYûPERFORMANCEû DUNELM TAKES SLL

bookrunners and mandated lead indicators, focused on social and
arrangers. environmental targets aligned to Homeware retailer DUNELM has agreed a
Danske Bank, Deutsche Bank and HSBC EU.ETWORKSû%3'ûANDûlNANCIALûFRAMEWORKS £185m sustainability-linked revolving credit
joined as bookrunners and mandated lead 4HEûDEALûATTRACTEDûSIGNIlCANTûINTERESTû FACILITYûREPLACINGûITSûEXISTINGûaMû2#&û
arrangers, while Banco Bradesco, BNP from infrastructure investors with a group which was due to mature in March 2023.
Paribas, JP Morgan, Morgan Stanley, Svenska of 16 banks and blue-chip institutional 4HEûUNSECUREDû2#&ûWHICHûISû$UNELMSû
Handelsbanken and Swedbank joined as
YEARûMATURITYûWITHû
mandated lead arrangers.
#ITIGROUPûISûDOCUMENTATIONûAGENTûWHILEû
3%"ûISûSUSTAINABILITYûCOORDINATORû$ANSKEû
Bank is facility agent.
SWITZERLAND
MERCURIA UNITS NET US$2.2bn
Energy trader MERCURIA’s North American
operating subsidiaries have closed a
US$2.2bn senior secured borrowing base
facility, replacing a US$1.7bn one-year
lNANCINGûAGREEDûLASTûYEAR
4HEûFACILITYûWILLûBEûUSEDûTOûlNANCEûTHEû
working capital needs in North America,
YEARûTERMûLOANû"ûANDûAûõMûSIX
YEARû 2024.
ASûWELLûASûBACKINGûITSûCAPACITYûTOûlNANCEû
the ongoing transition into green energy
BACKûSERVICEûFORûûOFûITSû
through its growing renewable portfolio in
BACKûSERVICESû
North America.
Borrowers under the facility are
Mercuria Energy America, Minerva
Bunkering (USA), and Mercuria
#OMMODITIESû#ANADAû#ORP
investors participating.
Lenders comprise Allianz Global Investors,
Axa IM Alts, Edmond de Rothschild AM Bridge,
MEAG, Schroders Capital, Vantage
Infrastructure, Sabadell, DNB, Export
Development Canada, Intesa Sanpaolo, Lloyds,
National Australia Bank, NatWest, NIBC,
Santander and Royal Bank of Canada.
2"#ûWASûDEBTûADVISERûTOûEU.ETWORKSûWITHû
!LLENûû/VERYûWASûLEGALûADVISERû4HEûLENDERSû
were advised by Latham & Watkins.
53ûPRIVATEûEQUITYûlRMû3TONEPEAKû
)NFRASTRUCTUREû0ARTNERSûACQUIREDûAûMAJORITYû
stake in euNetworks in 2018, backing the
DEALûWITHûAûõMûLEVERAGEDûLOANûARRANGEDû
BYû"ARCLAYSûALONGSIDEû*0û-ORGANûANDû2"#
4HATûlNANCINGûCOMPRISEDûAûõMû
SEVEN
revolving credit facility.
DIVERSIFIED ENERGY WRAPS
BORROWING BASE
London-listed gas and oil producer
DIVERSIFIED ENERGY has completed the semi-
annual redetermination of its senior
lRSTû3,,ûHASûAûFOUR
extension options for up to two further
years.
0RICINGûONûTHEûFACILITYûISûLINKEDûTOûFOURû
sustainability performance targets aligned
to the company’s sustainability plans,
including its commitment to pursue a Net
:EROû0ATHWAY
4ARGETSûCOMPRISEûAûûREDUCTIONûINû
$UNELMSûGREENHOUSEûGASûEMISSIONSûBYûû
against a 2019 base, in line with the Science
"ASEDû4ARGETSûINITIATIVEûûDEGREESûSCENARIO
4HEûCOMPANYûISûAIMINGûFORûALLûOWNû
brand cotton products to meet its “More
Responsible Sourced” standard by 2025, as
WELLûASûAûûREDUCTIONûINûPLASTICû
packaging of its own brand products by
$UNELMûWILLûALSOûLOOKûTOûPROVIDEûAû
CUSTOMERûTAKE
PRODUCTSûBYûû4AKE
involve collecting used products and
materials from consumers for
reprocessing.
0ROGRESSûONûTHEûTARGETSûWILLûBEûMEASUREDû
ANNUALLYûANDûVERIlEDûBYûANûINDEPENDENTû
4HEûlNANCINGûCLOSEDûOVERSUBSCRIBEDû secured credit facility, increasing the external assurance provider and published
allowing Mercuria to increase the size by borrowing base on the loan by US$200m to INû$UNELMSûANNUALûREPORT
US$500m and add a two-year tranche. US$825m. Based on performance against these
Societe Generale, MUFG, Rabobank, ING and 4HEûINCREASEûCOMESûONûTHEûBACKûOFû targets, there will be a 2.5bp premium or
SMBC were joint lead arrangers and joint higher commodity prices and added reduction to the base margin.
bookrunners. Societe Generale acted as COLLATERALûFROMû$IVERSIlEDSûACQUISITIONûOFû
administrative agent and collateral agent, /KLAHOMA
BASEDû4APSTONEû%NERGY HILTON EYES REFINANCING
while MUFG, Natixis, Rabobank, ING and h4HEûMOREûTHANûûINCREASEûINûTHEû
3-"#ûACTEDûASûCO
SYNDICATIONûAGENTSûCredit CREDITûFACILITYûBORROWINGûBASEûAFlRMSûOURû Foods and meals producer HILTON FOOD is
Agricole CIB, Mizuho and UniCredit are BANKSûTRUSTûINû$IVERSIlEDSûSTEWARDSHIPû LOOKINGûTOûRElNANCEûaMûOFûDEBTû
participating as co-documentation agents ANDûCONlDENCEûINûOURûASSETSûTOûGENERATEû FACILITIESûAFTERûAGREEINGûTHEûõMû
with an additional 10 banks participating STRONGûFREEûCASHmOWûTOûSUPPORTûOURû ACQUISITIONûOFû$UTCHûSMOKEDûSALMONû
at various commitment levels. business, repay our borrowings, fund our producer Foppen.
ESG initiatives for our stakeholders and 4HEûRElNANCINGûTOGETHERûWITHûCASHû
sustain our dividends for investors,” Rusty balances, will provide funds for future
UK (UTSONû*Rû#%/ûOFû$IVERSIlEDûSAID capital investment and Hilton’s working
4HEûNEXTûREDETERMINATIONûOFûTHEûFACILITYû capital requirements.
EUNETWORKS INKS ESG-LINKED REFI is scheduled for the second quarter of 4HEûACQUISITIONûOFû&OPPENûINCLUDINGûAû
2022. £10m cash injection and working capital
"ANDWIDTHûlBREûNETWORKûOPERATORû
EUNETWORKS HASûCOMPLETEDûTHEûRElNANCINGû
OFûITSûDEBTûTHROUGHûAûõMûSUSTAINABILITY
July 2023 and pays a margin of 250bp over
LINKEDûLONG
TERMûINFRASTRUCTUREûlNANCING one-month Libor with a pricing grid
4HEûlNANCINGûINCLUDESûSIGNIlCANTû
undrawn, committed debt facilities to
fund the construction and development
of the company’s next generation critical
bandwidth infrastructure in Europe as
well as a large committed revolving
capital expenditure facility to
support organic growth opportunities
and M&A.
4HEûCREDITûFACILITYûWHICHûISûSECUREDûBYû FUNDINGûWILLûBEûMAINLYûlNANCEDûTHROUGHû
natural gas and oil properties, matures in an equity placing of about £75m, which
WILLûALSOûBEûUSEDûTOûPARTIALLYûRElNANCEûTHEû
acquisition of UK meat supplier Fairfax
ranging between 200bp and 300bp Meadow which was announced in October.
depending on utilisation. Rabobank and Ulster Bank are also
4HEûBANKûSYNDICATEûONûTHEûFACILITYûISûLEDû providing a committed acquisition bridge
by KeyBank and includes BBVA, Branch loan.
Banking & Trust, Citizens Bank, DNB Bank, Hilton agreed two syndicated loans in
Huntington Bank, RBC, CIBC, ING, US Bank, 2017 via Royal Bank of Scotland, Barclays
CIT Bank, Credit Agricole CIB, First Tennessee ANDû(3"#û4HOSEûLOANSûWEREûUSEDûTOûPART
Bank and IberiaBank, as well as Credit Suisse, lNANCEû(ILTONSûACQUISITIONûOFû5+ûCHILLEDû
Goldman Sachs and Morgan Stanley. lSHûPRODUCERû)CELANDICû'ROUP
International Financing Review December 11 2021 57
 00,ûANDûTHEûBORROWINGûENTITIESûAREûALLû
RATEDû!nûBYû30
NORTH AMERICA LEVERAGED LOANS
DOLLAR GENERAL NETS RCF

UNITED STATES $ISCOUNTûRETAILERûDOLLAR GENERAL signed a UNITED STATES

53BNûlVE
YEARûREVOLVINGûCREDITûFACILITYû
PPL UNITS SIGN RCFS that can be increased by up to US$500m. SS&C TAPS FOR BLUE PRISM BUY
Subsidiaries of utilities company PPL have signed
BASEDûlNTECHûCOMPANYûSS&C TECHNOLOGIES
US$2.8bn of amended and extended loans.
4HEûFACILITIESûCOMPRISEûAû53BNû
REVOLVINGûCREDITûFACILITYûFORû00,û#APITALû
0RICINGûONûTHEû2#&ûWHICHûREPLACESûAû
loan from 2019, is linked to the borrower’s
debt rating.
&ORû!!nûTHEûFACILITYûFEEûISûBPûANDûTHEû
margin is 79.5bp over Libor; for Baa1/BBB+
53
is backing its £1.24bn acquisition of UK
SOFTWAREûGROUPû"LUEû0RISMûWITHû53BNû
of senior secured incremental term loans
&UNDINGûAû53Mû2#&ûFORû00,û%LECTRICû it is 9bp and 91bp; for Baa2/BBB it is 11bp arranged by Royal Bank of Canada.
5TILITIESû#ORPûAû53Mû2#&ûFORû,OUISVILLEû ANDûBPûFORû"AA"""nûITûISûBPûANDû 4HEûSEVEN
YEARûlNANCINGûPAYSûAûMARGINûOFû
'ASûANDû%LECTRICû#OûANDûAû53Mû2#&ûFORû
+ENTUCKYû5TILITIESû#O
4HEûFACILITYûFORû00,û#APITALû&UNDINGûWASû
decreased from US$1.45bn on the existing
DEALû4HATû2#&ûFEATURESû00,û#ORPûASû
guarantor and includes provisions for
.ARRAGANSETTû%LECTRICû#OûTOûBEûADDEDûASûANû
BPûANDûFORûLOWERûTHANû"AA"""nûITûISû
17.5bp and 132.5bp.
#OVENANTSûRESTRICTû$OLLARû'ENERALSû
leverage ratio to a maximum of 3.75 times
ANDûITSûlXEDûCHARGEûCOVERAGEûRATIOûTOûAû
minimum of two times.
4HEûNEWû2#&SûPRICINGûISûUNCHANGEDû
200bp over Libor, or if closing occurs after
the end of 2021, SOFR with a maximum
CREDITûSPREADûADJUSTMENTûOFûBPû4HEREûISûAû
ûmOOR
4HEûACQUISITIONûISûEXPECTEDûTOûCOMPLETEûINû
2022.
33#SûALL
CASHûOFFERûOFûûPENCEûPERû
additional borrower.
Each of the facilities’ maturity dates has
BEENûEXTENDEDûTOû$ECEMBERûûûFROMû
January 2024.
0RICINGûISûTHEûSAMEûFORûTHEûFOURûFACILITIESû
and is based on debt ratings. For A1/A+ the
from the replaced US$1.25bn from 2019.
Citigroup is the administrative agent.
Additional lenders are US Bank, Wells Fargo,
Goldman Sachs, Fifth Third Bank, JP Morgan,
PNC Bank, Regions Bank, Truist Bank, Bank of
the West, Capital One, Huntington National
"LUEû0RISMûSHAREûWASûHIGHERûTHANûITSûEARLIERû
possible bid of 1,200 pence, and above
PRIVATEûEQUITYûlRMû6ISTASûlNALûOFFERûOFû
1,250 pence.
Vista backed its offer with a US$1.415bn
term loan B2 raised in October. Nomura,
commitment fee is 7.5bp and the margin is
87.5bp over Libor; for A2/A it is 10bp and
BPûFORû!!nûITûISûBPûANDûBPû
for Baa1/BBB+ it is 17.5bp and 125bp; for
Baa2/BBB it is 20bp and 150bp; and for Baa3/
"""nûITûISûBPûANDûBP
LIENûTERMûLOANû"ûTHATûWILLû
#OVENANTSûFORûEACHûOFûTHEûREVOLVERSû
Bank, KeyBank, BMO Harris Bank, First Horizon
Bank and Northern Trust.
$OLLARû'ENERALûISûRATEDû"AAûBYû-OODYSû
ANDû"""ûBYû30
CSC RAISES DEBT FOR INTERTRUST
*EFFERIESû++2û-ACQUARIEû#APITALûANDû/AKû
Hill were joint lead arrangers and joint
bookrunners on that loan.
Healthcare company SEVITA is in the
market with a fungible US$200m
INCREMENTALûlRST
fund an acquisition pipeline.
restrict the borrowers’ maximum US-based corporate, legal and tax services 4HEûLOANûWHICHûMATURESûINû-ARCHûû
consolidated debt to consolidated provider CORPORATE SERVICES COMPANY is ISûOFFEREDûATûBPûOVERû,IBORûWITHûAûû
CAPITALISATIONûRATIOûTOû BACKINGûITSûõBNûACQUISITIONûOFû$UTCHû mOORûINûLINEûWITHûANûEXISTINGûLOANû)TûCOMESû
Wells Fargo is the administrative agent for lNANCIALûSERVICESûlRMû)NTERTRUSTûWITHû WITHûAûû/)$
EACHûFACILITYû4HEûOTHERûLENDERSûAREûJP AROUNDûõBNûOFûSENIORûTERMûDEBTûFROMûAû 4HEûMARGINûISûTIEDûTOûAûBPûSTEPûDOWNû
Morgan, Bank of America, Barclays, Mizuho, Bank group of banks. WHENûTHEûlRST
LIENûNETûLEVERAGEûISûûTIMESû
of Montreal, CIBC, Credit Suisse, Goldman Sachs,
Morgan Stanley, MUFG, PNC, RBC, Bank of Nova
Scotia, Truist, US Bank, Banco Santander, Bank of
New York Mellon, TD, First National Bank of
Pennsylvania and Huntington National Bank.
AMERICAS LOANS BOOKRUNNERS – FULLY
SYNDICATED VOLUME
LIENûTERMûLOANûTOûFUNDûITSûACQUISITIONûOFû
BOOKRUNNERS: 1/1/2021 TO DATE
Managing No of Total Share
4HEûDEBTûWHICHûISûFULLYûCOMMITTEDûONûAû
certain funds basis, will be used, along
with available cash, to fund the
ACQUISITIONûTHEûRElNANCINGûOFû)NTERTRUSTSû
existing debt; the settlement of fair value
of Intertrust’s derivatives; and the
payment of fees.
*EFFERIESûISûACTINGûASûLEADû-!ûlNANCIALû
ADVISERûTOû#3#ûWHILEû7ELLSû&ARGOûISû
ASSISTINGûlNANCIALûADVISER
and another 25bp step down at 4.4 times.
It comes with 101 soft call protection for
SIXûMONTHSûANDûAMORTISESûATûûPERûANNUM
Goldman Sachs is the lead-left arranger.
#ORPORATEûANDûTRANCHEûRATINGSûAREû""
Real estate software provider REALPAGE
launched a fungible incremental US$260m
lRST
PEERû(OME7ISE$OCS
4HEûTERMûLOANûISûGUIDEDûATûBPûOVERû
bank or group issues US$(m) (%) $EUTSCHEû"ANKûANDû'OLDMANû3ACHSûAREû ,IBORûWITHûAûûmOORûTHEûSAMEûASûTHEû
1 Bank of America 1395 397,984.49 12.8 ACTINGûASû)NTERTRUSTSûlNANCIALûADVISERSûWITHû EXISTINGûCOVENANT
LITEûlRST
LIENûLOANûANDûAû
2 JP Morgan 1210 359,426.79 11.6 2OTHSCHILDûACTINGûASûINDEPENDENTûlNANCIALû û/)$
3 Citigroup 612 226,698.73 7.3 adviser to Intertrust’s supervisory board. UBS and Credit Suisse are lead arrangers for
4 Wells Fargo 937 218,208.23 7.0 4HEûACQUISITIONûISûEXPECTEDûTOûCLOSEûINû the transaction.
5 Goldman Sachs 457 126,623.94 4.1 the second half of 2022.
6 RBC 491 113,364.08 3.7 4HEûALL
CASH
OFFERûVALUESû)NTERTRUSTû FLEETCOR SEEKS US$1bn ADD-ON
7 Barclays 492 112,884.71 3.6 SHARESûATûõûEACHûAûPREMIUMûOFûAROUNDû
8 BMO 491 83,495.25 2.7 ûONûTHEIRûVALUEûONû.OVEMBERûûWHENû #OMMERCIALûPAYMENTSûPROVIDERûFLEETCOR
9 MUFG 399 81,714.84 2.6 it had announced another possible offer TECHNOLOGIES is raising an incremental

10 US Bancorp 439 76,765.14 2.5 FROMûPRIVATEûEQUITYûlRMû#6#û#APITALû US$1bn term loan B.

Total 4,582 3,099,825.14 0ARTNERS 0ROCEEDSûREPAYûOUTSTANDINGûBALANCESû
Proportional credit (OWEVERû#6#ûLATERûSCRAPPEDûITSûõûPERû under the company’s revolving credit
Source: Refinitiv SDC code: R7 share bid. facility, provide cash to the balance sheet to

