Deliveroo Finds Early Demand for £1.6Bn IPO But

MARCH 27 2021 ISSUE 2376 www.ifre.com

Deliveroo ﬁnds early demand for £1.6bn IPO but some investors walk away on ESG concerns

Full-steam ahead for Chinese listings in the US despite delisting threat and heavy sell-off

Rollover season: Turkish bank loan reﬁs to survive Erdogan-induced lira turmoil

EQUITIES BONDS PEOPLE & MARKETS LOANS SPAC feeding LSEG builds an Day off or €1.45bn loan frenzy calms instant curve US$20k? Banks allows Belron to down – for across three react to burnout keep the divis now currencies concerns coming 02 08 10 10

1 IFR Cover 2376.indd 1 26/03/2021 19:39:04 OUR DATA COMES DOWN TO TWO SIMPLE THINGS. WHAT WE DO WITH IT. AND WHAT YOU ACHIEVE WITH IT.

Make better business decisions with Refinitiv’s filtered, cleaned, integrated data sets. refinitiv.com Upfront OPINION INTERNATIONAL FINANCING REVIEW

Too much, too soon Kiwi conservation

lobally, equity capital market issuance is running at a OWûMUCHûCAPITALûISûENOUGH û)TûISûAûQUESTIONû.EWû Gremarkable rate, with the US and Europe both close to (Zealand’s banking regulator posed two years ago before record quarters for issuance. it introduced world-beating capital requirements. It now has European IPO volumes so far this year are up the small another one to ponder: what if it is too much? matter of 1,400% on the same period last year, while in the 4HEû2ESERVEû"ANKûOFû.EWû:EALANDûRAISEDûCAPITALû 53ûPROCEEDSûAREûABOVEû53BNûFORûTHEûlRSTûTIMEûSINCEûTHEû requirements for major banks in late 2019 to a hefty 18%, fourth quarter of 1999. with 16% to come in the form of Tier 1 capital – the toughest Even hardening attitudes to Chinese listings in the US are capital rules in the world. The rules are designed to ensure NOTûSTEMMINGûTHEûmOWûOFûCOMPANIESûHEADINGûTOû.EWû9ORKû the local banking system could stand on its own feet in the from China. event of a crisis. That concept may be tested sooner than Add the SPAC frenzy, where the record for annual issuance intended. set in 2020 at US$80bn has already been obliterated with 7ESTPACû"ANKINGû#ORP ûTHEû!USSIEûPARENTûOFû.EWû:EALANDSû more than US$90bn now raised in 2021, and it is little fourth biggest lender, is considering a spin-off of its Kiwi unit wonder that the poor sods working as juniors in investment as a result of the onerous capital rules. A local listing appears banking teams are suffering. the most likely outcome, potentially setting a template as the “At the end of the year we go around and see the banks to rest of the big four Australian banks consider what to do with talk about next year’s pipeline,” said an investor who covers their Kiwi subsidiaries. %UROPEûANDûTHEû53ûh.OûONEûKNEWûITûWOULDûBEûLIKEûTHISv It will take time for the implications of that move to It is little wonder then that after a strong start to the year BECOMEûCLEARû/NûTHEûONEûHAND ûITûWILLûREDUCEû.EWû:EALANDSû performance-wise, March has delivered as many misses as hits. exposure in the event of an Australian banking crisis. But .EARLYûALLûOFûLASTûWEEKSû30!#SûINûTHEû53ûWEREûTRADINGûUNDERû without the support of bigger Australian parents, the Kiwi WATER ûFORûEXAMPLE ûWHILEûINû4HURSDAYSûSESSIONûALONE ûlVEû)0/Sû banks would have to fund themselves with lower credit debuted in the red even after some downsized their offerings and ratings and rely more on the local capital markets, priced them at the bottom of their marketing range or below. potentially raising funding costs – and therefore interest It was a similar story in London, where Trustpilot’s IPO was rates charged to customers. upsized and priced at the top of the range only to trade below 7ESTPACûITSELFûSPELLEDûOUTûTHEûRISKSûOFûSUCHûANûAPPROACHûINû issue price. ITSûADMITTEDLYûSELF SERVING ûRESPONSEûTOûTHEû2".:ûPROPOSALSû Another bizarre sight came when fewer shares traded in newly in 2019. “Options that would come into consideration LISTEDû6ANTAGEû4OWERSûAûõBNûHOTû)0/ûTHATûHASûTRADEDûmAT ûTHANûINû include shrinking or exiting parts of the portfolio, &INLANDSû.IGHTINGALEû(EALTHûAûõMû)0/ ûONû-ONDAY demerging . . . or selling the business. This could limit Issuers are still securing decent valuations, though, and some AVAILABLEûCREDITûINû.EWû:EALANDûANDûWEIGHûONûECONOMICû PUNCHYûDEALSûAREûGETTINGûDONEûnûMOSTûNOTABLYû)0/ mOPû7E7ORKû growth,” it wrote. RETURNINGûTOû%#-ûTHROUGHûITûALMOSTûGOESûWITHOUTûSAYING ûAû30!# .EWû:EALANDSûREGULATORSûEVIDENTLYûDISAGREEDûWITHûTHATû ECM bankers who had painted that company’s rejection by assessment, setting rules that are now challenging Aussie the public equity markets as an example of the system owners to rethink their support. working were a little reticent last week. In the long run, greater local ownership of the Kiwi All eyes in the coming week in Europe will be on the banking system could be a positive for the domestic performance of Deliveroo’s £1.6bn IPO. Its book was covered economy. Local listings – if it comes to that – would also in a few hours but the company is viewed with suspicion by deepen the local stock market, in turn attracting more those looking through an ESG lens and the valuation is investment and helping more local companies access punchy. It would not be a surprise to see it take a similarly capital. counter-intuitive trajectory as Trustpilot. (AVINGûWEATHEREDûTHEû#OVID ûPANDEMICûFARûBETTERû So is the pace of issuance about to calm down? The answer THANûITSûPEERS û.EWû:EALANDûISûINûAûPOSITIONûOFûSTRENGTH û is yes. But only because an early Easter is on the horizon. The with a solid economy and a strong currency that will help feeling is that the holidays are exactly what is needed to give LOCALûBANKSûRAISEûCAPITALûONûTHEIRûOWNû)Fû.EWû:EALANDSû some time to pause, contemplate and digest an intense banking sector is to cut the cord, this may a good time to period for all involved in ECM. Because then we go again. do it.

International Financing Review March 27 2021 1

2 IFR Upfront 2376 p1.indd 1 26/03/2021 20:15:56 Top news China-US listings press ahead 04 US IPOs surge in Q1 04 Banks survive Turkish turmoil 06 Deliveroo ﬁnds early demand for £1.6bn IPO amid ESG debate

Equities Big UK institutions rule out investments over rider employment status but dual-class structure goes unnoticed

BY LUCY RAITANO, OWEN WILD THEûDISCUSSIONûmEXIBLEûONûWHOûWASû the self-employed status of Deliveroo’s shareholder register to be included in that group.” Deliveroo riders means they are is already packed with high- Books were covered within four Leads were conscious of not not guaranteed the minimum quality institutional investors, hours on Monday as food tying up too much of the wage, sick pay or holidays, INCLUDINGû&IDELITY û4û2OWEû0RICE û delivery company DELIVEROO transaction with only a few which it sees as a social issue in Index Ventures, DST Global, began collecting orders from investors, because while the ESG terms. Greenoaks Capital, while the institutions and its customers price range values Deliveroo as “We won’t be investing in competition for anchor positions for an up to £1.6bn London IPO. the largest company to list in Deliveroo for a number of shows many more are keen to Deliveroo had investors London in years – since AIB in reasons, but that is one of them,” join them. competing for the chance to be 2017 (a dual-listing in Dublin) or he said. “The focus on the S in ESG is in an anchor tranche right up Glencore in 2011 (a pure LSE Other UK investors expressed real, so all our orders will go until bookbuilding began – with mOAT ûnûITûISûONLYûTHEûBIGGESTû)0/û similar concerns during the through a committee for three undisclosed investors since The Hut Group’s £1.88bn week, with ongoing legal cases approval. That is not unusual lNALLYûSELECTEDûTOûRECEIVEûûOFû mOATûLASTû3EPTEMBER challenging the riders’ status though, we do it all the time, the IPO between them. This was Yet as the week progressed a making this a live issue. Last such as on emerging market in contrast to recent European number of UK blue-chip month the UK Supreme Court transactions,” said an investor IPOs which have been structured investors, including Aberdeen ruled Uber drivers are at a major asset management with cornerstone investors Standard, Aviva and M&G, ruled employees, not self-employed. lRMûh4HEû5BERûRULINGûFOCUSESû locking in orders at an earlier out investing in the company, Deliveroo emphasises that the the mind – and it is an easy stage. citing ESG concerns. status of riders has been tested deal to pick on because it is “Each of the three have been in UK courts previously and expensive.” cornerstones on large European BUYERS’ STRIKE? insisted that riders appreciate Other investors made the IPOs in the last year,” a banker David Cumming, chief THEûmEXIBILITY same point: Deliveroo, which is involved in the IPO said. “The INVESTMENTûOFlCERûATû!VIVA ûTOLDû Bankers and other investors seeking a £7.6bn–£8.8bn market preference for anchors was to keep the BBC’s Today programme that played down the concern. capitalisation, is an easy deal to SPAC feeding frenzy calms down – for now Equities After an extraordinary first quarter, investor pushback intensifies and regulators ask questions

BY STEPHEN LACEY, facilitated 81 new listings with a the most downside-protected real estate mogul and serial ANTHONY HUGHES, OWEN WILD combined equity valuation at product in our marketplace.” SPAC entrepreneur. In a announcement of US$205.1bn. A long-time champion of the televised interview last week, he The explosion of special purpose SPAC IPO issuance – or the product, Citigroup has helped derisively stated that “if you can acquisition companies has left FRONTûENDûnûHASûBENElTEDûFROMû facilitate 71 SPAC IPOs in 2021 walk, you can do a SPAC”. an indelible impression on the historically low interest rates with apportioned credit totalling So it is perhaps not surprising investment banking landscape amid government stimulus and US$14.4bn, a Wall Street high there are signs that the asset class that will reverberate for years. investor desire for a safe haven 16% of all activity. Goldman is cooling, partially from the sheer !SûTHEûlRSTûQUARTERûCOMESûTOûAû of downside protection provided Sachs (US$10.5bn), Credit Suisse velocity of transactions, but also close, some investment banks by blank cheque companies. (US$8.3bn), Cantor (US$6.7bn) because of growing concerns have already booked ECM “When the pandemic hit and and Jefferies (US$5.8bn) have among regulators and other underwriting fees they would investors took 20% hits to their also been highly active. market participants. expect to earn in a year – largely portfolios, they really grew to SPACs typically pay banks 5.5% Of the 20 new SPACs that priced because of SPAC listings. appreciate the downside protection for their fundraising, with one- last week, 17 closed on Thursday The numbers are staggering. US- of SPACs,” said Paul Abrahimzadeh, third paid at IPO and the balance trading below the US$10 offer listed SPACs have raised US$90.5bn co-head of North America ECM at upon consummation of a merger. price and another two at offer. Yes, across 293 IPOs so far this year, Citigroup. “In addition to those investors would be made DWARlNGûTHEûANNUALûRECORDûOFû optionality from a merger, SPACs SAND IN THE ENGINE whole upon redemption and we US$80bn raised in all of 2020, provide incremental yield from The attitude to the product by are talking about a few cents, but a ACCORDINGûTOû2ElNITIVûANDû)&2ûDATA û fractional warrants and proceeds some in the market was made matter of weeks ago everything while SPAC mergers have invested in US Treasuries. SPACs are clear by Barry Sternlicht, the traded strongly up.

2 International Financing Review March 27 2021

3 IFR Top news 2376 p2-12.indd 2 26/03/2021 20:02:07 For daily news stories @ visit www.ifre.com LSEG’s triple 08 Belron keeps the divis coming 10 Spelthorne raids reserves 12

walk away from because of the have been much loved where stocks are eligible for PANDEMIC PROFITABILITY aggressive valuation. businesses that offer real &43%ûINDICES The company is raising £1bn Goldman Sachs and JP Morgan growth. Six months ago they At the time the company said through the IPO for future are the global coordinators on were core to everyone’s its share structure would growth and secondary selling $ELIVEROOSûmOAT ûANDûJOINTû portfolio.” “closely align with the will be £500m–£590m based on bookrunners with Bank of Deliveroo’s deal comes with a recommendations set out the 390p–460p price range. America, Citigroup, Jefferies and £50m retail offering. Interested within the Lord Hill Review” There is also a 10% primary Numis. They are earning a base customers are asked to create an and quoted the review’s GREENSHOEû4HEûFREE mOATûWILLûBEû fee of 166.25bp. account with UK digital endorsement of DCSS. around 20%. Unsurprisingly, considering investment platform However, if Hill’s Retail orders are capped at the Deliveroo app offers an PrimaryBid through the recommendations are adopted £1,000 and UK customers option to tip the rider once the Deliveroo app. in short order, as expected, opening the app last week were order has been received, there Deliveroo will still not be able welcomed with messages of is also an incentive fee of LOWER CLASS to move to the premium “Interested in investing in 108.75bp. A dual-class share structure segment as the review proposes Deliveroo?” and “IPO now live”. A banker involved said the (DCSS) grants CEO and that weighted voting should $ELIVEROOûRECORDEDûITSûlRSTû deal would appeal to some and founder Will Shu 20 times the only be an option to block a TWOûQUARTERSûOFûPROlTABILITYûONû not others, as normal, and was voting power of other takeover or to protect founders an adjusted Ebitda basis in the covered at the maximum shareholders for the next FROMûBEINGûlRED ûSUCHûASûTHEû second and third quarters of valuation mid-morning on three years. His 6.5% stake arrangement for THG’s 2020, and an adjusted Ebitda Monday with orders continuing will hold 57.5% of the votes Matthew Moulding. loss for the full year of £11.8m to come in. Bookbuilding will with no limits on when they This matters little to IPO in 2020, a vast improvement on wrap up on Tuesday this week, can be used, meaning the investors who are not driven by the £226.9m Ebitda loss in and trading is due for the next company will be restricted to whether a stock will enter an 2019. day. a standard listing in London index or not. The company said it believed 3IGNIlCANTLYûANûEQUITYû for three years. “We are pragmatic on DCSS, this proved its business model syndicate banker not involved Deliveroo said it would list in but do like a sunset clause,” said COULDûBEûPROlTABLEûATûSCALE ûBUTû said that those coming out London immediately after the THEûlRSTûINVESTOR the challenge for investors was against Deliveroo rarely feature UK listing review, chaired by “So long as it is clear, upfront, assessing whether this in IPOs. “We are not involved, former EU commissioner there is a rationale to it and trajectory could be maintained but have had investors telling us Jonathan Hill, proposed rule doesn’t last forever then [dual- as restaurants reopened, what an exciting business changes to allow a version of CLASSûSHARESûARE=ûlNE vûSAIDûTHEû beginning from April 12 in its Deliveroo is,” he said. “[Its peers] DCSS on the premium segment, second investor. home market of the UK.

“The pullback in performance is a more normal market. If you how quickly they are asked to way IPO in 2019, an outcome ECM we have seen lately was almost have a SPAC that is just holding make decisions. “It is ridiculous,” bankers have held up as evidence inevitable,” said Patrick Galley, cash and is non-operational, it is one long-only investor at a major of market discipline. CEO and CIO of RiverNorth irrational to pay a high premium.” fund manager said. “[PIPEs] clearly Although the SPAC merger Capital Management, a SPAC And it is true that the market give us less time and information process worked (apparently) for specialist investor with US$4.9bn went through similar indigestion to make up our minds on a new WeWork, there is also growing under management. “To me, this late last year, so perhaps investor listing. I didn’t believe we would investor pushback to valuations pushback is temporary. ever agree to that and we are at which SPACs are merging with SPAC AND NEW ISSUE ETF Only the US$400m Dragoneer doing it in spades.” targets. (US$25 PAR VALUE) Investment Group-backed Questions around whether “There are still some seriously 34 DRAGONEER GROWTH OPPORTUNITIES SPACs allow unsuitable companies good opportunities but III 32 closed up, with a one-cent into public markets were brought valuations are ridiculous,” said gain on Thursday. into focus last week by news that the fund manager. 30 The front-end funding is WEWORK, the SoftBank-backed Then there is the spectre of faltering, at least in part, because SHARED OFlCEûSPACEûPROVIDER ûHADû regulators clamping down on 28 of investor pushback to back-end agreed to go public through a loose practices that SPACs have merger funding – via so-called US$9bn tie-up with BOWX encouraged. Reuters reported last 26 private investments in public ACQUISITION. In addition to the week that the SEC had requested

24 equity. PIPEs are funded by sticky, US$483m of proceeds held in trust, banks provide information on long-only money and transition BowX raised US$800m from a PIPE their dealings with SPACs, noting 22 ownership from IPO investors supported by Sternlicht’s Starwood that those requests were sent by such as RiverNorth to long-term #APITALû'ROUPûANDû&IDELITYû the SEC’s enforcement division. 20 traditional investors, providing an Investments, among others. Investor pushback on the front important check on valuations. WeWork, of course, was and back end, combined with 16/01/21 16/03/21 16/02/21 16/12/20 And those end-investors are not unceremoniously rejected when it increased regulatory scrutiny, may Source: Reﬁnitiv particularly happy, especially with tried to go public through a regular- warrant a pause for breath.

International Financing Review March 27 2021 3

3 IFR Top news 2376 p2-12.indd 3 26/03/2021 20:02:08 Top news Chinese US listings press ahead Equities Top ride-hailing company joins US queue even as SEC turns up pressure

BY FIONA LAU 36% drop for Tencent Music Chinese companies going leaning towards the latter at Entertainment to a 6% fall for public in the US this year, the moment, said people A heavy sell-off in US-listed Alibaba Group Holding over although the amount of with knowledge of the Chinese stocks in response to Wednesday and Thursday’s money raised will be less than matter, as the US offers more rules that could force mass sessions. that in 2014,” said Jay Ritter, a mEXIBILITYûONûTHEûTIMINGûANDû delistings is testing the Zhihu, China’s equivalent lNANCEûPROFESSORûATûTHEû size of the offering. The US determination of Chinese of Quora, pressed ahead 5NIVERSITYûOFû&LORIDAûWHOû also has a deeper pool of issuers to go public in the Big despite the turmoil – studies the IPO market. liquidity and closely Apple. underlining the allure of the At least 14 Chinese comparable stocks such as Chinese question-and- US market despite the threat companies are lining up for Uber and Lyft. answer website ZHIHU ONû&RIDAYû of potential delistings. US listings to raise up to wrapped up a US$523m NYSE “Demand was strong, but US$8.9bn, according to data “China and the US )0/ ûPRICINGûTHEûmOATûATûTHEû the SEC announcement COMPILEDûBYû)&2ûSee table). could still reach an bottom of the US$9.50–$11.50 affected sentiment. There That includes the US$1.5bn– agreement over the range even though books was price sensitivity in the BNûmOATûOFû auditing issue in the were well oversubscribed and lower half of the range,” SoftBank-backed Uber-like had closed early on said a banker on the Zhihu FULL TRUCK ALLIANCE and the up next three years” Wednesday. deal, which came alongside to US$1bn listings each of The low-end pricing came a US$250m private Ant Group-backed bike- after the US Securities and placement. sharing company HELLOBIKE The potential regulatory Exchange Commission said on Including Zhihu, 19 Chinese and podcast and online radio scrutiny Didi may face in Wednesday it would begin companies have listed in the US start-up XIMALAYA. Hong Kong is also a concern implementing the Holding this year raising a combined for the company, said one of &OREIGNû#OMPANIESû US$4bn, a step up from even THE BIG ONE the people. Accountable Act, which calls last year’s rapid pace. #HINASûTOPûRIDE HAILINGûlRMû DIDA, a smaller rival of Didi, for the delisting of Chinese Thirty-two Chinese DIDI CHUXING is also pondering a lLEDûAûLISTINGûAPPLICATIONûINû companies from US bourses if companies raised a total of US listing this year which Hong Kong in October and they fail to comply with US US$12bn from US IPOs in could value it at more than was targeting a listing hearing auditing standards for three 2020, the highest number US$62bn, the valuation it in January for the US$500m years in a row. since 2011 and the highest achieved in its last private mOATû(OWEVER ûTHEûHEARINGû That triggered a plunge in fundraising volume since round. has been delayed as the Stock US-traded Chinese stocks, 2014 when e-commerce giant Didi, backed by SoftBank, Exchange of Hong Kong has sending the Nasdaq Golden Alibaba Group Holding raised Alibaba and Tencent required the company to Dragon China Index down US$25bn from a US IPO. Holdings, has considered make additional disclosures over 9% in two days. Individual “At the current pace, there both Hong Kong and the US such as details of its operating performance ranged from a will be a record number of as listing venues, but is licences in each city, said US IPOs surge in Q1 while tougher Q2 awaits Equities Rising rates cut IPO valuations but most deals survive tricky week

BY ANTHONY HUGHES Korean e-commerce company as IPO returns have evaporated. Through Thursday’s close, #OUPANGûANDû&EBRUARYSû This has coincided with the the average regular-way US The traditional US IPO US$2.47bn IPO of Blackstone- sell-off in momentum stocks IPO in 2021 had returned just business has hit a rough patch backed dating app Bumble. alongside a sharp rise in 6.5% versus the outsized 61% in the twilight of one of This tally includes seven Treasury yields that has return produced by the 2020 busiest quarters on record, companies seeking more than disproportionately hurt the IPO vintage. potentially complicating plans US$3bn before March 31 ticks IPO market and widened new for a long queue of companies over, taking the number of issue discounts. REGURGITATING hoping to go public in the offerings during the period to “We have certainly seen In Thursday’s session alone, near term. more than 80 even with the that the move in rates had an lVEû)0/Sû$IVERSEY û#RICUT û Syndicate desks are on track rise and rise of IPO impact on public market Semrush, Vizio and Lava TOûCLOSEûTHEûlRSTûQUARTERû alternatives such as direct valuations for growth Therapeutics) debuted in the having raised more than listings and SPACs. companies and that has had a red even after some US$40bn from IPOs – the most Yet hopes that this frenetic knock-on effect on IPOs,” said downsized their offerings and since the fourth quarter of PACEûOFûISSUANCEûWILLûmOWûINTOû Pawan Passi, Morgan Stanley’s priced at the bottom of their 1999 – led by this month’s the second quarter have hit a head of Americas equity marketing range or below. US$4.55bn NYSE IPO of South setback in the past few weeks syndicate. Still, all but one of the past

4 International Financing Review March 27 2021

3 IFR Top news 2376 p2-12.indd 4 26/03/2021 20:02:08 For daily news stories @ visit www.ifre.com

people familiar with the was hit after the SEC’s move. CHINA-TO-US IPOS AS OF MARCH 26 situation. After a 19% surge on its Listing date Issuer Size (US$) Change (%) Many Chinese companies trading debut on March 18, Jan 8 Gracell Biotechnologies 209m –1.1 still prefer to go to the US to Tuya shares traded below Jan 12 Kuke Music 50m –32.3 RAISEûTHEIRûGLOBALûPROlLEûANDû water at US$19.15 on Jan 12 Qilian International 25m –10.4 access the pool of technology Thursday. Jan 22 Huadi International 25m –34.8 investors. Tencent-backed Search giant BAIDU, which Jan 22 RLX Technology 1.4bn –23.5 TUYA, a technology started trading in Hong infrastructure provider Kong on Tuesday, slumped Jan 26 EZGO Technologies 11m 43.8 specialising in Internet of 22% on Nasdaq between Jan 27 Tian Ruixiang 12m 2186.8 Things devices, is one of them. Tuesday and Thursday, Feb 5 CN Energy 20m 22.3 “We are doing a global dragging down the Hong Feb 8 Baosheng Media 30m 4.1 business. The clients we are Kong secondary shares. Feb 9 Adagene 141m –6.8 serving include US brands, The new US rules also Feb 9 Cloopen 320m –9.9 European brands and even require companies to prove to Feb 9 Global Internet of People 27m –2.3 South African brands. We the regulator that they are not Mar 11 First High-School Education 75m –35.8 felt listing in the US gives us owned or controlled by an Mar 17 Jowell Global 26m –0.7 a better international image entity of a foreign government to all our customers,” said and to name any board Mar 18 Tuya 916m –8.8 *ESSIEû,IU ûCHIEFûlNANCIALû members who are Chinese Mar 19 Connect Biopharma 192m –6.1 OFlCERûATû4UYAûh4HEREûAREû #OMMUNISTû0ARTYûOFlCIALS Mar 23 Universe Pharmaceuticals Inc 25m –2.9 also a lot of smart and “I would say the Act is well Mar 26 Hywin Holdings 30m mature investors in the US expected as the then-President Mar 26 Zhihu 523m who have a very good Donald Trump signed it into Pending Sentage Holdings 22m understanding of innovative law in December. Some Pending Smart Share Global 300m-500m technology companies.” Chinese issuers have already Pending Full Truck Alliance 1.5bn–2bn changed plans for a Hong Kong Pending Ximalaya 500m–1bn POTENTIAL RISK or A-share listing while those Lingering Sino-US tensions, that still opt for a US IPO have Pending Waterdrop 500m however, have increasingly their own reasons to do so,” Pending Qiniu Cloud 500m become a potential risk for said an ECM banker. Pending Boss Zhipin 500m Chinese US listings. “Delisting may not be the Pending Hellobike 500m–1bn In Tuya’s case, the only outcome. China and the Pending Spark Education 300m–500m company priced its US$915m US could still reach an Pending Zhangmen Education 300m NYSE IPO above the agreement over the auditing Pending DMall 500m marketed price range at issue in the next three years, Pending ForU Trucking 300m–500m US$21 per share on strong and those US-listed Chinese support from investors. companies can also seek a Pending Dingdong Maicai 300m However, the stock – secondary listing in Hong Pending SheIn 700m together with many other Kong – as many of their peers Performance as of March 25 close US-listed Chinese stocks – have done,” said the banker. Source: IFR

week’s 15 IPOs priced, the AEROSPACEûlRMû,EONARDOSû53û “We have reached a turning Companies that have been sole casualty being the defence contracting unit, point over the last couple of days eyeing near-term launches are US$700m NYSE IPO of Italian Leonardo DRS. where the buyside is just puking expected to put their plans on everything back out,” one senior hold until there is some US IPO PROCEEDS IN Q1 2021 ECM banker at a bulge-bracket stabilisation of stock prices US$bn lRMûSAIDûONû4HURSDAY from hot sectors such as EVs, 3.7 10% 1.1 3% 0.8 2% h)TSûNOTûTHEûlRSTûTIMEûWEû renewables, tech and biotech. 8.0 21% have seen this either. Investors, Still, banks have found some especially the hedge funds, are success in the past month in trying to clean up their broadening the IPO market POSITIONSû/FTENûTHEûlRSTûTHINGû beyond sectors such as tech and to go is a small position they HEALTHCAREûBYûBRINGINGûTHEûlRSTû might have got in an IPO.” energy IPO (Vine Energy) and This may prove problematic airline IPO (Sun Country Airlines) for what bankers have described in years. as a “massive” pipeline of high- h3INCEûTHEûlNANCIALûCRISIS ûTHEû PROlLEûû)0/ûCANDIDATES û pipeline has never been as robust including the likes of online as it is now,” Passi said. “It has

9.4 25% 14.6 39% BROKERAGEûlRMû2OBINHOOD û never been as broad either. There payments companies Stripe and is a lot of tech and healthcare, but Tech Consumer/Retail Healthcare Industrials Financials Other Marqeta and web-hosting activity is broad based across Source: Reﬁnitiv provider Squarespace. other sectors as well.”

International Financing Review March 27 2021 5

3 IFR Top news 2376 p2-12.indd 5 26/03/2021 20:02:09 Top news Turkish banks hit rollovers amid lira turmoil

Emerging Markets Sacking of central bank governor sparks another lira sell-off

BY ROBERT HOGG, plunged 15% to a near-record withstand periods of a balance of payments crisis, SANDRINE BRADLEY low on Monday of 8.485 versus restricted market access, though the bank has pledged to the US dollar before about one-third of free liquid replenish the buffer. Turkish banks are still in a recovering later in the week assets represent receivables Data showed the bank’s good position to tackle their to 7.97, questions around from the central bank,” said outstanding swap transactions immediate short-term foreign BANKSûABILITYûTOûRElNANCEû S&P. stood at just over US$42bn by debt maturities as they head their debts have once again “Therefore, in a downside March 10. The reserves are in into loan-rollover season, come to the surface. scenario, the central bank deeply negative territory once despite the shock timing of A large portion of that could experience further the swaps are deducted. President Erdogan’s ousting of US$7.3bn of debt coming due reserves pressures and might central bank governor Naci soon comprises one-year US contemplate restraining IN MARKET Agbal on March 20, which dollar loans, which Turkish BANKSûACCESSûTOû&8ûLIQUIDITYv AKBANK, TURK EXIMBANK and sent Turkish assets into a BANKSûRElNANCEûINûTHEû The Turkish central bank’s ZIRAAT BANK have already tailspin. international syndicated loan net international reserves fell LAUNCHEDûTHEIRûRElNANCINGSû Banks’ short-term external market twice a year. to less than US$14bn as of and bankers say that so far the debts – those maturing within S&P says that banks’ ability March 19, Reuters reported. deals are going ahead on the the next year – amount to to maintain access to external Net reserves were around same terms. US$88.7bn or 12.5% of GDP, FUNDINGûISûKEYûTOûlNANCIALû US$41bn at the end of 2019. “These deals are mid- according to Capital stability in the country, and Analysts say the central bank syndication and there hasn’t Economics, with an estimated lower rollover rates could used swaps with local banks in been any pushback from US$7.3bn in debt repayments displace problems onto the 2019 and 2020 to prop up its lenders yet after last due in April and May. central bank’s balance sheet. forex reserves. The unorthodox weekend,” said one banker. 7ITHûINVESTORSûCONlDENCEû “While most Turkish banks policy spooked foreign The expectation is that in Turkey knocked as the lira HOLDûSUFlCIENTûLIQUIDûASSETSûTOû investors and raised the risk of some Asian lenders, which Ghana zeroes in on debt burden

Emerging Markets African sovereign includes zero-coupon bond as part of multi-tranche offering to ease debt servicing costs

BY SUDIP ROY “Ghana’s economy has WORKûANDûCREATEûlSCALûSPACE vû The question is whether weathered the crisis better than said a banker close to the deal, investors will be amenable to GHANA hopes to ease its onerous most of its peers, thanks to the which is expected to raise about the idea. debt burden and provide some LARGEûlSCALûSTIMULUSûTHATû US$3bn through four tranches “I doubt we would be looking BREATHINGûSPACEûFORûITSûlSCALû supported non-oil growth,” said as part of a wider US$5bn to get involved,” said Thomas accounts by issuing a multi- 4ANCREDEû&EUILLADE ûINVESTMENTû lNANCING Christiansen, head of EM tranche US dollar deal that analyst at GAM Investments. “This zero-coupon tranche is sovereign debt at Union Bancaire includes a four-year zero-coupon “However the debt trajectory part of the funding package to Privee, who added that Ghana’s bond. will be challenging to reverse, in convey that.” debt trajectory was “worrying” Zero-coupon bonds – particular given the low room Ghana (B3/B–/B) has even before the pandemic. securities that pay no interest for manoeuvre now that the increasingly turned to its “I’m not sure of the extent of but instead incentivise investors interest bill consumes around DOMESTICûMARKETûTOûlNANCEûTHEû interest in a Ghana zero- by being issued at steep half of revenue.” fallout from the pandemic. But coupon,” said Uday Patnaik, discounts and then redeemed at Unlike some other developing with its cedi-denominated head of emerging market debt at par – are most commonly nations, Ghana has avoided û&EBRUARYûûBIDûATû LGIM. printed in the Treasury market, USINGûANYûOFûTHEûOFlCIALûSECTORSû ûACCORDINGûTOû2ElNITIV û Christiansen also questioned though EM sovereigns have sold debt relief schemes, despite the and the 19.5% July 2026 at the choice of tenor for the zero- THEMûASûPARTûOFûPROJECTûlNANCEû World Bank classifying its risk of 19.24%, international funding is coupon tranche, given Ghana’s initiatives or restructured debt overall debt distress as “high”. more appealing. Its US dollar REDEMPTIONûPROlLE packages. Instead the sovereign is January 2026s, for example, “They already have quite a lot Ghana is taking a different seeking to reduce its overall WEREûBIDûATûûONû&RIDAY of bonds coming due in a few approach that seeks to tackle the interest costs, especially on its “They will get coupon relief years – 2026s, 2027s, 2029s, high cost of servicing its domestic debt. on hard currency debt [the zero- 2030s, 2032s, 2035s.” domestic debt as well as raising “The objective is to do coupon bond] and use that to Still, as Patnaik pointed out, money to counter the effects of something where there is broad- replace high-cost local debt,” the bond “presents the the coronavirus pandemic. based support to put capital to said the banker. opportunity to buy a lower

6 International Financing Review March 27 2021

3 IFR Top news 2376 p2-12.indd 6 26/03/2021 20:02:09 For daily news stories @ visit www.ifre.com

have increasingly participated a weak business only thing that would really repricing to levels from six in these facilities in recent environment for some curtail this lending now is if or nine months ago. We’re years in order to diversify time,” said a banker at an Turkey was downgraded. This not seeing the moves at this their portfolios and due to the Asian lender. would automatically mean stage akin to what we saw in better returns offered than However, as in previous that lenders’ Turkish country 2018 when Turkey and from similar-rated Asian episodes of Turkish market limits will decrease and they Argentina were getting credits, might now step back volatility, the loans will still won’t be able to lend as severely hit,” said the from lending to Turkish BEûRElNANCED ûUNDERPINNEDû much,” he said. syndicate banker. banks. by the support of core The Turkish banking sector Isbank has US$1.5bn in “We will not be able to European relationship is not facing problems in notes falling due this year get our internal approval lenders, although loans still securing funding abroad, the and another US$600m note now . . . as we see the to be launched are expected TBB banking association head issue maturing in April 2022. country is facing deepening to have a relatively modest Huseyin Aydin said on More imminently, Garanti political instability and price hike and could be Thursday. has a US$500m bond offering currency crisis and will have downsized. falling due in April. “Pricing on the deals will TOUGH WEEK VakifBank and Ziraat also TURKISH LIRA SELLS OFF probably go up maybe 10bp The bond market, on the have maturities coming due SPOT RATE AGAINST US DOLLAR to 20bp but not much. There other hand, looks out of soon, but have accessed the 8.0 is a lot of ancillary business bounds for the moment, with market already in recent that comes from these deals. a DCM syndicate banker months. 7.8 They are a well-practiced saying issuers would probably Barclays analysts, however, formula, they pay well and wait for funding levels to are not concerned about any 7.6 the side business, especially stabilise before they are immediate stress. THEûTRADEûlNANCE ûISûANû willing to print. h!SûOFûlNANCIALûYEARû 7.4 attractive prospect,” said a Ziraat’s 5.375% March 2020, all banks we cover banker at a European 2026s, for example, were bid OPERATEûWITHû&8ûLIQUIDITYû 7.2 lender. at 5.40% on March 19, that exceeds their short- “The current concerns are according to Tradeweb, but term maturities and many 7.0 on a macro level. At the have shot up to 7.04%. HAVEû&8ûLIQUIDITYûTHATû individual bank level, “Yes, it’s been a very tough COVERSûTHEIRûTOTALû&8û 6.8 Jan Feb Mar especially in the private week in terms of wholesale funding,” the Source: Reﬁnitiv sector, it’s a good story. The performance but we’re analysts said.

dollar price short-tenor it’s another matter. Just trying to the zero-coupon tranche from three amortising bonds: a seven- sovereign bond, which is calculate fair value on the bond Ghana’s perspective. year weighted average life DIFlCULTûINûTODAYSûMARKETv is a complex task. While “How much difference does EIGHT YEARûlNAL û YEARû estimating the discounted price doing a zero-coupon really AVERAGEûLIFEû YEARûlNAL ûANDû FAIR VALUE? based on the implied yield using make?” asked one. “How big 20-year average life (21-year The bet would be that as long as Ghana’s secondaries and the life will that bond be? Maybe lNAL û Ghana doesn’t default and uses span of the bond is relatively US$750m? In that case you’re The sovereign has also the opportunity to redress its straightforward, investors will probably saving about US$35m– launched a tender offer for its debt servicing costs then have to factor in the opportunity US$40m of interest payments, 7.875% 2023 up to a maximum investors buy a discounted bond cost of giving up a regular stream which doesn’t strike me as US$250m. THATûPOTENTIALLYûACCRUESûPROlTSû OFûCASHmOWûANDûANûINSTRUMENTû particularly moving the needle.” Investor calls took place from over the four years. that is likely to be illiquid. March 24. Bank of America, But while that sounds Some bankers away from the ON SCREENS Citigroup, Rand Merchant Bank, attractive in theory, in practice deal were also sceptical about A trader, meanwhile, said the Standard Bank and Standard concept sent a “bad signal, Chartered are the leads.

OPPORTUNITY KNOCKS suggesting you are so up against Ghana has also shortlisted a THE YIELD ON GHANA'S US$1bn 8.125% JANUARY 2026s it you have to issue zeroes”. group of around six banks for a % But he was pleased to see syndicated loan, according to 20 Ghana on screens. banking sources.

18 “It’s easy to pick holes in Bankers previously Ghana – highly indebted with expected the loan to total 16 THEûDElCITûGOINGûNOWHEREûnûBUTû US$800m–US$1bn, which 14 the market has been waiting for will be split between two- 12 a long time and it’s a chance to YEARûANDûlVE YEARûTRANCHESû 10 get some nice high-yielding Now they are saying the size 8 debt. People invested in local of the loan will be

6 bonds want this to happen and dependent on how hope it will, in turn, make the successful Ghana is in the 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar local market perform.” bond market. 2020 2021 As well as the zero-coupon (Additional reporting by Robert Source: Reﬁnitiv tranche, Ghana is targeting Hogg and Sandrine Bradley)

International Financing Review March 27 2021 7

3 IFR Top news 2376 p2-12.indd 7 26/03/2021 20:02:10 Top news LSEG builds an instant curve

Bonds Stock-exchange operator spreads its take-out funding across US dollar, euros and sterling

BY WILLIAM HOFFMAN, ED CLARK &RIDAYûASûITûALIGNEDûITSûlNANCINGû CONlDENCEûINûTHEûNAME ûSAIDû 75bp over, a US$1.25bn 10-year at TOûlTûITSûGLOBALûREVENUESû #OLLINû-ARTIN ûDIRECTORûOFûlXEDû 90bp over and a US$750m 20-year LONDON STOCK EXCHANGE GROUP “This wasn’t just about income at the Schwab Center for at 100bp over. Initial price overcame a lack of investor looking at the best pricing on a &INANCIALû2ESEARCH thoughts were set in the area of familiarity in the US and a tricky swapped basis,” said a banker at “Single A rated names are Treasuries plus 70bp, 90bp, 105bp, bond market to raise just under one of the leads. generally going to get more interest 120bp and 135bp, respectively. US$7bn across a triple-currency The US dollar, however, was because it’s such a Triple B heavy $ESPITEûTHEûADDITIONûOFû2ElNITIVû deal last week. considered the best market in world,” Martin said. “A higher-rated to diversify the business further The company, which owns which to raise most of the funds NAMEûISûGOODûDIVERSIlCATIONûFORû INTOûlNANCIALûDATAûSALES ûMOSTû )&2 ûWASûINûTHEûMARKETûWITHûITSû despite LSEG’s lack of presence portfolio managers looking to add investors compared the notes to long-awaited deal that will there. Several US high-grade new names to their portfolio and pure-play stock exchange peers HELPûRElNANCEûTHEûaBN investors and bankers said there it’s been well received given the such as CME Group, CBOE Global equivalent outstanding on a was little name recognition with staggered maturities that give Markets, Intercontinental bridge facility used to fund its the credit. investors plenty to choose from.” Exchange and Nasdaq, said Dan US$27bn acquisition of data Additionally, only sub- Bruzzo, managing director of and analytics business investment-grade investors were PRICE TENSION BANKûlNANCEûATûBROKER DEALERû 2ElNITIV engaged in a US$13.5bn debt raise LSEG issued US dollar tranches Amherst Pierpont. The bond offering came in line across bonds and loans in 2018 WITHûTHREE ûlVE ûSEVEN ûûANDû With no outstanding US dollar with the top end of the £4bn–£5bn that funded Blackstone’s US$20bn year tenors as it sought to create curve, LSEG managed to price range indicated in an investor acquisition of Thomson Reuters’ pricing tension through building a just inside ICE, which is slightly presentation after the mandate lNANCIALûANDûRISKûBUSINESS ûWHICHû curve in one go. Bookrunners LOWERûRATEDûATû!""" û&ORû was announced last week. LSEG WASûQUICKLYûRENAMEDû2ElNITIV garnered some US$20bn of peak example, ICE’s 2.10% June 2030s has a £4bn agreement to sell Borsa One banker away from the deal orders before the book settled at that priced last year at 145bp Italiana to Euronext that will also noted that the pre-announcement US$16.2bn at pricing, according to over Treasuries were trading at a HELPûFUNDûTHEûBRIDGEûRElNANCING marketing leading up to the LSEG lead bankers. G-spread of 96bp – 6bp wide of The company started with a trade and attractive spreads at Global coordinators tightened the new 10-year offering from 53BNûlVE PARTûDEALûONû initial price thoughts helped draw spreads by 30bp–35bp through LSEG, according to MarketAxess Thursday, which was its debut in attention to the offering. price progression to launch a data. the US market. It then followed Additionally, ratings of A3/A US$500m three-year at 40bp over LSEG also chose to target with a €1.5bn triple-tranche and from Moody’s and S&P, 4REASURIES ûAû53BNûlVE YEARûATû medium-duration notes and only £500m single-note offering on respectively, helped give investors 60bp over, a US$1bn seven-year at went as far out as 20 years, which Verbund breaks new ground in ESG ﬁnancing Bonds Green pure-play utility issuer refreshes ESG offerings with sustainability-linked bond.

BY ED CLARK term commitment,” said Bram Bos, amps to facilitate interaction He reckoned there could be up lead portfolio manager of green with the grid and integrate to a handful of such deals in the Austrian utility VERBUND showed bonds at NN Investment Partners. renewable energy generation euro market this year, although he that a green use-of-proceeds Leads said Verbund (A3/A) was over the same period. acknowledged the documentation structure combined with the perfect candidate to become The green side of the structure would need to be rigorous. sustainability-linked coupon THEûlRSTû%UROPEANûISSUERûTOû is also related to renewable Verbund’s bond issue is step-ups has broad appeal to combine a green structure with energy projects, such as aligned with the ICMA Green INVESTORSûAFTERûITûBECAMEûTHEûlRSTû KPI-linked targets, given it is investing in hydroelectricity and Bond Principles, the EU Green European corporate to issue already an established green improving the power Bond Standard and the EU such a deal on Wednesday. bond issuer focused on distribution network. Taxonomy, adding to its appeal. While a couple of issuers had renewable energy generation. Bankers suggest that deals While green use-of-proceeds already tested the concept, they The bond deal is linked to two combining green or social use-of- bonds have clear international were both niche trades. renewable energy-focused proceeds with KPI-linked targets guidelines, there is a lack of Verbund’s €500m 20-year bond targets, with a 25bp step-up could become a more common similar standardisation around OFFERINGûWASûTHEûlRSTûTIMEûANYû penalty if either is missed. sight in the European market, KPIs in the more nascent corporate had combined the two The company must install with several saying that they are sustainability-linked bond ESG structures in euros. production capacity of actively pitching the concept to market. “We do like . . . combining the hydropower, wind power and issuers. So by pairing “a green bond that use-of-proceeds concept with the photovoltaic solar renewable “Any company able to do a is highly aligned with the EU sustainability-linked concept. This energy of at least 2GW by the end green bond can insert a coupon Taxonomy”, Verbund was also aligns the short-term capex/projects of 2032 and install transformer step-up based on KPIs as well,” “able to connect a sustainability- lNANCEDûWITHûTHEûISSUERSûLONG capacity of at least 12 gigavolt- said a banker. linked bond to the EU Taxonomy,

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Martin said was refreshing in a year that dollars don’t,” said a second of bloated long-duration deals. lead banker. Ethypharm loan ushers h&ORûANûINAUGURALûPUSHûITû The company sold a €500m would be more standard to go four-year at 40bp over swaps, a in new Sonia era with 10s and 30s, but it could be €500m seven-year at 50bp and a that 20-year part of the curve is €500m 12-year at 70bp off a Loans New sterling loans have to use Sonia from April 1 attractive right now to investors combined book that exceeded and they saw that on reverse €5.8bn. Initial levels were 60bp BY CLAIRE RUCKIN convert existing term loans and enquiry,” Bruzzo said. area, 75bp area and 95bp area. revolving credit facilities to He added that Nasdaq and ICE The capped size of each note &RENCHûPHARMACEUTICALû Sonia. have issued at the 20-year part of from the outset, as well as their company ETHYPHARM’s Most sponsor-backed the curve since August. And indeed eligibility for the ECB’s bond £477m-equivalent borrowers have multi- LSEG received the greatest demand buying programme – the issuing RElNANCINGûISûTHEûlRSTûLOANûINû currency revolvers, with in the 20-year – despite general entity is LSEG Netherlands BV – Europe’s leveraged loan sterling as an option, so they uncertainty at the long end given helped support demand. market to use Sonia rather will have to be amended to the sell-off in rates since the start of Although LSEG was not focused than Libor from the outset, Sonia from Libor. the year – that allowed it to tighten on the best pricing across currencies providing banks with a “That will involve going over spreads by an additional 5bp from on a swapped basis, a syndicate much-needed opportunity to EVERYû2#&û-OSTûARENTûTHATû IPTs compared with the other banker involved did point out that test out their systems and broadly distributed but it will tranches. the seven-year euro tranche came processes for the new still be painful to do the waivers. inside its equivalent US dollar level, interest rate benchmark. The ability to amend has been SEVEN-YEAR ITCH a rare achievement for the euro &ROMû!PRILûûALLûNEWû made easier over the last few The European notes were also market given current conditions. documented sterling loans months and all banks know they revised tighter as LSEG was able The two other euro tranches priced will have to use Sonia, but need to switch. The issue has TOûPLOTûAûMATURITYûPROlLEûTHATû back of LSEG’s US dollar curve. leveraged borrowers have been sorting out the mechanics ensures that no particular year A £500m no-grow nine-year resisted switching base rates, but now everyone has agreed HASûANûEXCESSIVEûRElNANCINGû tranche was also easily placed as prompting frustration among what it is and put the burden. The only tenor tapped more than £1.25bn of demand lenders. amendments out,” the syndicate twice across the three enabled leads to tighten pricing to “Banks are under immense head said. currencies was the seven-year. 95bp over Gilts from 110bp area. pressure not to underwrite It is expected that any loan “What you’ll see with the Barclays, Bank of America, Citigroup any non-Sonia sterling loans REPRICINGûORûRElNANCINGûWILLû euro and sterling tranches is and HSBC were global coordinators after the end of March and include a waiver to adjust that they are off-the-run across all three currencies. THEûFACTûWEûlNALLYûHAVEûGOTûAû STERLINGû4,"SûORû2#&SûTOû3ONIA maturities, not really available ,3%' ûDESPITEûOWNINGû)&2 û borrower to use the Investors are trying to work in dollars. These markets offer had not responded to requests precedent is super-helpful,” a out the implications of Sonia- mEXIBILITYûAROUNDûMATURITIESû for comment by press time. syndicate head said. “It has referenced deals. CLOs are taken a long time and a unlikely to be affected, given massive amount of work by the fact they do not invest in which most regular SLBs are not mould that investors have been lawyers, the Loan Market sterling and it’s a similar able to do”, said Bros. targeting of late – spread Association and banks to picture for credit opportunity products or shorter-dated tenors make the systems work and funds. TIGHT PRICE – leads said the book size was the issue over the last few h&ROMûANûINVESTORSûPOINTûOFû One attraction to issuers would solid. Verbund’s choice of tenor months is that no one view it doesn’t make much be the potentially relatively tight was dictated by the needs of the WANTEDûTOûBEûTHEûlRSTûINûTHEû difference to credit funds pricing that can be achieved underlying project. leveraged loan market to do because the base rate is such a given the structure’s appeal The company has been this.” low component of return,” the across the spectrum of ESG considered something of a While there won’t be a huge syndicate head said. investors. Verbund, for example, green “pure play” by bankers economic impact from the %THYPHARMSûRElNANCINGû was able to tighten pricing to and investors for some time. transition, given Libor and Sonia comprises a €270m term loan B 57bp over swaps after starting About 94% of all the energy it are around the same level, the guided to pay 350bp over marketing at 85bp area, with the produces is from hydro power. It operational issues it posed for Euribor, at 99.5 OID, as well as a book reaching over €2.2bn. also generates energy through banks was more pressing. £245m term loan B guided at Bankers were reluctant to put wind and solar. “There was talk about 450bp–475bp over Sonia, at 99 AûlGUREûONûFAIRûVALUEûGIVENû ESG is also at the core of the whether we could do it from an OID. Verbund has only one COMPANYSûlNANCINGû4HEû operational perspective and only The loans, which come with outstanding bond issue – €500m BORROWERûISSUEDûITSûlRSTûGREENû recently have banks been able to 101 soft call protection for six of 1.5% November 2024s, which bonds in 2014 – the November do it practically for a big MONTHS ûWILLûRElNANCEûITSûEUROû were bid at plus 28bp – and this 2024s – and has also raised syndicate. It is good that there is and sterling term loans and PIK INSTRUMENTûISûTHEûlRSTûOFûITSûKINDû green debt in the Schuldschein a term loan B precedent now,” notes. in the euro market. market and secured an ESG- the syndicate head said. Global coordinators and But CreditSights suggested linked syndicated loan. Verbund physical bookrunners are fair value was anything from does not have particularly large BEHIND THE SCENES Barclays and Citigroup, alongside 50bp to 60bp. funding needs, and the 2014 Banks are also busy behind the bookrunners BNP Paribas, Given that, aside from the green bond deal was its last scenes trying to obtain waivers Deutsche Bank, HSBC and Societe %3'ûANGLE ûTHEûDEALûDIDNTûlTûTHEû appearance in the market. from lenders and investors to Generale.

International Financing Review March 27 2021 9

3 IFR Top news 2376 p2-12.indd 9 26/03/2021 20:02:10 Top news Day off or US$20k? Banks react to burnout concerns

People & Markets Lockdown and busy markets prompt calls to address work/life balance for junior bankers

BY PHILIP SCIPIO, STEVE SLATER more sensible working were unlikely to stay beyond much the one-off bonus is, but practices. six months if conditions it is expected to be US$20,000 Saturdays off, a day without “Everyone knows junior didn’t improve. for vice-presidents, associates Zoom calls, or US$20,000 in bankers work hard but it’s Goldman CEO David and analysts in its capital cash? Or how about a fancy clearly been exacerbated by Solomon responded by markets and advisory division. exercise bike? the pandemic and how busy highlighting a rule that Banks last week made a it’s been. It’s combined to bankers should not work on a “Everyone knows show of reacting to concern create a pinch-point, which I Saturday and speeding up junior bankers work that junior bankers are being think has been across the efforts to ease the workload. overworked due to lockdown Street,” a person at one major “We’re strengthening hard but it’s clearly working patterns and record banks said. enforcement of the Saturday been exacerbated by levels of capital markets Banks say they have stepped rule. We’re accelerating our the pandemic and issuance. up their hiring of junior staff efforts to hire new junior how busy it’s been. It’s Those factors have to meet the increased bankers across investment combined to create a combined to raise the risk that workload, but that can take banking. And we’re internally pinch-point” an already skewed work/life time, especially as it has to transferring bankers to balance has deteriorated happen remotely and when business lines where activity further. With juniors stuck at rivals are also in the market, levels are highest,” Solomon “Credit Suisse’s capital markets home lacking guidance, help bankers said. told staff in a recorded and advisory management and collaboration (and GOLDMAN SACHS has been at message. recognises and wants to reward potentially dealing with the centre of the issue after Other banks are also taking the efforts of our people who have anxious parents) those in the junior bankers in its action. CREDIT SUISSE is giving not only managed to support our industry acknowledge the investment banking division junior and some mid-level clients through unprecedented greater risk of burnout and sent a presentation to investment bankers a bonus deal volume but also increased our mental health issuers – or management saying overwork or salary raise to recognise share of the market,” a juniors simply decamping to was hurting their physical and their increased workload. The spokesperson for Credit Suisse tech or other industries with mental wellbeing and most Swiss bank did not say how said. Belron keeps the divis coming Loans UK vehicle glass repairer has paid around €3.5bn to shareholders since 2017

BY CLAIRE RUCKIN Belron’s shareholders no cash-equity cushion or skin in sleep-at-night investments,” longer have any cash left in the game,” a syndicate head the syndicate head said. UK vehicle glass repair and the company. While investors said. replacement group BELRON has want sponsors to have skin in The dividend will returned to the loan market to the game for new portfolio releverage Belron to 4.2 times, “There is a dividend raise funds to pay around companies, or those that need from 2.6 times, taking triangle. Is there €1.45bn to shareholders, the to prove their performance, leverage back to where it was any cash-equity left, fourth dividend to be dished they are quite happy to keep following the last dividend in what is the implied out since 2017, taking the lending to seasoned 2019. As a family-backed, equity and is leverage total dividend pay-out to performers, especially in a Double B issuer, investors are around €3.5bn. market where demand far comforted that any sensible? You need a At €3.5bn, it is one of the outweighs supply and releveraging will not be too combination of factors” largest dividend payers in investors are desperate to put aggressive. Europe’s leveraged loan cash to work. “After a credit has In 1999 D’Ieteren Group MARKETûSINCEûTHEûlNANCIALû “There is a dividend performed for a number of acquired Belron from the Lubner crisis, and this latest payout is triangle. Is there any cash- years and operated through family (Belron’s founding Belron’s biggest to date. equity left, what is the implied cycles, investors are prepared family) and South African “This is a brilliant business, it equity and is leverage to back the company and are Breweries. CD&R acquired a 40% could print cash forever and is a sensible? You need a less reliant on sponsors seeing stake in Belron in 2018 and with tremendous performer. What combination of factors. If them good. It is a good risk- management owning an an incredible investment. It’s leverage is sensible and there return. Regular dividend approximate 5% stake, publicly not bad taking four dividends in is a material implied equity, it payers are deals that people traded D’Ieteren was left with a lVEûYEARS vûAûSENIORûBANKERûSAID does not matter if there is no are comfortable with and 54.85% stake.

10 International Financing Review March 27 2021

3 IFR Top news 2376 p2-12.indd 10 26/03/2021 20:02:10 For daily news stories @ visit www.ifre.com

JP MORGAN said it has stepped recognising the overtime business opportunities” and Solomon said the complaints up its hiring at vice-president, staffers had been putting in was working to automate were taken seriously. “We associate and analyst levels to with special gifts – ranging more tasks. recognise that people working account for the rise in volume. from Peloton exercise bikes today face a new set of challenges. It already had a circuit-breaker to a package of Apple “The blurring of lines In this world of remote work, it in place for staff and tells them products including iPad Airs. between home and work feels like we have to be connected not to work from 7pm on 24/7,” he said. &RIDAYûUNTILû3ATURDAYûATûNOONû YEAH, BUT... and the relentlessness of and not to work one weekend a "ANKERSûSAIDûlRMSûNEEDûTOû the pandemic workday RETURN TO OFFICE? month. UBS and other banks meet unusually high levels of have taken a toll” Bankers are hopeful the also try to protect Saturdays by activity at present. The record work/life balance will making it clear staff are not level of special purpose improve when staff return to expected to work. acquisition companies coming But dangerously long hours OFlCESû#ITIGROUPSû&RASERûSAIDû New CITIGROUP #%/û*ANEû&RASERû to market – and effort to line for juniors are not new in she expects the majority of last week told staff to stop up more – is likely to have investment banking. staff to work on a hybrid basis making internal video calls one seen junior staff toiling hard. Goldman implemented its nûINûTHEûOFlCEûATûLEASTûTHREEû day a week to combat “Zoom Credit Suisse is one of the Saturday rule in 2013. It days a week. Some will need fatigue”, and not to schedule calls TOPûlRMSûFORû30!#S ûANDûITSû means junior bankers should TOûBEûINûTHEûOFlCEûFULL TIME û outside normal working hours. BONUSûFORûSTAFFûREmECTSûAûû not be expected to work from and some will be able to work “The blurring of lines jump in investment bank PMûONûAû&RIDAYûTOûAMûONûAû remotely full-time, but most between home and work and revenues early this year. It Sunday. will have a mix. the relentlessness of the had its highest level of pre-tax Critics said the rule does As well as being able to pandemic workday have taken a income for a decade in not appear to have been collaborate more easily and let toll on our wellbeing,” said *ANUARYûANDû&EBRUARY properly enforced. The leaked junior staff learn more quickly &RASER ûWHOûTOOKûOVERûINû Goldman chief Solomon presentation from a survey of from senior colleagues, it is &EBRUARYûh7HENûOURûWORKû said the “stress and strain” on 13 junior investment bankers more productive to work regularly spills over into nights, EVERYONEûATûTHEûlRMûWASûTHEû showed they were working 95 together, she said. very early mornings and result of client demand. “The hours a week on average. Solomon was more blunt. weekends, it can prevent us good news is, volumes are up “There was a point where I He said at a conference last from recharging fully, and that because we have an was not eating, showering or month that remote working isn’t good for you nor, opportunity to work with our doing anything else other had gone well, but was only a ultimately, for Citi.” clients on so many interesting than working from morning TEMPORARYûlXûh)TSûNOTûAûNEWû JEFFERIES last week followed things right now,” he said. until after midnight,” one of normal. It’s an aberration that up a record year with a record He added the bank will be the respondents in the survey we’re going to correct as lRST QUARTERûANDûSAIDûITûWASû “more selective about said. quickly as possible,” he said

In 2017, D’Ieteren took a based on ESG performance loan B has increased to €840m be reduced by 7.5bp for €453m dividend payment as and is the latest example of and will mature in April 2028. hitting two KPIs related to part of a wider €1.3bn- the evolutionary nature of Meanwhile, Belron is also recyclable glass and equivalent term loan and ESG in Europe’s leveraged raising a new greenhouse emissions, or under the new ownership loan market. €735m-equivalent US dollar- adjusted higher by 10bp if structure a further denominated term loan B, they do not meet those approximate €500m dividend which, with the additional targets. was taken in 2018. Around “Belron’s deleveraging €315m of euro TLB, will !SûPARTûOFûTHEûlNANCING û €1bn was taken as a dividend capability is significant provide the debt portion of Belron will also look to get a in 2019. and it has had really the dividend pay-out. waiver for the dividend Belron is a €900m Ebitda significant performance Both the euro and dollar from investors to a business, which has increased improvements on TLBs are guided to pay 250bp US$446m November 2025 CASHmOWûSIXûTIMESûSINCEûû the top line and with over Euribor/Libor with a 0% TLB and US$822m October There has been a 400bp mOOR ûANDûTHEûEUROûTRANCHEûISû 2026 TLB. Pricing will margin improvement in two profitability” offered with a 99.5–99.75 remain the same at 250bp years. OID, while the US dollar OVERû,IBOR ûWITHûAûûmOOR û “Belron’s deleveraging piece is slightly wider at but investors will be offered CAPABILITYûISûSIGNIlCANTûANDûITû “This is another development 99.0–99.5. a 12.5bp consent fee. HASûHADûREALLYûSIGNIlCANTû of ESG in the leveraged loan An existing US$994m TLB Bank of America, Barclays, performance improvements market. It is very technical and will be extended to April BNP Paribas and JP Morgan are on the top line and with gets down to what banks’ internal 2028, from November 2024 joint global coordinators and PROlTABILITY vûAûSECONDûSENIORû ESG teams can get comfortable and will pay 250bp, with a 0% sustainability coordinators. banker said. with. What is important is to mOORû)NVESTORSûWILLûBEûOFFEREDû 4HEûlRSTûTHREEûAREûPHYSICALû make sure the targets incentivise a 25bp consent fee. bookrunners on the euro ESG FIRST good behaviour,” another senior All three covenant-lite loans, while JP Morgan is 4HEûDEALûISûALSOûTHEûlRSTû banker said. loans will be offered with 101 physical bookrunner on the leveraged loan to vary the !SûPARTûOFûTHEûlNANCING ûAû soft call for six months and US dollar loans, as well as upside and downside margins €525m November 2024 term the ESG-linked margins will agent.

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3 IFR Top news 2376 p2-12.indd 11 26/03/2021 20:02:11 Top news

Spelthorne raids reserves as £1bn property bet takes a hit from pandemic

People & Markets Indebted UK council taps sinking fund in order to balance budget

BY GARETH GORE “Where we have agreed lease Collier said that the council is REmECTSûAûGENERALûDECLINEûINû extensions, that potentially well placed to weather the expectations around rental Spelthorne Borough Council helps the council in the long pandemic, having built up a income. will need to dip into its reserves term. There have also been a few £25m sinking fund for such Collier said the council had to balance its budget this year, short-term deferral agreements.” eventualities. But the sinking commissioned a study into what after its £1bn punt on the “We’re doing better than the fund is also supposed to cover the pandemic might mean for commercial property market sector as a whole, and certainly maintenance, unexpected its commercial property was badly shaken by the the benchmarks we’ve seen in works and the sudden loss of portfolio. He said that it had pandemic, leaving some of its terms of commercial assets. clients, so dipping into reserves actually gained some new biggest tenants unable to pay Some of that is down to hard now isn’t without its risks. tenants over the period, their rent. work, engaging with tenants. “We have earmarked although some have been The borough has already But the location of our assets – reserves, money put aside for granted rent-free periods. withdrawn £1.8m from its the fact that they’re not actually precisely these eventualities – Even with the new tenants, sinking fund after some tenants in central London – also helps.” for covering voids, rent free ONEûOFûITSûBIGGESTûOFlCEû including shared workspace periods, and also capital buildings is only around half operator WeWork negotiated BUILDING AN EMPIRE refurbishments that may come full. Spelthorne bought The waivers on their rent. It plans to Spelthorne’s commercial up from time to time,” he said. Charter Building in Uxbridge for withdraw an additional £5.5m property empire dates back to “That is what they are for.” £136m in 2018. Prime Minister to make up for this year’s 2016, when BP – a major He also said that the sinking Boris Johnson praised the shortfall. The amount will be employer in the borough – fund would continue to increase purchase during a visit last year, deducted from reserves over the decided to sell and lease back its over the next four years even as but the council is struggling to next four years, but booked as OFlCESû4HEûCOUNCILûSWOOPEDûIN û £5.5m is withdrawn to pay for lLLûTHEûBUILDING income this year. borrowing £385m to buy the lost income during the “The only site where we’ve While Spelthorne says that it campus with a view to using any pandemic. The council expects got voids remains the Charter has only written off 0.02% of the PROlTSûFROMûTHEûRENTûTOûBOOSTû the sinking fund to rise to Building, all the others are fully commercial rent due in the the council’s budget. around £46m by March 2025 let,” said Collier. “We have CURRENTûlSCALûYEARûTHATûENDSûTHISû Since then, it has bought up from just under £25m today. attracted new tenants despite COMINGûWEEK ûTHATûlGUREû ANOTHERûûOFlCEûBUILDINGS ûALLû the pandemic and at the end of doesn’t tell the whole story. of it funded through borrowing CONCERNS this month 58% of the space at That’s because the council has from the Public Works Loan &ORMERûCOUNCILûLEADERû)ANû Charter will be let – and we are granted extensions to several of Board, which lends to local Harvey, seen as the man behind getting more enquiries.” its struggling tenants that aren’t authorities with few strings the property bets, left that role counted as missed payments. attached. The council, one of LASTûYEARûAMIDûINlGHTINGûWITHINû BIGGEST TENANT It has collected just £42.6m the smallest in the country, is the ruling Conservative Party. A bigger question is what from its commercial tenants now one of the most indebted KPMG, former auditor to the happens to its biggest tenant, this year, against the £50.2m with more than £1bn of debt. council, refused to sign off on BP, which contributes about a that had been forecast. Over the past few years, the the 2018 accounts because of third of expected rental income. Given that local authorities plan worked: after paying off “material concerns” around The oil giant is currently in the are legally required to balance interest on the debt, putting Spelthorne’s interpretation of process of cutting thousands of their budgets, the council was aside cash to pay off the THEûLAW ûSPECIlCALLYûAROUNDûITSû jobs and has said thousands left with little option but to tap principal and contributing to a powers to borrow and invest. more will move to remote reserves in order to avoid deep sinking fund, the portfolio still KPMG was replaced with working. cuts to local services. generated around £10m of ANOTHERûACCOUNTANCYûlRMûLASTû BP currently has a 15-year 4ERRYû#OLLIER ûCHIEFûlNANCIALû excess returns that Spelthorne year. And an internal council lease agreement on the site and OFlCERûATûTHEûCOUNCIL ûCONlRMEDû used to fund social care, housing enquiry uncovered what it said would need to negotiate any that the council had agreed rent and waste collection. were council failings in break with Spelthorne if it waivers and deferrals with a ,ASTûYEAR ûTHEûPROlTSûFROMûITSû transparency, reporting and decided that it no longer needed NUMBERûOFûCLIENTSû)&2ûREPORTEDû property portfolio provided accountability. the entire site. last June that it had granted an about half of the council’s total There are also concerns “We have always had a very 18-month rent waiver to budget. That allowed within the council about close relationship with BP,” said 7E7ORKûINûEXCHANGEûFORûAûlVE Spelthorne to avoid many of the potential lasting damage from Collier. “They are so important year extension on its rental deep cuts seen at councils the pandemic. The council is to our local economy and have agreement. elsewhere – but has also left its expected to write down the been on the site for more than “We’re doing very well at the frontline services exposed to value of its portfolio by around 100 years. They have told us that moment in terms of our POSSIBLEûmUCTUATIONSûINûTHEû 5% over coming weeks. That has they don’t have any intention to collection performance,” he said. commercial property market. no impact on its budget but move away.”

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3 IFR Top news 2376 p2-12.indd 12 26/03/2021 20:02:11 People &Markets

Australia’s Julia Deutsche Bank 14 Westpac is 17 Zilberman is 19 and others get considering spinning appointed head of ﬂexibility to manage off its New Zealand client engagement MREL resources after business in response and marketing a regulatory U-turn on to onerous capital in Citigroup’s bonds issued under requirements there institutional clients UK law group

FRONT STORY RESULTS ECM powers Jefferies to record quarter Bumper ﬁgures back up Q1 optimism for big banks

The investment banking wave that powered In appreciation for the work and 2EVENUEûFROMûDEBTûUNDERWRITINGûROSEûû record earnings for the past year is still commitment behind the record results, FROMûAûYEARûAGOûTOû53MûINûTHEûQUARTER surging, led by equity underwriting. Jefferies offered junior bankers – analysts Revenue from advisory, including M&A, JEFFERIES FINANCIAL GROUP had its best and associates – a choice of three gifts, FELLûTOû53M ûDOWNûûFROMûAûYEARûAGOû quarter ever in the December-February including a Peloton bike just ahead of its Q1 ANDûDOWNûûFROMûTHEûPREVIOUSûQUARTERû period, beating previous record quarters set release (see Top News story). when transactions had picked up. The throughout 2020 as investment banking and slump suggests M&A deal revenue may not equity underwriting fees continued to soar. ECM CHARGE be on the mend following the pandemic The investment bank’s revenues in the Equity underwriting has been powering slowdown – at least not to the extent lRSTûQUARTERûHITû53BN ûUPûûOVERûTHEû investment banking revenue for a year as expected. Or maybe just for Jefferies. PRIORûYEARSûlRSTûQUARTER ûWHICHûATûTHEûTIMEû companies tapped vibrant equity markets 2ElNITIVûDATAûSHOWû-!ûDEALûVOLUMEûUPû WASûTHEûlRMSûBESTûEVERûQUARTERûBEFOREûBEINGû with initial public offerings and secondaries. ûFROMûAûYEARûAGOûTHROUGHûMID -ARCH eclipsed throughout 2020 (see chart). &ORû*EFFERIES ûTHATûLEDûTOû53MûINû%#-û *EFFERIESûlRSTûQUARTERûRUNSûFROMû REVENUEûINûTHEûlRSTûQUARTER ûMOREûTHANûTHREEû December through February, capturing TIMESûTHEû53MûITûBROUGHTûINûAûYEARûAGOû “The growth in our primary strength in capital markets and trading and and a new ECM record for the bank. businesses can now be seen giving an early indication of how its bigger “Our investment banking backlog to have exceeded those of rivals will fare. The signs are good. remains robust and diverse as our the broader industry” JP Morgan, Citigroup and Bank of America investment in this core business continues have already indicated that 2021 has started and our reach expands,” Handler said. well and continued last year’s strong TRADING TOO performance in capital markets and trading. BOOM! JEFFERIES QUARTERLY REVENUES KEEP While ECM is capturing headlines, the 3EVERALûOFûTHEûLARGESTûBANKSûREPORTEDûRECORDû HITTING RECORDS strength in trading that began well before breaking quarters last year. One uncertain US$m the rebound in investment banking is factor is the performance last March, 2,500 enduring. Revenue from trading jumped however, when the Covid-19 pandemic ûFROMûAûYEARûAGOûANDûCERTAINLYûAIDEDû

spooked markets, at least for a period. 2,000 Jefferies’ record-breaking quarter. Jefferies smashed previous markers for its 2EVENUEûFROMûEQUITIESûTRADINGûROSEûû best quarter. The independent investment TOû53MûINûTHEûlRSTûQUARTER ûWHILEû BANKûREPORTEDûRECORDûEARNINGSûOFû53M û 1,500 REVENUEûFROMûlXEDûINCOME ûCURRENCIESûANDû UPûûOVERûITSûlRSTûQUARTERûAûYEARûAGO COMMODITIESûTRADINGûROSEûûTOû53MûINû 4HEûRESULTSûhREmECTûTHEûCONTINUEDû THEûQUARTERû)TûWASûTHEûlRMSûBESTûQUARTERûEVERû 1,000 momentum and market share gains we in trading and the best quarter ever in equities. experienced throughout 2020, where the Jefferies’ results often foreshadow results growth in our primary businesses can now 500 at its larger rivals, which begin reporting in be seen to have exceeded those of the MID !PRILû4HEûLARGESTû53ûBANKS ûINCLUDINGû*0û broader industry”, said Jefferies chief Morgan, have already hinted that the 0 executive Richard Handler in a statement. quarter could be among the best ever. In the investment banking division, *0û-ORGANûANDû'OLDMANû3ACHSûAREûDUEûTOû Q1 2021 Q1 2019 Q3 2019 Q2 2019 Q4 2019 Q1 2020 Q3 2020 Q2 2020 Q4 2020 Jefferies also posted its best quarter ever, with Advisory/underwriting revenues Net revenues report on April 14 and Citigroup and BofA REVENUESûOFû53BN ûUPûûOVERûTHEûPRIORû Source: Jefferies results; the bank reports on a report a day later. year quarter, led by equity capital markets. December-November ﬁnancial year Philip Scipio

International Financing Review March 27 2021 13

4 IFR PM 2376 p13-20.indd 13 26/03/2021 19:40:01 “Hats off! But there is also a mammoth project ahead of Mr Branson” GERMAN FINANCE ACTIVIST GERHARD SCHICK ON CHANGE IN BAFIN LEADERSHIP, P17

Westpac mulls New Zealand spin-off WESTPAC BANKING CORP is considering the spin-off of its own risk settings for technology for a CAPITAL REQUIREMENTS of its New Zealand business in response to number of years. In addition to requiring the While Westpac already announced a retreat the country’s onerous capital requirements, LENDERûTOûSETûASIDEûANûUNSPECIlEDûAMOUNTû from Asia only a few months ago, detailing in a move some analysts expect to be until its remediation work is completed, it also PLANSûTOûSHUTTERûOFlCESûINû"EIJING û3HANGHAI û replicated by Australia’s other major lenders. ordered it to produce two independent reports Hong Kong, Mumbai and Jakarta, the Westpac, which has been operating in examining its risk governance. decision to potentially exit one of its two New Zealand for more than 160 years, said The RBNZ’s actions are only one in a series home markets is practically unheard of. last week it was “assessing the appropriate of concerns raised about the Australian The closest comparison is probably Nordea, structure for its New Zealand business and lender’s processes and technology systems, which moved its headquarters to Helsinki whether a demerger would be in the best ANDûINû3EPTEMBERûTHEûBANKûWASûlNEDû FROMû3TOCKHOLMûINûûFOLLOWINGûAûDISPUTEû interests of shareholders”. !BNû53M ûTHEûLARGESTûEVERûINû over what it regarded as costly and It said it was in the early stage of its Australian corporate history, for widespread UNPREDICTABLEûREGULATIONûINû3WEDEN ûALTHOUGHû assessment and no decision had yet been breaches of anti-money laundering rules. it still retains a sizeable presence there. MADEûBUTûPOINTEDûTHEûlNGERûSQUARELYûATûTHEû One source familiar with the process told Westpac and the other three Australian Reserve Bank of New Zealand. IFR that several options were on the table majors dominate the Kiwi banking market It cited the central bank’s new capital for Westpac, including an IPO and a sale of through their units Westpac New Zealand, rules that were introduced in December the business to a third party. The Australian !.:û"ANKû.EWû:EALAND û!3"û"ANK ûWHICHûISû 2019, and which surpassed Finland as the Financial Review reported that Westpac had owned by Commonwealth Bank of world’s toughest requirements, according to appointed Macquarie Capital to advise on Australia, and Bank of New Zealand, which Citigroup research, as a factor in its decision. the divestment process. Macquarie declined is owned by National Australia Bank. It also mentioned the RBNZ’s recent to comment. Their dominance – they have a combined decision to sanction the bank, requiring it to One analyst said that an IPO was the more MARKETûSHAREûOFûABOUTûûnûSETûOFFûAûCAPITALû SETûASIDEûANûUNSPECIlEDûAMOUNTûINûLIQUIDû likely route if only because there was strong rules tug of war between Australia and New assets because of repeated compliance market liquidity to support a domestic listing of Zealand’s central banks, which reached a failures, as another factor. one of the four majors. As it seemed unlikely denouement in December 2019, when RBNZ RBNZ last week reprimanded the bank, that the other big four banks would be able to raised the minimum capital adequacy ratio saying that it had failed to report liquidity buy it on competition grounds, identifying a FORûMAJORûBANKSûTOûAûWORLD BEATINGûûFROMû correctly and had continued to operate outside POTENTIALûPURCHASERûREMAINEDûDIFlCULTû ûOFûRISK WEIGHTEDûASSETSûPREVIOUSLY UBS verdict months away in €4.5bn French tax case &RENCHûJUDGESûAREûSETûTOûRULEûINû3EPTEMBERû )TûWASûHITûATûTHEûTIMEûWITHûAûRECORDûõBNû 0ROSECUTORSûAREûSTILLûSEEKINGûAûlNEûOFûATû ONû3WISSûBANKûUBS’S delayed appeal against a INûPENALTIESûASûAûRESULT ûINCLUDINGûAûõBNû least €2bn, with lawyers for the French state HEFTYûlNEûFORûALLEGEDLYûHELPINGûWEALTHYû lNEûANDûõMûINûCIVILûDAMAGES saying they wanted €1bn in damages and clients stash undeclared assets offshore, Judges said on Wednesday they would interest payments followed hearings that Reuters reported. RULEûONû*UNEûûONûCONSTITUTIONALûMATTERSû BEGANûONû-ARCHû 5"3ûISûLOOKINGûTOûOVERTURNûAûû&RENCHû connected to the case, which could ,AWYERSûFORû5"3ûARGUEDûINûTHEûAPPEALSû court ruling in which it was found guilty of potentially see other decisions postponed. trial that despite whistleblowers coming soliciting clients illegally at sporting events 4HEûRULINGûONû5"3SûAPPEALûISûFORûNOWûSETûFORû forward, investigators had never found clear and parties in France, and of laundering the 3EPTEMBERû ûAFTERûTHEûCASEûWASûDELAYEDûBYû evidence of systematic attempts to canvass proceeds of tax evasion. the pandemic. &RENCHûCUSTOMERSûBYû5"3ûCOMMERCIALû Who’s moving where…

NOMURA has hired four years at Bank of Pamela Gelles has The Carlyle Group and Kevin Connors as America as global joined VONTOBEL Standard & Poor’s. global head of head of FX sales, and ASSET MANAGEMENT Vontobel also made FX and emerging from 2001 to 2011 in New York as senior three hires in Zurich, markets sales, and he was at Goldman credit analyst on the with Jean-Michel Manry head of FX and EM Sachs, including as developed market joining as head of ﬁxed for EMEA, based in co-head of FX sales. corporate bonds team. income trading, Marc London. Connors has He previously spent Gelles spent eight van Heems as portfolio had spells as CEO of eight years at UBS years at BNP Paribas manager for corporate Commodities World and Swiss Bank Asset Management as bond strategy and Capital and fund Corporation. a credit analyst after Nicolas Hauser as ﬁxed manager Ibex Capital. working at BNY Mellon income trader. Before that he spent Asset Management,

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4 IFR PM 2376 p13-20.indd 14 26/03/2021 19:40:08 People &Markets

Although the new rules allow a phasing-in period of seven years, several analysts SLR could trip up US banks speculated at the time the rules may prompt the four majors to reconsider their on stress test operations in New Zealand. The US FEDERAL RESERVE’s annual stress test for will be able to return to investors under Brian Johnson, bank analyst at Jefferies, THEûBIGGESTû53ûBANKSûISûTAKINGûONûEVENûMOREû their capital plans through buybacks and said in a note following Westpac’s SIGNIlCANCEûTHISûYEARûASûTHEûREGULATORû dividends. The banks spent most of last year announcement that he did not think “an INCREASESûTHEûDEGREEûOFûDIFlCULTYûANDûPULLSû under a moratorium on stock buybacks as Australian bank owning a New Zealand back temporary relief that boosted regulators forced them to retain capital in bank makes sense”. supplementary leverage ratios. the face of the pandemic. “WBC will not be the only Australian The relief that allowed banks to exclude bank looking at its NZ operations,” he 4REASURIESûFROMûTHEû3,2ûCALCULATIONûEXPIRESû EXTENDED RESTRICTIONS? added. next week, just as the stress test is being Last week, the Fed said the temporary In addition to the country’s tough capital administered. While the banks continue to restrictions on dividends and share requirements, Johnson cited the exceed the threshold it is unclear how well repurchases currently in place will end for requirement, also introduced in 2019, for they will hold up under the severe stress MOSTûBANKSûAFTERû*UNEûûnûAFTERûTHEûCURRENTû banks to ring-fence their operations in New scenario of the 2021 test. round of stress tests. Zealand, the New Zealand government’s Banks with capital levels above those clampdown on housing credit growth more “The banking system continues required by the stress test will no longer be aggressively than in Australia, and abundant to be a source of strength subject to the additional restrictions, the Fed liquidity for any domestic listing. said. But it said banks with capital levels h!.:ûHASûWORKEDûHARDûOVERûTHEûLASTûlVEû and returning to our normal below those required by the stress test will years to improve the capital and cost framework after this year’s remain subject to the restrictions. EFlCIENCYûOFûALLûPARTSûOFûOURûBUSINESS û stress test will preserve “The banking system continues to be a including New Zealand,” a spokesperson that strength” source of strength and returning to our for ANZ said. “While the capital normal framework after this year’s stress changes introduced will clearly have Last year, BANK OF AMERICA, JP MORGAN, WELLS test will preserve that strength,” said Randal consequences, New Zealand remains a FARGO, MORGAN STANLEY and GOLDMAN SACHS all Quarles, the Fed’s vice-chair for supervision. core part of who we are and our long-term came close to the line under the severe test Normally, capital distributions are future.” scenario. This year, at least one may miss the restricted principally by the stress capital Thomas Blott mark initially, according to two analysts buffer, which sets a capital target for each speaking on background. The money centre bank based on its individual stress test banks are seen as more vulnerable. results. If a bank does not meet that target, specialists, including at client events like “The lapsing of the exemptions is automatic restrictions are imposed. If a bank cocktail parties and hunts. incrementally negative for money centres remains above all of its minimum risk-based h5"3ûISûFARûFROMûTHEûONLYûONEûTOûHOLDû and Wells Fargo, most notably for JP capital requirements in this year’s stress THESE vû5"3ûLAWYERû(ERVEû4EMIMEûTOLDûTHEû Morgan, as continued balance sheet growth TEST ûITûWILLûBEûSUBJECTûTOûTHEû3#"SûNORMALû court, adding that people who attended the in the coming quarters is likely and could restrictions. more than 200 events under examination MEANû3,2SûAPPROACHûREGULATORYû But if a bank that falls below any of its HADûNOTûSAIDûTHEYûWITNESSEDûSPECIlCû MINIMUMS vûSAIDû5"3ûANALYSTû3AULû-ARTINEZû minimum risk-based requirements in the ATTEMPTSûBYû5"3ûEXECUTIVESûTOûWINûBUSINESSû in a note. “This may trigger changes to stress test, it will remain subject to the illegally. deposit and capital strategies.” additional restrictions for three extra 5"3ûHASûSETûASIDEûONLYûõMûTOûCOVERû The stress test is being administered to MONTHS ûTHROUGHûTOûTHEûENDûOFû3EPTEMBER û sanctions in the case. THEûûLARGESTû53ûBANKSû4HEû&EDûUSESûITSû the Fed said. Sarah White stress test to determine how much banks Philip Scipio

Please contact us if you have information about job moves: [email protected]

NATIXIS has joined Natixis in BROWN ADVISORY, bonds at Janus appointed James 2019 as a managing an independent Henderson; Ryan Thomson (left) as director in the aviation investment Myerberg, most head of financial sector team in APAC, management firm, has recently head of sponsors coverage for and has more than hired three portfolio absolute return fixed Asia-Pacific. Based in 18 years’ investment managers to establish income at Amundi; Hong Kong, he reports banking experience, a new team for global and Colby Stilson, to Aurelien Lasjunies, most recently at sustainable fixed who was a managing head of coverage for Deutsche Bank, income strategies. partner at the TIFIN APAC, and to Meriem where he was head The new portfolio Group. The trio Smida, global head of of transportation, managers are Chris previously worked the sponsor coverage aviation and logistics Diaz (left), former together at Janus group. Thomson in APAC. co-head of global Capital.

International Financing Review March 27 2021 15

4 IFR PM 2376 p13-20.indd 15 26/03/2021 19:40:12 Bellwether Bellwether: n. From the practice of placing a bell around the HEADûOFûGROUPûCOMMSûATûRIVALû#REDITû3UISSEû)TSûTHEûlNANCIALû neck of a castrated ram so that it might lead its ﬂock comms equivalent of when Luis Figo left Barcelona for Real Madrid – but bigger. !&4%2û4(%û2%6%,!4)/.3 about the working conditions faced 7ITHû#3ûSTILLûDEALINGûWITHûTHEûFALLOUTûOFûTHEû'REENSILLû BYûJUNIORû'OLDMANû3ACHSûBANKERSûDURINGûTHEûPANDEMIC û Capital crisis von Arx will certainly be busy. But at least his industry leaders have been quick to make it look as if they new boss, CEO Thomas Gottstein, is receiving praise for his care about their hard-working minions with a combination transparency in his handling of the debacle. of unconvincing empathy and hard cash. He has been on the interview rounds doing his best #REDITû3UISSE ûFORûEXAMPLE ûISûPAYINGûITSûJUNIORSûAûSPECIALû impression of the brave knight in Monty Python and the bonus as a thank-you for their work during the pandemic, Holy Grail, insisting that as the crisis deepens, it is merely a with vice-presidents, associates and analysts in its capital mESHûWOUND MARKETSûANDûADVISORYûDIVISIONûGETTINGûAROUNDû53 (EûEVENûFOUNDûTIMEûTOûPRESENTûATûTHEû-ORGANû3TANLEYû Citigroup’s new CEO Jane Fraser, meanwhile, has extended VIRTUALûlNANCIALûCONFERENCE ûALTHOUGHûITûWASûAûCLOSEûRUNû THEûLOVEûTOûALLûSTAFFûBYûDECLARINGûTHEûlNALûDAYûOFûTHEûWORKINGû thing. When the moderator asked Gottstein the opening week as “Zoom-free Friday”. Which presumably also means question – “could you let us know the latest on supply chain no-one needs to get dressed. Fraser has also declared Friday lNANCEûANDûTHEûCONSEQUENCESûFORû#REDITû3UISSEvûnûSHEûWASû -AYûûAûCOMPANY WIDEûHOLIDAYûnûCALLEDûh#ITIû2ESETû$AYv met with complete silence. "UTûWHATûOFû'OLDMAN û7ELL û#%/û$AVIDû3OLOMONûLEFTûAû (ADû'OTTSTEINûlNALLYûTHROWNûINûTHEûTOWELûANDûHIDDENû company-wide voicemail message in which he reiterated under his desk, or was he pretending his WiFi had gone THATûJUNIORûBANKERSûWEREûNOTûEXPECTEDûTOûBEûINûTHEûOFlCEû down? As the moderator waited, Gottstein suddenly FROMû&RIDAYûNIGHTûTOû3UNDAYûMORNINGû4HATSûRIGHT ûhWORK BECAMEûAUDIBLEûh3ORRY û)ûWASûONûMUTE vûHEûEXPLAINED û FREEû3ATURDAYSvûAREûBACKû7HATEVERûNEXT û-AYBEûHEûCOULDû before answering the question. There must be times when EXTENDûTHEûCONCEPTûTOû3UNDAYSûANDûDECLAREûITûAûhWEEKENDv he wishes the bank could stay on mute for the next six Juniors will be hoping that, given the competitive instincts months. Over to you, Dominik. among bank chiefs, Jamie Dimon will soon introduce “hot- tub Thursday” and others will seek to follow suit. 2/").(//$ û4(%û%!39-to-use trading app that has introduced Fantasy land of course. “Boss, I know that we’re working millennials to stock market investing, may be losing its on this M&A deal and pitching against Goldman; thing is, street cred. ITSûJUSTûTURNEDûMIDNIGHTûnûSOûITSûNOWû-AYûûANDûOFlCIALLYû The company, whose business practices became the focus Citi Reset Day. I’m off home to bed. Jane Fraser said that OFûCONGRESSIONALûSCRUTINY ûHASûlLEDûFORûANû)0/û4HATSûRIGHTû WOULDûBEû/+û3EEûYOUûONû-ONDAYvû'OODûLUCKûWITHûTHAT .OTûAûDIRECTûLISTING ûORûAûFANCYû30!#ûSTRUCTURE ûBUTûAûBORINGû old IPO. And what’s more, it’s hired Goldman to run it. /.%û0%23/.û7(/ cannot be accused of wanting an easy life Proof that when it comes to their own money, Robinhood’s ISû$OMINIKûVONû!RX ûWHOûISûLEAVINGû5"3ûAFTERûûYEARSûTOûBEû founders aren’t taking any chances. Who’s moving where…

CREDIT SUISSE and boards, most EVERCORE has Harris. Mahaney has Asset manager companies. Males has hired Chris Sanger recently in Evercore’s appointed Mark covered the sector for TIKEHAU CAPITAL is based in London from Evercore as head corporate advisory Mahaney as head more than 20 years has hired Simon and joined from of Americas banks in business focusing of internet research and previously worked Males to head its UK Carrick Roads Capital, its global financial on financial services in Evercore ISI, the at Morgan Stanley, institutional business, an institutional institutions group. in the Americas. He equities part of the Citigroup and in which will include consulting and Sanger will be based joined Evercore in investment bank that some US government trying to strengthen capital-raising in New York and 2017 from UBS and is predominantly departments. its relationships firm he founded in report to Jim Spencer, also previously worked focused on advisory. with corporate December 2019. He head of Americas FIG. at Deutsche Bank and He joined from Royal pension funds, previously worked Sanger has more than Merrill Lynch. Bank of Canada and local government at Muzinich and Co, 15 years of experience will report to director pension scheme PGIM and Pictet Asset advising bank CEOs of research Marc pools and insurance Management.

16 International Financing Review March 27 2021

4 IFR PM 2376 p13-20.indd 16 26/03/2021 19:40:14 People &Markets Leveraged ﬁnance banker Bishay joins Credit Suisse Joe Bishay has joined CREDIT SUISSE’s leveraged Tamplin and Mark Walsh, co-heads of At BofA, Khaled is based in London and lNANCEûCAPITALûMARKETSûTEAMûFORû%UROPE ûTHEû LEVERAGEDûlNANCEûCAPITALûMARKETSûFORû%-%!û REPORTSûTOû2AHULû3RINIVASAN ûHEADûOFû Middle East and Africa, leaving Bank of He will be based in London and starts in June. LEVERAGEDûlNANCEûFORû%-%! ûACCORDINGûTOûAû America after 14 years. Bishay held a number of roles at BofA across memo to staff seen by IFR, announcing his "ISHAYûWASûHEADûOFûLEVERAGEDûlNANCEû LEVERAGEDûlNANCEûORIGINATIONûANDûCAPITALû appointment. capital markets for EMEA at BofA, and the MARKETS ûFOCUSINGûONûCORPORATEûANDûlNANCIALû +HALEDûJOINEDû"OF!SûLEVERAGEDûlNANCEû 53ûBANKûHASûPROMOTEDûMurad Khaled to take SPONSORûCLIENTSûINûTHEû5+ûANDû%UROPEû#REDITû TEAMûINûûAFTERûFOURûYEARSûATû(03û Bishay’s role. 3UISSEûSAIDûHISûEXPERTISEûINûORIGINATION û Investment Partners in its European private "ISHAYûJOINSû#REDITû3UISSEûASûAûMANAGINGû structuring and syndication across leveraged credit investment team and seven years at DIRECTORûINûTHEûLEVERAGEDûlNANCEûCAPITALû loans and high yield bonds will be an asset, *0û-ORGANûINûITSû%UROPEANûLEVERAGEDûlNANCEû markets team and senior member of the and the hiring underscores its investment in origination team. syndicate team. He will report to Phillip ITSûLEVERAGEDûlNANCEûFRANCHISE Steve Slater, Claire Ruckin Citi picks leaders for ICG engagement, digital CITIGROUP has appointed Julia Zilberman as Zilberman was previously global head of Arora most recently managed the markets head of client engagement and marketing client engagement and marketing for markets ANDûSECURITIESûSERVICESûlNTECHûINVESTMENTû for its institutional clients group (ICG), a ANDûSECURITIESûSERVICESû3HEûJOINEDû#ITIûINû û portfolio and led a project to develop an end- newly created role based in London. It also after spending 11 years with the European to-end strategy and execution for ICG also appointed Sandeep Arora as head of Bank for Reconstruction and Development in electronic platforms. DIGITALûFORû)#'ûANDûCHIEFûINVESTMENTûOFlCERû senior roles in strategy, business development “We have seen further acceleration in the for the business. ANDûMARKETING ûANDûlVEûYEARSûWITHûTHEû adoption and engagement of our digital ICG includes banking, capital markets and International Finance Corporation. platforms during the Covid-19 pandemic,” advisory, markets, securities services, the 3HEûWILLûPARTNERûWITHû!NDREWû0ITT ûHEADûOFû SAIDû9BARRAûANDû3TUARTû2ILEY ûHEADûOFû)#'û private bank, and treasury and trade research and content for ICG, to coordinate technology and operations. “Critical to our solutions. Zilberman will join the ICG Citi’s original content and third-party success is our commitment to have ICG-wide management committee and report to Paco branded insights, the memo said. It said the consistency in our digital offerings, to make 9BARRA û#%/ûOFû)#' ûACCORDINGûTOûAûMEMOûTOû new role would also help create more us a simpler bank, one that is easier for our STAFFûSENTûBYû9BARRAûANDûSEENû EFlCIENTûRISKûANDûCONTROLSûINûITSûRELATIONSHIPSû clients to do business with,” they said. by IFR. with clients. Steve Slater German watchdog poaches Finma chief (Reuters) – Mark Branson, the head of under pressure for failing to spot wrongdoing. "A&INûINTOûAûSTRONGûGUARDIANûOFûTHEûlNANCIALû 3WITZERLANDSûlNANCIALûMARKETSûREGULATOR û 'ERHARDû3CHICK ûlNANCEûACTIVISTûATûLOBBYû MARKETS vû3CHICKûSAID Finma, is to become president of Germany’s group Finanzwende and a former member of "RANSON ûWHOûHOLDSûBOTHû3WISSûANDû"RITISHû lNANCEûWATCHDOGûBAFIN û'ERMANYSûlNANCEû the German parliament, said: “Hats off!” for nationality, became head of Finma in April ministry said on Monday, as part of a shake-up the appointment of an expert who also 2014 after holding various positions there at the regulator after the Wirecard fraud. comes from the outside. “But there is also a since 2010. He previously worked at Credit Current BaFin president Felix Hufeld is mammoth project ahead of Mr Branson. He 3UISSE û3"#û7ARBURGûANDû5"3 leaving at the end of the month after coming has to transform the often sleeping giant John O’Donnell, Riham Alkousaa

Please contact us if you have information about job moves: [email protected]

NATIXIS has Singapore, where CERBERUS and was instrumental Richard Meddings of Credit Suisse. hired Sanjeev he was Asia-Pacific CAPITAL in establishing CTS, a is to step down as He has been TSB Kumar as senior ex-Japan head of MANAGEMENT subsidiary of Cerberus chairman of British chairman for three country manager for sector coverage and said Matt Zames that is focused on bank TSB later this years and helped Singapore and head of acquisition finance. was stepping down the application of year, after its Spanish steer it through a South-East and South He has also worked as president of the technology and parent Sabadell turbulent period after Asia corporate and at Barclays, Citigroup, private equity firm advanced analytics shelved plans to sell an IT meltdown and investment banking, and RBS. and chairman of for businesses. Zames the unit. Meddings speculation about its based in Singapore. Cerberus Technology joined Cerberus in was previously the future. He will remain He replaces Pin Chua, Solutions, Reuters 2018 after 13 years at long-time finance until a successor is who is leaving the reported. Zames is a JPM. chief of Standard appointed. bank. Kumar joined former chief operating Chartered and from MUFG Bank in officer of JP Morgan sits on the board

International Financing Review March 27 2021 17

4 IFR PM 2376 p13-20.indd 17 26/03/2021 19:40:14 “This may trigger changes to deposit and capital strategies” UBS ANALYST SAUL MARTINEZ ON US BANKS, P15 Capital markets week ahead: Deliveroo, Ghana, Cellnex

ON YER BIKE Deliveroo prices its £1.6bn 3PANISHûPHONEûMASTûOPERATORûISûONûSOMETHINGû sterling loans have to move off Libor. The London IPO on Wednesday, with the listing of an acquisitions tear, following deals to buy company develops drugs that target the of the food delivery app getting a lot of towers from CK Hutchison and Iliad last year. central nervous system, with treatments for ATTENTIONûnûNOTûALLûOFûITûGOODû3OMEûOFûTHEû Proceeds from the latest capital raise will help severe pain and opioid dependency. 5+SûMOSTûIMPORTANTûINVESTORSûINCLUDINGû FUNDûTHEûPURCHASEûOFû ûMASTSûFROMû&RENCHû Aberdeen, Aviva, Legal & General and M&G rival Hivory. BRACE, BRACE Frontier Airlines also prices have indicated they will shun the offering its IPO on Wednesday, four years after it amid concerns about the deal structure and INITIALLYûlLEDûTOûGOûPUBLICûnûBEFOREûDITCHINGû the company’s treatment of its workers. THEûPLANSû0RIVATEûEQUITYûlRMû)NDIGOû That said, the IPO looks set to be a blow- Holdings, which bought the Denver-based OUTû4HREEûANCHORûINVESTORSûSNAPPEDûUPûû CARRIERûFROMû2EPUBLICû!IRLINESûINû ûISû of the shares before it even launched and LOOKINGûTOûCOLLECTû53MûFROMûTHEûDEALû)Tû the rest of the deal was covered at the top of FOLLOWSûAûSUCCESSFULû)0/ûFROMû3UNû#OUNTRYû the range within a couple of hours. Will Airlines earlier this month. 3HU ûWHOûFOUNDEDûTHEûCOMPANYûINû û WILLûCONTROVERSIALLYûRETAINûINmUENCEûWITHûHISû shares carrying around 20 times the voting power of all other shares.

SUPPLY AND DEMAND Chinese supply-chain lNANCEûPROVIDERû,INKLOGISûPRICESûITSû(ONGû Kong IPO on Wednesday, in a deal that it HOPESûWILLûRAISEû(+BNû53BN û Proceeds will provide the loss-making company, which counts Tencent as an early BACKER ûWITHûADDITIONALûlNANCEûTOûEXPANDû 3IXûCORNERSTONESûAREûEXPECTEDûTOûBUYûAûTHIRDû of the shares on offer. BID UPû#REDITû!GRICOLEûOFlCIALLYûLAUNCHESûITSû €740m buyout offer on Tuesday for Italian HOT PROPERTYû53ûPROPERTYûWEBSITEû lender Creval. It is hoping the purchase will #OMPASSûISûLOOKINGûTOûRAISEûALMOSTû53BNû increase its footprint in the country, where ACCRA-MONEY Ghana hopes to become the FROMûITSû.93%ûLISTINGûTHEûSAMEûDAYû4HEûLOSS it already has a subsidiary. But it shouldn’t lRSTû!FRICANûNATIONûTOûSELLûAûBONDûWITHûAûZEROû making company has already received hold its breath: shares have traded coupon this week. If successful, the sale will 53MûFROMû3OFT"ANKSû6ISIONû&UNDûANDû consistently above the offer price, and help ease the country’s onerous debt burden tapping equity markets will provide it with a expectations are that Creval will advise its and buy the government a bit of breathing new, liquid source of capital. Last year, more shareholders to sit tight and wait for a space. Contrary to expectations, it has THANû53BNûOFûPROPERTYûWASûSOLDûVIAûITSû higher price. avoided asking for a bailout – although the WEBSITE ûABOUTûûOFûALLû53ûHOMEûSALES World Bank still ranks its risk of overall debt distress as “high”. TAKING BOOKINGS The Maldives will make WHATûISûEFFECTIVELYûITSûPUBLICûDEBUTûINûTHEû53û GATHERING CLOUDSû0RIVATEûEQUITYûlRMû dollar market. While the archipelago nation LAST WEEK IN NUMBERS 0LATINUMû%QUITYûHOPESûTOûSELLû53BNûOFû of more than a thousand islands has two US$7bn –û"ONDûSALEûFROMû,3%' ûASûITûPAYSû junk bonds, in what will be one of the outstanding dollar issues, both were sold to OFFûTHEûBRIDGEûTAKENûFORûITSû53BNû biggest deals from outside the investment- a small group of investors. It has been hard PURCHASEûOFû2ElNITIV grade space in recent months. The bonds, hit by the collapse in tourism: in November, 36 hours – Guaranteed time off for sold through Imola Merger Corp, will help Fitch downgraded it to CCC from B, warning 'OLDMANû3ACHSûJUNIORûBANKERSûATû FUNDûITSû53BNûLEVERAGEDûBUYOUTûOFûCLOUDû of a sharp increase in its debt burden. weekends following outcry COMPUTINGûlRMû)NGRAMû-ICRO ûWHICHûITûISû TL8.48 – New low for the Turkish lira buying from beleaguered Chinese BETTER THE DEVIL YOU KNOW? French AGAINSTûTHEû53ûDOLLAR ûFOLLOWINGûCENTRALû conglomerate HNA. pharmaceutical company Ethypharm looks banker sacking SETûTOûPRICEûTHEûlRSTûLEVERAGEDûLOANûUSINGû US$16m – Renewable energy developer COLOURS TO THE MAST Cellnex shareholders 3ONIA ûWITHûCOMMITMENTSûFORûITSû 7IND&ORCESû3RIû,ANKAû)0/ ûTHEûBIGGESTû vote on Monday on plans to raise €7bn through £477m-equivalent facility due on April 1 – there in nine years a rights issue, its second in six months. The the same day that all new documented

18 International Financing Review March 27 2021

4 IFR PM 2376 p13-20.indd 18 26/03/2021 19:40:22 People &Markets SRB reprieve for UK law bonds surprises market

4HEû3INGLEû2ESOLUTIONû"OARDû32" ûSURPRISEDûTHEû BELFIUS HIT The exemption removes pressure on MARKETûWITHûAû5 TURNûONûITSûVIEWûONûTHEû-2%, The bank most immediately impacted was other banks to launch consent solicitations ELIGIBILITYûOFûBONDSûISSUEDûBYû%5ûBANKSûUNDERû "ELGIUMSû"ELlUS ûWHICHûHADûRECENTLYû and pay the associated costs. 5+ûLAWûWITHOUTûBAIL INûCLAUSES ûCATCHINGûOUTû launched a consent solicitation on two of its It also gives affected banks greater BELFIUS BANK and prompting issuers to reassess 4IERûûSECURITIESûISSUEDûUNDERû5+ûLAWûINû mEXIBILITYûINûMANAGINGûTHEIRû-2%,û their plans, while ultimately delivering a order to ensure the bonds’ MREL eligibility. resources. welcome reprieve for the industry. "ELlUSûWASûSEEKINGûTOûAMENDûTHEûTERMSûOFû DEUTSCHE BANK, for example, expected Following the end of the Brexit ITSûõMûOFûûNOTESûANDûõMûOFû ABOUTûõBNûOFûITSû5+ûLAWûBONDSûWOULDûLOSEû withdrawal transition period at the end of ûNOTES ûBOTHûISSUEDûINûûANDûDUEû eligibility this year. LASTûYEAR ûBONDSûGOVERNEDûBYû5+ûLAWûBECAMEû May 2026, to introduce a condition 4HEûBANKûHADûmAGGEDûITSûBUFFERûOVERû-2%,û subject to the same rules as other so-called RECOGNISINGû%5ûBAIL INûPOWERSû4HEûEXERCISEû REQUIREMENTSûWOULDûFALLûTOûAROUNDûõBNûINû “third country” laws. HADûRECEIVEDûAûGREENûLIGHTûFROMûTHEû32" û THEûlRSTûHALFûOFû ûDOWNûFROMûõBNûATû 4HEû32"ûHADûPREVIOUSLYûSAIDûEUROZONEûBANKSû according to a source familiar with the THEûENDûOFû ûPARTLYûASûAûRESULTûOFû5+ûLAWû MREL liabilities might be prevented from being matter. BONDSûEXPECTEDûDISQUALIlCATION effectively bailed-in because they are written “Both the timing and the content of the A source familiar with the matter said it is under the law of a country no longer part of the release was unexpected,” said the source. too early to say whether Deutsche will now %5û)TûHADûSUGGESTEDûSUCHûBONDSûMIGHTûNEEDû "ELlUSûCONSEQUENTLYûTOOKûUPûITSûOPTIONûTOû reduce its funding plan – which included additional clauses to qualify for MREL. cancel the LME on Tuesday. As the notes will õBNnõBNûOFû3.0ûISSUANCEûnûORûINCREASEûTHEû "UTûTHEû32"ûONû-ONDAYûSAIDûITûWILLû HAVEûENTEREDûTHEIRûlNALûYEARûTOûMATURITYû buffer it will look to maintain. The source CONSIDERûBONDSûISSUEDûUNDERû5+ûLAWûWITHOUTû when the exemption expires, they will said MREL is not the only driver of bail-in clauses to be MREL eligible, as long as already have lost MREL value. $EUTSCHESû3.0ûISSUANCE ûWITHûRATINGûAGENCYû they satisfy all other criteria and were issued The consent solicitation had been due to metrics an equally important factor. BEFOREû.OVEMBERûû ûWHENûTHEû32"û EXPIREûONû-ARCHûû4HEûBANKûHADûOFFEREDû “Either the issuance plan is cut . . . or we’ll published its resolvability expectations for INVESTORSûAûCONSENTûFEEûOFû ûWHICHûWILLû see an increase in the MREL surplus, either banks in the context of Brexit. now not be paid. Morgan Stanley and Nomura way it’s positive,” said the source. 4HEû32"ûSAIDûTHEûEXEMPTIONûWILLûAPPLYû were the solicitation agents. Analysts at ING said the new UNTILû*UNEûûûTOûENSUREûALIGNMENTûWITHû GRANDFATHERINGûPERIODûCAPTURESûAROUNDûû the grandfathering of the requirement to CLARITY of eurozone bail-in senior debt issued under introduce contractual recognition clauses in 7HILEûTHEû32"SûDECISIONûCAUGHTû"ELlUSû 5+ûLAWûANDûINCLUDEDûINûI"OXXûINDICESû OWNûFUNDSûINSTRUMENTSûPROVIDEDûFORûINû%5û unaware, market participants generally !Nû32"ûSPOKESPERSONûSAIDûTHEûAUTHORITYû capital requirements regulation. WELCOMEDûTHEûDECISION ûSAYINGûTHEû32"ûHADû had assessed the situation after Brexit Bankers questioned the timing of the taken a pragmatic approach. and concluded that “the best way forward decision, saying it had come late in the year for “This provides some welcome clarity for would be to grant a ‘grace period’, in order affected banks to be able to effectively plan their banks and investors, recognising the need to respect legitimate expectations from issuance and management of MREL resources. for an appropriate transitional approach banks that may have issued instruments “It’s far from ideal for [issuers],” said a while maintaining resolvability,” said Oliver years ago and, at the same time, ensure DCM banker. “It would have been helpful to Moullin, managing director for Brexit at the resolvability.” get this earlier on.” Association for Financial Markets in Europe. Tom Revell China delistings process starts in US The prospect of Chinese companies such as The Public Company Accounting 4HEû53û3ECURITIESûANDû%XCHANGEû ALIBABA GROUP HOLDING and BAIDU being booted off Oversight Board, which oversees the audits Commission last week said it was now 53ûEXCHANGESûISûGATHERINGûMOMENTUMûAFTERû of listed companies under the supervision issuing rules for how companies can THEûTOPû53ûSECURITIESûREGULATORûSAIDûITûWOULDû OFûTHEû3ECURITIESûANDû%XCHANGEû submit documentation to comply with implement a tough new law governing Commission, says it is unable to inspect the HFCA Act as it was required to do FOREIGNûCOMPANIESûTHATûLISTûINûTHEû53 THEûAUDITORSûWORKûONûû53 LISTEDû within 90 days of it becoming law. The Holding Foreign Companies companies with a combined market 4HEû3%#ûALSOûSAIDûITûWASûSEEKINGû Accountable Act, which would force CAPITALISATIONûOFû53TRN public comment regarding how it COMPANIESûTHATûDOûNOTûSUBMITûTOû53û /FûTHOSE ûûUSEûAUDITORSûBASEDûINû IDENTIlESûCOMPANIESûTHATûFAILûTOûMEETû oversight of their auditing processes for China or Hong Kong. The other 11 are the standards. three years to delist, was signed into law Belgian. 3HARESûOFûDUAL LISTEDû#HINESEûCOMPANIESû during the waning days of the Trump The bill also requires listed companies to fell sharply on Thursday with Alibaba and administration in December. prove they are not owned or controlled by "AIDUûLASTûSEENûDOWNûûANDûû Beijing routinely blocks overseas an entity of a foreign company and to respectively, while NETEASE and JD.COM were regulators seeking access to audit identify any executives who are Chinese DOWNûûANDûûRESPECTIVELY documents on national security grounds. #OMMUNISTû0ARTYûOFlCIALS Thomas Blott

International Financing Review March 27 2021 19

4 IFR PM 2376 p13-20.indd 19 26/03/2021 19:40:22 “WBC [Westpac] will not be the only Australian bank looking at its NZ operations” JEFFERIES BANK ANALYST BRIAN JOHNSON, P14

Indian banks grapple with new AT1 rules India’s state-owned banks got a tepid requirement, that perpetual securities must have to value the bonds to 10 years from response when they tested the subordinated be valued as if they were 100-year bonds, next year. bond market last week, with mutual funds saying instead it would phase in that rule over “Even if the market prices these rushing to sell their existing holdings the next two years, instead of enforcing it instruments to call, the mutual funds will despite a partial climbdown on a immediately. The deemed residual maturity have to take investment decision based on controversial new valuation requirement. for Basel III-compliant AT1 bonds will be 10 the 10-year valuation and duration of the INDIAN OVERSEAS BANK scrapped a planned years from April 1, rising to 20 years from portfolio,” said Mahendra Jajoo, chief 2SBNû53M ûOFFERINGûOFû YEARû4IERûû !PRILûû ûûYEARSûFROMû/CTOBERûûû INVESTMENTûOFlCERûOFûlXEDûINCOMEûATû-IRAEû BONDSûONû-ARCHû ûWHILEûBANK OF ANDûûYEARSûFROMû!PRILûûûONWARDS Asset Investment Managers. MAHARASHTRA managed to raise only Rs1bn The regulator eased the rules after the Funds which hold AT1 bonds that have a COMPAREDûTOûAûTARGETûOFû2SBNûFROMûAû lNANCEûMINISTRYûONû-ARCHûûCALLEDûONûITûTOû call option due in the next couple of years year Tier 2 issue after attracting a single withdraw the 100-year valuation rule as will continue to sell as the new rule local state-owned investor, according to a domestic mutual funds, which hold more breaches their duration limits and they will market source. THANûûOFûTHEû2SBNûOFûOUTSTANDINGû!4û still have to adhere to the stringent BANK OF INDIAûWASûTARGETINGûUPûTOû2SBNû securities, value the hybrids based on the INVESTMENTûCAPSû!ROUNDûûSCHEMESûSPREADû from Basel-III compliant Additional Tier 1 lVE YEARûCALLûOPTION ACROSSûûFUNDûHOUSESûHAVEûBREACHEDûTHEû bonds on Friday, and had received bids The new rules, which are set to come into CAPûOFûûPERûSCHEMEûINû!4ûANDû4IERûû totalling Rs7.12bn as IFR went to press, force on April 1, also state that a mutual debt securities, said Crisil in a note dated according to a market source. The clearing fund scheme should not invest more than March 14. yield for the BOI offering was not available ûOFûTHEûNETûASSETûVALUEûOFûITSûDEBTû “The demand for AT1 and Tier 2 at the time of writing. portfolio in AT1 and Tier 2 bonds or more instruments will be on the poorer side 4HEûTHREEûSTATE RUNûBANKSûAREûTHEûlRSTûTOû THANûûOFûTHEûNETûASSETûVALUEûINûSUCHû because mutual fund scheme with heavy test demand for subordinated capital instruments issued by a single entity. No exposure will have limited room to buy securities after India’s market regulator MUTUALûFUNDûSHOULDûOWNûMOREûTHANûûOFûAû these bonds,” Jajoo said. imposed investor concentration limits and single issuer’s AT1 and Tier 2 bonds. 9IELDSûAREûLIKELYûTOûREMAINûELEVATEDûASûTHEû strict valuation rules in a March 10 notice, only buyers left are provident funds and sending yields on bank capital securities YIELDS ELEVATED wealthy individuals. Provident funds can soaring. While the climbdown offered some relief, buy AT1 bonds which are rated AA and 4HEû3ECURITIESûANDû%XCHANGEû"OARDûOFû)NDIAû market participants said mutual funds will above, said debt bankers. last week partially backed down on one continue to sell AT1 bonds because they will Krishna Merchant Metrics buys Investec Australia loan book METRICS CREDIT PARTNERS has agreed to buy The value of the loan book was not !CCORDINGûTOû2ElNITIVû,0#ûDATA û)NVESTECû )NVESTECSûCORPORATEûANDûACQUISITIONûlNANCEû disclosed, but Reuters and local news has outstanding loans to Findex Group and loan portfolio in Australia as the latter exits ESTIMATEDûITûTOûBEûAROUNDû!BNû53M Intega Group. the local market. 3OMEûOFûTHEûNOTABLEûDEALSû)NVESTECûHASû 3OUTHû!FRICASû)NVESTECûANNOUNCEDûATûTHEû 4HEûPORTFOLIOûCOMPRISESûLEVERAGEDûlNANCEû PARTICIPATEDûINûINCLUDEûTHEû!MûlNANCINGû end of last year that it was withdrawing ANDûFUNDûlNANCEûLOANSûTOûCORPORATESûANDû BACKINGû0ACIlCû%QUITYû0ARTNERSûANDû#ARLYLEû from the Australian market after being funds across business services, Group’s buyout of iNova Pharmaceuticals in PRESENTûINûTHEûCOUNTRYûFORûMOREûTHANûû entertainment, retail, childcare, healthcare, û0%0Sû!MûACQUISITIONûlNANCINGûFORû years, as part of parent Investec Bank’s move MININGûSERVICESûANDûlNANCIALûSERVICESûINû the IntelliHub smart metering business in TOûFOCUSûONûITSûCOREûMARKETSûINûTHEû5NITEDû Australia. ûWHICHûWASûSUBSEQUENTLYûINCREASEDûTOû +INGDOMûANDû3OUTHû!FRICAû)NVESTECSû )NVESTECSûRESOURCEûlNANCEûANDûPROJECTû !MûINûûANDûTOû!MûINûûANDû corporate advisory business will be spun out ANDûINFRASTRUCTUREûlNANCEûLOANûPORTFOLIOSû AûRElNANCINGûOFûABOUTû!MûFORû1UADRANTû as a successor entity owned by the senior were not included in the sale process, which Private Equity’s LBO loan for Barbeques leadership team. was run by the CAF team 'ALOREûANDû3UPERû!MARTûINûû Mariko Ishikawa

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20 International Financing Review March 27 2021

4 IFR PM 2376 p13-20.indd 20 26/03/2021 19:40:22 BONDS

SSAR Corporates FIG High-Yield Structured Finance

FRONT STORY EUROPE HIGH-YIELD Junk bond green boom expected Green wave ﬁnally set to hit asset class 00#Sû3,"ûHADûAûBPûCOUPONûSTEP UP û WHICHûISûACTIVATEDûIFû00#ûDOESûNOTûCUTûITSû#/û ESG issuance already ahead of 2020 EMISSIONSûBYûûBYû$ECEMBERûû -EANWHILE û(APAG ,LOYDSûOFFERINGûINCLUDESû The European high-yield bond market is 'ERMANûCONTAINERûANDûSHIPPINGûCOMPANYû AûPOTENTIALûBPûCOUPONûSTEP UP ûASûWELLûASûAû lNALLYûSETûTOûCATCHûUPûWITHûOTHERûASSETûCLASSESû HAPAG-LLOYD "A"" ûLANDEDûõMûINû CALLûPRICEûINCREASE ûWHICHûISûLINKEDûTOûTHEû ONû%3' ûWITHûGREENûJUNKûEUROûBONDûISSUANCEû SUSTAINABILITY LINKEDûBONDSûnûTHEûSECONDûEVERû COMPANYûCUTTINGûTHEû#/ûINTENSITYûOFûITSû EXPECTEDûTOûBOOMûOVERûTHEûNEXTûûMONTHSû 3,"ûINûTHEû%UROPEANûHIGH YIELDûASSETûCLASSûnû mEETûBYûûFROMûûTOû *UNKûBONDûISSUERSûHAVEûNOWûPRICEDûMOREû WHILEû.OVELISû"A""n ûLANDEDûAûõMû h(APAG ,LOYDSûBONDûPRICEDûATû ûSO ûFORû THANûõBNûINûGREENûORûSUSTAINABILITY LINKEDû EIGHT YEARûNON CALLûTHREEûSENIORûUNSECUREDû ME ûINûRELATIVEûTERMSûAûBPûCOUPONûSTEP UPû EUROûBONDSûINûûnûRUNNINGûMOREûTHANû BOND ûWHICHûWASûTHEûCOMPANYSûDEBUTûBOTHûINû WOULDûBEûAûLITTLEûMOREûMEANINGFUL vûSAIDû õBNûAHEADûOFûTHEûVOLUMEûOFûGREENûBONDSû THEûGREENûANDûEUROûHIGH YIELDûBONDûMARKETS 2EZNICKûh"UTûPEOPLEûSHOULDûFOCUSûONûTHEû ISSUEDûOVERûTHEûENTIRETYûOFû ûACCORDINGû (APAG ,LOYDûLANDEDûAûSEVEN YEARûNON CALLû RELATIVEûSIZEûOFûTHEûSTEP UPûTOûTHEûOVERALLû TOû)&2ûDATA THREEûSENIORû3,"ûATûûONû4HURSDAY û COUPONûITSELFûnûANDûTHENûMAKEûAûDECISIONûONû !LLûSIXûCOMPANIESûTHATûHAVEûISSUEDûGREENû FOLLOWINGûPRICEûTALKûOFûTHEûûAREAû n WHETHERûITSûMEANINGFULûENOUGHûFORûYOUû)TSû BONDSûTHISûYEARûnû6IAû#ELERE û00# û&AURECIA û BP UPûTOûUSûINVESTORSûTOûDETERMINEûTHEû !RDAGH û.OVELISûANDû(APAG ,LOYDûnûAREû 4HEûCOMPANYûCAMEûTOûMARKETûFOLLOWINGû CREDIBILITYûOFûISSUERSûINûWHATûCANûBEûANû DEBUTûISSUERSûINûTHEûFORMATû 'REECESû00# ûWHICHûPRICEDû%UROPESûlRSTû OPPORTUNISTICûMARKETv h)ûTHINKûûWILLûBEûTHEûYEARûOFûHIGH YIELDû high-yield sustainability-linked bond on !NOTHERûINVESTORûSAIDûTHATûHEûTHOUGHTûHIGH INû%3' vûSAIDûAûCORPORATEûBONDûBANKERû -ARCHûû00#ûSOLDûAûõMûû3,"ûDUEû YIELDû3,"SûSHOULDûHAVEûHIGHERûSTEP UPSûTHANû (ISTORICALLY û%3' RELATEDûISSUANCEûHASû ûANDûCAMEûBACKûTOûMARKETûLESSûTHANûAû INVESTMENT GRADEûBONDSû)NVESTMENT GRADEû BEENûMOREûOFûAûBURDENûFORûHIGH YIELDû FORTNIGHTûLATERûTOûTAPûTHEûBONDûFORûAûFURTHERû 3,"SûTENDûTOûHAVEûAûBPûCOUPONûSTEP UP ISSUERS ûASûTHEYûAREûNOTûASûWELLûEQUIPPEDûTOû õM 5LTIMATELY ûATûTHISûSTAGEûOFûTHEû INVESTûINûSUSTAINABILITYûREPORTINGû"UT û h#OMPANIESûTHATûAREûLOOKINGûTOûTRANSITIONû DEVELOPMENTûOFû3,"S ûITSûDOWNûTOûINVESTORSû THANKSûTOûVARIOUSûPRESSURESûINCLUDINGûAû AREûGETTINGûREWARDEDûFORûTHATûWITHûANû TOûDECIDEûFORûTHEMSELVESûWHETHERûTHEûSTEP RECENTûCHANGEûINû%UROPEANû5NIONû INTERESTEDûBUYERûBASEû;INûTHEûCORPORATEûBONDû UPSûAREûMEANINGFULûENOUGH ûSAIDûAû REGULATIONS ûTHATûISûALLûABOUTûTOûCHANGE ûSAIDû MARKET=ûnûANDûINVESTORSûTHEMSELVESûWANTûTOû HIGH YIELDûBANKER 4RISHAû4ANEJA ûHEADûOFû%3'ûADVISORYûINû STRENGTHENûTHEûSUSTAINABILITYûCREDENTIALSûOFû h%VENTUALLY ûTHEREûMAYûBEûAû ORIGINATIONûûADVISORYûATû$EUTSCHEû"ANK THEIRûMAINûANDûTHEMATICûFUNDS vûSAIDû-ITCHû STANDARDISATION ûWHETHERûTHATûISûPERCENTAGEû h7EREûATûAûTIPPINGûPOINT vûSAIDû4ANEJAû 2EZNICK ûHEADûOFûRESEARCHûANDûSUSTAINABLEû OFûCOUPONûORûSOMETHINGûELSE vûHEûSAIDû h4HERESûINCREASEDûDEMANDûFORû%3'ûPRODUCTSû lXEDûINCOMEûATû&EDERATEDû(ERMES h7EREûJUSTûNOTûTHEREûYETûASûTHEû@TECHNOLOGYû INûTHEûMARKET ûWHICHûHASûCOMEûALONGûWITHû h#OMPANIESûAREûTRYINGûTOûGETûRECOGNITIONû ISûRELATIVELYûNEWûTOûTHEû(9ûMARKETv %UROPEANûREGULATION ûSOûMOSTûINVESTORSûAREû THATûTHEYREûONûTHEûRIGHTûPATHû!NDûITSû (APAG ,LOYDûPLANSûTOûREACHûWHATûANALYSTSû THINKINGûABOUTû%3'ûMOREûSTRUCTURALLYûnûTHEYû WORKINGûnûTHESEûBONDSûAREûPERFORMINGûSUPERû ATû,UCRORû!NALYTICSûCALLEDûANûhAMBITIOUSû HAVEûTOûCOMPLYûWITHûDISCLOSUREûREGULATIONSû WELLv GOALvûBYûPURCHASINGûNEWûANDûEFlCIENTûSHIPS û ASûWELLûASûTHINKINGûABOUTûWHATûTHEYREûDOINGû As sustainability-linked bonds are still a PHASINGûOUTûOLDûSHIPS ûUSINGûALTERNATIVEûFUELSû FROMûAûGREENûORûSUSTAINABILITYûPERSPECTIVEv RELATIVELYûNEWûFEATUREûOFûTHEûBONDûMARKET û ANDûINTRODUCINGûADDITIONALûEMISSION %UROPEANûHIGH YIELDûCOMPANIESûTHATûWANTû THEûINSTRUMENTSûAREûNOTûYETûSTANDARDISED REDUCINGûMEASURES TOûBURNISHûTHEIRû%3'ûCREDENTIALSûNOWûHAVEû 0ROCEEDSûFROMû(APAG ,LOYDSûDEALûWILLûBEû THEûCHOICEûBETWEENûISSUINGûAûGREENûBONDûORû GREEN BOND VOLUMES EXPLODE IN USEDûTOûREDEEMûTHEûCOMPANYSûEXISTINGû AûSUSTAINABILITY LINKEDûBOND EUROPE'S JUNK MARKET õMûS ûCURRENTLYûCALLABLEûATû 'REENûBONDSûAREûMOREûSUITEDûTOûCAP EX Green bonds issued (€m) %LSEWHEREûINûTHEûMARKET û.OVELISûLANDEDû HEAVYûSECTORSûLIKEûALUMINIUMûPRODUCERS û 3,500 ITSûõMûEIGHT YEARûNON CALLûTHREEûATûû SAIDû4ANEJA ûWHILEûSUSTAINABILITY LINKEDû ONû7EDNESDAY ûFOLLOWINGûPRICEûTALKûOFûn 3,000 Green bonds issued in the BONDSûAREûGOODûFORûCOMPANIESûLOOKINGûTOû ﬁrst three months of 2021 û)NITIALûPRICEûTHOUGHTSûWEREûSENTûOUTûATû MAKEûMOREûOFûAûHOLISTICûTRANSITION HIGHûSûTOûûONû4UESDAY 2,500 3,"SûAREûMEASUREDûAGAINSTûPERFORMANCEû .ETûPROCEEDSûOFû.OVELISSûBONDûWILLûHELPû

METRICSûORûKEYûPERFORMANCEûINDICATORS ûnû 2,000 REPAYûSOMEûOFûTHEûCOMPANYSû53MûINû RATHERûTHANûAûREQUIREMENTûTOûALLOCATEûBONDû TERMûLOANS ûWHILEûANûAMOUNTûEQUALûTOûTHEû PROCEEDSûTOûSPECIlCûGREENûPROJECTSûnûANDûSOû 1,500 NETûPROCEEDSûWILLûBEûALLOCATEDûTOûELIGIBLEû MAYûALLOWûMOREûJUNK RATEDûCOMPANIESûTOûISSUEû GREENûPROJECTS DEBTûTIEDûTOû%3'ûCONCERNS ûBANKERSûHAVEûSAID 1,000 0HYSICALûBOOKRUNNERSûJP Morganû"$ ûANDû Deutsche BankûLOGISTICS ûHANDLEDû.OVELISSû GREEN OR SLB? 500 BONDûBerenberg, Deutsche Bank and Goldman ,ASTûWEEKûSAWûTWOûNEWûBORROWERS ûBOTHû Sachs WEREûJOINTûGLOBALûCOORDINATORSûONû 0 WITHû%3'ûDEBUTS ûOPTûFORûGREENûANDû FY 2018 FY 2019 FY 2020 YTD 2021 (APAG ,LOYD SUSTAINABILITY LINKEDûBONDS ûRESPECTIVELY Source: IFR data Eleanor Duncan

International Financing Review March 27 2021 21

5 IFR Bonds 2376 p21-58.indd 21 26/03/2021 20:23:07 Euro FIG market back WEEK IN NUMBERS -1.588% to the races THE YIELD THAT 10-YEAR INFLATION-LINKED BUNDS ARE TRADING Bank issuance resumes but higher concessions required AT, WHICH IS A LOWER LEVEL THAN AT THE START OF THE YEAR "ANKSûRETURNEDûTOûTHEûEUROûMARKETûONû AVERSEûTOûBUYINGûATû ûANDûAREûDElNITELYû % 4HURSDAYûAFTERûAûLENGTHYûPAUSE ûWITHûUBS VERYûAVERSEûTOûBUYINGûATûNEGATIVEûYIELDSûINû -1.0 LAUNCHINGûAûTRIPLE TRANCHEûOPCOûSENIORû PRIMARYû4HATSûYOURûREALûmOORv -1.1

OFFERINGûTHATûALSOûTOOKûINûSTERLING ûWHILEû 4HEûBONDSûWEREûPRICEDûATûAûYIELDûOFû -1.2

SOCIETE GENERALEûLANDEDûAûõBNû4IERû û û"ANKERSûALSOûSAIDûPAYINGûBPûFORû -1.3

SHOWCASINGûAûNARROWûPRE %ASTERûISSUANCEû THEûCURVEûEXTENSIONûBETWEENûTHEûTWOû -1.4

WINDOW ûALBEITûONEûINûWHICHûHIGHERû TRANCHESûWASûAûWISEûMOVE -1.5

PREMIUMSûAREûREQUIREDû 4HEYûCONTRASTEDûTHEûOUTCOMEûTOû/0Sû -1.6 4HEûTRADES ûALONGSIDEûAûõMûSOCIALû DUAL TRANCHEû3.0ûTRANSACTIONûTHEûPREVIOUSû -1.7 SENIORûPREFERREDûBONDûOFFERINGûFROMû"0%2û WEEK ûWHICHûOFFEREDûlVEûANDû YEARû "ANCA ûWEREûTHEûlRSTûNEWûEUROûBENCHMARKû TRANCHESûJUSTûBPûAPARTû4HEûBANKû 2/21 11/01/21 18/01/21 15/03/21 25/01/21 15/02/21 01/03/21 01/0 04/01/21 22/03/21 22/02/21 08/03/21 ISSUESûFROMûBANKSûSINCEûTHEûPREVIOUSû DOWNSIZEDûTHEûõMû YEARûTOûõMû 08/02/21 4HURSDAYû UPONûINSUFlCIENTûDEMAND 4HEûPAUSEûFOLLOWEDûONEûOFûTHEûBUSIESTû h4HISûISûNOTûBAIL IN ABLE ûITSû$OUBLEû!û WEEKSûOFûTHEûYEARûINûTHEûEUROû&)'ûMARKET û RATEDûANDûITûSTARTEDûWITHûAûBPûCURVE ûSOû -0.706% WITHûõBNûOFûSUPPLYû3OMEûDEALSû THISûMAKESûAûLOTûMOREûSENSEûFORûINVESTORS vû THE YIELD ON 10-YEAR TIPS, WHICH STRUGGLEDûFORûMOMENTUM ûWITHû/0û SAIDûAûSECONDûBANKERûAWAYûFROMûTHEûLEADS IN CONTRAST TO ITS EUROPEAN #ORPORATEû"ANKûFORCEDûTOûDOWNSIZEûAû h)TSûNOTABLEûTHATûTHEûBOOKûFORûTHEû COUNTERPART, HAS RISEN SINCE THE SENIORûNON PREFERREDûISSUE YEARûWASûMUCHûSMALLERû7ITHûYIELDSû START OF THE YEAR, REFLECTING 7ITHûRATESûVOLATILITYûWEIGHINGûONûTHEû CONSISTENTLYûTICKINGûDOWNûVERSUSûTHEû DIFFERENT INFLATION EXPECTATIONS PRIMARYûMARKETûANDûNEWûISSUESûSTRUGGLINGû MASSIVEûSELL OFFûWEûSAW ûENTHUSIASMûFORûTHEû % TOûPERFORMûINûTHEûSECONDARYûSECTOR ûBANKSû LONGûENDûHASûCOOLEDûANDû)ûTHINKûPEOPLEûAREû 0

STAYEDûONûTHEûSIDELINESû REASSESSINGûWHETHERûlVESûANDûSEVENSûNOWû -0.2

"UTûAFTERûAûPERIODûOFûRELATIVELYûSTABILITYûINû OFFERûBETTERûVALUEv -0.4 RATESûANDûSECONDARYûSPREADS û4HURSDAYSû 4HEûaMû$ECEMBERûûTRANCHEûWASû -0.6 SUCCESSESûGAVEûAûPLATFORMûFORûFURTHERû LAUNCHEDûATûBPûOVERû'ILTS ûINSIDEû)04SûOFû -0.8 ISSUANCEûBEFOREûTHEû%ASTERûSLOWDOWNû4HEYû BPûAREAû"OOKSûEXCEEDEDûaMû -1.0 ALSOûSHOWEDûISSUERSûWILLûHAVEûTOûPAYûHIGHERû "ANKERSûSAIDûTHEûDEALûHIGHLIGHTEDûSTRONGû PREMIUMSûTHANûINûWEEKSûGONEûBYû DEMANDûATûTHEûFRONTûENDûOFûTHEûSTERLINGû -1.2

h4ODAYûWILLûHAVEûGIVENûAûLOTûOFûPEOPLEû MARKET ûINCLUDINGûFROMûMONEYûMARKETû 2/21

CONlDENCE vûSAIDûAûSYNDICATEûBANKERû FUNDSû 11/01/21 18/01/21 15/03/21 25/01/21 15/02/21 01/03/21 01/0 04/01/21 22/03/21 22/02/21 08/03/21 08/02/21 h)SSUERSûAREûNOWûLOOKINGûATûTHISûWINDOWû Helaba, IMI–Intesa Sanpaolo, Natixis, Nordea ANDûDEBATINGûWHETHERûITSûBETTERûTOûGOûNOWû and UBS WEREûJOINTûLEADûMANAGERSûONûTHEû ANDûPAYûAûSLIGHTLYûHIGHERûNEWûISSUEû lVE YEAR ûWHILEûUBS WASûSOLEûLEADûONûTHEû CONCESSIONûONûAûRELATIVELYûTIGHTûREFERENCEû OTHERûTRANCHESû US$15bn POINT ûORûWAITûUNTILûAFTERû%ASTER ûWHENû 3OCIETEû'ENERALEûALSOûPAIDûAûDOUBLE DIGITû THE AMOUNT THAT ORACLE RAISED MAYBEûWELLûHAVEûMOREûSTABILITYûBUTûALSOû CONCESSIONûONûITSûSELF LEDûõBNû4IERûû"OOKSû THROUGH A SIX-PART BOND THOUGH IT POTENTIALLYûWIDERûOUTRIGHTûFUNDINGûLEVELS û OPENEDûFORûTHEû*UNEûûNON CALLûû HAD TO PAY DOUBLE-DIGIT CONCESSIONS MEANINGûYOUûCOULDûGETûAûWIDERûTRANSACTIONû TRANSACTIONûWITHû)04SûOFûBPnBPû7ITHû FOLLOWING ITS DOWNGRADE INTO OVERALLv lNALûDEMANDûTOPPINGûõBN ûTHEûDEALûWASû TRIPLE B 5"3ûBAGGEDûTHEûBIGGESTûDEALûOFûTHEûDAYû LAUNCHEDûATûBPû WITHûAûTHREEûTRANCHEûOPCOûSENIORû &AIRûVALUEûWASûSEENûATûBPnBP û TRANSACTIONû EXTRAPOLATINGûFROMû3'Sûû.OVEMBERû !ûõBNûlVE YEARûTRANCHEûWASûLAUNCHEDû .#S ûWHICHûWEREûBIDûATûBP €13bn ATûBPûOVERûMID SWAPSûANDûAûõBNû YEARû "ANKERSûSAIDûISSUERSûWITHûSMALLERûFUNDINGû THE AMOUNT THE EU RAISED THROUGH ATûBPûnûBOTHûBPûINSIDEûINITIALûPRICEû PLANSûTHISûYEARûAREûLIKELYûTOûKEEPûISSUANCEûONû ITS LATEST SURE OFFERING, WHICH STILL THOUGHTSû"OOKSûWEREûLASTûREPORTEDûATû HOLDûUNTILûNEWûISSUEûCONCESSIONSûFALLû"UTûFORû GOT €81bn OF ORDERS, THOUGH MUCH õBNûFORûTHEûlVE YEARûANDûõBNûFORûTHEû OTHERSûTHEûMARKETûREMAINSûOPENû LESS THAN ITS PREVIOUS DEALS YEARû h4HEûMARKETûHASûCONSOLIDATEDûWELL vûSAIDûAû /BSERVERSûSAWûFAIRûVALUEûFORûTHEûlVE YEARû FOURTHûSYNDICATEûBANKERûh)TSûTHEûSAMEû ASûTIGHTûASûBP ûDEEMINGûTHEûCONCESSIONûOFû PATTERNûASû*ANUARY ûWHEREûWEûGETûAûLOADûOFû UPûTOûBPûPRAGMATICû SUPPLYûANDûTHENûWEûNEEDûTWOûORûTHREEûDAYSû €2.136bn h)ûREALLYûLIKEûTHEû5"3ûDEAL vûSAIDûAûBANKERû FORûTHEûMARKETûTOûBUILDûUPûCASHûAGAINûANDûFORû THE AMOUNT OF CORPORATE BONDS THE AWAYûFROMûTHEûLEADSûh9OUûCOULDûARGUEûITSûAû COMPSûTOûGRINDûTIGHTER ûANDûTHATSûEXACTLYû ECB BOUGHT (NET) IN THE WEEK TO MARCH BIGû.)0ûFORûAûlVE YEARûWITHûANûALMOSTûõBNû WHATûWEVEûSEENûTHISûWEEKû)TSûBACKûTOûTHEû 19 AS PART OF ITS CSPP COMPARED WITH BOOK ûBUTûYOUûHAVEûTOûKEEPûONEûEYEûONû RACESv €2.237bn THE WEEK EARLIER WHEREûTHEûSWAPûRATEûISû0EOPLEûAREûQUITEû Tom Revell In total, it has bought €93.08bn

22 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 22 26/03/2021 20:23:10 BONDS SSAR

TRANSACTIONûAFTERûWEûWENTûOUTûWITHû the same maturity as it amassed orders in GUIDANCE ûANDûEVENûAFTERûWEûSETûTHEûPRICEûATû EXCESSûOFû53BNûFORûITSû53BNû-ARCHû SSAR PLUSûBPûTHEûBOOKSûCONTINUEDûTOûGROWv û!C2EGû3ûNOTEûISSUE "OOKSûCLOSEDûINûEXCESSûOFû53BN ûRISINGû 4HEûSPREADûWASûSETûATûMID SWAPSûPLUSû FROMûOVERû53BNûATû)O)Sû3OMEûûOFûTHEû BP ûTIGHTENINGûBYûBPûFROMû)04SûVIAûBank US DOLLARS ALLOCATIONûWENTûTOû.ORTHû!MERICANû of America, BMO, RBC and TD. 4HEREûWASûLESSû INVESTORS ûAûLARGERûSHAREûTHANûNORMALûFORûTHEû THANûBPûOFûNEWûISSUEûCONCESSIONûONûOFFER û RENTENBANK AND OMERS CAPITALISE BORROWERû ACCORDINGûTOûAûLEADû ON LACK OF DOLLAR SUPPLY !SûAû%UROPE BASEDûBORROWER ûSEVERALû h#OMPAREDûTOûITSûPEERS ûTHEûTIERûONEû FACTORSûHADûTOûALIGNûFORûFUNDINGûLEVELSûINû TIGHTERû33!S ûITûISûSTILLûQUITEûANûATTRACTIVEû 'ERMANûAGENCYûRENTENBANKûANDû/NTARIOSû DOLLARSûTOûBEûATTRACTIVE ûACCORDINGûTOû'OEBELû SPREADû2ENTENBANKûISûAûPERFECTûEXAMPLE û PENSIONûFUNDûOMERSûVENTUREDûINTOû53ûDOLLARSû h4HEûTRANSACTIONûWASûROUGHLYûONûAûPARû THERESûMOREûTHANûENOUGHûROOM ûESPECIALLYû ONû4UESDAYûWITHûSUCCESSFULûlVE YEARûDEALSû WITHûWHATûWEûCOULDûACHIEVEûINûTHEûEUROû WHENûYOUûHAVEûSLIGHTLYûDIFFERENTûPRICINGû THATûWEREûWELL RECEIVEDûAFTERûTHEREûBEINGûAû MARKET ûPROBABLYûONLYûBPnBPûLESSû PARAMETERS vûHEûSAIDû LIMITEDûAMOUNTûOFû33!ûSUPPLYûINûTHEû ATTRACTIVEûTHANûAûEUROûBENCHMARKûWOULDû &INALûBOOKSûCLOSEDûINûEXCESSûOFû53BN û CURRENCYûOFûLATEû HAVEûBEEN vûHEûSAIDû RISINGûFROMû53BNûATû)O)Sû 4HEûWEEKûBEFOREûLAST ûTHEûSOLEû33!û h7EûFELTûTHATûTHEûMARKETûWASûINûGOODû TRANSACTIONûINûDOLLARSûWASûAû53BNûlVE SHAPEûANDûITûISûDIFlCULTûTOûGETûTHEûIDEALûPOINTû ALL INTERNATIONAL GREEN BONDS YEARûFROMûTHEû!FRICANû$EVELOPMENTû"ANK û INûTIMEûWHENûCREDITûSPREADSûAREûTHEûTIGHTEST û BOOKRUNNERS: 1/1/2021 TO DATE WITHûTHEûPIPELINEûSLOWINGûCONSIDERABLYûDUEû THEûCROSS CURRENCYûWORKSûBESTûINûOURûFAVOUR û Managing No of Total Share TOûRISINGûVOLATILITY ûACCORDINGûTOûAûLEADûONû WHENûTHEREûISûNOûCOMPETINGûSUPPLYûANDû bank or group issues US$(m) (%) 2ENTENBANKSûDEAL WHENûTHEREûISûSTRONGûINVESTORûDEMANDv 1 JP Morgan 42 8,369.52 8.8 h4HERESûBEENûLESSûDOLLARûSUPPLYûOFûLATE û 2ENTENBANKûHASûRAISEDûDOLLARSûONûTWOû 2 BNP Paribas 32 7,830.88 8.2 FUNDAMENTALLYûBECAUSEûOFûTHEûINCREASEDû OCCASIONSûALREADYûINû ûAû53Mû 3 Credit Agricole 26 6,899.68 7.2 VOLATILITY ûBUTûITSûGONEûREALLYûWELLûTODAY vû SEVEN YEARûINû&EBRUARYûANDûAû53MûTAPû 4 Citigroup 30 5,988.33 6.3 SAIDûTHEûLEAD OFûITSû*ANUARYûûPAPERûTHEûMONTHû 5 HSBC 31 4,933.62 5.2 h)ûTHINKûTHEREûHAVEûBEENûAûCOUPLEûOFû BEFORE 6 Deutsche Bank 31 4,834.17 5.1 FACTORSûHELPINGû&IRST ûWEûHAVEûHADûLESSû )NCLUDINGûTHEûLATESTûDEAL ûTHEûISSUERûHASû 7 Bank of America 29 4,537.93 4.8 DOLLARûSUPPLYûINûGENERALûFROMûTHEûHIGH RAISEDûõBN EQUIVALENT ûORû ûOFûITSû 8 NatWest Markets 12 3,756.86 3.9 QUALITYûNAMES ûANDûTHEREûHASûALSOûBEENûAûBITû õBNûFUNDINGûTARGETûFORûTHEûYEARû 9 Barclays 22 2,918.98 3.1 MOREûOFûAûSTABLEûBACKDROPûWITHûYIELDSûRANGE 10 Banca IMI 6 2,829.96 3.0 BOUNDûATûTHEûMOMENTv NO OVERLAP Total 139 95,352.01

4HEûSPREADûFORû2ENTENBANKSû53BNû 4HEREûWASûNOûSUGGESTIONûOFûANYû Excludes social bonds and mixed use of proceeds. -ARCHûû'LOBALûNOTEûISSUEûWASûSETûATûMID CANNIBALISATIONûDESPITEû/-%23ûTARGETINGû Source: Refinitiv SDC code: JG1 SWAPSûPLUSûBP ûORûBPûINSIDEû)04S ûVIAûBank ALL INTERNATIONAL BONDS (ALL CURRENCIES) ALL BONDS IN EUROS of America, Citigroup, JP Morgan and NatWest BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE Markets. 4HEREûWASûBPnBPûOFûNEWûISSUEû Managing No of Total Share CONCESSIONûONûOFFER ûACCORDINGûTOûTHEûLEADû Managing No of Total Share bank or group issues US$(m) (%) bank or group issues €(m) (%) h)ûTHINKûWEûPICKEDûAûNICEûWINDOWû7Eû ANNOUNCEDûTHEûMANDATEûONû-ONDAYûBUTûWEû 1 JP Morgan 463 109,716.14 8.1 1 BNP Paribas 132 36,723.23 8.2 WAITEDûFORûTHEû53ûOPENûJUSTûTOûSEEûHOWû 2 Citigroup 355 95,836.55 7.0 2 JP Morgan 119 32,370.70 7.2 MARKETSûWOULDûOPENûBECAUSEûTHEREûHASû 3 Bank of America 349 79,948.16 5.9 3 Deutsche Bank 94 27,663.65 6.2 CERTAINLYûBEENûAûLOTûOFûVOLATILITYûINûTHEû 4 Barclays 291 73,463.19 5.4 4 Citigroup 88 25,475.99 5.7 4REASURYûMARKETûOFûLATEûANDûWEûWANTEDûTOû 5 BNP Paribas 275 72,213.18 5.3 5 SG 78 25,100.15 5.6 ENSUREûTHATûWEûHADûAûSTABLEûMARKETû 6 Goldman Sachs 257 69,879.51 5.1 6 Barclays 87 24,553.08 5.5 ENVIRONMENT vûSAIDû3TEFANû'OEBEL ûTREASURERû 7 Deutsche Bank 270 67,813.60 5.0 7 Goldman Sachs 76 23,943.72 5.3 ATû2ENTENBANKû 8 Morgan Stanley 220 63,543.70 4.7 8 HSBC 85 22,683.16 5.0 h7EûWEREûTHEûONLYû4RIPLEû!û33!ûBORROWERû 9 HSBC 277 62,193.21 4.6 9 Credit Agricole 88 20,837.96 4.6 INûTHEûMARKET ûWHICHûALSOûBODESûWELLû7Eû 10 SG 122 39,638.46 2.9 10 UniCredit 92 19,452.30 4.3 Total 1,607 1,360,469.41 Total 478 449,448.05 HADûAûVERYûSTRONGûINVESTORûRESPONSEûFROMû Including Euro, foreign, global issues. Excluding equity-related debt, Including Euro-preferreds. Excluding equity-related debt, THEûOUTSETû$EMANDûCONTINUEDûTOûGROWûWELLû US Global ABS/MBS. US Global ABS/MBS. BEYONDûTHEûSIZEûWEûHADûINûMINDûFORûTHEû Source: Refinitiv SDC code: J1 Source: Refinitiv SDC code: N1

EUROPEAN SOVEREIGN BOND AUCTION RESULTS WEEK ENDING MARCH 26 2021 Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover Mar 22 2021 Belgium €627m 1.000 Jun 22 2026 –0.538 3.29 Mar 22 2021 Belgium €1.485bn 0.000 Oct 22 2031 –0.013 1.90 Mar 22 2021 Belgium €890m 0.400 Jun 22 2040 0.495 1.64 Mar 23 2021 Netherlands €1.775bn 2.500 Jan 15 2033 –0.149 — Mar 23 2021 UK £2.25bn 1.750 Jan 22 2049 1.295 2.19 Mar 24 2021 Germany €3.281bn 0.000 Feb 15 2031 –0.360 1.48 Mar 24 2021 UK (i) £350m 0.125 Nov 22 2056 –1.972 2.17 Mar 25 2021 Italy €4bn 0.000 Nov 29 2022 –0.390 1.42 Mar 25 2021 Italy (€i) €1.24877bn 0.400 May 15 2030 –0.600 1.31 Source: IFR

International Financing Review March 27 2021 23

5 IFR Bonds 2376 p21-58.indd 23 26/03/2021 20:23:10 h)TSûAûGREATûTRANSACTION ûMOREûTHANûTHREEû TIMESûSUBSCRIBEDûATûTHEûENDûWITHûû INVESTORSûINûTHEûBOOK vûSAIDûTHEûLEADû SURE finishing line in h!SûFORûTHEûLACKûOFûSUPPLY ûITûALWAYSûHELPSû 7EûHADûONEûlXED RATEûBENCHMARKûLASTûWEEKû ANDûNOWûWEVEûHADûTWOûTRADES ûNEITHERûOFû sight for EU WHICHûWEREûHUGE ûSOûTHATûDElNITELYûHELPSv SSAR Demand more muted for €13bn dual-tranche deal The issuer has not brought a deal in the CURRENCYûINûALMOSTûAûYEAR ûWITHûITSûLASTû The EUROPEAN UNION brought a €13bn dual- Since a record-breaking debut drew order TRANSACTIONûAû53BNûTHREE YEARûLASTû!PRIL tranche social deal last Tuesday that leaves books in excess of €233bn last year, there has the supranational within striking distance of been a steady decline in demand for SURE completing its funding for the SURE programme, transactions, with an approximately 25% drop in EUROS though there were signs that the unbridled order books between both the first and second, demand that has been a feature of its deals from and second and third dual-tranche offerings. UNEDIC DRAWS A CROWD WITH the start is ebbing away. This deal was the fourth dual-tranche outing 10-YEAR SOCIAL Although the deal was comfortably covered, it and saw order books fall by roughly 27% attracted less demand than previous transactions compared with the third deal in this format. UNEDIC brought the only SSA deal last by the time final terms were announced, with “I think the books have normalised,” said 7EDNESDAY ûAûSOUGHT AFTERû YEARûSOCIALû combined books of €96.5bn compared with an Jamie Stirling, global head of SSA DCM at BNP TRANSACTIONûTHATûWASûALMOSTûlVEûTIMESû average final book of €180bn across the three Paribas. SUBSCRIBEDûANDûSHOWEDûTHATûDEMANDûINûTHEû previous dual-tranche deals. “Obviously, pricing is clearly a lot tighter than MARKETûHADûNOTûWANEDûFOLLOWINGûTHEû “Given that fair value is very straightforward it was, so you would expect there to be less %UROPEANû5NIONSûõBNûDUAL TRANCHEûDEALû now, particularly compared with the first SURE exuberance for these types of trades given that THEûDAYûBEFOREû issuances, and that the pick-up in terms of new they’re not offering the return that those early h)TSûGONEûVERYûWELL ûALLûINûALLû7EûWEREû issue premium is slightly lower, the performance ones were.” FAIRLYûCERTAINûGOINGûINTOûITûBUTûTHERESûBEENû afterwards that can be expected is slightly less,” The spread for the €8bn of 0% March 2026 ABSOLUTELYûNOûSATURATIONûEFFECTûFROMûTHEû%5û said a member of the EU funding team. notes was set at mid-swaps less 14bp, or 2bp YESTERDAY ûIFûANYTHINGûTHEûMOMENTUMûHASû “So, of course, for that reason, I would think that inside guidance. Books closed in excess of PROBABLYûHELPED vûSAIDûAûLEADûMANAGERû some of those investors looking for performance €46.5bn, including €1.75bn of JLM interest when are maybe less keen to put in orders.” final terms were announced. ALL INTERNATIONAL US$ BONDS BOOKRUNNERS: 1/1/2021 TO DATE