58 International Financing Review December 11 2021

 LEVERAGED LOANS

support general corporate purposes 4HEûSECOND LIENûLOANûWHICHûMATURESûONû*UNEû 4HEûCOMPANYSûPRIVATEûEQUITYûSPONSORSû

including future acquisitions and share 23 2029, is offered at 825bp over Libor with a AREû/AKû(ILLû#APITALû0ARTNERSûANDû#ANADAû
repurchases. ûmOORûINûLINEûWITHûTHEûEXISTINGûSECOND
LIENû 0ENSIONû0LANû)NVESTMENTû"OARD
4HEûLOANûWHICHûMATURESûONû!PRILûû LOANû)TûISûOFFEREDûWITHûAûnû/)$ #ORPORATEûANDûFACILITYûRATINGSûAREû""n
2028, is offered at 175bp over Libor with a 4HEû53MûLOANûWILLûCOMBINEûWITHûTHEû Financial services company COWEN
ûmOORûINûLINEûWITHûANûEXISTINGûTERMûLOANû"û
)TûISûALSOûOFFEREDûWITHûANû/)$ûOFû
A 5bp fee amendment fee will be paid to
consenting lenders.
LIENûANDûSECOND
Advisors.
existing second-lien loan to form a lNALISEDûTERMSûONûAû53MûSENIORû
US$252.5m tranche. secured term loan B add-on that will fund
4HEûLOANSûHAVEûTHEûSAMEûCALLûPROTECTIONû THEûACQUISITIONûOFûPEERû0ORTICOû#APITALû
TERMSûASûTHEûEXISTINGûlRST
Bank of America is the lead arranger. lien term loans. 4HEûLOANûWHICHûMATURESûONû-ARCHûû
4HEûCOMPANYûISSUEDûAû53BNûTERMû Jefferies is arranging the deal. 2028, was priced at 325bp over Libor with a
loan B in April to repay a portion of existing 4HEûCOMPANYûISSUEDûAû53MûlRST
LIENû ûmOORû)TûWASûISSUEDûWITHûAûû/)$ûFROMû
revolver borrowings, an existing US$339m loan and a US$165m second-lien loan in GUIDANCEûOFûn
term loan B and fund the acquisition of peer *UNEû4HEûlRST
LIENûLOANûCAMEûWITHûûSOFTû 4HEûLOANûAMORTISESûATûûPERûANNUM
Associated Foreign Exchange. call protection for six months and the 4HEûADD
ONûLOANûWILLûBEûCOMBINEDûWITHûANû
Recreational vehicle manufacturer second-lien loan came with hard call existing loan to form a tranche size of
CAMPING WORLD is in the market with a protection that kicked off at 102 before US$447.75m. Soft call protection of 101 for
US$300m fungible incremental term loan B. decreasing to 101. six months will be refreshed on the entire
0ROCEEDSûWILLûBEûUSEDûFORûGENERALû It also priced a US$215m incremental tranche.
corporate purposes, including adding cash FUNGIBLEûlRST
LIENûTERMûLOANûANDûAû53Mû Morgan Stanley led the deal and is the
to the balance sheet to fund future mergers incremental fungible second-lien term loan administrative agent.
and acquisitions. in September. #ORPORATEûRATINGSûAREû"A""nûANDûFACILITYû
4HEûLOANûWHICHûMATURESûINû*UNEûûISû MISTER CAR WASH has launched a US$290m RATINGSûAREû"""n
OFFEREDûATûBPûOVERû,IBORûWITHûAûû INCREMENTALûlRST
LIENûTERMûLOANûTHATûWILLû
mOORûINûLINEûWITHûANûEXISTINGûTERMûLOANû"û)Tû lNANCEûTHEûACQUISITIONûOFûPEERû#LEANû3TREAKû AVEANNA SEALS SECOND-LIEN
ISûALSOûOFFEREDûWITHûANû/)$ûOFûn Ventures.
Soft call protection will be reset at 101 for 4HEûLOANûWHICHûMATURESûINû-AYûûISû Home care provider AVEANNA HEALTHCARE has
six months for the entire tranche. It will OFFEREDûATûBPûOVERû,IBORûWITHûAûûmOORû wrapped a US$415m senior secured second-
AMORTISEûATûûPERûANNUM ANDûANû/)$ûOFûn LIENûTERMûLOANûTOûlNANCEûITSûACQUISITIONûOFû
Goldman Sachs is the lead bookrunner. JP It does not have call protection. PEERSû#OMFORTû#AREûANDû!CCREDITEDû.URSINGû
Morgan is also a bookrunner. Jefferies is leading the transaction. Services.
4HEûCOMPANYûISSUEDûAûSEVEN
YEARû 4HEûCOMPANYûREPRICEDûAû53MûlRST
4HEûEIGHT
YEARûDEALûWASûPRICEDûATûBPû
53BNûLOANû4,"ûINû-AYûTOûRElNANCEûANû
EXISTINGû4,"ûDUEûINû
#ORPORATEûRATINGSûAREû"A"ûANDûlRST
LIENû AMEX GBT NETS US$1bn
TRANCHEûRATINGSûAREû"A""n
Healthcare company WCG PURCHASER
launched a fungible incremental US$200m
lRST
LIENûTERMûLOANûTOûREPAYûITSûREVOLVERûANDû
fund cash to its balance sheet.
LIENûRATINGSûAREû""nû
lien term loan in February 2020. OVERû,IBORûFROMûGUIDANCEûOFûBPnBPû
WITHûAûûmOORûANDûAûû/)$
Hard call protection on the eight-year
loan kicks off at 102. It will decrease to 101
4RAVELûPLATFORMûAMERICAN EXPRESS GLOBAL and then par with respect to any
BUSINESS TRAVEL has received a US$1bn term prepayments made in connection with any
loan B3 via sole arranger Morgan Stanley. equity issuance.
4HEûCOMPANYûAGREEDûONû$ECEMBERûûTOû #ORPORATEûANDûlRST
0RICINGûONûTHEûLOANûWHICHûMATURESûONû merge with special purpose acquisition 3ECOND
LIENûRATINGSûAREû#AA###
January 8 2027, is guided at 400bp over Libor COMPANYû!POLLOû3TRATEGICû'ROWTHû#APITALûTOû Barclays was the lead arranger and
WITHûAûûmOORûSAMEûASûTHEûCOMPANYSû create the world’s largest publicly traded administrative agent.
existing loan. business-to-business travel platform. Healthcare company CLOUDMED has upsized
4HEû/)$ûISûOFFEREDûBETWEENûûANDû 4HEûLOANûWHICHûMATURESûINû$ECEMBERû AûFUNGIBLEûINCREMENTALûlRST
LIENûTERMûLOANû"û
Barclays is lead-left arranger and 2026, will repay US$600m of certain term TOû53MûFROMû53Mû0ROCEEDSûWILLû
administrative agent. loan facilities and provide US$400m of fund its acquisition of peer par8o.
lNANCINGûFORûGENERALûCORPORATEûPURPOSESû
FAIRBANKS MARKETS ADD-ON including backstopping potential US LEVERAGED LOANS
redemptions. BOOKRUNNERS: 1/1/2021 TO DATE
$EFENCEûEQUIPMENTûMAKERûFAIRBANKS MORSE #ORPORATEûANDûFACILITYûRATINGSûAREû"n Managing No of Total Share
DEFENSE has launched a fungible US$240m BERLIN PACKAGING has raised a US$160m bank or group issues US$(m) (%)
INCREMENTALûlRST
LIENûTERMûLOANûANDûAû FUNGIBLEûlRST
LIENû"ûTERMûLOANûADD
ONûTOû 1 Bank of America 827 188,043.80 13.7
fungible US$40m incremental second-lien support acquisitions. 2 JP Morgan 657 118,068.56 8.6
term loan. 4HEûLOANûHASûTHEûSAMEû-ARCHûû 3 Wells Fargo 501 93,196.76 6.8
0ROCEEDSûWILLûBEûUSEDûTOûFUNDûANû maturity as the borrower’s US$1.07bn term 4 Goldman Sachs 376 71,639.71 5.2
undisclosed acquisition and pay down the loan B that was agreed in August. It also 5 Barclays 366 70,096.83 5.1
outstanding balance on an asset-based loan. carries the same pricing of 375bp over Libor 6 Credit Suisse 329 64,391.71 4.7
4HEûlRST
LIENûLOANûWHICHûMATURESûONû*UNEû WITHûAûûmOOR 7 Citigroup 289 56,498.20 4.1
23 2028, is offered at 475bp over Libor with 4HEûADD
ONûWASûISSUEDûWITHûAûû/)$ 8 Deutsche Bank 292 49,223.66 3.6
ûmOORûINûLINEûWITHûTHEûEXISTINGûlRST
LIENû It comes with 101 soft call protection for 9 Truist Financial 290 43,348.45 3.2
LOANû)TûISûOFFEREDûWITHûANû/)$ûOFûn SIXûMONTHSûANDûAMORTISESûATûûPERûANNUM 10 Jefferies 196 41,784.62 3.0
4HEû53MûLOANûWILLûCOMBINEûWITHûTHEû Goldman Sachs was the lead-left arranger Total 2,431 1,372,857.04
EXISTINGûlRST
LIENûLOANûTOûFORMûAû53Mû and agent. Barclays, Jefferies and MUFG were Excluding Project Finance.
tranche. also arrangers. Source: Refinitiv SDC code: P2

International Financing Review December 11 2021 59

 4HEûLOANûWHICHûMATURESûONû/CTOBERûû Swedish pest control group ANTICIMEX on It comes with 101 soft call protection for
2027, was priced at 425bp over Libor with a upsized an incremental, non-fungible senior SIXûMONTHSûANDûAMORTISESûATûûPERû
ûmOORûINûLINEûWITHûANûEXISTINGûTERMûLOANû secured term loan B to US$375m from annum.
"û4HEû/)$ûWASûTIGHTENEDûTOûûFROMû US$350m. !ûTICKINGûFEEûTHATûISûûOFûTHEûMARGINû
It comes with 101 soft call protection for 0ROCEEDSûWILLûRElNANCEûITSûREVOLVERûFUNDû kicks off on day 46 after the deal closes.
SIXûMONTHSûANDûAMORTISESûATûûPERûANNUM cash to the balance sheet and be used for 4HISûWILLûINCREASEûTOûûOFûTHEûMARGINûONû
Goldman Sachs was lead left arranger. general corporate purposes. day 91.
Deutsche Bank is also an arranger. 4HEûLOANûWHICHûMATURESûONû.OVEMBERûû Goldman Sachs was lead-left arranger. RBC
#LOUDMEDûREPRICEDûITSû53MûlRST
LIENû 2028, priced at 400bp over Libor with a was also an arranger and administrative
TERMûLOANûINû/CTOBERû)TûlRMEDûATûBPû ûmOORûONûTHEûTIGHTûENDûOFûGUIDANCEû agent.
OVERû,IBORûWITHûAûûmOORûATûPAR OFûBPnBPû4HEû/)$ûWASûREVISEDûTOû Alcohol monitoring device
#ORPORATEûANDûTRANCHEûRATINGSûAREû""n 99.5 from 99. It now comes with a 25bp manufacturer SMART START has raised
US RADIOLOGY SPECIALISTS has sealed a STEPDOWNûWHENûTHEûlRST
LIENûNETûLEVERAGEû US$465m of senior secured credit facilities
FUNGIBLEû53MûINCREMENTALûlRST
LIENû ISûlVEûTIMES that will back its buyout by private equity
TERMûLOANûANDûREPRICEDûAû53MûlRST
LIENû It comes with soft call protection of 101 for lRMû!POLLOû'LOBALû-ANAGEMENT
term loan. SIXûMONTHSûANDûAMORTISESûATûûPERûANNUM 4HEûlNANCINGûCOMPRISESûAûSEVEN
YEARû
0ROCEEDSûWILLûFUNDûTHEûACQUISITIONûOFûPEERû Morgan Stanley was the sole arranger. 53MûlRST
LIENûTERMûLOANûANDûANûEIGHT

Alpine and repay debt under a revolving Global Loan Agency Services is the YEARû53MûSECOND
LIENûTERMûLOANû4HEREû
credit facility. administrative agent. ISûALSOûAûlVE
YEARû53MûREVOLVINGûCREDITû
"OTHûLOANSûWHICHûMATUREûONû$ECEMBERû #ORPORATEûRATINGSûAREû""û&ACILITYûRATINGSû facility.
15 2027, were priced at 525bp over Libor are B2/B. 4HEûlRST
LIENûLOANûWASûPRICEDûATûBPû
WITHûAûûmOORûUPûFROMûGUIDANCEûOFû
BPû4HISûISûSTILLûBPûTIGHTERûTHANûTHEû
existing loan, which was priced at 550bp
over Libor.
LIENûLOANûPRICEDûATûBPû
4HEû/)$ûONûTHEûINCREMENTALûLOANûWASû
Logistics services company AIT WORLDWIDE
upsized an incremental loan to fund its
acquisition of Select Express and pay down
its revolver.
4HEû*ORDANû#OMPANY
OVERû,IBORûFROMûBPnBPûWITHûAûû
mOORûANDûANû/)$ûOFûû)TûINCLUDESûûSOFTû
call protection for six months.
4HEûSECOND
OWNEDû!)4û OVERû,IBORûFROMûBPnBPûWITHûAûû
REVISEDûTOûûFROMûû4HEûREPRICINGûWASû 7ORLDWIDEûINCREASEDûTHEûFUNGIBLEûlRST
LIENû mOORûANDûAûû/)$û(ARDûCALLûPROTECTIONû
issued at par. TERMûLOANûTOû53MûFROMû53Mû4HEû kicks off at 102 before decreasing to 101.
4HEûLOANSûCOMEûWITHûûSOFTûCALLû increased proceeds will fund cash to the Jefferies, BNP Paribas, Barclays and RBC
protection for six months and amortise at company’s balance sheet for permitted were bookrunners.
ûPERûANNUM acquisitions and investments, as well as
Barclays was the lead-left bookrunner. other general corporate purposes. DAVIS-STANDARD RINGS THE CHANGES
Capital One, Deutsche Bank and Fifth Third were 0RICINGûONûTHEûLOANûWHICHûMATURESûONû
also bookrunners. !PRILûûûlNALISEDûATûBPûOVERû,IBORû Manufacturing company DAVIS-STANDARD
#ORPORATEûANDûlRST
LIENûRATINGSûAREû""n WITHûAûûmOORû4HEû/)$ûlRMEDûATûû lNALISEDûAû53MûTERMûLOANû"ûTHATûWILLû
FROMûGUIDANCEûOFûn FUNDûITSûBUYOUTûBYû'AMUTû#APITALû
BROOK + WHITTLE TIGHTENS MARGIN 4HEûLOANûCARRIESûNOûCALLûPROTECTIONûANDû Management after making a number of
AMORTISESûATûûPERûANNUM investor-friendly changes.
Label manufacturer BROOK + WHITTLE tightened #ORPORATEûRATINGSûAREû""ûWHILEûlRST
LIENû 4HEûLOANûlRMEDûATûBPûOVERû,IBORûWITHû
THEûMARGINûONûAûlRST
LIENûLOANûTHATûWILLûFUNDû tranche ratings are B1/B. AûûmOORûANDûAûû/)$ûWIDENINGûTHEû
ITSûBUYOUTûBYûPRIVATEûEQUITYûlRMû'ENSTARû Goldman Sachs was lead-left arranger and TERMSûFROMûINITIALûGUIDANCEûOFûBPnBPû
#APITAL
4HEûTRANSACTIONûALSOûINCLUDESûAûPRIVATELYû
placed US$169m second-lien term loan and
a US$50m revolving credit facility.
4HEûlRST
LIENûLOANûCOMPRISESûAû53Mû
term loan and a US$100m delayed draw
term loan. It priced at 400bp over Libor with
administrative agent. Credit Suisse, BMO, BNP WITHûAûûmOORûANDûAûû/)$û)NûADDITIONû
Paribas and Citizens were also arrangers. the leveraged-based pricing stepdowns
originally offered were removed.
II-VI COMPLETES US$2.8bn LOAN It now comes with 101 hard call
protection for 18 months, amended from
Optical components maker II-VI has priced a soft call protection for six months initially,
53BNûlRST
LIENûTERMûLOANû"ûTHATûWILLû ANDûAMORTISESûATûûPERûANNUMûFROMûûATû
AûûmOORûDOWNûPREVIOUSûGUIDANCEûOFû lNANCEûITSûACQUISITIONûOFûPEERû#OHERENTûANDû launch.
450bp. RElNANCEûDEBT BMO led the transaction, which also
4HEûlRST
LIENûLOANûNOWûCOMESûWITHûAûBPû 4HEûSEVEN
YEARûLOANûlRMEDûATûBPûOVERû includes a US$55m revolving credit facility.
STEPDOWNûWHENûTHEûlRST
LIENûNETûLEVERAGEûISû ,IBORûWITHûAûûmOORûANDûAûû/)$û)Tû $AVIS
3TANDARDûISûBACKEDûBYû/.#!0ûTHEû
4.75 times, and another 25bp stepdown
WHENûTHEûCOMPANYûGOESûPUBLICû4HEûû/)$û
was unchanged.
4HEû$$4,ûCOMESûWITHûAûTICKINGûFEEûTHATû
WILLûKICKûOFFûATûûOFûTHEûMARGINûONûDAYûû
LIENûTERMû
AFTERûTRANSACTIONûCLOSEû4HISûWILLûINCREASEûTOû
comes with 101 soft call protection for six
months.
JP Morgan led the deal and is
administrative agent.
#ORPORATEûRATINGSûAREû"A""n""ûANDû
SECUREDûRATINGSûAREû"A"""""n
middle-market private equity platform of
/NEXû#ORPû#ORPORATEûANDû4,"ûRATINGSûAREû
B2/B.
Fibre optic services provider METRONET
CLOSEDûAûFUNGIBLEû53MûlRST
loan B.
ûOFûTHEûMARGINûONûDAYû 0AYROLLûSOFTWAREûPROVIDERûCAST & CREW 4HEûLOANûWHICHûMATURESûINû*UNEûû
It comes with 101 soft call protection for completed an incremental seven-year PRICEDûATûBPûOVERû,IBORûWITHûAûû
six months. 53MûlRST
LIENûTERMûLOANû"ûTOûFUNDûITSû mOORûINûLINEûWITHûANûEXISTINGûlRST
LIENû
Credit Suisse, Wells Fargo, Jefferies and BMO ACQUISITIONûOFûPEERûTHEû4EAMû#OMPANIES TERMûLOANû)TûWASûISSUEDûWITHûANû/)$ûOFû
were arrangers. 4HEûNON
FUNGIBLEûLOANûWASûPRICEDûATû 99.75.
#ORPORATEûRATINGSûAREû""nûANDûFACILITYû BPûOVERû,IBORûWITHûAûûmOORûANDûANû )TûWILLûAMORTISEûATûûPERûANNUMûALSOûINû
RATINGSûAREû""n /)$ûOFûûTIGHTENEDûFROMûn line with the existing loan.

60 International Financing Review December 11 2021

 LEVERAGED LOANS

Goldman Sachs was the lead bookrunner.

TD, Citizens, Fifth Third and KKR Capital Markets
were also bookrunners.
4HEûCOMPANYûISûBACKEDûBYûPRIVATEûEQUITYû
Corporate distress rises to
sponsors Oak Hill and KKR Infrastructure.
#ORPORATEûRATINGSûAREû""nûWHILEûTRANCHEû highest level this year
RATINGSûAREû""n
MetroNet issued a deal in May comprising „ EUROPE Weil report says corporates with market cap lower than €5bn under pressure
Aû53MûlRST
LIENûTERMûLOANû"ûAû53Mû
lRST
LIENûDELAYEDûDRAWûTERMûLOANûAû53Mû
second-lien term loan and a US$175m
SECOND
LIENû$$4,
0LASTICSûMANUFACTURERûPLASKOLITE was
scheduled to close on Friday a US$125m
INCREMENTALûlRST
LIENûTERMûLOANûTHATûWILLû Index, published by law firm Weil, Gotshal &
FUNDûTHEûACQUISITIONûOFûPEERû0LAZIT
0OLYGAL Manges.
Corporate distress has risen to its highest level SECTOR TRENDS
this year, as stimulus measures by European The highest levels of distress are in the leisure
governments and central banks have begun to and hospitality sector, which was hit hardest by
unwind, creating tighter conditions for business the pandemic. Although the sector recovered
liquidity, according to the inaugural Weil Distress to some extent in recent months following the
easing of lockdown rules, the emergence of
Omicron could reverse that.
4HEûLOANûWHICHûMATURESûONû$ECEMBERûû
2025, was offered at 425bp over Libor with a
ûmOORûANDûANû/)$ûOFû
It comes with 101 soft call protection for
SIXûMONTHSû4HEûLOANûISûFUNGIBLEûWITHûANû
EXISTINGûlRST
According to Weil, corporate distress can be
defined as uncertainty about the fundamental
value of financial assets, volatility and increases
in perceived risk.
There are several common characteristics of
Distress has also increased across the
retail and consumer sector reflecting renewed
pressure on both liquidity and profitability,
the index report said. As the sector continues
to face challenges such as supply chain
LIENûLOANûWHICHûISûNOWûALSOû corporate distress: liquidity pressures, reduced
being remarked to 425bp over Libor.
Goldman Sachs was the lead-left arranger.
Morgan Stanley and ING were also arranging
the deal.
4HEûCOMPANYûISSUEDûAû53MûlRST
LIENû that contribution to distress from pressures on
TERMûLOANûINû$ECEMBERûûASûPARTûOFû
53MûLOANûPACKAGEûTOûlNANCEûPRIVATEû
EQUITYûSPONSORû0RITZKERû0RIVATEû#APITALSû
acquisition of the company.
#ORPORATEûANDûTRANCHEûRATINGSûAREû""
Mobile satellite provider INMARSAT sought
consent from its term loan B lenders to
avoid triggering a change of control clause
under the credit agreement for its existing
debt.
#OMMUNICATIONSûCOMPANYû6IASATûISûBACKINGû
its US$7.3bn acquisition of Inmarsat with
53BNûOFûNEWûDEBTûFACILITIESû4HEûTRANSACTIONû
will close in the second half of 2022.
4HEûACQUISITIONûWILLûTRIGGERûAûCHANGEûOFû
control clause unless Inmarsat receives
lender consent to waive the provision.
#ONSENTINGûLENDERSûWILLûBEûPAIDûAûBPûFEEû
by Inmarsat.
Bank of America was leading the
transaction, and consent was due by Friday.
4HEûCOMPANYûREPRICEDûAû53BNûlRST
quickly,” said Neil Devaney, partner and co-head
lien term loan B in January at 350bp over
,IBORûWITHûAûûmOOR
EUROPE/MIDDLE EAST/
AFRICA
CLINIGEN LINES UP LBO DEAL
4HEûBUYOUTûOFû5+ûPHARMACEUTICALûSERVICEû
lRMûCLINIGENûBYûPRIVATEûEQUITYûlRMû4RITONû
Investment Management is backed by
LEVERAGEDûlNANCINGûFROMûJP Morgan, Credit
Suisse, Barclays and HSBC.
4HEûACQUISITIONûVALUESû#LINIGENûATûABOUTû
£1.2bn.
disruptions, rising operating costs and high
profitability, rising insolvency risk, falling
valuations and reduced return on investment.
The study, based on data from more than
3,750 listed European corporates, concludes
retail, travel, leisure and hospitality, reflecting
liquidity – defined as a company’s ability to pay
off its current debt obligations – has not been
higher since 2008–09.
This issue has become particularly problematic
for corporates with a market cap lower than €5bn,
which are showing above average levels of distress
for the first time in over a year.
This follows a period of historically low corporate
distress, underpinned by government intervention
and benign capital market conditions, with not
a single issuer of European investment grade or
junk-rated corporate bonds going bankrupt in 2021,
according to S&P Global Ratings.
But markets have begun to respond in recent
weeks, partly driven by higher inflation and
concerns over the Omicron variant. The ICE BoA
Euro High Yield Index spread ended November
at a high for the year of 371 having reached a low
of 285 on September 17 2021.
“History shows that when credit markets
tighten, the outlook for a company can change
businesses reached their highest point
of Weil’s London restructuring practice.
“Continuing supply-chain disruption and
demand surges have meant that inflation has
been higher and more persistent than many
expected. When coupled with the potential
impact of Omicron on corporate liquidity and
profitability, the continued availability of cheap
credit seems increasingly uncertain as we move
into next year.”
4HEûlNANCINGûWILLûINCLUDEûSENIORûDEBTû
facilities and second-lien debt facilities. It will
ALSOûINVOLVEûEQUITYûINVESTEDûBYûTHEû4RITONû&UNDS
4RITONûHASûOFFEREDûûPENCEûPERûSHAREûINû
cash, with shareholders also eligible to
International Financing Review December 11 2021
return volumes have been putting pressure
on margins.
“There are sectors where there is a
significant rise in the distress index, such as
the unwind of government support as well
as the damage done by the slow progress of
the pandemic,” said Andrew Wilkinson, senior
European restructuring partner and co-head of
Weil’s London restructuring practice.
“Higher distress levels will be reflected in
higher costs of capital borrowing for companies
in these sectors. The only question is
whether default rates will also rise at some
future point.”
In contrast, distress in a number of other
sectors such as industrials has declined, as a
result of growing demand for a wider variety
goods, including semi-conductors, autos,
electronic equipment and chemicals.
Geographically UK corporates experienced
the highest levels of relative distress during
the pandemic compared with other European
markets. However, in Germany distress from
liquidity is now at its highest level since
2012, while in France levels of distress across
since February.
Corporate distress across Spain and Italy,
however, fell to decade lows in recent months,
declining sharply on last year’s levels as
initiatives to guarantee government-backed
loans administered by the Italian Export Credit
Agency SACE and Spain’s Official Credit Institute
underpinned stability throughout the period.
Sandrine Bradley
RECEIVEûAûPREVIOUSLYûDECLAREDûlNALûDIVIDENDû
OFûûPENCEûPERû#LINIGENûSHARE
4RITONûISûAû%UROPEANûPRIVATEûEQUITYû
INVESTMENTûlRMûWITHûEXPERIENCEûINû
investing in healthcare companies.
61
 INOVIE REVISES PRICING
French medical laboratories company
INOVIEûREVISEDûPRICINGûFORûAûõMûFUNGIBLEû
term loan B add-on to repay revolving
credit facility drawings, fund acquisitions
and repay quasi equity.
ONûWILLûRESETûTHEûMARGINûRATCHETû
4HEûCOVENANT
4HEûMARGINûISûLINKEDûTOûTHEûSENIORûNETû
leverage ratio, paying 400bp for a ratio of
more than 5.1 times (up from 375bp), 375bp
for more than 4.6 times (up from 350bp) and
350bp for 4.6 times or lower (up from
325bp).
4HEûADD
BNP Paribas was the lead-left and physical
4HEûlNANCINGûHASûAûPORTABILITYûPROVISIONû
that allows the loans to be available for
TWOûYEARSûAFTERûTHEûlRSTûUTILISATIONûOFûTHEû
add-on, subject to senior secured net
LEVERAGEûOFûSIXûTIMESûORûLOWERûANDûAûû
minimum equity requirement.
LITEûLOANûWHICHû holiday for six months and 101 soft call bookrunner along with Credit Agricole CIB.
will mature on March 3 2028, priced at protection for six months. Ratings are B/B2/B.
400bp on the whole tranche, up from 4HEREûAREûNOûTICKINGûFEESûUNTILû
BPû)TûCOMESûWITHûAûûmOORûANDûAû ACQUISITIONûCLOSESûINû$ECEMBERû4HEûWAIVERû CIRCET UPS ADD-ON
û/)$ fee is 25bp.
French telecoms infrastructure provider
EUROPEAN LEVERAGED LOANS EMEA SPONSORED LOAN BOOKRUNNERS CIRCETûHASûUPSIZEDûAûõMûTERMûLOANû"û
BOOKRUNNERS: 1/1/2021 TO DATE BY VOLUME: 1/1/2021 TO DATE ADD
ONûFROMûõMûTHATûWILLûBEûUSEDûTOû
Managing No of Total Share Europe, Middle East, Africa back acquisitions with the additional
bank or group issues US$(m) (%) Managing No of Total Share õMûTOûREDUCEûREVOLVINGûCREDITûFACILITYû
1 BNP Paribas 95 18,031.80 9.9 bank or group issues US$(m) (%) drawing needs at closing.
2 JP Morgan 63 12,762.69 7.0 1 BNP Paribas 53 9,361.21 8.0 4HEûCOVENANT
LITEûLOANûISûFUNGIBLEûWITHû
3 Credit Agricole 68 11,753.25 6.4 2 JP Morgan 43 9,179.00 7.8 THEûBORROWERSûõBNû4,"ûANDûMATURESû
4 Deutsche Bank 73 11,354.39 6.2 3 Deutsche Bank 53 8,461.47 7.2 on October 2028.
5 HSBC 53 9,472.53 5.2 4 Goldman Sachs 49 7,575.20 6.5 It pays 375bp over Euribor, the same as
6 Societe Generale 33 9,206.83 5.1 5 Credit Agricole 44 7,238.07 6.2 THEûEXISTINGûLOANûWITHûAûûmOORûANDûAû
7 Natixis 32 9,178.45 5.0 6 Barclays 33 6,969.82 6.0 û/)$ûVERSUSûINITIALûGUIDANCEûOFûn
8 Barclays 46 8,756.31 4.8 7 HSBC 32 5,555.39 4.7 99.5.
9 Goldman Sachs 60 8,459.44 4.6 8 Credit Suisse 32 5,193.06 4.4 %XPECTEDûCORPORATEûRATINGSûAREû""n"
10 Bank of America 52 6,949.91 3.8 9 Bank of America 37 5,085.12 4.3 B+, while expected instrument ratings are
Total 211 182,229.08 10 Natixis 19 3,945.65 3.4 ""n"""n
Excluding project finance. Western Europe only included. Total 138 117,099.89 BNP Paribas, Deutsche Bank and Natixis are
Excluding project finance. the joint physical bookrunners, ING is the
Source: Refinitiv SDC code: P10 Source: Refinitiv SDC code: P13 joint bookrunner and Natixis is an agent.

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62 International Financing Review December 11 2021

 EQUITIES
China 64 India 65 Japan 65 Philippines 67 South Korea 67 Denmark 68 Germany 68
Netherlands 69 Saudi Arabia 69 UK 70 United States 71 Structured Equity 78

„ FRONT STORY CHINA

Chinese developers scrape for funds

Hopson goes for CB while duo launches placements 
Chinese property developers are trying Hopson plans to use the proceeds to Logan raised HK$1.17bn from a top-up
every available avenue to raise funds, with RElNANCEûOFFSHOREûDEBTûINCLUDINGûTHEû placement of 172m shares, or 3% of the
HOPSON DEVELOPMENT sealing a US$250m
convertible bond last week, alongside
follow-ons from other companies.
After a few days of sounding investors,
Hopson (B2/B/B+) on Wednesday launched a
363-day CB with a base size of US$200m and
a same-day upsize option of US$100m.
The coupon was marketed at a 7%–8%
range. The conversion premium was
INCOMEû long-only investors and 60% to hedge funds.
LAUNCHEDûATûAûlXEDûûABOVEûTHEû
reference share price of HK$17.16, which
was also the delta placement price.
Bookrunner HSBC could conduct a delta
placement of up to 30m shares to facilitate
hedging.
repurchase of its outstanding 2022 notes,
and as general working capital.
The deal was well covered with about 35
investors participating, and the top 10
investors taking about two-thirds of the
transaction. About 60% of the deal went to
outright investors and 40% to hedge funds.
Around half of the demand came from CB
INVESTORSûANDûHALFûFROMûlXED
investors. Demand mainly came from Asia
and there were also some orders from
Europe.
To reduce potential dilution from the CB
to the issuer, and to solve the possible
liquidity issue of the stock for the CB
ENLARGEDûSHAREûCAPITALûATûAûlXEDûPRICEûOFû
HK$6.80 per share, a discount of 9.9% to
Monday’s close of HK$7.55.
The company will use the proceeds for project
investments and general working capital.
The books were more than three times
covered with about 40 investors
participating. Around 40% of the deal went to
BNP Paribas, Citigroup and UBS were the
bookrunners.
Shimao also raised HK$1.18bn from a
top-up placement to fund debt repayment
and general corporate purposes.
It sold 145m shares, or 3.8% of the
The CB was eventually upsized to
US$250m and priced at the investor-friendly
ENDûATûANûûCOUPONû4HEûDEALûISûTHEûlRSTû#"û
from a Chinese property developer since
Jiayuan International Group sold a US$100m
3.5-year non-put 2.5 green issue in July at a
STRATEGYû
yield-to-put/maturity of 9.8% and conversion
premium of just 6%.
“Many developers are looking around and
evaluating different options to raise funds.
Now with Hopson’s CB being done, there
could be more issuers going down this
route,” said an equity-linked banker.
China’s Didi plans to hire Goldman
Ride-sharing company to list in HK 
China’s Didi Global plans to hire Goldman
Sachs for its planned Hong Kong listing and
US delisting, three sources with knowledge
of the matter told Reuters, as it moves to
WITHDRAWûFROMûTHEû.EWû9ORKûEXCHANGEû
AFTERûJUSTûlVEûMONTHS
Didi, which made its debut in New York
on June 30 after raising US$4.4bn via an IPO,
said last week that it plans to delist from the
US bourse and pursue a Hong Kong listing.
The company is under pressure from
holders, the deal is structured so that CB
holders will be paid largely in cash upon
conversion.
Shares in Hopson fell 13.7% to HK$16.64
on Thursday. Its CB traded at around 101 in
the secondary market.
STRAIGHT EQUITY
Meanwhile some developers have chosen to
rebuild their war chests through share
placements despite the dilution impact. Two
of them, LOGAN GROUP and SHIMAO GROUP
HOLDINGS, tapped the market on Monday.
Two sources said Didi was looking to
appoint Goldman to work on the Hong Kong
listing before embarking on the New York
delisting. A separate source said Didi was
also in talks with other investment banks
including some Chinese banks.
Given the short time since its New York
debut, Didi will have to apply for a dual-
primary listing in Hong Kong, instead of a
secondary one which requires at least two
lNANCIALûYEARSûOFûGOODûREGULATORYû
ENLARGEDûSHAREûCAPITALûATûAûlXEDûPRICEûOFû
HK$8.14 per share, an 8.5% discount to
Monday’s close of HK$8.90.
Books were multiple times covered with
about 50 investors participating, including
EXISTINGûSHAREHOLDERSûANDûMULTI
funds. The top 10 investors took more than
80% of the deal. The transaction also offered
some investors a chance to cover the short
positions that built around the stock.
HSBC, JP Morgan and Morgan Stanley were
joint bookrunners.
Fiona Lau
Didi did not respond to a Reuters request
for comment. Goldman declined to
comment. The sources were not authorised
to talk to the media and therefore declined
TOûBEûIDENTIlED
Goldman was one of the main
underwriters of Didi’s New York IPO, along
with Morgan Stanley and JP Morgan.
Reuters reported last week, citing a source
with knowledge of the matter, that Didi aims
to complete the Hong Kong listing as soon as
Beijing to quit the New York Stock
%XCHANGEûAFTERûRUNNINGûFOULûOFû#HINESEû
authorities by pushing ahead with its IPO
despite being asked to put it on hold while
a review of its data practices was
conducted.
COMPLIANCEûONûANOTHERûQUALIFYINGûEXCHANGE
The company, sometimes dubbed the Uber
of China, has also asked the Wall Street
investment bank to come up with proposals
on how a Hong Kong listing and New York
delisting would work, said two of the sources.
INûTHEûNEXTûTHREEûMONTHSûANDûDELISTûFROMû
New York by June 2022.
Didi’s shares closed at US$6.66 on
Thursday, more than 50% below their launch
price.
Julie Zhu

International Financing Review December 11 2021 63

 )TûPOSTEDûAûûlRST
HALFûLOSSûOFû2MBMû in Hong Kong that could raise up to US$1bn,
(US$14.7m), compared with a Rmb156m loss
ASIA-PACIFIC a year earlier.
Before the IPO, Tencent, Alibaba and
Bilibili each owned 4.99% of Qingci.
CHINA CICC and Citic Securities are the sponsors.
HUABAO BUILDS WAR CHEST CANBRIDGE COMPLETES HONG KONG IPO
HUABAO INTERNATIONAL has raised HK$2.18bn Biotech company CANBRIDGE PHARMACEUTICALS
(US$280m) from an upsized top-up share has raised HK$686m (US$88m) from a Hong
placement. Kong IPO.
The company sold 122.1m shares, 3.78% The company sold 56.3m primary shares
of the enlarged share capital, up from 87.3m representing 13.3% of the company post-
according to people with knowledge of the
matter.
The out-of-home advertising company
lLEDûWITHûTHEû#HINAû3ECURITIESû2EGULATORYû
Commission on November 29 for its Hong
Kong listing.
&OCUSû-EDIAûlRSTûSAIDûITSûWOULDûLISTûINû
Hong Kong on November 4 without giving
any details. It said the H-share IPO would
help with its internationalisation plans and
BROADENûITSûlNANCINGûCHANNELS
Focus Media was founded in 2003 and
listed on Nasdaq in 2005. It was delisted
shares at launch.
Pricing came at HK$17.88 per share from
the HK$17.86–$18.47 range. The price
represents a discount of 11.9% to
Wednesday’s close of HK$20.30.
The books were multiple times covered
with more than 50 investors participating.
The top 10 investors took around 70% of
the deal.
The company will use the proceeds for
OVERSEASûEXPANSIONûANDûGENERALûWORKINGû
capital.
(UABAOûMAINLYûENGAGESûINûmAVOURSûANDû
tobacco-related business.
Citigroup, CLSA and Nomura are the joint
bookrunners.
QINGCI GAMES PRICES IPO AT BOTTOM
Chinese mobile game developer QINGCI GAMES
has priced its Hong Kong IPO at the bottom
MONEYûATûAûlXEDûPRICEûOFû(+ûPERû
share.
Seven cornerstone investors made a total
investment of US$60m.
Jefferies and Morgan Stanley were the joint
sponsors.
GUSHENGTANG PRICES IPO AT TOP
GUSHENGTANG (CAYMAN), a chain of traditional
Chinese medicine clinics, has priced its
Hong Kong IPO at top of the price range to
raise HK$809m (US$104m).
The company marketed 27.9m primary
H-shares or 12% of its enlarged share capital
at HK$25.80–$29 per share.
Final pricing represents a 2022 forecast
P/E of 22.5.
The deal drew four cornerstone investors
with a combined US$42m.
Gushengtang operates 41 clinics in 11
from the US in 2013 and returned to China’s
A-share market in 2015. Its current market
capitalisation is around Rmb113bn
(US$17.8bn).
)TûPOSTEDûAûNETûPROlTûATTRIBUTABLEûTOûEQUITYû
holders of Rmb4.4bn for Q1–Q3, up 100.8%,
on revenues of Rmb11.1bn, up 41.6%.
RECBIO WINS IPO APPROVAL
Vaccine maker JIANGSU RECBIO TECHNOLOGY has
won listing approval from the Stock
%XCHANGEûOFû(ONGû+ONGûFORûANû)0/ûOFûABOUTû
US$200m–$300m, said people with
knowledge of the matter.
4HEûDEALûISûLIKELYûTOûHITûTHEûMARKETûNEXTûYEAR
CMB International, Citic Securities and Morgan
Stanley are the sponsors.
The company is developing 11 vaccines
including an HPV vaccine and a Covid-19
vaccine. It posted a loss of Rmb247m
of the price range to raise HK$952m cities in China as well as online channels. It 53M ûFORûTHEûlRSTûQUARTERûOFûû
(US$122m). posted a loss of Rmb350m (US$55m) for the compared with a Rmb44m loss a year
The company marketed 85m primary lRSTûHALFûOFûûCOMPAREDûTOûAûLOSSûOFû earlier.
shares, or 12.4% of the enlarged share Rmb179m a year earlier. Legend Capital owns 10.7% of the
capital, in an indicative range of HK$11.20– Bank of America and Haitong International are company and Singapore’s Temasek Holdings
$14 per share. the joint sponsors. owns 2.7%.
3IXûCORNERSTONEûINVESTORSûMADEûAûTOTALû
investment of US$70m. FOCUS MEDIA PICKS DUO YONGHE COMPLETES IPO
The shares will start trading on
December 16. Shenzhen-listed FOCUS MEDIA INFORMATION Hair transplant clinic operator YONGHE
4HEûCOMPANYûOPERATESûSIXûMOBILEûGAMESû TECHNOLOGY has picked Haitong International MEDICAL has raised HK$1.49bn (US$191m)
and has a pipeline of 10 others. and Morgan Stanley to lead a proposed listing from its Hong Kong IPO.
The company sold 94.4m primary shares,
ASIA-PACIFIC EQUITIES ASIA-PACIFIC EQUITIES (EX-JAPAN) or 18.2% of enlarged share capital, at
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE HK$15.80 each or a 2022 P/E of 30.5 times.
Managing No of Total Share Managing No of Total Share Ten cornerstone investors put in US$97m.
bank or group issues US$(m) (%) bank or group issues US$(m) (%) The shares will start trading on December 13.
1 Citic 162 32,312.70 7.4 1 Citic 162 32,312.70 8.1 CICC and Morgan Stanley are joint sponsors.
2 Goldman Sachs 103 30,558.04 7.0 2 Goldman Sachs 96 28,353.21 7.1
3 Morgan Stanley 113 30,515.23 7.0 3 Morgan Stanley 88 26,249.70 6.6 SF INTRA-CITY PRICES AT BOTTOM
4 CICC 109 23,005.07 5.3 4 CICC 109 23,005.07 5.8
5 Citigroup 84 20,484.28 4.7 5 Citigroup 82 19,834.09 5.0 HANGZHOU SF INTRA-CITY INDUSTRIALûTHEûEXPRESSû