Managing No of Total Share 4HEûSPREADûFORûTHEûõBNûû-AYûûSOCIALû 4HEûISSUERSûONLYûOUTINGûSINCEûTHENûWASûAûõBNû bank or group issues US$(m) (%) NOTEûISSUEûWASûSETûATûBPûOVERûTHEûû-AYû û-AYûûSOCIALûBENCHMARK ûWHICHûATTRACTEDû 1 JP Morgan 305 66,221.69 9.4 û/!4 ûTIGHTENINGûBYûBPûFROMûGUIDANCEûVIAû DEMANDûOFûMOREûTHANûõBNûLASTûMONTH 2 Citigroup 253 57,754.61 8.2 Barclays, Bank of America, BNP Paribas, Deutsche Bank h4OûPRINTûõBNûWITHûAROUNDûBPûNEWûISSUEû 3 Bank of America 264 53,842.96 7.6 and JP Morgan. 0RICINGûOFFEREDûAûBPûNEWûISSUEû PREMIUMûISûNOûSMALLûFEAT ûESPECIALLYûGIVENû 4 Morgan Stanley 156 43,544.62 6.2 CONCESSION ûACCORDINGûTOûTHEûLEAD THEûFACTûWEûAREûAPPROACHINGûTHEûENDûOFû 5 Goldman Sachs 179 39,100.72 5.6 )NCLUDINGûTHISûDEAL û5NEDICûHASûRAISEDû QUARTERûANDûONEûCOULDûARGUEûTHATûTHINGSû 6 Barclays 171 35,984.61 5.1 ALMOSTûHALFûOFûITSûõBNûFUNDINGûTARGETûFORû USUALLYûSTARTûTOûQUIETENûDOWNûNOW ûSOûITSû 7 Credit Suisse 172 32,169.30 4.6 û VERYûPOSITIVEûONûTHATûFRONT vûSAIDûTHEûLEADû 8 Deutsche Bank 157 28,490.28 4.0 &INALûORDERûBOOKSûWEREûINûEXCESSûOFû h)TûDOESûSEEMûLIKEûWEVEûBROKENûTHEûBACKûOFû 9 HSBC 141 24,712.61 3.5 õBNûINCLUDINGûõMû*,-ûINTEREST û THEûSUPPLYûFORûTHEûTIMEûBEINGûANDûITSûNOTûLIKEû 10 Wells Fargo 148 24,544.49 3.5 CONSIDERABLYûLARGERûTHANûTHEûõBNûALSOû WEREûGOINGûTOûHAVEûANOTHERûDELUGEû)FûWEûSEEû Total 787 704,150.85 INCLUDINGûõMû*,-ûINTEREST ûAMASSEDûFORû VOLUMESûSTARTûTOûTICKûUPûAGAIN ûTHENûMAYBEû Including Euro, foreign and global issues. Excluding equity-related debt, US Global ABS/MBS. THEûISSUERSûPREVIOUSû YEARûDEAL ûAûõBNû THINGSûGETûAûTOUCHûCHEAPERûBUTûEVENûTHENûITû Source: Refinitiv SDC code: O1 ûSOCIALûNOTEûOFFERINGûLASTû.OVEMBERû DOESNTûFEELûLIKEûWEDûBEûTHATûIMPACTEDûBYûITv 3ENTIMENTûHASûBEENûGIVENûAûLIFTûAFTERûTHEû ALL US DOLLAR FIXED-RATE GLOBALS ALL SOVEREIGN BONDS IN EUROS %#"ûANNOUNCEDûLASTû-ONDAYûWEEKLYû0%00û BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE PURCHASESûOFûõBNûTHROUGHûTOû7EDNESDAYû Managing No of Total Share Managing No of Total Share -ARCHû ûAûSIGNIlCANTûJUMPûFROMûTHEûõBNû bank or group issues US$(m) (%) bank or group issues €(m) (%) THEûPREVIOUSûWEEKûANDûTHEûHIGHESTûLEVELûINû 1 Citigroup 53 20,797.31 10.0 1 JP Morgan 17 13,017.00 11.6 MOREûTHANûTHREEûMONTHS 2 JP Morgan 56 18,131.05 8.7 2 Citigroup 13 10,509.26 9.4 4HEûDATAûSERVEûASûCONlRMATIONûTHATûTHEû 3 Bank of America 56 17,986.80 8.6 3 BNP Paribas 16 9,951.06 8.9 CENTRALûBANKûISûFOLLOWINGûUPûONûITSûPROMISEû 4 Morgan Stanley 37 17,126.12 8.2 4 Deutsche Bank 12 8,732.35 7.8 TOûDELIVERûANûINCREASEûINû0%00 ûACCORDINGûTOû 5 Barclays 32 13,672.03 6.5 5 Nomura 9 7,747.22 6.9 THEûLEADû 6 Deutsche Bank 22 11,848.92 5.7 6 HSBC 8 7,432.19 6.6 h)ûTHINKûTHEû0%00ûANNOUNCEMENTûWITHûTHEû 7 TD Securities 23 10,963.93 5.2 7 SG 7 7,067.24 6.3 lGURESûATûTHEûBEGINNINGûOFûTHEûWEEKûHASû 8 Goldman Sachs 30 10,644.69 5.1 8 Credit Agricole 8 6,570.10 5.9 HELPEDûEVERYTHINGû$Oû)ûTHINKûWEûHAVEûROOMû 9 RBC 25 8,754.52 4.2 9 Morgan Stanley 8 5,696.46 5.1 TOûGOûSIGNIlCANTLYûTIGHTERûAGAINûINûTHEû33!û 10 Credit Suisse 17 7,486.97 3.6 10 Barclays 8 5,098.13 4.5 SPACE û.OTûREALLYû"UTûDOû)ûTHINKûDEALSûCANû Total 113 208,924.97 Total 39 112,109.33 KEEPûGETTINGûDONEûWITHûBPûORûZEROûNEWû

Excluding equity-related debt, ABS/MBS. Excluding ABS/MBS. ISSUEûPREMIUMûATûTHESEûTIGHTûLEVELS û9ES û Source: Refinitiv SDC code: O5 Source: Refinitiv SDC code: N4 THATûDOESûSEEMûTOûBEûTHEûCASEv

24 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 24 26/03/2021 20:23:10 BONDS SSAR

The spread on the €5bn of 0.45% May 2046 looking at it from a broad-stroke perspective is so far by the European Council to 18 member paper also tightened by 2bp, landing at plus 1bp very much versus their own curve now or EIB and states under SURE, with €36bn of that coming in and attracting a similar level of demand, with KfW,” he said. the first quarter of 2021. books over €50bn, including €1.75bn of JLM “From that perspective, I think it’s still very “The sizes are huge and I think it is easy to interest. much in the supra category. When issuance forget that,” said Stirling. “For me, one of the key Both legs offered around 1.5bp of new issue volumes ramp up significantly with the [Next takeaways is the fact that they are doing regular premium. Generation] programme, then you will probably trades of some size with little market volatility have another relative value metric in play, but for and little new issue premium, which really does SUPRAS STILL BEST COMPARABLE now it’s based on its own curve and supras.” illustrate the fact that they have cemented their The 25-year notes were priced significantly through After offering a little more concession than credit so well with the investor base.” France, with long-end SURE paper continuing to usual on its previous outing, a €9bn 0.2% June Despite a slight delay for the inaugural trade far tighter than long-dated OATs, although 2036 note issue that was priced on March 9, the transaction, the pace of issuance since the this is more due to the shape of the French yield issuer reverted to previous practice this time out, programme’s debut deal last October has been curve, according to a second banker. according to the second banker. impressive, with the issuer raising the funds “The OAT curve is quite steep when you go “The one before this was around 3bp across six outings comprising four dual-tranche out past 15 years, and even after 10 years it gets concession, with the ones before that 2bp offerings and two single-tenor deals. steeper quite aggressively,” he said. concession, and this I see at 2bp too,” he said. “They’ve done it without really any negative “From that perspective, if you look at what the “The last one offered a bit more concession, impact on the wider space as well,” said another SSA sector in general has been offering in terms around another 1bp, but the market they came banker. “When we were discussing this and of spread, you very rarely find anything OAT- into last time was a lot more volatile than this saying everyone else would be blown wider positive when you go 15 years or longer.” time. Also, the transaction had to be a success because this was going to be cheap, actually While comparisons with sovereigns come given the proximity between the two trades, and what it has become is arguably the tightest easily, and the SURE curve does closely resemble it was a single-tranche deal not a dual-tranche, reference and everything else has benefited from the Austrian government curve, for the time so you can argue that the concentration there it. Maybe we shouldn’t have been such naysayers being supras still offer the best comparables, requires a little more concession.” in the beginning.” according to the banker. BNP Paribas, Bank of America, DZ Bank, “Some people will look at it versus NEARLY THERE Morgan Stanley and Societe Generale were joint Netherlands, some versus France, but the way I Including the latest deal, the issuer has now lead managers on the deal. look at it and the way I think the market has been raised €75.5bn of the €90.3bn of loans approved David Cheetham

NIB TAP CLOSES GAP ON PEERS MOREûLIQUIDûNAMES ûSOûITûLAGSûBEHINDûMOREû 7HILEûTHEûEXPECTATIONûISûTHATûISSUANCEûINû LIQUIDûPEERSûLIKEû+F7ûANDû%)"û.)"ûHASûBEENû GENERALûWILLûSLOWûFURTHERûNEXTûWEEKûAHEADû NORDIC INVESTMENT BANK and SCHLESWIG-HOLSTEIN SUFFERINGûAûBITûFROMûTHAT ûSOûITSûREALLYû OFûTHEû%ASTERûHOLIDAYS ûTHEREûISûSTILLûSCOPEûFORû ADDEDûTOûTHEûSTREAMûOFûEUROû33!ûSUPPLYûONû PLEASINGûFORûTHEMûTOûCOMEûOUTûANDûPRICEûATûAû SOMEûOPPORTUNISTICûDEALS ûACCORDINGûTOûTHEû 4HURSDAYûWITHûWELL RECEIVEDûDEALSûTHATûWEREû VERYûCOMPETITIVEûLEVELûVERSUSûTHOSEûISSUERSv SECONDûBANKER COMFORTABLYûCOVEREDûDESPITEûOFFERINGû +F7SûõBNûû$ECEMBERûûNOTEûWASû h)ûTHINKûWEûWILLûHAVEûAûBITûOFûANû%ASTERûBREAKû MINIMALûNEWûISSUEûCONCESSIONSû QUOTEDûONû4HURSDAYûAROUNDûMINUSûBPûBID û NEXTûWEEKû4HISûWEEKûWASûAûBITûMOREûMUTEDûINû h)TûWASûEXTREMELYûSMOOTHû)TûWASûAûGOODû ACCORDINGûTOû4RADEWEBû MYûOPINION ûAPARTûFROMûTHEû%5 vûHEûSAIDû DAYûFORûEXECUTIONûCLEARûOFûANYûMAJORû &INALûORDERûBOOKSûFORûTHEû.)"ûDEALûWEREû h7EûSHOULDNTûUNDERESTIMATEûTHEûFACTûTHATû COMPETINGûSUPPLY vûSAIDûANû.)"ûLEADû MOREûTHANûõBN ûEXCLUDINGûLEADûINTEREST û !PRILûSEEMSûTOûBEûQUITEûBUSYûWITHûAûLOTûOFû 4HEûSPREADûFORû.)"SûõMûNO GROWûTAPû VIAûBank of America, Danske Bank and Societe TRAFlCû)ûTHINKûTHEREûWILLûBEûAûCOUPLEûOFûGUYSû OFûITSûû!PRILûûENVIRONMENTALûBONDûWASû Generale. LOOKINGûFORûAûWINDOWûNEXTûWEEKv SETûATûMID SWAPSûMINUSûBP ûTIGHTENINGû BPûFROMûGUIDANCE TIGHT LAENDER h7EûSAWûTHEûBONDûTRADINGûATûMINUSûBPûINû 3CHLESWIG (OLSTEINûRAISEDûõMûWITHûANû STERLING THEûMORNING ûSOûREALLYûITSûQUITEûAû !PRILûûNOTEûTHATûAMASSEDûlNALûORDERSûOFû REMARKABLEûOUTCOME vûSAIDûTHEûLEADû MOREûTHANûõBN ûINCLUDINGûõMûLEADû UK LOOKS TO RESTORE FAITH h)TSûAûRAREûNAMEûINûEUROS ûTHEYûTYPICALLYû INTERESTû WITH SECOND SUKUK DEAL DOûAûDEALûANNUALLYû4HEYûHAVEûAûPRETTYûSTRONGû 4HEûSPREADûWASûSETûATûMID SWAPSûLESSûBP û GROUPûOFûSUPPORTERSûLOOKINGûFORûTHIS ûWHICHû BPûINSIDEûGUIDANCEûVIAûDekaBank, Erste The UK DMOûHASûSUCCESSFULLYûBROUGHTûITSû ISûREmECTEDûINûTHEûPRICINGûHEREûnûTHEYûGOTûAû Group, Helaba, Natixis and UniCredit. 0RICINGû SECONDûSUKUKûOFFERING ûALMOSTûSEVENûYEARSû REALLYûGOODûLEVELv OFFEREDûZEROûNEWûISSUEûCONCESSION û AFTERûITSûDEBUTûTRANSACTIONûINûTHEûFORMAT ûASû 4HEREûISûNOWûõBNûOUTSTANDINGûINûTHEû ACCORDINGûTOûAûSECONDûBANKER THEûISSUERûAIMSûTOûINCREASEûITSûPRESENCEûINûTHEû BONDûAFTERûITûWASûLAUNCHEDûLASTû!PRILûATû /Nû&RIDAY ûRHINELAND-PALATINATEûFAILEDûTOû MARKETûANDûMOVEûTOWARDSûBECOMINGûAûLEADERû õM ûTHEûISSUERSûLASTûOUTINGûINûTHEû UNEARTHûAûGREATûDEALûOFûINTERESTûFORûITSûõMû INû)SLAMICûlNANCEûINûTHEû7ESTERNûWORLD CURRENCY ûWITHûTHEûINCREASEûINTENDEDûTOû û!PRILûûNOTE ûWITHûNOûUPDATEû h)ûTHINKûITSûFAIRûTOûASSUMEûTHEREûISûAû IMPROVEûLIQUIDITY ûACCORDINGûTOûTHEûLEADû PROVIDEDûONûORDERSû STRATEGICûRATIONALEûBEHINDûTHEûDEAL vûSAIDûAû h.)"ûISûNOTûTHEûBIGGESTûISSUER ûSOûTHEYûCANTû 4HEûSPREADûWASûSETûATûMID SWAPSûmAT û SYNDICATEûBANKERûh4HEûRATIONALEûHEREûISûVERYû DOûHUGEûLINESû3OûTOûTAPûANûEXISTINGûLINEûISûAû UNCHANGEDûFROMûGUIDANCE ûVIAûDZ Bank, MUCHûTOûHAVEûTHEû5+ûASûAûLEADINGû)SLAMICû WAYûFORûTHEMûTOûGETûITûAûBITûMOREûLIQUID vûHEû LBBW, NordLB and Raiffeisen Bank. lNANCEûHUBûINûTHEû7ESTERNûWORLD ûANDûTHISû SAID 4HEûISSUERûANNOUNCEDûINûADVANCEûTHATûITû TRANSACTIONûSENDSûAûVERYûIMPORTANTûMESSAGEû h4HEûPRICINGû)ûTHINKûREmECTSûWHEREû.)"û WOULDûRETAINûUPûTOûõMûOFûTHEûDEALûANDû POLITICALLYûABOUTûHOWûTHEû5+ûISûPOSITIONEDû SHOULDûREALLYûBEûINûEUROSû)TSûNOTûONEûOFûTHEû CHOSEûTOûRETAINûTHEûMAXIMUMûAMOUNTû FROMûANû)SLAMICûlNANCEûPERSPECTIVEv

International Financing Review March 27 2021 25

5 IFR Bonds 2376 p21-58.indd 25 26/03/2021 20:23:10 4HEû5+ûRAISEDûaMûWITHûAûNO GROWû*ULYû 4HEûDEALûWASûBROUGHTûTOûMARKETûRELATIVELYû ûNOTEûTHATûPRICEDûmATûTOûTHEûû*ULYû QUICKLY ûTHEû$-/ûHAVINGûONLYûANNOUNCEDû NON-CORE CURRENCIES ûCONVENTIONALû'ILT ûTIGHTENINGûBYûBPû THEûMANDATEûLASTû-ONDAY ûWITHûTHEûINVESTORû FROMûGUIDANCEûTHROUGHûCIMB Investment Bank, CALLSûBEGINNINGûONû4UESDAYû TASCORP AND NTTC OPEN 2032 LINES Dubai Islamic Bank, Emirates NBD Capital, HSBC 7EûARRANGEDûAûGLOBALûINVESTORûCALLûWITHûAû and Standard Chartered. (3"#ûWASû NUMBERûOFûINSTITUTIONALûINVESTORSûANDûTHENû 4WOûOFûTHEûSMALLERû!USTRALIANûSTATES ûINû STRUCTURINGûADVISERû4HEûPROlTûRATEûONûTHEû THEûFOLLOWINGûDAYûWEûHELDûAûSERIESûOFûONE ON POPULATIONûTERMS ûCOMPLETEDûTHEIRûlRSTû SUKUKûOFFERINGûWASûSETûATûû ONEûMEETINGSû4HEûRESULTûOFûTHATûINVESTORû SYNDICATEDûSALESûOFûTHEûYEARûLASTûWEEK û 4HEREûWEREûFOURûSTRATEGICûOBJECTIVESûFROMû OUTREACHûGAVEûUSûGOODûCONlDENCEûTHATûWEû RAISINGûAûCOMBINEDû!BNû53M ûnû (-û4REASURYûFORûTHISûPARTICULARûTRANSACTION û WEREûINûAûPOSITIONûTOûLAUNCHûTHEûTRANSACTIONû BOTHûBYûOPENINGûNEWûûBENCHMARKûLINESû ACCORDINGûTOû*ESSICAû0ULAY ûCO HEADûOFûPOLICYû ONû4HURSDAY vûSAIDû0ULAYû TASMANIAN PUBLIC FINANCE CORP ûRATEDû!A ANDûMARKETSûATûTHEû5+û$-/ h)TûWASûAûVERYûSMOOTHLYûEXECUTEDû !! û-OODYS30 ûISSUEDû!MûOFûû h.UMBERûONE ûTOûCEMENTûTHEû5+SûPOSITIONû TRANSACTIONûANDûCOMPLETEDûWITHINûANû *ANUARYûûSûONû4UESDAYûVIAûJOINTûLEADû ASûAûLEADINGû7ESTERNûHUBûFORû)SLAMICûlNANCEû EXTREMELYûSHORTûTIMELINE ûWHICHûPOINTSûTOû managers CBA, NAB and UBS .UMBERûTWO ûTOûSUPPORTûWIDERûENGAGEMENTû THEûEFlCIENCYûOFûTHEûEXECUTIONv 4HEûBONDSûPRICEDûATûûTOûYIELDû WITHû)SLAMICûECONOMIESû.UMBERûTHREE ûTOû ûWITHINûTHEûBPnBPûGUIDANCEû SUPPORTû5+û)SLAMICûBANKSûTHROUGHûTHEû ELIGIBLE ASSETS RANGEûATû%&0û YEARûFUTURES ûPLUSûBP û PROVISIONûOFûHIGH QUALITYûSHARIA COMPLIANTû !SûWITHûTHEûlRSTûISSUANCE ûTHEûSUKUKûOFFERINGû BPûWIDEûOFûTHEû.OVEMBERûû!#'"û LIQUIDûASSETS ûWHICHûINûTURNûISûTOûFOSTERû WILLûUSEûTHEûAL IJARAûSTRUCTURE ûWHICHûISûWIDELYû 4WOûDAYSûLATERûNORTHERN TERRITORY TREASURY GREATERûlNANCIALûINCLUSIONûINûTHEû5+û!NDû USEDûINûTHEûMARKETûWITHûRENTALûINCOMEûFROMû CORP ûTHEûLOWESTûRATEDûSTATEûATû!Aû-OODYS û FOURTH ûTOûENCOURAGEûTHEûGROWTHûOFûTHEû AûNUMBERûOFûCENTRALûGOVERNMENTûOFlCEû NATURALLYûPAIDûAûHIGHERûPREMIUMûFORûITSû DOMESTICû)SLAMICûlNANCEûINDUSTRYv PROPERTIESûUNDERPINNINGûTHEûBONDû !Mûû-AYûûûPRINTûARRANGEDûBYû 4HEûLASTûSUKUKûOFFERINGûFROMûTHEûISSUER ûAû 4HISûHIGHLIGHTSûONEûOFûTHEûPOTENTIALû ANZ, NAB and UBS aMûû*ULYûûNOTEûPRICEDûINû*UNEû PROBLEMSûWITHûAûRAMPINGûUPûOFûSUKUKû 4HISûPRICEDûATûûFORûAûYIELDûOFû û ûWASûTHEûlRSTûSHARIA COMPLIANTûBONDûISSUEû ISSUANCEûASûTHEûQUANTITYûOFûELIGIBLEûASSETSû WITHINûBPnBPûGUIDANCEûATû%&0ûPLUSû FROMûAûSOVEREIGNûOUTSIDEûTHEû-USLIMûWORLD CANûPROVIDEûHEADWINDS ûACCORDINGûTOûTHEû BPûANDûBPûOVERûTHEû-AYûû!#'" h"YûLAUNCHINGûOURûSECONDûSOVEREIGNûSUKUK û BANKER WEREûCEMENTINGûTHEû5+SûPOSITIONûASûTHEû h#ANûTHISûBEûSOMETHINGûTHATûTHEYûDOûONûAû LEADINGûGLOBALûHUBûFORû)SLAMICûlNANCEûOUTSIDEû REGULARûBASIS û9OUûNEEDûTOûREALLYûLOOKûATûTHEû OFûTHEû)SLAMICûWORLD vûSAIDû2ISHIû3UNAK û5+û OTHERûSIDEûOFûITûANDûTHEûASSETSûTHATûFORMûTHEû #HANCELLORûOFûTHEû%XCHEQUER ûINûAûSTATEMENTû BASISûOFûSUKUKûTRANSACTIONS vûHEûSAID CORPORATES h3TRONGûINVESTORûDEMANDûFORûTHISûSUKUKû h&ORûTHESEûTRANSACTIONS ûYOUûDOûHAVEûTOû MEANTûWEûACHIEVEDûAûGOODûPRICEûFORûTHEû HAVEûUNDERLYINGûASSETS ûANDûTHERESûAûLOTûOFû TAXPAYERûANDûWILLûHELPûUSûDEVELOPûOURû WORKûREQUIREDûAROUNDûTHATûTOûMAKEûSUREû US DOLLARS RELATIONSHIPSûWITHû)SLAMICûECONOMIESû THEYûAREûELIGIBLEûFORûSUKUKûANDûTHATûTHEYûAREû AROUNDûTHEûWORLDv RING FENCEDûFROMûANûASSETûPERSPECTIVE ûTHATû ORACLE OFFERS CONCESSIONS &INALûORDERûBOOKSûCLOSEDûINûEXCESSûOFû THEREûISûSOMETHINGûUNDERLYINGûTHEûBONDSv ON JUMBO SIX-PARTER aM ûRISINGûSLIGHTLYûFROMûaMûWHENû 7HILEûTHEûLATESTûDEALûISûAûWELCOMEû THEûSPREADûWASûSETû DEVELOPMENTûFORûTHEû5+û$-/ ûTHEREûREMAINû 4ECHNOLOGYûCOMPANYûORACLE PRICEDûAû h4HISûWASûAûTRANSACTIONûWHICHûSETûOUTûTO û DOUBTSûASûTOûHOWûMATERIALûISSUANCEûVOLUMESû 53BNûSIX PARTûJUMBOûBONDûLASTû-ONDAYû ANDûDIDûACHIEVE ûDISTRIBUTIONûINû!SIA ûTHEû CANûBE THATûCAMEûWITHûLARGEûDOUBLE DIGITûNEW ISSUEû -IDDLEû%AST ûASûWELLûASûINûTHEû5+ûTIMEZONE vû h#ANûWEûSEEûMOREûSUKUKûISSUANCEûGOINGû CONCESSIONSûFOLLOWINGûITSûDOWNGRADEûINTOû SAIDû0ULAYû FORWARD û4HEûANSWERûISûYES vûSAIDûTHEûBANKER 4RIPLEû"ûTERRITORYûANDûWITHûITSûUSEûOFûPROCEEDSû h7ITHINûTWOûHOURSûOFûOPENINGûTHEûBOOKSû h"UTûWILLûITûBEûSOMETHINGûTHATûISûUSEDûTOû GOINGûTOWARDSûSTOCKûBUYBACKSûANDûDIVIDENDS ATûû5+ûTIME ûLEADûMANAGERSûWEREûABLEûTOû ALLEVIATEûPRESSUREûFROMûOTHERûFUNDINGûTOOLS û 4HEûDEALûGARNEREDûAû53BNûORDERûBOOK û SETûTHEûDEALûSIZEûANDûTHEûPRICINGûATûmATûTOûTHEû LIKEûTHEûGREENûBONDS ûFORûEXAMPLE û)ûHIGHLYû YETûSPREADSûTIGHTENEDûBYûJUSTûBPûFROMû MATCHINGûREFERENCEû'ILTv DOUBTûIT ûTOûBEûHONESTv INITIALûPRICEûTHOUGHTS

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 13 7,080.64 15.2 1 Deutsche Bank 6 5,388.19 8.6 1 JP Morgan 8 1,696.84 13.9 2 Natixis 8 4,023.87 8.7 2 Goldman Sachs 5 5,276.80 8.4 2 HSBC 8 1,568.81 12.8 3 Deutsche Bank 9 3,817.30 8.2 3 Barclays 5 5,155.43 8.2 3 Nord/LB 6 905.38 7.4 4 JP Morgan 12 3,540.77 7.6 4 BNP Paribas 4 4,866.28 7.7 4 UniCredit 6 864.83 7.1 5 Barclays 8 3,093.67 6.7 5 DZ Bank 2 4,425.38 7.0 5 LBBW 5 777.20 6.4 6 Credit Agricole 9 2,985.58 6.4 6 Commerzbank 3 4,349.50 6.9 6 Deutsche Bank 3 754.24 6.2 7 Citigroup 9 2,881.13 6.2 7 Bank of America 5 4,296.99 6.8 7 DGZ-DekaBank 4 718.87 5.9 8 HSBC 9 2,877.56 6.2 8 UniCredit 5 4,181.20 6.6 8 Natixis 3 541.61 4.4 9 Goldman Sachs 8 2,791.42 6.0 9 LBBW 3 3,458.07 5.5 9 KBC Group 2 486.53 4.0 10 SG 6 2,751.53 5.9 10 SG 2 3,381.57 5.4 10 Credit Agricole 3 434.54 3.6 Total 71 46,443.80 Total 18 62,964.93 Total 25 12,216.96

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

26 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 26 26/03/2021 20:23:11 BONDS CORPORATES

4HEûFUNDSûCOULDûBEûUSEDûTOûREPAYûSOMEû -OODYSûANALYSTû2AJû*OSHIûSAIDûh4HEû SûWEREûTRADINGûATûBPûOVERû4REASURIES û 53BNûOFûDEBTûMATURINGûTHISûYEARûANDû RATINGSûDOWNGRADEûTOû"AAûREmECTSû/RACLESû ACCORDINGûTOû-ARKET!XESSûDATA EVENûPRE FUNDûANûADDITIONALû53BNûCOMINGû ELEVATEDûlNANCIALûLEVERAGE ûITSûAGGRESSIVEû 3TILL ûFULLYûJUNK RATEDûPEERSûSUCHûASû-ACYSûOFFERû DUEûINûû%XCESSûFUNDSûWILLûBEûUSEDûFORû USEûOFûDEBTûTOûlNANCEûLARGEûSHAREHOLDERû MOREûSPREADûTRADINGûINûTHEûBPûCONTEXTûATûTHEû SHAREûBUYBACKSûANDûANûINCREASEûINû/RACLESû RETURNS ûANDûLACKûOFûANYûLONG TERMûlNANCIALû SHORTûENDûOFûTHEûCREDITûCURVE û#REDIT3IGHTSûNOTEDû DIVIDENDûPAYMENTS POLICYûGOALS ûWHICHûISûUNUSUALûFORûANû 0ROCEEDSûFROMû7EDNESDAYSûDEBTûRAISEû $URINGû/RACLESûLATESTûQUARTERLYûEARNINGSû INVESTMENT GRADEûCOMPANYûWITHûLARGEûDEBTû WILLûBEûUSEDûTOûREDEEMûTHEû53MûlVE REPORT ûCHIEFûEXECUTIVEû3AFRAû#ATZûSAIDûTHEû BALANCESûANDûCREATESûUNCERTAINTYûABOUTû YEARûNOTEûTHEûCOMPANYûISSUEDûLASTû!PRILû BOARDûAGREEDûTOûINCREASEûQUARTERLYûDIVIDENDSû MANAGEMENTSûlNANCIALûRISKûTOLERANCEv AMIDûAûSCRAMBLEûFORûLIQUIDITYûASûTHEûRETAILû BYûûFROMû53ûTOû53ûPERûSHAREû SECTORûWASûHITûHARDûBYûTHEûLOSSûOFûIN STOREû ANDûAUTHORISEDûANûADDITIONALû53BNûFORû NORDSTROM REJOINS IG INDEX, SALESûDUEûTOûTHEû#OVID ûPANDEMICû THEûREPURCHASEûOFûSHARES REFINANCES COVID DEBT #OUPONSûONû7EDNESDAYSûTWO PARTûDEBTû /RACLEûHASûBEENûVOCALûABOUTûITSû RAISEûCAMEûWELLûUNDERûTHEûûSûTHATû PROGRAMMESûTOûINCREASEûSHAREHOLDERû ,UXURYûDEPARTMENTûSTOREûCHAINûNORDSTROM .ORDSTROMûISSUEDûLASTûYEARûANDûPROVIDEûTHEû RETURNS ûSOûTHEûUSEûOFûPROCEEDSûCAMEûASûNOû RETURNEDûTOûTHEûBONDûMARKETûWITHûAû RETAILERûWITHûSAVINGSûONûINTERESTûEXPENSESû SURPRISE ûONEûDEALER BROKERûNOTED 53MûTWO PARTûBONDûONû7EDNESDAYûAFTERû %VENûTHOUGHûTHEûBENCHMARKû YEARû53û ,ASTûYEAR ûWHENû/RACLEûCAMEûTOûTHEû FORTIFYINGûITSûINVESTMENT GRADEûRATINGSûWITHûAû 4REASURYûNOTEûYIELDûHASûRISENûINûRECENTû MARKETûWITHûAûSIMILARûSIX PARTûTRADE ûITû NEWûSCOREûFROMû&ITCHû WEEKS ûYIELDINGûAROUNDûûONû PRICEDû53BNûONûAû53BNûORDERûBOOK ûINû .ORDSTROMûCAMEûINTOûTHEûWEEKûWITHûSPLITû 7EDNESDAY ûAVERAGEû)'ûSPREADSûAREûMUCHû THEûSECOND LARGESTûCORPORATEûBONDûTRADEûOFû CREDITûRATINGSûANûINVESTMENT GRADEû"AAû TIGHTERûTHANûTHEYûWEREûAûYEARûAGO ûALLOWINGû THEûYEAR ûACCORDINGûTOû)&2ûDATA FROMû-OODYSûANDûAûHIGH YIELDû"" ûFROMû30 .ORDSTROMSûNEWûNOTESûTOûLANDûATûMUCHû )NûITSûLATESTûDEAL û/RACLE ûRATEDû"AA!""" û /Nû4UESDAY û&ITCHûASSIGNEDûAûlRST TIMEû LOWERûCOUPONûRATESûOFûûANDû PRICEDûAû53BNûlVE YEARûATû4REASURIESû """nûRATINGûWITHûAûNEGATIVEûOUTLOOKû4HEû 3EVERALûUNCERTAINTIESûSTILLûREMAINûFORû PLUSûBP ûAû53BNûSEVEN YEARûATûBPû ADDITIONALûRATINGûWILLûPUSHû53BNûOFûTHEû .ORDSTROMûANDûTHEûBROADERûRETAILûSECTOR û OVER ûAû53BNû YEARûATûBPûOVER ûAû ISSUERSûBONDSûBACKûINTOû)'ûINDICESûATûBOTHû INCLUDINGûTHEûPACEûOFûVACCINEûDEPLOYMENT û 53BNû YEARûATûBPûOVER ûAû "LOOMBERGû"ARCLAYSûANDû)#%û"OF! ûACCORDINGû LINGERINGûUNEMPLOYMENT ûHOUSEHOLDûINCOMEû 53BNû YEARûATûBPûOVERûANDûAû TOûAûNOTEûFROMû"ANKûOFû!MERICA TRENDS ûTHEûIMPACTûOFûADDITIONALûGOVERNMENTû 53BNû YEARûATûBPûOVERû4HOSEû .ORDSTROMûMAYûBEûJOININGûTHEûHIGH GRADEû STIMULUS ûANDûTHEûLASTINGûEFFECTSûTHEûCRISISûWILLû SPREADSûWEREûJUSTûBPûINSIDEûOFûINITIALûPRICEû INDEX ûBUTûITûISûATTRACTINGûHIGH YIELDûINVESTORSû ONûHAVEûONûLONG TERMûCONSUMERûBEHAVIOUR û THOUGHTSûSETûINûTHEûAREAûOFûBP ûBP û WITHûHIGHûSPREADS ûONEûINVESTORûSAIDû &ITCHûNOTEDûINûITSûREPORTûLASTûWEEKû BP ûBP ûBPûANDûBP ûRESPECTIVELY 4HEû53MûTHREE YEARûNON CALLûONEûANDû ALL US INVESTMENT GRADE CORPORATE DEBT !ûSECONDûDEALER BROKERûSAIDûTHEûLACKûOFû 53Mû YEARûWEREûGUIDEDûTOûTHEûBPû SPREADûCOMPRESSIONûHADûMOREûTOûDOûWITHûTHEû ANDûBPûAREAûPLUSûORûMINUSûBPû4HOSEû BOOKRUNNERS: 1/1/2021 TO DATE SIZEûOFûTHEûBONDûTHANûITûDIDûTHEûQUALITYûOFûTHEû LEVELSûWEREûINûSOMEûBPnBPûFROMû Managing No of Total Share CREDIT ûNOTINGûTHATûTHEûBOOKûSIZEûLEFTûLITTLEû INITIALûPRICEûTHOUGHTSûTHATûWEREûSETûINûTHEû bank or group issues US$(m) (%) ROOMûTOûALLOWûINVESTORSûTOûDROP AREAûOFûBPûANDûBP ûRESPECTIVELY 1 JP Morgan 147 50,208.45 12.3 h)TûWILLûPROBABLYûCOMEûOUTûWITHûSPREADSû 2 Bank of America 150 45,933.40 11.2 RATINGS CONCERNS more like a high-yield bond than an IG 3 Citigroup 115 36,213.12 8.8 !Tû)04S û/RACLEûSTARTEDûSOMEûBPnBPûWIDEû BOND vûTHEûINVESTORûSAID 4 Morgan Stanley 94 34,314.83 8.4 OFûITSûSECONDARYûCURVE ûINûPARTûTOûCOMPENSATEû %VENûWITHûSTRONGûSPREADûTIGHTENINGû 5 Goldman Sachs 72 24,685.75 6.0 INVESTORSûFORûRATINGSûAGENCYûDOWNGRADESûLASTû THROUGHûPRICEûPROGRESSIONûANDûCOMINGûINûATû 6 Wells Fargo 97 22,455.06 5.5 WEEKûTHATûGAVEûITûTWOû4RIPLEû"ûRATINGSûANDû THEûTIGHTûENDûOFûGUIDANCE ûTHEûNEWû 7 Barclays 54 17,107.50 4.2 ONEû3INGLEû! ûACCORDINGûTOû#REDIT3IGHTS .ORDSTROMûTHREE YEARûSTILLûOFFEREDûAû 8 Deutsche Bank 36 14,567.69 3.6 -OODYSûDOWNGRADEDû/RACLEûBYûTWOûNOTCHESû SUBSTANTIALûPICK UPûOVERûFULLYûHIGH GRADE 9 Mizuho 52 14,386.50 3.5 TOû"AAûWITHûAûSTABLEûOUTLOOKûANDû&ITCHû RATEDûDEPARTMENTûSTOREûPEERû+OHLS û"AA 10 Credit Suisse 35 14,247.85 3.5 DOWNGRADEDûBYûONEûNOTCHûTOû""" ûWITHûAû """n"""n ûACCORDINGûTOûRESEARCHûlRMû Total 281 409,454.64 NEGATIVEûOUTLOOKû-EANWHILE û30ûREAFlRMEDû #REDIT3IGHTSû&ORûEXAMPLE û+OHLSûû Source: Refinitiv SDC code: F9 ITSû!ûRATINGûWITHûAûNEGATIVEûOUTLOOK ALL INV-GRADE US CORPORATE BONDS ALL CORPORATE BONDS IN EUROS h)ûWASûSURPRISEDûTHATû-OODYSûTOOKûSUCHûAû BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE STRONGûSTANCE ûASû30ûHASûBEENûTHEûMOREû $RACONIANûAGENCYûTHROUGHOUTûTHEû Managing No of Total Share Managing No of Total Share bank or group issues US$(m) (%) bank or group issues €(m) (%) PANDEMIC vûTHEûlRSTûDEALER BROKERûSAID 4HEûDOWNGRADEûSENTûITSûSECONDARYûCURVEû 1 JP Morgan 37 10,647.29 14.1 1 BNP Paribas 58 8,492.16 7.5 WIDERûBYûSOMEûBPnBPûONû-ONDAYû 2 Bank of America 30 9,276.92 12.3 2 Citigroup 42 6,774.88 6.0 MORNING ûACCORDINGûTOû-ARKET!XESSûDATAû 3 Citigroup 20 8,144.11 10.8 3 JP Morgan 50 6,526.06 5.8 4 HSBC 35 5,243.72 4.6 4HEûOUTSTANDINGûûSûWEREûTHEûMOSTû 4 Wells Fargo 27 6,710.38 8.9 5 Morgan Stanley 26 4,928.42 6.5 5 Barclays 34 5,134.08 4.6 ACTIVELYûTRADED ûREACHINGûASûHIGHûASûBPû 6 Deutsche Bank 8 4,875.56 6.5 6 Goldman Sachs 39 5,117.03 4.5 OVER ûOUTûFROMûBPûTHEûWEEKûPRIOR 7 Barclays 15 4,037.67 5.3 7 Credit Agricole 38 4,892.92 4.3 /RACLEûSAIDûITûPLANNEDûTOûLIMITûTOTALû 8 MUFG 15 3,548.95 4.7 8 Santander 25 4,880.99 4.3 OUTSTANDINGûDEBTûTOû53BNûATûTHEûENDûOFû 9 Goldman Sachs 12 3,446.63 4.6 9 Bank of America 34 4,789.06 4.2 -AY ûUPûFROMû53BNûCURRENTLYû7ITHû 10 Mizuho 12 2,790.68 3.7 10 SG 28 4,651.89 4.1 -ONDAYSûISSUANCEûANDûUPCOMINGûDEBTû Total 66 75,498.76 Total 140 112,827.88 REPAYMENTS û/RACLEûWOULDûINCREASEûLEVERAGEû TOûXûUPûFROMûX ûACCORDINGûTOû Excluding equity-related debt, ABS/MBS, all foreign issues, global issues Excluding equity-related debt. FIGs, ABS/MBS. and non corporates. #REDIT3IGHTS Source: Refinitiv SDC code: F6a Source: Refinitiv SDC code: N8

International Financing Review March 27 2021 27

5 IFR Bonds 2376 p21-58.indd 27 26/03/2021 20:23:11 h4HEûPANDEMICûHASûSEVERELYûAFFECTEDû ISSUEûCONCESSIONSûANDûGARNEREDûJUSTû UTILITY TRIGGEREDûWILDlRESûOVERûTHEûPASTûTWOû REVENUEûTRAJECTORIESûINûCATEGORIESûLIKEû 53BNûINûDEMANDûFORûANûORDERûBOOKû YEARSû APPAREL ûWHICHûSUFFEREDûFROMûMANDATEDûORû THATûWASûûTIMESûSUBSCRIBED PROACTIVEûSTOREûCLOSURES ûWEAKûMALLûTRAFlC û 4HEûUTILITY ûRATEDû!!n""" ûPRICEDûTWOû ANDûREDUCEDûWARDROBEûREPLENISHMENTûNEEDSû lXED RATEûTRANCHESûCOMPRISINGûAû53Mû EUROS CAUSEDûBYûDECLINESûINûSOCIALûGATHERINGSûANDû TWO YEARûANDûAû53MûTHREE YEARûTHATû ANûINCREASEDûINCIDENCEûOFûREMOTEûWORKû PRICEDûATûSPREADSûOFûBPûANDûBP û EURO CORPORATES CHEAPEN IPTS ARRANGEMENTS vû&ITCHûNOTEDû RESPECTIVELY ûINûFROMû)04SûSETûINûTHEûAREAûOFû AMID SURGE IN SUPPLY .ORDSTROMûINûPARTICULARûSAWûMOREû BPnBPûANDûBPnBPû4HEREûWEREûALSOû PRONOUNCEDûSALESûDECLINESûDUEûTOûITSû TWOû53MûmOATING RATEûNOTESûCONTAININGû %UROPEANûCORPORATEûISSUERSûmOCKEDûTOûTHEû CONCENTRATIONûINûDENSEûCOASTALûCITIESûTHATû TWOûANDûTHREE YEARûTRANCHESûTHATûWILLûmOATûATû PRIMARYûMARKETûLASTûWEEK ûBUTûWITHûAûHEAVYû WEREûMOSTûIMPACTEDûBYûTHEûVIRUS ûAûHALTûINû BPûANDûBPûOVERû3/&2û SUPPLYûOFûDEALSûANDûINVESTORSûLOOKINGûFORû TOURISMûANDûITSûSPECIALISATIONûINûFORMALûWEARû /NEûBANKERûAWAYûNOTEDûAûSPLITûINûTHEû)'û GREATERûCONCESSIONS ûTHEûAVERAGEûPREMIUMû ANDûWORKûATTIRE ûFORûWHICHûDEMANDûISûMUTEDû BONDûMARKETûLASTûWEEKûBETWEENûWELL LIKEDû ATû)04SûWASûLIFTEDûWELLûABOVEûBP GIVENûREDUCEDûSOCIALûOCCASIONSûANDûMANYû CREDITSûANDûTHOSEûWITHûSOMEûNOISEûAROUNDû h!LLûDEALSûAREûSTARTINGûCHEAPER ûTODAYûWILLû EMPLOYEESûWORKINGûFROMûHOME ûACCORDINGû THEûNAMEû3O#ALû%DISONûWOUNDûUPûONûTHEû BEûTHEûLITMUSûTEST vûSAIDûONEûSYNDICATEû TOûTHEûREPORTû WRONGûENDûOFûTHATûDIVIDEûASûITûCONTINUESûTOû BANKERûONû4UESDAYûMORNINGûh)TûDOESNTûFEELû 2ETAILûSALESûDECLINEDûBYûûINûûTOû DEALûWITHûTHEû#ALIFORNIAûlREûISSUES LIKEûINVESTORSûAREûOVERWHELMEDûJUSTûYETv 53BN ûACCORDINGûTOû&ITCHû.OTABLY ûIN h4HEREûAREûDEALSûWHEREûTHEYûAREûGOINGû /NLYûAûFEWûWEEKSûAGO ûBORROWERSûWEREû STOREûSALESûDECLINEDûBYûMOREûTHANûHALFûANDû VERYûWELLûANDûYOUûSEEûSPREADSûMOVEûBPûINû STARTINGûDEALSûAROUNDûBPûBACKûFROMûFAIRû WEREûONLYûPARTIALLYûOFFSETûBYûAûûRISEûINû FROMû)04S ûBUTûYOUREûALSOûSEEINGû VALUE ûBUTûNOWûISSUERSûAREûCOMINGûTOûTHEû ONLINEûSALESû TRANSACTIONSûLIKEû/RACLEûANDû3O#ALûTHISûWEEKû MARKETûBPnBPûONûSHORTûANDûMID DATEDû Goldman Sachs and Wells Fargo were lead WHEREûTHEREûISûNOISEûAROUNDûTHEûNAME û TRANCHES ûANDûBPûANDûOVERûONûLONGERû BOOKRUNNERSûONûTHEûTRADEû WHETHERûTHATSûAûDOWNGRADEûATû/RACLEûORûTHEû TRADES lRESûWITHû3O#AL vûTHEûBANKERûSAIDûh)NVESTORSû h)ûAMûACTUALLYûQUITEûIMPRESSEDûBYûHOWû SOCAL EDISON PAYS UP TO SETTLE AREûRELUCTANTûTOûPARTICIPATEûINûTHESEû THINGSûHAVEûGONE vûSAIDûAûSECONDûBANKERû WILDFIRE CLAIMS TRANSACTIONSûWHEREûTHEREûISûNOISE ûORûATûLEASTû LATERûINûTHEûWEEKûh9ES û)04SûAREûWAYûBACKû THEYûWILLûBEûMOREûDEFENSIVEûINûPARTICIPATINGû ;FROMûFAIRûVALUE= ûBUTûTHEûLEVELûOFûCONCESSIONû SOUTHERN CALIFORNIA EDISONûPRICEDûAû INûTHOSEûNAMESv THATûAûLOTûOFûISSUERSûAREûPAYINGûISûACTUALLYû 53BNûDEALûONû7EDNESDAYûTHATû 3O#ALûPERFORMEDûMUCHûBETTERûWHENûITûWASû OKv STRUGGLEDûTHROUGHûPRICEûPROGRESSIONûDUEûTOû LASTûINûTHEûMARKETûINû*ANUARYûTOûPRICEûAû /FFERINGûHIGHERûPREMIUMSûATûTHEûOUTSETû LINGERINGûCONCERNSûREGARDINGûPAYMENTSûTIEDû 53MûTWO PARTûlRSTûMORTGAGEûBONDû CERTAINLYûHELPEDûDRIVEûDEMANDûONû4UESDAYû to the Woolsey Fire that burned through the CONTAININGûûANDû YEARûTRANCHESûTHATû ANDûBOOKSûLOOKEDûSUBSTANTIALû&ORûSOMEû ,OSû!NGELESûAREAûINû PRICEDûWITHûNEGATIVEûNEW ISSUEûCONCESSIONSû BORROWERS ûTHISûMEANTûTHATûTHEYûCOULDû 4HEûFOUR PARTûDEALûWILLûBEûUSEDûTOûFUNDûTHEû (OWEVER ûTHEREûWASûMOREûPRESSUREûATûTHEû COMPLETELYûERASEûANYûNEWûISSUEûPREMIUM PAYMENTûOFûWILDlREûCLAIMS ûINCLUDINGû FRONTûENDûOFûTHEûCURVEûTHISûTIMEûAROUNDûASû Automaker STELLANTIS "AA"""n"""n û 53BNûDUEûONû!PRILûûUNDERûAû*ANUARYû 3O#ALûGAVEûUPûDOUBLE DIGITûNEW ISSUEû FORûEXAMPLE ûSAWûORDERSûFORûITSûSINGLE ûûSETTLEMENTûAGREEMENTûINû CONCESSIONSûAFTERûACCOUNTINGûFORûMATURITYû TRANCHEûDEAL ûAûõBNûSIX YEARûSENIORû CONNECTIONûWITHûTHEû7OOLSEYû&IRE û ANDûCALLûOPTIONûDIFFERENCES ûWHENûCOMPAREDû UNSECURED ûTOPûõBNû,EADSûBEGANû ACCORDINGûTOûTHEûlLINGûANDûAûREPORTûFROMû WITHûITSûûSûANDûûSûTHATû MARKETINGûTHEûTRADEûATûAûSPREADûOFûTHEûBPû &ITCHû&UNDSûCANûALSOûBEûUSEDûTOûREPAYû WEREûTRADINGûATû' SPREADSûOFûBPûANDûBP û AREAûOVERûSWAPS ûINDICATINGûAûPREMIUMûOFû COMMERCIALûPAPERûBORROWINGSûUSEDûTOûFUNDû RESPECTIVELY ûACCORDINGûTOû)&2ûCALCULATIONSû AROUNDûBPû(OWEVER ûTHEYûWEREûABLEûTOû THEûPAYMENTûOFûSUCHûWILDlREûCLAIMS )NûAûREPORTûLASTûWEEK û&ITCHûREAFlRMEDûITSû REDUCEûTHISûTOûBP (OWEVER ûTHEûDEALûFAILEDûTOûMOVEûOFFûOFû """ ûRATING ûNOTINGûSUPPORTIVEû#ALIFORNIAû %STIMATESûFORûFAIRûVALUEûDIDûVARY ûANDû THEûTIGHTûENDûOFûTHEûRANGEûSETûATûINITIALûPRICEû REGULATIONSûTHATûWILLûHELPû3O#ALûNAVIGATEû WHILEûBANKERSûSUGGESTEDûBP û THOUGHTS ûGAVEûUPûSOMEûBPnBPûOFûNEW WILDlREûSETTLEMENTSûANDûAûREDUCTIONûINû #REDIT3IGHTSûPLACEDûITûATûBP )TûMARKEDûAûSTRONGûRESULTûFORûTHEûlRSTûBONDû ALL INTERNATIONAL STERLING BONDS ALL SWISS FRANC BONDS INCLUDING ISSUEDûBYûTHEûCOMPANYûSINCEûTHEûCOMPLETIONû EXCLUDING SECURITISATIONS SECURITISATIONS OFûTHEûMERGERûBETWEENû&#!ûANDû03!û BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE Stellantis intends to be a regular issuer in Managing No of Total Share Managing No of Total Share the euro market and is potentially bank or group issues £(m) (%) bank or group issues SFr(m) (%) CONSIDERINGû53ûDOLLARûBONDûISSUANCE û 1 HSBC 27 4,734.51 12.0 1 Credit Suisse 33 3,502.43 24.3 ACCORDINGûTOû#REDIT3IGHTS 2 Barclays 30 4,128.55 10.4 2 Verband Schweiz 8 3,034.32 21.0 POPULAR SHORT END 3 NatWest Markets 21 3,625.40 9.2 3 UBS 26 2,655.13 18.4 4 BNP Paribas 11 3,402.95 8.6 4 ZKB 12 1,283.48 8.9 'ERMANûHEALTHCAREûGROUPûFRESENIUSû"AA 5 Deutsche Bank 10 3,196.49 8.1 5 Raiffeisen Schweiz 12 1,159.25 8.0 """"""n ûWASûTHEûONLYûNAMEûTOûBRINGû 6 RBC 18 2,969.17 7.5 6 Deutsche Bank 10 1,028.33 7.1 MULTIPLEûTRANCHESûONû4UESDAY ûISSUINGû û 7 Bank of America 13 2,749.73 7.0 7 BNP Paribas 5 738.14 5.1 ûANDû YEARûSENIORûUNSECUREDS ûALLû 8 Nomura 6 2,726.72 6.9 8 Credit Agricole 2 301.45 2.1 õMûNO GROWS ûINûORDERûTOûPAYûDOWNû 9 TD Securities 10 2,141.69 5.4 9 Basler KB 3 241.87 1.7 lNANCIALûLIABILITIES 10 JP Morgan 11 1,517.09 3.8 10 Commerzbank 3 229.15 1.6 ,EADSûBEGANûMARKETINGûTHEûBONDSûBPn Total 68 39,543.76 Total 63 14,431.82 BPûBACKûFROMûFAIRûVALUE ûBASEDûONûTHEû

Including preferreds. Excluding equity-related debt. Including preferreds. Excluding equity-related debt. ESTIMATESûOFûBANKERSûONûANDûOFFûOFûTHEûDEALû Source: Refinitiv SDC code: K05a Source: Refinitiv SDC code: K06c ,EADSûHADûTHEûPREMIUMûATû)04SûFORûTHEû

28 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 28 26/03/2021 20:23:11 BONDS CORPORATES

SHORTESTûTRANCHEûATûBPûANDûTHEûLONGESTûATû 6ANTAGEû4OWERSûISûLISTEDûINû'ERMANY ûSOûITû CURVEûMADEûESTIMATINGûFAIRûVALUEûAûHIGHLYû BP ISûWASûEXPECTEDûTHATûTHEûNEWûBONDSûWOULDû SUBJECTIVEûEXERCISE h)FûYOUûHAVEûSOMETHINGûTHATûISûSHORT DATEDû BEûELIGIBLEûFORûTHEû%#"Sû#300 ANDûOFFERSûAûBITûOFûYIELD ûYOULLûBEûALLûRIGHT vû -OODYSûANDû30ûHAVEûRATEDûTHEû E.ON ISSUES FIRST GREEN FOLLOWING SAIDûAûTHIRDûBANKERûh)FûYOUûAREûGOINGûFORû COMPANYSûSENIORûUNSECUREDûDEBTû"AAûANDû TAXONOMY ALIGNMENT something longer, you need to think more """nûBOTHûSTABLE CAREFULLYûABOUTûWHATûYOUûAREûOFFERINGûINûTHEû 0ROCEEDSûFROMûTHEû)0/ûWEREûNOTûPUTûINTOû E.ONûLASTû4HURSDAYûBROUGHTûITSûlRSTûGREENû WAYûOFûAûPREMIUMv 6ANTAGEû4OWERSûBUTûKEPTûBYû6ODAFONEûANDû BONDûTOûMARKETûSINCEûITûALIGNEDûITSû 4HEûPOPULARITYûOFûSHORTERûMATURITIESûWASû AREûBEINGûUSEDûTOûPAYûDOWNûITSûDEBT û FRAMEWORKûWITHûTHEû%5û4AXONOMYûWITHûTHEû EVIDENTûINûTHEûBOOKûFORûTHEû&RESENIUSûDEALû ACCORDINGûTOû-OODYS STRONGûDEMANDûALLOWINGûTHEûBORROWERûTOû /RDERSûFORûTHEû YEARûATûTHEûLASTûUPDATEû 4WOûWEEKSûAGO û6ODAFONEûANNOUNCEDûTHEû RAISEûFUNDINGûmATûTOûITSûSECONDARYûCURVE WEREûAROUNDûõBN ûWHILEûTHEûOTHERûTWOûLEGSû LAUNCHûOFûûCONCURRENTûBUTûSEPARATEûCASHû 4HEû'ERMANûUTILITYû"AA""" ûWASûTHEû GENERATEDûBOOKSûINûEXCESSûOFûõBNûANDû TENDERûOFFERSûFORûEUROûANDû53ûDOLLARûBONDS û lRSTûCORPORATEûTOûFULLYûALIGNûITSûGREENû õBN ûRESPECTIVELY TOTALLINGûõBN EQUIVALENTû4HEûMAXIMUMû lNANCINGûFRAMEWORKûWITHûTHEû%5û &URTHERMORE ûTHEûSHORTESTûTRANCHEûCAMEû PURCHASEûPRICEûFORûTHEûTENDERûOFFERûISûõBN 4AXONOMY ûUPDATINGûITSûDOCUMENTATIONûINû ATûAûNEGATIVEûCONCESSIONûOFûUPûTOûBPûWHENû EQUIVALENTû4HISûISûNOTûDIRECTLYûRELATEDûTOû &EBRUARY LEADSûLANDEDûTHEûSPREADûATûBPû4HOSEûONû 6ANTAGEû4OWERSûBONDûOFFERING h4HEû%5û4AXONOMYûHASûINCREASINGLYû THEûOTHERûTWOûTRANCHESûWEREûlXEDûATûBPû BECOMEûANûIMPORTANTûPARTûOFûPUBLICû ANDûBPûFORûPREMIUMSûOFûBPûANDûBP SHORT AND GREEN DISCUSSIONSûANDûTHEûINVESTORûRESPONSEûWASû 3TARTINGûAROUNDûBPûBACKûSEEMEDûTOûBEû *APANESEûMOTORûMANUFACTURERûNIDECû! ûWASû OVERWHELMINGLYûPOSITIVEûANDûTHROUGHOUTû THEûSTANDARDûFORûMANYûOFû4UESDAYSûDEALSû also out in the euro primary market last THEûPROCESSûITûWASûWELLûPERCEIVED vûSAIDûANû 0ROFESSIONALûSERVICESûINFORMATIONûANDû 7EDNESDAY ûISSUINGûAûGREENûEUROûBENCHMARKû OFlCIALûATû%/. SOFTWAREûPROVIDERûWOLTERS KLUWER "AA TOûFUNDûCAPEXûRELATEDûTOû%UROPEANûFACTORIESû h!LIGNINGûWITHûTHEû%5û4AXONOMYûENTAILSû """ ûFOLLOWEDûTHISûPATHûANDûWASûABLEûTOûSETû FOCUSEDûONûTHEûMANUFACTUREûANDûRESEARCHûOFû BOTHûMAKINGûSUREûALLûYOURûASSETSûORûPROJECTSû THEûSPREADûONûAûõMûNO GROWûSEVEN YEARû THEûTRACTIONûMOTORSûUSEDûINûELECTRICûVEHICLEû AREûELIGIBLEûASûGREEN ûTHEYûHAVEûTOûCONTRIBUTEû ATûBP ûHAVINGûlRSTûCOMEûTOûTHEûMARKETû ENGINES TOûONEûOFûTHEûENVIRONMENTALûOBJECTIVES ûBUTû WITHû)04SûOFûBP 4HEûDEALûMARKEDûTHEûCOMPANYSûlRSTû TOûBEûTAXONOMY COMPLIANTûTHEYûALSOûCANNOTû green bond issue in the euro market and DOûHARMûTOûANYûOFûTHEûOTHERûOBJECTIVESv VANTAGE TOWERS TAKES €2.2bn WITH FOLLOWSûONûFROMûITSûINAUGURALûOFFERINGûINûTHEû 7HETHERûORûNOTûTHISûALIGNMENTûHADûMUCHû POST-IPO DEBUT YENûMARKETûLASTûYEAR OFûANûIMPACTûONûTHEûEXECUTIONûOFûTHEûNEWû ,IKEû6ANTAGEû4OWERSûTRIPLE TRANCHER û trade is hard to determine, but ABN AMRO, VANTAGE TOWERSûTAPPEDûTHEûBONDûMARKETûFORû .IDECûDEALûWASûWELLûRECEIVEDûANDûSEVERALû Bank of America, Societe Generale and UniCredit THEûlRSTûTIMEûLASTû7EDNESDAY ûJUSTûAûWEEKû TIMESûCOVEREDû4HEûõMûNO GROWûlVE YEARû WEREûABLEûTOûSETûTHEûSPREADûONûTHEûõMû AFTERûITSû)0/ ûINûORDERûTOûRAISEûFUNDINGûTOû ISSUEûRAISEDûAûBOOKûTHATûATûLASTûUPDATEûWASû YEARûATûBPûOVERûMID SWAPS ûPAYINGûNOû REPAYûLOANSûTHATûITûHADûSECUREDûFROMûITSû OVERûõBN ûHAVINGûATûONEûSTAGEûEXCEEDEDû PREMIUM ûACCORDINGûTOûONEûLEADû"OOKSû PREVIOUSûPARENTûANDûCURRENTûMAJORITYû õBNûMorgan Stanley, JP Morgan, BNP Paribas, REACHEDûõBN ûBUTûFELLûTOûõBNûFOLLOWINGû STAKEHOLDERû6ODAFONE Citigroup and UBSûlXEDûTHEûSPREADûATûBP û THEûPRICEûREVISIONS )NVESTORSûQUICKLYûWARMEDûTOûTHEûTHREE HAVINGûSTARTEDûMARKETINGûTHEûBONDSûATûBPû h7EûLOOKEDûTOWARDSûTHEIRûEXISTINGûGREENû TRANCHEûDEALûFROMûTHEû%UROPEANûTOWERû AREA DEALS ûTHEIRûLONGESTûISûAûSLIGHTLYûLONGû YEAR û INFRASTRUCTUREûCOMPANY ûWITHûORDERSûATûONEû h4HEREûAREûAûNUMBERûOFûTHINGSûTHATûCLEARLYû WHICHûISûATûBP ûSOûFAIRûVALUEûWOULDûBEûJUSTû POINTûTOPPINGûõBNûANDûONLYûRETREATINGûTOû WORKûATûTHEûMINUTEû3HORT DATEDûFORûSUREû AûLITTLEûBITûHIGHER vûSAIDûTHEûSYNDICATEûBANKER õBNûATûTHEûlNALûUPDATE ûENABLINGûTHEû !LSO ûGREENûISûHELPFULûANDûPOTENTIALLYû !NALYSTSûATû#REDIT3IGHTS ûHOWEVER ûPUTûFAIRû BORROWERûTOûRAISEûõBNûOFûNEWûFUNDINGû SOMETHINGûTHATûPROVIDESûAûBITûOFû VALUEûATûBPnBPûANDûALSOûSAIDûTHATûTHEYû $EMANDûWASûDRIVENûBYûAûCOMBINATIONûOFû DIVERSIlCATIONûASûWELL vûSAIDûAûSECONDû WOULDûHAVEûBOUGHTûTHEûBONDSûDOWNûTOûTHISû FACTORS ûSAIDûONEûSYNDICATEûBANKERûINVOLVED BANKER LEVEL h)TûAûVERYûSOLIDûBUSINESSûANDûASûAûNEWû ,IKEûALLûOFûTHEûHIGH GRADEûEUROûCORPORATESû h4HEû%5û4AXONOMYûALIGNMENTûISûAûNICEû ISSUER ûACCOUNTSûHAVEûSIGNIlCANTûSPACEûTOû OUTûONû7EDNESDAY ûTHEûISSUERSûLACKûOFûAûEUROû FACTORûTOûHAVEûnû)ûDOUBTûITûISûAûMAKEûORû ADD vûHEûSAID (AVINGûmOATEDûSHARESûPUBLICLYûFORûTHEûlRSTû ALL CORPORATE BONDS IN STERLING ALL INVESTMENT-GRADE BONDS IN EUROS TIMEûTHEûWEEKûBEFOREûLAST û6ANTAGEû4OWERSûISû BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE STILLûûOWNEDûBYû6ODAFONE Managing No of Total Share Managing No of Total Share BNP Paribas, Bank of America, Citigroup, bank or group issues £(m) (%) bank or group issues €(m) (%) Deutsche Bank, LBBW and SMBC Nikko set the 1 Barclays 11 964.73 14.6 1 BNP Paribas 103 33,146.29 8.6 SPREADSûONûõMûOFûFOUR YEAR ûõMûOFû 2 HSBC 9 884.56 13.4 2 JP Morgan 85 27,847.65 7.2 SIX YEARûANDûõMûOFûNINE YEARûNOTESûATû 3 Lloyds Bank 7 582.45 8.8 3 Deutsche Bank 64 23,130.18 6.0 BP ûBPûANDûBPûOVERûMID SWAPS û 4 NatWest Markets 7 537.10 8.1 4 SG 66 22,976.64 6.0 FOLLOWINGû)04SûOFûBPûAREA ûBPûAREAûANDû 5 Santander 5 488.11 7.4 5 Citigroup 65 21,769.02 5.6 BPûAREA 6 Bank of America 3 423.77 6.4 6 HSBC 67 20,326.12 5.3 4HEREûWASûANûELEMENTûOFûPRICEûDISCOVERYû 7 JP Morgan 3 389.48 5.9 7 Goldman Sachs 46 20,248.46 5.3 TOûTHEûTRADE ûGIVENûTHEûCOMPANYûHADûNOTû 8 Goldman Sachs 3 369.31 5.6 8 Barclays 60 19,357.10 5.0 ISSUEDûBEFOREû"UTûWHILEûTHEREûWASûNOûFAIRû 9 RBC 4 358.41 5.4 9 Credit Agricole 64 18,809.29 4.9 VALUE ûTHEûPRICEûPOINTSûLEADSûCONSIDEREDû 10 BNP Paribas 3 252.65 3.8 10 UniCredit 67 17,112.84 4.4 INCLUDEDûBONDSûFROMûMAJORITYûOWNERû Total 21 6,606.30 Total 381 385,387.94

6ODAFONEûANDûSECTORûPEERSûSUCHûASû!MERICANû Excluding ABS/MBS, equity-related debt. 4OWERS û4$&û)NFRASTRUCTUREûANDû#ELLNEX Source: Refinitiv SDC code: N8a Source: Refinitiv SDC code: N9

International Financing Review March 27 2021 29

5 IFR Bonds 2376 p21-58.indd 29 26/03/2021 20:23:11 BREAKûFORûANYûINVESTOR ûTHOUGH vûSAIDûAû DEBUTûGREENû4HEûISSUERûISûEXPECTINGûTOû h)TûISûAûLOTûMOREûCONCESSIONûTHANûMOSTû $#-ûBANKERûAWAYûFROMûTHEûDEALûh4HATû BRINGûAûõMûEIGHT YEARûFOLLOWINGû PEOPLEûWOULDûHAVEûEXPECTED vûSAIDûAûTHIRDû SAID ûFORûINVESTORS ûTHATûADDITIONALûCLARITYû INVESTORûCALLSûBEGINNINGûONû-ARCHû BANKERûAWAYûFROMûTHEûDEALûh)TSûNOTûTHEû ANDûTHEûEASILYûIDENTIlABLEûREQUIREMENTSûITû BESTûSIGNûFORûTHEûMARKET ûTHOUGHû)ûTHINKû HASûISûCERTAINLYûHELPFULv CARMILA GETS TOUGH RECEPTION THATSûSOMETHINGûTHATSûSECTORûRELATEDû)TSû %/.ûALREADYûHADûAûROBUSTû%3'ûPROlLEû)Tû AMID COVID CONCERNS ONEûOFûTHESEûCREDITSûTHATûISûDIRECTLYûAFFECTEDû CARRIESûANû!!û%3'ûRATINGûFROMû-3#)ûANDûISû BYûTHEûLOCKDOWNSvû 'ERMANYSûLARGESTûCORPORATEûGREENûBONDû &RENCHûSHOPPINGûCENTREûOWNER CARMILA &URTHERûRESTRICTIONSûINû%UROPEûHAVEû ISSUERû)TûHASûALSOûSIGNALLEDûTHATûnûOFû REFRESHEDûTHEûLONGûENDûOFûITSûCURVEûWITHûAû RESULTEDûINûCLOSURESûANDûTIGHTERûTRADINGû ITSûFUTUREûINVESTMENTSûWILLûBEû%5û õMûEIGHT YEARûTRANSACTIONûLASTûWEEK û BEINGûAPPLIEDûTOûûCENTRESûOWNEDûBYû 4AXONOMYûALIGNED BUTûTHEûDEALûSTRUGGLEDûTOûGETûOVERûTHEûLINEû #ARMILAûACROSSû&RANCE û3PAINûANDû)TALYû4HEû 4HROUGHûFUNDINGûRAISEDûUNDERûTHEû ASûCONCERNSûGROWûOVERûANOTHERûRISEûINû CLOSURESûREPRESENTûûOFû#ARMILASûTOTALû ISSUERSûFRAMEWORK ûTHEûCOMPANYûINVESTSû #OVIDûINFECTIONûRATESûACROSSû%UROPEû GROSSûRENTSû INûPROJECTSûTHATûIMPROVEûANDûMAKEûMOREû 4HEûDEALûWASûJUSTûABOUTûCOVERED ûWHILEû 0ROCEEDSûFROMûTHEûBONDûISSUEûWILLûGOû ENVIRONMENTALLYûFRIENDLYûITSûDISTRIBUTIONû THEûlNALûPREMIUMûWASûATûTHEûHIGHûENDûOFû TOWARDSûTHEûPARTIALûREPAYMENTûOFûAûBANKû NETWORKS ûRENEWABLEûENERGYûPRODUCTIONû THEûRANGEûSEENûTYPICALLYûINûTHEûEUROû FACILITYûPROVIDEDûBYûTHEûBOOKRUNNERS û ANDûSTORAGE ûENERGYûEFlCIENCYûINITIATIVESû INVESTMENT GRADEûMARKETû WHICHûMATURESûINû*UNEû ANDûCLEANûTRANSPORTATION !ûLEADûSAIDûTHEûDEALSûRECEPTIONûWASûAû $URINGûTHEûEARLYûSTAGESûOFûTHEûDEALSû hCOMBINATIONûOFûSECTOR ûRATINGûANDûAû UNRATEDS OFFER SPREAD AND EXECUTION ûBANKERSûHIGHLIGHTEDûTHATûITû SLIGHTLYûLESSûCONDUCIVEûMARKETv LAND SMOOTHLY COULDûBEû%/.SûLASTûBENCHMARKûBONDûISSUEû !ûBANKERûAWAYûFROMûTHEûDEALûATTRIBUTEDû OFûTHEûYEARû4HEûUTILITYûHASûINDICATEDûTHATû THEûOUTCOMEûTOûANûABUNDANCEûOFûRECENTû 4HREEûUNRATEDûCORPORATESûHADûNOûPROBLEMû ITSûFUNDINGûNEEDSûAREûBELOWûõBNûTHISûYEARû SUPPLYûANDûTOûTHEûCREDITûITSELF ûWHICHûONLYû GENERATINGûHEALTHYûORDERûBOOKSûLASTûWEEKû ANDûINû*ANUARYûITûISSUEDûAûõMûû HASûANû30ûRATING DESPITEûTHEûNICHEûNATUREûOFûTHEûCREDITSû *ANUARYûû(OWEVER ûGIVENûTHEûNEWû h)TSû"""ûNEGATIVE ûTHERESûDElNITELYû (OWEVER ûTHEûDEALSûDIDûCOMEûATûSUBSTANTIALû BENCHMARKûRAISEDûõM ûTHEREûISû SENSITIVITYûTOûTHATû4HEREûWASûNOûPRE SPREADS POTENTIALLYûROOMûFORûONEûMORE MARKETINGûANDûWITHûREGARDSûTOûCOMMERCIALû 3UPPLYûFROMûUNRATEDûCORPORATEû %/.ûHASûCOMEûTHROUGHûTHEû#OVID û REALûESTATE ûINVESTORSûREALLYûNEEDûTOûDOûTHEû BORROWERSûHASûGROWNûRECENTLYû,ASTûWEEKSû PANDEMICûRELATIVELYûUNSCATHEDû)TûREPORTEDû WORKûCREDIT BY CREDITûTOûUNDERSTANDûTHEû DEALSûFOLLOWEDûONûFROMûTRADESûBYû.ESTEû SOLIDûFULLûlNANCIALûYEARûRESULTSûEARLIERûLASTû VARIOUSûCOUNTRYûEXPOSURESû)ûTHINKûITSûANû ANDû6ILMORINûû#IE ûTHEûPREVIOUSûWEEKû WEEK ûANNOUNCINGûADJUSTEDûNETûINCOMEûOFû EXERCISEûTHATûSHOULDûNOTûBEûDONEûINûAûDAY vû 3OMEûBANKERSûSAWûTHISûASûPOTENTIALLYûTHEû ALMOSTûõBN ûCOMPAREDûWITHûõBNûINû THEûBANKERûSAIDû RESULTûOFûAûSTABILISINGûMARKETûTHATûISû lNANCIALûYEARû 4HEûLEADûSAID ûHOWEVER ûITûWASûNOTûCLEARû INCREASINGLYûSUPPORTIVEûOFûAûRANGEûOFûNEWû h'OODûRESULTSûlNANCIALLY ûWHILEû%/.û THATûPRE MARKETINGûWOULDûHAVEûNECESSARILYû ISSUESû/THERS ûHOWEVER ûPUTûITûDOWNûTOû HASûALSOûREPORTEDûSOMEûSUCCESSûINûTURNINGû HELPEDûTHEûDEAL ûWHILEûBOOKBUILDINGûWASû PUREûCOINCIDENCE around the loss-making supply business in MADEûTOUGHERûBYû+LEPIERRESûDOWNGRADEû “The market has been open and THEû5+ûANDûHASûACHIEVEDûõMûOFûTHEû THATûMORNINGû+LEPIERRE ûANOTHERû&RENCHû RECEPTIVEûTOûUNRATEDûISSUANCEûFORûSOMEû õMûSYNERGIESûPLANNEDûFORû vûWROTEû SHOPPINGûCENTREûOPERATOR ûWASû TIME vûSAIDûAû$#-ûBANKER ".0û0ARIBASûANALYSTS DOWNGRADEDûTOû""" ûBYû30ûFROMû!n "UT ûREGARDLESS ûTHEûBORROWERSûFOUNDû h7EûEXPECTû%/.ûTOûACHIEVEûITSû !ûSECONDûBANKERûAWAYûFROMûTHEûDEALûSAIDû GOODûTRACTIONûWITHûINVESTORSûFRAPORT, the DELEVERAGINGûTARGETSûANDûVIEWûITûASûAûHIGH THEû#ARMILAûDEALûSHOULD ûINûTHEORY ûHAVEû AIRPORTûOPERATORûTHATûRUNSû&RANKFURTû QUALITY ûLOW RISKûUTILITYv lTTEDûTHEûMARKETSûMOOD AIRPORT ûAMONGûOTHERS ûSAWûTHEûCOMBINEDû h4HEûMARKETûHASûBEENûRECEPTIVEûTOûTHESEû BOOKûFORûITSûNEWûõMûSEVEN YEARûANDûTHEû MORE TO COME ;#OVID IMPACTED=ûNAMESûSOûFARû7HETHERû õMûTAPûOFûITSûû*ULYûSûREACHû 4HEREûAREûALSOûSOMEûOUTRIGHTûlRST TIMEû THATûWILLûCHANGEûWITHû%UROPEûANDûLOCKDOWNSû õBN GREENûBONDSûINûTHEûPIPELINEûFORûTHISûWEEKû )ûAMûNOTûSURE ûBUTûEVENûISSUERSûLIKEûTHEMûAREû )TûDID ûTHOUGH ûOFFERûUPûAûCONSIDERABLEû CANARY WHARF GROUP INVESTMENTû"AA"""n û GETTINGûDEALSûCLEAREDûEASILYû4HEREûISûAûBITûOFû AMOUNTûOFûSPREADûONûTHEûNEWûBONDû THEû,ONDONû2%)4 ûMANDATEDûFORûITSû SPREAD ûITSûNOTûPARTICULARLYûLONG ûSOûITûlTSv COMPAREDûWITHûITSûSECONDARYûLEVELS û INAUGURALûGREENûBONDûLASTûWEEKûANDûISûDUEû BNP Paribas, Credit Agricole, Natixis, Societe PERHAPSûCOMPENSATINGûFORûTHEûWORSENINGû TOûTAPûTHEûMARKETûTHISûWEEKûFORûaMM Generale, Banco Sabadell and La Banque Postale OUTLOOKûFORûAIRûTRAVELûINû%UROPEûGIVENûTHEû EQUIVALENTûACROSSûSTERLINGûFOUR YEARûANDû BEGANûMARKETINGûANûEXPECTEDûõMûTRADEû RE IMPOSITIONSûOFûLOCKDOWNSûINûSEVERALû SEVEN YEARûTRADESûANDORûEUROûlVE YEARû ATûMID SWAPSûPLUSûBPnBP COUNTRIES BONDS #ARMILAûHASûAûõMûû*UNEûûBONDû 4HEûSEVEN YEARûCAMEûTHROUGHûATû)04SûOFû !CCORDINGûTOûLEADS ûTHEûNOTESûAREûBEINGû ISSUE ûWHICHûWASûQUOTEDûAROUNDûPLUSû THEûMID SWAPSûPLUSûBPûAREAûANDûLANDEDû RUNûTHROUGHûINVESTMENT GRADEûDESKSûBUTû BPûPRE MANDATEûONû4RADEWEB ATûBPû,EADSûHIGHLIGHTEDûITSûõMû AREûEXPECTEDûTOûAPPEALûTOûCROSSOVERû "ANKERSûESTIMATEDûFAIRûVALUEûWITHINûAû û*ULYûSûANDûõMûû*ULYû INVESTORSûASûWELL BPnBPûRANGEû)NûTHEûEND ûLEADSû SûASûGOODûCOMPARABLESû4HEYûWEREû 4HEû%UROPEANûRESIDENTIALûPROPERTYûlRMû PRICEDûTHEûBONDSûATûPLUSûBP ûBUTûOFFûJUSTû SPOTTEDûATûSPREADSûOFûBPûANDûBP DEUTSCHE WOHNENû!!n ûHASûANNOUNCEDû õMûOFûORDERSûASûDEMANDûFELLûAWAYûFROMû h"ECAUSEûOFûTHEûLOCKDOWNSûINû%UROPE û INVESTORûMEETINGSûFORûAûEUROûBENCHMARKû AûPEAKûOFûõM PLUSû SENTIMENTûACROSSûMARKETSûHASûCOMEûDOWNû DUAL TRANCHEûDEALûWITHûMATURITIESûOFûû 4HATûWASûINûSTARKûCONTRASTûTOû#ARMILASû AûTOUCH vûSAIDûAûSYNDICATEûBANKER ANDûûYEARSû)NVESTORûCALLSûBEGANûONû õMû-AYûûBONDûOFFERINGûTHATûWASû h7EûHAVEûTOûKEEPûMONITORINGûTHEû -ARCHû ISSUEDûLASTû.OVEMBER ûWHICHûCAMEû SITUATION ûBUTûWHATûISûNOTABLEûISûTHATûAûLOTû ,OGISTICûREALûESTATEûPLAYERûVGP, rated THROUGHûFAIRûVALUEûANDûWASûMOREûTHANûlVEû OFûVALUATIONSûFORûAIRPORTS ûAIRLINESûANDûTHEû """nûBYû&ITCH ûISûALSOûLININGûUPûITSûOWNû TIMESûSUBSCRIBED like are based on people being able to

30 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 30 26/03/2021 20:23:11 BONDS CORPORATES

CLEARLYûSEEûTHEûLIGHTûATûTHEûENDûOFûTHEû#OVIDû 3TEDINSûRARITYûVALUEûINûTHEûSUBORDINATEDû TUNNEL ûANDûTHATûISûAûLOTûLESSûCLEARûATûTHEû MARKETûPROVINGûITSûWORTHûFORûTHEûISSUERû STERLING MOMENTv "EFOREûTHISûNEWûISSUE ûITûHADûONLYûONEû 4HEûTAPûPRICEDûATûBPûOVERûSWAPSû OTHERûHYBRIDûnûAûõMûNOTEûISSUE ûWHICHû SOUTHERN WATER SUSTAINABLE BayernLB, BNP Paribas, Commerzbank, DZ WASûLAUNCHEDûINûûANDûISûUPûFORûCALLûTHISû BOLSTERS STERLING FLOW Bank and LBBW WEREûACTIVEûBOOKRUNNERS COMINGû$ECEMBERû!NDûWITHûTHATû &RENCHûLONG TERMûCAREûPROVIDERûORPEA OUTSTANDINGûHYBRIDûSUBJECTûTOûAûCONCURRENTû SOUTHERN WATER SERVICESûSUSTAINEDûTHEûRECENTû also issued its inaugural sustainable bond TENDERûOFFER ûLEADSûWEREûABLEûTOûGENERATEû PICK UPûINûSTERLINGûHIGH GRADEûPRIMARYû ONû4HURSDAY ûANDûALTHOUGHûTHEûISSUERûWASû EVENûGREATERûPRICINGûTENSION MARKETûACTIVITYûWITHûANû%3'ûOFFERINGûLASTû INITIALLYûEXPECTINGûAûSIZEûOFûõMûFORûTHEû h)TSûCLEARûTHATûGIVENûTHEûLOWûBETAû 4UESDAY ûHOWEVER ûTHEû5+ûMARKETûISûSTILLû SEVEN YEARûTRANSACTION ûDEMANDûWASûSUCHû CHARACTERISTICSûOFûTHISûBORROWER ûINVESTORSû UNDERSUPPLIEDûANDû5+ûBUYERSûAREû THATûITûWASûABLEûTOûINCREASEûTHEûSIZEûOFûTHISû SEEûTHISûNAMEûASûAûHAVENû)TSûGOTûTHEûRIGHTû INCREASINGLYûLOOKINGûTOWARDSûOTHERûMARKETS TOûõM POSTCODEûBEINGû$UTCHûANDûISûTHEûTHIRDû 3TERLINGûCORPORATESûISSUEDûaBNûTHEû 4HEûBOOKûEXCEEDEDûõBNûANDûBNP LARGESTûUTILITYûTHERE vûSAIDûAûLEAD WEEKûBEFOREûLASTûACROSSûlVEûTRANCHES û Paribas, Credit Agricole, HSBC, Natixis and h4HISû;NEWûTRANSACTION=ûISûAûRElNANCINGû MAKINGûITûBYûFARûTHEûBUSIESTûWEEKûFORûSUPPLYû Societe GeneraleûlXEDûTHEûSPREADûATûBPû OFûTHEûOUTSTANDINGûHYBRIDûANDûWEûHAVEû THISûYEAR ûACCORDINGûTOû)&2ûDATA OVERûSWAPS ûBPûINSIDEûOFû)04S ûCOMINGûATû ANNOUNCEDûAûTENDERûOFFERû;CONCURRENTLY=û 5+ûUTILITYû3OUTHERNû7ATERû3ERVICESû"AA AûYIELDûOFû )TSûAûNICEûOPPORTUNITYûFORûTHOSEûWHOû """ """ ûSTABLE ûNEGATIVE ûNEGATIVE ûKEPTû /RPEAûONLYûHADûONEûBENCHMARK SIZEDû already hold the old hybrids to keep an ISSUANCEûTICKINGûOVER ûPRINTINGûAûaMûSIX BONDûOUTSTANDINGûBEFOREû4HURSDAY ûAû EXPOSUREûTHROUGHûTHEûTENDER ûANDûFORûNEWû YEARûSUSTAINABLEûSENIORûSECUREDûBONDû,IKEû õMûû-ARCHûûTHATûWASû INVESTORSûTOûGETûEXPOSUREv ITSûCOUNTERPARTSûINûTHEûEUROûMARKET ûTHEû YIELDINGûûPRIORûTOûTHEûANNOUNCEMENTû ,EADS ING, MUFG, NatWest Markets BORROWERûSTARTEDûOFFERINGûTHEûBONDSû OFûTHEûNEWûDEALûONû-ONDAY and Rabobank began marketing at an RELATIVELYûGENEROUSLY ûATû)04SûOFûBPn &ORûOTHERûPRICEûPOINTS ûLEADSûLOOKEDûTOû ANNUALûYIELDûOFûûAREAûFORûTHEû BPûVERSUSû'ILTS BONDSûISSUEDûBYûUNRATEDû&RENCHû NO GROWûDEAL BNP Paribas, Santander and SMBC Nikko TELECOMMUNICATIONSûCOMPANYû)LIAD ûWHICHû h4HEûCALLûDATEûISûRATHERûAûSHORTûONE û WEREûABLEûTOûPUSHûTHISûDOWNûTOûLANDûATû HASûNOTESûDUEûINû ûûANDûûTHATû WHICHûMAKESûINVESTORSûMOREûCOMFORTABLEû BPûOVERû3EVERALûBANKERSûSAWûFAIRûVALUEû WEREûSEENûATûYIELDSûRANGINGûFROMûûTOû INûDEPLOYINGûTHEIRûCASHûFORûTHISûKINDûOFû AROUNDûTHEûBPnBPûMARK name on hybrids, taking on board the kind h3OUTHERNû7ATERûLANDEDûWITHûABOUTûBPû !Sû/RPEASûAREûSUSTAINABLEûBONDS ûTHEû OFûVOLATILITYûTHATûWEûHAVEûSEENûATûTHEûLONGû NEW ISSUEûCONCESSION vûSAIDûAûSYNDICATEû ISSUERûCANûFUNDûGREENûPROJECTSûSUCHûASûLOW ENDûOFûTHEûCURVE ûWITHûUNDERLYINGûYIELDSû BANKERûh4RANSACTIONSûTHATûHAVEûMOREûSPREADû CARBONûBUILDSûANDûENERGY EFlCIENCYû MOVINGûUPûINûAûSIGNIlCANTûFASHIONûOVERûTHEû ONûTHEMûAREûDElNITELYûWORKINGûBETTER ûANDû)û INITIATIVES ûASûWELLûASûSOCIALûPROJECTS û LASTûWEEK vûTHEûLEADûSAID THINKûTHEûSPREADûATûWHICHûTHATûNAMEûTRADESû INCLUDINGûTHOSEûTHATûENABLEûACCESSûTOû (EûADDEDûTHATûTHEûDECISIONûTOûCAPûTHEû WASûHELPFULûINûGENERALû"UTûALSO ûTHEûMARKETû ESSENTIALûSERVICES DEALûATûAûSMALLûSIZEûWOULDûAPPEALûTOû ISûSLIGHTLYûBETTERûTHISûWEEKûTHANûLASTûANDû ,ASTû4UESDAY ûUNRATEDû"ELGIANûPHARMAû INVESTORSûANDûIMPACTûPOSITIVELYûONûPRICINGû there’s less and less sterling pipeline that COMPANYûUCBûISSUEDûAûõMûNO GROWû DYNAMICS INVESTORSûCANûINVESTûINTOv SEVEN YEARû4HEûBOOKûREACHEDûõBNûANDû 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û5+ûINVESTORSûHAVEûNOTûBEENûPUTû 0ROCEEDSûFROMûTHEûDEALûAREûBEINGû CORPORATESûTOûISSUEûAûHYBRIDûWITHûAûCOUPONû OFFûBYûTHEûCOMPANYSûPASTûFAILURESûAND ûLASTû USEDûTOûRElNANCEûTHEûCOMPANYSû ATûûORûLESSû!LTHOUGHûITûWASûDIFlCULTûTOû -AY ûITûISSUEDûITSûlRSTûSUSTAINABLEûBOND û ACQUISITIONûOFû2Aû0HARMAû,EADSûALSOû BEûPRECISEûABOUTûTHEûSUBSENIORû RAISINGûaMûACROSSûTWOûTRANCHES HIGHLIGHTEDûTHATûTHEûNEWûISSUEûCOMESûINû DIFFERENTIAL û3TEDINûHADû3EPTEMBERûSû &UNDINGûRAISEDûVIAûISSUANCEûUNDERû CONJUNCTIONûWITHûTHEûBORROWERûEXERCISINGû BIDûATû ûACCORDINGûTOû2ElNITIVûDATA 3OUTHERNû7ATERSûSUSTAINABLEûlNANCEû THEûCALLûONûITSûõMûûNOTESûDUEû !ûBANKERûAWAYûFROMûTHEûDEALûSAIDû3TEDINû FRAMEWORKûCANûBEûDIRECTEDûTOWARDSûPROJECTSû !PRILû GOTûAûPRETTYûGOODûRESULT ûHAVINGûLANDEDûATû THATûFALLûINTOûEITHERûGREENûORûSOCIALû FAIRûVALUE CATEGORIESû3UB CATEGORIESûWITHINûEACHû STEDIN RAKES IN ORDERS FOR h)TûWENTûWELL ûCONSIDERINGûWEûWEREûABLEû INCLUDEûAFFORDABLEûBASICûINFRASTRUCTURE û RARE HYBRID 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5 IFR Bonds 2376 p21-58.indd 31 26/03/2021 20:23:11 MARKETûCOMPAREDûTOûNEARLYûaBNûDURINGû (AVINGûRAISEDû!MûFROMûTHESEûTWOû 4HEûMONEYûRAISEDûWILLûBEûUSEDûTOûFUNDû THEûSAMEûPERIODûINûû)Nû ûTHEûlGUREû TRANSACTIONS û,ENDLEASEûHASûBECOMEûTHEû EXISTINGû7EST#ONNEXûOPERATIONSûANDû STOODûCLOSEûTOûaBN ûACCORDINGûTOû)&2ûDATA LARGESTûNON BANKû!38 LISTEDûISSUERûOFûGREENû RElNANCEûDEBT !NDûTHEûOVERALLûLOWERûLEVELSûOFûSUPPLY ûASû BONDSûTOûDATE WELLûASûTHEûPOORERûLIQUIDITYûINûTHEûSTERLINGû 4HEûPROCEEDSûWILLûSUPPORTûTHEûDELIVERYûOFû MARKETûCOMPAREDûTOûEUROSûORûDOLLARS ûAREû GREENûBUILDINGSûACROSSûELIGIBLEûPROJECTSû CAUSINGûSOMEûINVESTORSûTOûLOOKûFURTHERû WITHINû,ENDLEASESû!BNûGLOBALû AlELD DEVELOPMENTûPIPELINEûnûINCLUDINGûûMAJORû FIG h7EûAREûALLOCATINGûMOREûTOWARDSûEUROSû URBANISATIONûPROJECTSûSUCHûASû3YDNEYSû ANDûDOLLARSûANDûWEûHAVEûADJUSTEDûOURû "ARANGAROO ûTHEû5+Sû)NTERNATIONALû1UARTERû STERLING ONLYûPORTFOLIOSûTOûALLOWûTHEMûTOû ,ONDONûANDû#HICAGOSû3OUTHBANK US DOLLARS TAKEûADVANTAGEûOFûSOMEûOPPORTUNITIESûINû 4HEûPROJECTSûGREENûBENElTSûRANGEûFROMû EUROSûANDûDOLLARSûANDûOVERCOMEûTHEûPROBLEMû THEûLOWERINGûOFûCARBONûEMISSIONSûTOû NATWEST TO TENDER LEGACY NOTES OFûILLIQUIDITYûANDûLESSûSUPPLY vûSAIDû*AMESû REDUCINGûTHEûENVIRONMENTALûIMPACTûOFû AHEAD OF REGULATORY DEADLINE 6OKINS ûHEADûOFû5+ûINVESTMENT GRADEûCREDITû MATERIALSûANDûTHEûDELIVERYûOFûHEALTHûANDû ATû!VIVAû)NVESTORS WELLBEINGûBENElTS NATWEST GROUPûISûTARGETINGûSOMEû53BNû h"UTû)ûWOULDNTûSAYûITûISûTIMEûTOûBEûOVERLYû h7EREûlRMLYûOFûTHEûVIEWûTHATûTRULYûGREATû OFûOUTSTANDINGûSUBORDINATEDûNOTESûINûANûANY CONCERNEDûABOUTûTHEûSTERLINGûMARKETû4HESEû PLACESûMUSTûDELIVERûPOSITIVEûENVIRONMENTALû AND ALLûTENDERûOFFERûASûITûSEEKSûTOûCLEANûUPûITSû ILLIQUIDITYûISSUESûAREûNOTHINGûNEWûBUTûWEû ANDûSOCIALûOUTCOMESûWHILEûALSOûCREATINGû CAPITALûSTACKûANDûTRIMûOLDûINSTRUMENTSû MUSTûENSUREûWEûAREûPAIDûFORûITû)SSUANCEûISû VALUEûFORûOURûSECURITYûHOLDERS vûSAIDû&RANKû LOSINGûREGULATORYûVALUEû DOWNûTHISûYEARûONûLASTûYEAR 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YEARûSEGMENTûFOLLOWINGûTHEû SUBMITûPLANSûDETAILINGûHOWûTHEYûWILLûTACKLEû CORPORATEûBONDSûINûTHEûSECONDARYûMARKET û RECENTûSPIKEûINûGLOBALûLONG TERMûYIELDSûWITHû ANYûSO CALLEDûhINFECTIONûRISKvûPOSEDûBYûSUCHû EVENûINûTHEûFACEûOFûLAGGINGûSUPPLY AûWELL RECEIVEDûDEBUTû!Mû53M û LEGACYûINSTRUMENTSûTOûTHEIRûCAPITALûSTACKû h)ûAMûALSOûSURPRISEDûTHATûWITHûSOûLITTLEû -4.ûSENIORûSECUREDûNOTEûSALEûVIAûJOINTûLEADû 4HEûMAJORITYûOFûTHEûDEBTûINûSCOPEûFORû ISSUANCEûINûSTERLINGûHOWûSECONDARYûLEVELSûAREû managers ANZ, CBA and Mizuho .AT7ESTSûBUYBACKûISûNOTûMADEûUPûOFûLEGACYû NOTûTIGHTER vûSAIDûAûSECONDûSYNDICATEûBANKER !FTERûAûRUNûOFû2%)4ûISSUANCEûINûTHEû SECURITIESûBUTûOFû4IERûûNOTESûTHATûAREûLOSINGû h)ûGUESSûTHATSûTHEûISSUEûWHENûTHEûINVESTORû INTERMEDIATEûPARTûOFûTHEû!USTRALIANûCURVE ûTHEû REGULATORYûVALUEû4HESEû53BNûOFû BASEûISûMOREûCONCENTRATED ûANDûWITHINûTHATû 3YDNEYûTOLLûMOTORWAYûNETWORKûATTRACTEDûANû OUTSTANDINGû4IERûSûHAVEûPASSEDûTHEIRûlFTHû CONCENTRATEDûINVESTORûBASE ûTHOSEûSAMEû 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ûFROMûITSû !USTRALIA û#ANADAûANDûTHEû53 ûTYPICALLYû "UTû5+ûBANKSûLEGACYûINSTRUMENTSûAREû SECONDûGREENûBONDûOFFERING ûAû YEARûSENIORû ISSUESûBONDSûINûTHEû53ûDOLLARûANDûEUROû COMINGûINTOûSHARPûFOCUSûAHEADûOFûAû-ARCHûû UNSECUREDûTRANSACTIONûARRANGEDûBYûJOINTû markets so Tuesday’s deal represented a rare DEADLINEûFORûBANKSûTOûSUBMITûACTIONûPLANSûTOû lead managers ANZ, BoC, CBA and HSBC OPPORTUNITYûFORûINVESTORSûTOûBUYû!USTRALIANû REGULATORSû4HESEûAREûINTENDEDûTOûOUTLINEû 4HEûû-ARCHûûSûPRICEDûATû DOLLARûBONDSûINûTHEûSECTOR HOWûBANKSûWILLûRETIREûLEGACYûCAPITALûBEFOREû ûTOûYIELDû ûINSIDEûTHEûBPn ,OCALûACCOUNTSûBOUGHTûûOFûTHEûNOTEû THEû#APITALû2EQUIREMENTSû2EGULATIONû#22û) û BPûGUIDANCEûATûASSETûSWAPSûPLUSûBP WITHû!SIAûTAKINGûûANDûTHEûRESTûOFûTHEû TRANSITIONALûPERIODûCOMESûTOûANûENDûONû !USTRALIANûINVESTORSûBOUGHTûûOFûTHEû WORLDûû&UNDûMANAGERSûWEREûALLOTTEDû û $ECEMBERûûû4HISû%5ûLAWûWASûlRSTû lRSTûCORPORATEûGREENûBONDûISSUEûFROMûTHEû INSURANCEûCOMPANIESû ûBANKSûûANDû 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32 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 32 26/03/2021 20:23:12 BONDS FIG

&RANCE û3PAIN û'ERMANYûANDûTHEû )NVESTORSûHAVEûBEENûKEENûTOûHOLDûONTOûTHEû AWAYû-EANWHILE ûTHEû YEARûWASûhMOREû .ETHERLANDS ûTHEû5+ûHASûNOTûPROVIDEDûBANKSû notes through multiple attempts at SNUGvûTOûTHEûSECONDARIES ûLAUNCHINGûJUSTû WITHûAûLEGISLATIVEûSOLUTIONSûTOûDEALûWITHûTHEû TENDERINGûANDûONEû53ûDEALER BROKERûSAIDûTHEû BPûWIDEûOFû3ANTANDERSûSûTHATûWEREû ISSUEû LEVELûDIDûNOTûLOOKûALLûTHATûATTRACTIVEûFORûTHEû TRADINGûATûAû' SPREADûOFûBP ûTHEûBANKERû h/URûAPPROACHûISûTHATûWEûHAVEûGOTûLEGACYû NEWûOFFERûEITHERû SAIDû INSTRUMENTSûûûûANDûTHEREûAREûTHINGSûWEûMAYû )NDEED ûTHEûPREVIOUSLYûTARGETEDûFOURûNOTESû "ANCOû3ANTANDERûWASûLASTûINûTHEû53û LOOKûTOûDOûTOûADDRESSûTHEûSIZEûOFûNOTIONALû INûTHISûLATESTûTENDERûSTARTEDûWITHûAûPRINCIPALû DOLLARûMARKETûINû.OVEMBERûWITHûAû OUTSTANDINGûOFûANYûPROBLEMATICû AMOUNTûISSUEDûOFû53BN ûBUTûINVESTORSû SUBORDINATEDû4IERûû53BNû YEAR û INSTRUMENT vûSAIDûAûSOURCEûCLOSEûTOûTHEû CONTINUEûTOûCLINGûONûTOû53BNûLEFTû RATEDû"AA""" """û4HEûûSû TRANSACTION OUTSTANDINGû PRICEDûATûBPûOVERû4REASURIESûBUTûWEREû h4HISûISûHOWûWEûHAVEûDONEûITûPREVIOUSLYû h7EVEûNOWûHADûAûDECADEûOFûLEGACYû LASTûSEENûTRADINGûATûAû' SPREADûOFûBP û ANDûTHISûISûHOWûWEûPLANûTOûDOûITûINû û GRANDFATHERINGûWHICHûISûCOMINGûTOûANûENDû ACCORDINGûTOû-ARKET!XESSûDATAûCitigroup, THEREFOREûWEûDONTûTHINKûTHERESûAû BYûTHEûENDûOFûTHEûYEAR ûSOûTHEûBULKûOFûTHISû Barclays, HSBC, JP Morgan, Morgan Stanley MEANINGFULûPROBLEMûFORûUSû7EûHAVEû STUFFûWILLûHAVEûBEENûTAKENûOUT vûONEûHEADûOFû and SantanderûWEREûLEADûBOOKRUNNERSûONû INDICATEDûWEûDONTûPLANûTOûCOUNTûTHOSEû SYNDICATEûSAIDûh)TLLûBEûAûNICEûPAYDAYûFORû THEûTRADEû INSTRUMENTSûTOWARDSûOURûREGULATORYûPOSITIONû INVESTORSûANDûBANKSûWILLûBEûLOOKINGûTOû -EANWHILE û$UTCHûBANKûING, rated ASûWELLv MINIMISEûHAVINGûTOûPAYûTHROUGHûTHEûNOSEv "AA!n ûISSUEDûTWOûlXED RATEûTRANCHESû "OTHûLEGACYûSECURITIESûTARGETEDûINû 4HEûBANKûISûOFFERINGûANûADDITIONALûBPn INCLUDINGû53BNûSIX YEARûNON CALLûlVEû .AT7ESTSûEXERCISEûHAVEûAûCALLûOPTIONûWHENû BPûTOûTENDERûTHEû4IERûS ûBANKERSû ANDû53Mû YEARûNON CALLûûTRANCHESû THEYûLOSEûREGULATORYûCAPITALûVALUE ESTIMATEDûBASEDûONû4UESDAYSûTRADINGûLEVELS THATûPRICEDûATû4REASURIESûPLUSûBPûANDû -ANYûLEGACYûINSTRUMENTSûACROSSûTHEû BP ûRESPECTIVELYû)NITIALûPRICEûTHOUGHTSû BANKINGûSECTORûHAVEûSIMILARûOPTIONSûUPONû BANCO SANTANDER RETURNS TO WEREûSETûINûTHEûAREAûOFûBPûANDûBP SUCHûCAPITALûEVENTS ûMEANINGûMOSTûISSUERSû US DOLLARS ).'ûALSOûPRICEDûAû53Mû.#û SHOULDûHAVEûTHEûABILITYûTOûCALLûANYû mOATING RATEûNOTEûATûBPûOVERûTHEû PROBLEMATICûSECURITIESûFROMû*ANUARYûûû 4WOû%UROPEANûBANKSûTAPPEDûTHEû53ûDOLLARû SECUREDûOVERNIGHTûlNANCINGûRATEûnûITSûlRSTû -ANYûAREûCALLABLEûATûPAR ûBUTûSOMEûnû BONDûMARKETûLASTûWEEKûINûAûCONTINUEDûBIDû TOûPRICEûOFFûTHEûREFERENCEûRATEûBENCHMARK INCLUDINGû.AT7ESTSûTWOûLEGACYûSECURITIESû FORûlNANCIALûPAPERû )TûHASûBEENûNEARLYûTHREEûYEARSûSINCEû).'û TARGETEDûINûTHEû,-%ûnûHAVEûMAKE WHOLEû BANCO SANTANDERûPRICEDûAû53BNûTWO WASûINûTHEû53ûDOLLARûMARKETûWITHûAûTHREE CALLS ûMAKINGûTHEMûMOREûEXPENSIVEûFORû PARTûSENIORûNON PREFERREDûDEALûONû4UESDAYû TRANCHEûOFFERINGûORûAûmOATING RATEûNOTE û BANKSûTOûDEALûWITHû ANDû).'û'ROEPûFOLLOWEDûONû7EDNESDAYûWITHû ACCORDINGûTOû)&2ûDATA .AT7ESTûISûNOTûTHEûlRSTûBANKûTOûTENDERûINû AûRAREû53BNûTHREE PARTû53ûDOLLARû ).'ûWASûLASTûINûTHEûMARKETûINû*UNEûû THISûSPACE ûASû2ABOBANKûDIDûMAKE WHOLEûCALLû OFFERING WITHûAû53BNû.#ûGREENûBONDûTHATû TENDERSûLASTûYEARûANDû,LOYDSûASûWELL û)Nû3ANTANDERSûlRSTû53ûDOLLARûISSUANCEûOUTû PRICEDûATûBPûOVERû4REASURIESû4HATûSAMEû h)TSûBECOMEûAûFACTûOFûLIFE ûTHEûRULESûAREû OFûTHEûMAINû3PANISHûBANKûPARENTûCOMPANYû ûûISûNOWûTRADINGûATûAû' SPREADûOFû CLEAR ûTHEû02!ûWANTSûTOûCLEANûUPûYOURûCAPITALû THISûYEAR ûSPREADSûTIGHTENEDûWELLûTHROUGHû BP ûACCORDINGûTOûONEûBANKERûAWAY BASE ûTOûADDRESSûLEGACYûPROBLEMSûANDû PRICEûPROGRESSIONûBUTûSTILLûLEFTûSOMEû !TûINITIALûPRICEûTHOUGHTS ûTHEûNEWûNOTESû MINIMISEûWHATûISûLEFTûOUTSTANDINGûASûMUCHû CONCESSIONûFORûINVESTORSûINûAûWEEKûWHEREû53û STARTEDûWITHûSOMEûBPnBPûOFûNEW ISSUEû ASûPOSSIBLEûREGARDLESSûOFûTHEûCOST ûANDûTHOSEû DOLLARûBONDSûWEREûPRICINGûWITHûHIGHERû CONCESSIONûOVERûTHEûSECONDARYûCURVE û MAKE WHOLEûCALLûINSTRUMENTSûAREûAûCASEûINû CONCESSIONSûOVERALLû DEPENDINGûONûHOWûINVESTORSûVALUEûTHEû POINT vûAû$#-ûBANKERûSAID 4HEû53BNûlVE YEARûANDû53Mû GREENûPREMIUMûFORûOUTSTANDINGûNOTES )NûSOMEûCASES ûTHEREûAREûGOODûREASONSûFORû YEARûNOTESûLAUNCHEDûATû4REASURIESûPLUSû h)04SûAREûCONSISTENTûWITHûWHEREû3ANTANDERû BANKSûTOûKEEPûLEGACYûSECURITIESûOUTSTANDINGû BPûANDûBP ûRESPECTIVELY ûINûFROMû STARTEDûITSûlVE YEARûONû4UESDAYûANDûINSIDEûOFû 4HEûTREATMENTûOFûSO CALLEDûhDISCOSvû$ISCOUNTû INITIALûPRICEûTHOUGHTSûSETûINûTHEûAREAûOFû WHEREû.OMURAûSTARTEDûATûNORTHûOFûBP vû 0ERPETUALû&LOATINGû2ATEû3ECURITIES ûISSUEDûBYû BPûANDûBPû!TûTHOSEûLAUNCHûLEVELS û ACCORDINGûTOûTHEûBANKER AûNUMBERûOFû5+ûBANKSûINCLUDINGû.AT7EST û THEûlVE YEARûLANDEDûSOMEûBPûWIDEûOFûITSû Bank of America, Goldman Sachs, ING, Mizuho HASûLONGûBEENûUNDERûSCRUTINYû3OMEûDISCOSû OUTSTANDINGûSûTHATûWEREûTRADINGûATûAû and RBCûWEREûACTIVEûBOOKRUNNERSûONû AREûGRANDFATHEREDûASû4IERûûCAPITALûUNTILûû ' SPREADûOFûBP ûACCORDINGûTOûONEûBANKERû 7EDNESDAYSûTRADE ANDûWOULDûALSOûREPRESENTûCHEAPûPERPETUALû ALL FINANCIAL INSTITUTION BONDS IN EUROS ALL SUBORDINATED FINANCIAL INSTITUTION FUNDINGûFORûBANKSû BOOKRUNNERS: 1/1/2021 TO DATE BONDS (ALL CURRENCIES) .AT7ESTSûDISCOSûPAYûAûCOUPONûOFû53û DOLLARû,IBORûPLUSûBP ûFORûEXAMPLE Managing No of Total Share BOOKRUNNERS: 1/1/2021 TO DATE bank or group issues €(m) (%) (OWEVER ûWITHû,IBORSûDAYSûNUMBERED û Managing No of Total Share bank or group issues US$(m) (%) REFERENCESûTOûTHEûRATEûAREûANOTHERûFACTORû 1 Goldman Sachs 14 5,657.62 9.2 ISSUERSûMUSTûGRAPPLEûWITHûWHILEûMANAGINGû 2 SG 22 4,821.99 7.8 1 HSBC 12 4,505.34 15.0 LEGACYûSECURITIESû 3 UniCredit 22 4,363.88 7.1 2 Citigroup 15 3,310.20 11.0 4 Natixis 19 4,339.20 7.0 h,IBORûCANûCOMPLICATEûTHINGSûFURTHER vû 3 Bank of America 12 2,816.17 9.4 5 JP Morgan 19 4,053.67 6.6 SAIDûTHEûSOURCEû 4 JP Morgan 13 2,148.11 7.1 6 BNP Paribas 22 3,766.74 6.1 5 Barclays 10 1,969.05 6.5 PAYDAY 7 Credit Agricole 19 3,472.67 5.6 6 Credit Agricole 2 1,600.00 5.3 8 Deutsche Bank 18 2,622.57 4.3 4HEûTENDERûINCLUDESûSIXûSERIESûOFûNOTESûWITHû 7 Goldman Sachs 7 1,480.21 4.9 9 Barclays 16 2,362.79 3.8 COUPONSûRANGINGûFROMûûTOû û 8 Morgan Stanley 5 1,248.27 4.2 10 ING 15 1,989.25 3.2 ACCORDINGûTOûTHEûRELEASEû 9 UBS 7 1,140.92 3.8 Total 108 61,607.37 .AT7ESTûATTEMPTEDûTOûTENDERûFORûFOURûOFû 10 NatWest Markets 3 901.77 3.0 Including banks, insurance companies and finance companies. Excluding Total 39 30,068.91 THESEûSAMEûNOTESûBACKûINû3EPTEMBER ûBUTû equity-related and covered bonds. Excluding publicly owned institutions. WASûUNABLEûTOûRETIREûTHEMûCOMPLETELY Source: Refinitiv SDC code: N11 Source: Refinitiv SDC code: J3a

International Financing Review March 27 2021 33

5 IFR Bonds 2376 p21-58.indd 33 26/03/2021 20:23:12 NOMURA LANDS MULTI-TRANCHE DEAL JACKSON DELAYS BOND AFTER CLAIMS *ACKSONSûDEMERGERûFROMû0RUûNOTûBEû FROM FORMER EXECS COMPLETEDûONûORûPRIORûTOû*UNEûû NOMURA HOLDINGSûPRICEDû53BNûSENIORû *ACKSONSûMID 4RIPLEû"ûRATINGSûALLOWEDû UNSECUREDû3%# REGISTEREDûBONDSûINûTHREEû JACKSON FINANCIALûDELAYEDûTHEûPRICINGûOFûAû SPREADSûTOûTIGHTENûINSIDEûOFûLOWER RATEDûLIFEû TRANCHES ûITSûLARGESTûDEALûSOûFARûFROMûTHEû 53BNûBONDûOFFERINGûONû4HURSDAYûAFTERû INSURANCEûPEERSû"RIGHTHOUSEû&INANCIALû HOLDCOûLEVEL ûDESPITEûVOLATILITYûINûTHEû RECEIVINGûNOTIlCATIONûOFûCLAIMSûBYûRECENTLYû "AA""" """ ûANDû5NUMû"AA""""""n û 4REASURYûMARKETûONû4UESDAY DEPARTEDûFORMERûEXECUTIVES ûTHEûCOMPANYû WHICHûHAVEû YEARûNOTESûTRADINGûATûABOUTû !û53BNûlVE YEARûPRICEDûATûPAR ûTOû SAIDûINûAûSTATEMENT BPûANDûBP ûRESPECTIVELY YIELDû ûORû4REASURIESûPLUSûBPûAû 4HEûCONTENTûOFûTHEûCLAIMSûBEINGûMADEûBYû 3TILL ûATûLAUNCH ûTHEûSPREADûONûTHEûNEWû 53MûSEVEN YEARûPRICEDûATûPAR ûTOûYIELDû FORMERûEXECUTIVESûISûUNCLEARûATûTHISûPOINTû YEARûOFFEREDûBYû*ACKSONûREPRESENTEDûAûBPû ûORû4REASURIESûPLUSûBPûANDûAû 9ET ûANALYSTSûATû#REDIT3IGHTSûSUGGESTEDûTHEYû PICK UPûOVERûTHEûBROADERû4RIPLEû"ûlNANCIALû 53BNû YEARûPRICEDûATû ûORû MAYûHAVEûQUALIlEDûASûRISKSûWITHINûTHEûDEBTû SPACE û#REDIT3IGHTSûNOTED 4REASURIESûPLUSûBP PROSPECTUS ûPROMPTINGûTHEûDELAYûINûPRICING h7HILEûWEûDOûACKNOWLEDGEûTHATû*ACKSONû "ASEDûONûOUTSTANDINGûSECONDARYûLEVELS û 4HEûRETIREMENTûINVESTMENTûCOMPANY û .ATIONALûWILLûTRADEûWELLûWIDEûOFûITSûRATINGSû THEûISSUERûLOOKEDûTOûHAVEûPAIDûAûNEW ISSUEû RATEDû"AA"""""" ûISûLOOKINGûTOûRAISEûCASHû PEERûGROUPûnûINûOURûASSESSMENTûTHEûDISCOUNTû CONCESSIONûINûTHEûLOWûSINGLEûDIGITS AHEADûOFûAûPLANNEDûSPIN OFFûFROMûINSURERû ISûCERTAINLYûJUSTIlED vûTHEûREPORTûSTATEDû )NITIALûPRICEûTHOUGHTSûFORûTHEûTHREEû 0RUDENTIALû0,# ûWHICHû*ACKSONûSAIDûISûSTILLû h*ACKSONû.ATIONALûWILLûNATURALLYûBEûONEûOFû TRANCHESûWEREû4REASURIESûPLUSûTHEûBP û EXPECTEDûTOûGOûAHEADûINûTHEûSECONDûQUARTERû THEûMOSTûEQUITYûMARKETûANDûINTERESTûRATE BPûANDûBPûAREAS ûBEFOREûTHESEûWEREû OFûû4HEûNEWûBONDS ûTOGETHERûWITHûTHEû SENSITIVEûINSURERSûGIVENûITSûOPERATIONALû REVISEDûTIGHTERûBYûBP NETûPROCEEDSûFROMûEXPECTEDûBORROWINGSû LEVERAGEûTOWARDSûVARIABLEûANNUITYûPRODUCTSû )NVESTORSûWEREûSUPPORTIVEûOFûTHEû UNDERûAû53BNûTWO YEARûTERMûLOANûFACILITY û ANDûESPECIALLYûTHOSEûWITHûLIVINGûBENElTSû ISSUERSûSIZEûANDûPRICINGûGOALS ûWITHû WILLûBEûUSEDûTOûSTRENGTHENûTHEûCAPITALû ATTACHEDûTOûTHEMv TOTALûBOOKSûREACHINGû53BNûANDû POSITIONûOFûTHEûPRIMARYûOPERATINGûCOMPANY û Citigroup, JP Morgan and Morgan Stanley are THEûDEALûACHIEVINGûAûBROADûDISTRIBUTIONû *ACKSONû.ATIONALû,IFE LEADûBOOKRUNNERSûONûTHEûTRADE TOûBANKS ûFUNDS ûINSURERS ûCENTRALûBANKSû 4HEûINSURANCEûCOMPANYûLAUNCHED ûBUTûDIDû ANDûOFlCIALûINSTITUTIONSû!LTHOUGHûTHEREû NOTûPRICE ûAû53BNûTHREE PARTûOFFERINGûOFû WEREûSHARPûMOVESûINûTHEû4REASURYû THREE ûûANDû YEARûNOTESûTHATûTIGHTENEDû EUROS MARKET ûWITHûTHEû YEARûYIELDûEVENTUALLYû BYûSOMEûBPûTHROUGHûPRICEûPROGRESSIONûTOû ENDINGûBPûLOWER ûTHESEûCAMEûLATEûINûTHEû LANDûATûBP ûBPûANDûBPûOVERû BPER FOCUSES ON SME SUPPORT DAYûWHENûTHEûDEALûHADûALREADYûBUILTû 4REASURIESû)NITIALûPRICEûTHOUGHTSûWEREûSETûINû WITH SOCIAL DEBUT MOMENTUM THEûAREAûOFûBP ûBPûANDûBP û 4HEû4,!# ELIGIBLEû3%# REGISTEREDû RESPECTIVELY BPER BANCAûONû4HURSDAYûSOLDû)TALYSûlRSTû NOTESûHAVEûEXPECTEDûRATINGSûOFû"AA $ELAYINGûTHEûDEBTûRAISINGûFURTHERû SOCIALûBONDSûFROMûAûlNANCIALûINSTITUTION ûAû """ û-OODYS30 û4HISûWASûTHEûTHIRDû COMPLICATESûWHATûWASûALREADYûAûFRAUGHTû õMûSENIORûPREFERREDûISSUEûTHATûWILLûRAISEû DOLLARûISSUEûFROMû.OMURASûHOLDCO ûANDû SEPARATIONûPROCESSû0RUûINITIALLYûSIGNALLEDû lNANCINGûTOûSUPPORTû3-%SûTHROUGHûTHEû THEûlRSTûTOûINCLUDEûAûSEVEN YEARûTENOR û THATû*ACKSONûWOULDûBEûSEPARATEDûVIAûANû #OVID ûPANDEMIC ûANDûATTESTEDûTOûSTRONGû WHICHûCAMEûINûRESPONSEûTOûINVESTORû INITIALûPUBLICûOFFERINGûBUTûINû*ANUARYû DEMANDûFORûEVENûSUB INVESTMENT GRADEû ENQUIRIES ANNOUNCEDûPLANSûTOûCHANGEûCOURSEûANDû SOCIAL LABELLEDûINSTRUMENTSû )NVESTORSûFROMû.ORTHû!MERICAûBOUGHTû SEPARATEûITûVIAûAûSPIN OFF ûACCORDINGûTOûAû "0%2 ûAûRELATIVELYûRAREûISSUERûINûTHEûCAPITALû ûOFûTHEûlVE YEARûNOTES û!SIAû ûANDû REPORTûFROMû#REDIT3IGHTS MARKETS ûANNOUNCEDûITSûSIX YEARûNON CALLûlVEû %UROPEûû&ORûTHEûSEVEN YEARûTRANCHE û !ûSPIN OFFûALLOWSû*ACKSONûTOûAVOIDûPAYINGûAû deal on Wednesday amid a pause in FIG .ORTHû!MERICAûTOOKû û!SIAû ûANDû PRE SEPARATIONûDIVIDENDûTOû0RUû(OWEVER ûITû SUPPLY ûWITHûCAUTIONûPREVAILINGûACROSSûTHEû %UROPEûû.ORTHû!MERICAûWASûALLOCATEDû DOESûMEANû*ACKSONûHASûTOûRAISEûMOREûDEBTûTOû MARKETû ûOFûTHEû YEAR û!SIAû ûANDû%UROPEû STRENGTHENûITSûRISK BASEDûCAPITALûRATIOS û !ûBANKERûATûONEûOFûTHEûLEADSûSAIDûTHEREûHADû ACCORDINGûTOûTHEûREPORT BEENûMUCHûDEBATEûAROUNDûTHEûDEALSûTIMING û Nomura and CitigroupûWEREûACTIVEû 4HEûNEWûNOTESûCONTAINûAûSPECIALû GIVENûTHEûLACKûOFûEUROûSUPPLYûSINCEûTHEû BOOKRUNNERS MANDATORYûREDEMPTIONûCLAUSEûSHOULDû PREVIOUSûWEEK ûWHENûAûVOLATILEûBACKDROPû ANDûAûCROWDEDûPRIMARYûMARKETûSAWûNEWû ALL GLOBAL AND EUROMARKET YEN BONDS ALL INTERNATIONAL YEN BONDS ISSUESûGETûMIXEDûRECEPTIONSû4HEYûCONCLUDEDû BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE THATûTHEûTIMEûWASûRIGHTûBECAUSEûTHEûDEALû Managing No of Total Share Managing No of Total Share TICKEDûAûNUMBERûOFûIMPORTANTûBOXES ûHEûSAIDû bank or group issues ¥(m) (%) bank or group issues ¥(m) (%) h4HEûBIDûFORû)TALYûCONTINUESûTOûBEûVERYû 1 Sumitomo Mitsui 4 37,791.67 28.6 1 Sumitomo Mitsui 7 69,091.67 41.0 STRONGûAFTERûTHEûAPPOINTMENTûOFû;PRIMEû 2 Daiwa Securities 2 15,625.00 11.8 2 Daiwa Securities 3 20,625.00 12.2 MINISTERû-ARIO=û$RAGHIûANDûTHEREûCONTINUESû 3 Mizuho 2 15,625.00 11.8 3 Mizuho 2 15,625.00 9.3 TOûBEûAûWELL PUBLICISEDûBIDûFORû%3' ûWHILEûTHEû 4 Nomura 2 15,625.00 11.8 4 Nomura 2 15,625.00 9.3 SENIORûPREFERREDûFORMATûPLAYSûINTOûTHEûHANDSû 5 NatWest Markets 1 10,000.00 7.6 5 NatWest Markets 1 10,000.00 5.9 OFûBANKûTREASURYûINVESTORSûTHATûCANûBUYûTHIS û 6 Bank of America 1 10,000.00 7.6 6 Bank of America 1 10,000.00 5.9 ANDûITûISûSEENûASûAûRELATIVELYûDEFENSIVEû 7 SG 1 10,000.00 7.6 7 SG 1 10,000.00 5.9 FORMAT vûHEûSAIDû 8 JP Morgan 1 7,166.67 5.4 8 JP Morgan 1 7,166.67 4.3 h4HISûISûALSOûTHEûlRSTûTIMEû"0%2ûHASûISSUEDû 9 Mitsubishi UFJ MS 1 7,166.67 5.4 9 Mitsubishi UFJ MS 1 7,166.67 4.3 AûCALLABLEûSENIORûTRANSACTIONû)TûHASûDONEûSOû 10 DBS Group 1 3,300.00 2.5 10 DBS Group 1 3,300.00 2.0 FORûEFlCIENCYûPURPOSES ûBUTûHAVINGûTHATûCALLû Total 7 132,300.00 Total 11 168,600.00 FEATUREûNOWûALSOûAPPEALSûTOûINVESTORSû Excluding equity-related debt. Including preferreds. Including all Euro, foreign and global issues. Excluding equity-related BECAUSEûITûOFFERSûAûBITûMOREûSPREADû3OûTHEREû debt. Source: Refinitiv SDC code: K10 Source: Refinitiv SDC code: K12 WASûAûLOTûOFûSTRONGûFEATURESûTHATûGAVEûUSû

34 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 34 26/03/2021 20:23:12 BONDS FIG

CONlDENCEûTHISûWASûGOINGûTOûBEûRECEIVEDû DEVELOPINGûGREENûANDûSUSTAINABLEûBONDû h9OUûALSOûHAVEû!LLIANZûANDûOTHERû WELLûBYûINVESTORS ûANDûLUCKILYûTHEûMARKETû FRAMEWORKS 'ERMANICû;INSURERS=ûWRAPPEDûAROUNDûTHEû STAYEDûQUITEûSTABLEv h7EREûAWAREûTHATûTHERESûAûHOSTûOFû S ûSOûTHISûISûSTARTINGûAROUNDûBPûBACKû ,EADSûCitigroup, Credit Agricole, Goldman INSURERSûLOOKINGûATûSETTINGûUPûFRAMEWORKSû OFûTHEMûANDûAROUNDûBPûBACKûOFû#.0ûASûAû Sachs, Mediobanca, Natixis and NatWest Markets THISûYEAR ûSOûTRADITIONALûGREENûANDûSOCIALû FREQUENTûNAME vûSAIDûAûBANKERûAWAYûFROMû BEGANûMARKETINGûTHEûNO GROWûDEALûWITHû BONDûISSUANCEûFROMûTHEûINSURANCEûSECTORûISû THEûLEADS PRICEûTHOUGHTSûOFûMID SWAPSûPLUSûBPû going to be a big theme and trend,” said a “Three hundred million euros is generally AREAû4HEûSPREADûWASûULTIMATELYûlXEDûATû $#-ûBANKERûh4HERESûGOINGûTOûBEûMOREûTOû MOREûINTERESTINGûASûAûSUB BENCHMARKûSIZEû BP ûWITHûBOOKSûSURPASSINGûõBNû FOLLOWv THANûõMûORûõM ûSOûTHATûSHOULDûALSOû h)TSûAûGREATûRESULTûFORûTHEM vûSAIDûAû &OLLOWINGûTWOûDAYSûOFûINVESTORûCALLS ûTHEû GETûAûFEWûMOREûINVESTORSûASûTHEûDEALûWILLûGOû SYNDICATEûBANKERûAWAYûFROMûTHEûLEADS õMûNO GROWû3EPTEMBERûûNON CALLû INTOûSOMEûINDICESv 4HEûDEALûISûEXPECTEDûTOûBEûRATEDû"A""û ûTRANSACTIONûWASûMARKETEDûWITHûINITIALû -OODYS&ITCH PRICEûTHOUGHTSûOFûTHEûMID SWAPSûPLUSû ‘PRICED TO GO’ h$ESPITEûTHEûFACTûTHISûISûSUB INVESTMENT BPûAREAûONû7EDNESDAYûMORNINGû %LSEWHEREûONû7EDNESDAY û&RENCHûASSETû GRADE ûTHEûSOCIALûANGLEûHELPEDûBROADENûTHEû ,EADSûBNP Paribas, Danske Bank and JP MANAGERû4IKEHAUûWASûALSOûINûTHEûMARKETû OUTREACH ûANDûSOMEûOFûTHOSEûDEDICATEDû Morgan THENûREVISEDûGUIDANCEûTOûBPû WITHûITSûlRSTûSUSTAINABLEûBOND ûAûõMû INVESTORSûFOCUSEDûONûTHEûSOCIALûCOMPONENTû AREAû nBP ûWITHûBOOKSûABOVEûõBN û EIGHT YEARûSENIORûUNSECUREDû STAYEDûWITHûUSûDURINGûTHEûPROCESS vûSAIDûTHEû BEFOREûMOVINGûEVENûFURTHERûTOûlXûTHEû ,EADSûCredit Agricole, Goldman Sachs and LEADûBANKER SPREADûATûBP Societe GeneraleûOPENEDûBOOKSûWITHû)04SûOFû h3OMEûWEREûCONSTRAINEDûBYûTHEûRATINGûBUTû "ANKERSûSAIDûSUCHûAûMOVEûWOULDûHAVEû MID SWAPSûPLUSûBPûAREAû OVERALLûYOUûCOULDûARGUEûTHEREûWASûAûBENElTû IRKEDûINVESTORS ûANDûTHEûBOOKûSUBSEQUENTLYû In a post-marketing update on Tuesday, OFûAûFEWûBASISûPOINTSûûûû)ûTHINKûTHATûWASûTHEû DROPPEDûTOûõM PLUS 4IKEHAUûSAIDûTHEûBALANCEûOFûINVESTORû DIFFERENCEûBETWEENûPRINTINGûATûBPûANDû h;)FûYOUûHAVE=ûõMûOFûBONDSûANDûõBNû FEEDBACKûPOINTEDûTOûFAIRûVALUEûOFûBPn BPûTODAYv ORDERS ûTHEûWAYûFORWARDûISûEITHERûYOUûGIVEû BPûFORûTHEûEIGHT YEARûDEALû POORûALLOCATIONSûORûYOUûTESTûWHICHûOFûTHESEû Tikehau last tapped the market in REFERENCE POINT INVESTORSûAREûREALLYûKEENûONûTHISûPARTICULARû /CTOBERû ûSELLINGûAûûõMû h4HISûSETSûANûIMPORTANTûREFERENCEûPOINTûFORû ISSUERûANDûFORMAT vûSAIDûAûLEADûBANKER /CTOBERûûSENIORûUNSECUREDûNOWûBIDûATû NON )'ûISSUERSû;CONSIDERINGûSOCIALûBONDS=ûANDû h)TSûQUITEûAûHEALTHYûTIGHTENING ûFORûTHISû BP WONDERINGûIFûTHEREûISûAûMARKETûFORûTHEMû PRODUCTûYOUûWOULDûMAYBEûHOPEûFORû h&ORûTWOûANDûAûHALFûYEARSû;OFûCURVEû 4HISûABSOLUTELYûPROVESûITûISûTHEREv SOMETHINGûINûTHEûCONTEXTûOFûBPû(ERE û EXTENSION=ûTHEYûWEREûPAYINGûBPûATû)04S vû -OSTûBANKERSûSAWûFAIRûVALUEûFORûTHEûDEALûATû BPûWASûOBVIOUSLYûMOREûTHANûSOMEû SAIDûAûBANKERûAWAYûFROMûTHEûLEADSûh)TûFEELSû AROUNDûBP ûEXTRAPOLATINGûFROMû"0%2Sû INVESTORSûWOULDûHAVEûLIKED ûANDûYOUûSEEû LIKEûITSûPRICEDûTOûGOv õMûOFûû*ULYûûSENIORûPREFERREDû THATûINûTHEûDROPûOFûTHEûlNALûITERATIONSûOFû "ANKERSûNOTEDûTHEûULTIMATEûlNALûSPREADûOFû NOTES ûWHICHûWEREûBIDûATûBPûONû4HURSDAYû THEûORDERûBOOKv BPûANDûCOUPONûOFûûAREû 3OMEûARGUEDûFAIRûVALUEûWASûSLIGHTLYûTIGHTERû 4HEûDEALûISûEXPECTEDûTOûBEûRATEDû"""ûBYû NEVERTHELESSûTHEûLOWESTû4IKEHAUûHASûEVERû ATûAROUNDûBPû 30û ACHIEVEDûINûITSûVISITSûTOûTHEûWHOLESALEû h)TSûTHEûKINDûOFûISSUERûTHATûWOULDûALWAYSû 3TOREBRANDû,IVSFORSIKRINGûHASûONEûEUROû FUNDINGûMARKETû HAVEûTOûPAYûAûDECENTûNEWûISSUEûPREMIUMû BONDûOUTSTANDING ûAûõMûû!PRILû 0ROCEEDSûOFûTHEûDEALûWILLûBEûALLOCATEDûTOû EVENûINûTHEûHOTTESTûOFûMARKETS vûTHEûBANKERû ûNON CALLûû4IERû ûBIDûATûBPû INVESTMENTSûINûAûRANGEûOFûGREENûANDûSOCIALû AWAYûSAIDû BEFOREûTHEûNEWûISSUEûWASûANNOUNCEDû ACTIVITIES ûDElNEDûINûITSûRECENTLYûESTABLISHEDû 4HEûDEALûnûISSUEDûUNDERû"0%2SûGREEN û 4HEûISSUERûHASûLAUNCHEDûAûTENDERûOFFERû SUSTAINABLEûBONDûFRAMEWORK ûANDûELIGIBLEû SOCIALûANDûSUSTAINABILITYûBONDûFRAMEWORKûnû FORûUPûTOûõMûOFûTHEûûNOTES ûINûORDERû %3'ûFUNDSû WILLûRAISEûlNANCINGûFORûSOCIALûPROJECTSû TOûMANAGEûITSûCAPITALûBASEûANDûPROVIDEû Tikehau said it intends to be a regular INCLUDINGû#OVID ûRELATEDûLENDINGûTOû3-%S LIQUIDITYûTOûINVESTORS ISSUERûOFûSUSTAINABLEûBONDSû !ûSECONDûLEADûBANKERûSAIDûMUCHûOFûTHEû !ûLACKûOFûCLEARûCOMPARABLESûMADEû h4HEûSUCCESSûOFûTHISûlRSTûEVERûSUSTAINABLEû LENDINGûWILLûGOûTOûREGIONSûOFû)TALYûMOSTû CALCULATINGûFAIRûVALUEûFORûTHEûNEWûISSUEû BONDûISûAûNEWûSTEPûFORWARDûTHATûWILLûALLOWû IMPACTEDûBYûTHEûPANDEMIC DIFlCULTû THEûGROUPûTOûREmECTûITSûVOLUNTARYû%3'ûPOLICYû 3OMEûûOFûTHEûRELEVANTûPORTFOLIOûOFû &ORûCOMPARABLES ûBANKERSûCITEDû3AMPOSû INTOûITSûlNANCINGûSTRUCTURE vûSAIDû-ATHIEUû ELIGIBLEûASSETSûRELATESûTOûCOMPANIESûWITHûLESSû õBNû3EPTEMBERûûNON CALLûû4IERû #HABRAN ûCO FOUNDERûOFû4IKEHAU ûINûAûPRESSû THANûûEMPLOYEES S ûBIDûATûBP ûANDûSIMILARLYûDATEDûBONDSû RELEASE h4HESEûCOMPANIESûAREûALMOSTûTHEû FROMûMOREûREGULARûISSUERSûSUCHûASû&RANCESû h7ITHûTHISûSUSTAINABLEûBOND ûWEûWANTûTOû BACKBONEûOFûAûLOTûOFûTHESEûREGIONS vûSAIDûTHEû #.0û!SSURANCES ûALSOûQUOTEDûINûTHEûBPû FOCUSûOURûINVESTMENTSûONûSUSTAINABLEû SECONDûLEADûBANKERû h)ûTHINKûPEOPLEûGENERALLYûLIKEûTHEûCREDITû COMPANIESûANDûPROJECTS ûBUTûALSOûONûFUNDSû ITSELFûBUTûHADûDIFlCULTYûPOSITIONINGûITû THATûCANûHAVEûAûSIGNIlCANTûSOCIALûORû STOREBRAND, TIKEHAU SEAL VERSUSûTHESEûOTHERûNAMES vûSAIDûANOTHERû ENVIRONMENTALûIMPACTv ESG DEBUTS LEAD h)TûWASûAûGOODûLONGû)O)SûPROCESSûFORûSURE û ALL SAMURAI BONDS .ORWAYSûSTOREBRAND LIVSFORSIKRINGûBECAMEû WITHûGOODûINTERACTIONûWITHûINVESTORS ûSOûITû BOOKRUNNERS: 1/1/2021 TO DATE THEûLATESTûINSURERûTOûJOINûTHEû%3'ûBONDû WASûJUSTûABOUTûGETTINGûITûOUTûTHEREûANDû Managing No of Total Share market on Wednesday, issuing an inaugural OFFERINGûAûSPREADûTHATûWOULDûENTICEû bank or group issues ¥(m) (%) õMûGREENû4IERû ûWHILEûALTERNATIVEûASSETû INVESTORSûANDûFALLûWITHINûTHEû)O)Sû)TSûLESSû 1 Sumitomo Mitsui 3 31,300.00 86.2 manager TIKEHAU CAPITAL ALSOûSECUREDûITSûlRSTû ABOUTûTHEûPREMIUMv 2 Daiwa Securities 1 5,000.00 13.8 SUSTAINABLEûBONDû "ANKERSûPUTûTHEûINITIALûSTRONGûDEMANDûFORû Total 4 36,300.00

4HEûDEALûCOMESûASûPROSPECTIVEûISSUERSû THEûDEALûDOWNûTOûTHEûATTRACTIVEûPICK UPû Excluding equity-related debt. ACROSSûTHEûINSURANCEûSECTORûWORKûONû OFFEREDûATû)04S Source: Refinitiv SDC code: K11

International Financing Review March 27 2021 35

5 IFR Bonds 2376 p21-58.indd 35 26/03/2021 20:23:12 ARVAL SEALS ASSURED BOND DEBUT h4HEûLEVELSûLOOKEDûOKAYûTOûME ûBUTû!POLLOû STERLING absorbing them and the duration may be a ARVAL SERVICE LEASE made an assured start to KILLERûCOMBO vûSAIDûAûBANKERûAWAYûFROMûTHEû ITSûDEBUTûCAPITALûMARKETûISSUANCEûONû STERLING RETURN PROVES TRICKY DEALû 4UESDAY ûWITHûAûõMûLONGûTHREE YEARû FOR ATHENE "ANKERSûONûTHEûDEALûDISPUTEDûTHATûTHEû SENIORûUNSECUREDûOFFERINGûTHATûCAMEûCLOSEûTOû MERGERûHADûANûIMPACTûONûDEMANDû4HEûDEALû PRICINGûWITHûAûNEGATIVEûYIELDû ATHENE GLOBAL FUNDING STRUGGLEDûFORû ISûEXPECTEDûTOûBEûRATEDû!!û30&ITCH 4HEûNEWûISSUEûWASû!RVALSûlRSTûSENIORû momentum on its return to the sterling UNSECUREDûISSUEû)TûCOMESûASûTHEûVEHICLEû MARKETûONû7EDNESDAY ûWITHûITSûaMû LEASINGûCOMPANY ûWHICHûISûFULLYûOWNEDûBYû .OVEMBERûûFUNDINGûAGREEMENT BACKEDû SWISS FRANCS ".0û0ARIBASû'ROUP ûSEEKSûTOûDIVERSIFYûITSû NOTEûONLYûMARGINALLYûOVERSUBSCRIBED SOURCESûOFûFUNDINGû!RVALûISûCURRENTLYûALMOSTû 4HEûDEALûISû!THENESûSECONDûSTERLINGû JULIUS BAER ADDS OPCO SENIOR TO ENTIRELYûFUNDEDûBYû".0û0ARIBAS ûATûû ISSUANCE ûFOLLOWINGûAûaMûSEVEN YEARû&! ITS MIX THROUGHûBULLETûORûAMORTISINGûLOANS BACKEDûNOTEûDEBUTûLASTû.OVEMBERû/NûTHATû &OLLOWINGûINVESTORûCALLSûONû-ONDAY ûLEADSû OCCASIONûTHEû53ûINSURERûWASûWELCOMEDû BANK JULIUS BAER & CO brought its debut senior BNP Paribas, BBVA, HSBC, Standard Chartered, WARMLYûBYûINVESTORS ûTAKINGûMOREûTHANû BONDûATûTHEûOPERATINGûCOMPANYûLEVELûONû Santander and UniCredit OPENEDûBOOKSûFORûTHEû aMûOFûORDERSû"UTûITSûSECONDûDEALûPROVEDû Thursday, adding to the one senior holding 3EPTEMBERûûTRANSACTIONûWITHûINITIALû AûHARDERûSELLû COMPANYûDEALûITûHASûOUTûINûTHEûMARKET PRICEûTHOUGHTSûOFûMID SWAPSûPLUSûBPûAREAû ,EADSûBarclays, Credit Suisse, Deutsche and (AVINGûMANDATEDûZKB as sole bookrunner ONû4UESDAYûMORNING RBC MARKETEDûTHEûTRANSACTIONûWITHûINITIALû and Bank Julius Baer ASûJOINTûLEADûMANAGERûONû 'UIDANCEûWASûLATERûSETûATûBPûAREAûFORûANû PRICEûTHOUGHTSûOFû'ILTSûPLUSûBPnBPûFORû 4UESDAY ûINITIALûPRICEûTHOUGHTSûWEREû EXPECTEDûSIZEûOFûõM ûBEFOREûTHEûDEALûWASû AûBENCHMARKûSIZE ANNOUNCEDûONû4HURSDAYûMORNINGûATûMID LAUNCHEDûATûBPûANDûTHEûSIZEûUPPEDûTOû 4HEûSPREADûWASûLATERûSETûATûBPûANDûTHEû SWAPSûPLUSûBPnBPû"OOKSûTHENûOPENEDû õMû4HEûBOOKûPEAKEDûABOVEûõBN û SIZEûATûaMûWITHûBOOKSûREPORTEDûCLOSINGûATû FORûAûMINIMUMû3&RMû53M ûATû BEFOREûCLOSINGûATûõBNû aM BPnBP ûWITHûTERMSûBEINGûSWIFTLYûSETûATû "ANKERSûSAIDûTHEûDEMANDûWASûIMPRESSIVEû !ûBANKERûCLOSEûTOûTHEûDEALûSAIDûITSûSIZEûWASû BPûFORû3&RM GIVENûTHEûVOLUMEûOFûCORPORATEûSUPPLYûINûTHEû INûLINEûWITHûTHEIRûTARGET ûBUTûTHEYûWEREû 4HATûWASûEQUIVALENTûTOû3ARONûPLUSûBP û market on Tuesday and also taking into UNABLEûTOûREACHûTHEûMID SûSPREADûTHEYû ORû3WISSûGOVERNMENTSûPLUSûBP ûWITHûAû ACCOUNTûTHATûTHEûDEALûWASûmIRTINGûWITHû HADûINûMINDûFORûTHEûARBITRAGEûTRADEû ûYIELD NEGATIVEûYIELDSû4HREE YEARûEUROûSWAPSûWEREû h4HEYûENDEDûUPûPAYINGûAûHANDFULûOFûBASISû 3OMEûûACCOUNTSûTOOKûPARTûINûTHEûDEAL ûALLû AROUNDûMINUSûBP ûWHILEûFOUR YEARûSWAPSû POINTSûMOREûTHANû53ûDOLLARS ûSOûITûISûAûLITTLEû OFûTHEMû3WISS ûWITHûASSETûMANAGERSûTAKINGû WEREûATûMINUSûBPûONû4UESDAYûAFTERNOON BITûMOREûEXPENSIVEûTHANûTHEIRûHOMEû ûINSURERSû ûBANKSûûANDû 4HEûBONDSûWEREûULTIMATELYûPRICEDûWITHûAû MARKET vûHEûSAIDûh"UTûITûISûPARTûOFûTHEIRû PENSIONûFUNDSû COUPONûOFûûTOûYIELDûû DIVERSIlCATIONûSTRATEGYûFORûTHEMûTOûCONTINUEû "*"ûISûRATEDû!ûSTABLE ûBYû-OODYS !ûBANKERûATûONEûOFû!RVALSûLEADSûSAIDûTHEû TOûPRINTûINûEUROûANDûSTERLINGûAWAYûFROMû DEALûHADûHITûTHEûISSUERSûPRICEûTARGET DOLLARSv h4HEYûGOTûTHEûBESTûOFûBOTHûWORLDS ûGETTINGû 4HEûMUTEDûDEMANDûFORûTHEûDEALûWASûNOTûAû THEûPRICEûTHEYûABSOLUTELYûWANTEDûWHILEûALSOû QUESTIONûOFûPRICE ûBANKERSûSAIDû TAKINGûTHEûRIGHTûSIZE vûHEûSAIDû !THENESûûaMû.OVEMBERûSû HIGH-YIELD h)TûFEELSûLIKEûTHEREûISûAûBITûOFûAûmOORûATûZEROû WEREûBIDûATûBPûOVERû'ILTSûATû7EDNESDAYSû ;YIELDS=û7EûSTARTEDûATûBPûANDûACCOUNTSû OPEN ûACCORDINGûTOû4RADEWEBûlGURESû STRAIGHTAWAYûSTARTûLOOKINGûATûWHEREûITSû "ANKERSûTHEREFOREûSAWûFAIRûVALUEûINûTHEûMIDû UNITED STATES GOINGûTOûLAND ûWHEREûTHEûmOORûISû)TSûFAIRûTOû TOûHIGHûS ûIMPLYINGûTHEûISSUERûPAIDûAû SAYûTHEREûISûSENSITIVITYûAROUNDûZEROûINûTHEû CONCESSIONûASûHIGHûASûBP JUNK ENERGY NAMES SEIZE FUNDING MARKETv "ANKERSûSAIDûTHEûINITIALûPRICEûTHOUGHTSû OPPORTUNITY "ANKERSûNOTEDûTHEûDEALûWASûALSOûPRICEDû LOOKEDûFAIRûANDûNOTEDûTHATû(3"#ûANDû INSIDEûTHEûSECONDARIESûOFû!,$ ûTHEûVEHICLEû 'OLDMANû3ACHSûALSOûPAIDûDOUBLE DIGITû *UNK RATEDû53ûENERGYûCOMPANIESûAREû LEASINGûSUBSIDIARYûOFû3OCIETEû'ENERALE CONCESSIONSûINûTHEûSTERLINGûMARKETûTHEû PRINTINGûNEWûBONDSûATûAûRECORDûPACEûTOûBEGINû !,$ûSOLDûAûõMûTHREE YEARûSENIORû PREVIOUSûWEEK ûWITHûHIGHERûCOMMODITYûPRICESûPUTTINGû UNSECUREDûISSUE ûRATEDû"""""" ûATûBPû h)TSûCONSISTENTûWITHûTHEûTHEMEûOFû;ISSUERS=û THEûSECTORûONûAûlRMERûlNANCIALûFOOTINGûANDû OVERûMID SWAPSûONû&EBRUARYûû4HEûDEALû PAYINGûHIGHERû.)0S vûSAIDûTHEûlRSTûBANKERû ENCOURAGINGûINVESTORSûTOûCHASEûYIELDûINûAû WASûBIDûATûBPûONû4UESDAY ûACCORDINGûTOû 3OMEûBANKERSûQUESTIONEDûTHEûISSUERSû SECTORûTHATûHASûOUTPERFORMEDûTHEûMARKETûSOû 4RADEWEBûlGURES APPROACHûINûOFFERINGûAûSECONDûDEALûWITHûAû FARûTHISûYEAR "ANKERSûSUGGESTEDû!RVALûCOULDûTRADEû SEVEN YEARûTENORûJUSTûMONTHSûAFTERûITSûLASTû 2ElNITIVûDATAûSHOWû53ûHIGH YIELDûRATEDû TIGHTERûTHANû!,$ûBECAUSEûOFûTHEûISSUERSû VISITûTOûTHEûMARKETû ENERGYûANDûPOWERûCOMPANIESûWEREûONûTRACKû DIFFERENTûSHAREHOLDINGûSTRUCTURESû!,$ûISû /BSERVERSûALSOûQUESTIONEDûIFûUNEASEûFROMû TOûRAISEûOVERû53BNûINûTHEûYEAR TO DATEû ûOWNEDûBYû3' ûWHILEû!RVALûISûû SOMEûINVESTORSûAROUNDû!THENESûRECENTLYû through to last Thursday, the busiest start to OWNEDûBYû".0û0ARIBAS ANNOUNCEDûMERGERûWITHû!POLLOû'LOBALû AûYEARûFROMûTHATûSECTORûFORûDATAûGOINGûBACKû !RVALûISûALSOûINûTHEûPROCESSûOFûlNALISINGûAû -ANAGEMENTûMAYûHAVEûCONTRIBUTEDû TOû THREE YEARû2#&ûFORûõBNûTHATûWILLû 4HEûDEALûISû!THENESûlRSTûOUTSIDEûITSûHOMEû OASIS PETROLEUM, SOLARIS MIDSTREAM and TEINE SUPPLEMENTûITSûEXISTINGûõBNûLIQUIDITYû MARKETûSINCEûITûWASûANNOUNCEDûEARLIERûTHISû ENERGYûPRICEDûDEALSûTOTALLINGû53BNû BACKSTOPûPROVIDEDûBYû".0û0ARIBAS û MONTHûTHATûTHEûINSURERûWILLûMERGEûWITHû THROUGHûTOû4HURSDAYûANDûWEREûEXPECTEDûTOû ACCORDINGûTOûITSûINVESTORûPRESENTATION !POLLOûINûANûALL STOCKûTRANSACTIONû!POLLO û BEûFOLLOWEDûBYûAû53BNûDEALûFROMûENERGYû 4HEûDEALûISûEXPECTEDûTOûBEûRATEDû!n!û30 WHICHûCREATEDû!THENEûINû ûALREADYûHOLDSû INFRASTRUCTUREûCOMPANYûNEW FORTRESS ENERGY &ITCH û AûûSTAKEûINûTHEûINSURER ONû&RIDAY

36 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 36 26/03/2021 20:23:12 BONDS HIGH-YIELD

3OURCESûSAIDûTHATûTHEûSECTORSûABILITYûTOû 4HEûSEVEN YEARûNON CALLûTHREEûNOTE ûRATEDû 4HEûCRUISEûLINESûHAVEûBEENûACTIVELYûISSUINGû RAISEûCASHûINûTHISûPERIODûnûHAVINGûBEENûSHUTû "" ûPRICEDûATûûONû7EDNESDAYûLEDûBYû DEBTûATûTHEûUNSECUREDûLEVELûANDûALSOûRAISINGû OUTûOFûCAPITALûMARKETSûFORûMUCHûOFûLASTûYEARûnû Bank of America ûWITHûTHEûCOUPONûLANDINGûATû EQUITYûTOûFUELûTHEIRûCASHûNEEDSûWHILEûCRUISESû WASûDOWNûTOûINVESTORSûCHASINGûYIELD ûASûWELLû THEûTIGHTûENDûOFûPRICEûTALKûOFûnû4HEû AREûSUSPENDED ASûANûIMPROVEMENTûINûTHEûCREDITû DEALûWASûUPSIZEDûFROMûANûINITIALû53BN 2OYALû#ARIBBEANûENDEDûûWITHû FUNDAMENTALSûINûTHEûSECTORûBECAUSEûOFûAûRALLYû )NVESTORSûSPEAKINGûTOû)&2ûSAWûTHEûOFFERINGû 53BNûOFûLIQUIDITYû)TûADDEDûANOTHERû INûOILûPRICES BOTHûASûOPPORTUNISTIC ûINûLIGHTûOFûCONTINUEDû 53BNûOFûCASHûTOûITSûBALANCEûSHEETûONû h)TSûREALLYûAûCOMBINATIONûOFûBOTH vûSAIDûAû LOWûBORROWINGûCOSTS ûASûWELLûASûREmECTINGû -ARCHûûVIAûAûPRE OPENûBLOCKûTRADEû4HEû HIGH YIELDûENERGYûBANKERûh4HEûCOMMODITYû CONCERNSûTHATûTHEûINDUSTRYûMAYûMISSûTHEû COMPANYûALSOûRAISEDû53MûBYûSELLINGûITSû PRICEûRALLYûHASûREALLYûHELPEDv ûSUMMERûSAILINGûSEASONûANDûEXTENDûTHEû !ZAMARAûBRAND ûINCLUDINGûITSûTHREE SHIPûmEETû 4HEû7ESTû4EXASû)NTERMEDIATEûOILûPRICEûWASû PERIODûWHENûCRUISEûLINESûAREûUNABLEûTOû ANDûINTELLECTUALûPROPERTY ûTOûPRIVATEûEQUITYû TRADINGûAROUNDû53ûAûBARRELûONû4HURSDAY û GENERATEûCASHû2OYALû#ARIBBEANûANNOUNCEDû lRMû3YCAMOREû0ARTNERSûINû-ARCH DOWNûFROMûTHEû53ûSEENûEARLIERûINûTHEû ONû-ARCHûûTHEûEXTENSIONûOFûDELAYSûONûMOSTû WEEK ûBUTûSTILLûAûSTRONGûRECOVERYûTOûLEVELSûLASTû OFûITSûCRUISESûTHROUGHûTOûTHEûENDûOFû-AYûnû BLACKSTONE PUSHES NEW SPAC SEENûINû ûHAVINGûBRIEmYûTURNEDûNEGATIVEû AND ûINûSOMEûCASES û*UNE LOOPHOLES INTO BOND DOCS DURINGûTHEûSLUMPûINûENERGYûPRICESûINû!PRILû 4HEûCOMPANYûWILLûUSEûTHEûPROCEEDSûTOû LASTûYEARû(ENRYû(UBû.ATURALû'ASû3POTû0RICES û REPAYûBONDSûMATURINGûINûûANDûûANDû #APITALûMARKETSûLAWYERSûHAVEûINTRODUCEDû MEANWHILE ûCLIMBEDûTOûANûAVERAGEûOFû THEûRESTûFORûGENERALûCORPORATEûPURPOSES NEWûPROVISIONSûTOûHIGH YIELDûBONDû 53ûPERûMILLIONû"TUûINû&EBRUARY ûUPû 7HILEûTHEûCRUISEûLINESûAREûTAKINGûONûLARGEû INDENTURESûTOûACCOUNTûFORûTHEûRISEûOFûSPECIALû FROMû53ûLASTû!PRIL AMOUNTSûOFûDEBTûTOûFUNDûOPERATIONS ûTHEYûAREû PURPOSEûACQUISITIONûCOMPANIES ûANDûINûSOMEû (IGHERûCOMMODITYûPRICESûASûWELLûASûSTRONGû ALSOûMOVINGûTOûPUSHûOUTûDEBTûMATURITIESûINTOû CASESûHAVEûGONEûTOOûFARûINûMAKINGûTERMSû MARKETûACCESSûISûDRIVINGûIMPROVEDûOUTLOOKSû AûTIMEFRAMEûWHEREûMOREûROBUSTûCRUISINGû MOREûFAVOURABLEûTOûSPONSORS ûACCORDINGûTOûAû FORûCREDITûQUALITYû&ITCHû2ATINGSûSAIDûLASTû ACTIVITYûISûEXPECTED ûBOOSTINGûRElNANCINGû REPORTûFROMûRESEARCHûlRMû#OVENANTû2EVIEW MONTHûITûEXPECTEDûTHEûDEFAULTûRATEûFORûHIGH PROSPECTSûINûTHEûCOMINGûYEARS (IGH YIELDûBONDûINDENTURESûTYPICALLYûPROVIDEû YIELDûENERGYûBONDSûTOûDROPûTOûûINû û h7ITHûSOMEûOFûTHEûCRUISEûLINES û;PREVIOUSLY=û RULESûONûHOWûNEWûEQUITYûOFFERINGSûCANûBEûUSEDû DOWNûFROMûûATûTHEûENDûOFû WEûMIGHTûNOTûHAVEûBEENûCOMFORTABLEûBEFOREû TOûREPAYûDEBT ûPAYûDIVIDENDS ûORûBOOSTûAûBUILD UPû h,ASTûYEAR ûHIGH YIELDûENERGYûCOMPANIESû BECAUSEûTHEYûWEREûCUSPY ûORûBECAUSEûYOUû BASKETûFORûOTHERûRESTRICTEDûPAYMENTS COULDNTûACCESSûCAPITALûMARKETS ûANDûWEûSAWû MIGHTûWORRYûABOUTûTHEûRECOVERYûHAVINGû "UTûMOSTûSTANDARDûBONDûDOCUMENTSûWEREû COMPANIESûWITHûRELATIVELYûLOWûLEVERAGEû HICCUPS vûSAIDû3TEVEû2EPOFF ûPORTFOLIOû DEVISEDûBEFOREûTHEûRECENTûBOOMûINû30!#Sû DRIVENûTOûDEFAULTûORûDISTRESSEDûDEBTû MANAGERûATû'7+û)NVESTMENTû-ANAGEMENTû 4HESEûTAKE PUBLICûVEHICLESûHAVEûBECOMEû EXCHANGESû.OWûTHEYûHAVEûBEENûABLEûTOû h;"UT=ûIFûTHEYREûABLEûTOûTAKEûOUTûFRONT ENDû BOTHûAûMAJORûCOMPETITORûTOûPRIVATEûEQUITYû ACCESSûCAPITALûMARKETSûANDûTHEYûHAVEûBOUGHTû MATURITIES ûTHATûBUYSûAûLOTûOFûRUNWAYûûANDû lRMSûINûTHEûHUNTûFORûNEWûACQUISITIONSûANDû BREATHINGûROOM vûSAIDû*OHNû+EMPF ûSENIORû WEûFEELûAûLOTûMOREûCOMFORTABLEûTHATûTHEYVEû ANûINCREASINGLYûATTRACTIVEûEXITûSTRATEGYûFORû DIRECTORûATû&ITCHûh)NûTHEûNEARûTERMûWEûAREû BEENûABLEûTOûACCESSûTHEûMARKETv PRIVATEûEQUITYûlRMSûANDûTHEIRûEXISTINGû POSITIVE ûBUTûTHEûHIGH YIELDûMARKETûISûlNICKYû 4HEûDEALûWASû2OYALû#ARIBBEANSûlRSTûONûANû PORTFOLIOûCOMPANIES nûTHEûFUNDINGûWINDOWûCANûCLOSEûQUICKLYûASû UNSECUREDûBASISûSINCEûTHEûONSETûOFûTHEû#OVID 3OMEûISSUERSûAREûNOWûPUSHINGûMOREû SPREADSûTIGHTENûTOûOTHERûSECTORS ûANDû ûPANDEMICûLASTûYEAR ûFOLLOWINGûSECUREDû AGGRESSIVEûCOVENANTSûINTOûBONDûDEALS ûWHICHû COMMODITYûPRICESûMOVEûAROUNDv ANDûGUARANTEEDûNOTEûOFFERINGSû)TûWASûSEENû GIVEûTHEMûGREATERûmEXIBILITYûTOûREPAYûTHEû )NVESTORûINTERESTûINûTHEûSECTORûGAINEDû TRADINGûAROUNDûPARûONû4HURSDAY ûACCORDINGû BONDSûEARLYûORûPAYûBIGGERûDIVIDENDSûIFûONEûOFû MOMENTUMûTOWARDSûTHEûENDûOFûLASTûYEARûASû TOû-ARKET!XESS THEIRûCOMPANIESûISûCOMBINEDûWITHûAû30!# PORTFOLIOûMANAGERSûLOOKEDûTOûENERGYûBONDSû #OMPAREDûWITHûOTHERûRECENTûUNSECUREDû "LACKSTONE ûFORûEXAMPLE ûRAISEDû53Mû ASûAûCHANCEûTOûOUTPERFORMûTHEûMARKET ûGIVENû CRUISEûLINEûDEALS û2OYALû#ARIBBEANûWASûSEENû WITHûAû#AA### ûRATEDûEIGHT YEARûNON CALLû THEûHIGHûYIELDSûONûOFFER ûANDûTHATûHASûCARRIEDû OFFERINGûSOMEûPICK UPûTOû#ARNIVALSûûû THREEûSENIORûNOTEûISSUEûLASTûWEEKûTOûlNANCEû INTOûTHISûYEAR UNSECUREDûNOTEûTHATûWASûTRADINGûATûAûYIELDûOFû ITSûACQUISITIONûOFûDESIGNûTECHNOLOGYû 4HEûENERGYûSECTORûHASûOUTPERFORMEDûTHEû ûONû4UESDAYûEVENING ûACCORDINGûTOû COMPANYûINTERIOR LOGIC GROUPû,EAD LEFTû BROADERûHIGH YIELDûMARKETûTHISûYEAR ûWITHû -ARKET!XESS ûBUTûWASûSIMILARûTOû.ORWEGIANSû Goldman SachsûPRICEûTHEûDEALûATûPARûWITHûAû )#%û"OF!SûHIGH YIELDûINDEXûUPûûINûTHEû ûûUNSECUREDûTHATûWASûATû ûCOUPONûONû4HURSDAY YEAR TO DATE ûCOMPAREDûWITHûNEGATIVEû RETURNSûOFûûFORûTHEûOVERALLûINDEX ALL US$ DENOMINATED HIGH-YIELD BONDS ALL NON-DOLLAR DENOMINATED HIGH-YIELD BONDS h)NVESTORSûSTARTEDûPICKINGûWHOûTHEû BOOKRUNNERS – 1/1/2021 TO DATE 1/1/2021 TO DATE SURVIVORSûWOULDûBE ûDEALSûGOTûDONEûANDûTHENû Managing No of Total Share Managing No of Total Share TRADEDûUPûQUICKLY vûSAIDû+EMPFûh)TûHASû bank or group issues US$(m) (%) bank or group issues €(m) (%) BROUGHTûINVESTORSûBACKûTOûNAMESûTHATûWEREû 1 JP Morgan 127 16,505.72 10.7 1 JP Morgan 26 2,695.64 8.2 UNINVESTABLEûASûLATEûASû/CTOBERûORû.OVEMBERû 2 Bank of America 115 12,634.33 8.2 2 Barclays 19 2,588.36 7.9 LASTûYEARv 3 Citigroup 77 9,143.15 5.9 3 Deutsche Bank 20 2,528.33 7.7 4 Barclays 79 8,822.46 5.7 4 Goldman Sachs 26 2,321.46 7.1 ROYAL CARIBBEAN TAPS BOND MARKET 5 Credit Suisse 89 8,648.29 5.6 5 Bank of America 16 2,157.27 6.6 FOR MORE FUNDS 6 Goldman Sachs 75 8,304.25 5.4 6 HSBC 19 2,002.29 6.1 7 Wells Fargo 73 8,026.99 5.2 7 BNP Paribas 19 1,472.84 4.5 #RUISEûLINEûROYAL CARIBBEAN asked bond 8 Morgan Stanley 64 7,517.43 4.9 8 Morgan Stanley 14 1,436.54 4.4 INVESTORSûFORûANOTHERûROUNDûOFûFUNDSûONû 9 RBC 57 7,107.60 4.6 9 UniCredit 16 1,173.64 3.6 7EDNESDAY ûOFFERINGûAû53BNûUNSECUREDû 10 Deutsche Bank 78 6,906.38 4.5 10 Credit Suisse 17 1,167.24 3.5 NOTEûINûTHEûHIGH YIELDûMARKETûAFTERû Total 237 154,474.71 Total 52 32,896.67