6 JP Morgan 80 19,830.14 4.6 6 JP Morgan 75 17,213.12 4.3 delivery unit of Shenzhen-listed SF Holding,
7 UBS 82 15,503.44 3.6 7 UBS 79 15,329.31 3.8 has raised HK$2.15bn (US$275m) from a
8 Bank of America 64 14,683.64 3.4 8 Bank of America 55 13,216.71 3.3 Hong Kong IPO that priced at the bottom of
9 Huatai Securities 71 12,796.64 2.9 9 Huatai Securities 71 12,796.64 3.2 the range.
10 China Secs 76 12,424.18 2.9 10 China Secs 76 12,424.18 3.1 The company sold 131m shares, or 14% of
Total 3,349 434,037.41 Total 3,148 399,967.12 the enlarged share capital, at the bottom of
Including all domestic and international deals and rights issues Including all domestic and international deals and rights issues a HK$16.42–$17.96 range for a 2022 forecast
Source: Refinitiv SDC code: C4a1 Source: Refinitiv SDC code: C4a2 PRICE TO SALESûOFûX

64 International Financing Review December 11 2021


Taobao China and Hello are cornerstones
with respective investments of HK$851m
and HK$38.8m.
The shares will start trading on December
14.
Bank of America and CICC are joint
sponsors, and joint global coordinators with
Credit Suisse and Huatai International.
CHERVON PRE-MARKETS HK IPO
CHERVON HOLDINGS, a maker of power tools
and outdoor power equipment, has started
pre-marketing a Hong Kong IPO.
IFR reported in August that the company
was targeting a valuation of at least US$2bn
ANDûTHEûmOATûCOULDûRAISEûABOUTû53MûATû
its valuation target.
CICC and Citigroup are the sponsors.
4HEûCOMPANYûPOSTEDûAûNETûPROlTûOFû
tranche was covered 8.4 times, the high-net-
worth investor segment 42 times and retail
8.1 times.
New shares totalling Rs3.75bn are on
offer, as well as 22.6m secondary shares
from investor Wagner and founder Bhanu
Chopra, among others.
The company will use the IPO proceeds to
REPAYûLOANSûANDûlNANCEûACQUISITIONS
For the year to March 31, RateGain
reported revenues of Rs2.51bn, down 37%
from Rs3.99bn a year earlier. Its net loss
widened 42% to Rs286m from Rs201m.
IIFL Securities, Kotak and Nomura are lead
managers.
FABINDIA CRAFTS IPO FILING
Ethnic wear and furnishings retailer FABINDIA
PLANSûTOûlLEûFORûAû2SBNn2SBNû53Mn
EQUITIES ASIA-PACIFIC
The primary and secondary share
composition of the IPO has not yet been
decided.
Chairman and co-founder Sachin Bansal
also co-founded India’s pioneering
e-commerce company Flipkart in 2007
before selling it to Walmart in 2018.
JAPAN
FINATEXT LAUNCHES TSE IPO
Financial services provider FINATEXT HOLDINGS
has started bookbuilding for a TSE IPO of up
to ¥20bn (US$176m).
The offer comprises 2.8m primary shares
and about 12.7m secondary shares, in an
indicative range of ¥1,100–¥1,290 per share.
Singaporean state investor GIC has
53MûINûTHEûlRSTûQUARTERûOFûûUPû
more than 13 times from the US$4.18m
PROlTûAûYEARûEARLIER
Chinese biotech SIRNAOMICS has also
started pre-marketing a Hong Kong IPO of
about US$100m–$150m.
Sirnaomics develops therapies targeting
illnesses including skin cancer and liver
cancer. It has around 14 product candidates
in the pipeline.
4HEûCOMPANYûLOSTû53MûFORûTHEûlRSTû
nine months of 2021, compared with a
US$33m loss a year earlier.
ASYMCHEM PRICES ABOVE MIDPOINT
Shenzhen-listed ASYMCHEM LABORATORIES
(TIANJIN) has raised HK$7.14bn (US$916m)
from its Hong Kong listing after pricing it at
above the midpoint of the indicative price
range.
The company sold 18.4m primary
H-shares, or 7% of its enlarged share capital,
at HK$388 per share from the HK$350–$410
range.
The price represents a 34% discount to
Asymchem’s A-share close of Rmb478.60 on
December 3.
Asymchem provides contract
development and manufacturing services to
pharmaceutical and biotech companies.
Citic Securities and Goldman Sachs are
sponsors.
INDIA
RATEGAIN LIKELY TO PRICE IPO AT TOP
Hospitality software company RATEGAIN
TRAVEL TECHNOLOGIES is likely to price its IPO at
the top of the Rs405–Rs425 range to raise
Rs13.4bn (US$178m).
The IPO was covered 17.41 times when
books closed on Thursday. The institutional
$663m) IPO as early as this month and aims
to launch it by March, people with
knowledge of the transaction said.
Both primary and secondary shares are
LIKELYûTOûBEûSOLDû0RIVATEûEQUITYûlRMSû
PremjiInvest and Lighthouse Funds are
among the investors in the company.
FabIndia is one of India’s largest
distributors of products made using
traditional techniques and fabrics. It links
over 55,000 craft-based rural producers to
urban markets and has more than 300 stores
in India and abroad.
Credit Suisse, ICICI Securities, JP Morgan,
Nomura and SBI Capital are the banks on the
transaction.
DATA PATTERNS SETS IPO RANGE
Defence and aerospace electronics
manufacturer DATA PATTERNS has set a Rs555–
Rs585 range for an IPO of up to Rs5.88bn
(US$78m).
Primary shares totalling Rs2.4bn and up
to 5.95m secondary shares are on offer.
Controlling shareholders Srinivasagopalan
Rangarajan and Rekha Murthy Rangarajan
are among the vendors.
Anchor books open on December 13 and
the rest of the offer on December 14–16.
JM Financial and IIFL Securities are the
bookrunners.
Data Patterns reported revenues of
Rs2.2bn for the year to March, up 38% from
2SBNûAûYEARûEARLIERû.ETûPROlTûROSEûû
to Rs556m from Rs210m.
NAVI HIRES BANKS FOR IPO
$IGITALûlNANCIALûSERVICESûCOMPANYûNAVI
TECHNOLOGIES is planning a domestic IPO of
AROUNDû53MûNEXTûYEARûANDûISûWORKINGû
with Axis Capital, Bank of America, Credit Suisse
and ICICI Securities, people with knowledge
of the transaction said.
International Financing Review December 11 2021
indicated an interest in up to ¥2.3bn of the
offering.
There is a greenshoe of up to 2.3m
secondary shares.
The selling shareholders are UTEC 3,
JAFCO SV5 Investment, au Financial
Holdings, JAFCO SV5-STAR Investment,
company co-founder Tsutomu Watanabe,
company creative directors Yonosuke
Yasuda and Atsushi Ishibashi, SMBC Trust
Bank, Satoshi Imai, Mitsuru Takahashi,
Masashi Tsujinaka, Kota Watanabe, Yuki
Saito and GCI Capital.
There is a lock-up of 180 days for all
EXISTINGûSHAREHOLDERS
The deal will be sold equally to retail and
institutional investors.
Books are open until December 9. The
deal will be priced on December 13 and the
shares are due to be listed on December 22.
Daiwa and Mitsubishi UFJ Morgan Stanley are
the joint lead managers.
NET PROTECTIONS PRICED AT THE TOP
E-commerce payments company NET
PROTECTIONS HOLDINGS has priced its IPO at the
top of the indicative range of ¥1,300–¥1,450
per share for proceeds of ¥64.6bn
(US$571.5m).
The book of 4m primary and 40.56m
secondary shares was heavily oversubscribed
with more than 130 lines. The top 20
investors took over 75% of the book.
Allocations were skewed towards long-
only and tech specialist funds, and investors
that attended management meetings.
Due to the strong demand, 5% of the deal
was shifted from the domestic to the
international tranche. About 75% of the deal
was sold to international and 25% to
domestic investors.
4HEûCOMPANYûWASûEARLIERûEXPECTEDûTOû
launch an up to ¥62.4bn IPO in a price range
of ¥1,100–¥1,400.
65
 There is a greenshoe of 2.13m secondary
shares.
The selling shareholders are company
CEO Shin Shibata, CFO Shiro Suzuki and
Advantage Partners.
Proceeds will be used for software
DEVELOPMENTûCOSTSûANDûMARKETINGûEXPENSES
There is a 180-day lock-up on the issuer
ANDûSOMEûEXISTINGûSHAREHOLDERSûANDûAû
TOPPAN OFFLOADS RECRUIT BLOCK
day lock-up on the sellers.
The shares are due to be listed on
December 15.
The company provides online transaction
services including business-to-business and
credit card payments.
Credit Suisse, Daiwa and SMBC Nikko are the
joint global coordinators.
ZEAL CO LAUNCHES IPO
ZEAL CO, an e-commerce chatbot services
provider, started bookbuilding on December
8 for a TSE IPO of up to ¥10.5bn (US$92.4m)
in a ¥1,220–¥1,420 price range.
The deal comprises 2.5m primary and
about 4.9m secondary shares. There is a
greenshoe of 15% of the deal.
The selling shareholders are Jafco,
company CEO Masahiro Shimizu, FreakOut
Holdings, CyberAgent, FreakOut Shinsei
Fund and Will Group.
There is a lock-up of 180 days on the
issuer, management and selling
shareholders.
The deal is structured as a rinpo, a
domestic offering with a dedicated overseas
placement for institutional buyers but no
English language prospectus.
Books will be open until December 13. The
deal will be priced on December 15 and the
shares are due to be listed on December 23.
Proceeds will be used for labour costs,
Capital 2019 Private Equity Investment and
directors Makoto Hirai and Yusuke Hattori.
About 50% of the deal was sold to retail
and 50% to institutional investors.
There is a greenshoe of 530,400 shares
and a 180-day lock-up.
Daiwa was the bookrunner.
greenshoe.
Printing business company Toppan has
raised ¥105.8bn (US$933m) from a block in
RECRUIT HOLDINGS.
The 15m shares, representing 0.88% of
outstanding, were priced at ¥7,053 each, a
3.5% discount to Wednesday’s close of
¥7,309.
The books were multiple times covered,
ANDûTHEûTOPûlVEûINVESTORSûTOOKûûOFûTHEû
deal.
There is 90-day lock-up for Toppan.
Bank of America and Goldman Sachs were
joint bookrunners.
KOHOKU KOGYO PRICES AT TOP
Lead terminals manufacturer KOHOKU KOGYO
has priced its TSE IPO at the top of the
¥3,840–¥4,000 range to raise ¥10.4bn
(US$91.6m).
The book was more than 15 times covered
with no price sensitivity across almost 80
lines. The book also received strong demand
from global long-only and hedge fund
investors, with almost 60% allocated to the
long-only accounts.
The domestic retail tranche was also well
oversubscribed.
The base deal comprised 1m secondary
shares from CEO Futoshi Ishii and 1.6m
treasury shares.
There is a 15% greenshoe.
The deal comprises 2.6m primary and
about 1.97m secondary shares.
Tokyu Land Corporation, Renewable
Japan Employee Stock Ownership
!SSOCIATIONûANDû/RIXû"ANKûHAVEûINDICATEDû
interest for up to 774,000 shares, ¥0.2bn and
¥0.1bn of the offering, respectively.
There is a 685,600 primary share
The selling shareholders include
Shanghai Alliance Financial Services,
company director Yang Pang and president
and representative director Katsuhito
Manabe.
Books will be open until December 13.
The deal will price on December 14 and the
shares are due to be listed on December 15.
The deal will be split equally between
retail and institutional investors.
Proceeds will be used to develop solar
power plants and acquire new plants.
Established in 2012, the company
develops and manages renewable energy
power plants.
SMBC Nikko is the lead manager.
ENECHANGE COMPLETES FOLLOW-ON
ENECHANGE, a provider of energy-related data,
has priced a ¥7.27bn (US$64m) follow-on.
The offering comprised 750,000 primary
and 552,000 secondary shares at ¥5,584
each, or an 8.01% discount to the previous
close of ¥6,070, from a discount range of
5%–8%.
There is a 15% greenshoe of 195,000
shares.
There is a 180-day lock-up on the issuer
and selling shareholders and a 90-day
lock-up on Daiwa Securities Group.
The deal is structured as a rinpo, a
domestic offering with a dedicated overseas
RENTûFORûNEWûOFlCEûSPACEûSERVERûCOSTSû There is a 90-day lock-up for Ishii, his placement for institutional buyers but no
ADVERTISINGûEXPENSESû2$ûOVERSEASû
EXPANSIONûCOSTSûANDûDEBTûREPAYMENT
Daiwa and Credit Suisse are the joint
lead managers. Mitsubishi UFJ Morgan
Stanley, SBI, Matsui, Rakuten and Monex are
the co-managers.
SUN* COMPLETES FOLLOW-ON
A group of shareholders in SUN* has raised
¥8.6bn (US$76m) through a follow-on
offering priced at ¥2,380 per share.
The book was multiple times covered.
Allocations were skewed towards long-only
INVESTORSûANDûEXISTINGûSHAREHOLDERSû4HEûTOPû
10 investors took over 90% of the book.
Sun* sold 3.6m secondary shares at a
3.53% discount to the closing price of ¥2,467
on December 6, from a discount range of
3%–5%.
The selling shareholders were Kazunari
Fujimoto, Kenichi Takakura, Norinchukin
66
asset management company and option
holders, and a 180-day lock-up for the issuer
and employees.
About 82.1% of the deal was sold to
domestic investors and 17.9% to
international institutions.
The shares will be listed on December 21.
Proceeds will be used for capital
investment and investment in subsidiaries.
The company manufactures lead
terminals for aluminium electrolytic
capacitors used in different kinds of
electronics products.
Nomura was the bookrunner.
RENEWABLE JAPAN LAUNCHES
UP TO ¥8.22bn IPO
Renewable energy company RENEWABLE JAPAN
has opened the books for an IPO of up to
¥8.22bn (US$72.7m) in a ¥1,720–¥1,800
price range.
International Financing Review December 11 2021
English-language prospectus.
The selling shareholders are the company
CEO Yohei Kiguchi and COO Ippei Arita and
corporate investor EPCO.
Proceeds will be used for the company’s
platform and data businesses, as well as
RECRUITMENTûANDûPERSONNELûEXPENSES
SBI and Credit Suisse are the joint
bookrunners.
LINK AND MOTIVATION SEALS
PLACEMENT
TSE-listed engineering services provider LINK
AND MOTIVATION has completed a ¥6.33bn
(US$55.5m) follow-on offering priced at ¥633
per share.
The company sold 10m shares (3.4m
secondary and 6.6m treasury shares) at a
3.06% discount to the closing price of ¥653
on December 7, from a discount range of
3%–5%.
 EQUITIES ASIA-PACIFIC

4HEûSELLINGûSHAREHOLDERSûAREû0HOENIXûANDû The acquisition values LifeHealthcare at The current South Korean IPO record is
company chairman Ozasa Yoshihisa. 11.5 times EV/CY22F Ebitda, the midpoint of held by Samsung Life Insurance, which
There is a 15% 1.5m share greenshoe. the forecast range. raised W4.88trn in 2010.
The proceeds will be used for LifeHealthcare mainly provides Australian, The LG Energy Solution deal comprises
DEVELOPMENTûANDûMARKETINGûEXPENSESû
PERSONNELûEXPENSESûANDûTHEûREPAYMENTûOFû
long-term debt.
Nomura was sole bookrunner.
MALAYSIA
TOP GLOVE PLANS Q1
HONG KONG LISTING
TOP GLOVE has secured shareholder approval
TOûLISTûINû(ONGû+ONGûANDûEXPECTSûTOûCOMPLETEû
THEûmOATûINûTHEûlRSTûQUARTER
It plans to sell 793.5m shares, or about 9%
of the enlarged share capital, to raise
HK$3.68bn (US$473m), less than half its
target in October and less than a quarter of
its original plan at the beginning of the year.
The company is listed on Bursa Malaysia and
HASûAûSECONDARYû3INGAPOREû%XCHANGEûLISTINGû
The world’s largest rubber glove maker
New Zealand and South-East Asian
healthcare professionals with medical
devices, consumables, capital equipment and
in-house manufactured allograft material.
Macquarie Capital was the lead manager.
PHILIPPINES
BANK OF COMMERCE PLANS IPO
BANK OF COMMERCE is planning a Ps3.51bn
53M û)0/ûNEXTûYEARûATûAûMAXIMUMûPRICEû
of Ps12.50.
Up to 280.6m shares are on offer. There is
a greenshoe of 42m shares.
The bank is part of San Miguel Group.
Its total assets rose 18% to Ps170.92bn in
ûFROMû0SBNûINûû.ETûPROlTû
rose 20% to Ps784.4m from Ps652.7m during
the same period.
The IPO funds will be used to fund
42.5m shares (34m primary/8.5m
secondary), in an indicative price range of
W257,000–W300,000 each.
The company plans to sell 55%–75% of the
shares to institutional investors, 25%–30% to
retail and 20% to an employee stock
ownership plan.
The range implies a market capitalisation
of US$51bn–$59bn.
The selling shareholder is LG Chem. There
is no greenshoe.
Pre-marketing will end on December 17.
Bookbuilding will run from January 3 to 12 and
pricing is slated for January 14. Subscription for
the retail portion and employee stock
ownership plan will run on January 18–19 and
the shares will list on January 27.
The EV battery unit, which was spun off
from chemical giant LG Chem in December
last year, is a major supplier to customers
including Tesla and General Motors.
Proceedings will be used for capital
lLEDûAûSECONDûLISTINGûAPPLICATIONûINû(ONGû
+ONGûONû/CTOBERûûAFTERûITSûlRSTûlLINGû
LAPSEDûINû!UGUSTûATûTHEûENDûOFûAûSIX
MONTHû requirements.
validity period.
The planned share sale has been
repeatedly delayed by a US ban on
Malaysian-made gloves over alleged unfair
labour practices.
CICC is the sole sponsor.
NEW ZEALAND
EBOS GROUP RAISES FUNDS FOR M&A
Medical wholesaler EBOS GROUP has raised
NZ$674m (US$457.7m) from a fully
underwritten placement to fund the
acquisition of medical devices distributor
LifeHealthcare.
The deal received strong support from both
EXISTINGûANDûNEWûSHAREHOLDERSûACROSSû.EWû
Zealand and Australia as well as offshore money.
The company sold 19.5m shares or 11.9%
lending activities, acquire investment
SECURITIESûANDûlNANCEûCAPITALûEXPENDITUREû
working capital.
BDO Capital, China Bank Capital, Philippine
Commercial Capital and PNB Capital are the
joint issue managers.
SINGAPORE
CICT UPSIZES PLACEMENT
CAPITALAND INTEGRATED COMMERCIAL TRUST has
raised S$250m (US$183m) through an
upsized placement priced at S$1.96.
The shares were priced from a S$1.93–
$1.981 range.
CICT increased the size of the deal to
127.5m shares from 103.6m.
The issue price represents a 4.4% discount
to the last close of S$2.05.
Books were oversubscribed with demand
from long-only investors, private wealth
investors and multi-strategy investors.
EXPENDITUREûPRODUCTIONûFACILITIESûTHEû
repayment of outstanding debt and general
KB Securities and Morgan Stanley are the
joint lead bookrunners. Bank of America,
Citigroup, Daishin, Goldman Sachs and Shinhan
Bank are the joint bookrunners.
HYUNDAI ENGINEERING GETS
GREEN LIGHT
HYUNDAI ENGINEERING has received preliminary
)0/ûAPPROVALûFROMûTHEû+OREAû%XCHANGEû4HEû
mOATûCOULDûRAISEûABOUTû53MûANDûISûSETûTOû
BEûLAUNCHEDûEARLYûNEXTûYEARûWITHûTHEûSHARESû
to be listed in February, said people with
knowledge of the matter.
Established in 2001, the company is the
plant construction and infrastructure
AFlLIATEûOFû(YUNDAIû-OTORû'ROUP
Hyundai Engineering and Construction,
the construction arm of the group, is the
largest shareholder of Hyundai Engineering
with a 38.62% stake. The group’s logistics
OFûEXISTINGûSHARESûATû.:ûORûAûû
discount to the last close of NZ$36.50 on
December 8.
Ebos Group is also raising NZ$105m on
the same terms from a non-underwritten
RETAILûOFFERûTOûELIGIBLEûEXISTINGûSHAREHOLDERSû
in New Zealand or Australia.
The retail offer will run from December
15 to January 17.
Ebos Group is buying 100% of
LifeHealthcare’s Australia and New Zealand
subsidiaries and 51% of its Asian unit,
Transmedic, for a total consideration of
about A$1.2bn (US$859.6m), representing
an enterprise value of about A$1.3bn.
Around 40 accounts participated and the top
10 got 70% of the allocation.
JP Morgan and United Overseas Bank are the
banks on the transaction.
SOUTH KOREA
LG ENERGY SOLUTION PRE-MARKETS
LARGEST EVER IPO
Electric vehicle battery maker LG ENERGY
SOLUTION has started pre-marketing a KRX
IPO of up to W12.75trn (US$10.8bn), South
Korea’s largest ever.
International Financing Review December 11 2021
arm, Hyundai Glovis, holds 11.67%.
Other shareholders include carmaker Kia
Motors and auto parts maker Hyundai
Mobis.
Goldman Sachs, KB Securities and Mirae Asset
Daewoo AREûLEADINGûTHEûmOAT
NETMARBLE EXITS KAKAO BANK
FOR W481.6bn
Mobile games developer Netmarble has
raised W481.6bn (US$424m) through the
sale of all its shares in KAKAO BANK.
The deal, comprising 7.62m shares or 1.6%
of the outstanding, was priced at W63,200
67
per share, a 6.4% discount to the closing Shares in the company closed up 1.7% at Books were covered in less than 15
price of W67,500 on December 8. DKr283.20 on Tuesday. By Friday at 10am in minutes, and messaging before books
Morgan Stanley was sole bookrunner. London, they were lower at DKr273 each. were due to close at 9:15am in London
Kakao Bank was listed in August after it warned that orders below €49.50 risked
raised W2.55trn from a KRX IPO. missing out. Pricing at that level is a 2.2%
FRANCE discount to Tuesday’s close of €50.62 a
share.
ALTAREA REPORTS 97.4% Bank of America, Morgan Stanley, Societe
RIGHTS ISSUE TAKE-UP Generale are joint global coordinators and
EUROPE/MIDDLE each underwrote 20% of the deal.
EAST/AFRICA Real estate business ALTAREA has secured BNP Paribas, Citigroup, Commerzbank,
take-up of 97.4% on its €350m rights issue. Deutsche Bank, Goldman Sachs, ING, Intesa
A total of 2.37m shares were subscribed Sanpaolo, JP Morgan, LBBW, UBS and UniCredit/
DENMARK FROMûAPPROXIMATELYûMûONûOFFERû Kepler Cheuvreux were joint bookrunners and
Additional demand of 649,995 shares shared the remaining 40% equally.
BAVARIAN NORDIC RAISES FUNDING covered the balance of 63,954 shares. Fees to the syndicate totalled €119.5m,
FOR PHASE III TRIALS Shares were offered on a 3-for-22 basis at including discretionary elements.
€143.75 each, a 19.8% discount to the The completion of the capital increase is
Vaccine developer BAVARIAN NORDIC raised €179.17 TERP. the last stage in Vonovia’s acquisition of
DKr1.7bn (US$258m) in an accelerated Success was largely assured, with 83.6% Deutsche Wohnen, of which it owns 87.6%
bookbuild on Monday evening, having committed by shareholders at launch. following a takeover offer.
mAGGEDûTHEûFUNDRAISINGûTHATûMORNINGû Chairman and CEO Alain Taravella Proceeds will pay down €15.6bn
The company said it will initiate Phase III committed to subscribe for 48.4% with co- OUTSTANDINGûONûTHEûBRIDGEûlNANCINGûUSEDûTOû
trials of its RSV (respiratory syncytial virus) founder Jacques Nicolet and general back the acquisition. The rights issue
VACCINEûCANDIDATEûWITHûANûEXPECTEDûCOSTûOFû manager Jacques Ehrmann; Credit Agricole syndicate was the same as for the loan.
US$250m, subject to a capital increase. Assurances committed to 24.7%; APG for Vonovia shares closed down 0.75% at
The 10% capital increase was priced at 7.1%; supervisory board chair Christian de €50.24 on Wednesday. By Friday at about
DKr268 per share, a 3.8% discount to Gournay and Opus Investment for 1.48%; 11am in London they were slightly lower at
Monday’s close of DKr278.60. The shares and Sogecap and BPCE Vie for 1% each. €50.04 each.
had fallen 7.6% on Monday. The rest was underwritten by a syndicate of
Citigroup and Nordea were joint bookrunners Natixis, Societe Generale, BNP Paribas, Credit
on the trade, which saw 6.37m shares sold. Agricole/Kepler Cheuvreux and Morgan Stanley. The ISRAEL
Reverse enquiry built during Monday, and French banks are also providing an €800m loan.
no wall-crossing was needed, a banker Altarea will use the fresh cash to fund its ARISON SELLS 3.4% OF HAPOALIM
involved said. acquisition of real estate asset manager IN UPSIZED ABB
The deal was covered in about 45 minutes Primonial, announced in June.
and the book contained around 80 lines, led It is buying Primonial for an enterprise The holding company of Israel’s richest
by an anchor order. value of €1.9bn in two stages – 60% in Q1 woman Shari Arison sold 3.4% of BANK
4HEREûWASûAûGOODûMIXûOFûREGIONALûANDû and the rest in 2024. HAPOALIM on Tuesday evening in an upsized
international demand, and long-only names Altarea shares closed down 1.5% at accelerated bookbuild run by Bank of America
took more than 70%. €157.60 on Wednesday. as sole bookrunner.
Bavarian Nordic on Sunday also Barak Capital Underwriting was Israeli
announced positive results for Phase II trials selling agent and Rothschild advised the
of its Covid-19 vaccine candidate. The GERMANY seller.
company raised DKr1.14bn in March in an Unusually, considering the mandate was
ABB run by Danske Bank, Jefferies and VONOVIA COMPLETES JUMBO won through an auction, the NIS1.4bn
Nordea to fund its development. RIGHTS ISSUE (US$457m) sell-down was upsized by about
ûDURINGûTHEûBOOKBUILDû!TûTHEûlNALûCOUNTû
EMEA EQUITIES Real estate company VONOVIA has wrapped up 46m shares were sold in the deal, which
BOOKRUNNERS: 1/1/2021 TO DATE the largest rights issue of the year with a launched with 35.6m shares on offer, or 2.7%
Managing No of Total Share take-up of 98.59%, leaving a rump placing of of the bank.
bank or group issues US$(m) (%) just €140m following the €8bn fundraising. Final pricing was NIS30.90, a 3% discount
1 Goldman Sachs 121 22,241.28 8.7 Of the 201.3m shares offered 198.5m were to Tuesday’s NIS31.87 close and off the
2 Morgan Stanley 96 20,096.02 7.8 subscribed on a 7-for-20 basis at €40 each, a bottom of guidance of NIS30.75 to the
3 JP Morgan 132 19,410.70 7.6 22.5% discount to TERP of €51.64. market close.
4 Citigroup 95 15,811.97 6.2 About 15% of the rights issue was There was strong support from
5 Bank of America 76 15,181.84 5.9 guaranteed in advance by shareholders APG international and local investors, with
6 BNP Paribas 73 11,502.90 4.5 Asset Management and Norwegian wealth particularly robust local demand. About 80%
7 Jefferies 95 9,784.46 3.8 fund Norges Bank Investment Management, of the deal went to long-only accounts.
8 Barclays 58 8,835.72 3.4 which said they would maintain their Shares in Bank Hapoalim fell on
9 UBS 43 7,503.74 2.9 respective stakes of 4% and 11.1%. 7EDNESDAYûMORNINGûBUTûCLOSEDûmATûTOû!""û
10 Berenberg 78 6,462.47 2.5 The rump of 2.8m shares was quickly sold pricing.
Total 1,265 256,814.01 on Wednesday morning and represents less The seller retains about 7.95% of the bank,
Including all domestic and international deals and rights issues than 0.4% of the company’s total share ACCORDINGûTOû2ElNITIVûDATAûANDûISûLOCKEDûUPû
Source: Refinitiv SDC code: C4cr capital post-money. for 90 days.

68 International Financing Review December 11 2021


Arison last sold shares in Bank Hapoalim
in April, shedding 4% for NIS1.5bn at
NIS25.50 per share via Citigroup and
Goldman Sachs.
PERION RAISES US$156.5m
FROM OVERNIGHT STOCK SALE
Capping a big year for issuance from the
advertising technology sector, Nasdaq and
4ELû!VIVû3TOCKû%XCHANGE
LISTEDûPERION BenevolentAI’s development, scale up its
NETWORK raised US$156.5m last week from
an upsized follow-on stock sale.
Oppenheimer & Co, Stifel and Raymond James
led the sale of 7.3m Perion shares or 21% of
the outstanding at US$21.50, a 12.1%
discount to Wednesday’s close.
Despite the wide discount, good demand
enabled the syndicate to upsize the offering
by more than 50% from US$100m at launch.
“The book was multiple times covered,
but more importantly we had new long-only
mOAT
investors drive the strength of the book,” a
banker close to the deal said.
In Thursday’s aftermarket, Perion shares
fell to US$22.46, though they are still up 80%
this year.
In January, Perion priced a US$57.4m
follow-on offering at the US$11.50 mark via
Oppenheimer and Stifel.
NETHERLANDS
BENEVOLENTAI TO LIST VIA ZAOUI SPAC
Zaoui brothers-backed SPAC ODYSSEY
ACQUISITION is merging with London-
The deal is contingent on the SPAC
holding €250m after redemptions and fees
to IPO banks. The deal could also fall foul of
the UK’s National Security and Investment
Act 2021, which comes into force on January
4 and allows the government to intervene in
ACQUISITIONSûINûARTIlCIALûINTELLIGENCEûANDû
OTHERûSECTORSû4HEûCOMBINATIONûISûEXPECTEDû
TOûCOMPLETEûINûTHEûlRSTûQUARTER
Proceeds will be used to accelerate
As a result stabilisation may see the
clinical pipeline and invest in technology.
Goldman Sachs and JP Morgan, joint books
on the SPAC IPO, are placement agents on
THEû0)0%ûANDûAREûlNANCIALûADVISERSûONûTHEû
business combination.
Odyssey shares closed at €9.98 on Monday.
NORWAY
NORVA24 MIRED ON DEBUT
Shares in Nordic sewerage business NORVA24
were bogged down on their debut on
Thursday, opening more than 8% below
pricing and tanking by 18% in early trading.
The SKr2.31bn (US$255m) Nasdaq
3TOCKHOLMû)0/ûCAMEûWITHûlXEDûPRICINGûOFû
SKr36 per share and more than half the deal
was covered by a SKr1.245bn cornerstone
TRANCHEû4HEûmOATûWASûCOVEREDûONûTHEûlRSTû
day of bookbuilding.
Norva24 shares opened below pricing at
SKr33, fell to a low of SKr29.525 in early
trading and closed down 12.8% at SKr31.40.
More than 18.5m units changed hands,
nearly 29% of the base deal.
EQUITIES EMEA
POLAND
PRACUJ OPENS FLAT THEN DROPS
While Polish online recruitment company
GRUPA PRACUJ was able to price its IPO close to
the middle of the range, the shares dropped
to the bottom of the marketed guidance in
debut trading on Thursday.
Z1.1bn (US$270m) Warsaw IPO shrink as a
1.5m-share brownshoe is used. Around
15.1m secondary shares were sold in the
IPO.
3HARESûOPENEDûmATûTOû)0/ûPRICINGûOFû:û
apiece from a Z70–Z82 range, but closed
more than 5% down at Z70. On the day 2.2m
shares changed hands, representing 16% of
the base deal.
The IPO gives Pracuj a market cap of Z5bn
ONûADMISSIONûANDûAûûFREE
On Friday, trading was far worse, with the
stock opening down at Z69.02 and falling to
Z65.59 by midday in London, more than 11%
below pricing.
Citigroup, DMBH, Goldman Sachs and Trigon
were joint global coordinators, and joint
bookrunners with Numis. mBank was co-lead
manager.
SAUDI ARABIA
PIF COMPLETES STC SELL-DOWN
Public Investment Fund has wrapped up a
SR1.2bn (US$320m) upsized sell-down in
headquartered clinical-stage AI drug
discovery business BENEVOLENTAI having
completed a €135m PIPE to add to IPO
proceeds of €300m.
The healthcare-focused SPAC listed on
4HEûSHARESûOPENEDûmATûONû&RIDAYûBUTûHADû
fallen to SKr30.995 by midday in London.
Primary proceeds totalling SKr920m will
be used to repay debt and for general
corporate purposes. Secondary selling
SAUDI TELECOM COMPANY, pricing 120m shares
at the bottom of SR100–SR116 guidance.
Retail investors took 10% of the deal, and
the remainder was allocated equally
between domestic and international
%URONEXTû!MSTERDAMûINû*ULYûLEDûBYûFORMERû totalled SKr1.39bn from 38.7m shares from accounts.
-!ûBANKERSû-ICHAELûANDû9OELû:AOUI Valedo Partners. One particularly large international order
BenevolentAI has more than 20 in-house The valuation on admission was SKr6.9bn led the book, with the deal attracting strong
drug programmes and the company has a ANDûTHEûFREE
mOATûISûûRISINGûTOûûONû international anchor demand.
commercial collaboration with AstraZeneca
for chronic kidney disease. BenevolentAI also
SUCCESSFULLYûIDENTIlEDû%LIû,ILLYSûRHEUMATOIDû
arthritis drug baricitinib as a treatment for
Covid-19. The company has a research facility
INû#AMBRIDGEûANDûANûOFlCEûINû.EWû9ORK
The merger values BenevolentAI at
€1.1bn pre-money.
)NVESTORSûINûTHEû0)0%ûINCLUDEûEXISTINGû
BenevolentAI shareholder Temasek,
AstraZeneca, healthcare investors Ally
Bridge Group and Invus, among others.
Before redemptions, Odyssey
FULLûEXERCISEûOFûAûMûSHAREûPRIMARYû
greenshoe.
A book of more than 70 lines saw over
two-thirds go to Nordic money, and the top
10 took more than 70% of the IPO, including
the cornerstone tranche. There were also a
number of anchor orders in a book heavily
skewed to long-only accounts.
Final pricing represents estimated EV/
Ebitda for 2022 of 24 and estimated EV/
Ebitda for 2022 of 15.
Swedbank Robur Fonder, DNB Funds
Management, Livforsakringsbolaget Skandia,
The book contained hundreds of lines,
according to a banker involved, and about
80% of the institutional portion went to
long-only accounts.
More than 30 investors did not receive an
allocation.
The deal was upsized on Wednesday to 6%
of the company from 5% at launch.
The original deal was covered on Monday
afternoon after books opened on Sunday,
and the upsized trade was covered on
Thursday morning.
HSBC, Goldman Sachs, Morgan Stanley and
shareholders including the sponsors will
own 23.5% of the company, with
BenevolentAI shareholders owning 67.4%.
Investors in the PIPE will hold the
remainder.
omsesidigt and Skandia Fonder, and Carnegie
Fonder were the cornerstone investors.
Carnegie and Citigroup are joint global
coordinators, and joint bookrunners with
Danske Bank, DNB and SEB.
SNB CapitalûAREûJOINTûlNANCIALûADVISERSûANDû
joint bookrunners with Citigroup and Credit
Suisse.
Shares in STC closed on Thursday at
SR110 per share.

International Financing Review December 11 2021 69

 PETRO RABIGH’S LONG-AWAITED
RIGHTS ISSUE
PETRO RABIGH, a joint venture between Saudi
Aramco and Sumitomo Chemical, is
planning to raise SR7.95bn (US$2.1bn)
through a rights issue to reduce liabilities.
4HEûCOMPANYûWILLûlRSTûCOMPLETEûAûû
capital reduction due to accumulated losses of
SR1.2bn that will see one share cancelled per 7.3
shares and then it will complete the rights issue.
A rights issue has been in the works since 2015,
when the board recommended raising SR9.3bn
TOWARDSûTHEûEXPANSIONûOFûITSûRElNERYûHSBC was
&EBRUARY managers, banks, wealth managers, family
appointed to lead the rights issue in 2016.
The company will seek approval for the
capital reduction and rights issue from the
Capital Market Authority and then seek
shareholder approval.
JAHEZ IPO GROWS
Saudi online food delivery company JAHEZ
has received approval from the Capital
Market Authority to increase the number of
shares in its IPO to 1.9m, representing 18%
of the company, up from 1.4m, or 13%.
Pre-marketing began on December 1.
HSBC is lead bookrunner on the IPO,
which will see the company list on
Tadawul’s junior Nomu market.
TADAWUL TICKS UP ON DEBUT
mOATûTOûû
A three-day wall-crossing was carried
out to give investors a chance to get
comfortable with the primary issue,
leading to the deal being covered on
indications.
Formal coverage came within 15
minutes of launch and after 7:30pm in
London the deal was increased to 650,000
shares from 600,000, representing 6.8% of
share capital.
Pricing was SFr290, a 12.4% discount to
Wednesday’s SFr331 close. The shares
ended 2020 at SFr283, though they were
BRIEmYûABOVEû3&RûINûMID
4HEûlNALûBOOKûWASûCOVEREDûSEVERALûTIMESû
The top 10 orders took more than 60% of the
trade and the top 20 more than 85%, with
around a quarter of orders zeroed.
Zur Rose shares closed down 4.2% and
well above pricing at SFr317.
Bank of America and Jefferies were joint
bookrunners.
UK
IDEAGEN RAISES £103.5m FOR GROWTH
UK software company IDEAGEN raised
£103.5m on Wednesday evening, having
launched with ambitions of £100m to
bolster the balance sheet and provide
lREPOWERûFORûACQUISITIONSûANDû
ASIA RENEWABLE FUND
COMPLETES SMALLER LONDON IPO
THOMASLLOYD ENERGY IMPACT TRUST has raised
US$115.4m in a London IPO, below its target
of up to US$335m.
Shore Capital was bookrunner.
The fund will invest in renewable power,
transmission infrastructure, energy storage
and sustainable fuel production in Asia.
Shares were offered at US$1 each.
A wide range of investors came into the
book, including institutional asset
OFlCESûANDûRETAILûINVESTORS
After the issue of 34.6m consideration
shares related to an acquisition, the
company will have a market cap of
US$150m.
Trading in the shares starts on December 14.
Trust chair Sue Inglis said that the deal
attracted large UK and European investors,
including a £25m investment from the UK
government’s Mobilist initiative that is
dedicated to investing in green
infrastructure, technology and businesses.
POD POINT PARTIALLY EXERCISES ‘SHOE
Electric vehicle charging business POD POINT
HASûPARTIALLYûEXERCISEDûTHEûSECONDARYû
greenshoe on its London IPO, increasing the
DEALûTOûaMûANDûTHEûFREE
investments. !ûTOTALûOFûMûSHARESûWEREûEXERCISEDû
Shares in SAUDI TADAWUL GROUP rose on their In total, 37.03m shares were sold in the adding £4.1m at IPO pricing of 225p per
trading debut on Wednesday after the stock institutional bookbuild and 1.29m went to share. It represents about 40% of the
EXCHANGEûOPERATORûWRAPPEDûUPûANûALL
retail through PrimaryBid, representing an greenshoe that was available.
secondary SR3.78m (US$1bn) IPO last week. aggregate 15% of share capital. Pricing was The 10% ‘shoe was provided by EDF and
Shares closed on Wednesday at SR118, lXEDûATûPûANûûDISCOUNTûTOû ,EGALûû'ENERALû
12.4% up from IPO pricing of SR105 that Wednesday’s 306p close and a 1.6% EDF owns about 55% of Pod Point, and
came at the top of the SR95–SR105 range. discount to the VWAP over the 15 days to ,EGALûû'ENERALûOWNSûAROUNDûû
!CCORDINGûTOû2ElNITIVûDATAûABOUTûMû December 7. ACCORDINGûTOû2ElNITIVûDATAû
SHARESûCHANGEDûHANDSûONûTHEûlRSTûDAYû
representing just over half the 36m shares
CROSSINGûEXERCISEû global coordinators on the IPO, and joint
sold in the IPO.
Shares closed Thursday higher at SR126,
20% up from IPO pricing.
The deal drew demand of SR458bn and
was 121 times subscribed.
A retail tranche wrapped up on December
2 with about SR5bn in demand, and the
MAXIMUMûûWASûALLOCATEDûTOûMOREûTHANû
598,000 individual investors.
JP Morgan, Citigroup and SNB Capital were
joint leads.
SWITZERLAND
ONLINE PHARMACY ZUR ROSE
RAISES SFr188.5m
Online pharmacy ZUR ROSE raised SFr188.5m
(US$204m) on Wednesday night in an ABB
to fund growth.
70
The deal was launched with coverage on
INDICATIONSûFROMûAûWALL
and soft pre-emption was observed. The
TOPûûORDERSûTOOKûAPPROXIMATELYûû
from a book of around 70 lines, with the
top 20 taking just under 90% and more
than 90% of the deal going to long-only
money. A number of shareholders came in
with above pro rata orders.
Ideagen has spent the £48.7m raised last
December alongside debt to make eight
acquisitions for £141m. That has provided
£32.4m of annualised recurring revenues,
with Ideagen targeting £200m of ARR by
April 2025 and looking at several
acquisition opportunities.
Ideagen shares dropped sharply on
4HURSDAYûANDûCLOSEDûmATûTOû!""ûPRICINGûATû
270p. The shares are now little changed for
2021, having ended last year at 280p.
Joint brokers Canaccord Genuity, lNN#AP,
and Numis were joint bookrunners with
Goldman Sachs.
International Financing Review December 11 2021
Bank of America and Barclays were joint
bookrunners with Numis. Bank of America
was stabilising manager.
The company sold 44.3m new shares in
the IPO to raise £99.7m. Pricing came at the
bottom of 225p–275p guidance.
Shares in Pod Point traded down on their
debut on November 4, closing 4% lower at
216p. That proved to be the low close and a
week later the shares were above water and
haven’t looked back since. More than 99% of
stabilisation was on the debut, with BofA
out of the market after four days (and on one
of those it bought a solitary share).
Shares have since peaked at 291.5p and
closed at 254p on Monday.
By Friday at 11am in London they were
lower at about 241p each.
In about a week they climbed to trade
around IPO pricing, and hit the high of
291.5p on November 16, or 29.6% above IPO
pricing.
 EQUITIES AMERICAS