ANNOUNCINGûANOTHERûEXTENSIONûOFûSAILINGû Including US domestics, Euro, foreign, globals. Excluding equity-related debt. Excluding equity-related debt. SUSPENSIONSûEARLIERûTHISûMONTH Source: Refinitiv SDC code: B5 Source: Refinitiv SDC code: B6

International Financing Review March 27 2021 37

5 IFR Bonds 2376 p21-58.indd 37 26/03/2021 20:23:12 !NALYSTSûATû#OVENANTû2EVIEWûSAIDûTHEûBONDSû )FûTHEûCOMPANYûHASûNOTûMETûSUSTAINABILITYû RENAULT "A"" "" ûANDûSAIPEM "A CONTAINEDûhEXTREMELYûDEFECTIVEûSPONSOR STYLEû TARGETSûBYû ûTHEûCOUPONûWILLûINCREASEûBYû "" ûBOTHûPLUMPEDûFORûINTRADAYûEXECUTIONû COVENANTSv ûWITHûOFF MARKETûMUTATIONSûEVENû BPûPERûYEARûUNTILûTHEûTARGETûISûMETûANDû ONûSEVEN YEARûBONDS ûWHILEûHAPAG-LLOYD FROMûTYPICALLYûLOOSEûSPONSORûDEALS CONlRMEDûBYûANûEXTERNALûVERIlER "A"" ûANNOUNCEDûINVESTORûCALLSûFORû 4HEûOFFERINGûDOCUMENTSûINCLUDEûAû 4HEû""" "" ûRATEDûBONDûISSUEûISûTIEDûTOû õMûOFûSEVEN YEARûNON CALLûTHREEû SEPARATEûh1UALIlEDû)0/vûCLAW ûSEPARATEûTOû THEûCOMPANYSûTARGETSûOFûACHIEVINGûAûû SUSTAINABILITY LINKEDûSENIORûNOTESûSEEû THEûUSUALûEQUITYûCLAWûTERMS REDUCTIONûINû3COPEûûANDûûGREENHOUSEûGASû FEATUREûARTICLE û 5NDERûTHEûTERMS û"LACKSTONEûCOULDûUSEûTHEû EMISSIONSûBYûûANDûAûûREDUCTIONûBYû )NVESTORSûWEREûBEINGûAûLITTLEûMOREû PROCEEDSûOFûAûh1UALIlEDû)0/vûnûDElNEDûASûAû ûFROMûAûûBASELINE CIRCUMSPECTûONûTHEûDAYûnûBOOKSûWEREûLESSû 30!#ûCOMBINATIONûnûTOûCALLûûOFûTHEû %ARLIERûLASTûWEEK ûTHEûCOMPANYûCOMMITTEDû SWAMPED ûWHILEûDEALSûPRICEDûWITHûNEWû BONDSûAFTERû!PRILûûû4HATûISûINûADDITIONû TOûACHIEVINGûNETûZEROûGREENHOUSEûGASû ISSUEûCONCESSIONSû2ENAULTûPULLEDûINûAûõBNû TOûAûMOREûNORMALûûEQUITYûCLAWûPROVISION û EMISSIONSûBYû ORDERûBOOKûFORûITSûõMûBOND ûANDûSETûAû #OVENANTû2EVIEWûSAID h4HESEûACTIONSûREINFORCEûOURûCOMPANYSû YIELDûOFûûAFTERû)04SûOFûTHEûûAREAû!û h4HISûISûAûQUITEûSIGNIlCANTûCHANGEûFROMû LONG STANDINGûCOMMITMENTûTOûRESPONSIBLEû BANKERûAWAYûFROMûTHEûTRADEûSAWûFAIRûVALUEû THEûORDINARYûTREATMENTûOFûEQUITYûOFFERINGS vû ENVIRONMENTALûSTEWARDSHIPûANDûSUSTAINABLEû ATû WROTEû#OVENANTû2EVIEWûANALYSTû2OSSû(ALLOCKû FOODûPRODUCTION vûSAIDû&ABIOû3ANDRI û !NDû)TALIANûOILlELDûCOMPANYû3AIPEMûSETû INûTHEûREPORTûh!ûMOREûMEASUREDû30!# 0ILGRIMSûGLOBALûCHIEFûEXECUTIVEûOFlCER ûINûAû AûlNALûYIELDûOFûûONûITSûõMûDEALû!û RELATEDûEQUITYûCLAWûREVISIONûWOULDûBEûTOû STATEMENT BANKERûONûTHEûTRANSACTIONûSAWûFAIRûVALUEû ONLYûTREATû30!#ûCOMBINATIONSûINûTHEû Sustainability-linked notes are seen as a AROUNDûnû)NITIALûPRICEûTHOUGHTSû ACCEPTEDûWAYûTHATûTRADITIONALûPUBLICûEQUITYû MOREûACCESSIBLEûWAYûFORûSMALLERûHIGH YIELDû WEREûTHEûûAREA RAISESûAREûTREATEDv ISSUERSûTOûTAPûINTOûDEMANDûFORû%3'ûSECURITIESû h)TûWASûCLEARûLASTûWEEKûTHATûGOINGûINTOû #OVENANTû2EVIEWûHIGHLIGHTEDûTHATû 5NLIKEûTRADITIONALûGREENûBONDS ûTHEûISSUERûISû THEûQUARTERûENDûTHEREûISûSLIGHTLYûWANINGû "LACKSTONESûDEALûFORû)NTERIORû,OGICûALSOû NOTûTIEDûTOûUSINGûTHEûPROCEEDSûFORûSPECIlCû risk appetite around the market,” said CONTAINEDûPROVISIONSûTHATûLOOSENEDûTHEû GREENûPROJECTSû(OWEVER ûSOMEûINVESTORSûINû (ENRIKû*OHNSSON ûGLOBALûCO HEADûOFûCAPITALû RESTRICTEDûPAYMENTSûANDûBUILD UPûBASKETû THEûMARKETûFEELûTHATûTHEûPENALTIESûSEENûSOûFARû MARKETSûATû$EUTSCHEû"ANK ûCOMMENTINGû TERMS ûINûTHEûEVENTûOFûAû30!#ûCOMBINATION FORûMISSINGûSUSTAINABILITYûTARGETSûAREûTOOûLOWû ONûTHEûBROADERûMARKET h7EûCONCEDEûTHATûITûMAYûBEûAPPROPRIATEû ANDûTOOûLATEûINûTHEûLIFEûOFûAûBONDûISSUEûTOûHAVEû h-OSTûOFûTHEû)'ûNEWûISSUESûLASTûWEEKû FORûINDENTUREûFORMSûTOûBEûREVISEDûTOûTREATû ANûIMPACT NEEDEDûNEWûISSUEûCONCESSIONSûINûORDERûTOû EQUITYûRAISESûVIAû30!#SûCONSISTENTLYûWITHû 4HEûCOMPANYûHASûAûRANGEûOFûOTHERû GETûTRACTION ûINûAûTREND BREAKûFROMûTHEûLASTû TRADITIONALûPUBLICûEQUITYûRAISESûTOûTHEûEXTENTû SUSTAINABILITYûTARGETS ûINCLUDINGûREDUCINGû WEEKS ûANDûWEûHAVENTûSEENûASûMUCHû THATûTHEûPROCEEDSûOFûTHEû30!#ûEQUITYûRAISEû ELECTRICITY ûWATER ûANDûNATURALûGASûUSAGE û SECONDARYûMARKETûFOLLOWûTHROUGHûINûTHEû REMAINûINûTHEûCREDITûFOLLOWINGûTHEû30!#û ACHIEVINGûAûCERTAINûSCOREûONûANIMALûHEALTHû (9ûSPACEv COMBINATION vûWROTEû(ALLOCKûh(OWEVER û SCORECARDS ûANDûADHERENCEûTOûSUPPLIERûCODESû 9EAR TO DATE ûNEARLYûõBN EQUIVALENTûOFû THERESûAûRIGHTûWAYûANDûWRONGûWAYûTOûMAKEû OFûCONDUCT ûBUTûTHEûBONDûOFFERINGûISûONLYûTIEDû HIGH YIELDûBONDSûHAVEûBEENûISSUEDûACROSSû SUCHûREVISIONSv TOûPERFORMANCEûONûTHEûGREENHOUSEûGASûTARGET EUROSûANDûSTERLING ûCOMPAREDûWITHû !NûINVESTORûFOLLOWINGûTHEûDEALûNOTEDûTHATû õBNûOVERûTHEûSIMILARûPERIODûINû û PILGRIM’S PRIDE OFFERS FIRST SLB 0ILGRIMSû0RIDEûISûûOWNEDûBYû"RAZILIANû ACCORDINGûTOû)&2ûDATA FROM POULTRY SECTOR BEEFûPRODUCERû*"3û*&û)NVESTIMENTOS ûTHEû h4HEûFROTHûHASûDElNITELYûWORNûOFFûFROMû OWNERûOFû*"3 ûPAIDû53MûTOûSETTLEû &EBRUARY vûSAIDûAûHIGH YIELDûBANKERûh4HEû PILGRIM’S PRIDE, the global meat and prepared FOREIGNûBRIBERYûCHARGESûINûTHEû53ûINû û WORDûTHATûISûBEINGûTOSSEDûAROUNDûAûLOTûISû FOODûPROCESSOR ûOFFEREDûTHEûlRSTû ANDûENVIRONMENTALûORGANISATIONû FATIGUEûnûDEALûmOWûHASûBEENûRELENTLESSûOVERû SUSTAINABILITY LINKEDûBONDûISSUEûFROMûTHEû 'REENPEACEûSAIDûINû!UGUSTûûTHATûTHEû THEûPASTûTHREEûTOûFOURûWEEKSû(OPEFULLYûWEû MEATûANDûPOULTRYûSECTORûLASTû4HURSDAY ûANDû COMPANYSû"RAZILIANûCATTLEûPRODUCTIONûWASû CANûALLûGETûAûBREATHERûSOONv ATû53BNûTHEûDEALûBECAMEûTHEûLARGESTûOFûAû tied to suppliers engaging in illegal !ûSECONDûHIGH YIELDûBANKERûDISAGREED û HANDFULûOFû3,"SûTOûEMERGEûINûTHEû53ûHIGH DEFORESTATIONûINûTHEû!MAZON SAYINGûTHATûTHEûFATIGUEûWASûMOREûTOûDOû YIELDûMARKETûSOûFAR h4HEYûHAVEûHADûTHEIRûFAIRûSHAREûOFû WITHûBANKERSûBEINGûUNDERûSTRAINûAFTERû 4HEû53BNûSENIORûUNSECUREDû YEARû GOVERNANCEûANDûENVIRONMENTALûISSUES vûSAIDû HAVINGûWORKEDûFROMûHOMEûFORûAûYEARû NON CALLûlVEûNOTEûOFFERINGûISûTIEDûTOûTHEû THEûINVESTOR ûREFERRINGûTOû*"3 “It’s good to see the market so busy, but COMPANYSûTARGETSûTOûREDUCEûGREENHOUSEû Barclays WASûAûLEAD LEFTûBOOKRUNNERû DESPITEûCONCERNSûOFûFATIGUEûITûSEEMSûMOREû GASESû)TûISûTHEûLARGESTû3,"ûISSUEûTOûEMERGEûINû alongside Bank of Montreal and RBCû"ARCLAYSû PERSONALûTHANûPROFESSIONAL vûHEûSAIDûh7Eû THEû53ûHIGH YIELDûMARKET ûAFTERû53Mû ANDû2"#ûWEREûSUSTAINABILITYûSTRUCTURINGû AREûlNDINGûTHEûLEVELSûOFûOVERSUBSCRIPTIONû OFFERINGSûFROMûTECHNOLOGYûCOMPANYû,EVELûû AGENTS ORûAPPETITEûREALLYûGOOD ûWHILEûCONCERNSû INû*ANUARYûANDûAû53MûDEALûFROMû OVERûRISKûRATESûINûTHEû53ûSEEMûLARGELYû ALUMINIUMûPRODUCERû#ONSTELLIUMûINû MANAGEABLEûnûANDûMOREûOFûAû53ûISSUEûTHANû &EBRUARY EUROPE/MIDDLE EAST/ Aû%UROPEANûISSUEû7EVEûGOTûAûHEALTHYû 4HEûDEALûWASûPRICEDûATûAûCASHûPRICEûOFû AFRICA PIPELINEûFORû!PRILv ûANDûAûCOUPONûOFûûTOûYIELDû ûINûLINEûWITHûPRICEûTALKûOFûû DOUBLE BS TRUCK THROUGH AMID HITTING TURBULENCE AREAû4HEûCOMPANYSûLONGEST DATEDûEXISTINGû WARNINGS OF SUPPLY FATIGUE "RITISHû!IRWAYSûPARENTûIAGSûNEWûBONDSû BONDûISSUE ûAûûûSENIORûNOTEû TOOKûAûBITûOFûAûBEATINGûINûSECONDARYûLASTû OFFERING ûWASûTRADINGûATûAûYIELDûOFûABOUTû %UROPEANûHIGH YIELDûISSUANCEûSWITCHEDûTOû WEEKûAFTERû"RITONSûWEREûWARNEDûATûTHEû ûONû7EDNESDAY ûACCORDINGûTOû SAFETYûMODEûASûTHREEûNEWû$OUBLEû"ûRATEDû STARTûOFûTHEûWEEKûNOTûTOûBOOKûHOLIDAYSû -ARKET!XESSû0ROCEEDSûWILLûBEûUSEDûTOû BONDSûWEREûANNOUNCEDûONû4UESDAY ûASûSOMEû ABROAD ûFOLLOWINGûAûWAVEûOFûNEWû#OVID û RElNANCEûTHEûCOMPANYSûûSENIORûNOTESû BANKERSûWARNEDûTHATûTHEûFROTHûISûCOMINGûOFFû INFECTIONSûACROSSû%UROPEû4HEûCOMPANYSû DUEû THEûMARKETûAFTERûWEEKSûOFûFRENETICûSUPPLY û-ARCHûS ûWHICHûPRICEDûATûPARûONû

38 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 38 26/03/2021 20:23:13 BONDS HIGH-YIELD

-ARCHû ûDROPPEDûLASTûWEEKûTOû û NON CALLûTWOûNOTESûnûALONGSIDEûAûõBNû õMûUNSECUREDûûSENIORûSûATûPARû WHILEûITSûû-ARCHûSûDROPPEDûFROMû lVE YEARûCOVENANT LITEûTERMûLOANû" nûASûWELLûASûREPAYINGûITSûõBNûTERMûLOAN PARûPRICINGûTOû ûACCORDINGûTOû "UTûBYû&RIDAYû-ARCHû ûTHEûCOMPANYûHADû -ARKET!XESSû TOûREDUCEûTHEûLOANûPORTIONûTWICE ûWHILEûTHEû EBITDA ADJUSTMENTS )NûADDITION ûSOMEûOFûTHEûHIGH YIELDû BONDSûADJUSTEDûTOûINCREASEûTHEûû0)+ ûASû !NALYSTSûANDûINVESTORSûREMARKEDûONûTHEû BONDSûTHATûPRICEDûINûRECENTûWEEKSûWITHû INVESTORSûDEMANDEDûTOûBEûPAIDûUPûFORûTHEûRISKû SCALEûOFûTHEû%BITDAûADJUSTMENTSûTHEûDEALûWASû AGGRESSIVEûCOVENANTûPACKAGESûWEREûTRADINGû OFûLENDINGûTOûTHEûCOMPANYûWHILEû'ERMANYû BEINGûMARKETEDûWITHû#REDIT3IGHTSûANALYSTSû DOWN BATTLESûAûTHIRDûWAVEûOFûCORONAVIRUSûINFECTIONSû SAIDûTHEûDEALûPRICEDûINûAROUNDûõMûOFûCOSTû &RENCHûREALûESTATEûSERVICESûlRMû&ONCIASû 4HEûõBNûTERMûLOANû"ûNOWûTOTALSû SAVINGSûANDûSTRIPPEDûOUTûTHEû#OVID AFmICTEDû õMûû-ARCHûûSENIORûSECUREDS û õMûANDûPAYSûBP ûWITHûAûûmOORûATûû TRADINGûACROSSûALLûOFû WHICHûPRICEDûONû-ARCHûûATûPAR ûDROPPEDûTOû /)$û)TûWASûlRSTûREDUCEDûONû-ARCHûûTOû h$OUGLASûûISûSELLINGûITSûRElNANCINGûOFFûAû n ûACCORDINGûTOû4RADEWEBû)TSû õM @MANAGEMENT ADJUSTEDû%BITDAûlGUREûTHATûISû õMûû-ARCHûûSENIORûUNSECUREDû -EANWHILE ûTHEûõBNûINûlVE YEARûNON CALLû BASEDûONûAûHIGHûDEGREEûOFûSPECULATIVEû NOTESûWEREûSEENûTRADINGûATûûONû4UESDAYû TWOûlXED RATEûSENIORûSECUREDûNOTESû"""n û ADJUSTMENTSûINûTHEûFORMûOFûASSUMPTIONS û BEFOREûINCHINGûUPûTOûûBYû&RIDAY WEREûINCREASEDûTOûõBNûONû-ARCHûûnû RUN RATEûRECOVERIESûINûREVENUESûBASEDûOFFû 4HEûDEALûFUNDEDûAûõMûDIVIDENDûTOû ANDûTHENûREDUCEDûTOûõBNû&INALûPRICEû SALESûBETWEENû*UNEûANDû/CTOBERû ûANDû &ONCIASûSHAREHOLDERSûANDûINCLUDEDûAû TALKûWASûUPPEDûTOû ûFOLLOWINGûINITIALûPRICEû THEûSUCCESSFULûEXECUTIONûOFûITSûSTOREû SPONSOR FRIENDLYûCOVENANTSûPACKAGEûTHATû TALKûONû7EDNESDAYûOFû OPTIMISATIONûPROGRAMME vûWROTEû SPARKEDûALARMûAMONGûANALYSTS 4HEûREDUCTIONûINûTHEûTERMûLOANûANDûSENIORû #REDIT3IGHTSûANALYSTSûINûAûREPORTûPUBLISHEDû h3OMEûDEALSûTHATûCLEAREDûWITHûUBER SECUREDûBONDSûWASûPICKEDûUPûBYûlXED RATEû ONû4UESDAY AGGRESSIVEûCOVENANTûPACKAGESûHAVEûTRADEDû SENIORûPAYMENT IN KINDû YEARûNON CALLû “The bottom line is that the presented DOWNûAûBITûINûSECONDARY vûSAIDûTHEûHIGH YIELDû TWOûNOTESû#AA###### ûWHICHûINCREASEDû lGUREûOFûõMûMANAGEMENT ADJUSTEDû BANKER TOûõMûONû-ARCHû ûFROMûõMûATû %BITDAûISûûTIMESûHIGHERûTHANûTHEû;LASTûû h7EûHAVEûSEENûMUCHûBETTERûDISCIPLINEû LAUNCHû0RICINGûOFûûREMAINEDûTHEûSAME MONTHS=ûTOû$ECEMBERûûREPORTEDû%BITDAû FROMûINVESTORSûAROUNDûPRICINGûTHANû !ûHIGH YIELDûINVESTORûWHOûSPOKEûTOû)&2û lGUREûOFûõMvûWROTEûANALYSTSû COVENANTSû)FûYOUûGOûBACKûTOû*ANUARYûANDû EARLIERûONûINûTHEûDEALSûEXECUTIONûSAIDûHEû 7ITHOUTûTHEûADJUSTMENTS ûNETûLEVERAGEû &EBRUARY ûYOUûCOULDûREPEATEDLYûCUTûPRICINGû PREFERREDûTHEûLOOKûOFûTHEû0)+ûNOTES WOULDûSTANDûATûXûONûTHEûSENIORûSECUREDû ONûAûDEALûWITHûANûAGGRESSIVEûDOCûANDûYOURû h4HEû0)+SûAREûMUCHûRISKIER ûBUTûATûûYOUû NOTES ûVERSUSûTHEûXûBASEDûOFFûOFûTHEû ORDERûBOOKûWOULDNTûSHRINKûATûALL HAVEûAûLOTûOFûINCOMEûANDûTHEREûISûNOû MANAGEMENT ADJUSTEDû%BITDA ûSAIDû h"UTûIFûYOUVEûGOTûAûRIDICULOUSûDOCûANDûCUTû IMMINENTûRISKûOFûDEFAULTûNOWûTHATûTHEYûHAVEû #REDIT3IGHTSû PRICING ûTHENûYOULLûSEEûSMALLERûORDERûBOOKSû MANAGEDûTOûRElûTHEûSHORTER DATEDûBONDû 3TILL ûTHEûHIGH YIELDûINVESTORûSAIDûTHATûHEû 9OUREûSTILLûSEEINGûSTUFFûCLEARûnûBUTûYOUREû $OUGLASSûS vûHEûSAID BELIEVEDûINû$OUGLASSûTURNAROUND SEEINGûDEALSûTRADEûDOWNûINûSECONDARYûTHATûlTû 4HEûTERMSûOFûTHEû0)+ûNOTESûGIVEûTHEûISSUERû h9ES ûTHEREûAREûLOTSûOFû%BITDAûADJUSTMENTS û THATûMOULDv SOLEûDISCRETIONûEITHERûTOûPAYûINTERESTûINûCASHû but the business is going in the right !CTIVEûBOOKRUNNERSûONû3AIPEMûWEREûBNP ORûTOûPAYû0)+ûINTERESTûnûIE ûISSUINGûADDITIONALû DIRECTIONûANDû;THEREûIS=ûPLENTYûOFûEQUITYû Paribas "$ ûDeutsche Bank, Goldman Sachs, SENIORû0)+ûNOTES ûACCORDINGûTOûDEALû BELOWûTHEûDEBT vûHEûSAIDûh4HEûBUSINESSûWASû HSBC, IMI-Intesa Sanpaolo and UniCredit. /Nû DOCUMENTSûSEENûBYû)&2 BOUGHTûFORûGREATERûTHANûNINEûTIMESû 2ENAULT ûJOINTûLEADûMANAGERSûWEREûBBVA, 3OMEûINVESTORSûSAWû)04SûONûTHEûSENIORû ;LEVERAGE=ûANDûTHEûSPONSORûISûNOWûPUTTINGûINû Credit Agricole, MUFG, Societe Generale "$ SECUREDûNOTESûCOMINGûAûLITTLEûSLIMûGIVENûTHEû EVENûMOREûEQUITYû4HEYûWILLûPROBABLYûLOOKûTOû and UniCredit. COMPANYSûPAPERûWASûSEENûTRADINGûASûLOWûASû )0/ûTHEûBUSINESSûINûAûFEWûYEARSûTOûGETûTHEIRû ûCENTSûONûTHEûDOLLARûLESSûTHANûAûYEARû MONEYûOUTûBUTûTOûDOûSOûTHEYûWILLûNEEDûTOû DOUGLAS LEANS ON BONDS TO AGOû3TILL ûTHEYûBELIEVEûITSûSHIFTûTOûONLINEûHASû DELEVERAGEûITûBYûAûLOTv LAND JUMBO REFI GOODûPROSPECTS Goldman Sachsû"$ Deutsche Bank and h4HEû33.SûAREûCOMINGûMID S ûBUTûTHOSEû UniCreditûWEREûJOINTûGLOBALûCOORDINATORS û 'ERMANûBEAUTYûPRODUCTSûRETAILER DOUGLAS BONDSûWEûBELIEVEûAREûWELLûCOVEREDûUNDERûANû WHILEûBNP Paribas and UBSûWEREûJOINTû LEANTûONûHIGH YIELDûBONDSûTOûGETûITSûJUMBOû EVENTûOFûDEFAULT vûSAIDûTHEûHIGH YIELDû BOOKRUNNERSû,EADSûKICKEDûOFFûINVESTORûCALLSû RElNANCINGûTHROUGHûTHEûMARKETûLASTûWEEK û INVESTORûh;$OUGLAS=ûSHOULDûBEûAûBUSINESSû ONû4HURSDAYû-ARCHû REJIGGINGûTHEûSTRUCTUREûAûNUMBERûOFûTIMESû THATûHASûAûLOTûOFûBREATHINGûROOMûNOWûTOû ASûTHEûLOANûPORTIONûFAILEDûTOûGAINûTRACTIONû CONTINUEûITSûMOVEûTOûONLINEûnûWHICHûISûWORTHû ALL EUROPEAN HIGH-YIELD ISSUERS WITHûINVESTORSû HIGHERûMULTIPLESûnûASûWELLûASûREDUCINGûITSû 1/1/2021 TO DATE 4HEûCOMPANYûWASûSHOPPINGûAûõBNû lXEDûOVERHEADSûBYûRATIONALISINGûTHEûSTOREû Managing No of Total Share RElNANCING ûCONSISTINGûOFûLOANSûANDû FOOTPRINTv bank or group issues US$(m) (%)

BONDS ûASûITûLOOKEDûTOûREJIGûITSûDEBTû 4HEûCHANGEûINûSTRUCTUREûSUGGESTEDûTHEû 1 Deutsche Bank 25 4,252.85 8.4 STACKûANDûKICK STARTûITSûBUSINESSû LOANûGOTûNOûTRACTIONûATûALLûnûORûVERYûLIMITED ûAû 2 JP Morgan 32 4,250.12 8.4 TRANSFORMATIONûPLANûINûTHEûWAKEûOFûTHEû SYNDICATEûHEADûTOLDûSISTERûPUBLICATIONû,0#û 3 Barclays 24 3,706.07 7.3 PANDEMICû3PONSORû#6#û#APITALû0ARTNERSû h4HEûVACCINATIONûPROGRAMMEûINû'ERMANYû 4 Bank of America 21 3,393.15 6.7 WASûUSHERINGûTHEûlNANCINGûALONGûWITHû ISûWOEFUL ûITûISûBEINGûHITûBYûAûTHIRDûWAVEûANDû 5 Goldman Sachs 31 3,265.64 6.4 AûõMûEQUITYûCHEQUE ûINûAûLEAFûTAKENû %ASTERûHASûBEENûCANCELLED vûHEûSAIDûh3OûTHEû 6 Morgan Stanley 18 2,606.99 5.1 OUTûOFû,OWELLSûPLAYBOOKûFORûITSûJUMBOû PICK UPûDOESNTûFEELûASûIMMINENTûASûITûDIDûAû 7 BNP Paribas 22 2,457.77 4.9 RElûLASTûYEARû MONTHûAGO ûWHICHûHASûTOûBEûCONCERNINGû 8 Credit Suisse 23 2,414.54 4.8 $OUGLASûEXPECTEDûRATINGSû"""n û PEOPLEû)Fû)ûTAKEûAûRISKYûBET ûBPûISûMOREû 9 Citigroup 18 2,351.23 4.6 APPROACHEDûINVESTORSûONû-ARCHûûWITHû THANû)MûBEINGûPAIDûFORûOTHERûLOANSûBUTû 10 HSBC 19 2,183.59 4.3 õBNûINûlVE YEARûNON CALLûTWOûlXED RATEû DOESNTûNECESSARILYûFEELûINCREDIBLEv Total 62 50,633.87

SENIORûSECUREDûNOTESûANDûõMûINûlXED $OUGLASûISûGOINGûTOûREPAYûITSûõMûû Excluding equity-related debt. RATEûSENIORûPAYMENT IN KINDû YEARû SENIORûSECUREDûBONDSûDUEûûANDûITSû Source: Refinitiv SDC code: B06c

International Financing Review March 27 2021 39

5 IFR Bonds 2376 p21-58.indd 39 26/03/2021 20:23:13 4HEûRElNANCINGûWILLûIMPROVEû$OUGLASSû CHEQUEREDûPAST ûINVESTORSûAREûNOWûLOOKINGûATû Sole arranger and lead manager Bank of LIQUIDITYûBYûADDRESSINGûITSûUPCOMINGûDEBTû ITûWITHûAûFRESHûEYE vûSAIDûTHEûBANKERûh)Tû AmericaûPRINTEDûTHEûVEHICLESûõMûOFû#LASSû MATURITIESûINû ûINCREASINGûCASHûONûITSû SHOULDûGOûSMOOTHLYv !ûNOTESûATûAûBPûDISCOUNTûMARGIN ûHAVINGû BALANCEûSHEETûBYûALMOSTûõMûANDûPUTTINGû !DVANZû0HARMAûWASûFORMEDûFROMûTHEû STARTEDûWITHûBPûAREAûINITIALûPRICEû INûPLACEûAûNEWûõMû2#& ûSAIDû-OODYSû ûMERGERûOFû#ONCORDIAû(EALTHCAREûANDû THOUGHTSû4HEûTRANCHEûWASûûTIMESû ANALYSTS !-# SUBSCRIBEDû )Nû ûTHEûDRUGMAKER ûWHICHûWASû 4HATûCAMEûINSIDEûTHEûõMûOFû#LASSû!û ADVANZ PHARMA LANDS M&A TRADINGûONû.ASDAQûASû#ONCORDIA ûWASûDE NOTESûINûPRE PLACEDû3PANISHûOFlCE BACKEDû FINANCING LISTEDûASûPARTûOFûAûDEBTûRESTRUCTURINGûDEALûANDû #-"3û4AURUSû ûTHATûPRINTEDûATûBPû REBRANDEDûASû!DVANZû0HARMAû)TSûDEBTûWASû ONû&EBRUARYûû7EIGHTEDûAVERAGEûLIFEûOFûTHEû ,ONDON BASEDûDRUGMAKERûADVANZ PHARMA, a SLASHEDûBYû53BNûASûPARTûOFûTHATû &RANKFURTûAIRPORTûTRADEû!ûNOTESûISûûYEARSû debut issuer in the high-yield bond market, RESTRUCTURING ûWHICHûSAWû"LACKSTONESûCREDITû ANDûûYEARSûONûTHEû3PANISHûTRADE LANDEDûAû53BN EQUIVALENTûBONDûISSUEû INVESTMENTûARMû'3/ûTAKINGûCONTROLûALONGû /Nû&EBRUARYû û"ANKûOFû!MERICAûPRICEDû ONû4HURSDAYûTOûBACKûITSûTAKEOVERûBYû.ORDICû WITHû"YBROOKûANDû3OLUSû THEûaMûOFû#LASSû!ûNOTESûINû#-"3û4AURUSû #APITALû Goldman SachsûWASû"$ûONûTHEûEUROûBONDS û û5+ûnûFROMûTHEûFAVOUREDûLOGISTICSû 4HEûCOMPANYûPRICEDûAûõMû53M û WHILEûBarclaysûWASû"$ûONûTHEûSTERLINGû SECTORûnûATûBP ûWITHûAûûYEARû7!,û SEVEN YEARûNON CALLûTHREEûSENIORûSECUREDû BONDSû*OINTûBOOKRUNNERSûWEREûBarclays, *UDGINGû#-"3ûPRICINGSûCOMPETITIVENESSû EUROûTRANCHEûATûûANDûAûaMû53M û Goldman Sachs, IMI-Intesa Sanpaolo, JP Morgan, TOûBANKûLOANSûISûDIFlCULTûGIVENûMARKETû SEVEN YEARûNON CALLûTHREEûSENIORûSECUREDû Jefferies, Morgan Stanley and RBC Capital CONDITIONSû#AUTIONûABOUTû#OVID û STERLINGûTRANCHEûATûû0RICEûTALKûWASûn Markets VULNERABLEûSECTORSûISûNOTûCONlNEDûTOûBONDû ûANDûûAREA ûRESPECTIVELYû INVESTORSû"ANKSûALSOûHAVEûINSTITUTIONALû !û53M EQUIVALENTûEURO DENOMINATEDû VIEWSûONûHOTELSûANDûRETAILûANDûSOMEûMAYûNOTû LOAN ûWHICHûWILLûALSOûlNANCEûTHEûTAKEOVER û BEûWILLINGûTOûMAKEûAûLOANûTOûNAMESûFROMû WASûlRMEDûATûBPûOVERû%URIBORûWITHûAûû THOSEûSECTORSûATûANYûPRICEû4HEûDEALSû ANDûû/)$û4HEûLOANûHADûBEENûTALKEDûATûAû STRUCTURED FINANCE õMûSIZEûCOULDûALSOûBEûGREATERûTHANû MARGINûOFûBPnBPû THEûAMOUNTûFRONTEDûINûAûBANKûLOAN 0RIVATEûEQUITYûlRMû.ORDICû#APITALûOFFEREDû &ORûAûLOGISTICSûBACKEDûTRADE û4RIPLEû!ûNOTESû TOûBUYû!DVANZûINûAûDEALûINû*ANUARYûTHATû EMEA MBS PRICINGûOVERûBPûWOULDûPROBABLYûNOTûBEû VALUEDûTHEûDRUGMAKERûATû53M ûPARTûOFûAû COMPETITIVEûWITHûBANKûLOANS ûSAIDûONEû MOVEûTOûINVESTûINûACCELERATINGûTHEû COVID NO PROBLEM FOR FRANKFURT SOURCE COMPANYSûPIPELINEûOFûPHARMACEUTICALû AIRPORT CMBS BLACKSTONE REAL ESTATE PARTNERS’ light PRODUCTS INDUSTRIALûANDûLOGISTICSûBACKEDû#-"3ûLAST ,EADSûONûTHEûDEALûBACKEDûINTOûTHEûBONDSû /FlCEûANDûHOTELûEXPOSUREûAREûNOTûINûVOGUEû MILE SECURITIES – PE 2021ûWASûINûTHEûMARKETûTHISû PRICINGûFROMûTHEûLOANSûLEVELS INûTHEûPOSTû#OVID ûPARADIGMûBUTû#-"3û WEEK ûWITHûlNALûTERMSûONûõMûOFû!û h"ONDSûWEREûAûLITTLEûCHEAPERûTHANûLOANSûATû INVESTORSûPROVEDûWILLINGûTOûBUYûTAURUS 2021-3 NOTESûATûBPûANDûTHEûTRANCHEûûTIMESû THEûENDûOFûLASTûYEARûBUTûPRICINGûLEVELSûAREû DEUûTHATûPRICEDûONû-ONDAY COVEREDûnûEXCLUDINGûARRANGERSûTRADINGû NOWûMOREûORûLESSûONûTHEûSAMEûFOOTING vûSAIDû 4HEû#-"3ûSECURITISEDûAûSINGLEûPROPERTYûATû INTERESTûnûATûTHEûMOSTûRECENTûUPDATEû0RICINGû AûBANKERûONûTHEûDEAL ûSPEAKINGûTOû)&2ûJUSTû &RANKFURTû!IRPORT ûWITHûOFlCE ûHOTELûANDû on the Morgan StanleyûARRANGEDûTRADEûWASû AFTERûTHEûBONDSûWEREûANNOUNCEDûh9OUûCANû PARKINGûUSESû!SûAûCOUNTERPOINTûTOûINVESTORSû EXPECTEDûASû)&2ûWENTûTOûPRESSûONû&RIDAY HAVEûAûVERYûGOODûREFERENCEûPOINTûFORûTHEû CONCERNSûABOUTûFUTUREûREVENUESûINûTHEûAIRû 4HEûõMûOFû"ûNOTESûINû4AURUSû û$%5û BONDûFROMûTHEûLEVELSûPROPOSEDûFORûTHEû TRAVEL ûHOTELûANDûOFlCEûSECTORS ûTHEûASSETûHASû WEREûPRICEDûATûAûBPûDISCOUNTûMARGINûû LOANSv PERFORMEDûWELLûFORûINVESTORSûINûPREVIOUSû TIMESûCOVEREDûATûLASTûUPDATE ûõMûOFû#û 0RE MARKETINGûFEEDBACKûFORûTHEûlNANCINGû DEALSûSUCHûASûTHEû4AURUSû û$%5û#-"3 û NOTESûPRICEDûATûAûBPû$-ûûTIMESû WASûRELATIVELYûPOSITIVEûFROMûINVESTORS ûHEû WHICHû-ONDAYSûDEALûRElNANCEDû4HEûASSETSû COVERED ûõMûOFû$ûNOTESûATûAûBPû$-û SAID LOCATIONûALSOûPOSITIONSûITûWELLûTOûBEûAMONGû ûTIMESûCOVERED ûõMûOFû%ûNOTESûATûAû h4HEûCOMPANYûISûINûAûDEFENSIVEûSECTORûnû THEûlRSTûTOûPROlTûFROMûAûRETURNûTOûPRE BPû$-ûûTIMESûCOVERED ûANDûõMû PHARMACEUTICALSûnûANDûWHILEûITûHASûAûBITûOFûAû PANDEMICûTRAVELûHABITS OFû&ûNOTESûPRICEDûWITHûAûBPû$-ûNOûBOOKû 4AKINGûAûVIEWûONûTHEûTIMELINEûOFûTHATû UPDATEûGIVEN û ALL ASIAN HIGH-YIELD ISSUERS RETURNûTOûNORMALûISûNOTûSTRAIGHTFORWARDû 1/1/2021 TO DATE THOUGHû3OMEûINVESTORSûAREûSTILLûWARYûOFû LOGISTICS CMBS PRICED Managing No of Total Share ASSUMINGûFULLYûRECOVEREDûTRAVELûFOOTFALLûINû bank or group issues US$(m) (%) THEûNEXTûTWOûTOûTHREEûYEARS LAST MILE SECURITIES- PE 2021 ûTHEûõMû#-"3û )NûAû-ARCHûûNOTE û&ITCH ûWHICHûDIDûNOTûRATEû OFûLOGISTICSûANDûLIGHTûINDUSTRIALûASSETSûINû 1 Credit Suisse 24 1,251.84 7.2 4AURUSû û$%5 ûSAIDûTHATûINCREASEDûLEVERAGEû 'ERMANYûANDû.ETHERLANDS ûWASûPRICEDûONû 2 Citic 28 1,141.86 6.6 FROMûTHEûTRANSACTIONûANDûTHEûPROPERTYSû &RIDAY 3 HSBC 23 1,091.05 6.3 VULNERABILITYûTOûPOST PANDEMICûBUSINESSûTRAVELû The deal, sponsored by BLACKSTONE REAL 4 Morgan Stanley 14 1,021.73 5.9 RISKSûWASûhINCONSISTENTûWITHûOURûHIGHESTû ESTATE PARTNERS ûPRINTEDûWITHûõMûOFû 5 Guotai Junan Secs 33 1,006.65 5.8 INVESTMENT GRADEûRATINGSvû4HEûRATINGûAGENCYû #LASSû!ûNOTESûATûAûBPûMARGINûOVERûTHREE 6 Deutsche Bank 27 1,005.91 5.8 7 JP Morgan 12 952.38 5.5 BASEDûITSûANALYSISûONûPUBLICûINFORMATIONû MONTHû%URIBORûMorgan StanleyûWASûSOLEû 8 Haitong Secs 30 851.69 4.9 )NûITSûPRE SALEûREPORTûFORûTHEûTRANSACTION û ARRANGERûANDûLEADûMANAGERûONûTHEûDEAL

9 UBS 27 806.57 4.6 Moody’s noted that the deal’s OFlCEû 4HEûDISCOUNTûMARGINûONû5+ûLOGISTICSû 10 Citigroup 6 675.66 3.9 COMPONENTûPROVIDEDûENOUGHûINCOMEûTOû #-"3û4AURUSû û5+SûaMûOFû Total 54 17,421.96 SUFlCIENTLYûCOVERûDEBTûSERVICEûPAYMENTSûATûAû #LASSû!ûNOTESûnûALSOûAû"LACKSTONEû

Excluding equity-related debt. TIMEûWHENûHOTELûANDûPARKINGûWEREûSUFFERINGû SPONSOREDûDEALûnûWASûBPûWHENûTHATûDEALû Source: Refinitiv SDC code: B06d SHORTFALLSûINûDEMAND WASûPRICEDûONû&EBRUARYûû4HEûWEIGHTEDû

40 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 40 26/03/2021 20:23:13 STRUCTURED FINANCE

AVERAGEûLIFEûONûTHOSEûNOTESûWASûûYEARS û *UBILEEû0LACEû ûAû$UTCHû2-"3ûBACKEDû WHICHûISûMAINLYûBACKEDûBYûUNSECUREDûLOANSû CLOSEûTOûTHEûûYEARSûONû,ASTû-ILESû!û BYûBUY TO LETûMORTGAGESûPRICEDûONû&RIDAY CARRYINGûANû/RDINANZEûDIû!SSEGNAZIONEû NOTES !EGONûHASûNOTûISSUEDûPUBLICLYûFROMûTHEû /$! ûnûWHICHûASûAûRESULTûOFûAûCOURTûORDERû 4HEûSENIORSûLANDEDûWELLûINSIDEûOTHERûEURO 3AECUREûSHELFûSINCEûITSû3AECUREûûISSUANCEûINû ALLOWSûCREDITORSûTOûTAKEûAûlFTHûOFûDEBTORSû DENOMINATEDû#-"3ûTHISûYEARûFROMûMOREû .OVEMBERûû3AECUREûûANDûûTRANSACTIONSû SALARYûORûPENSIONûDIRECTLYûFROMûEMPLOYERSû #OVID ûVULNERABLEûSECTORSû3PANISHûOFlCE WEREûRETAINEDûANDû3AECUREûûPRE PLACED 4HISûPOOLûHASûAûõMû'"6 BACKEDû4AURUSû ûPRINTEDûõMûOFû!û 4HEûPORTFOLIOûCOMPRISESûOWNER OCCUPIEDû 4HEûPUBLICûANDûRATEDûSECURITISATIONûISûTHEû NOTESûATûBPûINû&EBRUARYû%ARLIERûLASTû $UTCHûRESIDENTIALûMORTGAGESûORIGINATEDûBYû lRSTûOFûITSûKIND ûINûEFFECTûREPLACINGûAû WEEK ûõMûOFû#LASSû!ûNOTESûINû4AURUSû !EGONû(YPOTHEKENûANDû!EGONû DEFAULTINGûBORROWERûWITHûTHEIRûEMPLOYERûORû û$%5ûWEREûPRICEDûWITHûAûBPû$-û ,EVENSVERZEKERINGûANDûISûSERVICEDûBYûTHEûFORMER SOCIALûSECURITYûPROVIDERû4HEû/$!ûCANûBRINGû 4HATûDEALûWASûSECUREDûONûAûPROPERTYûINû 4HEû"ûANDû#ûTRANCHESûOFû3AECUREûûAREû MOREûSECUREûCASHmOWSûTOûANûUNSECUREDû.0,û &RANKFURTû!IRPORT ûWITHûOFlCE ûHOTELûANDû BEINGûRETAINED ûBUTûTHEû!ûTRANCHE ûWHICHû TRANSACTIONû)TûISûESSENTIALLYûAûTWISTûONûTHEû PARKINGûUSES WILLûCOMPRISEûûOFûTHEûDEAL ûISûOFFEREDû SECURITISATIONûOFû#13ûLOANS ûBUTûWITHûPENSIONû 4HEûõMûOFû!ûNOTESûINû,ASTû-ILEûWEREû 4HEûSENIORSûHAVEûALSOûBEENûSTRUCTUREDûFORû ANDûSALARYûPAYMENTSûBEINGûENFORCEDûONûTHEû PRICEDûATûBP ûTHEûõMûOFû"ûNOTESûATûBP û Eurosystem eligibility and simple, BORROWER ûNOTûVOLUNTARILYûSIGNEDûUPûTO THEûõMûOFû#ûNOTESûATûBP ûTHEûõMûOFû$û TRANSPARENTûANDûSTANDARDISEDûTREATMENTû 3HORINGûUPûCOLLECTIONSûONûTHISûTYPEûOFû NOTESûATûBP ûTHEûõMûOFû%ûNOTESûATûBPû 4HEû#LASSû!ûNOTESûWILLûHAVEûAûPRE SETûBPû UNSECUREDûCOLLATERALûCOULDûBEûAûGAME CHANGERû ANDûTHEûõMûOFû&ûNOTESûATûBPû MARGINûOVERûTHREE MONTHû%URIBORûANDûAREû FORûTHEû.0,ûINDUSTRY ûALTHOUGHûTHISûCORNERûOFû EXPECTEDûTOûPRICEûABOVEûPARû4HEYûWILLûALSOû THEûMARKETûDOESûREMAINûFAIRLYûNICHEû DUTCH BTL RMBS PRICED HAVEûAûûYEARûWEIGHTED AVERAGEûLIFEûANDû h4HEûNON PERFORMINGûRECEIVABLESûASSISTEDû ûCREDITûENHANCEMENT ûCOMPAREDûTOûTHEû BYûTHEûJUDICIALûORDERûOFûASSIGNMENTû/$! û -ULTI ORIGINATEDû$UTCHûBUY TO LETû2-"3 ûYEARû7!,ûANDûûCREDITûENHANCEMENTûOFû AREûATûANûADVANCEDûSTAGEûOFûRECOVERY ûWHICHû JUBILEE PLACE 2021-1ûWASûPRICEDûONû&RIDAY û 'REENû3TORMûSû!ûNOTES MADEûTHEûPORTFOLIOûEASIERûTOûEVALUATE vûSAIDû COMINGûWELLûINSIDEûTHEûPREVIOUSûDEALûFROMû ABN AMROûISûARRANGINGû3AECUREûû)TûISû !NNALISAû$ENTONI ,ITTA ûPARTNERûATû/RRICKû ITSûSHELF ALSOûWORKINGûWITHûBank of America, BNP (ERRINGTONûû3UTCLIFFE ûWHICHûWASûTHEûLAWû 4HEûDEALûISûAûSECURITISATIONûOFûBUY TO LETû Paribas, Deutsche Bank and Wells FargoûASûJOINTû lRMûFORûTHEûDEALSûARRANGERSûDeutsche Bank MORTGAGESûFROMûDMS, DNL 1 and COMMUNITY LEADûMANAGERû and JP Morganûh)TûALSOûRECEIVEDûAûHIGHERû HYPOTHEKENû)TûISûFROMûTHEûSAMEûSHELFûASû RATINGûBYûTHEûRATINGûAGENCIES ûWHICHûMADEûITû *UBILEEû0LACEû ûAû#ITIGROUPûSPONSOREDû MOREûINTERESTINGûINûTHEûMARKET DEALûSOLDûINû.OVEMBER EMEA ABS ALL EUROPEAN ISSUERS Citi ARRANGEDû&RIDAYSûTRADE ûWHICHûPRINTEDû BOOKRUNNERS: 1/1/2021 TO DATE õMûOFû#LASSû!ûNOTESûWITHûANûBPû BANCA IFIS NPL MARKS NEW GROUND DISCOUNTûMARGINû4HEûõMûOFû#LASSû!û FOR UNSECURED DEALS Managing No of Total Share bank or group issues US$(m) (%) NOTESûINû*UBILEEû0LACEû ûWEREûPRICEDûATû ûWITHûAûBPûSPREADû)TûALSOûCAMEû !ûNON PERFORMINGûLOANûSECURITISATION ûIFIS 1 Citigroup 8 6,112.05 26.9 INSIDEûTHEûBPû$-ûONûTHEûõMûOFû NPL 2021-1 ûHASûMARKEDûAûlRSTûINû)TALIANû 2 Bank of America 5 2,550.62 11.2 #LASSû!ûNOTESûINû$OMIû ûAû$UTCHû"4,û UNSECUREDûCOLLATERALûBYûCONSTRUCTINGûNOTESû 3 BNP Paribas 8 2,432.52 10.7 2-"3ûPRICEDûINû/CTOBERû)TûDID ûHOWEVER û BACKEDûBYûWAGEûGARNISHMENTS 4 Barclays 8 2,268.54 10.0 COMEûOUTSIDEû$UTCHû0ROPERTYû&INANCEû 4HEûDEAL ûWHICHûCLOSEDûONû-ARCHû ûISûAû 5 Santander 4 1,412.97 6.2 SûõMûOFû#LASSû!ûNOTES ûWHICHûWEREû lRSTûINûTHEû)TALIANû.0,ûMARKETû)TûISûBACKEDûBYû 6 SG 4 857.61 3.8 7 Deutsche Bank 3 794.93 3.5 PRICEDûATûBPûOVERûTHREE MONTHû%URIBORûINû TWOûPORTFOLIOSûOFûLOANSûORIGINATEDûBYûIFIS NPL 8 Natixis 5 708.69 3.1 &EBRUARYûnûALBEITûONûAûPOOLûTHATûMIXEDû INVESTING ûPARTûOFû"ANCAû)lSû)lSû.0,ûWILLûALSOûBEû 9 NAB 3 550.80 2.4 RESIDENTIAL ûMIXED USEûANDûCOMMERCIALû SPECIALûANDûMASTERûSERVICERûTOûTHEûPORTFOLIO 10 Commerzbank 2 547.09 2.4 PROPERTIESû 4HEûlRSTûPORTFOLIO ûWITHûAûõMû Total 30 22,691.61 4HEûõMûOFû#LASSû"ûNOTESûINû*UBILEEû GROSSûBOOKûVALUE ûISûBACKEDûBYûSTANDARDû Includes securitisations, credit-linked notes (Euro, foreign, global and 0LACEû ûWEREûPRICEDûATûAûBPû$- ûTHEû .0,S ûTHEûMAJORITYûOFûWHICHûAREûSECUREDû domestics) and excludes CDOs. õMûOFû#ûNOTESûATûAûBPû$- ûõMûOFû$û -OREûNOTABLEûTHOUGH ûISûTHEûSECONDûPOOL û Source: Refinitiv SDC code: B16n NOTESûATûAûBPû$-ûANDûõMûOFû%ûNOTESûATû GLOBAL STRUCTURED FINANCE IN EUROS ALL INTL ISSUERS (EXCLUDING SELF-FUNDED) AûBPû$-û BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE AEGON RETURNS TO PUBLIC MARKET Managing No of Total Share Managing No of Total Share WITH NEW RMBS bank or group issues €(m) (%) bank or group issues US$(m) (%) 1 Santander 1 688.13 9.7 1 Credit Suisse 45 10,708.06 13.1 AEGON HYPOTHEKENûANNOUNCEDûITSûTWENTIETHû 2 Deutsche Bank 3 658.10 9.3 2 Citigroup 26 9,471.92 11.6 3AECUREû2-"3ûONû4UESDAY ûMARKINGûAûRETURNû 3 Citigroup 2 642.68 9.1 3 Barclays 30 8,261.86 10.1 TOûPUBLICûMARKETSûAFTERûOPTINGûTOûRETAINûANDû 4 SG 3 613.56 8.7 4 Bank of America 24 7,412.41 9.1 5 BNP Paribas 3 557.10 7.9 5 JP Morgan 21 5,103.48 6.2 PRE PLACEûRECENTûDEALSûFROMûTHEûPROGRAMMEû 6 Bank of America 1 512.98 7.3 6 Goldman Sachs 25 5,089.43 6.2 SAECURE 20ûISûTHEûTHIRDû$UTCHûPUREû2-"3ûTOû 7 Commerzbank 2 452.71 6.4 7 Deutsche Bank 27 4,418.53 5.4 BEûSOLDûPUBLICLYûTHISûYEARû4HEûMOSTûRECENT û 8 Coop Rabobank 2 445.06 6.3 8 Wells Fargo 17 4,105.87 5.0 'REENû3TORMûûnûORIGINATEDûBYû/BVIONûnû 9 UniCredit 1 420.93 6.0 9 BNP Paribas 13 3,616.24 4.4 WASûPRICEDûATûAûBPûDISCOUNTûMARGINûONû 10 Barclays 3 416.59 5.9 10 RBC 13 2,794.63 3.4 -ARCHûû"EFOREûTHAT û$UTCHû0ROPERTYû Total 13 7,062.41 Total 139 81,756.30 &INANCEû ûWASûSOLD ûINû&EBRUARYûBUTû Includes securitisations, credit-linked notes (Euro, foreign, global and Includes securitisations, PFI bonds and credit-linked notes. Excludes US THATûSECURITISEDûAûMIXûOFûRESIDENTIAL ûMIXED domestics) and excludes CDOs. global ABS/MBS, CDOs and self funded issues. USEûANDûCOMMERCIALûPROPERTIESû Source: Refinitiv SDC code: B16g Source: Refinitiv SDC code: J10d

International Financing Review March 27 2021 41

5 IFR Bonds 2376 p21-58.indd 41 26/03/2021 20:23:13 NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 26/3/2021 Issuer Amount (m) WAL Coupon (%) Bookrunner(s) Rating Asset type BMIR MI CRT US$188.872 1.87 SOFR+175bp BofA/JP Morgan A1/NR/NR RMBS BMIR MI CRT US$118.203 3.57 SOFR+220bp BofA/JP Morgan A3/NR/NR RMBS BMIR MI CRT US$139.387 5.00 SOFR+295bp BofA/JP Morgan Baa3/NR/NR RMBS BMIR MI CRT US$112.021 5.98 SOFR+485bp BofA/JP Morgan Ba3/NR/NR RMBS BMIR MI CRT US$21.324 6.32 SOFR+675bp BofA/JP Morgan B3/NR/NR RMBS CSAIL 2021–C20 US$8.088 3.42 0.85 CS/DB/UBS Aaa/NR/AAA CMBS CSAIL 2021–C20 US$177 8.78 2.49 CS/DB/UBS Aaa/NR/AAA CMBS CSAIL 2021–C20 US$246.324 9.60 2.80 CS/DB/UBS Aaa/NR/AAA CMBS CSAIL 2021–C20 US$13.731 6.71 2.44 CS/DB/UBS Aaa/NR/AAA CMBS CSAIL 2021–C20 US$58.027 9.96 3.08 CS/DB/UBS Aa3/NR/AAA CMBS CSAIL 2021–C20 US$27.821 9.96 3.30 CS/DB/UBS NR/NR/AA– CMBS CSAIL 2021–C20 US$26.231 9.96 3.85 CS/DB/UBS NR/NR/A– CMBS CSAIL 2021–C20 US$16.692 9.96 2.25 CS/DB/UBS NR/NR/BBB CMBS CSAIL 2021–C20 US$12.718 9.96 2.25 CS/DB/UBS NR/NR/BBB– CMBS FREMF SPC K–F104 US$913.163 9.45 1mSOFR+25bp MS/Barclays NR/NR/NR CMBS Frete 2021–Ml09 US$301.736 14.5 2.36 Wells Fargo/Jefferies NR/AA+/NR CMBS LAST MILE SECS–PE 2021 DAC €160.3 5.23 3mE+90bp MS NR/NR/AAA RMBS LAST MILE SECS–PE 2021 DAC €28.1 5.23 3mE+105bp MS NR/NR/AA+ RMBS LAST MILE SECS–PE 2021 DAC €30.9 5.23 3mE+120bp MS NR/NR/AA– RMBS LAST MILE SECS–PE 2021 DAC €38.7 5.23 3mE+160bp MS NR/NR/A– RMBS LAST MILE SECS–PE 2021 DAC €43 5.23 3mE+235bp MS NR/NR/BBB– RMBS LAST MILE SECS–PE 2021 DAC €44 5.23 3mE+350bp MS NR/NR/BB– RMBS LAST MILE SECS–PE 2021 DAC €28 5.23 3mE+500bp MS NR/NR/B– RMBS PRET 2021–NPL1 US$511 1.81 2.24 CS NR/NR/NR RMBS PRET 2021–NPL1 US$51 2.99 4.21 CS NR/NR/NR RMBS PROG 2021–SFR2 US$354.069 5.03 1.55 RBC CM/BofA/CS/DB/GS/MS Aaa/NR/NR ABS PROG 2021–SFR2 US$91.121 5.03 1.80 RBC CM/BofA/CS/DB/GS/MS Aa3/NR/NR ABS PROG 2021–SFR2 US$46.862 5.03 2.00 RBC CM/BofA/CS/DB/GS/MS A3/NR/NR ABS PROG 2021–SFR2 US$54.672 5.03 2.20 RBC CM/BofA/CS/DB/GS/MS Baa3/NR/NR ABS PROG 2021–SFR2 US$96.85 5.03 2.55 RBC CM/BofA/CS/DB/GS/MS NR/NR/NR ABS PROG 2021–SFR2 US$70.813 5.03 2.64 RBC CM/BofA/CS/DB/GS/MS NR/NR/NR ABS PROG 2021–SFR2 US$106.221 5.03 3.40 RBC CM/BofA/CS/DB/GS/MS NR/NR/NR ABS PROG 2021–SFR2 US$47.903 5.03 4.25 RBC CM/BofA/CS/DB/GS/MS NR/NR/NR ABS

h)MûSUREûWEûWILLûSEEûOTHERûTRANSACTIONSû /NEûOBSTACLEûTOûGROWTHûINûFOLLOW ONû SWISS ABS MARKET OPENS WITH LIKEûTHISv TRADESûISûTHEûLOANûSERVICERûINDUSTRYSû AMAG TRADE -OODYSûANDû3COPEûRATEDûTHEûDEALSûõMû CAPACITYû&IRMSûHAVEûTOûINVESTûINûAûSIGNIlCANTû OFû#LASSû!XûNOTESû!!n ûITSûõMûOFû#LASSû AMOUNTûOFûHUMANûCAPITALûANDûINFRASTRUCTUREû AMAG LEASINGûPRINTEDûTHEûlRSTû3WISSû!"3ûDEALû !YûNOTESû!!nûANDûõMûOFû#LASSû"ûNOTESû TOûKEEPûPROPERLYûABREASTûOFûTHEûLOANSûSTATUS OFûTHEûYEARûONû7EDNESDAY ûAû3&RMûTHREE "" û!ûõMû#LASSû*ûTRANCHEûISûUNRATED h4HEREûCOULDûBEûROOMûFORûMOREûSUCHûDEALSû YEARûTRADEûTHATûWASûPRICEDûWITHûAûûYIELD 7HILEûWAGEûGARNISHMENTûMAKESû BUTûSPECIlCûSKILLSûANDûDEDICATEDûTEAMSûAREû The originator landed the deal, SWISS CAR CASHmOWSûONûTHEûUNSECUREDûLOANSûMOREû USUALLYûREQUIREDûFORûTHEûSTRATEGY vûSAIDû ABS 2021-1ûSOMEûWAYûINSIDEûITSûLASTûTRADEûnûTHEû RELIABLE ûPROSPECTIVEûISSUERSûWILLûHAVEûTOûBEû ,ICHTENSZTEINûh-ONITORINGûACTIVITYûISû 3&RMûTHREE YEARû3WISSû#ARû!"3û û PATIENTûINûAMASSINGûCOLLATERALû4HEûPROCESSû PARTICULARLYûIMPORTANTûASûSOMEûEVENTSûMAYû DEALûTHATûWASûPRICEDûATûûINû3EPTEMBERû OFûOBTAININGûCOURTûORDERSûTHEMSELVESûCANûBEû INTERRUPTû/$!ûPAYMENTSû)NûTHOSEûCASES ûITûISû 4HATûWASûTHEûLASTû3WISSû!"3ûDEALûTOûPRINT û SLOWûANDûCOSTLY KEYûTOûENSUREûTHEû/$!ûISûPROMPTLYûRE ISSUED û ANDûHOPESûAREûTHATûFURTHERûTIGHTENINGûWILLû h!LLûRELATEDûLEGALûCOSTSûREQUIREDûFORûTHEû PREVENTINGûOTHERûCREDITORSûFROMûSTEPPINGûINû FOLLOWûTHISûYEARû)NITIALûPRICEûTHOUGHTSûHADû ISSUANCEûOFû/$!SûHADûALREADYûBEENûINCURREDû ANDûSUCCESSFULLYûGARNISHINGûTHEûBORROWERSû BEENûAûnûRANGE BEFOREûTHISûSECURITISATION ûRELEASINGûTHEû SALARYû7EûHAVEûDISCUSSEDûTHESEûSTRATEGIESû h7EûWEREûABLEûTOûPRICEûATûTHEûTIGHTûENDûOFû STRUCTUREûFROMûPAYINGûTHEM vûSAIDû0AULAû WITHûOTHERûSERVICERSûBUTûWEûHAVEûNOTûSEENûITû THEûRANGE ûIFûYOUûCOMPAREûITûTOûLASTûYEARû ,ICHTENSZTEIN ûAûSENIORûREPRESENTATIVEûOFû TAKEûONûASûAûWIDESPREADûSTRATEGYv ;WHEN=û3WISSû!"3ûDEALSûHADûTOûPRICEûWITHûATû 3COPESûSTRUCTUREDûlNANCEûTEAMûh4HEû/$!Sû "ANCAû)lSûISSUEDûTHEûVEHICLEûINûORDERûTOû LEASTûAûûYIELD vûSAIDû!LEXANDERû AREûALREADYûVALIDûANDûNOTûCHALLENGEABLE ûASû DIVERSIFYûITSûFUNDINGûRESOURCESû)TûISûRETAININGû 3CHNURRER ûlXEDûINCOMEûSYNDICATEûATûCredit THEûPERIODûFORûTHEûBORROWERSûTOûOBJECTûTOû THEûJUNIORûTRANCHESûASûWELLûASûûOFûEACHûSENIORû SuisseûnûSOLEûARRANGERûANDûSTRUCTURERûONûTHEû THEMûHASûALREADYûELAPSED TRANCHEû4HEûSENIORûNOTESûWILLûBEûADMITTEDûFORû DEAL h,OANSûWITHûWAGEûGARNISHMENTSûGENERATEû TRADINGûONû"ORSAû)TALIANASû%XTRA-/4ûANDû h#OMINGûAFTERûTHEû#OVID ûSHOCKûITûISû MODERATELYûREGULARûCASHmOWSûnûALBEITûWITHû RElNANCEDûINûTHEûINSTITUTIONALûINVESTORûMARKET POSITIVEûSHIFTûTHATû!"3ûISûNOWûGOINGûTIGHTERû RISKSûLIKEûUNEMPLOYMENTûANDûLIFEûEVENTSû 4HEû!XûANDû!YûNOTESûHAVEûûCOUPONSû AGAINû)TûISûVERYûGOODûNEWSû4HEREûWASûAûTIMEû THATûCOULDûINTERRUPTûPAYMENTSû4HISûFEATUREû OVERûSIX MONTHû%URIBORû4HEû#LASSû"ûNOTESû WHENûWEûPRICEDû!!!û!"3ûATûûYIELDSû7Eû DIFFERENTIATESûTHEûSECURITISEDûPORTFOLIOûFROMû HAVEûAûûCOUPONû4HEû*ûNOTESûHAVEûAûû AREûSLOWLYûTRYINGûTOûGOûBACKûTOûTHISûLEVELûBUTû AûSTANDARDûUNSECUREDû.0,ûPORTFOLIOv COUPONû ITûWILLûTAKEûSOMEûTIMEv

42 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 42 26/03/2021 20:23:13 STRUCTURED FINANCE

NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 26/3/2021 (CONTINUED) Issuer Amount (m) WAL Coupon (%) Bookrunner(s) Rating Asset type PROG 2021–SFR2 US$42.697 5.03 5.00 RBC CM/BofA/CS/DB/GS/MS NR/NR/NR ABS Pnmsr 2021–Ft1 US$350 4.99 1mUSL+300bp Citigroup/CS NR/NR/NR RMBS STAR 2021–1 US$293.414 2.13 1.21 CS NR/NR/AAA RMBS STAR 2021–1 US$14.575 2.13 1.37 CS NR/NR/AA RMBS STAR 2021–1 US$28.957 2.13 1.53 CS NR/NR/A RMBS STAR 2021–1 US$20.52 4.00 2.36 CS NR/NR/BBB RMBS STAR 2021–1 US$8.247 4.00 3.52 CS NR/NR/BB RMBS Swiss Car ABS 2021–1 AG SFr200 – 0.50 CS/ZKB NR/AAA/AAA ABS Taurus 2021–3 DEU DAC €227 3.70 3mE+12bp BofA Aaa/AAA/NR CMBS Taurus 2021–3 DEU DAC €85 3.70 3mE+180bp BofA Aa3/AA–/NR CMBS Taurus 2021–3 DEU DAC €57 3.70 3mE+260bp BofA A3/A–/NR CMBS Taurus 2021–3 DEU DAC €62 3.70 3mE+340bp BofA Baa3/BBB–/NR CMBS Taurus 2021–3 DEU DAC €59 3.70 3mE+475bp BofA Ba2/BB–/NR CMBS Taurus 2021–3 DEU DAC €22.981 3.70 3mE+600bp BofA B1/B/NR CMBS Tesla Auto Lease Trust 2021–A US$113 0.21 ILIBOR–1bp CS/Barclays/Citigroup/DB/Wells Fargo P–1/NR/NR ABS Tesla Auto Lease Trust 2021–A US$380 1.41 EDSF+15bp CS/Barclays/Citigroup/DB/Wells Fargo Aaa/NR/NR ABS Tesla Auto Lease Trust 2021–A US$248 2.41 ISWAPS+23bp CS/Barclays/Citigroup/DB/Wells Fargo Aaa/NR/NR ABS Tesla Auto Lease Trust 2021–A US$95.840 2.63 ISWAPS+29bp CS/Barclays/Citigroup/DB/Wells Fargo Aaa/NR/NR ABS Tesla Auto Lease Trust 2021–A US$82.790 2.65 ISWAPS+65bp CS/Barclays/Citigroup/DB/Wells Fargo Aa2/NR/NR ABS Tesla Auto Lease Trust 2021–A US$65.060 2.75 ISWAPS+80bp CS/Barclays/Citigroup/DB/Wells Fargo A2/NR/NR ABS Tesla Auto Lease Trust 2021–A US$48.490 2.81 ISWAPS+95bp CS/Barclays/Citigroup/DB/Wells Fargo Baa2/NR/NR ABS Tesla Auto Lease Trust 2021–A US$43.180 2.84 ISWAPS+225bp CS/Barclays/Citigroup/DB/Wells Fargo Ba2/NR/NR ABS TMCL 2021–2 US$605.200 5.37 2.23 BofA NR/A/NR ABS TMCL 2021–2 US$46 5.37 2.82 BofA NR/BBB/NR ABS TRTX 2021–FL4 US$671.875 3.18 USL+120bp Wells Fargo/Barclays/BofA/GS/JP Morgan/MS Aaa/NR/NR CMBS TRTX 2021–FL4 US$114.062 3.77 USL+140bp Wells Fargo/Barclays/BofA/GS/JP Morgan/MS NR/NR/NR CMBS TRTX 2021–FL4 US$75 3.79 USL+185bp Wells Fargo/Barclays/BofA/GS/JP Morgan/MS NR/NR/NR CMBS TRTX 2021–FL4 US$81.250 4.01 USL+240bp Wells Fargo/Barclays/BofA/GS/JP Morgan/MS NR/NR/NR CMBS TRTX 2021–FL4 US$70.313 4.33 USL+360bp Wells Fargo/Barclays/BofA/GS/JP Morgan/MS NR/NR/NR CMBS TRTX 2021–FL4 US$25 4.46 USL+435bp Wells Fargo/Barclays/BofA/GS/JP Morgan/MS NR/NR/NR CMBS TRTX 2021–FL4 US$65.625 4.65 – Wells Fargo/Barclays/BofA/GS/JP Morgan/MS NR/NR/NR CMBS TRTX 2021–FL4 US$34.375 4.79 – Wells Fargo/Barclays/BofA/GS/JP Morgan/MS NR/NR/NR CMBS

'IVENûAûVERYûLIMITEDûSECONDARYûMARKET û ANDûINSURANCEûCOMPANIESû-OSTûPENSIONû COMPARABLESûWEREûTAKENûFROMûTHEûNEWû FUNDSûHAVEûTOûBOOKû!"3ûASûANûALTERNATIVEû EMEA CLO ISSUESûMARKETû4HATûINCLUDEDû&IRSTû3WISSû INVESTMENT ûSOûCOMPAREDûTOûPRIVATEûEQUITYû -OBILITY û3WISSû!UTOû,EASEûANDû3WISSû#REDITû FORûEXAMPLEûITûDOESNTûOFFERûASûMUCHûYIELD CLOs PAUSE SLIGHTLY BUT PIPELINE BUILDS #ARDûPAPER h4HEREûISûNOTûAûLOTûOFûTRADINGûINû!"3û 3WISSû#REDITû#ARDû)SSUANCEû ûnûPRICEDû PRODUCTûSOûITûISûPROBABLYûBETTERûASûAûHOLDûTOû 4HEûRELENTLESSûPACEûOFûDEALûmOWûINûTHEû INû-AYûLASTûYEARûnûPRINTEDûWITHûAûû MATURITYûINVESTMENTv %UROPEANû#,/ûMARKETûHASûLETûUPûSLIGHTLY ûAû YIELD Zürcher KantonalbankûWASûJOINTûLEADû MOVEûTHATûMARKETûPARTICIPANTSûMAINLYû 3WISSû#ARû!"3û ûISûBACKEDûBYûAUTOû MANAGERûONûTHEûDEAL ûWITHû#REDITû3UISSEû ATTRIBUTEûTOûINVESTORûCAPACITY LOANûRECEIVABLESûANDûTHEûPOOLûINCLUDESû RESIDUALûVALUEûRISK GLOBAL SECURITISATIONS IN STERLING SECURITISATIONS – ALL EUROPEAN RMBS h$URINGûTHEûBEGINNINGûOFû#OVIDûNOûONEû BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE KNEWûWHATûTHEûIMPACTûWOULDûBEûONûAUTOû Managing No of Total Share Managing No of Total Share LEASES vûSAIDû3CHNURRERûh"UTûTHEûNUMBERSû bank or group issues £(m) (%) bank or group issues €(m) (%) HAVEûBEENûPRETTYûSTABLEûSOûTHEREûDOESûNOTû 1 Citigroup 6 3,763.21 38.6 1 Citigroup 6 4,669.31 37.7 SEEMûTOûHAVEûBEENûTOOûMUCHûOFûANûIMPACTû 2 Bank of America 4 1,375.07 14.1 2 Barclays 5 1,513.05 12.2 POST #OVIDv 3 BNP Paribas 5 1,243.03 12.8 3 Bank of America 2 1,315.29 10.6 !SSETûMANAGERSûTOOKûûOFûTHEûDEAL û 4 Barclays 5 1,196.87 12.3 4 BNP Paribas 4 1,248.86 10.1 INSURANCEûCOMPANIESûûANDûPENSIONû 5 NAB 3 399.73 4.1 5 NAB 3 455.57 3.7 FUNDSûû!LLûORDERSûWEREûFROMû3WISSû 6 Santander 3 395.23 4.1 6 Coop Rabobank 2 445.06 3.6 ACCOUNTS ûWITHûûINVESTORSûTAKINGû 7 Standard Chartered 2 247.12 2.5 7 Natixis 3 423.72 3.4 ALLOCATIONSû 8 Lloyds Bank 2 240.61 2.5 8 Morgan Stanley 1 396.94 3.2 h)TûISûINûTHEû3)8û3")ûINû3WITZERLAND ûSOû 9 NatWest Markets 2 204.48 2.1 9 Lloyds Bank 2 359.72 2.9 MANYûINVESTORSûINûTHATûINDEXûAREûALSOû!"3û 10 JP Morgan 1 175.00 1.8 10 Standard Chartered 2 282.39 2.3 INVESTORS ûALTHOUGHûWEûHAVEûSOMEûACCOUNTSû Total 16 9,739.39 Total 17 12,395.90 FOCUSEDûONû!"3 vûSAIDû3CHNURRERûh4HEû Including Euro, foreign, global and domestics, excluding CDOs. Including Euro, foreign, global and domestics, excluding CDOs MAJORITYûOFûTHEûDEALûWENTûTOûASSETûMANAGERSû Source: Refinitiv SDC code: B16i Source: Refinitiv SDC code: B10a