RECYCLING TECHNOLOGIES
PUSHES AIM IPO TO Q1

RECYCLING TECHNOLOGIES GROUP has postponed

HashiCorp prices US$1.22bn
its £40m all-primary AIM listing until early
INûTHEûlRSTûQUARTER Nasdaq IPO above range
Pricing was due on December 9, with
share trading set to begin on December 16. „ US Cloud infrastructure software firm delivers lean returns on debut
3OMEûSTRATEGICûINVESTORSûNEEDûEXTRAûTIMEû
TOûMAKEûAûlNALûINVESTMENTûDECISIONû
according to a statement from the company
on Friday.
Orders received in the institutional offer
will remain valid, and the company will
update investors in due course regarding the
new timetable.
A broad range of investors have shown
Open-source cloud infrastructure software firm
HASHICORP brushed aside the recent sell-off of
high-growth stocks to price its Nasdaq IPO well
above range for proceeds of US$1.22bn late on
Wednesday, but could only deliver a subdued
debut in choppy market conditions on Thursday.
A syndicate led by Morgan Stanley, Goldman
Sachs and JP Morgan priced the sale of 15.3m
software IPOs in recent years, though the
past month has seen a sharp decline in sector
valuations as the prospect of higher interest
rates next year compresses sky-high multiples.
November’s correction in software multiples
(down about 25% by some measures before
a strong rebound in the past week) probably
meant the final price was lower than it might
INTERESTûINûTHEû)0/ûINCLUDINGûhSIGNIlCANTû
blue-chip funds”, the company said.
A range of 150p–170p per share was set
when books opened on November 26, and
the company was shooting for a market cap
of £102m–£111m.
Stifel is bookrunner.
HILTON FOOD GROUP RAISES £75m
FOR ACQUISITION
Meat-packing company HILTON FOOD GROUP
raised £75m in an intraday ABB on Friday to
part fund its acquisition of Dutch smoked
salmon producer Foppen.
Hilton Food said on Friday that it has
agreed to buy Dutch Seafood Company,
which trades as Foppen, for an enterprise
value of €90m.
A total of 6.6m shares were placed at
£11.40 each, a 4.7% discount to Thursday
close of £11.96.
The shares equate to a roughly 8% capital
increase.
Numis was bookrunner.
The proceeds will also be used to partially
RElNANCEûTHEû/CTOBERûACQUISITIONûOFû5+û
MEATûSUPPLIERû&AIRFAXû-EADOW
3HARESûFELLûBRIEmYûBELOWû!""ûPRICINGûATû
2:40pm on Friday to about £11.34 each before
closing at £11.78, down 1.5% on the day.
AMERICAS
UNITED STATES
HashiCorp Class A primary shares, or about
8% of the company, at US$80, above the
US$68–$72 marketing range and attributing the
company a market cap of US$14.5bn.
Debuting the next day, HashiCorp shares
opened at US$81.16 and later traded as high
as US$89.50 before closing at US$85.19 for a
day-one gain of 6.5%.
It was a lean return by the standards of the
usually white-hot software sector and despite the
offering being heavily oversubscribed, though a
banker close to the deal said it was important the
offering did not lose money for investors in the
often difficult final month of the year.
The syndicate executed the IPO using
Morgan Stanley’s “ALPS” portal/hybrid auction
technology, requiring institutional investors to
lob orders at a specified price and size rather
than the market orders that have previously
dominated bookbuild for tech IPOs.
Though bankers argue this process provides
a demand curve that improves transparency
while leaving management with the discretion to
allocate stock to preferred investors, its increased
usage this year has coincided with record
multiples for software IPOs.
MULTIPLES
Though well above the top-end of the marketing
range (11.1%), HashiCorp’s final IPO price was still
not a material enough increase that it required
HashiCorp to re-file its terms ahead of pricing.
Upping the range and pricing above range
has been a typical progression for high-growth
The past week saw 17 companies raise
about US$10bn, led by the NYSE IPO of
Brazilian digital bank NU, plus a string of
SPAC IPOs as a record year for new issuance
have been had the deal come earlier this year,
the banker said.
As it was, HashiCorp still did not come cheap,
the final terms valuing the company at roughly
35-times forward sales projections by analysts
from the syndicate banks.
HashiCorp grew revenues by 49% to
US$224.2m in the nine months ended October
31. While loss-making, the company has
consistently generated gross margins of more
than 80%. Analysts expect HashiCorp’s sales to
grow to about US$400m next year and approach
US$530m in 2023.
Its IPO valuation still puts it in the same
league valuation-wise as some of the hottest
software IPOs in the past year or two, among
them GitLab, Toast and Snowflake. GitLab,
which went public in October, currently holds the
record at 37.5-times, but its shares traded below
the offering price in the past week.
HashiCorp counts venture capital firms
Mayfield (18.3% pre-IPO) and GGV Capital
(18.2%) as major shareholders.
Its four main commercial products (Terraform,
Vault, Consul and Nomad) help companies
undergoing digital transformation to automate
infrastructure provisioning, security, networking
and application deployment.
The firm competes with the big cloud services
players such as Amazon Web Services, Microsoft
Azure and Google Cloud, but also legacy
providers such as Red Hat, CyberArk Software
and VMWare.
Anthony Hughes
public, raising nearly US$150bn of proceeds,
the latter up 80% from 2020 levels.
One banker said that while it was possible
that some companies would bring follow-
US ECM WINDS DOWN FOR 2021
The coming week shapes up as effectively
THEûlNALûOPPORTUNITYûFORûCOMPANIESûTOûRAISEû
equity in 2021, though Wednesday’s FOMC
outcome and recent market volatility
enters its twilight.
The coming week’s calendar currently has
only one scheduled IPO, the up to US$805m
.93%ûDEBUTûOFûmEETûMANAGEMENTûSOFTWAREû
lRMû3AMSARAûBEINGûPRICEDûLATEûONû4UESDAYûANDû
probably the last major US IPO of the year.
ONSûINûTHEûCOMINGûWEEKûHISûlRMûHADû
already opted to postpone at least one deal
as investors turn their focus to Wednesday’s
FOMC statement.
December activity levels have been
complicated by a topsy-turvy market that
provide likely obstacles to a heavy week of !CCORDINGûTOû2ElNITIVûDATAûTHISûWOULDûCAPû saw stocks rally earlier in the past week
issuance. a year that has seen 386 companies go after a heavy sell-off of growth names

International Financing Review December 11 2021 71


Intel sets sights on IPO of
Mobileye unit
„ US Autonomous driving tech unit readies public markets return but Intel to retain control
Intel is looking to bolster its under-performing
stock price by returning MOBILEYE to public
markets next year, roughly five years after
buying the self-driving technology firm for
US$15.3bn.
The semiconductor giant revealed late on
Monday it was planning a mid-2022 US IPO
of “newly issued Mobileye stock” in an effort to
unlock value for its shareholders.
In what could rank as one of next year’s
biggest IPOs, Intel would remain the majority
owner of Mobileye but still get some “cash
benefits” from the IPO, management said in a
conference call with analysts on Tuesday.
Though Intel did not elaborate, one option
The plan may also dovetail with Intel’s
strategy unveiled earlier this year to become a
major provider of chip-making capacity in the
US and Europe by building its own foundries,
starting with a US$20bn investment in two in
Arizona. However, Intel said it did not need the
Mobileye IPO to execute that strategy.
RETURN
The Israel-based Mobileye went public via a
US$1bn NYSE IPO at US$25 a share in 2014 led
by Goldman Sachs and Morgan Stanley before
being acquired for US$15.3bn or US$63.54 a
share by Intel in 2017. The growth numbers
Intel is citing suggest a significantly higher
CANNABIS REIT YIELDS US$100m
FROM US IPO
CHICAGO ATLANTIC REAL ESTATE FINANCE, a
cannabis-focused mortgage REIT, made an
unremarkable Nasdaq debut Wednesday
after raising US$100m from its IPO.
JMP Securities, Compass Point and
Oppenheimer led the sale of 6.25m shares, a
roughly 36% stake, at US$16.00, the bottom
of the US$16–$18 range and roughly in line
with book value of US$16.01 as of
September 30.
Chicago Atlantic shares opened
Wednesday’s session at US$16.40, later
trading as high as US$16.95 before closing at
US$16.49, a modest 3.1% gain on its debut.
The offering, which had been marketed
for seven full days, was closely followed by
other investment banks looking to take
public other REITs focused on cannabis,
people told IFR.
The IPO valued Chicago Atlantic, a
provider of secured loans for cannabis
instead of selling Mobileye would be to transfer
some debt to Mobileye alongside the IPO
(probably in a tax-effective manner), freeing up
Intel’s balance sheet.
Asked by an analyst whether it was
taking Mobileye public because it wanted to
or it had to, Intel CEO Pat Gelsinger said he
wanted to because Mobileye was in a “hot
category” and an IPO would give it “greater
visibility”.
“We have a very unique asset with Mobileye,
and we want to do everything we can to
accelerate its momentum in the marketplace,
and the visibility that this will have to
customers, to shareholders, employees and
future talent,” Gelsinger said.
“We do see it as a way to expose that value
to the market and shareholders with what we
would expect is a different multiple range,” he
said, hinting he expected Mobileye to trade at
a materially higher valuation on a standalone
basis than Intel does as a whole.
US EQUITIES
BOOKRUNNERS: 1/1/2021 TO DATE
Managing No of
bank or group issues
1 Goldman Sachs 256
IPO valuation (some say US$50bn), helped by
the fervour created by the uptake of electric
vehicles.
The two companies also plan to continue to
collaborate on projects as they pursue
the growth of computing in the automotive
sector.
Mobileye grew revenue 40% this year, Intel
said in a statement. The unit also shipped its
100 millionth EyeQ “system-on-chip”, unveiled
its production robo-taxi, and secured 41 new
advanced driver-assistance system programme
wins from more than 30 automakers globally.
Despite the IPO plans, Intel has no intention
of spinning off or otherwise divesting its
majority ownership interest.
Intel shares rose 3.1% to US$52.57 on
the news on Tuesday but have significantly
underperformed the broader equity market this
year, trading broadly flat this year even as other
chip stocks have soared.
Anthony Hughes
through November amid concerns about
the latest Covid variant and a more
Total Share hawkish central bank.
US$(m) (%) The average return from this year’s IPOs
50,984.17 17.3
GROWERSûANDûEXTERNALLYûMANAGEDûATûJUSTû
under US$280m.
Chicago Atlantic plans to use US$31.7m of
the IPO proceeds to make loans already
committed. This represents about one-
quarter of its US$120m in committed loans,
including US$98m under non-binding term-
sheets, and in addition to US$318.3m of
loans outstanding as of November 22.
GLPI RAISES US$345m FOR
CASINO PURCHASES
Eager to lock up funding by the end of the
year, GAMING AND LEISURE PROPERTIES secured
US$344.6m from a stock sale late on Monday
to help fund the US$1.8bn purchase of three
casino properties.
Bank of America, Wells Fargo, Citigroup and
Mizuho led the sale of 7.7m shares or just
2.6% of GLPI at US$44.75, towards the lower
end of the US$44.50–$45.65 marketing
range and a 3.7% discount to Monday’s
US$46.45 closing price.
GLPI shares closed at US$46.85 on
Tuesday.
The sum raised will partly fund the
purchase of the property assets of Live!
has also turned negative in recent weeks, #ASINOûû(OTELSûINû-ARYLANDû0HILADELPHIAû
2 JP Morgan 270 48,657.70 16.5
badly under-performing the nearly 25% and Pittsburgh.
3 Morgan Stanley 240 45,585.64 15.4 RETURNûOFûTHEû30û GLPI plans to lease back the real estate to
4 Bank of America 235 30,022.22 10.2 Another banker said syndicate desks privately held casino developer and operator
5 Citigroup 120 16,601.34 5.6 already had a busy pipeline of deals in Cordish, which will pay US$125m of annual
6 Barclays 114 15,320.81 5.2 store for 2022 including a good number of rent, equivalent to an initial 6.9% cap rate.
7 Jefferies 130 9,374.08 3.2 larger IPOs. Though strategists are The consideration for the acquisitions
8 Credit Suisse 81 7,715.09 2.6 forecasting leaner returns from stocks COMPRISESûAûMIXûOFû53MûINûASSUMEDû
9 Wells Fargo 64 5,745.30 1.9 NEXTûYEARûTHEûCONSENSUSûISûSUB
 û debt, the issuance of US$323m of operating
10 RBC 49 4,419.80 1.5 after three straight years of outsized partnership units and the roughly US$700m
Total 1,047 295,297.96 gains, bankers are hopeful investors will balance in cash, half of which is coming
Including all domestic and international deals and rights issues TURNûTOûNEWûISSUESûAGAINûTOûlNDûSOURCESû from Monday night’s stock sale and the
Source: Refinitiv SDC code: C3r of alpha. other half from revolver borrowings.

72 International Financing Review December 11 2021


GLPI also inked a separate seven-year
agreement with Cordish to contribute 20%
of the equity on new gaming projects.
SILVERGATE TAPS ‘CRYPTO-MAFIA’
FOR US$480m DEPOSIT
In what is perhaps best described as a
volatility-squared investment, crypto-
banking specialist SILVERGATE CAPITAL
secured US$480m from the sale of new
stock overnight on Tuesday.
Goldman Sachs, JP Morgan and Keefe
Bruyette & WoodsûLAUNCHEDûATûAûlXEDû
US$400m marketed at US$145–$155,
versus a US$165.37 last sale on Wednesday,
before upsizing to 3.3m shares priced at
US$145.00, bumping gross proceeds raised
to US$480m.
h4HISûISûAûNAMEûTHATûHASûAûBITûOFûAûMAlA
stock will debut on the same day (December 15)
like following,” one banker involved in the
offering told IFR. “In addition to those
investors, we did see participation from
new accounts.”
Silvergate closed Wednesday’s session at
US$168.05 only to fall on Thursday to
US$148.12. The stock has realised near-100
vol over the past 90 days.
This is Silvergate’s second equity raise of
the year following a US$287.5m overnight
offering at US$63 in January and its third
equity-linked raise including US$200m
raised from the sale of preferred stock in
August.
Silvergate is among the fastest-growing,
best-capitalised banks specialising in
cryptocurrency and last week’s equity
raise provides it with a further buffer for
continued growth.
In the third quarter, the bank saw
customer deposits swell to US$11.2bn,
from US$9.9bn during the second quarter,
and the number of customers grow to
1,305 from 1,224. Institutions use the
3ILVERGATEû%XCHANGEû.ETWORKûTOûTRANSACTû
between crypto and US dollars at any time.
Silvergate generated third-quarter net
income of US$23.5m or 88 cents per share.
At 55 times earnings, Silvergate is ultra-
EXPENSIVEûBYûSTANDARDSûOFûAûTRADITIONALû
bank, and for good reason.
Silvergate pays no interest on the bulk
of customer deposits, providing zero-cost
funding and making it very sensitive to
interest rates. In response to customer
demand for leverage, the bank rolled out
its SEN Leverage product in January 2020
TOûPROVIDEû53ûDOLLARûlNANCINGûONûBITCOINû
deposits.
Stablecoin provides it another avenue
for growth. Silvergate already services the
four leading US-based stablecoin issuers –
Samsara’s US$805m NYSE IPO
to cap record year for new issues
„ US Early demand strong despite pressure on growth multiples
Fleet management/“connected operations
cloud” software firm SAMSARA decided it was
better to go ahead with its IPO now than find out
what 2022 has in store for software multiples,
opting on Monday to launch an up to US$805m
NYSE offering in what may be this year’s final US
new issue.
Morgan Stanley, Goldman Sachs, JP Morgan
and Allen & Co are leading the sale of 35m
Samsara primary shares at US$20–$23 for
pricing post-close on December 14, meaning the
many of them recent IPOs, have been hit hard
that the increasingly hawkish FOMC hands down
its latest monetary policy decision.
Despite investors’ typical reluctance to take
big bets on IPOs at this time of the year, bankers
close to the deal said there was already strong
interest in the offering. The deal is also being
executed as a hybrid auction, typically reserved
for IPOs that are expected to draw strong
investor demand.
TIMING
Other high-profile IPOs in the pipeline, such as
that of Greek yogurt maker Chobani and fashion
e-commerce firm Rue Gilt Groupe, have yet to
launch their IPOs as planned and appear to have
run out of time to do so this year (and bankers
have postponed until next year a raft of other
deals). But if anything was going to jump over
the higher bar that currently confronts new
issues, it was probably Samsara.
the stablecoin initiative formerly known
as Facebook’s Libra project.
“I remain incredibly enthusiastic about
Silvergate’s position and ability to
contribute to the growing stablecoin
ecosystem,” Silvergate CEO Alan Lane said
on the Q3 earnings call in October. “Over
time, we believe stablecoins have the
potential to become a meaningful
payment rail for customers around the
world.
“We continue to have an open dialogue
with our regulators and look forward to
keeping you updated on (Diem) in the
coming months.”
As an FDIC-insured bank, Silvergate has
a competitive advantage.
On November 1, the President’s
Working Group on Financial Markets
REPORTûSEEMINGLYûlRMEDûUPûTHATûSTANDINGû
EQUITIES AMERICAS
In the long tradition of hot cloud IPOs,
the company sports high growth, the right
buzzwords (artificial intelligence, Internet of
Things and digital transformation), and big-
name sponsorship (Marc Andreessen is the
biggest holder outside the founders).
It is also structured to increase the chances of
early gains given the IPO represents only 7% of
the outstanding.
Yet Samsara comes as many high-growth tech
companies that trade on high EV/sales multiples,
in recent weeks, while fellow cloud software firm
HashiCorp made a subdued debut in the past
week.
The Global X Cloud Computing ETF is down
nearly 8% this quarter and down 3.3% this year,
while Cathie Wood’s Ark Innovation ETF, which
holds stocks that reflect many of the market’s
hottest themes, is down 12.6% this quarter and
22.5% this year.
Founded in 2015 and now with more than
13,000 customers, Samsara sells subscriptions
to a cloud platform that helps business harness
Internet of Things data to improve their
efficiency.
Samsara’s terms attribute the company a
market cap of up to US$12.4bn versus annualised
recurring revenue of US$492.8m at October 30.
Actual revenues were US$302.6m, up 74%, in
the first nine months of this year.
Anthony Hughes
STARWOOD RETURNS TO ECM
WITH US$397m STOCK SALE
After a long absence, STARWOOD PROPERTY
TRUST, the Barry Sternlicht-led mortgage
REIT, returned to US ECM on Tuesday
night with a US$397m all-primary block
trade.
Citigroup, Bank of America, Morgan Stanley
and Wells Fargo sold 16m shares at
US$24.82, a 3.5% discount to last sale and
1.2-times book value. Starwood shares
closed on Wednesday at US$24.79, slightly
below the offering price.
“Historically, Starwood has been
prudent when it comes to raising equity,”
BTIG analysts wrote in a note to clients. “It
has not tapped the capital markets just to
capitalize on stock price appreciation or to
fund growth for growth’s sake.”
#IRCLEû0AXû$OLLARû'EMINIû$OLLARûANDû by recommending potential legislation to Starwood last sold stock publicly in 2017
TrueUSD – and in May struck a deal to require stablecoin issuance be conducted INûTHEûFORMûOFûAû53MûlVE
YEARû#"ûANDû
BECOMEûTHEûEXCLUSIVEûISSUERûOFû$IEMû53$û through FDIC-insured banks. straight equity in 2016.

International Financing Review December 11 2021 73

 Gensler sends signal on SPAC regulation
„ US SPACs raise US$3.3bn combined through new US listings

US SEC Commissioner Gary Gensler doubled down
on his long-running attack on SPACs last week by
proposing more stringent regulations on the product.
The regulatory noose has been tightening
around SPACs for the better part of a year,
beginning with changes to the accounting of
SPAC warrants in April and the imposition in
June of minimum shareholder thresholds to list
new SPACs on Nasdaq.
“I first testified about SPACs in May, and this
issue has been on the SEC’s Agency Rule List
since June,” Gensler told the Healthy Markets
Association Conference.
Gensler was careful to note the views were his
own and he was not speaking on behalf of SEC
staff or other commissioners.
He began his remarks by citing the
Aristotelian maxim to “treat like cases alike” to
highlight the need for SPACs to be treated the
same way as traditional IPOs.
“Are SPAC investors – both at the time of
the initial SPAC blank-cheque IPO and during
the SPAC target IPO – benefiting from the
protections they would get in traditional IPOs,
with respect to disclosure, marketing practices,
and gatekeepers?” he said.
“Currently, I believe the investing public
may not be getting like protections between
traditional IPOs and SPACs.”
A key difference between traditional IPOs
and SPACs is underwriting, specifically
that the liability investment banks, lawyers
and accountants assume in underwriting a
traditional IPO be extended to SPACs, from the
blank-check IPO stage through to merger.
“There may be some who attempt to use
SPACs as a way to arbitrage liability regimes,”
Gensler said. “Many gatekeepers carry out
functionally the same role as they would in a
traditional IPO but may not be performing the
due diligence that we’ve come to expect. Make
no mistake: When it comes to liability, SPACs do
not provide a ‘free pass’ for gatekeepers.”
Gensler said he had asked his staff to come up
with proposals to better protect investors around
disclosures, marketing practices, and gatekeeper
obligations.
BULL CONTINUES TO RUN
SPACs raised US$3.3bn through 19 new US
listings last week, with six new SPAC mergers
announced at a combined enterprise value of
US$11.7bn. Year-to-date, 582 issuers have raised
US$147.6bn through US-listed SPACs and 222
mergers announced/completed with a total
value of US$575bn, according to Refinitiv and
IFR data.
That compares with 321 companies that have
gone public through traditional US-listed IPOs.
SPACs are now a global phenomenon, as four
of the 19 SPAC IPOs that listed on US exchanges
last week were foreign.
APX ACQUISITION, a SPAC sponsored by Mexico
City-based alternative asset manager APx
Capital, on Monday raised US$150m from its
Nasdaq IPO, becoming only the fifth Mexican
SPAC to list in the US.
Bank of America was sole bookrunner on
APx, which closed its US debut on Tuesday at
US$10.06, above the US$10.00 per unit paid
by investors but below the US$10.20 placed in
trust.
APx Acquisition will focus its search on
Mexico, Spanish-speaking Latin America, and
Hispanic businesses in the US.
Riccardo Orcel, a former banker at Russia’s
VTB Capital (and the younger brother of
UniCredit CEO Andrea), landed US$250m on
Wednesday from the Nasdaq IPO of EMERGING
MARKETS HORIZON, a SPAC domiciled in Cyprus
targeting tech/consumer assets in Russia and
Central and Eastern Europe.
Citigroup and VTB Capital were joint
bookrunners on the Emerging Markets SPAC,
which also benefited from US$10.20 over-
funding.
Emerging Markets, which like APx has a
compressed 15-month tenor, closed its Nasdaq
debut Thursday at US$10.05.
GENESIS GROWTH TECH ACQUISITION, a tech-
focused SPAC headquartered in Switzerland
and sponsored by Swiss VC Eyal Perez’s Genesis
Advisors, landed an upsized US$220m late on
Wednesday from its Nasdaq IPO.
Nomura was sole bookrunner on Genesis
Growth, which like all SPAC IPOs that priced last
week over-funded the trust at US$10.15.
Genesis Growth closed its Nasdaq debut at
US$10.05.
FORBION EUROPEAN ACQUISITION, a life sciences
SPAC sponsored by Dutch VC Forbion, on
Thursday raised US$110m from its IPO with
the incentive of a trust funded at US$10.25 per
US$10.00 unit sold.
Stephen Lacey

SPAC SUMMARY: WEEK ENDING 10/12/2021

Warrant
Name Target Size coverage Term, % in trust Bookrunners
APX Acquisition LatAm US$150.0m 1/2 15 months, 102% in trust Bank of America
Athena Technology Acquisition II Technology US$250.0m 1/2 18 months, 101% in trust Citigroup
Crypto 1 Acquisition Cryptocurrency US$200.0m 3/4 12 months, 100.5% in trust B Riley Securities
Emerging Markets Horizon Tech/Consumer, Russia US$250.0m 1/2 15 months, 102% in trust Citigroup, VTB Capital
Financial Strategies Acquisition Fintech US$87.0m 1 plus 1/10 12 months, 101% in trust I-Banker Securities
Forbion European Acquisition Life sciences, Europe US$110.0m 1/3 18 months, 102.5% in trust UBS, Kempen
Genesis Growth Tech Acquisition Consumer internet US$220.0m 1/2 12 months, 101.5% in trust Nomura
Growth for Good Acquisition ESG US$220.0m 1/2 18 months, 100% in trust Credit Suisse, Barclays
Healthcare AI Acquisition Healthcare/pharma US$200.0m 1/2 18 months, 102% in trust Citigroup, Jefferies
Inception Growth Acquisition TMT US$90.0m 1/2 plus 1/10 right 15 months, 101% in trust EF Hutton, Brookline CM
Integrated Wellness Acquisition Consumer US$100.0m 1/2 15 months, 102% in trust BTIG
Jackson Acquisition Company Healthcare US$200.0m 1/2 18 months, 101.5% in trust Bank of America
Jupiter Wellness Acquisition Healthcare US$120.0m 1/2 plus 1/8 right 12 months, 101% in trust I-Banker Securities
Motive Capital II Fintech US$300.0m 1/3 18 months, 102% in trust UBS, JP Morgan
Power & Digital Acquisition II Energy transition US$250.0m 1/2 18 months, 101% in trust Barclays, Bank of America
Southport Acquisition Fintech US$200.0m 1/2 18 months, 102% in trust Bank of America
Target Global Acquisition I Tech, Israel US$200.0m 1/3 18 months, 102% in trust UBS, Bank of America
Trajectory Alpha Acquisition Tech US$150.0m 1/2 18 months, 101% in trust Guggenheim Partners
Source: IFR, securities filings

74 International Financing Review December 11 2021

 EQUITIES AMERICAS

ECM DEALS: WEEK ENDING 10/12/2021

Stock Country Date Amount Price Deal type Bookrunner(s)
Ebos Group Australia 10/12/2021 NZ$674m NZ$34.50 Follow-on (Primary) Macquarie Capital
Nu Brazil 08/12/2021 US$2,602.8m US$9 IPO (Primary & Secondary) MS, GS, Citigroup, NU
Magnet Forensics Canada 07/12/2021 C$74.4m C$30.30 Accelerated bookbuild (Primary) Cannacord Genuity, BMO CM
Bavarian Nordic Denmark 06/12/2021 DKr1.7bn DKr268 Accelerated Bookbuild (Primary) Citigroup, Nordea
Frey France 08/12/2021 €102m US$30m Rights issue BNPP, CA, Natixis
Vonovia Germany 07/12/2021 €8bn €40 Rights issue BofA, MS, SG, BNPP, Citigroup, Commerz, DB, GS,
ING, Intesa Sanpaolo, JPM, LBBW, UBS, UniCredit
Hangzhou SF Intra-City Industrial Hong Kong 08/12/2021 HK$2.15bn HK$16.42 IPO (Primary) BofA, CICC, CS, Huatai International
Logan Group Hong Kong 07/12/2021 HK$1.17bn HK$6.80 Follow-on (Primary) BNPP, Citigroup, UBS
Tsingtao Brewery Company Hong Kong 10/12/2021 HK$2.5bn HK$66.10 Blocktrade BofA
Huabao International Hong Kong 09/12/2021 HK$2.18bn HK$17.88 Follow-on (Primary) Citigroup, CLSA, Nomura
Shimao Group Holdings Hong Kong 07/12/2021 HK$1.18bn HK$8.14 Follow-on (Primary) HSBC, JPM and MS
HFCL India 05/12/2021 Rs6bn Rs68.75 Follow-on (Primary) ICICI Securities, JM, Monarch
Bank Hapoalim Israel 07/12/2021 NIS1.4bn NIS30.90 Accelerated Bookbuild (Secondary) BofA
Perion Network Israel 08/12/2021 US$157m US$21.50 Accelerated bookbuild (Primary) Oppenheimer, Stifel, Raymond James
Link and Motivation Japan 07/12/2021 ¥6.3bn ¥633 Follow-on (Primary) Nomura
Recruit Holdings Japan 10/12/2021 ¥105.8bn ¥7,053 Blocktrade BofA, GS
Sun Japan 06/12/2021 ¥8.6bn ¥2,380 Follow-on (Primary) Daiwa
Pegasus Entrepreneurial Acq Europe Netherlands 09/12/2021 €210m €10.00 IPO (SPAC) BNPP, Citigroup, GS
Norva24 Norway 08/12/2021 SKr2.31bn SKr36 IPO (Primary & Secondary) Carnegie, Citigroup, Danske Bank, DNB, SEB
Saudi Telecom Company Saudi Arabia 09/12/2021 SR12bn SR100 Follow-on (Secondary) HSBC, GS, MS, SNB Capital
Capitaland Integrated Com Trust Singapore 06/12/2021 S$250m S$1.96 Follow-on (Primary) JPM, UOB
Kakao Bank South Korea 09/12/2021 W481.6bn W63,200 Blocktrade MS
Zur Rose Switzerland 08/12/2021 SFr188.5m SFr290 Accelerated Bookbuild (Primary) BofA, Jefferies
Hilton Food Group UK 10/12/2021 £75m £11.40 Accelerated Bookbuild (Primary) Numis
Ideagen UK 08/12/2021 £103.5m 270p Follow-on (Primary) Canaccord Genuity, finnCap, GS, Numis
ThomasLloyd Energy Impact Fund UK 09/12/2021 US$115.4m US$1 IPO (Primary) Shore Capital
Adicet Bio US 07/12/2021 US$91m US$14 Accelerated bookbuild (Primary) Jefferies, Guggenheim Securities
Agree Realty US 08/12/2021 US$340.8m US$68.15 Accelerated bookbuild (Primary) Wells Fargo, BofA, MS
Blue Owl Capital US 06/12/2021 US$387.4m US$14.50 Follow-on (Secondary) GS, BofA, JPM
Chicago Atlantic Real Estate US 07/12/2021 US$100m US$16 IPO (Primary) JMP Securities, Compass Point, Oppenheimer
Energy Transfer US 07/12/2021 US$665.2m US$7.65 Accelerated bookbuild (Secondary) Citigroup, JPM, MS
Gaming and Leisure Properties US 06/12/2021 US$344.6m US$44.75 Accelerated bookbuild (Primary) BofA, Wells Fargo, Citigroup, Mizuho Securities
HashiCorp US 08/12/2021 US$1,224m US$80 IPO (Primary) MS, GS, JPM, BofA, Citigroup
Relmada Therapeutics US 08/12/2021 US$150m US$17 Accelerated bookbuild (Primary) GS, Jefferies, Guggenheim
Silvergate Capital US 06/12/2021 US$480m US$145 Accelerated bookbuild (Primary) GS, JPM, Keefe Bruyette & Woods
Verra Mobility US 07/12/2021 US$121.9m US$14.85 Accelerated bookbuild (Secondary) BofA
Starwood Property Trust US 07/12/2021 US$397.1m US$24.82 Accelerated bookbuild (Primary) Citigroup, BofA, MS, Wells Fargo

It has instead focused on debt funding pipeline owner at US$7.65, within the CenterPoint’s eagerness to quickly sell
that included a US$400m HY sustainable US$7.50–$7.80 range and an 8.5% discount about half of its ET holding is not
bond offering issued earlier this month. to last sale. surprising since it has been trying to shed
3TARWOODûAûDIVERSIlEDûMORTGAGEû2%)4û The block raised US$665.2m of gross THEû%NABLEûSTAKEûFORûMOREûTHANûlVEûYEARSû
that owns commercial as well as proceeds and proved a bargain for in a mostly moribund market for MLP
residential real estate loans, has invested investors, the shares changing hands at assets. Yet with the stronger energy
US$3.2bn across its investment strategies U$8.57 by Thursday’s close or well above COMPLEXûTHISûYEARû%4ûUNITSûAREûUPûBYûMOREû
so far in Q4, putting it on track for a record the reoffer price. than a third this year through Tuesday’s
quarter. The banks hold a 15% greenshoe option, close. Early in Wednesday’s session, ET
CENTERPOINT SELLS US$665.2m
OF ENERGY TRANSFER UNITS
Houston-based utility CenterPoint Energy
TOOKûAûBIGûSTEPûINûlNALLYûSHEDDINGûITSû
MIDSTREAMûEXPOSUREûBYûSELLINGûNEARLYûHALFû
of the ENERGY TRANSFER units it inherited
from ET’s just-completed US$7.2bn
acquisition of Enable Midstream Partners.
WHICHûIFûEXERCISEDûWOULDûINCREASEûTHEû
selldown to 100m units.
%4ûANDûhCERTAINûAFlLIATESvûINCLUDINGû
management) agreed to buy 20.6m units in
the offering or nearly 24% of the deal at the
banks’ block purchase price of US$7.45
(the price less the underwriting spread),
the company revealed in its later SEC
lLING
The previous week’s formal completion
units rose 2.9% to US$8.60, while
#ENTER0OINTûSHARESûWEREûBROADLYûmATûATû
US$27.86.
Still, CenterPoint’s remaining stake
remains an overhang on ET’s unit price, as
are the 95.4m ET units received by
Oklahoma’s OGE Energy (the parent of
Oklahoma Gas and Electric Company) for
its minority holding in Enable.
OGE has said it wants to become a pure-
7ITHûTHEûINKûBARELYûDRYûONûTHEû-!û of the ET/Enable transaction saw play power company and will look to sell
Citigroup, JP Morgan and Morgan Stanley late CenterPoint collect 201m ET units (6.5% of ITSû%4ûUNITSûBYûTHEûENDûOFûNEXTûYEAR
on Tuesday priced the all-secondary block %4 ûINûEXCHANGEûFORûITSûMAJORITYûSTAKEûINû CenterPoint and OGE are subject to a
sale of 86.96m ET units or 2.8% of the Enable. new 60-day lockup on further selling.

International Financing Review December 11 2021 75

 PLATINUM COMPLETES FULL EXIT !CCORDINGûTOûAûlLINGûONû4UESDAYûTHEû US$1.3bn and US$1.4bn on acquisitions
FROM VERRA
4OMû'ORESû0LATINUMû%QUITYûOFmOADEDûITSû
remaining 5.3% stake in tolling and
VIOLATIONSûMANAGEMENTûSOFTWAREûlRMûANDû
EX
30!#ûVERRA MOBILITY via a US$121.8m
block sale last week.
Sole bookrunner Bank of America priced
the sale of 8.21m Verra shares, or all of the
banks collected a US$13.4m spread from
the base offering.
ADICET RAISES ASH CASH
Cancer drug developer ADICET BIO raised an
upsized US$88m overnight on Tuesday in
anticipation of its presentation at the 63rd
ANNUALû!3(û-EETINGûANDû%XPOSITIONûOFûTHEû
THISûYEARûTHOUGHûTHEûlNALûNUMBERûMAYûBEû
even higher.
Agree has already spent US$162m in Q4
on 33 new properties and has letters of
intent to buy another 100 properties for a
combined US$445m. Though some deals
may be pushed into 2022, the pipeline is
fully funded with the offering proceeds
ANDûEXISTINGûSOURCESûOFûCAPITAL
PRIVATEûEQUITYûlRMSûREMAININGûSHARESûATû
US$14.85, the bottom of the US$14.85–
$15.15 range and a 3.9% discount to
Tuesday’s closing price. The stock closed at
US$14.83 or slightly below the reoffer
price in Wednesday’s aftermarket.
The deal marks Platinum’s fourth sell-
down since Verra, previously known as
American Society of Hematologists.
Joint bookrunners Jefferies and
Guggenheim SecuritiesûlRMEDûUPûSUPPORTû
THROUGHûCONlDENTIALûMARKETINGûBEFOREû
pricing 6.25m shares at US$14.00, a 3.4%
discount to the last sale.
Adicet shares closed above issue on
Wednesday at US$15.29.
RELMADA RAISES US$150m OVERNIGHT
RELMADA THERAPEUTICS, a Phase III
developer of a fast-acting
antidepressant, raised an upsized
US$150m overnight on Wednesday
ahead of a pivotal 2022.
!MERICANû4RAFlCû3OLUTIONSûWENTûPUBLICûINû The shares soared after it gave a preview Joint bookrunners Goldman Sachs, Jefferies
October 2018 following its US$2.4bn Monday morning of what investors can and Guggenheim Securities priced 8.8m
merger with SPAC Gores II, sponsored by EXPECTûFROMûITSû!3(ûPRESENTATIONû shares at US$17.00, a 7.8% discount to the
'ORESûTHEûPRIVATEûEQUITYûlRMûFOUNDEDûBYû A Phase I trial of its off-the-shelf CAR-T US$18.45 closing price.
Tom Gores’ older brother Alec. treatment for lymphoma is off to a fast Relmada shares rose 6.3% on Thursday
The merger left Platinum and other
EXISTINGûOWNERSûOFû6ERRAûWITHûûOFûTHEû
combined company.
The reoffer price on the latest sell-down
was slightly better than the US$14.75 mark
at which Platinum sold 8m shares in
August in a Goldman Sachs-led offering. It
was also above the US$14.25 level at which
it sold 15m shares via Morgan Stanley in
late 2019, and the US$12.50 at which it
OFmOADEDûMûSHARESûINû*UNEû
Ahead of the offering, Verra shares had
risen 15.1% this year.
NEUBERGER CUTS BLUE OWL STAKE
)NVESTMENTûMANAGEMENTûlRMû.EUBERGERû
Berman cut its stake in private capital asset
manager and former SPAC BLUE OWL CAPITAL
via an accelerated US$387.4m stock sale.
Though initially planning to market the
offering for one day, a syndicate led by
Goldman Sachs, Bank of America and JP Morgan
early on Tuesday priced the overnight sale
of 26.72m Class A shares in Blue Owl at
US$14.50, a 6% discount to Monday’s
US$15.42 close. The shares closed
Tuesday’s session at US$15.91, comfortably
1
STARTû!FTERûTREATINGûSIXûPATIENTSûSOûFARûTWOû
of them are cancer-free after a single
infusion of Adicet’s CAR-T treatment at the
lowest dose.
The drug has been well-tolerated, with
no cases so far of cytokine release
syndrome (a potentially deadly side effect
of CAR-T therapy).
The ASH Meeting is being held at the
Georgia World Congress Center in Atlanta.
The event opened on Saturday and is and
running until Tuesday, December 14.
Visitors can attend in person or virtually.
Adicet presented its Phase I results at
ASH on Sunday.
AGREE REALTY DIPS ON STOCK SALE
Triple net lease REIT AGREE REALTY raised
US$340m from an overnight stock sale
structured as a forward sale.
Wells Fargo, Bank of America and Morgan
Stanley led the offering of 5m borrowed
Agree shares at US$68.15, a 4.4% discount
to Wednesday’s closing price of US$71.34.
Agree shares dipped below the offering
price in Thursday’s aftermarket, closing at
US$68.05.
to US$19.70.
Relmada, whose stock price is down
38.5% this year, is using the proceeds to
complete two Phase III trials for its lead
product candidate, REL-1017
(esmethadone).
The drug is a rapidly acting oral agent to
treat major depression. Clinical trials have
been a bit slower to develop.
Relmada hoped to have top-line results
FROMûBOTHûSTUDIESûBYûEARLYûNEXTûYEARû!FTERû
a careful patient selection process, the data
reads were pushed into H2 2022.
Relmada has a good reason to be careful.
Its drug works by activating receptors in
the brain that are also targets for
psychedelic drugs.
CANADA
MAGNET FORENSICS OPENS EXIT
FOR US PARTNER
Cybercrime software provider MAGNET
FORENSICS raised C$74.4m (US$58.5m) from
a bought deal offering that provided an
EXITûFORû)N
4ELû)14 ûITSûLONGTIMEû53û
above the offering price. The forward sale structure has become strategic partner.
!SSUMINGûEXERCISEûOFûTHEûGREENSHOEû
NBSH Acquisition, an entity associated
with Neuberger, will sell a 2.2% stake via
the offering (or 30.7m shares in total). It
will remain the largest Blue Owl
shareholder via its separate ownership of
Class C shares (Blue Owl has four share
classes).
There is a 90-day lock-up on further
sales.
4HEûSALEûCAMEûAûLITTLEûMOREûTHANûSIXû
months after May’s NYSE debut of Blue
Owl.
76
standard for acquisitive REITs looking to
raise contingent capital but defer stock
dilution until they need the money.
Agree can physically settle arrangement
for cash or net-share settle at any time over
THEûNEXTûûMONTHSû!SûCOUNTERPARTIESûTOû
the forward sale, the underwriting banks
are responsible for paying Agree’s monthly
dividend (currently 22 cents a share) until
the forward is settled.
The REIT bought 226 retail properties
WORTHû53BNûINûTHEûlRSTûNINEûMONTHSûOFû
û)TûEXPECTSûTOûSPENDûBETWEENû
International Financing Review December 11 2021
A syndicate led by Canaccord Genuity and
BMO Capital Markets priced an all-secondary
offering of 2.46m shares late on Tuesday at
C$30.30, a 6.5% discount to the C$32.40
closing price on the Toronto Stock
%XCHANGEû438 
Magnet shares closed above issue on
Wednesday at C$30.38 a share.
4HEûOFFERINGûWASû-AGNETSûlRSTûSTOCKû
sale since raising C$115m from its TSX IPO
in late April. The same banks, though in
reverse order, sold 6.8m shares at C$17.00
apiece.
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EQUITY-LINKED DEALS WEEK ENDING: 10/12/2021