International Financing Review March 27 2021 43

5 IFR Bonds 2376 p21-58.indd 43 26/03/2021 20:23:13 !ûlRSTûQUARTERûOFûHEALTHYûNEWûISSUANCEûANDû America, Credit Suisse, Deutsche Bank, Goldman h)FûISSUANCEûSTAYSûHEAVY ûYOUûAREûGOINGûTOû HECTICûRElNANCINGûANDûRESETûACTIVITYûHASû Sachs and Morgan Stanley SEEûSPREADSûBUBBLEûUPûAûBITû7EûHAVEûSEENû GIVENûWAYûTOûSOMEûWIDENINGû4HISûHASûMAINLYû 0RICEûTALKûONûTHEû0ROGRESSûDEALûSUGGESTEDûAû SOMEûFRONT ENDûSELLINGû4HATûCOULDûDRIVEûALLû TAKENûPLACEûINûVEHICLESûMEZZANINEûTRANCHESû LOOSENINGûOFûSPREADSûFROMûTHEIRûALL TIMEû SPREADSûWIDER vûSAIDû0HILû!RMSTRONG ûSENIORû /NEûBANKERûATTRIBUTEDûTHISûTOûMANAGERSû TIGHTSûEARLIERûTHISûYEARûINûTHEûWAKEûOFûTHEû PORTFOLIOûMANAGERûATû)NVESCO WILLINGNESSûTOûPAYûSOMEûEXTRAûSPREADûONû broad bond market rout in late February due 7HILEûMANYûTOP NOTCHûISSUERSûCONTINUEû THESEûTRANCHESûINûORDERûTOûCLINCHûTHEûRElûONû TOûINmATIONûFEARS ûACCORDINGûTOû"ANKûOFû to see their deals upsized, the magnitude LARGERû4RIPLEû!ûNOTESû7ITHûINVESTORSûSNOWEDû !MERICA OFûORDERSûHASûABATEDûFROMûTHEûFERVENTû UNDERûWITHûDEALûmOW ûAûPREMIUMûONûMEZZû 4HEû53Mû4RIPLEû!ûRATEDû#LASSû!û LEVELSûATûTHEûSTARTûOFûTHEûYEAR ûMARKETû CANûBEûNECESSARYûTOûSTANDûOUTûFROMûTHEûRESTûOFû TRANCHEûWITHûAûWEIGHTEDûAVERAGEûLIFEûOFû PARTICIPANTSûSAIDû4HEREûHAVEûBEENûAûFEWû THEûRElRESETûWAVE ûHEûADDED YEARûCLEAREDûATûBPûOVERûSWAPS ûWHICHûWASû INSTANCESûWHEREûSPREADSûHAVEûWIDENEDû -ARKETûPARTICIPANTSûDONTûEXPECTûTHEû ATûTHEûTIGHTûENDûOFûGUIDANCEûOFûBPnBPû)Tû FROMûINITIALûPRICEûTALK SLIGHTûLULLûTHISûWEEKûTOûLASTûTOOûLONGû"ANKûOFû WASûWIDERûTHANûTHEûlNALûSPREADûOFûBPûONû h7EûHAVEûHADûAûLOTûOFûSUPPLYû7EûHADû !MERICAûANALYSTSûCOUNTEDûABOUTûûDEALSû THEû53Mû#LASSû!ûNOTEûINû0ROGRESSû seen some indigestion in some areas,” said EXPLORINGûRElNANCINGSûINûAû-ARCHûûNOTE PRIORûDEALûPRICEDûONû&EBRUARYû ûPROG 2021- *ASONû#ALLAN ûHEADûOFûSTRUCTUREDûASSETSûATû $EMANDûFORûSENIORûNOTESûCOULDûBEûBUOYEDû SFR1 #OLUMBIAû4HREADNEEDLE INû!PRIL ûWHENû*APANESEûlRMSûlNANCIALûYEARû h4HEû3&2ûPRIMARYûMARKETûSHOWEDû %VENûTESLAûLASTûWEEKûENDEDûUPûLOOSENINGû RENEWSû-ARKETûCHATTERûISûTHATûNEWû*APANESEû RESILIENCYûTHROUGHû#OVIDûAFTERûREMAININGû THEûSPREADûONûAûTRANCHEûINûITSû53BNû INVESTORSûAREûLOOKINGûATûENTERINGûTHEû DORMANTûINû!PRILûûBUTûTIGHTENINGûFROMû PRIMEûAUTOûLEASEûSECURITISATION ûTESLA 2021-A, MARKET ûSAIDûONEûINVESTORû -AYûûUNTILûTHEûRECENTûMACROûVOLATILITYûATû WHICHûWASûLEDûBYûCredit Suisse, Barclays, #,/ûPRIMARYûmOWûISûSTILLûGOINGûTHOUGH ûFORû THEûENDûOFû&EBRUARYûCAUSEûSOMEûWIDENINGûINû Citigroup, Deutsche Bank and Wells Fargoû INSTANCE ûALBACORE CAPITAL and ANGELO GORDON THEûSECTOR vû"ANKûOFû!MERICAûANALYSTSûWROTEû 'UIDANCEûONûAû53Mû"AûRATEDûNOTEû AREûBOTHûMARKETINGûDEALS ûACCORDINGûTOû INûAûRECENTûRESEARCHûNOTE ISSUEûWASûWIDENEDûBYûBPûFROMû)04SûTOû MARKETûSOURCES 3&2ûPAPERûHASûFAREDûRELATIVELYûBETTERûTHANû SWAPSûPLUSûBPnBPû)TûWASûPRICEDûATû /Nû&RIDAY ûBLACKSTONE IRELANDûPRICEDûAû SOMEûRISKIERûPARTSûOFûTHEû2-"3ûMARKETûSUCHû BPûFORûAûYIELDûOFû õMûRESETûOFûELM PARK CLOûVIAûDeutsche ASûCREDITûRISKûTRANSFERûDEALSû-OREOVER û3&2û 4OûBEûSURE ûTHEûSTALLINGûOFûFURTHERûSPREADû Bankû4HEûDEALSûõMûOFû! ûNOTESûANDûAû ISSUESûHAVEûPERFORMEDûWELLûSINCEûTHEû COMPRESSIONûCANûPARTLYûBEûBLAMEDûONûTHEû õMû! ûLOANûWEREûPRICEDûWITHûBPû PANDEMICûASûRENTALûCOLLECTIONûHASûREMAINEDû bond market rout in late February as DISCOUNTûMARGINSû4HEûVEHICLESû RESILIENTûANDûDELINQUENCYûHASûSTAYEDû TRADERSûANDûINVESTORSûFRETTEDûOVERûAûSURGEû REINVESTMENTûPERIODûENDSûINû/CTOBERûû RELATIVELYûMUTED ûANALYSTSûSAID INûINmATIONûFROMûAû53TRNûPACKAGEûTHATû ANDûITSûNON CALLûINû/CTOBERûû 3&2ûBONDSûhHAVENTûSEENûTHEûSAMEûKINDûOFû WILLûSPURûFEDERALûBORROWINGûTOûFUNDûAIDûFORû /Nû4UESDAY ûJefferies PRICEDûAûRElNANCINGû WEAKNESSvûASûOTHERûHOUSING RELATEDû WORKERSûANDûBUSINESSESûTHATûHAVEû OFûCVC CREDIT PARTNERS EUROPEAN CLO SECURITISATIONSûAFTERûLASTûMONTHSûSELL OFF û STRUGGLEDûDUEûTOûTHEûPANDEMICû MANAGEMENT’s CVC CORDATUS LOAN FUND XII SAIDû3TEVEû,A0LANTE ûSENIORûANALYSTûATû,OOMISû 3TILLû!"3ûSPREADSûAMONGûTOP TIER ûLIQUIDû 4HEûVEHICLEûWASûRElNANCEDûWITHûõMûOFû 3AYLES SECTORSûSUCHûASûPRIMEûAUTOûANDûCREDITûCARDSû #LASSû! ûNOTESûATûAûBPûDISCOUNTûMARGINû &OLLOWINGûLASTûYEARSûRECORDûISSUANCEûATû REMAINûWITHINûSTRIKINGûDISTANCEûOFûTHEûALL )TSûREINVESTMENTûPERIODûENDSûINû*ULYûû ABOUTû53BN û3&2ûSUPPLYûHASûBEENûONûAû TIMEûTIGHTSûSETûEARLIERûTHISûYEARûASûCREDITû ANDûITSûNON CALLûINû!PRILûû MODESTûPACEûWITHûTHREEûDEALSûRAISINGû CONDITIONSûREMAINûWELLûSUPPORTEDûBYûANû 53BNûSINCEû*ANUARY ûINCLUDINGû IMPROVINGûECONOMYûANDûMOREû 4UESDAYSû0ROGRESSû2ESIDENTIALûTRANSACTION û GOVERNMENTûASSISTANCEûTOûAIDûWORKERSûANDû US MBS )&2ûDATAûSHOW BUSINESSESûTHATûHAVEûBEENûSTRUGGLINGûDUEû "ANKûOFû!MERICAûANALYSTSûFORECASTû3&2û TOûTHEûPANDEMIC PROGRESS RESIDENTIAL SECURITISES SUPPLYûTOûACCELERATE ûTOTALLINGû53BNûFORû h2IGHTûNOWûWEûAREûHITTINGûFAVOURABLEû FRONT YARD RENTALS THEûYEAR SEASONALSûFORûCONSUMERû!"3ûWITHûTAXû REFUNDS ûTHENûYOUûLAYERûSTIMULUSûONûTOPû PROGRESS RESIDENTIALûLASTû4UESDAYûPRICEDûITSû THATû/VERûTHEûFEWûMONTHS ûWEûSHOULDûSEEû lRSTûSECURITISATIONûBACKEDûBYûSINGLE FAMILYû US ABS RENTALûPROPERTIESûACQUIREDûASûPARTûOFûAû US ABS WEEKLY ISSUANCE US ABS SUPPLY REBOUND STALLS 53BNûJOINTûVENTUREûBETWEENûITSûPARENTû US$bn 0RETIUMû0ARTNERSûANDû!RESû-ANAGEMENTûLASTû SPREAD COMPRESSION 10

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4HEûPURCHASEûOFû&RONTû9ARDû2ESIDENTIALû 4HEûRECENTûACCELERATIONûINû53û!"3ûISSUANCEû 8 #ORPORATION ûWHICHûWASûCOMPLETEDûINû HASûSLOWEDûTHEûSECTORSûSPREADûCOMPRESSIONû 7 *ANUARY ûMADEû0RETIUMûONEûOFûTHEûBIGGESTû53û ONûFRESHûPAPERûANDûWIDENEDûSECONDARYû 6 CORPORATEû3&2ûLANDLORDSûWITHûMOREûTHANû SPREADSûFROMûHISTORICûTIGHTûLEVELS 5 ûSINGLE FAMILYûRENTALSû"LACKSTONESû 9EAR TO DATEû!"3ûISSUANCEûTHROUGHûTOû )NVITATIONû(OMESûISûTHEûBIGGESTûWITHûSOMEû -ARCHûûHASûREACHEDû53BN ûUPûû 4 ûRENTALûHOMES FROMûTHEûSAMEûPERIODûAûYEARûEARLIER û 3 0ROGRESSSûSECONDûDEALûOFû ûTHEû ACCORDINGûTOû)&2ûDATA 2 53MûPROGRESS RESIDENTIAL 2021-SFR2 4HISûBOUNCEûHASûLEDûTOûINCREASEDûSELLINGûINû 1 TRUSTû ûISûBACKEDûBYû ûOFû&RONTû9ARDSû THEûSECONDARYûMARKETûASûINVESTORSûMAKEû 0 ûRENTALS ûACCORDINGûTOû$"23û ROOMûFORûNEWûPAPER ûWEIGHINGûONûTIGHTû -ORNINGSTAR SPREADSûANDûCAUSINGûDEALERSû!"3ûINVENTORYû 15/01/21 12/03/21 29/01/21 22/01/21 12/02/21 19/02/21 26/02/21 05/03/21 05/02/21 RBC CapitalûSTRUCTUREDû02/'û 3&2û TOûSWELLûTOûAûlVE MONTHûPEAKûINûEARLYû-ARCH û 19/03/201 ANDûWASûAûJOINTûBOOKRUNNERûWITHûBank of &EDERALû2ESERVEûDATAûSHOW Source: IFR

44 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 44 26/03/2021 20:23:15 STRUCTURED FINANCE

SEQUENTIALûIMPROVEMENTûINûCONSUMERû 4HEû53Mûh"vûTRANCHEûWITHûAû!Aû h4HEûNEWûTRANSACTIONûSTRUCTUREûISûAû CREDITS vû$EUTSCHEû"ANKûSENIORû!"3ûANALYSTû RATINGûANDûAûûYEARû7!,ûMANAGEDûTOû HYBRIDûBETWEENûAûSEQUENTIALûANDûPRO RATAû +AYVANû$AROUIANûSAID PRICEDûATûBPûOVERûSWAPSûAFTERûITSû STRUCTURE ûOFFERINGûAûCERTAINûLEVELûOFûDE 4HISûALSOûMEANSûANYûWIDENINGûINû!"3û GUIDANCEûWASûPULLEDûOUTûTOûBPnBPû LEVERAGING ûWHILEûALSOûOFFERINGûAûMOREû SPREADSûISûLIKELYûTOûBEûLIMITED û"ANKûOFû FROMû)04SûOFûBPnBP EFlCIENTûDEBTûlNANCING vûAûSOURCEûFAMILIARû !MERICAûANALYSTSûSAID 4HEû"ûNOTEûhWASûAûLITTLEûSTUCKûINûNOû WITHûTHEûDEALûSAID h)NDEED ûWIDERûSPREADSûANDûINCREASEDû MANSûLANDûWITHûTHEûYIELDû)TûKINDûOFûENDEDû 4HISûPAYMENTûSCHEMEûSHORTENEDûTHEû VOLATILITYû;ARE=ûEXPECTEDûFORûTHEûBROADERû UPûINûTHEûMIDDLEv ûTHEûlRSTûSOURCEûSAID û WEIGHTEDûAVERAGEûLIVESûOFûTHEû4RIPLEû"ûRATEDû SECURITISATIONûMARKETSû%VENûSO ûTHEûRELATIVEû ADDINGûITûlNISHEDûTHREEûTIMESûBOOKûTOû CLASSû$ûANDûUNRATEDû%ûANDû&ûCLASSESûBYû @SAFEûHAVENûSTATUSûFORûBENCHMARKû!"3ûLIKELYû COVER ûYEAR ûMEANINGûTHESEûNOTEHOLDERSûCOULDû MEANSûSPREADûWIDENINGûSHOULDûBEûRELATIVELYû Credit SuisseûWASûLEFTûLEADûFORûTHEûELECTRICû BEûREPAIDûFASTERûDEPENDINGûONûHOWûTHEû CONTAINED vûTHEYûWROTEûINûAûRESEARCHûNOTEû CARûMAKERSû!"3 ûWHILEûBarclays, Citigroup, LOANSûPERFORM ûTHEûSOURCEûSAID LASTû&RIDAY Deutsche Bank and Wells FargoûWEREûTHEûOTHERû 4HISûCHANGEûDREWûSTRONGûDEMANDûFORûTHEû &ORûEXAMPLE ûAVERAGEûSECONDARYûSPREADSû JOINTûLEADûUNDERWRITERS THREEûSUBORDINATEûTRANCHESûASûTHEIRû ONû4RIPLEû! RATEDûTHREE YEARûPRIMEûAUTOû!"3û 4HEû0ALOû!LTO û#ALIFORNIA BASEDûCOMPANYû SPREADSûCAMEûINûATûTHEûTIGHTûENDûTOûWELLû AREûRUNNINGûATûSWAPSûPLUSûBP ûWHICHûAREû LASTûTAPPEDûTHEû!"3ûMARKETûWITHûTHEû INSIDEûGUIDANCEû&ORûEXAMPLE ûTHEû&ûCLASSû ONLYûAûTADûWIDERûTHANûTHEIRûRECENTûTIGHTûOFû 53MûTESLA 2020-AûONû*ULYûûLASTûYEAR û CLEAREDûATûBPûOVERûSWAPSûVERSUSûAû BP ûACCORDINGûTOû*0û-ORGANûDATA )&2ûDATAûSHOW GUIDANCEûOFûBPnBP /NûTHEûOTHERûHAND ûTHEûPAYMENTûCHANGEû TESLA AUTO ABS POSTS RECORD LOW CARVANA ADOPTS HYBRID PAY RESULTEDûINûWIDERûSPREADSûONûTHEû4RIPLEû!û FUNDING COST STRUCTURE IN AUTO ABS RATEDûCLASSû!ûANDû$OUBLEû!ûRATEDûCLASSû"û NOTESûTHANûGUIDANCEû4HEûCLASSû"ûNOTESû TESLASûlRSTûPRIMEûAUTOûLEASEû!"3ûOFûTHEûYEARû CARVANAûRECONlGUREDûTHEûPAYMENTûSCHEMEû RECORDEDûTHEûMOSTûSEVEREûWIDENING û POSTEDûAûSOLIDûlNISHûWITHûINVESTORSû ONûITSûSECONDûNEAR PRIMEûAUTOû PRICINGûATûBPûOVERû%$3&ûFROMûGUIDANCEû FOLLOWINGûAûSLOWûSTART ûCLINCHINGûITSûLOWESTû SECURITISATION ûRAISINGûTHEûAPPEALûOFûTHEû OFûBPnBP EVERûFUNDINGûCOSTûINûTHEûSECURITISATIONû SUBORDINATEûPORTIONûOFûTHEûOFFERINGûTOû h!LLûTHINGSûBEINGûEQUAL ûITûFAVOURSûTHEû MARKET INVESTORSûINûANûEFFORTûTOûSCOREûMOREû SUBûBONDSûWHENûCOMPAREDûTOûTHEûLASTû 4HEûAVERAGEûWEIGHTEDûALL INûCOUPONûCAMEû EFlCIENTûlNANCING DEAL vûONEûFUNDûMANAGERûSAIDûh4HEû"Sû INûATûûFORûTHEû53 MûTESLA AUTO 4HEûONLINEûUSEDûCARûRETAILERûADOPTEDûAû WOULDûBEûMOSTûEFFECTEDûBYûTHISûCHANGEûINû LEASE TRUST 2021-A ûACCORDINGûTOûONEûSOURCEû HYBRIDûAMORTISATIONûSTRUCTUREûFORûITSû STRUCTUREv FAMILIARûWITHûTHEûDEAL 53MûCARVANA AUTO RECEIVABLES TRUST 4HEREûWASûSOMEûEARLYûTREPIDATIONûTHATû 2021-N1 ûWHICHûPRICEDûONû-ARCHûûANDûWASû ALL EUROMARKET CDOs EVENû4ESLASûNAMEûANDûTOP NOTCHûCOLLATERALû led by Citigroup, Credit Suisse and Wells BOOKRUNNERS: 1/1/2021 TO DATE MIGHTûNOTûDRAWûTHEûSTRONGûDEMANDûTHEYû Fargo Securities. Managing No of Total Share TYPICALLYûHADûINûPASTûDEALSû/RDERSûFORûSOMEû 4HEûISSUESûSEQUENTIALPRO RATAûSTRUCTUREû bank or group issues US$(m) (%) RECENTûASSET BACKEDûISSUESûHAVEûRETREATEDû WILLûPAYûPRINCIPALûSEQUENTIALLYûTOûTHEûMOSTû 1 Barclays 6 2,332.20 29.0 FROMûTHEûBLISTERINGûLEVELSûSETûEARLIERûTHISû SENIORûCLASSûUNTILûITûREACHESûAûTARGETû 2 Goldman Sachs 3 1,184.94 14.7 YEAR BALANCE ûATûWHICHûPOINTûSOMEûORûALLûOFûTHEû 3 Deutsche Bank 3 1,055.63 13.1 “The market has been soggier the past SUBORDINATEûCLASSESûMAYûBEûPAIDûPRO RATAû 4 Jefferies 3 892.84 11.1 TWOûWEEKS ûANDû)ûWASûWORRIEDûTHISûWASûGOINGû WITHûTHEûMOSTûSENIORûCLASSûTOûTHEûEXTENTûOFû 5 Wells Fargo 1 639.46 7.9 TOûSUFFERûTHEûSAMEûFATE vûAûSECONDûSOURCEû AVAILABLEûFUNDS ûACCORDINGûTOû30 6 JP Morgan 2 637.71 7.9 FAMILIARûWITHûTHEûDEALûSAID #ARVANASûlRSTûNEAR PRIMEûTRANSACTION û 7 Morgan Stanley 2 543.07 6.7 "UTûTHOSEûCONCERNSûFADEDûASûBANKERSû THEû53MûCRVNA 2020-N1 ûWHICHûWASûSOLDû 8 Credit Suisse 1 453.89 5.6 ENDEDûUPûWITHûûUNIQUEûBUYERSûFORûTHEû AûYEARûEARLIER ûFEATURESûAûMOREû 9 Citigroup 1 311.94 3.9 TRANSACTIONSûEIGHTûCLASSES ûWHICHûFETCHEDû STRAIGHTFORWARDûSEQUENTIALûSTRUCTUREûINû Total 20 8,051.67

ANYWHEREûFROMûTWOûTOû ûTIMESû WHICHûTHEûMOSTûSENIORûANDûCHEAPEST COSTû Excludes global and domestic. OVERSUBSCRIBED ûACCORDINGûTOûSOURCESû NOTEûISûREPAIDûlRST Source: Refinitiv SDC code: J11 FAMILIARûWITHûTHEûDEAL GLOBAL STRUCTURED FINANCE IN US$ STRUCTURED FINANCE – ALL INTL ISSUERS 4HEû53MûMONEYûMARKETûTRANCHEûWASû BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE THEûMOSTûHEAVILYûOVERSUBSCRIBEDûDURINGûTHEû EARLYûSTAGEûOFûMARKETINGûWITHûTHEûBOOKSû Managing No of Total Share Managing No of Total Share bank or group issues US$(m) (%) bank or group issues US$(m) (%) MOREûTHANûTWO AND HALFûTIMESûCOVERED ûAû 1 Credit Suisse 66 26,397.87 14.3 1 Credit Suisse 45 11,141.21 12.6 BUYSIDEûSOURCEûSAIDû 2 Wells Fargo 48 19,605.77 10.6 2 Citigroup 27 9,664.00 10.9 )TûCLEAREDûATûBPûBELOWû,IBOR ûWHICHûWASû 3 JP Morgan 46 19,536.77 10.6 3 Barclays 32 8,837.09 10.0 INSIDEûINITIALûPRICEûTHOUGHTSûINûTHEûBP AREAû 4 Bank of America 42 15,683.13 8.5 4 Bank of America 24 7,412.41 8.4 PREMIUMûANDûTHEûBPûPREMIUMûONûTHEûSAMEû 5 Citigroup 43 14,414.14 7.8 5 Goldman Sachs 28 6,256.89 7.1 TRANCHEûINûTHEûPREVIOUSûDEALû 6 Morgan Stanley 31 14,140.49 7.7 6 JP Morgan 21 5,103.48 5.8 4HISûh! vûCLASSûWASûEXPECTEDûTOûRECEIVEûAû 7 Goldman Sachs 50 13,217.42 7.2 7 Deutsche Bank 28 4,929.03 5.6 0 ûRATINGûFROMû-OODYSûANDûTOûCARRYûANû 8 Barclays 39 10,069.90 5.5 8 Wells Fargo 18 4,505.85 5.1 EXPECTEDûWEIGHTEDûAVERAGEûLIFEûOFûûYEAR 9 Deutsche Bank 40 8,543.93 4.6 9 BNP Paribas 14 3,808.31 4.3 4HEûLARGESTûCLASS ûAû53MûCLASSûh! vû 10 Nomura 21 5,049.73 2.7 10 Morgan Stanley 14 2,885.54 3.3 NOTEûWITHûAû!AAûRATINGûANDûûYEARû7!, û Total 274 184,510.52 Total 148 88,448.63 CLEAREDûATûBPûOVERû%$3& ûWHICHûWASûINSIDEû Including securitisations (Euro, foreign, global and domestics, excluding Includes securitisations, PFI bonds, self-funded issues and credit-linked )04SûINûTHEûHIGHûTEENSûTOûûANDûGUIDANCEûATû CDOs) and PFI bonds. notes. Excludes US global ABS/MBS and CDOs. BPnBP Source: Refinitiv SDC code: B16b Source: Refinitiv SDC code: J10c

International Financing Review March 27 2021 45

5 IFR Bonds 2376 p21-58.indd 45 26/03/2021 20:23:15 3TILL ûTHEûCLASSû!ûANDû"ûNOTESûDREWûAMPLEû 4HEûPRIVATELYûHELDûCOMPANY ûWHICHûWASû PRECIPITOUSLY ûWHICHûMAYûIMPACTûTRANSACTIONû ORDERSûFROMûINVESTORSûWHOûWANTûWIDERû FOUNDEDûINû ûMANDATEDûBarclays and CASHmOWSûANDORûTHEûlNANCIALûPERFORMANCEû spreads on high-rated auto paper, said Credit SuisseûASûJOINTûBOOKûMANAGERSûFORûBREX OFûTHEûSERVICER vû+ROLLûANALYSTSûWROTE ANOTHERûSOURCEûFAMILIARûWITHûTHEûDEAL COMMERCIAL CHARGE CARD MASTER TRUST 2021-1 4HEûlNTECHSû!"3ûDEBUTûCOMESûATûAûTIMEû 4HISûWASûTHEûSECONDûDEALûINûASûMANYû FORûEXPECTEDûPRICINGûLASTû&RIDAY WHENûTHEREûHASûBEENûSCARCEûCREDITûCARDû DAYSûWHEREû#ARVANAûHASûADJUSTEDûTHEû 4HEûDEALûFEATURESûTWOûCLASSESûOFûNOTESû ISSUANCEûSINCEû ûSOûDEMANDûHASûBEENû STRUCTUREûCOMPAREDûWITHûPRIORûISSUESû)Tû WITHûEXPECTEDûWEIGHTEDûAVERAGEûLIVESûOFû BRISKû%ARLIERûTHISûMONTH ûMERCURY FINANCIAL LOWEREDûTHEûCREDITûENHANCEMENTûONûITSû YEARSû53MûOFû#LASSû!ûNOTESûANDû CORPORATIONûSTAGEDûAûSTRONGûPUBLICû 53MûPRIMEûAUTOûOFFERING ûCRVNA 2021- Aû53MûOFû#LASSû"ûNOTESû+ROLLûISû TRANSACTION ûMERCURY FINANCIAL CREDIT CARD P1 ûWHICHûPRICEDûLASTû4HURSDAY ûCOMPAREDû EXPECTEDûTOûASSIGNûANû!ûRATINGûTOûTHEû!û MASTER TRUST 2021-1 ûWHICHûWASûUPSIZEDûTOû WITHûTHEûLEVELûOFFEREDûONûITSûINAUGURALû NOTESûANDûAû"ûRATINGûTOûTHEû"ûNOTES 53MûFROMû53M PRIMEûDEALû53MûCRVNA 2020-P1 'UIDANCEûONûTHEû!ûNOTESûWASûBPn 3INCEûTHEûSTARTûOFû*ANUARY ûAûLITTLEûOVERû 3PREADSûONûSOMEûTRANCHESûCLEAREDû BPûOVERû%$3& ûANDûTHEûTRANCHEûWASû 53BNûINûCREDITûCARDûSUPPLYûEXCLUDINGûTHEû SEVERALûBASISûPOINTSûWIDEûOFûGUIDANCE ûBUTû ABOUTûTHREEûTIMESûOVERSUBSCRIBEDûLASTû "REXûISSUEûHASûBEENûPRICED ûWHICHûISûLESSû MARKETûPARTICIPANTSûBLAMEDûTHEûWIDERû 4HURSDAYûAHEADûOFûPRICING ûWHILEûTHEû"û THANûHALFûOFûTHEû53BNûSOLDûOVERûTHEûSAMEû SPREADSûONûTHEûWEEKSûHEAVYû!"3ûSUPPLY û NOTEûTRANCHEûWASûPRE PLACED ûACCORDINGûTOû PERIODûAûYEARûEARLIER û)&2ûDATAûSHOW NOTûTHEûCHANGEûINûCREDITûENHANCEMENT AûSOURCEûFAMILIARûWITHûTHEûDEAL #ARVANASû!"3ûDEALSûCOMEûASûITûISû 4HEûSPREADûONûTHEû!ûNOTESûISûWIDERûTHANû expanding its business amid strong auto TYPICALûCREDITûCARDûPAPERûASûhSOMEû ASIA-PACIFIC MBS DEMAND ûTHOUGHûTHEûCOMPANYûHASûNOTûYETû INVESTORSûVIEWûITû;THEûCOLLATERAL=ûASûAûNEWû TURNEDûAûPROlTû,ASTûYEAR ûITûINKEDûSALEûANDû ASSETûSOûTHEûBARûISûAûBITûHIGHER vûTHEûSOURCEû LIBERTY SETS SENIOR GUIDANCE LEASEBACKûAGREEMENTSûWITHûINVESTORSûTOû SAIDûh4HEYûLOOKûATûTHEûDEALûASûCORPORATEû FUNDûFOURûNEWûRECONDITIONINGûCENTRESû COMMERCIALûRISK ûNOTûCONSUMERûRISKvû LIBERTY FINANCIALûISûOUTûWITHûGUIDANCEûFORû WHEREûITûCONDUCTSûREPAIRS ûCERTIlESûANDû 4HEûLENDERûSETSûCREDITûLIMITSûBASEDûONû THREEûSENIORûTRANCHESûOFûTHEûCAPPEDû!BNû PHOTOGRAPHSûVEHICLES THEûBUSINESSSûAVAILABLEûCASHûBALANCEûANDû LIBERTY PRIME SERIES 2021–1û2-"3ûOFFERING ûDUEû -EANWHILE û#ARVANASûCHIEFûEXECUTIVEû REQUIRESûCUSTOMERSûTOûREPAYûTHEûBALANCEûINû TOûBEûPRICEDûTHISûWEEK OFlCERû%RNIEû'ARCIAûTOLDûANALYSTSûLASTû FULLûEACHûMONTH ûACCORDINGûTOûAû+ROLLûPRE NAB ISûARRANGERûANDûJOINTûLEADûMANAGERû MONTHûTHATûTHEûRECENTûSPIKEûINûBONDûYIELDSû SALEûREPORT WITHûBank of America, CBA, Deutsche Bank and WOULDûNOTûHAVEûAûMATERIALûIMPACTûONûITSû "REXûPLANSûTOûUSEûTHEûPROCEEDSûFROMûTHEû Westpac FUNDINGûCOSTSû !"3ûSALEûTOûREPAYûONEûOFûTHEûTWOûASSET 0RICEûTALKûFORûTHEû!MûOFû#LASSû!û h)ûDOûTHINKûINûAûLOWERINGûRATEû BACKEDûLENDINGûFACILITIESûTHATûFUNDûTHEIRû NOTESûWITHûûCREDITûSUPPORTûANDûAû YEARû ENVIRONMENT ûSOMETIMESûTHOSEûMARGINSû CARDûACCOUNTSû4HESEûFACILITIESûHAVEûAûTOTALû 7!,ûISûBPûAREAûOVERûONE MONTHû""37 GETûAûLITTLEûBITûBIGGERûFORûAûQUARTERûORûTWO û COMMITTEDûCAPACITYûOFûABOUTû53Mû &ORûTHEû!MûOFû#LASSû!ûANDû!MûOFû ANDûINûAûRAISINGûRATEûENVIRONMENT ûTHEYûCANû WITHûANûADDITIONALû53MûUNCOMMITTEDû #LASSû!"ûNOTES ûBOTHûWITHû YEARû7!,SûANDû GETûCOMPRESSEDûAûLITTLEûBITûFORûAûQUARTERûORû CAPACITY û+ROLLûSAID RESPECTIVEûûANDûûSUPPORT ûGUIDANCEû TWOû"UTûTHOSEûIMPACTSûAREûGENERALLYû 5NLIKEûTRADITIONALûCARDûCOMPANIES û"REX û ISûONE MONTHû""37ûPLUSûBPûAREAûANDû RELATIVELYûSMALLûCOMPAREDûTOûTHEûENTIREû WHICHûHASûNOTûYETûSHOWNûAûPROlT ûDOESûNOTû BPûAREAû lNANCEûMARGIN vû'ARCIAûSAID CHARGEûINTERESTûONûUNPAIDûBALANCESûANDû 4HEûREGULARûNON BANKûISSUERûPREVIOUSLYû DOESûNOTûCURRENTLYûCHARGEûLATEûFEESû)Tû PRINTEDûTHEû!BNûPRIMEû2-"3 û,IBERTYû CREDIT CARD START-UP BREX PREPS MAKESûMONEYûBYûCOLLECTINGûAûFEEûRANGINGû 3ERIESûnû4RUST ûINû/CTOBERû ABS DEBUT FROMûûTOûûONûEACHûTRANSACTIONûAMOUNTû 4HEûHIGHESTûONE MONTHûCHARGE OFFSûONû DEFENCE BANK ORDERS DEBUT RMBS #REDITûCARDûSTART UPûBREXûLAUNCHEDûITSûlRST "REXSûCARDûPORTFOLIOûOVERûTHEûPASTûû EVERûASSET BACKEDûSECURITYûLASTûWEEKûWITHûAû MONTHSûWASû ûTHEûRATINGûAGENCYûSAID DEFENCE BANKûHASûRELEASEDûINITIALûPRICEû 53MûOFFERINGûBACKEDûBYûREPAYMENTSû h)FûBUSINESSESûREDUCEûSPENDINGûORûCHOOSEû GUIDANCEûFORûAûDEBUTû!MûPRIME ûCAPITALû ONûCHARGEûCARDûACCOUNTSûMADEûBYûITSûSMALLû NOTûTOûUSEûTHEû"REXûCARD ûTHEûRECEIVABLESû RELIEFû2-"3ûOFFERING SALUTE SERIES 2021-1û ANDûMEDIUM SIZEDûBUSINESSûCUSTOMERS BALANCEûSUPPORTINGûTHEûTRANSACTIONûMAYûFALLû ANZûISûARRANGERûANDûSOLEûLEADûMANAGERûOFû THEûTRANSACTION ûWHICHûISûEXPECTEDûTOûBEû GLOBAL CDOs US ASSET-BACKED SECURITIES LAUNCHEDûTHISûWEEK BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE &ORûTHEû!MûOFû#LASSû!ûNOTESûWITHûAû Managing No of Total Share Managing No of Total Share YEARû7!, ûPRICEûTALKûISûONE MONTHû""37û bank or group issues US$(m) (%) bank or group issues US$(m) (%) PLUSûBPûAREAû 1 Barclays 6 2,332.20 27.0 1 Credit Suisse 25 7,244.93 11.2 &ORûTHEû!MûOFû#LASSû" û!MûOFû#LASSû 2 Goldman Sachs 3 1,184.94 13.7 2 JP Morgan 20 5,208.30 8.0 # û!MûOFû#LASSû$ û!MûOFû#LASSû%ûANDû 3 Deutsche Bank 3 1,055.63 12.2 3 Wells Fargo 21 4,971.35 7.7 !MûOFû#LASSû&ûNOTES ûALLûWITHû YEARû 4 Jefferies 3 892.84 10.3 4 Deutsche Bank 27 4,949.63 7.6 7!,S ûGUIDANCEûISûBPnBPûAREA û 5 Morgan Stanley 3 693.58 8.0 5 Barclays 18 4,580.45 7.1 BPnBPûAREA ûBPnBPûAREA û 6 Wells Fargo 1 639.46 7.4 6 Bank of America 16 4,078.37 6.3 BPûAREAûANDûPnBPûAREAûOVERûONE 7 JP Morgan 2 637.71 7.4 7 RBC 17 4,021.29 6.2 MONTHû""37 8 Credit Suisse 1 453.89 5.3 8 MUFG 13 3,894.44 6.0 2ESPECTIVEûCREDITûSUPPORTûFORûTHEû#LASSû!û 9 MUFG 1 435.00 5.0 9 Mizuho 9 2,948.20 4.5 TOû%ûNOTESûISû û û ûûANDû 10 Citigroup 1 311.94 3.6 10 Citigroup 16 2,805.20 4.3 4HEûMUTUALûBANKûTRADITIONALLYûSERVEDû Total 22 8,637.18 Total 97 64,912.52 !USTRALIANû$EFENCEû&ORCEûMEMBERSûANDû

Including Euro, foreign, global, US domestics. Excludes MBS. THEIRûFAMILIESûBUTûISûNOWûOPENûTOûALLû Source: Refinitiv SDC code: B12 Source: Refinitiv SDC code: F14 !USTRALIANS

46 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 46 26/03/2021 20:23:15 STRUCTURED FINANCE

ASIA-PACIFIC ABS Aussie RMBS passes latest test MERCEDES-BENZ FIRST JAPAN AUTO ABS DRAWS SOLID DEMAND RMBS RedZed adds to run of popular issues as house prices lift conﬁdence

MERCEDES-BENZ FINANCE ISSUEDûITSûlRSTûAUTOû REDZED LENDING SOLUTIONS became the fourth are enhanced by rising property values,” S&P LOANû!"3ûINû*APANûUNDERûITSû3ILVERû!RROWû Australian non-bank lender to issue RMBS this said in a Covid-19 update report, published last SECURITISATIONûPROGRAMMEûONû4HURSDAY û year and the first with non-conforming loans, December. WITHûAûBIGGER THAN EXPECTEDûcBNû underlining the strength of the market as the 53M ûSILVER ARROW JAPAN 2021-1 Australian economy and housing sector continue MUTED BANK REVIVAL TRANSACTION to recover from their coronavirus troughs. Non-banks have dominated RMBS over the last 12 4HEûTRANSACTION ûRATEDû!AASF !!!SFû RedZed, which specialises in lending months with just three bank originators – HSBC, -OODYS&ITCH ûANDûBACKEDûBYûAûPOOLûOFû to the self-employed and those who self- AMP Bank and Members Equity Bank – issuing *APANESEûPRIMEûAUTOûLOANûRECEIVABLES û certify incomes, issued the no-grow A$550m RMBS since the Covid-19 pandemic hit Australia. PRICEDûWITHûAûlXED RATEûCOUPONûOFûûTOû (US$426m) REDZED TRUST SERIES 2021-1 non- Banks have not needed to issue RMBS or YIELDûBPûOVERûYENûOFFER SIDEûSWAPSû4HEû conforming RMBS on Thursday, following three senior bonds since the introduction of the WEIGHTEDûAVERAGEûLIFEûISûûYEARS ûWITHû prime RMBS offerings already this year from Reserve Bank of Australia’s Term Funding Facility lNALûMATURITYûINû*ULYû Columbus Capital, Resimac and Pepper. in March 2020, which provides them with up to 7HENûTHEûDEALûWASûANNOUNCEDûINû NAB was arranger and joint lead manager A$200bn of funding for three years at a fixed *ANUARY ûTHEûISSUERûSAIDûTHEûSIZEûWOULDûBEû with CBA. rate of just 0.1% (formerly 0.25%). cBNû!ûBANKERûONûTHEûTRANSACTIONûSAIDû The A$412.5m of Class A1 and A$64.9m of The expiry of the TFF on June 30, however, BOTHûCENTRALûANDûREGIONALûINVESTORSû Class A2 notes, both Triple A rated with 2.0-year could trigger a return of RMBS (and senior note) PARTICIPATED weighted average lives and respective 25% and bank issuance in H2 2021, though syndication SMBC Nikko and BNP ParibasûAREûTHEûJOINTû 13.2% credit support, were priced inside 95bp managers are not expecting a deluge of new LEADûMANAGERSûFORûTHEûDEBUTûISSUEû.IKKOûISû area and 140bp–150bp initial guidance at one- supply. THEûSOLEûARRANGER month BBSW plus 90bp and 120bp. “Banks are already very liquid and likely to The 90bp senior tranche margin is 10bp more become more so as they draw down again on the GLACIER ASSETS SCORES ABS than 80bp clearing rates for the equivalent TFF as June 30 approaches, so I would predict Resimac and Pepper prime RMBS notes issued a slow pick-up, rather than an opening of the GLACIER ASSETS HASûTIEDûUPûAû-Mû on March 3 and 17 (with longer 2.7-year WALs), floodgates,” one said. 53M ûSEVEN TRANCHEûSECURITISATIONû which represent the tightest senior note spreads The senior market offers notably better BACKEDûBYûSALEûRECEIVABLESûFROMû-ALAYSIANû for any non-bank since the financial crisis. pricing outcomes with a three-year non-major WATERûCOMPANYû3YARIKATû0ENGELUARû!IRû bank MTN margin seen around 40bp–50bp 3UNGAIû3ELANGORû3PLASH LOW ARREARS (depending on individual bank ratings) while 4HEûTRANSACTIONûCOMPRISEDûAû-Mû Fears of a coronavirus-related upsurge in their senior Triple A rated RMBS notes would ONE YEARûTRANCHEûPRICEDûATûPARûTOûYIELDû mortgage arrears have been contained by currently be priced in the mid-60s. ûAû-MûûTWO YEARûTRANCHE ûAû various mortgage-deferral arrangements, with However, other factors may encourage banks -MûûTHREE YEARûTRANCHE ûAû-Mû S&P reporting only a modest upturn in arrears of to resume RMBS issuance, including the capital ûFOUR YEARûTRANCHE ûAû-Mûû over 30 days to 1.37% of prime mortgages at the benefits of a capital relief securitisation as well lVE YEARûTRANCHE ûAû-MûûSIX YEARû end of 2020, from 1.28% a year earlier. as a desire to remain engaged with existing TRANCHE ûANDûAû-MûûSEVEN YEARû This is above the sub-1% prime mortgage investors. TRANCHE arrears seen in the UK and Netherlands at the The RedZed Series 2021-1 A$40.7m of Class 'LACIERû!SSETSûWASûSETûUPûBYû end of last year, but well below the circa 3.4% B, A$5.5m of Class C, A$9.9m of Class D and PRIVATELYûOWNEDûUTILITYû'AMUDAû7ATERû and 5.8% levels in Italy and Spain and a far cry A$6.6m of Class E notes, all with 3.6-year WALs, TOûMONETISEûSALESûPROCEEDSûDUEûTOûITû from the standard 8%–10% credit support levels were priced 160bp, 205bp, 300bp and 560bp BYû3PLASH ûWHICHûBOUGHTûITSûWATERû provided for Australian senior prime RMBS notes. wide of one-month BBSW versus 165bp–175bp, TREATMENTûASSETSû5NDERûTHEûTERMINATIONû S&P sees Australian arrears rising as fiscal 215bp–225bp, 315bp–325bp and 575bp–600bp and settlement agreement, Splash had to stimulus measures are reduced and some initial guidance. PAYû'AMUDAû7ATERû-MûFORûTHEû borrowers transition from Covid-19 mortgage- The A$3.3m of Class F notes with a 2.2-year SUPPLYûOFûTREATEDûWATERûASûWELLûASû deferral arrangements, many of which expire this WAL were priced at one-month BBSW plus OPERATIONûANDûMAINTENANCEûWORKSû month, to formal arrears hardship programmes. 685bp, the A$4m of Class G1 notes were pre- PERFORMEDû'AMUDAû7ATERûISûOWNEDûBYû Nevertheless, the rating agency stresses that placed, while the A$2.5m of Class G2 notes were -ALAYSIANûINFRASTRUCTUREûCOMPANYû rising housing prices will limit the impact. retained. 'AMUDAû “Improving property prices will help to contain Respective credit support for the Class B to G1 The payments are to be made in any losses in the event of borrower default as notes is 5.8%, 4.8%, 3.0%, 1.8%, 1.2% and 0.5%. NINEûYEARLYûINSTALMENTS ûINCLUDINGû borrowers’ equity positions in their mortgages John Weavers ANûINITIALûPAYMENTûMADEûONû3EPTEMBERûû û'AMUDAûMONETISEDûTHEûREMAININGû RECEIVABLESûTOûBEûSOLDûTOû'LACIERû 2EPAYMENTûOFûTHEû!"3ûWILLûRELYûONûTHEû 3ELANGORûANDûTHEûFEDERALûTERRITORIESûOFû !SSETS ûWHICHûWILLûUSEûTHEûBONDûPROCEEDSû INSTALMENTSûDUEûFROMû3PLASHûANDûITSûPARENTû +UALAû,UMPURûANDû0UTRAJAYA TOûFUNDûTHEûPURCHASEû)NûESSENCE ûTHEû STATE OWNEDû!IRû3ELANGORû2!-ûRATEDûTHEû 4HEûSENIORûNOTESûSETTLEDûONû-ARCHû û ISSUERûNOWûHASûABSOLUTEûLEGALû NOTESû!!!ûTOûREmECTû!IRû3ELANGORSûCREDITû DRAWNûFROMûAû-Mû!"3ûPROGRAMMEû ASSIGNMENTûOVERûTHEûREMAININGûANNUALû PROlLEûASûTHEûSOLEûWATERûSUPPLIERûANDû AmInvestment Bank and CIMB WEREûJOINTûLEADû INSTALMENTS DISTRIBUTORûOFûWATERûSERVICESûINûTHEûSTATEûOFû MANAGERSûFORûTHEûDEAL

International Financing Review March 27 2021 47

5 IFR Bonds 2376 p21-58.indd 47 26/03/2021 20:23:15 GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 26/3/2021 Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%) SSAR US DOLLARS Mar 23 2021 Rentenbank US$1.75bn Mar 30 2026 0.875 99.591 MS+3/T+13.4 0.959

EUROS Mar 22 2021 Rhineland-Palatinate €100m incr Jan 21 2031 0.01 102.365 MS-4 -0.27 (€900m) Mar 23 2021 European Union SURE €8bn Mar 4 2026 0 102.44 MS-14/B+20 -0.488

Mar 23 2021 European Union SURE €5bn May 2 2046 0.45 99.386 MS+1/B+34.4 0.476

Mar 24 2021 L-Bank €150m Apr 7 2026 3mE+200 110.399 - - Mar 24 2021 Unedic social €3bn May 25 2031 0.01 99.646 OAT+13/MS+1.6 0.045

Mar 25 2021 Schleswig-Holstein €750m Apr 1 2027 0.01 102.205 MS-6/B+30.8 -0.353

Mar 26 2021 Rhineland-Palatinate €500m Apr 1 2041 0.375 99.177 MS ﬂat/B+45.6 0.418 STERLING Mar 23 2021 KBN £250m Dec 15 2026 0.625 99.883 G+29 0.645 Mar 25 2021 UK DMO sukuk £500m Jul 22 2026 0.333 100 G ﬂat 0.333

NON CORE Mar 22 2021 Stockholm SKr500m Mar 30 2027 0.45 100 - 0.45 Mar 22 2021 Vasteras SKr250m Jan 29 2027 0.435 100 - 0.435 Mar 23 2021 KBN A$250m incr Jun 1 2026 0.6 97.517 ASW+26, ACGB+37 1.095 (A$500m) Mar 23 2021 Tascorp A$500m Jan 22 2032 2.25 100.286 EFP+44, 2.22 ACGB+41.7 Mar 23 2021 OKB sustainable NKr1bn Mar 30 2026 1.337 100 3mN ﬂat 1.337 Mar 24 2021 Norrkopings kommun SKr200m Mar 31 2026 0.353 100 - 0.353 Mar 24 2021 BNG A$100m incr Feb 19 2032 1.55 94.741 ACGB+32, 2.093 (A$130m) ACGB+37.7 Mar 24 2021 NRW.Bank social A$350m Mar 31 2026 1.05 99.879 ASW+34, 1.075 ACGB+42.5 Mar 24 2021 NWB A$80m incr Dec 16 2030 1.67 97.775 ACGB+41.75 1.923 (A$225m) Mar 25 2021 IdF Mobilites CAB A$300m incr Nov 16 2024 1.7 104.181 ASW+12, 0.528 (A$400m) ACGB+27.05 Mar 25 2021 NTTC A$650m May 21 2032 2.5 100.873 EFP+68, 2.41 ACGB+60.7 Mar 25 2021 IFC social A$100m incr Apr 15 2035 1.5 89.8 ASW+28, 2.358 (A$950m) ACGB+31.8 Mar 25 2021 Sundsvall Kommun SKr500m Apr 1 2026 3mS+75 103.599 - - CORPORATES US DOLLARS Mar 19 2021 AT&T US$750m Mar 25 2024 SOFR+64 100 SOFR+64 -

Mar 19 2021 AT&T US$2.25bn Mar 25 2024 (Mar 2022) 0.9 99.905 T+60 0.932

Mar 19 2021 AT&T US$3bn Mar 25 2026 (Mar 2023) 1.7 99.833 T+85 1.735

Mar 22 2021 American Honda Finance US$750m Aug 24 2028 2 99.831 T+70 2.026

Mar 22 2021 DTE Electric green US$575m Apr 1 2028 1.9 99.915 T+58 1.913

Mar 22 2021 DTE Electric green US$425m Apr 1 2051 3.25 99.165 T+90 3.294

Mar 22 2021 Oracle US$2.75bn Mar 25 2026 1.65 99.952 T+80 1.66

48 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 48 26/03/2021 20:23:16 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

MS+5 area, MS+4 - US$3bn Aaa/AAA/AAA BofA/Citi/JPM/NatWest - area

- - - -/-/AAA - -

MS-12 area 1.5 €46.5bn, 600acs Aaa/AA/AAA BNPP/BofA/DZ/MS/SG UK 29%, Asia 27%, Ger 10%, Fr 9%, RoEur 8%, Nordics 7%, Benelux 6%, RoW 4%. FM 45%, CB/OI 42%, Tsy 7%, Bks 5%, HF 1%. MS+3 area 1.5 €50bn, 600acs Aaa/AA/AAA BNPP/BofA/DZ/MS/SG Ger 28%, UK 18%, Benelux 15%, It 11%, Nordics 8%, Fr 5%, RoEur 12%, RoW 3%. FM 44%, Tsy 17%, CB/OI 15%, Ins/PF 13%, Bks 9%, HF 2%. - - - Aaa/AAA/NR Uni - OAT +16 area, 1 €14.9bn Aa2/NR/AA Barc/BofA/BNPP/DB/JPM Fr 27.3%, Ger/Aus/Switz 21%, UK 14%, OAT+14 (+/-1) S.Eur 9.2%, Asia 8.5%, Nordics 6.2%, Benelux 5.1%, N.Amer 4%, E.Eur 1.8%, Other 3%. AM 49.8%, Bks 25.6%, CB/OI 22.1%, Other 2.6%. MS-5 area - €1bn NR/NR/AAA Deka/Erste/Helaba/Natx/Uni Ger/Aus 59%, Benelux 18%, Nordics 9%, CEE 7%, Other 7%. CB/OI 56%, Bks 22%, AM/FM 17%, Ins/PF 5%. MS ﬂat area - - NR/NR/AAA DZ/LBBW/NordLB/RBI -

- - - Aaa/AAA DB/HSBC/TD - G+1 area - £625m Aa3/AA/AA- HSBC/CIMB/DIB/ENBD/StCh ME 44%, UK 44%, Asia 12%. Bks 66%, CB/SSA 33%, Other 1%.

- - - NR/AAA HCM - - - - NR/AAA HCM - ASW+26 - A$0 Aaa/AAA StCh/TD -

EFP+41/+45 - - Aa2/AA+ NAB/CBA/UBS -

- - - Aa1/AA+ Danske - - - - NR/AA+ Danske - - - - Aaa/AAA/AAA JPM -

ASW+33/+35, - - Aa1/AA/AAA Nomura/RBC/DB - ASW+34 area - - - Aaa/AAA RBC -

ASW+12 0 - Aaa/AAA/AAA JPM/TD -

EFP+65/+69 - - Aa3 ANZ/NAB/UBS -

- - - Aaa/AAA JPM -

- - - NR/AA+ SEB/Danske -

SOFR+Equiv, - US$2.4bn Baa2/BBB/BBB+ Barc/Citi/JPM/Miz - SOFR+Equiv T+85 area, T+65 -1 US$4.3bn Baa2/BBB/BBB+ Barc/Citi/JPM/Miz - (+/-5) T+110 area, T+90 2 US$6.1bn Baa2/BBB/BBB+ Barc/Citi/JPM/Miz - (+/-5) T+90/+95, T+70 3 US$1.75bn A3/A-/- MUFG/BofA/JPM/TD - (the #) T+85 area, T+58 -1 US$1.4bn Aa3/A/A+ BofA/Citi/JPM/Scotia/WFS BMO/ - (the #) BNY New Mellon/Mitsubishi UFJ/TD Securities/Mizuho T+115 area, T+90 -2 US$1.5bn Aa3/A/A+ BofA/Citi/JPM/Scotia/WFS BMO/ - (the #) BNY New Mellon/Mitsubishi UFJ/TD Securities/Mizuho T+95 area, T+85 5 US$6.5bn Baa2/A/BBB+ BofA/Citi/DB/JPM/WFS - (the #)

International Financing Review March 27 2021 49

5 IFR Bonds 2376 p21-58.indd 49 26/03/2021 20:23:16 GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 26/3/2021 (CONTINUED) Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Mar 22 2021 Oracle US$2bn Mar 25 2028 2.3 99.743 T+100 2.34

Mar 22 2021 Oracle US$3.25bn Mar 25 2031 2.875 99.845 T+120 2.893

Mar 22 2021 Oracle US$2.25bn Mar 25 2041 3.65 99.326 T+140 3.698

Mar 22 2021 Oracle US$3.25bn Mar 25 2051 3.95 99.825 T+155 3.96

Mar 22 2021 Oracle US$1.5bn Mar 25 2061 4.1 99.804 T+170 4.11

Mar 23 2021 Genpact Luxembourg US$350m Apr 10 2026 1.75 99.87 T+95 1.777

Mar 23 2021 Northern States Power Co US$425m Apr 1 2031 2.25 99.582 T+65 2.297 green Mar 23 2021 Northern States Power Co US$425m Apr 1 2052 3.2 99.629 T+85 3.219 green Mar 24 2021 American Tower US$700m Apr 15 2026 (Mar 2026) 1.6 99.918 T+80bp 1.617

Mar 24 2021 American Tower US$700m Apr 15 2031 (Jan 2031) 2.7 99.807 T+110bp 2.722

Mar 24 2021 Business Development US$300m Mar 30 2026 3.25 99.698 T+250bp 3.316 Corporation of America Mar 24 2021 Dominion Resources US$600m Apr 15 2026 (Mar 2026) 1.45 99.956 T+65bp 1.459

Mar 24 2021 Dominion Resources US$500m Apr 15 2041 (Oct 2040) 3.3 99.912 T+110bp 3.306 Mar 24 2021 Entergy Arkansas US$400m Jun 15 2052 (Dec 2051) 3.35 99.378 T+105bp 3.382

Mar 24 2021 Nordstrom US$250m Apr 8 2024 (Apr 2022) 2.3 100 T+200 2.3

Mar 24 2021 Nordstrom US$425m Aug 1 2031 4.25 99.922 T+265 4.26

Mar 24 2021 Southern California Edison US$700m Apr 1 2024 1.1 100 T+80bp 1.1

Mar 24 2021 Southern California Edison US$400m Apr 1 2024 SOFR+83 100 SOFR+83 -

Mar 24 2021 Southern California Edison US$400m Apr 3 2023 SOFR+64 100 SOFR+64 100

Mar 24 2021 Southern California Edison US$350m Apr 3 2023 0.7 99.907 T+60bp 0.74

Mar 24 2021 STERIS Irish FinCo Unlimited US$675m Mar 15 2031 2.7 99.897 T+110 2.712

Mar 24 2021 STERIS Irish FinCo Unlimited US$675m Mar 15 2051 3.75 99.52 T+145 3.777

Mar 25 2021 AmerisourceBergen US$1.525bn Mar 15 2023 (Mar 2022) 0.737 100 T+60 0.737

Mar 25 2021 AmerisourceBergen US$1bn Mar 15 2031 2.7 99.793 T+110 2.724

Mar 25 2021 Lsega Financing US$500m Apr 6 2024 0.65 99.881 T+40 0.69

Mar 25 2021 Lsega Financing US$1bn Apr 6 2026 1.375 99.899 T+60 1.396

Mar 25 2021 Lsega Financing US$1bn Apr 6 2028 2 99.909 T+75 2.014

Mar 25 2021 Lsega Financing US$1.25bn Apr 6 2031 2.5 99.833 T+90 2.519

Mar 25 2021 Lsega Financing US$750m Apr 6 2041 3.2 99.502 T+100 3.234

EUROS Mar 22 2021 Kemira €200m Perpetual 1 99.183 MS+130/B+166.3 1.122 Mar 23 2021 Arval Service Lease SA €800m Sep 30 2024 0 99.968 MS+45/B+75 0.009

Mar 23 2021 FCA €1.25bn Mar 30 2027 0.625 99.508 MS+98/B+134.5 0.709

Mar 23 2021 Fresenius €500m Oct 1 2025 0 99.591 MS+47/B+80.4 0.091

50 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 50 26/03/2021 20:23:16 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

T+110 area, T+100 12 US$4.9bn Baa2/A/BBB+ BofA/Citi/DB/JPM/WFS - (the #) T+130 area, T+120 14 US$7.2bn Baa2/A/BBB+ BofA/Citi/DB/JPM/WFS - (the #) T+155 area, T+145 13 US$5.6bn Baa2/A/BBB+ BofA/Citi/DB/JPM/WFS - (the #) T+165 area, T+155 17 US$7.7bn Baa2/A/BBB+ BofA/Citi/DB/JPM/WFS - (the #) T+180 area, T+170 16 US$4.1bn Baa2/A/BBB+ BofA/Citi/DB/JPM/WFS - (the #) T+115/+120, T+100 6 US$1bn Baa3/BBB- Citi/MS/WFS - (+/-5) T+90 area -1 US$1.85bn Aa3/A/A+ MUFG/PNC/TD/USB/WFS -

T+110 area -3 US$1.5bn Aa3/A/A+ MUFG/PNC/TD/USB/WFS -

T+95/+100, T+80 1 US$1.6bn Baa3/BBB-/BBB+ BofA/Citi/MS/JPM/Santan - (the#) T+130/+135, T+115 -3 US$1.7bn Baa3/BBB-/BBB+ BofA/Citi/MS/JPM/Santan - (+/-5) T+250 area - - Baa3/BBB- JPM/MS -

T+95bp area, T+70 -7 US$1.5bn Baa2/BBB CS/JMS/SMBC/Truist - (+/-5) T+135a, T+115 (+/-5) -2 US$1.5bn Baa2/BBB CS/JMS/SMBC/Truist - T+130bp area, T+110 -1 US$1.5bn A2/A Barc/Citi/Regions/Stephens/USB - (+/-5) T+250 area, T+210 5 US$2bn Baa3/BB+/BBB- GS/WFS - (+/-10) T+312.5 area, T+275 -3 US$3.5bn Baa3/BB+/BBB- GS/WFS - (+/-10) T+80/+85, T+80 17 US$1.15bn A3/A-/BBB+ Barc/BNPP/Miz/MUFG - (the #) SOFR+Equiv, - US$575m A3/A-/BBB+ Barc/BNPP/Miz/MUFG - SOFR+Equiv SOFR+Equiv, - US$550m A3/A-/BBB+ Barc/BNPP/Miz/MUFG - SOFR+Equiv T+60/+65, T+60 13 US$600m A3/A-/BBB+ Barc/BNPP/Miz/MUFG - (the#) T+135 area, T+115 - US$2.4bn Baa2/BBB-/BBB BofA/Citi/JPM - (+/-5) T+170 area, T+150 - US$2.6bn Baa2/BBB-/BBB BofA/Citi/JPM - (+/-5) T+85 area, T+65 5 US$3.3bn Baa2/A-/A- BofA/JPM/MS/WFS - (+/-5) T+115-120, T+110 9 US$1.4bn Baa2/A-/A- BofA/JPM/MS/WFS - (the #) T+70 area, T+40 4 US$2bn A3/A Barc/BofA/Citi/HSBC/BofA/GS/ - (the #) MS/WFS T+90 area, T+60 Flat US$2.5bn A3/A Barc/BofA/Citi/HSBC/BofA/GS/ - (the #) MS/WFS T+105 area, T+75 Flat US$2.9bn A3/A Barc/BofA/Citi/HSBC/BofA/GS/ - (the #) MS/WFS T+120 area, T+90 -2 US$4.1bn A3/A Barc/BofA/Citi/HSBC/BofA/GS/ - (the #) MS/WFS T+135 area, T+100 2 US$4.7bn A3/A Barc/BofA/Citi/HSBC/BofA/GS/ - (the #) MS/WFS

- - - - Danske/Nordea - MS+60 area, MS+50 - €1.4bn NR/A-/A BNPP/BBVA/HSBC/StCh/Santan/ - area Uni MS+130 area, -2 €3.4bn Baa3/BBB-/BBB- BNPP/CMZ/CA-CIB/GS/BcaIMI/ - MS+100/+105 Natx/SG/Uni MS+80/+85, MS+55 -5 €2bn Baa3/BBB/BBB-/ BNPP/CMZ/ING/Uni - area Sustainalytics (19.6 Low Risk), MSCI (BBB) and CDP (B)

International Financing Review March 27 2021 51

5 IFR Bonds 2376 p21-58.indd 51 26/03/2021 20:23:16 GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 26/3/2021 (CONTINUED) Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Mar 23 2021 Fresenius €500m Oct 1 2028 0.5 99.685 MS+70/B+107.9 0.543

Mar 23 2021 Fresenius €500m Oct 1 2031 0.875 99.156 MS+90/B+130 0.96

Mar 23 2021 Renault €600m Apr 1 2028 2.5 100 MS+269.5/B+307 2.5

Mar 23 2021 Stedin Holding hybrid €500m Perpetual (Mar 2027) 1.5 100 MS+177.1/B+213.4 1.5

Mar 23 2021 UCB SA €500m Mar 30 2028 1 1.037 MS+123/B+160.8 1.037

Mar 23 2021 Wolters Kluwer €500m Mar 30 2028 0.25 99.958 MS+45/B+82.60 0.256

Mar 24 2021 Nidec Corp green €500m Mar 30 2026 0.046 100 MS+40/B+74.3 0.046

Mar 24 2021 Tikehau €500m Mar 31 2029 1.625 99.643 MS+180/B+216.9 1.673

Mar 24 2021 Vantage Towers AG €750m Mar 31 2025 0 99.677 MS+50/B+82.7 0.081

Mar 24 2021 Vantage Towers AG €750m Mar 31 2027 0.375 99.734 MS+70/B+106.9 0.42

Mar 24 2021 Vantage Towers AG €700m Mar 31 2030 0.75 99.887 MS+82/B+119.8 0.763

Mar 24 2021 Verbund green SLB €500m Apr 1 2041 0.9 98.446 MS+57/B+103 0.986

Mar 25 2021 Carmila €300m Jan 4 2029 1.625 99.458 MS+185/B+222.8 1.698

Mar 25 2021 E.ON green €750m Oct 1 2032 0.6 99.382 MS+57/B+103.3 0.656

Mar 25 2021 Fraport €350m Jul 9 2024 1.625 101.891 MS+150/B+179 1.034

Mar 25 2021 Fraport €800m Mar 31 2028 1.875 99.675 MS+215/B+252.6 1.925

Mar 25 2021 Orpea sustainable €500m Apr 1 2028 2 99.195 MS+235/B+272.4 2.125

Mar 25 2021 YIT green €100m Mar 31 2024 3mE+310 100 3mE+310 -

Mar 25 2021 YIT green €100m Jan 15 2026 3.25 100 MS+363.6 3.252

Mar 25 2021 YIT green hybrid €100m Perpetual (Mar 2026) 5.75 100 MS+612.2 5.75

Mar 26 2021 SMAKRAFT AS green €50m Apr 13 2026 1.875 99.928 MS+225 1.899 Mar 26 2021 LSEG Netherlands B.V. €500m Apr 6 2025 0 100.084 MS+40 /B+70.4 -0.02

Mar 26 2021 LSEG Netherlands B.V. €500m Apr 6 2028 0.25 99.689 MS+50/B+87.6 0.295

Mar 26 2021 LSEG Netherlands B.V. €500m Apr 6 2033 0.75 98.954 MS+70/B+119 0.842

STERLING Mar 23 2021 Southern Water Services £300m Mar 30 2027 1.625 98.697 G+138 1.848 sustainable Mar 25 2021 bLEND Funding £40m incr Sep 21 2049 3.459 121.609 G+113 2.357 (£498m)

52 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 52 26/03/2021 20:23:16 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

MS+100 area, 5 €1.6bn Baa3/BBB/BBB-/ BNPP/CMZ/ING/Uni - MS+75 area Sustainalytics (19.6 Low Risk), MSCI (BBB) and CDP (B) MS+115 area, MS+95 18 €1.7bn Baa3/BBB/BBB-/ BNPP/CMZ/ING/Uni - area Sustainalytics (19.6 Low Risk), MSCI (BBB) and CDP (B) 2.75% area, 2.625% 0 €950m Ba2/BB+ BBVA/CA-CIB/MUFG/SG/Uni Fr 20%, UK/Ire 19%, It 18%, Ger/Aus (+/-0.125% WPIR), 16%, Iberia 9%, Switz 9%, Nordics 3%, 2.5% Benelux 2%, Other 4%. AM 66%, Bks/ PB 17%, Ins/PF 5%, OI 4%, HF 4%, Other 4%. 1.875% area, 1.625% 0 €2.1bn NR/BBB ING/NatWest/MUFG/Rabo - area, 1.5% MS+145 area, 8 €1.08bn - BNPP/CA-CIB/ING/CMZ/SMBC - MS+125 area Nikko Bank of America Securities/ Imi-Intesa Sanpaolo/KBC/Mizuho/ Wells Fargo Securities MS+75 area, MS+50 0 €2.2bn NR/BBB+/-/MSCI Barc/ABN/ING/Rabo - area (AAA) MS+75 area, -5 €2.6bn A3 MS/JPM/BNPP/Citi/UBS - MS+40/+45 MS+200 area, 30 €750m NR/NR/BBB- CA-CIB/GS/SG/BNPP/BcaIMI/RBC/ - MS+180/+185 Uni MS+80 area, MS+55 - €1.7bn Baa3/BBB- BNPP/BofA/Citi/DB/LBBW/SMBC - area Nikko MS+95 area, MS+75 - €2.2bn Baa3/BBB- BNPP/BofA/Citi/DB/LBBW/SMBC - area Nikko MS+115 area, MS+90 - €2.6bn Baa3/BBB- BNPP/BofA/Citi/DB/LBBW/SMBC - area Nikko MS+85 area, -5 €2.1bn A3/A/-/ BofA/JPM/Erste/MS/SG Ger 46%, Benelux 10%, S.Eur 8%, Fr MS+60/+65 Sustainalytics 18.1 8%, UK/Ire 6%, Switz 3%, Other 14%. low risk/ISS ESG B AM 63%, Ins/PF 26%, Bk/PB 5%, Other + 2PO 6%.Green 90%. MS+195/+200 - €330m NR/BBB Natx/SG/BNPP/CA-CIB/CIC/Saba/ - LBP MS+85/+90, 2 €1.3bn Baa2/BBB ABN/SG/BofA/Uni Ger/Aus 43%, Fr 29%, UK/Ire 13%, Iberia MS+60/+65 6%, Benelux 4%, Switz/Liech 3%, Other 2%. AM 61%, OI 24%, Ins/PF 7%, Bks/PB 7%, Other 1%. MS+175 area, - €650bn - BNPP/CMZ/BLB/DZ/LBBW - MS+150 (the #) MS+225 area, - €1.25bn - BNPP/CMZ/BLB/DZ/LBBW - MS+215 (the #) MS+260 area, - €1bn - BNPP/CA-CIB/HSBC/Natx/SG - MS+240 area 3mE+325 area, - €140m - Danske/Nordea/OP - 3mE+310/+320 3.25%/3.375%, - €100m - Danske/Nordea/OP - 3.25% area 5.75%/6%, 5.75% - €100m - Danske/Nordea/OP - area MS+215/+225 - - - DNB/Nordea/SEB - MS+60 area - €1.85bn A3/A Barc/BofA/Citi/HSBC/BNPP/ - NatWest/Santan/BoC/CCB/GS/ BcaIMI/Lloyds/MS/MUFG/RBC/ SMBC Nikko/TD/WFS MS+75 area - €1.55bn A3/A Barc/BofA/Citi/HSBC/BNPP/ - NatWest/Santan/BoC/CCB/GS/ BcaIMI/Lloyds/MS/MUFG/RBC/ SMBC Nikko/TD/WFS MS+95 area - €2.4bn A3/A Barc/BofA/Citi/HSBC/BNPP/ - NatWest/Santan/BoC/CCB/GS/ BcaIMI/Lloyds/MS/MUFG/RBC/ SMBC Nikko/TD/WFS

G+155/+160, G+140 8 £750m Baa3/BBB+/BBB+ BNPP/Santan/SMBC Nikko - (+/-2 WPIR) G +125/+130, G+115 - £165m A2 Lloyds - area

International Financing Review March 27 2021 53

5 IFR Bonds 2376 p21-58.indd 53 26/03/2021 20:23:17 GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 26/3/2021 (CONTINUED) Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Mar 26 2021 LSEG £500m Apr 6 2030 1.625 98.987 G+95 1.74

NON CORE Mar 22 2021 Wihlborgs Fastigheter SKr100m incr Mar 11 2024 3mS+105 100.004 - - (SKr400m) Mar 23 2021 Toyota Finance Australia A$600m incr Mar 26 2024 3mBBSW+55 100 3mBBSW+55 - (A$0m) Mar 23 2021 WestConnex Pty Ltd A$650m Mar 31 2024 3.15 99.677 ASW+145 3.188 Mar 23 2021 Volvoﬁnans Bank SKr350m Mar 30 2026 3mS+58 100 3mS+58 -

Mar 23 2021 Volvoﬁnans Bank SKr150m Mar 30 2026 0.883 100 MS+58 0.883 Mar 23 2021 Volvoﬁnans Bank SKr750m Jun 28 2024 3mS+50 100.426 3mS+37 -

Mar 24 2021 Vasakronan green SKr1bn Mar 26 2024 0.3 100 - 0.3 Mar 25 2021 Willhem SKr1bn Apr 8 2024 0.32 100 MS+25 0.32 Mar 25 2021 Lendlease green A$300m Mar 31 2031 3.7 99.652 ASW+205 3.742 Mar 26 2021 Vasakronan green SKr250m Feb 28 2024 0.27 100 - 0.27 FINANCIALS US DOLLARS Mar 19 2021 Athene Global Funding US$550m Mar 24 2028 2.5 99.719 T+118 2.544 Mar 23 2021 Nomura US$1.25bn Apr 10 2026 1.864 100 T+105 1.864

Mar 23 2021 Nomura US$750m Apr 10 2028 2.471 100 T+120 2.471

Mar 23 2021 Nomura US$1.25bn Apr 10 2031 2.919 100 T+130 2.919

Mar 23 2021 Santander SNP US$1.5bn Mar 25 2026 1.849 100 T+103 1.849

Mar 23 2021 Santander SNP US$750m Mar 25 2031 2.958 100 T+133 2.958

Mar 24 2021 ING Groep US$1.1bn Apr 1 2027 (Apr 2026) 1.726 100 T+92 1.726

Mar 24 2021 ING Groep US$400m Apr 1 2027 (Apr 2026) SOFR+101 100 SOFR+101 -

Mar 24 2021 ING Groep US$750m Apr 1 2032 (Apr 2031) 2.727 100 T+112 2.727

EUROS Mar 24 2021 Storebrand green T2 €300m Sep 30 2051 (Sep 2031) 1.875 98.84 MS+195/B+235.2 1.999

Mar 25 2021 BPER Banca social €500m Mar 31 2027 (Mar 2026) 1.375 99.976 MS+175/B+207.5 1.38

Mar 25 2021 Societe Generale T2 €1bn Jun 30 2031 (Jun 2026) 1.125 99.395 MS+160, 1.245 OBL+192.8

Mar 25 2021 UBS AG €1.5bn Mar 31 2026 0.01 99.905 MS+40/B+74.4 0.029

Mar 25 2021 UBS AG €1bn Mar 31 2031 0.5 99.631 MS+55/B+91.7 0.538

STERLING Mar 24 2021 Athene Global Funding £250m Nov 30 2028 1.875 99.236 G+140 1.983 Mar 25 2021 UBS AG £500m Dec 18 2023 0.625 99.858 G+63 0.678

SWISS FRANCS Mar 24 2021 Julius Baer SFr260m Apr 27 2028 0.125 100.384 MS+33/ 0.07 SARON+39.5/ Eidg+62.2 NON CORE Mar 22 2021 Swedbank SNP NKr1.05bn Mar 24 2028 2.25 100 - 2.25 Mar 23 2021 Swedbank SNP NKr300m incr Mar 24 2028 2.25 99.68 - 2.31 (NKr1.35bn) Mar 24 2021 Gjensidige Forsikring ASA T2 NKr1.2bn Apr 7 2051 (Oct 2026) 3mN+110 100 3mN+110 -

Mar 24 2021 Gjensidige Forsikring ASA NKr1.2bn Perpetual (Apr 2026) 3mN+225 100 3mN+225 - RT1 Mar 24 2021 Islandsbanki NKr150m Mar 26 2024 3mN+87.5 99.95 - -

54 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 54 26/03/2021 20:23:17 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

G+110 area - £1.25bn A3/A Barc/BofA/Citi/HSBC/BofA/Lloyds/ - MUFG/RBC/BNPP/BoC/CCB/GS/ BcaIMI/MS/NatWest/Santan/SMBC Nikko/TD/WFS

- - - - SEB -

3mBBSW/ASW+58 - - A1/A+ ANZ/CBA - area ASW+155 area - - NR/BBB+ ANZ/CBA/Miz - 3mS+57/+60, - SKr1bn A3 DNB/SEB - 3mS+58 MS+57/+60, MS+58 - SKr1.4bn A3 DNB/SEB - 3mS+36/+39, - SKr1.4bn A3 DNB/SEB - 3mS+37 - - - - SEB - - - - NR/A- HCM - ASW+215/+220 - - Baa3/-/BBB- ANZ/CBA/HSBC/BoC - - - - Cicero 2PO SEB -

T+135 area, T+118 1 US$800m NR/A/A DB/BofA/Citi/MS - T+130 area, T+125 5 US$4bn Baa1/BBB+ Nomura/Citi - area, T+105 (the #) T+145 area, T+140 5 US$2.5bn Baa1/BBB+ Nomura/Citi - area, T+120 (the #) T+160 area, T+155 6 US$4bn Baa1/BBB+ Nomura/Citi - area, T+130 (the #) T+125 area, T+105 3 US$3.8bn Baa1/A-/A- Citi/Barc/CS/HSBC/JPM/MS/ - (+/-2) Santander T+155 area, T+135 1 US$2.6bn Baa1/A-/A- Citi/Barc/CS/HSBC/JPM/MS/ - (+/-2) Santander T+120 area, T+95 2 US$3.2bn Baa1/A- BofA/GS/ING/Miz/RBC - (+/-3) SOFR+Equiv, - US$800m Baa1/A- BofA/GS/ING/Miz/RBC - SOFR+Equiv T+145 area, T+115 1 US$2.6bn Baa1/A- BofA/GS/ING/Miz/RBC - (+/-3)

MS+230 area, - €600m NR/BBB/-/ BNPP/Danske/JPM - MS+205 (+/-5) Sustainalytics 2PO MS+200 area, - €1.25bn Ba3/NR/BB CA-CIB/NatWest/Citi/GS/Medio/ - MS+175/+180 Natx MS+175/+180, 10 €1.45bn, 110acs Baa3/BBB-/BBB SG/ING/LBBW/Uni Fr 28%, UK/Ire 21%, Ger/Aut/Switz MS+160 (the #) 19%, Benelux 12%, Nordics 10%, Iberia 7%, It 3%. AM 70%, Ins/PF 20%, CB/OI 4%, Bks/PB 4%, HF 2%. MS+60 area, - €2.9bn Aa3/A+/AA- UBS/Helaba/BcaIMI/Natx/Nordea - MS+40/+45 MS+75 area, - €2bn Aa3/A+/AA- UBS/ABN/BBVA/Caixa/DZ/ING/ - MS+55/+60 Scotia/SEB/StCh/Uni/WFS

G+140/+145, G+140 - £270m NR/A/A Barc/CS/DB/RBC - G+70 area, G+65 - £750m Aa3/A+/AA- UBS/Barc/Lloyds/NatWest - area

MS+35/+40, - -, 33acs A3 ZKB/Jbar Switz 100%. Ins 32.6%, AM 31.7%, Bks MS+33/+35 21.7%, PF 14%.