Issuer Country Date Amount Greenshoe Tenor Coupon/YTM % Premium (%) Bookrunner(s)
Chemtrade Logistics Fund Canada 06/12/2021 C$120.0m C$18.0m 5.75y 6.25 35.0 RBC CM, National Bank, BMO CM,
CIBC CM, Scotia CM, TD Securities
Hopson Hong Kong 09/12/2021 US$250m — 363 days 8.00 17.5 HSBC
Confluent US 08/12/2021 US$1,000m US$100m 5y 0.00 45.0 MS, JPM, GS, BofA, Citigroup, Wells Fargo,
Barclays, CS, UBS, DB
Lucid Group US 09/12/2021 US$1,750m US$262.5m 5y 6.25 35.0 Citigroup, BofA
Patrick Industries US 07/12/2021 US$225m US$33.75m 7y 1.75 30.0 BofA, Truist, Wells Fargo
TechTarget US 08/12/2021 US$360m US$54m 5y 6.25 35.0 JPM, GS, DB

Magnet founder Jad Sabila and its CEO
Adam Belsher led last week’s stock sale,
each providing 900,000 subordinate voting
shares sold in the offering. IQT, a US-based
NON
PROlTûENTITYûTHATûINVESTSûINû
Adding to those funding costs, Lucid
shares fell 18.3% to US$36.52 over the
Thursday marketing, suggesting a more
hedge-fund oriented placement than had
been hoped.
ABOUTûPROlTABILITYûITSûABOUTûTHEûEQUITYû
cushion. The model tells you the CB is
cheap enough and you hope to attract
fundamental investors that are willing to
take a long-term view.”
technologies for protecting US national ,UCIDûWHICHûONLYûDELIVEREDûITSûlRSTû%6û Citigroup was sole adviser to Lucid on
security interests, sold all of its 431,814 auto in October, sports a market cap of the SPAC merger, while Bank of America
Magnet shares in the offering. 53BNûVALUINGûITûINûCLOSEûPROXIMITYûTOû
IQT’s stake dates back to 2015 when it the roughly US$80bn market cap of
made a strategic investment in Magnet. General Motors and Ford Motor. The lack
OFûAûDElNABLEûCREDITûSPREADûMADEûTHATû
heavy equity underpinning a key selling
point of the CBs.
4HISûWASû,UCIDSûlRSTûCAPITALûRAISINGû
STRUCTURED EQUITY since it went public in July by merging
with former Citigroup rainmaker Michael
Klein’s Churchill Capital IV, a deal that
YEARû#"û
UNITED STATES netted it US$4.4bn of funding from the
30!#ûANDûAûRELATEDû0)0%ûlNANCING
LUCID EQUITY AIRBAG CUSHIONS (AVINGûDELIVEREDûITSûlRSTû,UCIDû!IRû
and Guggenheim Securities advised
Churchill. Citigroup and Bank of America
were co-placements agents on the
US$2.5bn PIPE priced at US$15.00.
CONFLUENT PIVOTS FROM IPO TO
US$1bn CB
$ATAûINFRASTRUCTUREûSOFTWAREûlRMû
CONFLUENT LAUNCHEDûAû53BNûlVE
ahead of the US market open Wednesday
at price talk of a 0%–0.5% coupon and
37.5%–42.5% conversion premium.
US$1.75bn CB LUXURYû%6ûTOûCUSTOMERSûINû/CTOBERûTHEû By mid-afternoon, that talk was revised
company lost US$303m in the third TOûûlXEDûUPûnûANDûPRICINGû
With a market cap now rivalling legacy
automakers, EV start-up LUCID took
advantage of its recent stock rally driven
by EV mania to raise US$1.75bn from the
SALEûOFûlVE
YEARûCONVERTIBLEûBONDS
Citigroup and Bank of America launched the CB
issue late on Wednesday at a 0.75%–1.25%
coupon and 50%–55% conversion premium,
and marketed the deal for one day on
Thursday. They priced the CBs late that
evening at a 1.25% coupon and 50% conversion
premium, the investor-friendly ends of talk.
quarter on a non-GAAP Ebitda basis,
though it has 17,000 reservations and is
targeting production of 20,000 units in
2022 and 90,000 in 2023.
The money-losing/high-growth
PROlLEûSAWûTHEûBANKSûMARKETûTHEû#"Sû
at a credit spread and implied vol of
L+350bp and 48.
“This security is not dissimilar to high-
growth tech issuance we have seen
recently,” said one banker working on the
Lucid CB. “Theoretical valuation is not
lNALISEDûATûTHEûûCOUPONûUPûûTHEû
aggressive end of already tightened talk.
“There are a lot of long-only investors
that are seizing upon the opportunity to
buy in at lower stock prices,” said one
banker. “The opportunity created by the
sell-off in tech stocks is offset by losses
THEYûHAVEûEXPERIENCEDûONûEXISTINGû
positions.”
Morgan Stanley, Goldman Sachs, Bank of
America and Citigroup led a syndicate of 10
banks.

GLOBAL CONVERTIBLE OFFERINGS GLOBAL CONVERTIBLE OFFERINGS – EMEA GLOBAL CONVERTIBLE OFFERINGS – US
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 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 US$(m) (%)

1 Goldman Sachs 11 2,392.25 11.5 1 Goldman Sachs 61 12,737.62 17.2

1 Goldman Sachs 88 21,802.52 12.9
2 Citigroup 11 2,233.39 10.8 2 JP Morgan 56 10,713.04 14.5
2 JP Morgan 78 15,872.40 9.4
3 HSBC 12 2,186.06 10.5 3 Morgan Stanley 42 9,110.19 12.3
3 Bank of America 78 15,290.07 9.1
4 Morgan Stanley 6 1,760.96 8.5 4 Bank of America 59 9,047.68 12.2
4 Morgan Stanley 63 13,780.33 8.2
5 BNP Paribas 14 1,596.50 7.7 5 Citigroup 29 6,618.10 8.9
5 Citigroup 47 11,662.23 6.9
6 Bank of America 11 1,518.73 7.3 6 Barclays 22 3,566.35 4.8
6 CICC 17 7,458.05 4.4
7 JP Morgan 11 1,402.93 6.8 7 Jefferies 14 3,152.43 4.3
7 Barclays 32 5,543.61 3.3
8 UniCredit 6 936.13 4.5 8 Wells Fargo 21 2,376.88 3.2
8 Huatai Securities 14 5,488.50 3.3
9 Barclays 8 915.21 4.4 9 Credit Suisse 16 2,116.63 2.9
9 Guotai Junan Secs 10 4,891.65 2.9
10 Deutsche Bank 4 727.53 3.5 10 RBC 12 1,758.53 2.4
10 Credit Suisse 28 4,434.24 2.6
Total 48 20,726.36 Total 137 74,023.06
Total 393 168,391.56
Including exchangeables and domestic offerings. Including exchangeables.
Source: Refinitiv SDC code: C9 Source: Refinitiv SDC code: C09d Source: Refinitiv SDC code: C9a

78 International Financing Review December 11 2021


“We have had a lot of go, no-go calls
with companies in recent weeks,” said the
banker. “Issuers have been waiting for the
green light.”
After rallying 6.3% to US$73.09 Tuesday
and 42, the former a bit wider than on
recent CBs and the latter a bit higher.
#ONmUENTûISûTHEûLATESTûBENElCIARYûOFûAû
reopening CB market. 3D animation
software provider Unity Software, a late
STRUCTURED EQUITY
The current window is not as
euphoric as the February-March
period, when Peloton Interactive
achieved a 65% conversion premium
on its 0%, only to be outdone by
AHEADûOFûTHEû#"SûLAUNCHû#ONmUENTûSHARESû
fell 5.6% to US$69.01 on Wednesday while
the CB was marketed. That compares to
the above range US$36.00 price on
#ONmUENTSû53Mû*UNEû)0/û4HEû)0/û
was structured with staggered insider lock-
2020 IPO, last month raised US$1.5bn at a
0% coupon and 57.5% premium to its share
price at the time, and buy-now-pay-later
PROVIDERû!FlRMû53BNûATûTHEûSAMEûû
coupon and an equally punchy 55%
premium.
%XPEDIAûû û%NPHASEû%NERGYû
(0%, 70%), Spotify Technology (0%, 70%)
and Twitter (0%, 67.5%), but not too far
away.
The CB market, it would seem, is ending
the year where it had begun.
UPSûTWOûOFûTHREEûSINCEûHAVINGûEXPIREDû
WITHûTHEûTHIRDû
DAYûEXPIRINGûLATERûTHISû ALL INTERNATIONAL ASIAN CONVERTIBLES ALL INTERNATIONAL ASIAN CONVERTIBLES
month. BOOKRUNNERS: 1/1/2021 TO DATE (EXCLUDING JAPAN)
#ONmUENTûHADûTRADEDûASûHIGHûASû53û Managing No of Total Share BOOKRUNNERS: 1/1/2021 TO DATE
in early November before a 12%-plus sell-off bank or group issues US$(m) (%)
Managing No of Total Share
in software stocks and roughly 6% decline in 1 Goldman Sachs 16 6,672.65 21.3 bank or group issues US$(m) (%)
US CBs, as measured by the Global X Cloud 2 Bank of America 7 3,834.10 12.2 1 Goldman Sachs 11 4,981.73 21.0
#OMPUTINGû%4&ûANDûTHEû2ElNITIVûUNHEDGEDû 3 JP Morgan 7 2,782.22 8.9 2 Bank of America 4 2,762.99 11.6
53û#"û)NDEXû4HEûFORMERûISûSTILLûDOWNûNEARLYû 4 Morgan Stanley 14 2,621.68 8.4 3 JP Morgan 6 2,643.26 11.1
8% on a one-month basis. 5 UBS 12 2,181.38 7.0 4 Morgan Stanley 10 2,216.80 9.3
#ONmUENTûSPENTûAûPORTIONûOFûTHEû 6 Daiwa Securities 8 1,908.42 6.1 5 UBS 11 1,996.86 8.4
proceeds on a capped call, off-putting 7 Credit Suisse 9 1,774.32 5.7 6 Credit Suisse 8 1,710.74 7.2
earnings dilution up to US$100.06 share 8 Nomura 5 1,515.65 4.8 7 HSBC 7 1,469.32 6.2
price though investors will be eligible to 9 HSBC 7 1,469.32 4.7 8 Citigroup 4 1,071.19 4.5
convert at prices above, as warrants sold 10 Citigroup 4 1,071.19 3.4 9 CICC 6 1,020.53 4.3
on the capped call were struck at a 100% Total 62 31,318.03 10 Bank of China 2 844.70 3.6
premium to reference. Including exchangeables. Total 44 23,719.78
High top-line growth and growing losses Including exchangeables.
led to a credit and vol pairing of L+300bp Source: Refinitiv SDC code: M10 Source: Refinitiv SDC code: M11

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 INTERNATIONAL FINANCING REVIEW INDEX

ABN AMRO 27 ENN Group 17 Pegasus Entrepreneurial Acquisition Company Europe 8

abrdn 4 euNetworks 57 Pemex 50
Adicet Bio 73 European Financial Stability Facility 21 Pepper Money 36
Agree Realty 73 European Stability Mechanism 21 Pepper Sparkz 4 36
AIT Worldwide 60 Evolution Healthcare 53 Perion Network 69
Alsea 50 FabIndia 65 Petro
Rabigh, 70
Altarea 68 Fairbanks Morse Defense 59 PGIM Loan Originator Manager 33
American Express Global Business Travel 59 FIL Investments International 33 Ping An International Financial Leasing 52
AMP Bank 29 Finatext Holdings 65 Plaskolite 61
Anticimex 60 FleetCor Technologies 58 Pod Point 70
APx Acquisition 76 Focus Media Information Technology 64 PPL 58
Aroundtown 27 Forbion European Acquisition 76 QIC 53
Asymchem Laboratories (Tianjin) 65 France 23 Qingci Games 64
Aveanna Healthcare 59 Gaming and Leisure Properties 71 RateGain Travel Technologies 65
Bakkafrost 55 Genesis Growth Tech Acquisition 76 RealPage 58
Banco de Chile 50 GoTo 17 REC 53
Bank for International Settlements 12 Greece 21 Recruit Holdings 66
Bank Hapoalim 68 Greenland Holding Group 46 REC Solar 53
Bank of America 15 Grupa Pracuj 69 Recycling Technologies Group 71
Bank of Commerce 67 Gushengtang (Cayman) 64 Reliance Industries 53
Bank of France 12 Hangzhou SF Intra-City Industrial 64 Relmada Therapeutics 74
Bank of Nova Scotia 30 Harvey Norman 52 Renewable Japan 66
Bank of Queensland 30 HashiCorp 74 Resimac 35
Bapcor 52 Hengda Real Estate Group 6 Royal Dutch Shell 13
Basecorp 37 Hexagon Composites 56 Samsara 77
Bavarian Nordic 68 Hilton Food 57 Sanofi 27
Bayerische Landesbank 30 Hopson Development 63 Santander 15
Belgium 23 Hozon Auto 7 Santos 17
BenevolentAI 69 Huabao International 64 Saudi Tadawul Group 70
BentallGreenOak 53 Hungary 47 Saudi Telecom Company 69
Berlin Packaging 59 Hyundai Engineering 67 Schroder Pamfleet 53
Blue Owl Capital 73 Ideagen 70 Securitas 56
Bluestone 36, 37 Inmarsat 61 SenseTime Group 2
BPCE 29 Inovie 62 Sevita 58
Brook + Whittle 60 Ireland 23 Shimao Group Holdings 63
Brookfield 25 Istanbul 47 Silvergate Capital 72
Cades 23 Jahez 70 Sirnaomics 65
Camping World 59 Jefferies Financial Group 18 Skillz 31
Canada Pension Plan Investment Board 54 Jiangsu Recbio Technology 64 Smart Start 60
Canadian Imperial Bank of Commerce 30 JL Mag Rare-Earth 7 Societe Generale 12
Canbridge Pharmaceuticals 64 JP Morgan 15 Southern Cross Austereo 52
CapitaLand Integrated Commercial Trust 67 Kaisa Group Holdings 7, 46 Southwestern Energy Company 32
Cast & Crew 60 Kakao Bank 67 SS&C Technologies 58
Centuria Industrial REIT 27 Karnov 56 SSE 13
Chainwin Biotech & Agrotech (Cayman Islands) 54 Kohoku Kogyo 66 Starwood Property Trust 72
Chervon Holdings 65 Latvia 45 Sunshine 100 China Holdings 46
Chicago Atlantic Real Estate Finance 71 Leapmotor 7 Sunsuper 53
China Aoyuan Group 47 LG Energy Solution 7, 67 Swiss National Bank 12
China Evergrande Group 6, 46 LifeHealthcare 52 Telecom Italia 20
China Merchants Financial Leasing (Hong Kong) Holding 52 Link and Motivation 66 ThomasLloyd Energy Impact Fund 70
Circet 62 Logan Group 63 Tianji Holding 6
Citigroup 15 LSF11 Boson Investments S.a r.l. 33 Tiki 3
Clinigen 61 Lucid 75 T-Mobile Netherlands 32
Cloudmed 59 Magnet Forensics 74 Top Glove 67
CMB International Leasing Management 52 MeDirect Bank (Malta) 33 Traveloka 17
Cologix 34 Medline Industries 51 UBS 12
Contemporary Amperex Technology 7 Merck 23 UniCredit 11
Co-operative Bank 29 Mercuria 57 US Radiology Specialists 60
Corporate Services Company 58 MetroNet 60 Verra Mobility 72
Covanta 51 Mirae Asset Finance (Vietnam) 55 VinFast 2, 7
Cowen 59 Mister Car Wash 59 Vinfast Trading and Production 54
CPI Property Group 55 Mobileye 75 Vingroup 54
Credit Suisse 12 Natixis 12 VNG 3
Data Patterns 65 Navi Technologies 65 Volkswagen 56
Davis-Standard 60 Net Protections Holdings 65 Vonovia 68
Delegat Group 54 Newmont 24 VT5 Acquisition Company 8
Denmark 8 NextEra Energy 25 WCG Purchaser 59
Diversified Energy 57 Norva24 69 Western Digital 24
Dollar General 58 NSI 56 WeWork 32
Dunelm 57 NTT Finance 25 WideOpenWest 51
Ebos Group 52, 67 Nu 9, 71 WM Motor 7
Ecolab 23 Odyssey Acquisition 69 Wuxi Construction and Development Investment 46
Electrolux 56 Olam International 54 Yonghe Medical 64
Emerging Markets Horizon 76 Olam Treasury 54 Zambia 47
Enechange 66 Orange 26 Zeal Co 66
Energy Transfer 72 Parkson Retail Group 52 Zur Rose 70

80 International Financing Review December 11 2021

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