- - - Baa1/A-/A+ SEB - - - - Baa1/A-/A+ SEB -

3mN+100/+125, - - NR/BBB+ DNB/Pareto - 3mN+105/+115 3mN+225/+250, - - NR/BBB DNB/Pareto - 3mN+225 - - - - SEB -

International Financing Review March 27 2021 55

5 IFR Bonds 2376 p21-58.indd 55 26/03/2021 20:23:17 GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 26/3/2021 (CONTINUED) Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

Mar 22 2021 Skandiabanken SKr700m Mar 26 2024 3mS+75 101.425 3mS+28 - COVERED BONDS EUROS Mar 24 2021 AXA Home Loan €250m incr Jun 25 2035 0.125 98.088 MS+1/B+37.1 0.262 (€750m) SWISS FRANCS Mar 23 2021 PfZ SFr347m Mar 13 2028 0 101.419 MS+5/Eidg+32.8/ -0.204 SARON+11.7 Mar 23 2021 PfZ SFr207m May 25 2032 0.1 100.352 MS ﬂat/Eidg+34.2/ 0.068 SARON+7.3 Mar 23 2021 PfZ SFr372m Jun 12 2035 0.2 100.588 MS-5/EIdg+30.2/ 0.158 SARON+2.5 NON CORE Mar 25 2021 Sparebanken Vest SKr300m incr Dec 8 2025 3mS+75 102.997 - - Boligkreditt green (SKr3.3bn) HIGH YIELD US DOLLARS Mar 19 2021 Neiman Marcus Group US$1.1bn Apr 1 2026 (Apr 2023) 7.125 100 T+626 7.125 Mar 19 2021 VM Consolidated US$350m Apr 15 2029 (Apr 2024) 5.5 100 T+401 5.5 Mar 22 2021 NCR US$1.1bn Apr 15 2029 (Apr 2024) 5.125 100 T+366 5.125

Mar 23 2021 LD Holdings Group US$600m Apr 1 2028 (Apr 2024) 6.125 100 T+484 6.125 Mar 23 2021 Liberty Cable Puerto RiCo US$820m Jul 15 2029 (Jul 2024) 5.125 100 T+366 5.125

Mar 23 2021 LIONS GATE CAPITAL US$1bn Apr 15 2029 (Apr 2024) 5.5 100 T+406 5.5 HOLDINGS Mar 23 2021 TEINE ENERGY LTD US$400m Apr 15 2029 (Apr 2024) 6.875 100 T+543 6.875 Mar 24 2021 Alta Equipment Group US$315m Apr 15 2026 (Apr 2023) 5.625 100 T+481 5.625 Mar 24 2021 Royal Caribbean Cruises US$1.5bn Apr 1 2028 5.5 100 - 5.5

Mar 24 2021 Solaris Midstream Holdings US$400m Apr 1 2026 (Apr 2023) 7.625 100 T+681 7.625 Mar 25 2021 Carvana US$600m Apr 15 2027 (Apr 2024) 5.5 100 T+442 5.5 Mar 25 2021 Dycom Industries US$500m Apr 15 2029 (Apr 2024) 4.5 100 T+310 4.5 Mar 25 2021 Interior Logic Group US$300m Apr 1 2029 (Apr 2024) 6.125 100 T+470 6.125 Holdings Mar 25 2021 Pilgrim’s Pride Corporation US$1bn Apr 15 2031 (Apr 2026) 4.25 98.994 T+275 4.375 sustainable Mar 26 2021 Oasis Midstream Partners LP US$450m Apr 1 2029 (Apr 2024) 8 100 T+669 8

EUROS Mar 22 2021 PPC SLB €125m incr Mar 30 2026 (Mar 2023) 3.875 100.75 B+438 3.709 (€775m) Mar 23 2021 Saipem €500m Mar 31 2028 3.125 100 B++368.6 3.125

Mar 24 2021 Novelis Sheet Ingot GmbH €500m Apr 15 2029 (Apr 2024) 3.375 100 B+388 3.375 green Mar 25 2021 Advanz Pharma €475m Apr 1 2028 (Apr 2024) 5 100 +561bp 5

Mar 25 2021 Hapag-Lloyd SLB €300m Apr 15 2028 (Apr 2024) 2.5 100 B+311 2.5

STERLING Mar 25 2021 Advanz Pharma £335m Apr 1 2028 (Apr 2024) 6.25 100 G+572 6.25

56 International Financing Review March 27 2021

5 IFR Bonds 2376 p21-58.indd 56 26/03/2021 20:23:17 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

- - - A2 Danske/Swed - -

MS+2 area 1 - -/AAA/AAA BNPP/CMZ -

MS+5 area - - Aaa/-/-/ZKB AAA SKB -

MS ﬂat area - - Aaa/-/-/ZKB AAA SKB -

MS-5 area - - Aaa/-/-/ZKB AAA SKB -

- - - Aaa SEB -

7.25%/7.5% - - Caa2/CCC+ JPM/CS/BofA/GS - 5.5% area - - Caa2/B- BofA/DB/MS/CS - 5.125%/5.25% - - B3/B+/BB- BofA/JPM/WFS/Truist/MUFG/PNC/ - RBC/Southcoast/TD/FITB/Santan/ Key/Citizens/USB/Barc/SMBC Nikko 6.25% area, 6.125% - - B2/B+ CS/Barc/BofA/Jeff/JPM/MS/UBS - 5.25%/5.5% - - B1/B+/BB- JPM/BNPP/CS/DB/GS/Santan/ - Scotia 5.75% area - - B3/CCC+ JPM/BNPP/BofA/FITB/MUFG/ - SGAS/Truist/WFS/Citi/GS/MS 6.75%/7% - - B3/B+ GS/RBC/NBC/CIBC/TD - 5.75%/6% - - B3/B- JPM - 5.5%/5.75% - - B2/B BofA/GS/Citi/Scotia/DNB/SMBC/ - JPM/MS/Truist Mizuho/Fifth Third Securities/HSBC/R. Seelaus & Co/ Santander/PNC Capital Markets/BNP Paribas - - - B3/B JPM/WFS - 5.5%/5.75%, 5.5% - - Caa2/CCC+ JPM/Citi/WFS - 4.625% area, 4.5% - - Ba3/BB BofA/GS/STRH/WFS - 6%/6.25% - - Caa1/CCC+ GS/Citi/BofA/RBC -

4.375% area - - B1/BB+/BB+ Barc/BMO/RBC -

7.75%/8% - - B3/B Citi/WFS/JPM/RBC/Miz/CIBC/ - Citizens/GS/Regions/Truist

100.50-100.75, - - NR/B/BB- HSBC/GS/Citi/ALPHA/Ambrosia / - 100.50-100.75 Axia/CS/EFG/Pireaus/NBG/JPM 3.5% area, 3.25% - - Ba2/BB+/NR BNPP/DB/GS/HSBC/BcaIMI/Uni/ - (+/-0.125%) WPIR, ABN/ING/Santan 3.125% High 3s/4%, - - B1/BB- JPM/DB/Barc/BNPP/BofA/Citi/CA- - 3.5%/3.75%, 3.375% CIB/HSBC/ING/StCh Low 5%s, - - - Barc/GS/BcaIMI/JPM/Jeff/MS/RBC - 5%/5.25%, 5% 2.75% (+/-12.5), - - - Berenburg/DB/GS/CA-CIB/DZ/SG - 2.5%,

Low 6%s yld, 6.25% - - B3/B-/B+ Barc/GS/BcaIMI/JPM/Jeff/MS/RBC - area, 6.25%

International Financing Review March 27 2021 57

5 IFR Bonds 2376 p21-58.indd 57 26/03/2021 20:23:17 IFR’s ESG Financing Brieﬁng

IFR’s ESG Financing Briefing is a subscription service offering daily news, data and analysis on green and ESG financing from across the Refinitiv Capital Markets Insight Team.

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5 IFR Bonds 2376 p21-58.indd 58 26/03/2021 20:23:19 EMERGING MARKETS

China 60 India 60 Indonesia 60 Macau 61 Philippines 64 South Korea 64 Czech Republic 65 Kenya 65 Israel 66 Qatar 67 Brazil 67 Peru 68

FRONT STORY AFRICA Seplat ﬁnds hospitable reception

Bid for high-yield intact as issuers insulated from rates volatility Improving oil price helps support comeback trade after difﬁcult debut in 2018

Nigerian E&P company SEPLAT PETROLEUM The second banker had anticipated 30ûEXPECTSû3EPLATSû!MUKPE %SCRAVOSû found market conditions particularly SUCCESSûFORû3EPLATûINûTHEûBUILD UPûTOûTHEû PIPELINEûTOûSTARTûOPERATINGûINûMID ûAFTERû conducive and investor perceptions altered trade, helped by the rise in oil prices. Brent a series of delays. for its second deal compared to its debut, opened the year at US$51.50 per barrel and “We continue to believe that oil exports PRICINGûAû53MûlVE YEARûNON CALLûTWOûONû BYû&RIDAYûWASûQUOTEDûATû53 WILLûBEûMOREûRESILIENTûTOûPOTENTIALûPIPELINEû Thursday. h)ûTHINKûTHEûMARKETûYEAR TO DATEûHASû SABOTAGEûINûTHEû.IGERû$ELTAûAFTERûTHEûLAUNCHû 3EPLATû"""n ûBROUGHTûPRICINGûDOWNûBYû SHOWNûGREATûDEPTHûINûABSORBINGû3INGLEû"û OFûTHEûTHIRD PARTY OPERATEDû!MUKPE 25bp from initial price thoughts for a !FRICANûCREDITûANDû)ûEXPECTû3EPLATûTOûBEûAû Escravos pipeline, an alternative oil export LAUNCHûATû ûWHILEûTHEûDEALûWASûNEARLYû continuation of that theme buoyed by a route,” said S&P. TWICEûCOVERED RESURGENTûCRUDEûPRICEûANDûAûLONGER TERMû The result stood in contrast to the rough PIVOTûTOWARDSûGAS vûHEûSAID Despite a challenging backdrop ride that the company had endured in its h!ûSIGNIlCANTûAMOUNTûOFûEXISTINGûBONDSû the company delivered a INAUGURALûOUTINGûINû-ARCHû ûWHENûITû AREûHELDûBYûDOMESTICû.IGERIANûENTITIESûWHOû HADûTOûDOWNSIZEûWITHûAû53MûlVE YEARû WILLûBEûKEENûTOûPARTICIPATEûINûTHISû resilient performance and NON CALLûTWOûTHATûPRICEDûATûû)TûHADû RElNANCINGûEXERCISEû$ESPITEûAûCHALLENGINGû prudent balance-sheet hoped to raise US$400m – though S&P had backdrop the company delivered a resilient management indicated a US$500m deal. PERFORMANCEûANDûPRUDENTûBALANCE SHEETû management.” “Seplat remains reliant on the Trans Investors are still showing an Forcados pipeline as its main export route, IMPROVED CREDIT WHEREûITûREGULARLYûEXPERIENCESûLOSSESûDUEûTOû appetite for elevated yield )Nû3EPLATSûDEBUTûITûHADûFACEDûAûGRILLINGûFROMû HIGHûDOWNûTIMEû4HEûTWOûPIPELINESûnûTOGETHERû opportunities either lower down investors over its history, given its main WITHûTHEû7ARRIû2ElNERYûJETTIESûnûSHOULDû the capital structure or the EXPORTûROUTE ûTHEû&ORCADOSûPIPELINE ûWASûHITû reduce the effects on the company in the credit spectrum by several militant attacks during 2016, and event of sabotage.” the dismal track record of some peers from Fitch has a positive outlook, based on the One of the themes of the year has been THEûREGIONûSUCHûASû!FREN VIEWûTHATûTHEû!MUKPE %SCRAVOSûPIPELINEûWILLû THEûBIDûFORûHIGH YIELDûCREDIT ûBEGINNINGûWITHû 3EPLATûWAS ûTHOUGH ûUPGRADEDûBYûONEû diversify export routes and mitigate "ENINSûDEALûINûMID *ANUARY ûSOû3EPLATûlTTEDû NOTCHûBYû30ûINû*ANUARYû CASHmOWûVOLATILITY ûANDûTHEûCOMPANYSû the mould. “The credit has improved and they have a STRONGûlNANCIALûPROlLEû-OODYSûHASûAû h3EPLATûISûEXACTLYûWHATûTHEûMARKETûWANTSû TRACKûRECORDûINûTHEûMARKETûNOW vûSAIDûAûLEADû NEGATIVEûOUTLOOK ûINûLINEûWITHûTHEûSOVEREIGN to buy,” said a banker. h!LSOûTHEYûCALLEDûTHEIRûSûATûAûPRICEûABOVEû 4HEûLEADûSAIDûFAIRûVALUEûWASûDIFlCULTûTOûCALLû “The challenges are in high grade, the PARûANDûTHEYûAREûRElNANCING ûSOûALLûTHESEû FORûTHEûNEWûBOND ûALTHOUGHûINVESTORSûDIDû EASIESTûDEALSûAREûTHOSEûWITHûSOMEûYIELDûANDû aspects helped.” look at oil E&P company Kosmos Energy (B2/ RELATIVELYûSHORTûDURATIONû)FûYOUREûAû3INGLEû!û 4HEûUSEûOFûPROCEEDSûWILLûINCLUDEû "" û+OSMOSûHASûANû!PRILûûNOTEûBIDûATû QUASIûSOVEREIGNûTHENûTHATSûWHENûYOUREû REDEEMINGû3EPLATSûûNOTESûANDûREPAYINGû Thursday’s open at 7.60%, according to GOINGûTOûBEûPARTICULARLYûCAUTIOUS ûTHEûNEW DRAWINGSûUNDERûTHEû2EVOLVINGû#REDITû -ARKET!XESS issue concessions are going to be bigger &ACILITYû4HEûREDEMPTIONûPRICEûFORûTHEûSû h4HEûINVESTORûBASEûISûMOREûDIVERSEûNOWû than usual and you have to be more ISû ûPLUSûACCRUEDûANDûUNPAIDû for Seplat compared to its debut,” said the THOUGHTFULûAROUNDûEXECUTIONûnûWHENûYOUREû interest. lead. “You had the existing investors in the used to that being the easy part of the S&P revised its outlook to stable from SûWHOûWEREûCOMFORTABLEûWITHû market.” NEGATIVEûONû-ONDAY ûSAYINGûTHEûRElNANCINGû EXTENDINGûCREDITûTOûTHEMûFORûLONGER ûBUTûWEû !ûSECONDûBANKERûAGREEDûTHATû3EPLATûHADû TRANSACTIONûWILLûCREATEûADDITIONALûBORROWINGû ALSOûPICKEDûUPûNEWûACCOUNTSûWHOûHAVEû found a particularly opportune time to headroom. started looking at EM since the debut. The issue. “We believe Seplat can sustainably MAJORITYûOFûTHEûINVESTORSûWEREû%UROPEANû h)NVESTORSûAREûSTILLûSHOWINGûANûAPPETITEû DELEVERAGE ûWITHû30û'LOBALû2ATINGS REAL MONEYûACCOUNTS ûBUTûTHEREûWASûALSOû53û FORûELEVATEDûYIELDûOPPORTUNITIESûEITHERûLOWERû ADJUSTEDûDEBTûTOû%BITDAûBELOWûXûANDûFUNDSû EM real money in there.” DOWNûTHEûCAPITALûSTRUCTUREûORûTHEûCREDITû FROMûOPERATIONSûTOûAPPROACHINGûûINû Citigroup, JP Morgan, Standard Bank and spectrum,” he said. 2021, bolstered by expected improving oil Standard CharteredûWEREûGLOBALûCOORDINATORSû h)ûTHINKûTRADESûAREûTAKINGûSLIGHTLYûLONGERû prices, after tough conditions pushed debt Natixis, Rand Merchant Bank and Societe to execute and the investor engagement is TOû%BITDAûTOûXûASûOFû$ECEMBERûû vû GeneraleûWEREûBOOKRUNNERS more protracted but still constructive.” said S&P. Robert Hogg

International Financing Review March 27 2021 59

7 IFR Emerging 2376 p59-.indd 59 26/03/2021 18:59:16 5NTILû*UNEûLASTûYEAR û#!2û)NCSûCHAIRMANû -OODYSûSAIDûTHATû#!2SûCASHûBALANCEûOFû WASû#HINESEûBILLIONAIREû,Uû:HENGYAO ûWHOû 2MBBNûASûOFû$ECEMBERûûWASû ASIA-PACIFIC ALSOûCONTROLLEDûCAF¶ûCHAINû,UCKINû#OFFEE INSUFlCIENTûTOûCOVERûITSûSHORT TERMûDEBTûOFû ,UCKIN ûWHICHûLISTEDûONû.ASDAQûINûû 2MBBN ûWHICHûINCLUDESûAû2MBMû$IMû ANDûWASûDELISTEDûAûYEARûLATER ûINû$ECEMBERû 3UMûBONDûDUEûINû!PRILû(OWEVER ûITûEXPECTSû CHINA agreed to pay a US$180m penalty to the US #!2ûTOûMEETûITSûUPCOMINGûMATURITIES ûWITHû 3ECURITIESûANDû%XCHANGEû#OMMISSIONûTOû access to funding likely to improve after the CAR INC COMPLETES U-TURN settle charges of accounting fraud. takeover. 7HILEûTHEûTWOûCOMPANIESûWEREûNOTûDIRECTLYû 4HEûCOMPANYûREPAIDûAû53MûBONDûDUEû CAR INCûANDûITSûNEWûPRIVATEûEQUITYûOWNERSû connected, the failures in governance at on February 11, helped by proceeds from a looked set to turn a corner on last year’s ,UCKINûDREWûEXTRAûSCRUTINYûTOû#!2û)NC 53MûûlVE YEARûCONVERTIBLEûBONDûSOLDû TROUBLESûONû&RIDAYûWITHûITSûlRSTûINTERNATIONALû #!2û)NCûISûCURRENTLYûLISTEDûINû(ONGû+ONG û TOû-"+û0ARTNERSûINû*ANUARY BONDûISSUEûSINCEûITûWASûCAUGHTûUPûINûAû but shareholders this month approved a 30ûSAIDûOFFSHOREûBANKSûPROVIDEDû#!2ûAû scandal involving its former chairman. PROPOSALûBYûPRIVATEûEQUITYûlRMû-"+û US$50m facility this month, but that 4HEû#HINESEûCARûRENTALûCOMPANYûOPENEDû Partners to take the company private. This ONSHOREûBANKSûMAYûTAKEûLONGERûTOûREVIEWû BOOKSûFORûAû53ûDOLLARûTHREE YEARûNON CALLûTWOû FOLLOWEDûFAILEDûNEGOTIATIONSûWITHûTWOûSTATE THEûCOMPANYûANDûGRANTûNEWûCREDITûLINES offering at initial price guidance of the BACKEDûINVESTORS û3!)#û-OTORûANDû"EIJINGû ûAREAû!û53MûDEALûLATERûPRICEDûATû !UTOMOTIVEû'ROUPû"!)# 10%. Leads said the deal had anchor demand 4HEûTAKE PRIVATEûBUYOUTûISûEXPECTEDûTOû INDIA FOLLOWINGûCALLSûWITHûINVESTORSûEARLIERûINûTHEû OCCURûBYû*ULY ûBUTûBONDûINVESTORSûHAVEû WEEK already reacted positively to the change in IRFC ANNOUNCES MANDATE AGAIN #!2û)NCSûRETURNûTOûTHEûINTERNATIONALû OWNERSHIP bond market comes after its bonds plunged #!2û)NCSû53MûûDOLLARûBONDSû INDIAN RAILWAY FINANCE CORP started holding last year, as the coronavirus pandemic DUEûûTOUCHEDûAûLOWûCASHûPRICEûOFûJUSTûû INVESTORûCALLSûINû!SIA û%UROPEûANDûTHEû53ûONû dented demand for travel and an accounting INû!PRILûLASTûYEAR ûBUTûAREûNOWûTRADINGûJUSTû March 22 for a proposed US dollar SCANDALûATû53 LISTEDû,UCKINû#OFFEEûDESTROYEDû BELOWûPARû4HEûYIELDûONûTHEûSûDECLINEDû BENCHMARKûlVE YEARû!2EGû3ûBONDû CONlDENCEûINûITSûMANAGEMENT TOûAROUNDûûAFTERûTHEûNEWûBONDûMANDATEû offering. CICC, Goldman Sachs and JP MorganûWEREû WASûANNOUNCED ûFROMûûONû-ARCHû BNP Paribas, DBS, HSBC, MUFG, State Bank of joint global coordinators, bookrunners and !ûFUNDûMANAGERûWHOûJOINEDûINVESTORûCALLSû India London branch and Standard Chartered lead managers, alongside China Citic Bank SAIDûTHATû#!2û)NCûHADûSAIDûITûWANTEDûTOûPRINTû have been mandated as joint lead managers InternationalûASûCO MANAGER THEûNEWûDEALûATûAûûHANDLE and joint bookrunners. 4HEûNEWûSENIORû2EGû3ûBONDSûHAVEû !NOTHERûBUY SIDEûSOURCEûSAIDûTHATûSEEMEDû 4HEûPROPOSEDûSENIORûUNSECUREDûNOTESûWILLû EXPECTEDûRATINGSûOFû#AA"nû-OODYS30 û TOOûAGGRESSIVEûh)ûTHINKû-"+SûBEINGûAûBITû BEûDRAWNûUNDERûTHEûISSUERSûGLOBALû-4.û 30ûRATESû#!2û)NCûATû### ûBUTûSAIDûITûCOULDû greedy,” he said. programme. upgrade the issuer rating to B– if the issue is Even at a high yield, a successful bond 4HEûBORROWINGûARMûOFû)NDIASû-INISTRYûOFû SUCCESSFUL ûWHILEû-OODYSûHASûAûPOSITIVEû ISSUEûWOULDûCOMEûASûAûBIGûVOTEûOFûCONlDENCEû 2AILWAYS ûRATEDû"AA"""n"""n ûPULLEDûAû outlook on its rating. INûTHEûCOMPANYûASûITûWORKSûTOûREBUILDûITSû TWO TRANCHEû53ûDOLLARûBENCHMARKû2EGû3û 4HATûWOULDûMARKûAûREVERSALûOFûAû RELATIONSHIPSûWITHûLENDERSû bond offering earlier this month after failing DOWNWARDûTRENDûINûRECENTûYEARSûTHATûSAWû h#!2ûUSEDûTOûHAVEûTOTALûCREDITûLINESûOFûASû to attract demand at the desired pricing #!2û)NCSûCORPORATEûRATINGSûDROPûSIXûNOTCHESû MUCHûASû2MBBNn2MBBNû53BNnBN û against a volatile market backdrop. FROMû"A"" ûINûEARLYû FROMûONSHOREûBANKS ûWHICHûDIMINISHEDûORû 4HEûlVEûANDû YEARûSENIORûUNSECUREDû 4HEûDECLINEûWASûDUEûPARTLYûTOûWEAKENEDû WEREûSUSPENDEDûPOSTûAûFABRICATED SALESûPROBEû NOTESûWEREûMARKETEDûATûINITIALûPRICEû demand for car rentals as people cut back ATû,UCKINû#OFFEE vûWROTEû30 guidance of Treasuries plus 160bp area and their travel during the coronavirus pandemic, 0ROCEEDSûFROMûTHEûNEWûBONDûISSUEûWILLûBEû 215bp area, respectively, on March 8. but also due to the company’s high used to repay debt and for general corporate 4HEûPOSTPONEDûDEALûCAMEûJUSTûAFTERû)2&#û RElNANCINGûPRESSUREûANDûGOVERNANCEûRISKS purposes. SCRAPPEDûTHEûSALEûOFûAû2SBNû53M û lVE YEARûTWO MONTHûBOND ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE Asia-Paciﬁc Managing No of Total Share INDONESIA Managing No of Total Share bank or group issues US$(m) (%) bank or group issues US$(m) (%) BNI PRINTS RARE TIER 2 1 Citigroup 94 19,591.50 9.3 1 Citigroup 47 7,939.57 7.6 2 JP Morgan 101 19,517.58 9.3 2 HSBC 84 7,612.50 7.3 BANK NEGARA INDONESIA printed a rare Tier 2 3 HSBC 120 15,849.22 7.6 3 Standard Chartered 56 5,627.56 5.4 SECURITIESûOFFERINGûTHATûWASûCOVEREDûMOREû 4 Standard Chartered 84 11,303.24 5.4 4 JP Morgan 40 5,526.09 5.3 THANûFOURûTIMESûANDûPRICEDûmATûTOûFAIRûVALUE 5 BNP Paribas 72 11,096.71 5.3 5 BNP Paribas 45 4,319.30 4.1 4HEûSTATE OWNEDûBANKûPRICEDû53Mû 6 Morgan Stanley 40 7,104.97 3.4 6 Bank of America 34 3,732.03 3.6 lVE YEARûSUBORDINATEDûNOTESûATûPAR ûTOûYIELDû 7 Goldman Sachs 27 6,387.86 3.0 7 Credit Suisse 36 3,672.75 3.5 ûINSIDEûINITIALûPRICEûGUIDANCEûOFûTHEû 8 Credit Suisse 50 5,627.62 2.7 8 DBS Group 42 3,583.99 3.4 4.2% area. 9 Bank of America 48 5,580.96 2.7 9 Credit Agricole 35 3,324.41 3.2 4HEû2EGû3ûDEALûWASûTHEûSECONDû"ASELû))) 10 Deutsche Bank 51 5,542.88 2.6 10 Morgan Stanley 24 3,240.53 3.1 Total 344 209,560.21 compliant Tier 2 issuance from an Total 225 104,662.43 )NDONESIANûBANK ûAFTERû"ANKû4ABUNGANû Excluding equity-related debt. Excluding equity-related debt. .EGARAûRAISEDû53MûFROMûAûlVE YEARû

Source: Refinitiv SDC code: L4 Source: Refinitiv SDC code: L1 OFFERINGûINû*ANUARYûLASTûYEAR

60 International Financing Review March 27 2021

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h)TûWASûAûRAREûPAPERûWITHûAûQUASI SOVEREIGNû angle that gained demand from good quality REAL MONEYûMANAGERSûLOOKINGûTOûDIVERSIFYû Greenko nets ultra-low coupon AWAYûFROMû#HINA vûSAIDûAûLEAD 4HEûBANKERûSAIDûTHEûNEWûNOTESûPRICEDûmATû INDIA Renewable power producer achieves low pricing despite jumbo size to fair value by reference to Bank Tabungan .EGARASûSûTHATûWEREûSEENûATûAROUNDû Renewable energy producer GREENKO ENERGY around US$70bn of Chinese high-yield property û"ANKû.EGARAû)NDONESIASûNEWûNOTESûAREû HOLDINGS on Monday priced one of India’s largest bonds. rated a notch higher at Ba2 by Moody’s US dollar high-yield bonds, as demand for deals Investors have tended to push back at yields COMPAREDûWITHû"4. ûBUTûTHEYûHAVEûAROUNDûAû from the country’s infrastructure sector showed below 4% for Asian high-yield offerings, but YEARûEXTENSIONûINûTENOR no signs of slowing. still participated in this deal, encouraged by 4HEûNEWûBONDSûRECEIVEDûlNALûORDERSûOFû GREENKO DUTCH BV, a wholly owned offshore Greenko’s track record and strong ownership. over US$2.25bn from more than 160 subsidiary of the parent guarantor, priced Singaporean sovereign wealth fund GIC owns a accounts. US$940m green five-year non-call two majority stake in Greenko and Japanese financial 4HEûBONDSûWEREûBIDûSLIGHTLYûUPûINû amortising senior bonds at par to yield 3.85%, services group Orix completed the acquisition of SECONDARYûONûTHEIRûlRSTûTRADINGûDAYûONû inside initial guidance of the 4% area. a 21.8% stake earlier this month. Wednesday at 100.875. The bonds amortise at a rate of 3% of the Orders were over US$1.9bn from 97 accounts, The stricter mandatory interest deferral initial principal amount each year, giving a with US investors showing particular interest and LANGUAGEûONû)NDONESIANû4IERûûBONDSû weighted-average life of 4.7 years, and have taking 35% of the 144A/Reg S notes. A high- compared to Thai banks, for example, did expected ratings of Ba1/BB (Moody’s/Fitch). quality real money order book included some NOTûCAUSEûAûMAJORûPUSH BACKûFROMûINVESTORSû The coupon was the lowest to date for an orders of US$100m or more. INûTHATûITûWASûNOTûTHEûlRSTûOFFERINGûOFûTHATû Indian high-yield dollar bond, according to Greenko raised such a large size because type, according to the lead. IFR data, and offered a negligible new-issue proceeds will be used to call its US$350m ".)ûISûREQUIREDûTOûDEFERûINTERESTûONûTHEû premium even though the issue was double the 4.875% July 2022 and US$650m 5.25% July Tier 2 notes if it fails to meet its minimum typical offering size from the sector. 2024 bonds. It will realise cash of around capital requirements, although any deferred The two most recent green energy issues from US$100m from unwinding hedges from those interest is cumulative and compounding, India, bonds due 2027 from Clean Renewable bonds, and so did not need to fund the whole and there is a dividend stopper. Power and India Green Energy with respective redemption cost with the new issue. )NDONESIASû&INANCIALû3ERVICESû!UTHORITYû ratings of Ba2/BB– and Ba3/BB– from Moody’s That supported demand for the new deal, with has the discretion to permit the interest to and Fitch, were seen around 3.88% and 3.89%. some holders rolling over their exposure, while BEûPAID ûANDû.OMURASûTRADINGûDESKûWROTEû One of the leads estimated that Greenko others were comforted by the fact that Greenko that it expects the regulator to be relatively would normally trade as much as 25bp inside had actually reduced its outstanding debt by PROACTIVEûINûALLOWINGûIT ûGIVENûTHEûSYSTEMICû those names, but made adjustments for the issuing its largest bond yet. IMPORTANCEûOFû".) larger issue size and said that the new deal The bonds traded up at a cash price of around ".)ûISûTHEûFOURTH LARGESTûBANKûINûTHEû came flat to fair value. Another put fair value for 100.50 on Tuesday. country by deposits and the government has the new issue around 3.75%, but said a small Proceeds will be used to invest in the rupee- a majority shareholding. concession was needed to achieve the large size. denominated debt of onshore subsidiaries held 4HEûNEWûBONDSûHAVEûEXPECTEDûRATINGSûOFû The deal brings Indian offshore issuance to by a restricted group. The power projects in the "A""û-OODYS&ITCH ûANDûWILLûBEûWRITTENû US$11.1bn so far this year, according to IFR data, group have a total capacity of over 1.15GW, with DOWNûPERMANENTLYûIFûTHEû&3!ûDETERMINESû compared with US$13bn for the whole of last wind power accounting for 42%, solar 35%, and THEûBANKûTOûBEûNON VIABLEû4HEûBANKûISûRATEDû year and US$20.5bn for the record year of 2019. hydro 23%. rated Baa2/BBB–/BBB– at senior level. “It’s a question of price, but appetite for Barclays, Deutsche Bank and JP Morgan were Citigroup and HSBCûWEREûLEADûMANAGERSû Indian high-yield is still strong,” said the joint bookrunners and lead managers. DBS was and bookrunners. second bookrunner, noting that the amount of also a joint lead manager. outstanding paper is still small compared with Daniel Stanton TUNAS BARU HIRES FOR DOLLARS

0ALM OILûPRODUCERûTUNAS BARU LAMPUNG has h7EûDOûNOTûVIEWûTHEûBROADERû-ACAUû mandated arrangers for a proposed US MACAU gaming space valuations as attractive at the dollar bond offering. CURRENTûYIELDûLEVELS ûALTHOUGHûWEû CLSA, Mandiri Securities and MUFG are joint MGM CHINA PRINTS DOLLAR BOND understand that bond valuations continue to global coordinators, bookrunners and lead be supported by the gaming operators’ managers. #ASINOûOPERATORûMGM CHINA HOLDINGS has robust liquidity positions and investors’ )NVESTORûCALLSûINû!SIAûANDû%UROPEûBEGANûONû PRICEDû53MûOFû YEARûNON CALLûû NEEDûFORûPORTFOLIOûDIVERSIlCATION vû.OMURAû -ARCHû ûANDûAû53ûDOLLARû2EGû3ûSENIORûNOTESû SENIORûNOTESûATûûTOûYIELDû WROTEûINûAûNOTE OFFERINGûMAYûFOLLOW 4HATûWASûTHEûTIGHTûENDûOFûlNALûGUIDANCEûOFû There is a change of control put option at The proposed notes are expected to be n ûANDûWELLûINSIDEûINITIALûGUIDANCEû ûASûWELLûASûAûSPECIALûPUTûOPTIONûATûûIFû RATEDû"" û-OODYS&ITCH OFûTHEûûAREAû4HEûISSUERûISûRATEDû"A" certain events relating to the termination, 0ROCEEDSûWILLûBEûUSEDûTOûREDEEMû ""nûANDûTHEû!2EGû3ûNOTESûHAVEûEXPECTEDû RECESSION ûREVOCATIONûORûMODIlCATIONûOFûTHEû 53MûûBONDSûDUEû ûISSUEDû RATINGSûOFû"A" û-OODYS30 COMPANYSûGAMINGûLICENCEûOCCURû!LLûSIXûOFû THROUGHûWHOLLYûOWNEDûSUBSIDIARYû4",!û 4HEûlNALûPRICINGûWASûSLIGHTLYûTIGHTERûTHANû Macau’s casino licences are due to expire in )NTERNATIONALûWITHûAûGUARANTEEûFROMû4UNASû the fair value estimate of around 4.8% by *UNEûû "ARU ûANDû2PTRNû53M ûOFûDOMESTICû .OMURASûTRADINGûDESK ûWHICHûREFERENCEDû 0ROCEEDSûWILLûBEûUSEDûTOûREPAYûPARTûOFûAû BONDSûDUEûINûûANDû ûASûWELLûASû -'-û#HINASûOWNûCURVEûASûWELLûASûOTHERû revolving credit facility and for general OTHERûSHORT TERMûDEBT Macau casino operators. corporate purposes.

International Financing Review March 27 2021 61

7 IFR Emerging 2376 p59-.indd 61 26/03/2021 18:59:16 GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 26/3/2021 Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%) ASIA Mar 22 2021 Parkway Life Real Estate ¥3.3bn Mar 29 2027 0.51 100 - - Investment Trust Mar 22 2021 Anji Qicai Lingfeng Rural US$100m Mar 25 2024 2.6 100 - 2.6 Tourism Investment Co., Ltd Mar 22 2021 Greenko Dutch BV green US$940m Mar 29 2026 (Mar 2023) 3.85 100 - 3.85

Mar 22 2021 Hong Kong JunFa Property US$116m incr Dec 24 2022 11 99.963 - - (US$237m) Mar 22 2021 Naver Corp sustainable US$500m Mar 29 2026 1.5 99.794 T+68 1.543

Mar 23 2021 China SCE Group Holdings US$300m Sep 29 2024 (Sep 2023) 5.95 100 - 5.95

Mar 23 2021 GLP China Holdings US$700m Mar 29 2026 2.95 98.981 T+235 3.172

Mar 23 2021 SCI HK Development Ltd US$400m Mar 30 2024 2.95 99.858 - 3

Mar 23 2021 SCI HK Development Ltd US$150m Mar 30 2026 3.75 99.774 - 3.8

Mar 24 2021 New Development Bank Rmb5bn Mar 25 2024 3.22 100 - 3.22 sustainable Mar 23 2021 Bank Negara Indonesia US$500m Mar 30 2026 3.75 100 - 3.75 (Persero) Tbk PT T2

Mar 24 2021 Avic International Leasing US$500m Mar 30 2024 1.75 99.695 T+155 1.855

Mar 24 2021 Goho Asset Management US$100m Feb 29 2024 4.5 100 - 4.5

Mar 25 2021 MGM China Holdings Ltd US$750m Feb 1 2027 (Feb 2024) 4.75 99.97 - 4.75

Mar 25 2021 Olam International US$100m Mar 31 2026 0 100 - - Mar 25 2021 POWERCHINA US$500m Perpetual (Apr 2026) 3.08 100 T5+225.6 3.08 ROADBRIDGE GROUP CO LTD Mar 25 2021 Shriram Transport Finance US$225m incr Mar 13 2024 4.4 100.534 - 4.2 (US$725m) Mar 25 2021 Malayan Banking Rmb350m Mar 25 2022 3.1 0 - - EMEA Mar 24 2021 Czech Gas Networks €500m Mar 31 2031 0.875 99.81 MS+88/B+124.3 0.895 Investments Mar 24 2021 Boubyan Tier 1 Sukuk US$500m Perpetual (Oct 2026) 3.95 100 T+289.6 3.95 Limited AT1 Mar 24 2021 Doha Finance US$500m Mar 31 2026 2.375 99.738 MS+150/T+160.7 2.431

Mar 24 2021 IsDB sustainable sukuk US$2.5bn Mar 31 2026 1.262 100 MS+33/T+44 1.262

Mar 24 2021 Mizrahi Tefahot Bank T2 US$600m Apr 7 2031 (Apr 2026) 3.077 100 T+225 3.077 Mar 25 2021 Seplat Petroleum US$650m Apr 1 2028 (Apr 2023) 7.75 100 T+692.5 7.75 LATAM Mar 23 2021 Banco de Credito Del Peru US$500m Sep 30 2031 (Sep 2026) 3.125 99.915 T+245 3.267 Mar 25 2021 Fibra Uno US$300m Jan 30 2026 5.25 109.698 T+215 2.971 incr(US$800m) Mar 25 2021 Operadora de Servicios US$150m Nov 2 2025 8.25 101.625 - 7.751 Mega

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Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

- - - - DBS -

- - - - ALPHA/Haitong Intl/CEB Intl/CMBC - Cap/Dongxing/Everbright Sec 4% area 0 US$1.9bn, 97acs Ba1/-/BB Barc/DB/JPM Asia 41% US 35% EMEA 24%. FM 89% Ins/Pens/SWF 9% PB 2%. 99.963 (#) /11% - - -/-/B+ Haitong Intl/Guotai Junan/DBS/ - Vision/Zhongtai/Natx/CMBC Cap T+90 area - US$3bn, 134acs A3/A- MS/Mirae Asia 93%, Eur 7%. FM 68%, Bks 21%, Ins/PF 4%, Other 7%. 6.4% area, 5.95% - US$2.3bn, 132acs -/-/BB- HSBC/BofA/DB/Guotai Junan/BEA/ Asia 98%, EMEA 2%. FM 87%, Ins/SWF (the #) UBS 4%, Bks 1%, PB 8% T+275 area - US$5bn, 196acs -/BBB- MS/Citi Asia 92%, Eur 8%. AM/FM 76%, SWF/ Public 16% Bks/FI 7%, PB 1%. 3.3% area, 3% - - -/-/BBB Guotai Junan/HSBC/ABCI/BOCOMI/ - (the #) CMBC Cap/WingLung/CNCB HK/ ICBCI/Luso/SPDB 4% area, 3.8% - - -/-/BBB Guotai Junan/HSBC/ABCI/BOCOMI/ - (the #) CMBC Cap/WingLung/CNCB HK/ ICBCI/Luso/SPDB 3.14%/3.74% - - - BoC/ICBC/ABChina/BoCom/DB/ - DBS/CITIC 4.2% area, 3.75% - US$2.25bn, 160acs Ba2/-/BB Citi/HSBC Asia 73%, EMEA 25%, US offshore 2%. (the #) FM/AM 87%, Bks/Ins/Sov 7%, PB & other 6%. T+200 area, T+155 - US$1.3bn, 34acs -/-/A- BoC/CSI/DBS/Haitong Intl/ICBC/ Asia 98%, Eur 2%. Bks/FI 67%, FM/AM (the #) StCh/BOCOMI/CMBC Cap/Guotai 20%, PB 11%, CB 2%. Junan/Industrial/Natx/SPDB/Silk Road 4.5% area, 4.5% - - - CCBI/ABCI/Haitong Intl/StCh/ - (the #) Guoyuan/CISI/CICC/Everbright Sec/ Bison 5.125% area, - US$4.3bn Ba3/B+ BofA/BoC/ICBC/BoCom/BNPP/ - 4.75%/4.875% SMBC Nikko/UBS/Barc/DB/JPM/ Scotia/CCB/CICC Banco Nacional Ultramarino/Union Gaming ------3.55% area, 3.1% - US$2.4bn, 76acs -/-/BBB StCh/BoC/ABCI/BNPP/BOCOMI/ Asia 89%, EMEA/Offshore US 11%. FM/ (+/- 2) CCBI/Everbright HK/CICC/CSI/CLSA/ AM 34%, Bks/FI 32%, Corp 25%, Ins/ CMBC Cap/DBS/ICBCI SWF/PB 9%. 4.4% area, - US$460m, 60acs NR/BB-/BB Barc/BNPP/Citi/CS/DB/ENBD/ Asia 57%, US 22%, EMEA 21%. FM/PF 4.2%/4.25%, 4.2% HSBC/StCh 92%, Bks 6%, PBs 2%. - - - - Maybank/HSBC -

MS+110/+115, 8 €1.05bn NR/BBB+/BBB Citi/SG/Uni - MS+90 area 4.25% area, 3.95% - US$1.2bn - Citi/NBK/StCh/ADIB/Boubyan/ - yld ENBD/KAMCO/KIB/KFH MS+170 area, - US$1bn Baa1/NR/A ING/Barc/CS/DB/JPM/Miz/MUFG/ UK 48%, ME 35%, Eur 13%, Asia 4%. AM MS+150 (the #) QNB 57%, Bks/PB 31%, Ins 7%, Other 5%. MS+39 area, MS+37 - US$2.65bn Aaa/AAA/AAA Citi/HSBC/GS/Natx/SG/StCh/Warba MENA 61%, Asia 24%, Eur 13%, US area offshore/Other 2%. CB/OI 78%, Tsy 18%, FM/PB/Other 4%. T+250 area - - NR/BBB-/BBB Citi/GS 8% area, 7.75% yld - US$1.15bn B2/B/B- Citi/JPM/StBk/StCh/Natx/Rand/SG -

T+280, T+250 (+/-5) - US$1.9bn Baa1/BBB+ BofA/CREDICORP/JPM - T+237.5 area, T+220 9 US$810m Baa2/BBB GS/Santan - (+/-5) 101.625% (7.75% - - Ba2/BB- Barc/GS/MS - area), 101.625% (the #)

International Financing Review March 27 2021 63

7 IFR Emerging 2376 p59-.indd 63 26/03/2021 18:59:16 Bank of America, Bank of China Macau 4HEû-ALDIVESûHASûTWOûOUTSTANDINGû53û )NITIALûGUIDANCEûWASûAûlXEDûSPREADûOFû branch and ICBC (Macau)ûWEREûGLOBALû dollar bond lines, but its previous issues BPûOVERûYENûOFFER SIDEûSWAPS ûBUTûTHEû coordinators. appeared to be placed to a small group of GUIDANCEûWASûREVISEDûTOûBPnBPûTOû -'-û2ESORTSû)NTERNATIONAL ûWHICHûOWNSû INVESTORSû)Nû-AYûûITûPRICEDûAû53Mû DRAWûDEMAND and operates casino resorts in the US, lVE YEARûBONDûATû ûINûAûDEALûLEDûBYû SMBC Nikko is sole lead manager and HOLDSûAûMAJORITYûSTAKEûINû(ONGû+ONG LISTEDû "O#OMû)NTERNATIONAL ûTHENûTAPPEDûITûFORûAû bookrunner for the Samurai bond under -'-û#HINA further US$50m via the same arranger in the sovereign’s ¥250bn shelf registration November of that year. programme. )Nû!PRILû ûITûSOLDû53MûlVE YEARû The Philippines skipped a Samurai bond MALDIVES bonds at 5.5% in a private placement. The ISSUEûINûû)TSûPREVIOUSûDEALûINûTHATû BONDSûWEREûSOLDûTOû!BUû$HABIû&UNDûFORû MARKETûWASûAûcBNûFOUR TRANCHEûBONDû REPUBLIC HIRES FOR DOLLAR $EVELOPMENTûBYûARRANGERû&IRSTû!BUû$HABIû OFFERINGûINû!UGUSTû SUKUK ISSUE Bank. 4HEûNEWûBONDûHASûEXPECTEDûRATINGSûOFû )NûADDITIONûTOûTHEûNEWûISSUE ûTHEû "AA""" !nû-OODYS30*#2 The GOVERNMENT OF THE REPUBLIC OF MALDIVES Maldives is offering to buy back all of its has hired banks to arrange a potential US 53MûûBONDSûDUEû*UNEûûûATûPARû DOLLARûSUKUKûOFFERING ûINûWHATûISûSETûTOûBEû The same arrangers are dealer managers SOUTH KOREA ITSûlRSTûWIDELYûDISTRIBUTEDûOFFSHOREûBOND for the tender offer, and the deadline is 4HEûARCHIPELAGOûOFû ûISLANDSûINûTHEû -ARCHûû4HEûTENDERûOFFERûWILLûBEûFUNDEDû NAVER EMBRACES VOLATILITY )NDIANû/CEANûISûPLANNINGûAûlVE YEARû BYûTHEûPROPOSEDûNEWûISSUE FOR DEBUT BENCHMARKûSUKUKûISSUEûINû!2EGû3û format, even as the global coronavirus NAVERûWASûABLEûTOûLOOKûPASTûAûVOLATILEû PANDEMICûWEIGHSûONûITSûKEYûTOURISMû PAKISTAN rates environment and price its debut industry. offshore bond inside fair value, on the )Nû.OVEMBER û&ITCHûDOWNGRADEDûTHEû PAKISTAN HIRES FOR DOLLARS back of good demand for a rare SOVEREIGNûTOû###ûFROMû" ûWARNINGûOFûAû INVESTMENT GRADEûCREDIT sharp increase in the country’s debt The ISLAMIC REPUBLIC OF PAKISTAN has hired 4HEû3OUTHû+OREANûONLINEûSERVICESûlRM û burden as it invested in infrastructure BANKSûFORûAûPOTENTIALûTRIPLE TRANCHEû53û SEENûASûAûLOCALûEQUIVALENTûOFû'OOGLE ûPRICEDû development. Tourism accounted for dollar bond. Aû53MûûlVE YEARûSUSTAINABILITYû AROUNDûûOFû'$0ûBETWEENûûANDû 4HEûSOVEREIGN ûRATEDû""n"n ûHASû BONDûISSUEûATûûTOûYIELDûûORû ûBUTûARRIVALSûFORûTHEûlRSTûEIGHTû mandated Credit Suisse, Deutsche Bank, Treasuries plus 68bp, inside initial price MONTHSûOFûûWEREûDOWNûûFROMûTHEû Emirates NBD Capital, JP Morgan and Standard GUIDANCEûOFûPLUSûBPûAREA SAMEûPERIODûINû ûASûTHEûCORONAVIRUSû Chartered as joint lead managers and joint h)TSûSUCHûAûRAREûEVENTûFORûTHEûMARKETû pandemic affected global travel. BOOKRUNNERS ûANDû"/#û)NTERNATIONALûASû ANDûENGAGEMENTûWASûSTRONGûFROMû The proposed sukuk offering is expected joint lead manager and passive joint INVESTORS ûWITHûTWOûTIMESûCOVERAGEûINû TOûBEûRATEDû"ûBYû-OODYSûANDûWILLûBEû bookrunner. TERMSûOFûINDICATIONûOFûINTERESTûPOST ISSUEDûOFFûAû53BNûTRUSTûCERTIlCATEû !ûBENCHMARKû!2EGû3ûOFFERINGû ROADSHOW ûSOûWEûDECIDEDûTOûGOûAHEADûWITHû issuance programme. CONSISTINGûOFûlVE ûûANDû YEARûTENORSû the deal in a reasonably volatile market #OMPARABLEûDOLLARûBONDSûFROMûOTHERû UNDERû0AKISTANSû'-4.ûPROGRAMMEûWILLû and that calculation really paid off,” said a emerging market sovereigns range from FOLLOW lead. “We had the market almost to -ONGOLIASûS ûRATEDû""" ûATûAûYIELDûOFû )Nû&EBRUARYû0AKISTANûREACHEDûANû ourselves.” AROUNDû ûTOû!NGOLASûS ûRATEDû#AA AGREEMENTûWITHûTHEû)NTERNATIONALû /NLYûTWOûOTHERûISSUERSûFROMû!SIAûWEREû ###û-OODYS&ITCH ûATû Monetary Fund to put the country’s reform OUTûWITHûINTERNATIONALûBONDSûONû-ONDAYû 4HEûLASTûATTEMPTûBYûANû!SIANûFRONTIERû programme back on track. HIGH YIELDûCREDITSû'REENKOû$UTCHûANDû sovereign to access the dollar market The sovereign had earlier asked banks to (ONGû+ONGû*UN&Aû0ROPERTYû4HEû YEARû53û ended in failure – three times. SUBMITûPROPOSALSûFORûBONDSûORûSUKUK ûWITHû Treasury yield spiked to above 1.7% on The LAO PEOPLE’S DEMOCRATIC REPUBLIC, ANûEXPECTEDûISSUEûSIZEûOFû53BN -ARCHû ûBUTûLOOKEDûSTEADIERûTHROUGHOUTû RATEDû#AA###û-OODYS&ITCH ûTHISû -ONDAYûANDûDIPPEDûTOû month announced initial price thoughts .AVERSû2EGû3 ONLYûDEALûWASûCOVEREDûSIXû FORûAûlVE YEARûDOLLARûBONDûATûTHEûûAREA û PHILIPPINES TIMES ûRECEIVINGûlNALûORDERSûOFûABOUTû BEFOREûPULLINGûTHEûDEALû)TûHADûPREVIOUSLYû 53BNûFROMûûACCOUNTS TRIEDûTOûSELLûBONDSûINû$ECEMBERûANDû SOVEREIGN TO SELL DISCOUNT Leads estimated fair value at a 70bp *ANUARY SAMURAI spread over Treasuries, referring to dollar !ûLEADûMANAGERûONûTHEû-ALDIVESûDEALû bonds from private sector South Korean SAIDûTHATûWOULDûNOTûHELPûTHEûNEWûOFFERING û The REPUBLIC OF THE PHILIPPINES, rated Baa2/ COMPANIESûSUCHûASû+4û#ORPûANDû,'û#HEM û but expected investors to differentiate """ """""" !nû-OODYS30&ITCH2) INSTEADûOFû#HINESEûINTERNETûCOMPANIESû BETWEENûTHEûTWOû4HEûNEWûDEALûISûEXPECTEDû *#2 ûSTARTEDûMARKETINGûAûTHREE YEARû SUCHûASû"AIDUûTHATûTYPICALLYûPAYûAû#HINAû TOûBENElTûFROMû-IDDLEû%ASTûDEMAND ûINû 3AMURAIûBONDûONû4HURSDAY ûWITHûTHEûAIMû premium to account for geopolitical and particular. TOûPRICEûITûONû-ARCHûûATûTHEûEARLIEST other risks that are less of a concern in The Islamic Corporation for the Development With the coupon already set at 0.001%, it South Korea. of the Private Sectorû)#$ ûISûINITIALûMANDATEDû WILLûBEûAûDISCOUNTûBOND ûANûUNUSUALû +4û#ORPSûS ûISSUEDûLASTûYEAR ûANDûAû lead arranger for the Maldives sukuk issue, STRUCTUREûFORûTHEûCROSS BORDERûYENûMARKETû YEARûBONDûOFFERINGûDUEûINûûWEREû and Credit Suisse, Emirates NBD Capital, HSBC 4HEûSOVEREIGNûISûAIMINGûTOûRAISEûcBNû seen at about Treasuries plus 50bp and and ICD are joint global coordinators, lead 53M ûBUTûTHEûSIZEûCANûBEûRAISEDûIFû 64bp, respectively, according to managers and bookrunners. demand is strong. -ARKET!XESS

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.AVERSûNEWûBONDSûWEREûTRADINGûBPn +./#ûPREVIOUSLYûVISITEDûTHEû “The beauty of the credit is it’s very high 2bp tighter in the secondary market on international bond market in September QUALITY vûSAIDûTHEûBANKERûh)TSûBORINGûINûAû THEIRûlRSTûTRADINGûDAYûONû4UESDAY TOûRAISEû53MûFROMûAûTWO TRANCHEû good sense, as it’s very stable and in an Naver’s deal has expected ratings of Yankee. INDUSTRYûTHATûISûWELLûREGULATEDûANDû !!nû-OODYS30 ûINûLINEûWITHûTHEû protected.” ISSUER ûWHICHûOPERATESûSEARCH ûCOMMERCE û The notes are expected to be rated lNTECH ûCONTENTûANDûCLOUDûBUSINESSESû)Tû """ ûBYûBOTHû30ûANDû&ITCHû&ITCHûNOTCHESû REPORTEDûREVENUESûOFû7TRNû53BN û the senior unsecured ratings up one from ANDûNETûPROlTûOFû7BNûFORû EUROPE/AFRICA the issuer default rating, given the h!û3INGLEû!ûORûHIGHERûRATINGûISûVERYûRAREû dominant contribution of regulated in the [South] Korean corporate sector, ACTIVITIESûTOûGROUPû%BITDA ûWHICHû UNLESSûTHEûCOMPANYûISûAûlNANCIALûlRMûORû CZECH REPUBLIC strengthens recovery prospects for senior STATE OWNED ûANDûITSûGIVENûTOû creditors. CONGLOMERATE LINKEDûNAMESûLIKEû3AMSUNGû CGNI COMES BACK FOR MORE h4HEûSTABLEûOUTLOOKûREmECTSûOURû 3$3 vûSAIDûANOTHERûLEAD expectation of funds from operations net Moody’s said the company spent around CZECH GAS NETWORKS INVESTMENTS sold a €500m leverage on average of 6.5x for 2021–25,” W1.2trn this year for a business -ARCHûûNOTEûONû7EDNESDAY ûENTICEDû said Fitch. combination of its messaging app back into the market for similar reasons as “This assumes dividend payouts that are SUBSIDIARYû,).%ûWITHû9AHOOû*APANû.AVERSû THOSEûWHICHûDROVEûITSûDEBUTûTRADE CONSISTENTûWITHûTHEûSHAREHOLDERSû research and development spending came 4HEû YEARûBONDûOFFEREDûANûEXTENSIONû INTENTIONûTOûSIGNIlCANTLYûRE LEVERAGEû INûATûOVERû7TRNûLASTûYEAR ûEQUIVALENTûTOû OVERûTHEûõMû*ULYû ûWHICHûTHEû #'.)SûCAPITALûSTRUCTURE ûWHILEû over a quarter of its operating revenue, company placed last year at 140bp over maintaining a commitment to the current according to its annual report. SWAPSû4HEûSûHAVEûSUBSEQUENTLYû rating.” !LTHOUGHûINVESTMENTSûWILLûREMAINûHIGHû TIGHTENEDûTOûBPûOVERûSWAPS Citigroup, Societe Generale and UniCredit over the next 12 to 18 months, Moody’s #'.)û""" """ ûWHICHûISûTHEû WEREûBOOKRUNNERS does not expect this to have a material ,UXEMBOURG DOMICILEDûPARENTûOFû#ZECHû negative impact on the company’s balance 'RIDû(OLDING ûTHEûOWNERûANDûTHEûOPERATORûOFû sheet strength. Naver has a track record of THEûLARGESTûGASûDISTRIBUTIONûNETWORKûINûTHEû KENYA maintaining a reported net cash position #ZECHû2EPUBLIC ûPRICEDûTHEûNEWûISSUEûATû FORûANûEXTENDEDûPERIODûASûWELLûASûUSINGûITSû 88bp from a starting point of 110bp–115bp. STATE SEEKS LEADS FOR EUROBONDS treasury stock to partly fund its equity h4HEûDEBUTûDIDûPERFORMûVERYûWELLûANDû investments, according to the rating INVESTORSûWOULDûHAVEûBEENûHAPPYûWITHûTHEIRû KENYA is looking for lead managers for the agency. initial participation,” said a banker familiar ISSUANCEûOFûNEWû%UROBONDSûTOûRAISEû 0ROCEEDSûOFûTHEûNEWûBONDSûWILLûBEûUSEDû WITHûTHEûMATTER 53BNûANDûõBNûSEPARATELY ûTHEûlNANCEû FORûlNANCINGûORûRElNANCINGûELIGIBLEû “The quality of the credit speaks for itself ministry said on Tuesday. projects under the company’s sustainable ANDûASûAûRESULTûWEûMANAGEDûTOûPRICEûWITHûAû 4HEû%ASTû!FRICANûNATIONûSAIDûEARLIERûINû lNANCEûFRAMEWORKû.AVERûAIMSûTOûBEû ZEROûTOûLOWûSINGLEûDIGITSûNEW ISSUEûPREMIUM û -ARCHûITûWOULDûNOTûSEEKûTOûOVERHAULûITSû CARBON NEGATIVEûBYûûANDûWILLûINVESTûINû DEPENDINGûONûHOWûYOUûEXTENDûTHEûCURVEv DEBTûUNDERûAû'ROUPûOFûûINITIATIVEûBECAUSEû PROJECTSûINCLUDINGûRENEWABLEûENERGYûANDû 7HILEûTHEûORIGINALûDEALûWASûSIXûTIMESû ITûFEARSûTHATûWOULDûCURTAILûITSûABILITYûTOûRAISEû SUSTAINABLEûWATERûMANAGEMENTû)TûALSOû subscribed, books for this latest offering funds from global capital markets. PLANSûTOûSUPPORTû3-%SûANDûSTART UPSû PEAKEDûATûõBNûBEFOREûlNISHINGûATû 2EUTERSûREPORTSûTHATûTHEûlRSTûISSUE û THROUGHûEDUCATIONALûPROGRAMMES ûASûWELLû €1.05bn. WHOSEûTARGETûDATEûISûFORûTHEûCOMINGûWEEKS û ASûlNANCINGûFORûTHOSEûTHATûAREûAFFECTEDûBYû “The smaller book did not prevent us WILLûRAISEû53BN ûWHICHûCOULDûBEû the coronavirus pandemic. from tightening and keeping the quality expanded for purposes of managing h4HEûDEALûWOULDûHAVEûBEENûPOPULARû THERE vûSAIDûTHEûBANKERûh)TûWASûAûVERYûBUSYû liabilities, the Treasury said in the request regardless of the sustainability envelope DAYûINûTHEûMARKETûBUTûWEûGOTûATTENTIONûFROMû for proposals documents sent to banks. but that certainly helped, providing an the key investors in terms of quality and ADDITIONALûSWEETENERûFORûINVESTORS vûSAIDû SIZE ûDESPITEûQUITEûAûMATERIALûREDUCTIONûINû ALL INTL EMERGING MARKETS BONDS THEûlRSTûLEAD the price.” BOOKRUNNERS: 1/1/2021 TO DATE Morgan Stanley and Mirae Asset Daewoo 4HEûBANKERûSAIDûTHEûBOOKûWASûDRIVENû Europe/Africa WEREûACTIVEûBOOKRUNNERS PRIMARILYûBYû)'ûCORPORATEûBUYERS Managing No of Total Share #'.)ûISû OWNEDûBYûAûCONSORTIUMûOFû bank or group issues US$(m) (%) KNOC HIRES FOR YANKEE INVESTORSûLEDûBYû-ACQUARIEû)NFRASTRUCTUREû 1 JP Morgan 18 5,048.81 16.0 ANDû2EALû!SSETSû-)2! 2 Citigroup 10 2,940.24 9.3 KOREA NATIONAL OIL CORPORATION started Like the debut deal, the proceeds of last 3 BNP Paribas 12 2,691.61 8.5 holding investor calls on Thursday via Bank WEEKSûTRANSACTIONûWILLûPARTIALLYûBEûUSEDûTOû 4 HSBC 9 2,217.71 7.0 of America, Citigroup, Credit Agricole, HSBC, JP RElNANCEûACQUISITIONûFACILITIESûUSEDûINû 5 Goldman Sachs 3 1,934.93 6.1 Morgan and Standard Chartered for a US ACQUIRINGû#'( ûTHEûûOWNERûOFûTHEû 6 Standard Chartered 7 1,488.99 4.7 DOLLARûBONDûOFFERINGûWITHûEXPECTEDûTENORSû distribution assets. 7 Deutsche Bank 5 1,204.76 3.8 OFûlVEûANDORûûYEARS !û-)2! LEDûCONSORTIUMûACQUIREDûAû 8 SG 3 1,166.97 3.7 4HEûSTATE OWNEDûOILûANDûGASûDEVELOPER û REMAININGûûSTAKEûINû#'.ûINûû 9 Credit Agricole 3 954.21 3.0 RATEDû!A!!û-OODYS30 ûISûEXPECTEDûTOû FROMû27% ûlNANCINGûTHEûACQUISITIONûMAINLYû 10 Sumitomo Mitsui 5 916.99 2.9 USEûTHEûPROCEEDSûTOûRElNANCEûMATURINGû through bank debt and equity provided by Total 32 31,539.35

BONDSû+./#ûHASûAû53MûûlVE TWOûNEWûSHAREHOLDERS û!LLIANZûANDû"RITISHû Excluding equity-related debt. YEARûBONDûDUEûINû!PRIL #OLUMBIAû)NVESTMENTû-ANAGEMENT Source: Refinitiv SDC code: L2

International Financing Review March 27 2021 65

7 IFR Emerging 2376 p59-.indd 65 26/03/2021 18:59:17 4HEûSECONDûISSUE ûWHICHûWILLûRAISEûõBN ûISû NON CALLûSIXû4IERûûISSUEûFROMû"ANKû,EUMIû WORSTûTIMEûISûWHENûYOUREûFORCEDûOUTûANDû likely to be issued before the end of the !! ûLASTûYEAR don’t have options,” he said. QUARTERûENDINGûINû$ECEMBERûTHISûYEAR ûTHEû 4HATû4IERûûWASûTHEûNATURALûREFERENCEû h#REATINGûTHATûPRESENCEûINûTHEû ministry said in the documents, adding that POINTûFORûPRICINGûWHENûITûCAMEûTOû-IZRAHISû international markets offers the chance to could also be expanded for liability DEALû-IZRAHISûNOTEûWASûlRSTûMARKETEDûATû tap another investor base, and also at levels management purposes. 250bp over Treasuries. THATûAREûVERYûATTRACTIVEûFORû)SRAELIûBANKSv 4HEûNEWûISSUESûhAREûMEANTûTOûlNANCEûTHEû h-IZRAHIûDOESûLOOKûINTERESTING ûGIVENû Citigroup and Goldman Sachs WEREûGLOBALû budget for the relevant years and Bank Leumi’s Tier 2 is around Treasuries coordinators. restructure or smooth Kenya’s external debt PLUSûBPnBP vûSAIDûANûINVESTOR MATURITYûPROlLEûTHROUGHûRElNANCINGûSOMEû ,AUNCHûFORû-IZRAHIûCAMEûATû4REASURIESû of the existing commercial debts”, the plus 225bp. KUWAIT ministry said. h)TûWASûAûCROSSOVERûINVESTORûBASE ûANDû THOSEûWHOûBUYûYOURû(3"#û4IERûSûORû BOUBYAN PLAYS IT SAFE IN TOUGH 3TANDARDû#HARTEREDû4IERûSûWOULDûVERYû AT1 MARKET much look at this sort of thing,” said the banker. +UWAITSûBOUBYAN BANKûWASûABLEûTOûHITûITSûSIZEû MIDDLE EAST h9OUûCOULDûARGUEû"ANKû,EUMIûWOULDûHAVEû ANDûPRICINGûTARGETSûONûANû!4ûSUKUKûISSUEû landed at 225bp, taking into account the LASTûWEEKûEVENûTHOUGHûMOSTûRECENTû'##û DIFFERENTûCALLûDATES ûANDû-IZRAHIûISûRATEDûAû issues in the structure have ISRAEL NOTCHûLOWERûBYû30 ûSOûITSûAûGREATûOUTCOMEû underperformed. People have very good appetite for these The bank priced a US$500m perpetual MIZRAHI SERVES UP ENTICING TYPESûOFûHIGH QUALITYûCREDITSv NON CALLûSIXûNOTEûATû ûWHICHûWASûBPû TIER 2 COCKTAIL -IZRAHISû4IERûûNOTEûISSUEûISûEXPECTEDûTOû inside initial marketing levels. BEûRATEDû"""n"""û30ûSAYSû-IZRAHIûISû h4HEYûWEREûABLEûTOûHITûTHEûUPPERûENDûOFûTHEIRû MIZRAHI TEFAHOT BANKûSHOWCASEDûTHEûMANYû )SRAELSûTHIRD LARGESTûBANK ûWITHûAûSTRONGû approvals and print inside 4%,” said a lead. ATTRACTIONSûOFû)SRAELIûBANKûDEALSûONû franchise, a leading position in mortgage "OUBYAN ûWHOSEûMAINûSHAREHOLDERûISû 7EDNESDAY ûGOINGûBEYONDûITSûINITIALûSIZEû lending, and a large and granular deposit .ATIONALû"ANKûOFû+UWAIT ûISûAûRELATIVELYû TARGETûWITHûAû53Mû YEARûNON CALLûlVEû base. DEFENSIVEûPLAYûFORûINVESTORSûh)TSûANû Tier 2. 3IMILARûTOû3OUTHû!FRICANûLENDERS û)SRAELSû UNCONTROVERSIALûBANK ûOWNEDûBYû."+ ûDOINGû The bank’s initial target for its debut banks don’t need to raise US dollar senior AûSUKUKû)TûWASûTHEûRIGHTûTRADEûINûTHEûCONTEXTû INTERNATIONALûOFFERINGûWASûFORûAû53Mû funding so much as capital to hedge their of the market,” said the lead. trade, but a strong order book of US$1.85bn balance sheets and diversify their capital 2ECENTû!4SûFROMûTHEûREGIONûHAVEû MEANTûITûWASûABLEûTOûPUSHûBEYONDûTHAT base. STRUGGLEDûTOûPERFORMû!ûNON CALLûSIXû!4û “People are very constructive on the h)TûWASûAûSTRATEGICûTHINGûFORûTHEM ûWANTINGû SUKUKûISSUEûFROMû.#"ûTHATûPRICEDûINû*ANUARYû )SRAELIûBANKINGûSECTORûANDû)SRAELûISûSEENûASûAû to diversify,” said a second banker. “The ISûBIDûATû ûFORûEXAMPLE ûWHILEû."+Sû strong and improving credit story,” said a )SRAELIûDOMESTICûMARKETûISûBIGûCOMPAREDûTOû NON CALLûSIXûFROMû&EBRUARYûISûATû BANKERûFAMILIARûWITHûTHEûMATTER many countries but you have four big banks 4HEûSELL OFFûINûRATESûHASûMADEûSOMEû “You also have a degree of scarcity of WITHûAûSIGNIlCANTûAMOUNTûOFû4IERûû investors nervous about their exposure to )SRAELIûRISK ûEVENûWITHûTHEûGASûlELDSû;PROJECT requirements. When you prove to the THEû!4ûMARKETûINûGENERALûOVERûTHEûPASTûFEWû RELATEDûBONDSûFROMû$ELEKû$RILLINGûANDû domestics that they’re not the only game in WEEKS ûTHOUGHû"OUBYANûWASûABLEûTOûGETû Energean], so it’s offering high quality from TOWN ûITSûVALUABLEûTOûTHESEûBANKSv US$1.2bn of demand. AûCOUNTRYûWITHûAûDEFENSIVEûPROlLEûANDûONEû 4HEûlRSTûBANKERûSAIDûTHATûALLOCATIONSûTOû h4HEû'##ûISûONEûOFûTHEûMOREûINVESTORû that is underrepresented in the market.” LOCALûACCOUNTSûWEREûKEPTûUNDERû friendly jurisdictions in terms of the point of -IZRAHIû!n! ûBECAMEûONLYûTHEûSECONDû “There’s value in establishing yourself in NON VIABILITY ûWHILEûTHEûSUKUKûFORMATûGETSûAû )SRAELIûLENDERûTOûISSUEûINûTHEûINTERNATIONALû international markets and it’s better to do strong local bid,” said the lead. BONDûMARKET ûFOLLOWINGûAû53Mû YEARû THISûSTUFFûWHENûTHEûPRESSUREûISûNOTûONû4HEû (EûSAIDûTHATûINVESTORSûCONSIDEREDû!4Sû FROMû."+ û$UBAIû)SLAMICû"ANKûANDû.#"û ALL INTL EMERGING MARKETS BONDS INTERNATIONAL ISLAMIC FINANCE DEBT THOUGHûITûWASûDIFlCULTûTOûBEûPRECISEûABOUTû BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE FAIRûVALUE ûWHICHûHEûPUTûINûTHEûHIGHûS Middle East Managing No of Total Share Boubyan Bank also has a February 2025 Managing No of Total Share bank or group issues US$(m) (%) SENIORûSUKUKûTHATûWASûBIDûATûûAHEADûOFû bank or group issues US$(m) (%) THEû!4ûISSUANCEûONû7EDNESDAY 1 Standard Chartered 3 607.14 14.3 &AISALû!LI ûSENIORûPORTFOLIOûMANAGERûATû 1 Standard Chartered 19 3,901.69 12.4 2 Goldman Sachs 2 535.71 12.6 !ZIMUT ûSAIDûh4HEûISSUERûHASûAûSOLIDûCREDITû 2 Citigroup 16 3,417.73 10.8 3 Citigroup 2 535.71 12.6 PROlLEû4HEREûISûLIMITEDûUPSIDEûTHOUGHûGIVENû 3 HSBC 16 3,301.86 10.5 4 HSBC 1 357.14 8.4 THEûPRICINGûLEVELû(OWEVERûGIVENûTHEûLACKûOFû 4 JP Morgan 15 2,783.33 8.8 5 Warba Bank 1 357.14 8.4 SUKUKûISSUANCEûTHISûYEARûASûWELLûASûINmOWSû 5 Goldman Sachs 7 2,030.97 6.4 6 Natixis 1 357.14 8.4 into the asset class, investors are likely to 6 BNP Paribas 4 1,285.38 4.1 7 SG 1 357.14 8.4 7 Natixis 4 969.25 3.1 8 National Comml Bk 2 250.00 5.9 support the bonds.” 8 National Comml Bk 3 960.77 3.0 9 Emirates NBD 2 250.00 5.9 4HEû!4 ûWHICHûWASûUNRATED ûWASûQUOTEDû 9 Emirates NBD 8 919.96 2.9 10 JP Morgan 1 178.57 4.2 around par on the bid side after being free to 10 Credit Suisse 6 841.19 2.7 Total 3 4,250.00 trade. Total 40 31,571.06 4HEûlRSTûCALLûDATEûISû/CTOBERûûûSIXû Excluding equity-related debt. MONTHûPARûCALL ûWHILEûTHEûlRSTûRESETûDATEûISû Excluding equity-related debt. Source: Refinitiv SDC code: L5 Source: Refinitiv SDC code: J27 !PRILûû

66 International Financing Review March 27 2021

7 IFR Emerging 2376 p59-.indd 66 26/03/2021 18:59:17 EMERGING MARKETS MIDDLE EAST

0ROCEEDSûWILLûGOûTOWARDSûANûANY AND ALLû THATûWILLûPAYûDOWNûSECUREDûDEBTûANDûRECEIVEû sustainable investments. We had a sound tender offer on its US$250m 6.75% Tier 1 AûRATINGSûBENElT BALANCEûOFûBUYERSûFROMû-%.! û!SIAûANDû callable in May. The tender offer expires on The company is rated Ba2 by Moody’s and Europe.” -ARCHû "" ûBYû&ITCHû)TSû53MûûSENIORû 4HEû-ARCHûûNOTEûEXTENDSû)S$"SûCURVEû !TûSENIORûLEVEL ûTHEûBANKûISûRATEDû!û unsecured sukuk due November 2024, BEYONDûITSû53BNû*UNEûS ûPLACEDûINûAû STABLE û!nûSTABLE û! ûNEGATIVE PLACEDûINûAûDEBUTûSALEûINû.OVEMBERû û debut sustainability sukuk transaction last Citigroup, NBK Capital and Standard HADûBEENûMARKEDûONEûNOTCHûDOWNûBYû YEARû4HEûSûWEREûBIDûAROUNDûBP û CharteredûWEREûGLOBALûCOORDINATORSûANDûWEREû Moody’s at Ba1. The sukuk are subordinate ACCORDINGûTOû4RADEWEB joined on the books by ADIB, Boubyan Capital, to secured debt in the company’s capital 5NDERûITSûSUSTAINABLEûlNANCEûFRAMEWORK û Emirates NBD Capital, Kamco Invest, KIB and structure. )S$"ûCOMMITSûTOûTHEûlNANCINGûANDORû KFH Capital. “Like the debut deal, this is to build an RElNANCINGûPROJECTS ûINCLUDINGûRENEWABLEû INTERNATIONALûPRESENCEûBUTûALSOûPAYûDOWNû energy, clean transportation, energy secured bank debt,” said a banker familiar EFlCIENCY ûACCESSûTOûlNANCEûFORûMICRO ûSMALLû QATAR WITHûTHEûMATTER and medium enterprises and expanding h4HEYûAREûPAYINGûDOWNû53MûOFû access to healthcare. DOHA BANK REAPPEARS ON SECUREDûBANKûDEBTûACROSSûANûAMOUNTûDRAWNû )S$BûHASûANûAPPROVEDûFUNDINGûPROGRAMMEû DOLLAR SCENE DOWNûFROMûANû2#&ûANDûAûSECUREDû)SLAMICû of US$4.7bn for this year, having raised FACILITYû)TûMEANSûTHEûNOTCHINGûFROMû-OODYSû US$5.5bn last year. DOHA BANKûBROKEûAûNEARûDECADE LONGûABSENCEû is removed and the instruments upgraded.” Citigroup, HSBC, Goldman Sachs, Natixis, FROMûTHEûDOLLARûMARKETûONû7EDNESDAYûWITHû Moody’s upgraded the rating on the Societe Generale, Standard Chartered and Warba Aû53MûlVE YEARûSENIORûUNSECUREDûONû sukuk to Ba2 on March 25. The upcoming Bank WEREûLEADûMANAGERSûANDûBOOKRUNNERS 7EDNESDAYûTHATûWASûABOUTûTWICEûSUBSCRIBED sukuk are expected to be rated Ba2 by 4HEûBONDûWASûPRICEDûATûSWAPSûPLUSûBP û -OODYSûANDû"" ûBYû&ITCH HAVINGûBEENûlRSTûMARKETEDûATûTHEûBPû (OWEVER ûBOTHû-OODYSûANDû&ITCHûHAVEûAû area. negative outlook on the company. h)TûWASûPRETTYûSTRAIGHTFORWARDûINûTHATû “Like everything in this sector it’s been a AMERICAS INVESTORSûWEREûLOOKINGûFORûAûPREMIUMûTOû CASEûOFûNAVIGATINGûTHEû#OVIDûENVIRONMENTû #"1 vûSAIDûAûLEAD BUTûTHEYVEûDONEûVERYûWELL vûSAIDûTHEûBANKER &AIRûVALUEûFORûAûlVE YEARûFROMû1ATARSû !RABIANû#ENTRESûWENTûPUBLICûINûû)TSû BRAZIL #OMMERCIALû"ANKû!""" ! ûWASûSEENû OFFERINGûWASûTHEûKINGDOMSûTHIRD BIGGESTû)0/û AROUNDûBPû!ûBANKERûAWAYûSAIDû$OHAû SINCEû3AUDIûLENDERû.ATIONALû#OMMERCIALû PIONEER SUZANO PLANS NEW Bank’s deal looked like it had started cheap, Bank raised US$6bn in 2014, according to SUSTAINABILITY BOND IN 2021 ATûAROUNDûBPnBPûBACKûOFû1ATARû.ATIONALû 2ElNITIVûDATA "ANKû!A!! For the debut deal, pricing comparables "RAZILIANûPULPûANDûPAPERûCOMPANY SUZANO is $OHAû"ANKûISûRATEDû"AAûBYû-OODYSûANDû!û INCLUDEDûOTHERûMALLûOPERATORSûINûTHEû'## û LIKELYûTOûCOMEûBACKûTOûTHEûSUSTAINABILITY BYû&ITCH ûWITHûSTABLEûOUTLOOKSû4HEû1ATARû SUCHûASû%MAARû0ROPERTIESûANDû-AJIDû!L linked bond market this year, the company’s )NVESTMENTû!UTHORITYûHOLDSûAûûSTAKE &UTTAIM ûALTHOUGHûTHEYûWEREûNOTûSEENûASû #&/û-ARCELOû"ACCIûTOLDû)&2ûLASTûWEEKû Moody’s said at the beginning of March PERFECTûlTS h7EûHAVEûNOTHINGûALREADYûDElNEDûBUTûITûISû THATû1ATARIûBANKSûNETûPROlTSûHADûREMAINEDû !RABIANû#ENTRESûSûAREûBIDûATû û LIKELYûTHATûWEûWILLûGOûBACKûTOûTHEûMARKETû resilient despite higher provisioning ACCORDINGûTOû4RADEWEB WITHûAûSUSTAINABILITY LINKEDûINSTRUMENTûINû charges. Credit Suisse, Goldman Sachs and HSBC are the coming months,” said Bacci. "OOKSûFORû$OHAû"ANKSûBONDûWEREûAROUNDû global coordinators and bookrunners. Albilad The company is looking to potentially sell US$1bn. Investment, JP Morgan, Kamco Invest and Warba AûDOLLARûSUSTAINABILITY LINKEDûBONDûLATERûTHISû h4HEûBESTûEXECUTIONûWASûTOûPUTûASûMUCHûASû Bank are lead managers and bookrunners. year, and is also analysing its social bond possible into international hands,” said the FRAMEWORK ûHEûADDEDû LEADûh7EûCOULDûHAVEûUPSIZED ûBUTûITûWOULDû 3UZANOûBECAMEûTHEûlRSTûEMERGINGû HAVEûMEANTûITû;WOULDûHAVE=ûBECOMEûMOREû REGIONAL markets issuer to sell the structure, and only local.” THEûSECONDûISSUERûGLOBALLY ûWHENûITûPRICEDûAû )NVESTORSûFROMûTHEû5+ûTOOKû ûWHILEû ISDB UPS THE SIZE AND TRIMS THE PRICE 53Mûû YEARû3,"ûLASTû3EPTEMBERû ûWENTûTOûTHEû-IDDLEû%AST ûûTOû%UROPEû 4WOûMONTHSûLATERûITûRETURNEDûTOûTHEûMARKETû ANDûûTOû!SIA The ISLAMIC DEVELOPMENT BANK trimmed half a to tap the bond for an additional US$500m. ING wASûGLOBALûCOORDINATORûANDûITûWASû DOZENûBASISûPOINTSûFROMûINITIALûPRICEû 4HEûORIGINALûTRANSACTIONûDREWûINTERESTûOFûAû joined as a lead manager by Barclays, Credit THOUGHTSûONû7EDNESDAYûONûITSûWAYûTOû about US$7bn in orders. Since late last year Suisse, Deutsche Bank, JP Morgan, Mizuho pricing through its curve and launching a there have been a number of SLBs sold. Securities, MUFG and QNB Capital. 53BNûlVE YEARûSUSTAINABILITYûSUKUK h7EVEûBEENûUSINGûTHEûSUSTAINABILITY )S$"û!AA!!!!!! ûPRINTEDûTHEûNOTEûATû LINKEDûSTRUCTURESûFORûOURûLASTûDEALS ûWHICHûISû SWAPSûPLUSûBP ûHAVINGûBUILTûUPûAûBOOKûOFû PROVINGûTOûBEûVERYûEFlCIENTû4HEûMARKETûHASû SAUDI ARABIA more than US$2.65bn, including US$100m been demanding those structures of lead orders. SIGNIlCANTLYûANDûTHATûISûTURNINGûINTOûCOSTûOFû ARABIAN CENTRES LOOKS TO h!ûGREATûRESULTûOVERALLûFORûTHEIRûLARGESTû capital reduction for us,” said Bacci. UNSHACKLE RATINGS benchmark issuance ever and their largest The company has made strides in its SUSTAINABLEûOFFERINGûTOûDATE vûSAIDûAûLEADûh)Tû deleveraging efforts and plans to continue 3AUDIûMALLSûOWNERûANDûOPERATORûARABIAN WASûPRICEDûATûANûATTRACTIVEûFUNDINGûCOSTûANDû WITHûTHATûFOCUSûTHISûYEAR ûSAIDû"ACCI CENTRESûISûPLANNINGûAûLONGûlVE YEARû THEûLARGERûBENCHMARKûSIZEûISûALSOûANû #ASHmOWûSTEMMINGûFROMûHIGHERûPULPû benchmark senior unsecured sukuk offering illustration of the increased demand for PRICESûWILLûBEûUSEDûINûûFORûDEBTû

International Financing Review March 27 2021 67

7 IFR Emerging 2376 p59-.indd 67 26/03/2021 18:59:17 reduction purposes. The company does not Wednesday, up from a price of 127.66 and h)Nû û-EGASûRETURNûONûAVERAGEû HAVEûANYûPRESSINGûBONDûLIABILITIESûWITHûITSû 5.05% yield on March 22, according to ASSETSûDECLINEDûASûBUSINESSûVOLUMESûSLOWEDû SHORTEST DATEDûNOTEûCOMINGûDUEûINûû)Nû -ARKET!XESSûDATA and provisions increased moderately, but BETWEENûNOWûANDûTHEN ûTHEûCOMPANYûHASû it has remained stronger than its historic minor bank debt. PERFORMANCEûFORûTHEûPERIODû vûREADû 2ECENTLYû3UZANOûHASûSEENûAûSTRINGûOFû MEXICO the report. positive rating changes given its successful Mega made its dollar debut issuance deleveraging strategy and a recovery in pulp OPERADORA DE SERVICIOS MEGA WHENûITûCAMEûTOûTHEûPRIMARYûMARKETû prices. PAYS UP ON 2025 TAP FORûTHEûlRSTûTIMEûINû&EBRUARYûOFû û -OODYSûUPGRADEDûITûTOû"AAûFROMû SELLINGûTHEû53MûOFûSûATûPARûTOû Ba1 on March 17. S&P and Fitch, Mexican leasing company OPERADORA DE yield 8.25%. MEANWHILE ûHAVEûREVISEDûTHEIRûOUTLOOKS SERVICIOS MEGA paid a large concession on a Barclays and Morgan Stanley declined to of the company to stable from negative in tap of its debut 8.25% 2025 bond last COMMENTû'OLDMANû3ACHSûDIDûNOTûRESPONDû THEûPASTûFEWûWEEKSû4HEYûBOTHûRATEûTHEû Thursday. immediately to a request for comment. company at BBB–. The company, rated Ba2/BB–, tapped its -OODYSûEXPECTSûTHEûCOMPANYûWILLûREACHû 53MûûSENIORûUNSECUREDûNOTEûATû XûTOTALûDEBT%BITDAûBYûTHEûENDûOFû ûAû ûTOûYIELDû ûWITHûPRICINGû PERU target Bacci says is feasible and the company unchanged from initial price thoughts. WILLûMEETûATûSOMEûPOINTûTHISûYEARû Leads Barclays "$ , Goldman Sachs, and BCP BREAKS MARKET LULL WITH TIER 2 “2021 is set to be a very important turning Morgan StanleyûLANDEDûPRICINGûSIGNIlCANTLYû OFFERING point for us in terms of our capital structure. WIDEûTOûWHEREûTHEûBONDûTRADEDûASûOFûLASTû 7EVEûBEENûWORKINGûONûAûHIGHERûTHANûIDEALû 7EDNESDAYSûCLOSEûATûAûPRICEûOFûûTOû BANCO DE CREDITO DEL PERU (BCP) broke through leverage since the Fibria merger,” said Bacci YIELDû ûSAIDûAû.EWû9ORKûANALYST AûNEARLYûTWO WEEKûQUIETûPERIODûINûTHEû,ATINû REFERRINGûTOûTHEûMERGERûWITHûITSûPEERûINûEARLYû h)TSûAûPRETTYûATTRACTIVEûYIELDûFORûINVESTORSû !MERICANûPRIMARYûMARKET ûOFFERINGûAû4IERû "UTûTHEYûPAIDûAûVERYûHIGHûPRICEû)Mû 2 note issue to fund a concurrent tender h,ASTûYEARûINûAûSCENARIOûWHEREûBONDûPRICESû MYSTIlEDûASûTOûWHYûTHEYûWOULDûPAYûTHATû OFFERûLASTûWEEK WEREûVERYûLOW ûTHEûLOWESTûINûTHEûLASTûû MUCHû"UTûITûLOOKSûTHEYûWILLûRAISEûWHATûTHEYû The Peruvian bank approached investors YEARS ûWEûMANAGEDûTOûREDUCEûOURû need,” he said. WITHûAû53Mû YEARûNON CALLûû indebtedness by US$1.2bn dollars, and the 30ûSAIDûTHEûCOMPANYûWASûRAISINGûTHEû ISSUEûLASTû4UESDAY ûWHICHûWASûPRICEDûATû speed of debt reduction is increasing this CASHûTOûlNANCEûGROWTH BPûOVERûlVE YEARû4REASURIESûTOûYIELDû year as pulp prices are recovering very fast,” The rating agency noted that the . he added. COMPANYûHASûFEWûOTHERûSOURCESûOFûFUNDING û 0RICINGûWASûTIGHTENEDûBYûSOMEûBPû Secondary bonds for the company have apart from this single unsecured note. With from initial price thoughts of Treasuries LARGELYûTRADEDûSIDEWAYSûSINCEûTHEûRATINGSû THEûADDITIONALû53MûTAPûTHEûBONDûWILLû plus 280bp area. MOVES ûWITHûSOMEûOFûTHEûDEVELOPMENTSû account for 64% of the company’s total "#0ûSOLDûAûSIMILARûTRANSACTIONûWHENûITû already priced into the notes, said Lucror’s funding, S&P said. WASûLASTûINûTHEûMARKETûINû*UNEûû4HATû 3EBASTIANû(OFMEISTERûINûAûREPORTû h)NûOURûOPINION ûITûWILLûBEûAûCHALLENGEûFORû BONDûISSUEûWASûTRADINGûATûAû: SPREADûOFû h2ECENTûPOSITIVEûRATINGûACTIONSûBYûALLûTHREEû the company to diversify its funding around Treasuries plus 225bp, according to agencies and the rapidly improving STRUCTUREûBYûOBTAININGûNEWûUNSECUREDû -ARKET!XESSûDATA deleveraging prospects for 2021 (amid a BANKINGûLINES ûNEWûMARKETûISSUANCES ûORû 4HEûNEWûOFFERINGûLANDEDûWIDEûTOûFAIRû RECOVERYûINûTHEûGLOBALûPULPûMARKET ûAREûNOWû other means of funding,” the rating agency VALUEûESTIMATESûOFûAROUNDûPLUSûBP ûSAIDû LARGELYûREmECTEDûINûVALUATIONSûALONGûTHEû said. Aû5+ BASEDûCREDITûANALYSTûFOLLOWINGûTHEû 3UZANOûCURVE ûINûOURûVIEW vûSAIDû,UCROR That might have given investors some pricing. 4HEûCOMPANYSûLONGER DATEDûûûWASû LEVERAGEûTOûNEGOTIATEûPRICING ûANDûWITHûAû h)TSûAûSTRONGLYûRATEDûCREDITûANDûTHEREû trading a bit higher in the secondary market SMALLûDEALûSIZEûTHEREûWASûPROBABLYûSTRONGû should be demand,” said the analyst. ATûAûPRICEûOFûûTOûYIELDûûONû reverse inquiry at these generous levels, (OWEVER ûNEWûINVESTORSûINûTHEûNAMEûWEREû analysts said. NOTûEXPECTED ûWITHûEXISTINGûINVESTORSûLIKELYû ALL INTL EMERGING MARKETS BONDS /THERSûOBSERVEDûTHATûSUCHûAûWIDEû to make up the majority of bond buyers. BOOKRUNNERS: 1/1/2021 TO DATE concession could be attributed to the fact h)ûTHINKûITûWILLûBEûMOREûOFûAûROTATIONû Latin America the company is tapping a debut issuance, FROMûEXISTINGûHOLDERSûINTOûTHEûNEWûONE û Managing No of Total Share and does not have any other outstanding MOREûLIKEûAûROLLOVERû)MûNOTûEXPECTINGûANYû bank or group issues US$(m) (%) notes on its curve. STRONGERûNEWûPLAYERSûCOMINGûINû;)NVESTORS=û 1 JP Morgan 23 5,415.08 14.6 h!NYûNEWûPLAYERûINûTHEûSPACEûWILLûHAVEûTOû WILLûMOREûLIKELYûBEûTHEûEXISTINGû 2 Citigroup 19 5,127.47 13.8 pay, they’ll have to compensate investors for bondholders,” he said. 3 Santander 20 4,308.28 11.6 taking that risk,” said an investor looking at Proceeds from the bond offering are 4 Morgan Stanley 10 2,890.43 7.8 the deal. EXPECTEDûTOûFUNDûANûANY AND ALLûTENDERû 5 BNP Paribas 10 2,560.55 6.9 -EGA ûBASEDûINû'UADALAJARA û-EXICO û offer for the US$476.2m outstanding on its 6 HSBC 8 2,397.32 6.5 specialises in leasing, factoring, and Tier 2 6.875% 2026 and 6.125% 2027 bonds, 7 BBVA 4 1,870.01 5.1 INSURANCEûSERVICESû)TûALSOûLEASESûEQUIPMENTû expiring March 25. 8 Goldman Sachs 9 1,840.93 5.0 in sectors such as agriculture and farming. "#0û"AA""" """ ûISûONEûOFû0ERUSû 9 Barclays 5 1,618.92 4.4 4HOUGHûTHEûCOMPANYûSAWûAûDECLINEûINû LEADINGûBANKSû$ESPITEûDIFlCULTûOPERATINGû 10 Bank of America 8 1,265.43 3.4 return of average assets in 2020 due to the CONDITIONSûDUEûTOûTHEû#OVID ûPANDEMIC û Total 39 37,026.53 #OVID ûPANDEMIC ûITûENJOYSûSOLIDûEARNINGSû THEûBANKSûROBUSTûLOANûPORTFOLIOûWILLû Excluding equity-related debt. generation and retention, said Moody’s in a mitigate potential credit losses, said Source: Refinitiv SDC code: L3 report. Moody’s in a report.

68 International Financing Review March 27 2021

7 IFR Emerging 2376 p59-.indd 68 26/03/2021 18:59:17 LOANS

Australia 70 China 70 India 71 Japan 71 Singapore 71 Vietnam 72 Belgium 72 France 73 Saudi Arabia 74 Turkey 75 UK 75 United States 76 Leveraged Loans 78

FRONT STORY ASIA MARKETS Indonesia lending gathers pace Lenders welcome top-tier borrowers as downgrades mount Pipeline of syndicated loans totals over US$3bn

Top-tier Indonesian borrowers are ramping One other opportunity to make returns h4HEûmIGHTûTOûQUALITYûSTILLûREMAINSûDUEûTOû up fundraising plans with a pipeline of THROUGHûAûLONG AWAITEDûHIGH PROlLEûDEALûnûAû the credit issues that came about last year syndicated loans totalling over US$3bn, one-year bridge loan of over US$3bn for with names like Pan Brothers and Sritex amid hopes for a gradual recovery from the state-owned oil and gas company experiencing problems,” said a Jakarta-based coronavirus pandemic and an improvement Pertamina’s proposed purchase of energy loans banker. “The non-investment-grade in corporate credit metrics. assets from sector peer Occidental credits will continue to struggle to raise State-owned PERUSAHAAN LISTRIK NEGARA and Petroleum – has not materialised. funds unless they pay a handsome MINING INDUSTRY INDONESIA are leading the new Last October, PLN cancelled a US$300m one- premium.” wave with requests for proposals for US$1bn year new-money facility, which was mandated Last October, Perkebunan Nusantara III and US$1.5bn, respectively. RFPs from other to Korea Development Bank, Mizuho Bank settled the principal repayment due on its borrowers include a US$400m facility for and Sumitomo Mitsui Banking Corp in July, as US$390.6m two-year offshore debut loan Indonesia’s second-largest coal miner ADARO it was able to raise other forms of funding. raised in 2019. The state-owned company ENERGYûANDûAû53MûlNANCINGûFORû “I hope Indonesia picks up soon as it is the managed to pay the June and September INDOMOBIL FINANCE INDONESIA. juggernaut of pan-ASEAN deals,” said a instalments of around US$9.8m each in late The latest deals come after a strong Singapore-based head of loans at a foreign September after missing a principal RECEPTIONûTOûRECENTûDEALSûFROMûlNANCIALû BANKûh4HEûDEALûmOWûHASûBEENûPRETTYûDISMAL û repayment in June. The borrower had eyed a borrowers, while activity was largely and the economy hasn’t kick-started yet RElNANCINGûOFûTHEûFACILITYûASûWELLûASûCONSENTû lacklustre last year. post-Covid.” from lenders for a debt restructuring plan, “Indonesia is looking better positioned ,ASTûYEARSûDEARTHûOFûDEALûmOWûHASûSEENû which has not seen the light of the day. this year with the coronavirus vaccinations lenders pile into FI borrowings this year. coming along, covenant waivers out of the Earlier this month ASTRA SEDAYA FINANCE “The ﬂight to quality still way and the numerous RFP processes closed a self-arranged US$340m loan that currently taking place,” said Aditya Agarwal, attracted 17 lenders. remains due to the credit issues head of loan syndicate and sales at Maybank. ,ASTûMONTHûVEHICLEûlNANCIERûINDOMOBIL MULTI that came about last year with “Volumes should be a better than last year, JASAûWRAPPEDûUPûAû53M EQUIVALENTûlVE YEARû names like Pan Brothers and although we still won’t see the usual FACILITYûWITHûûBANKSû-ULTI lNANCEûCOMPANYû Sritex experiencing problems” volumes from pre-Covid times just yet.” CHANDRA SAKTI UTAMA LEASING recently launched a US$75m three-year facility. Both deals for Indomobil Multi Jasa and CSUL marked returns Last November, Federal International “The deal ﬂow has been pretty after two years for the two borrowers. Finance offered to pay 30bp more for a dismal, and the economy hasn’t US$138m three-year syndicated loan than its kick-started yet post-Covid” FLIGHT TO QUALITY US$400m three-year syndicated facility from Notwithstanding a seemingly benign November 2018. The transaction, led by funding environment, lenders are expected Mizuho Bank, offered a top-level all-in to remain selective. Indonesia is not out of offshore pricing of 132bp based on an Indonesia began rolling out the the woods yet as far as the impact of Covid- interest margin of 90bp over Libor and AstraZeneca vaccine on Tuesday, expanding 19 is concerned and non-investment-grade attracted 10 lenders in syndication. a vaccination programme that began in credits will feel the pinch the most. Similarly, Bank Rakyat Indonesia closed a January, and aims to reopen some tourist Earlier this month, Fitch downgraded US$1bn multi-tranche loan – its largest ever areas in the summer. The Covid crisis hit the garment maker Pan Brothers’ rating for the – in September after luring 23 banks in country hard in 2020, with the economy third time this year to RD from C, following general syndication, offering a premium of CONTRACTINGûBYûûnûITSûlRSTûFULL YEARû defaults on several loans and the expiry of a about 30bp in its all-in pricing against its CONTRACTIONûSINCEûTHEû!SIANûlNANCIALûCRISISû standstill agreement period. 53MûMULTI TRANCHEûlNANCINGûFROMû Although Indonesia recorded a 10.2% It also slashed textile manufacturer SRI March 2019. year-on-year jump in loan volumes to REJEKI ISMAN (Sritex) by two notches to B3 h4HEûRISKûPREMIUMûHASûTOûBEûSIGNIlCANTLYû US$13.22bn in 2020, the increase was CITINGûAûLACKûOFûPROGRESSûINûITSûRElNANCINGû higher for second-tier names, at least for the largely due to a jumbo US$2.05bn dual- plans, sending its US dollar bonds plunging lRSTûHALF ûGIVENûTHEûRISK OFFûENVIRONMENT vûSAIDû TRANCHEûlNANCINGûBACKINGûINSTANTûNOODLEû as much as 30 points. Sritex has been Maybank’s Agarwal. “However, when Covid- manufacturer Indofood Sukses Makmur’s seeking consent from lenders to extend the 19 concerns have dwindled and banks are acquisition of its manufacturing partner maturity of a US$350m three-year loan back in risk-taking mode, that may change.” Pinehill. maturing in January 2022. Chienmi Wong

International Financing Review March 27 2021 69

8 IFR Loans 2376 p69-84.indd 69 26/03/2021 19:29:15 remaining US$450m multi-currency loan is FUFENG MORE THAN DOUBLES due April 17 2023. ASIA-PACIFIC The loans were priced at interest margins Hong Kong-listed food additives producer of 75bp and 85bp over the corresponding FUFENG GROUP has more than doubled its three- bate rates, respectively. year loan to US$400m from US$150m after AUSTRALIA Nine banks, including Australian majors attracting 14 banks in general syndication. ANZ and National Australia Bank, Asian Bank of China, Citigroup, China Construction COMPUTERSHARE EYES DEBT lenders and US investment banks Bank (Asia) and Deutsche Bank were the participated in the 2018 deal with equal mandated lead arrangers and bookrunners, COMPUTERSHARE is seeking to raise about commitments. Gresham Partners advised on while Bank of Communications and China Citic US$1bn through debt and equity to fund its THEûlNANCING Bank joined as MLAs. proposed acquisition of Wells Fargo On March 12 2020, the company signed a Bank of East Asia, Rabobank, KDB Asia and Corporate Trust Services. US$100m bilateral loan, which matured this Ping An Bank came in as lead arrangers, while The company is eyeing US$372m in new month, with ANZ. Bank of the Philippine Islands, BNP Paribas, China debt and approximately A$835m (US$634m) Computershare provides transfer agency Minsheng Banking Corp, CTBC Bank, Land Bank in equity. and share registration, employee equity of Taiwan, Shinhan Bank, Sumitomo Mitsui Trust Computershare has agreed to acquire plans, proxy solicitation and stakeholder Bank and Woori Bank joined as arrangers. the assets of Wells Fargo Corporate Trust communications. The deal, which comprises a US$240m Services, a leading US-based provider of term loan tranche and a US$160m trust and agency services for revolving credit portion, offered top-level governments and corporate clients, for CHINA all-in pricing of 203.81bp via an interest US$750m. margin of 180bp over Libor and an average The acquisition is expected to close in the TENCENT NETS €1.3bn LOAN life of 2.94 years. second quarter of FY2022, subject to &UNDûAREûFORûRElNANCINGûANDûGENERALû regulatory approvals and other customary TENCENT HOLDINGS has closed the €1.3bn loan corporate purposes. closing conditions. backing the purchase of an additional 10% Fufeng Group’s previous visit to the Pro-forma net debt-to-management stake in US music entertainment company market was in November 2012 with a Ebitda at completion of the acquisition is Universal Music Group, after attracting nine US$150m three-year loan obtained from 12 expected to be around 2.5 times. banks in a limited syndication. LENDERS ûACCORDINGûTOû2ElNITIVû,0#ûDATAû4HATû The leverage is expected to decrease to Mandated lead arrangers and deal offered top-level all-in pricing of 460bp. within Computershare’s target of 1.75–2.25 bookrunners Bank of America, Bank of China, The company produces food additives, times within 12 months of the completion HSBC, Industrial and Commercial Bank of China including MSG and starch sweeteners, as of the acquisition. (Asia) and Morgan StanleyûPREFUNDEDûTHEûlVE well as animal feed products. On February 10, S&P said that persistently year loan in January. low global interest rates continue to hit ANZ, China Construction Bank (Asia), Credit SCE SIGNS REFINANCING Computershare’s margin income, eroding Agricole CIB, Intesa Sanpaolo, King’s Town Bank, the group’s credit metric headroom at the Mediobanca, Natixis, OCBC Bank and Societe Shanghai-headquartered property developer current BBB rating. Generale are the new joiners of the CHINA SCE GROUP HOLDINGS has obtained a Last June, the company raised a US$500m transaction, which offered an all-in pricing of US$387.5m-equivalent 3.5-year loan. revolving credit facility maturing June 30 105bp for commitments of €100m or above. Bank of China (Hong Kong), Hang Seng Bank ûTOûRElNANCEûAû53MûSYNDICATEDû On January 29, French media conglomerate and HSBC were the mandated lead arrangers revolver due April 17 2021 and a US$50m Vivendi announced it completed the sale of ANDûBOOKRUNNERSûOFûTHEûlNANCING bilateral loan maturing July 5 2021. the additional 10% stake in UMG to a Tencent- The loan, which comprises tranches of The US$450m syndicated revolver was led consortium, based on an enterprise value HK$351m (US$45m) and US$342.5m, offers part of a larger US$900m borrowing the of €30bn for 100% of UMG’s share capital. an interest margin of 370bp over Libor/ company obtained in April 2018. The The consortium, led by Tencent with the Hibor. It can be increased to up to US$450m- participation of Tencent Music equivalent through incremental facilities. ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY %NTERTAINMENTûANDûCERTAINûGLOBALûlNANCIALû Several subsidiaries of China SCE Group SYNDICATED VOLUME (INCLUDING JAPAN) investors, now owns 20% of UMG. are providing guarantees. BOOKRUNNERS: 1/1/2021 TO DATE In April 2020, the consortium funded the &UNDSûAREûFORûRElNANCINGûANDûGENERALû Managing No of Total Share purchase of an initial 10% stake in UMG corporate purposes. bank or group issues US$(m) (%) THROUGHûAûõMûlVE YEARûCLUBûLOANûFROMû The borrower last raised a US$246m- 1 Bank of China 69 20,370.75 21.8 the same MLAB group. equivalent loan from six banks in 2019. 2 Mizuho 86 12,182.23 13.1 Last month, Tencent closed a separate China SCE Group is rated B2/BB–/B+. 3 Ag Bank of China 12 10,596.22 11.4 53BNûlVE YEARûSYNDICATEDûLOANûnûTHEû 4 MUFG 119 9,278.93 9.9 Chinese technology giant’s largest offshore LOAN FOR LONDON PROJECT 5 China Dev Bk 4 5,795.14 6.2 SYNDICATEDûlNANCINGû 6 Bank of Comms 6 2,988.67 3.2 A dozen banks funded that loan, which Hong Kong-listed property developers CC LAND 7 China Merchants Bk 7 2,919.10 3.1 offered an all-in pricing of 85bp via an HOLDINGS and GUANGZHOU R&F PROPERTIES are 8 Sumitomo Mitsui 30 2,403.01 2.6 interest margin of 80bp over Libor. jointly seeking a £476.7m (US$654m) four-year 9 Mega Finl Holding 13 2,374.57 2.5 0ROCEEDSûAREûFORûRElNANCINGûANDûGENERALû dual-currency loan for the development of a 10 Indl & Comm Bk China 5 1,400.60 1.5 corporate purposes. residential project in London. Total 403 93,327.76 Hong Kong-listed Tencent, best known for China Citic Bank International and Lloyds Bank

Proportional credit its WeChat mobile app, is rated A1/A+/A+ are the mandated lead arrangers and Source: Refinitiv SDC code: S3a (Moody’s/S&P/Fitch). bookrunners on the transaction, which

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offers a margin of 325bp over Libor and has investor ESR CAYMAN has attracted three (US$505m) to replace and increase an an average life of three years. lenders in limited syndication. existing facility. CC Land and R&F Group are providing E.Sun Commercial Bank, MUFG Bank and Development Bank of Japan, Mizuho Bank, guarantees to the secured loan. SMBC were the mandated lead arrangers and MUFG and SMBC are the lenders of a ¥35bn Banks can commit in US dollars or bookrunners, and equally funded the loan term loan with tenors ranging from 8.25 sterling. last November. E.Sun was the facility agent. years to 10 years. Mandated lead arrangers committing Taichung Commercial Bank, Joyo Bank and SMBC is the arranger and agent of a £75m-equivalent or above will earn top-level United Overseas Bank are participants. cBNûlVE YEARûCOMMITMENTûLINEû-IZUHOû all-in pricing of 360bp via a 105bp fee, while The deal offers an interest margin of Bank came in as joint arranger. lead arrangers taking £40m–£74m-equivalent 200bp over Tibor. Sushiro’s group companies Akindo will receive all-in pricing of 355bp via a 90bp Proceeds will be used for working capital. Sushiro and Sushiro Creative Dining are the fee. Arrangers committing £25m–£39m- Hong Kong-listed ESR Cayman is the guarantors of both facilities. equivalent will earn 350bp via a 75bp fee, and largest APAC-focused logistics real estate The new loans replace a ¥30bn one-year managers with tickets below £25m will earn OPERATORûBYûGROSSûmOORûAREAûANDûBYûVALUEûOFû facility from May 2020. an all-in of 345bp via a 60bp fee. assets under management. Proceeds will be used for the residential SATUDORA HOLDINGS is set to sign a ¥12bn 11- development of Nine Elms Square on the year term loan. SINGAPORE south bank of the Thames in central London. Mizuho Bank is the arranger, while Phase one of Nine Elms Square, comprising Hokkaido Bank came in as co-arranger. HAFNIA SIGNS SLL three residential towers totalling approximately Akita Bank, Aomori Bank, Daichimirai Shinkin 680,000 square feet, is expected to be completed Bank, Michinoku Bank, MUFG, .ORTHû0ACIlCû"ANK, Tanker shipping company HAFNIA has signed and delivered to buyers by 2023, according to CC Resona Bank, Shoko Chukin Bank, SMBC and a US$374m seven-year sustainability-linked Land’s 2020 annual results. Sumitomo Mitsui Trust Bank joined in senior secured term loan and revolving When fully developed, the project will syndication. credit facility with a group of 10 banks. provide about 1,500 residential units with a Funds, which can be drawn anytime in 4HEû3,,ûRElNANCESûLOANSûOFû53MûANDû total saleable area of approximately 1.7 THEûlRSTûYEAR ûAREûFORûRElNANCINGûANDû US$128m that were due to mature in March million square feet. working capital. 2022 and December 2023, respectively. The borrower is a Sapporo-based holding 4HEûlNANCINGûINCLUDESûANûANNUALû company of drugstore chain operator sustainability margin adjustment depending INDIA Sapporo Drug Store. on Hafnia’s continuous improvement in emissions-related key performance NTPC PICKS TRIO KYORITSU MAINTENANCE RETURNS indicators. The KPIs include the International India’s largest power utility, NTPC, has KYORITSU MAINTENANCE is raising a ¥62bn Maritime Organisation’s decarbonisation mandated Bank of Baroda, State Bank of India (US$571m) 10-year loan to ramp up cash on target and are aligned with the Poseidon and SMBC to lead a euro-denominated loan hand to deal with the impact of the Principles. of up to US$260m-equivalent. coronavirus pandemic. ESG data and research company The unsecured seven-year bullet loan will SMBC is the arranger and agent, while 3USTAINALYTICSûHASûBEENûHIREDûTOûCONlRMû be used for capital expenditure. Mizuho Bank came in as co-arranger. that the SLL’s structure will support Hafnia’s NTPC, which sent a request for proposals The other banks that joined in sustainability strategy. for the euro loan in January, has been syndication are 77 Bank, Bank of Kyoto, Bank of ING Bank and OCBC Bank were joint tapping the syndicated loan market for yen- Yokohama, Hachijuni Bank, Hokkaido Bank, sustainability coordinators for the SLL. denominated loans since 2017. Hokkoku Bank, Hokuriku Bank, Minato Bank, ABN AMRO, BNP Paribas, DBS Bank, ING, IYO In October, the state-owned utility raised MUFG, Norinchunkin Bank, .ORTHû0ACIlCû"ANK, Bank, OCBC Bank, SEB, Societe Generale, AûcBNû53M ûDEBUTûGREENûlNANCING Ogaki Kyoritsu Bank, Resona Bank, San-in Godo Standard Chartered Bank and United Overseas Japan Bank for International Cooperation Bank, Shizuoka Bank, Sumitomo Mitsui Trust Bank are mandated lead arrangers on the committed ¥30bn, while SMBC, Bank of Bank and Toyama Bank. lNANCING Yokohama, Joyo Bank, Nanto Bank and Funds can be drawn anytime between Standard Chartered is facility coordinator San-in Godo Bank provided the remainder. March 31 2020 and March 28 2023. and agent. Proceeds were for solar power generation 4HEûBUILDINGûMANAGEMENTûlRMûLASTû “Shipping is vital to global economic projects and the installation of tapped the syndicated loan market in March growth, so it is heartening to see Hafnia environmental equipment in India. 2009, when it raised a ¥30bn 10-year debut COMMITûTOûDECARBONISINGûTHEIRûmEETûBYû In April 2020, NTPC closed its largest term loan. harnessing new technologies and improving foreign currency loan – a ¥80bn dual- Tokyo-based publisher SHUWA SYSTEM is EFlCIENCY vû%LAINEû,AM ûHEADûOFûGLOBALû TRANCHEûlNANCINGûTHATûPAYSûINTERESTûMARGINSû raising a ¥20bn 20-month term loan to back corporate banking at OCBC Bank, said. of 80bp and 102bp over yen Libor for the its ¥25bn planned acquisition of electric “We believe this milestone transaction seven and 10-year portions respectively. products maker Funai Electric. will inspire more peers to create a Resona Bank is the sole lender of the loan. sustainable and low-carbon shipping Shuwa System Holdings launched a ¥918 INDUSTRYû3USTAINABLEûlNANCE ûSUCHûASûTHISû JAPAN per share offer on Wednesday. The offer SLL, is critical to accelerate the industry’s ends on May 10. transition.” ESR CAYMAN ATTRACTS THREE The company will be delisted from the Oslo-listed Hafnia, which is part of BW TSE once the acquisition is completed. 'ROUP ûOPERATESûAûmEETûOFûûVESSELSû A ¥15bn (US$142m) three-year loan for Sushi restaurant chain SUSHIRO GLOBAL transporting oil and oil products to national Warburg Pincus-backed industrial property HOLDINGS signed two loans totalling ¥55bn and international oil companies, major

International Financing Review March 27 2021 71

8 IFR Loans 2376 p69-84.indd 71 26/03/2021 19:29:15 chemical companies, as well as trading and transaction, which was increased from Ho Chi Minh-listed Masan is one of utility companies. US$115m after exercising a greenshoe. Vietnam’s largest private-sector companies. 4HEûCOMPANYûHASûOFlCESûINû3INGAPORE û Ahli United Bank, DIFC branch, Ahli United It has business interests ranging from beer Copenhagen, and Houston and a presence in Bank, Emirates NBD Capital, Emirates NBD Bank, to consumer foods to banking and resources. Mumbai. Singapore branch, and Warba Bank were mandated lead arrangers and bookrunners VINGROUP ATTRACTS A DOZEN MANULIFE REIT GETS DEBUT SLL of the deal, which comprises a conventional tranche and an Islamic piece. Conglomerate VINGROUPûHASûINCREASEDûAûlVE Singapore-listed MANULIFE US REAL ESTATE Emirates NBD Bank was the global agent, year amortising loan to US$365m from INVESTMENT TRUSTûHASûRAISEDûITSûlRSTû53Mû conventional facility agent and the Islamic US$300m after attracting a dozen banks in UNSECUREDûlVE YEARûSUSTAINABILITY LINKEDû investment agent. general syndication. loan from DBS Bank and OCBC Bank. Kuwait International Bank joined as Credit Suisse, HSBC, Maybank and Taipei Both banks acted as sustainability mandated lead arranger. Fubon Commercial Bank were the original advisers on the real estate investment trust’s DenizBank, First Commercial Bank, Hua Nan mandated lead arrangers and bookrunners, SLL. Commercial Bank, Taiwan Business Bank and while Industrial and Commercial Bank of China The REIT’s trustee, DBS TRUSTEE, is the Finantia UK participated as arrangers. joined with the same title prior to the borrower. Proceeds are for general corporate purposes. launch into general syndication. The SLL will be used for general corporate In February 2019, the Korean construction Mandated lead arranger and bookrunner and working capital purposes, including the group completed a similar facility of the is ICBC. Mandated lead arranger is RElNANCINGûOFûTHEûEXISTINGûLOANSûINû same size to provide working capital for the Kasikornbank. Lead arrangers are First CONNECTIONûWITHûOFlCEûPROPERTIESûINû company’s overseas projects. Commercial Bank and E. Sun Commercial Bank. Washington DC and California. That loan was structured as a two-year Arrangers are Banque Internationale de The facility incorporates interest rate bullet comprising an US$80m conventional Commerce – BRED, Hua Nan Commercial Bank, reductions linked to predetermined loan tranche and a US$120m murabaha Bank of Taiwan, Cathay United Bank, Chang Hwa sustainability performance targets. facility. Commercial Bank, Sunny Bank and Taiwan The REIT can save on borrowing costs if it The conventional tranche offered a top- Cooperative Bank. Managers are Taiwan ACHIEVESûTHESEûTARGETSûLINKEDûTOûEFlCIENTûUSEû level all-in pricing of 290bp via an interest Business Bank and Shanghai Commercial & of energy and water, and management of margin of 240bp over Libor and an upfront Savings Bank. GREENHOUSEûGASûEMISSIONSûFORûITSûNINEûOFlCEû fee of 100bp. The deal offered a top-level all-in pricing properties in the US. of 351bp based on an interest margin of The properties of the REIT are included in 315bp over Libor and an average life of 4.175 sponsor Manulife’s target to reduce 80% of VIETNAM years. greenhouse gas emissions by 2050. Proceeds are for capital expenditure, Under the terms and conditions of the MASAN UPS LOAN TO US$350m RElNANCINGûANDûGENERALûCORPORATEûPURPOSES facility agreement, the borrower would be Vingroup last tapped the loan market in in default if the manager, Manulife US Real Vietnamese conglomerate MASAN GROUP has LATEûûFORûAû53MûlVE YEARûLOANû Estate Management, ceases to be owned by increased a loan to US$350m from US$250m alongside subsidiary Vinfast Trading and Manulife, or the trustee changes without an after attracting 23 banks in general Production, which borrowed US$310m. immediate replacement or the manager is syndication. Vingroup’s loan offered a top level all-in removed and not replaced within 60 days. BNP Paribas, Credit Suisse, HSBC and pricing of 334bp based on a margin of 305bp A breach would affect and lead to cross- Standard Chartered Bank were the mandated over Libor and an average life of 4.1 years. defaults on US$1.42bn in borrowings of the lead arrangers and bookrunners of the Last August, Vingroup’s hospitality REIT and its subsidiaries as of March 24. facility, which offers a top-level all-in pricing subsidiary Vinpearl obtained a debut Last year, Manulife US REIT signed its of 340.38bp via an interest margin of 325bp US$300m 3.5-year offshore loan. Credit DEBUTû53MûlVE YEARûGREENûLOANûWITHû over Libor and an average life of 2.6 years. Suisse and Deutsche Bank were the MLABs /#"#û"ANKûINû-AYûTOûRElNANCEûAûPROPERTYû Lead arrangers are Bangkok Bank, Bank of that deal, which paid a top-level all-in in the US. SinoPac, Rabobank, Maybank, Mega International pricing of 358.33bp based on a margin of Manulife US REIT invests in a portfolio of Commercial Bank, SMBC, Bank of China, BDO 325bp over Libor and an average life of INCOME PRODUCINGûOFlCEûREALûESTATEûINûTHEû Unibank, Cathay United Bank, First Commercial three years. 53û)TSûPORTFOLIOûCOMPRISESûNINEûOFlCEû Bank, Hua Nan Commercial Bank, Kookmin Bank, properties located in California, Georgia, Taiwan Cooperative Bank, Taiwan Shin Kong New Jersey, Washington DC and Virginia Commercial Bank and Union Bank of Taiwan. with an occupancy rate of 93.4% as at Arrangers are Bank of Taiwan, Banque December 31 2020. Internationale de Commerce – BRED, CTBC Bank, EUROPE/MIDDLE Taichung Commercial Bank, Taipei Fubon EAST/AFRICA Commercial Bank, Taishin International Bank and SOUTH KOREA Taiwan Business Bank. Manager is Bank of Panhsin. Funds are for investment and working BELGIUM DAEWOO E&C RAISES US$200m capital. In January, Masan acquired an 83.74% GREENYARD AGREES REFI DAEWOO ENGINEERING & CONSTRUCTION has signed stake in Vingroup subsidiary VCM Services a US$200m three-year dual-tranche and Trading Development. The target is sole Fruit and vegetable group GREENYARD has amortising term loan. owner of VinCommerce, the operator of AGREEDûAûõMûRElNANCINGûOFûITSûEXISTINGû Emirates NBD Capital was sole coordinator 2,600 VinMart supermarkets and VinMart+ debt with relationship banks and Flemish and documentation agent on the convenience stores. government investment fund Gigarant.

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4HEûlNANCINGûCOMPRISESûAûõMûTERMû The company is looking to diversify its 4HEûNEWûFACILITYûHASûANûINITIALûlVE YEARû loan, a €152.5m revolving credit facility and SOURCESûOFûFUNDINGûANDûlNANCEûPARTûOFûITSû maturity with two one-year extension a €125m committed forward-start facility organic growth through a senior unsecured OPTIONSûAVAILABLEûATûTHEûENDûOFûTHEûlRSTûANDû that will be drawn in December 2021 to bond. second year. repay a convertible bond issue. The RCF is in addition to Arval’s existing 4HEûFACILITYûCONTAINSûNOûlNANCIALû The loans, which have a three-year €1bn backstop facility with BNP Paribas, covenants. maturity with a one-year extension option, providing the company with around €2bn of Barclays, BNP Paribas, Citigroup, Credit include leverage and interest cover immediately available credit facilities. Agricole, CIC, HSBC, ING, Morgan Stanley, covenants. Arval has mandated BNP Paribas, BBVA, Natixis and Societe Generale were bookrunners !SûPARTûOFûTHEûRElNANCING ûEQUITYû HSBC, Standard Chartered, Santander and and mandated lead arrangers on the facility investors have committed €50m through a 5NI#REDITûTOûARRANGEûAûSERIESûOFûlXED INCOMEû with ANZ, Commerzbank, Goldman Sachs, JP reserved capital increase. investor conference calls on March 22 2021 Morgan, MUFG, Standard Chartered and Wells The equity will be provided by Alychlo, an for the proposed three-year bond. Fargo as mandated lead arrangers. investment company controlled by Marc Arval said its liquidity buffer would be HSBC is facility agent. Coucke, which will provide €48.5m; and increased by 2023, before the bond is existing shareholder Joris Ide, who will RElNANCEDûINûû4HEûCOMPANYûISû provide €1.5m. currently almost entirely dependent for its GERMANY Coucke will become a member of lNANCINGûONû".0û0ARIBAS ûWHICHûPROVIDESû Greenyard’s board of directors after 97% of its funding. JENOPTIK GETS GREEN SSD completion of the capital increase. The new capital structure will result in GORGE AGREES SLL High-tech engineering group JENOPTIK has net debt to adjusted Ebitda of around 3.0 placed a €400m Schuldscheindarlehen with times at the end of March, versus guidance High-tech industrial group GROUPE GORGE margins partly tied to the company’s of 3.5 times. has agreed an up to €145m sustainability- sustainability performance. Greenyard’s existing €425m bank loans linked loan. Funds will be used for acquisitions and comprise a €150m term loan and €275m 4HEû3,,ûWILLûBEûUSEDûTOûRElNANCEûõMûOFû investments in Jenoptik’s core photonics revolving credit facility. existing debt, including €9m of state- business. 4HEûlNANCING ûWHICHûWASûDUEûTOûMATUREû GUARANTEEDûLOANSûTHEûRElNANCINGûOFûTHEû 4HEûlNANCINGûCOMPRISESûTRANCHESûWITHû in December 2021, was originally arranged merger with ECA in 2020; and the MATURITIESûOFûlVE ûSEVENûANDûTENûYEARSû in December 2016 via KBC, BNP Paribas consolidation and renewal of revolving mostly in euros, but also in US dollars, &ORTIS û).' û!".û!-2/ û"ELlUSû"ANKûANDû CREDITûFACILITIESûOVERûlVEûYEARS mainly issued with an initial value date of Rabobank. 4HEûõMûCOMMITTEDûlNANCINGûHASûANû September 30 2021. AVERAGEûMATURITYûOFûlVEûYEARSûANDûFEATURESû Investors in Germany and abroad were an additional uncommitted €25m facility to OFFEREDûBOTHûlXEDûANDûVARIABLEûINTERESTûRATEû ESTONIA back external growth that can be used to options. increase the facility to a maximum €145m. )NTERESTûONûTHEûlNANCINGûISûTIEDûTOûTHREEû EESTI ENERGIA REFINANCES The committed facility comprises a measurable environmental, social and õMûlVE YEARûAMORTISINGûTERMûLOANûAû governance indicators covering State-owned energy company EESTI ENERGIA €42.5m loan from private investors spit sustainability in supply chains; the group- HASûRElNANCEDûAûõMûTERMûLOANûWITHû between a €24.5m six-year facility and a wide proportion of green electricity; and the Swedbank ûEXTENDINGûTHEûlNALûREPAYMENTû €18m seven-year facility; and a €35m diversity of the company’s management date to June 28 2024. revolving credit facility. team. The extended loan provides Eesti Energia Margins on the loans depend on both Jenoptik will receive a small reduction in WITHûFURTHERûmEXIBILITYûTOûCARRYûOUTûITSû leverage and the achievement of certain interest if all three targets are achieved, strategy. environmental, social and governance (ESG) while pricing will rise if less than two of the The term loan was originally agreed in OBJECTIVES ûWHICHûWILLûBEûDElNEDûINû three targets are achieved. June 2018 for three years as part of a wider partnership with the lenders in 2021. õMûBILATERALûLOANûlNANCING ûWHICHûALSOû The SLL follows the merger of ECA into EMEA LOANS BOOKRUNNERS – FULLY included a €100m loan from OP Corporate 'ROUPEû'ORGE ûWHICHûSAWûAûSIMPLIlCATIONûOFû SYNDICATED VOLUME Bank and a €50m loan from SEB. THEûCOMPANYSûSTRUCTURE ûANDûREmECTSûTHEû BOOKRUNNERS: 1/1/2021 TO DATE Eesti operates in the electrical and gas acceleration of the company’s ESG strategy Managing No of Total Share markets of the Baltic countries and Sweden. since 2018, rewarded in 2020 by a 13-point bank or group issues US$(m) (%) The company provides electricity, heat and improvement in its Gaia rating. 1 BNP Paribas 43 10,714.83 9.0 fuel production, sales and customer services BNP Paribas COORDINATEDûTHEûlNANCINGûASû 2 Credit Agricole 31 8,521.30 7.2 and other energy services. mandated arranger and facility agent, with 3 Deutsche Bank 21 6,799.61 5.7 LCL ASûMANDATEDûARRANGERûANDû%3'ûlNANCIALû 4 JP Morgan 16 6,340.45 5.3 adviser. BRED and CIC were arrangers. 5 HSBC 21 5,959.46 5.0 FRANCE 6 Barclays 17 5,543.68 4.7 CAPGEMINI NETS €1bn RCF 7 SG 19 5,526.05 4.6 ARVAL LINES UP €1bn RCF 8 Sumitomo Mitsui 11 5,451.04 4.6 IT services group CAPGEMINI has agreed a 9 Citigroup 15 4,923.30 4.1 6EHICLEûLEASINGûlRMûARVAL, part of BNP €1bn multi-currency revolving credit 10 ING 20 4,920.92 4.1 0ARIBASû'ROUP ûISûlNALISINGûAûõBNûTHREE facility, replacing an existing €750m facility Total 118 118,925.97

year revolving credit facility with a group of which was originally signed in July 2014, Proportional credit lVEûINTERNATIONALûBANKS that was due to mature in July 2021. Source: Refinitiv SDC code: R17

International Financing Review March 27 2021 73

8 IFR Loans 2376 p69-84.indd 73 26/03/2021 19:29:16 “We are observing that more and more BNP Paribas, DZ Bank and Helaba arranged progressing with plans to extract value from investors want to invest their money THEûlNANCING ûWHICHûWASûMARKETEDûVIAû its assets. sustainably,” Hans-Dieter Schumacher, CFO DIGITALûDEBTûlNANCINGûPLATFORMû6#û4RADE Aramco, which is being advised by JP of Jenoptik, said. “With this debenture Morgan and MUFG ONûTHEûlNANCING ûHASûSENTû bond, we have opened up an attractive the request over the past few weeks to its opportunity for investors to do so.” SAUDI ARABIA relationship banks. 4HEûlNANCINGûCLOSEDûSIGNIlCANTLYû It is asking lenders to submit oversubscribed with more than 250 institutional ARAMCO SENDS RFP TO BANKS commitments for a loan that could go up to investors, including savings bank, credit unions US$10bn. and international banks, participating. SAUDI ARAMCO has sent a request for proposals The planned pipeline transaction would The SSD doubled in size from the €200m TOûBANKSûFORûlNANCINGûITûWANTSûTOûOFFERûTOû be similar to infrastructure deals signed over launch amount and priced at the lower end investors looking to lease its pipelines, the past two years by Abu Dhabi’s national of the marketing range. Reuters reported, a sign the oil giant is oil company ADNOC, which raised billions Companies hit covenant reset button during crisis EUROPE Moody’s says 121 rated companies agreed loan amendments in 2020

Around 12% of all rated companies in EMEA services, some with government ownership, that South Africa and Copenhagen Airports; without agreed amendments to covenants on their sought amendments during the crisis. a revival in air traffic, further waivers may be loans in 2020 as they sought leeway to rebuild “The fact that so many amendments were required, Moody’s said. battered earnings during the Covid-19 crisis, granted reflects banks’ willingness to continue Cyclical consumer products and retail according a Moody’s report. to support companies, and a recognition that companies also saw high numbers of covenant Moody’s identified 121 rated companies the contraction in earnings is temporary for waivers, but pure food retailers, which benefitted that obtained amendments on their loan most and due to factors beyond their control,” from the closure of other food outlets, were agreements in 2020 as plunging earnings and the report said. absent from the list. Other non-food retailers prolonged cash burn threatened debt covenants were able to partly offset lost high-street sales – particularly leverage covenants – forcing SECTOR EXPOSURE with online sales, but still saw earnings hit. borrowers to seek financial covenant relief. Sector exposure in the crisis was more Covenant amendments and waivers in Companies sought covenant waivers for up to important than exposure to country or region, other sectors reflected individual company four quarters, often replacing them with a more Moody’s said. With 88% of total covenant resets characteristics. straightforward minimum liquidity tests as they happening in advanced markets and 12% in Although the automotive sector was one launched cost cutting and liquidity preservation emerging markets, this is in line with the share of the most exposed to the crisis, with supply measures. of actual ratings across those markets. chains disrupted and demand falling away, most Covenant amendments peaked in April to Unsurprisingly, sectors most heavily hit by covenant amendments happened in the auto June 2020, at the height of lockdowns in many the pandemic such as transportation, consumer parts supplier segment. countries, with waivers often granted into products and retail, automotive and services While the healthcare sector was generally 2021 or beyond, indicating when participants – including restaurants, leisure and lodging resilient to the crisis, some medical services expected a gradual recovery in earnings, the – saw the highest number of covenant resets, providers such as Danish hearing aid company report said. accounting for two-thirds of the total. WS Audiology and Italian orthopaedic implants But the mixed success of the roll-out of With their activity severely curtailed by company LimaCorporate were hit after vaccines across EMEA could lead to a slower- government-imposed lockdowns, a broad appointments and operations were postponed than-expected recovery and mean further range of services companies amended their during the pandemic and both amended their waivers or other amendments will be required to loan covenants, including lodging and tourism covenants. avoid breaches in 2021. operators, and companies that service the travel The real estate sector also saw a mixed The most frequent covenant to be reset was industry, the report said. picture, as commercial real estate was hit for leverage, and to a lesser degree interest In addition, leisure, entertainment and by falling rent collections and an increase in cover. In some cases it was both. restaurant operators, as well as gaming remote working and online sales during the Speculative-grade rated companies, which companies, also obtained covenant waivers. pandemic, leading some companies to amend are generally more vulnerable to an economic Other services providers proved more their facilities. downturn, accounted for 79% of the total immune to the downturn and did not require However, Moody’s expects residential amendments, with 15% of all speculative-grade waivers, such as education, postal and and logistics to outperform the wider sector rated companies agreeing a covenant reset in healthcare services. because of stronger fundamentals and a better 2020, according to the report. The travel sector, which was one of the first outlook. Around 7% of all rated investment-grade sectors to be affected and is likely to be the Other sectors, including the technology companies agreed a covenant reset in 2020, last to fully recover from the crisis, saw high sector, which partly benefited from the despite many IG loans not containing any numbers of covenant resets and waivers. pandemic, and utilities, pharmaceuticals, financial covenants, showing IG companies Covenant waivers for airports were particularly packaging, telecoms and construction sectors, were not immune from the crisis. This may be prominent. In the cases of Birmingham Airport, saw little or no covenant waivers in 2020. reflective of the high number of transportation Manchester Airport Group, Airports Company Alasdair Reilly

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of dollars by leasing its oil and gas pipeline The deal, which received €1.4bn of 4HEûlNANCINGûWASûORIGINALLYûARRANGEDûINû assets to investors. commitments before banks were scaled 2016 via Allied Irish Banks, Barclays, HSBC, !RAMCOûISûPREPARINGûAûSTAPLEûlNANCINGûFORû back, pays a margin of 225bp over Euribor, Lloyds and Royal Bank of Scotland for its bidders. 25bp less than the previous facility. £240m. One of the sources told Reuters the terms ICBC was the lead bookrunner and joint 4HEûlNANCINGûPAIDûAûMARGINûOFûBPû proposed by the company were “aggressive” coordinator, while Citigroup was the over Libor in 2019 for a leverage ratio of both in terms of pricing and duration of the bookrunner, joint coordinator and between 1.5 times and 2.0 times. There is a loan. documentation agent on the transaction. commitment fee of 35% of the applicable !ûSECONDûSOURCEûSAIDûTHEûTERMSûREmECTEDû Arab Banking Corp, Emirates NBD, HSBC, ING, margin on undrawn funds. market conditions, with Aramco taking Intesa Sanpaolo, JP Morgan, Qatar National Bank and In March 2020, the facility was reduced to ADVANTAGEûOFûBANKSûmUSHûWITHûLIQUIDITYûANDû SMBC joined as mandated lead arrangers. BBVA, aM ûTOûREmECTûREDUCEDûREQUIREMENTS ûANDû hungry for new assets. Bank of America, Barclays and Societe Generale are extended to the end of March 2022. The International investors interested in the the lead arrangers. HSBC was the facility agent. margin was increased by 50bp. pipeline business include BlackRock and Pendragon did not require use of "ROOKlELDû!SSETû-ANAGEMENT ûSOURCESûHAVEû government-backed borrowing facilities previously told Reuters. UK such as the Coronavirus Large Business Interruption Loan Scheme during the Covid- IAG BAGS US$1.755bn LOAN 19 crisis and remained compliant with its SOUTH AFRICA banking covenants throughout 2020. BRITISH AIRWAYS owner INTERNATIONAL The company also has £60m of private INVESTEC BANK NETS TERM LOAN CONSOLIDATED AIRLINES GROUP has signed a placement notes maturing in March 2023. US$1.755bn secured multi-borrower INVESTEC BANK has closed a US$600m revolving credit facility. SIG TWEAKS LOANS AGAIN syndicated term loan that will be used for 4HEûlNANCING ûWHICHûHASûAûTHREE YEARû general corporate purposes and the maturity with two further one-year Construction materials supplier SIG has RElNANCINGûOFûEXISTINGûDEBT extension options, is available to Aer Lingus, made further amendments to its debt 4HEûlNANCINGûCOMPRISESûAûONE YEARûTRANCHEû British Airways and Iberia, each with a lNANCINGûAFTERûRESETTINGûCOVENANTSûINû with a one-year extension option and a two- separate borrower limit. The amendments were agreed with SIG’s year tranche also with a one-year extension Amounts drawn would be secured against lending banks and private placement option. eligible unencumbered aircraft assets and noteholders to better align the different The loan was initially launched at US$400m take-off and landing rights at both London tests and provide additional headroom on ANDûCLOSEDûSIGNIlCANTLYûOVERSUBSCRIBEDûAFTERû Heathrow and London Gatwick airports. the interest cover covenant under stress-test garnering almost 2.5 times the launch With the new facility in place, BA has scenarios from March 2022. amount in syndication. Although the cancelled its US$1.38bn secured RCF that A waiver of interest cover testing has been lNANCINGûWASûINCREASED ûCOMMITMENTSûWEREû was due to mature in June 2021. Around extended by one quarter with the next test scaled back. US$786m of that facility was undrawn and due in June 2022 at a lower level of 0.75 A total of 29 banks committed to the available at the end of 2020. times from 1.25 times previously, until transaction from across North America, "!ûFULLYûDREWûAûaBNûlVE YEARûYEARûEXPORTû December 2022. Europe, the Middle East, Asia and Africa. development guarantee term loan in A leverage covenant threshold has also Bank of America, ICBC, Intesa Sanpaolo, SMBC, February as it completed deals to bolster its been reduced to 4.5 times from 5.5 times for Standard Chartered and State Bank of India liquidity by £2.45bn. the March 2022 and June 2022 tests. were coordinators, bookrunners and As a result of the new RCF, IAG’s total A consolidated net debt threshold has mandated lead arrangers. facilities have increased by nearly €400m been lowered to £200m from £225m and Bank of Baroda, Bank of China, Banco BAI and their weighted-average availability extended to December 2022. Europa, BNP Paribas, China Construction Bank, period has extended by at least 1.5 years A minimum net worth covenant of Citigroup, JP Morgan, Lloyds Bank, National Bank compared to previously. £250m and a minimum liquidity covenant of Ras Al-Khaimah, Abu Dhabi Commercial Bank, IAG said it continued to have strong of £40m are unchanged. Credit Europe Bank, Erste Group Bank, First Abu liquidity of €10.3bn, comprising €7.8bn of By March 2023, covenants will revert to Dhabi Bank, HSBC and Union Bank of India were cash, cash equivalents and interest-bearing the previous investment-grade covenant mandated led arrangers. deposits; €1.7bn of undrawn general levels of 3.0 times leverage and 3.0 times Bank of Taiwan, BayernLB, AfrAsia Bank, facilities and around €800m of committed interest cover. MUFG, UniCredit, Export-Import Bank of the AIRCRAFTûlNANCINGûFACILITIES 3)'ûAMENDEDûITSûlNANCINGûINûûASûITû Republic of China, DZ Bank and KEB Hana Bank IAG placed a €1.2bn high-yield bond in raised £165m in capital in mid-July to were lead arrangers. March to strengthen its balance sheet and provide it with extra liquidity to support its improve its liquidity position to help it strategic growth programme. withstand a more prolonged downturn in The amendment saw £70m drawn under TURKEY air travel. an existing revolving credit facility converted into a term loan with a £25m RCF WEALTH FUND SIGNS €1.25bn LOAN PENDRAGON EXTENDS RCF remaining in place after the cancellation of some commitments. TURKEY WEALTH FUND, has closed a €1.25bn two- Car dealership PENDRAGON has extended the The bank loan was also extended to May year syndicated loan with a group of 14 banks. maturity of its existing £175m revolving 2023 from May 2021. 4HEûLOANûRElNANCESûTHEûSOVEREIGNûWEALTHû credit facility by 11 months to March 1 2023. SIG originally agreed the RCF in May 2016 fund’s €1bn facility which was signed in The margin on the facility has been for £350m via Barclays, Commerzbank, March 2019. initially increased to 4.85%. HSBC, Lloyds Bank and RBS.

International Financing Review March 27 2021 75

8 IFR Loans 2376 p69-84.indd 75 26/03/2021 19:29:16 A funding fee of 50bp of the drawn BOEING LANDS US$5.28bn RCF amount will also be paid if the term loan or NORTH AMERICA revolving credit facility is drawn. Aircraft manufacturer BOEING has signed a Covenants require a minimum US$5.28bn two-year revolving credit facility, consolidated Ebitda to consolidated interest increased from US$4bn at launch. UNITED STATES charge ratio of 3.5 times and maximum Pricing is based on the borrower’s rating. consolidated funded indebtedness to For Baa1/BBB+ the commitment fee is SYNNEX TAPS FOR TECH DATA DEAL consolidated Ebitda of 4.25 times. 20bp with a margin of 130bp over Libor; for Tech Data is currently owned by funds Baa2/BBB it is 30bp and 145bp; for Baa3/ IT company SYNNEX has agreed a US$4bn 364- MANAGEDûBYûAFlLIATESûOFû!POLLOû'LOBALû BBB– it is 40bp and 160bp; for Ba1/BB+ it is day senior unsecured bridge loan and a Management. Apollo funds will receive 44m 45bp and 180bp; and for Ba2/BB or lower it is US$3.5bn 364-day senior unsecured shares of Synnex common stock plus the 50bp and 200bp. revolving credit facility to support its RElNANCINGûOFûEXISTINGû4ECHû$ATAûNETûDEBTû Covenants require consolidated debt to approximately US$7.2bn merger with and redeemable preferred share of total capital to not exceed 60%. technology distributor Tech Data. approximately US$2.7bn. The company sought additional liquidity Citigroup is the sole lead arranger and At closing, Synnex shareholders will own to bolster its reserves during the Covid-19 bookrunner. about 55% of the combined entity. pandemic. The bridge loan is split between a Tech Data is rated Ba2 by Moody’s, BB by Boeing is rated Baa2 by Moody’s and BBB– US$1.5bn tranche and a US$2.5bn S&P, and BB+ by Fitch. by S&P and Fitch. tranche. The US$2.5bn tranche is likely to Citigroup is the administrative agent and JP be taken out by a senior unsecured note STERIS BAGS LOANS FOR BUY Morgan is the syndication agent. offering. The other lenders are Bank of America, Wells The bridge loan and revolver will be Healthcare equipment company STERIS has Fargo, BNP Paribas, Credit Agricole CIB, Deutsche available at the transaction’s close, expected agreed US$2.55bn of loans, which will be Bank, Mizuho, RBC, SMBC, Barclays, Credit to occur in the second half of 2021. used to help fund its US$3.6bn acquisition of Suisse, Goldman Sachs, Morgan Stanley, MUFG, The bridge loan pays an initial margin of infection prevention products provider Societe Generale, Commerzbank, PNC Bank, 137.5bp over Libor, but it and the revolver’s #ANTELû-EDICALû#ORPûANDûRElNANCEûEXISTINGû Santander, DBS Bank, Standard Chartered and pricing are based on debt ratings following debt at both companies. Northern Trust. the merger’s close. 4HEûlNANCINGûINCLUDESûAû53MûlVE For Baa1/BBB+/BBB+ or higher the year delayed-draw term loan that will be II-VI WINS FIGHT FOR COHERENT commitment fee is 12.5bp with a margin of funded by the lenders on the closing of the 112.5bp over Libor; for Baa2/BBB/BBB it is 15bp acquisition. Laser maker Coherent has agreed a US$7bn and 125bp; for Baa3/BBB–/BBB– it is 17.5bp and 4HEREûISûALSOûAû53MûlVE YEARûTERMû buyout offer from optical components 137.5bp; for Ba1/BB+/BB+ it is 25bp and LOANûANDûAû53BNûlVE YEARûREVOLVINGû maker II-VI and has scrapped a merger deal 162.5bp; and for Ba2/BB/BB or lower it is 30bp credit facility, which will be used to replace WITHûOPTICALûlBREûCOMPANYû,UMENTUM û and 175bp. Steris’ existing term loan and RCF. bringing a bidding battle to a close. The bridge loan margin will increase by 4HEûlNANCINGûPAYSûMARGINSûBASEDûONû )) 6)ûHASûAû53BNûCOMMITTEDûlNANCINGû 25bp every 90 days following the closing ratings. For A–/A3/A– the term loan pays from JP Morgan to back the deal. It will also date. Ticking fees for that facility, applicable 100bp over Libor and the RCF pays 90bp BEûlNANCEDûWITHûAû53BNûEQUITYû after the closing date, are 17.5bp. over Libor with a facility fee of 10bp; for investment from Bain Capital. Bain has A duration fee is also payable on the BBB+/Baa1/BBB+ it is 112.5bp, 100bp and expressed interest in making an additional bridge loan and revolver. The duration fee 12.5bp; for BBB/Baa2/BBB it is 125bp, equity investment of up to US$650m to is 50bp at 90 days after the closing date, 107.5bp and 17.5bp; for BBB–/Baa3/BBB– it is reduce leverage. 75bp at 180 days after the closing date, 150bp, 130bp and 20bp; for BB+/Ba1/BB+ it is Coherent stockholders will receive and 100bp at 270 days after the closing 175bp, 152.5bp and 22.5bp; and for BB/Ba2/ US$220 in cash and 0.91 II-VI shares. date. BB it is 200bp, 175bp and 25bp. Lumentum had lined up a US$3.25bn JP Morgan is administrative agent, while term loan B from Deutsche Bank to support AMERICAS LOANS BOOKRUNNERS – FULLY Bank of America, Citigroup and PNC Capital are its offer, the most recent of which was for SYNDICATED VOLUME syndication agents, together joint lead US$230 in cash and 0.6724 shares of BOOKRUNNERS: 1/1/2021 TO DATE arrangers and joint bookrunners. Lumentum stock for each Coherent share Managing No of Total Share Santander and SMBC are co-documentation held. bank or group issues US$(m) (%) agents, while US Bank, DNB Bank and KeyBank Coherent had initially agreed a US$5.7bn 1 JP Morgan 233 73,121.83 12.9 are senior managing agents. deal with Lumentum in January before II-VI 2 Bank of America 285 71,305.45 12.6 HSBC, Svenska Handelsbanken, Wells Fargo, and MKS Instruments entered the bidding 3 Wells Fargo 162 40,642.40 7.2 TD Bank, Fifth Third Bank and Northern Trust battle. 4 Citigroup 115 36,134.67 6.4 also participated. Lumentum said that Coherent would have 5 Barclays 127 28,610.69 5.1 Under the cash-and-stock deal, Steris is to pay a US$217.6m termination fee. 6 Credit Suisse 106 26,381.63 4.7 acquiring Cantel for a total equity value of II-VI is rated Ba3 by Moody’s and BB– by 7 Goldman Sachs 102 23,234.01 4.1 around US$3.6bn with a total enterprise S&P. Coherent is rated BB by S&P. 8 Morgan Stanley 56 22,813.16 4.0 value of around US$4.6bn, including 9 RBC 98 18,301.54 3.2 Cantel’s net debt and convertible notes. SPIRE MISSOURI NETS US$250m 10 Deutsche Bank 88 18,265.62 3.2 Steris said that it expected to fund the cash Total 807 565,057.98 portion of the transaction consideration and Natural gas utility SPIRE MISSOURI signed a

Proportional credit REPAYûAûSIGNIlCANTûAMOUNTûOFû#ANTELSûEXISTINGû US$250m 364-day unsecured term loan via Source: Refinitiv SDC code: R7 debt with new debt. administrative agent US Bank .

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Funds will be used to bolster the exceed 0.6 times, the ratio of unencumbered America, Deutsche Bank, JP Morgan, Bank of Nova company’s liquidity following the winter asset value to unsecured debt to be greater Scotia, Goldman Sachs, Truist Bank, US Bank, cold snap that caused energy prices to soar than 1.67 times, secured debt to total asset Credit Agricole CIB, HSBC, PNC Bank, SMBC, in Texas and the Midwest in February. The values to be no greater than 0.35 times, BBVA, Fifth Third Bank, Northern Trust, Comerica borrower is a subsidiary of utility company ADJUSTEDû%BITDAûTOûlXEDûCHARGESûTOûBEû Bank and First Hawaiian Bank. Spire. greater than 1.5 times, and annualised Existing lender Santander is not listed as The loan pays a margin of 65bp over Libor. adjusted net operating income to interest an extending lender. US Bank, RBC, Regions Bank, TD Bank and expense must be at least 1.75 times. Hyatt Hotels is rated Baa3 by Moody’s and Wells Fargo are the lenders. &ORûTHEûTWOûlSCALûQUARTERSûFOLLOWINGûAû BBB– by S&P. Both agencies view the Parent company Spire is rated Baa2 by SIGNIlCANTûACQUISITION ûTHEûMAXIMUMûTOTALû company’s outlooks as negative. Moody’s and A– by S&P. liabilities to total asset value ratio may Meanwhile, utility company SOUTHWEST GAS increase to 0.65 times and the minimum MOTOROLA BAGS US$2.25bn RCF signed a US$250m term loan that will be unencumbered asset value to unsecured used to fund the increased cost of natural debt ratio may be reduced to 1.54 times. Communications and networking company gas supplies during February’s extreme Bank of America is the administrative agent. MOTOROLA SOLUTIONS has signed a US$2.25bn winter weather. The other lenders are Wells Fargo, PNC Bank, lVE YEARûREVOLVINGûCREDITûFACILITYûTOûBEûUSEDû The loan will mature on March 22 2022 Truist Bank, US Bank, Regions Bank, JP Morgan, for general corporate purposes. The facility, and the margin is based on the borrower’s TD Bank, First Horizon Bank and Associated Bank. which includes two one-year extension debt rating. For A1/A+ or higher the margin Highwoods Properties is rated Baa3 by options, may be increased to US$2.75bn. is 55bp over Libor; for A2/A it is 60bp; for Moody’s and BBB by S&P. Pricing is based on the borrower’s credit A3/A– it is 65bp; for Baa1/BBB+ it is 75bp; for rating. For A3/A–/A– or higher the Baa2/BBB it is 87.5bp; and for Baa3/BBB– or HYATT AMENDS US$1.5bn RCF commitment fee is 10bp with a margin of lower it is 100bp. 87.5bp over Libor; for Baa1/BBB+/BBB+ it is Covenants require Southwest Gas’ ratio of HYATT HOTELS has amended its US$1.5bn 12bp and 100bp; for Baa2/BBB/BBB it is 15bp funded debt to total capitalisation not to revolving credit facility to extend the and 112.5bp; for Baa3/BBB–/BBB– it is 20bp exceed 0.7 times. facility’s covenant relief period to January 1 and 125bp; for Ba1/BB+/BB+ it is 25bp and Lenders are Bank of New York Mellon, JP 2022 from April 1 2021. It also enables 150bp; and for lower than Ba1/BB+/BB+ it is Morgan, Bank of America, US Bank, KeyBank, US$1.45bn of commitments to be extended 30bp and 187.5bp. Wells Fargo and TD Bank. to January 10 2024. The facility is currently The margin on the previous, now Southwest Gas is rated Baa1 by Moody’s set to mature on January 10 2023. terminated, US$2.2bn facility from 2017 and A– by S&P. Pricing during the covenant adjustment ranged from 100bp to 200bp over Libor. In February, other utility companies, period, which is applicable until April 1 !ûlNANCIALûCOVENANTûRESTRICTSû-OTOROLAû including ONE Gas, Black Hills and 2023, is 155bp over Libor for drawn Solutions’ debt to Ebitda ratio to a CenterPoint Energy Resources signed loans amounts and 20bp for undrawn amounts, maximum of 4.25 times. to pay fuel charges associated with the spike provided the company maintains a credit JP Morgan is the administrative agent. It in wholesale energy prices related to the rating of at least Baa3 from Moody’s or BBB- had the same role for the terminated facility. February’s cold weather. from S&P. If the company’s rating drops Additional lenders are Bank of America, below that, drawn pricing will be 200bp Deutsche Bank, Goldman Sachs, Mizuho, TD Bank, HIGHWOODS SIGNS US$750m RCF over Libor and undrawn will be 25bp. Bank of China, Bank of Montreal, BNP Paribas, Pricing will revert to the facility’s credit Citigroup, DBS Bank, HSBC, ICBC, MUFG, PNC Real estate investment trust HIGHWOODS ratings grid at the end of the covenant Bank, Santander Bank, Northern Trust, US Bank, PROPERTIES signed an amended and restated adjustment period. The margin over Libor Fifth Third Bank, KeyBank, Lloyds Bank, Bank of US$750m four-year unsecured revolving will then range from 90bp to 150bp, and the Nova Scotia and UniCredit Bank. credit facility. commitment fee from 10bp to 25bp, based Motorola Solutions is rated Baa3 by The facility may be increased by an on the company’s credit rating. Moody’s, BBB– by S&P and BBB– by Fitch. additional US$550m and can be extended 4HEû,IBORûmOOR ûINTRODUCEDûDURINGûTHEû twice by six months. facility’s April 2020 amendment, has been The deal, for working capital, replaces the reduced to 25bp from 75bp. CANADA company’s US$600m revolver. Funds are for Financial covenants relating to Hyatt working capital. Hotels’ leverage ratio are suspended during CANADIAN PACIFIC TAPS M&A LOAN Pricing is based on the company’s credit the covenant relief period. Maximum rating. For A2/A or higher the commitment leverage will then be limited to 7.5 times for CANADIAN PACIFIC RAILWAY will use fee is 10bp and the margin is 75bp over the second quarter following the end of the approximately US$8.6bn of committed debt Libor; for A3/A– it is 12.5bp and 77.5bp; for relief period, 6.5 times for the third quarter, lNANCINGûTOûSUPPORTûITSûABOUTû53BNû Baa1/BBB+ it is 15bp and 82.5bp; for Baa2/ 5.5 times for the fourth quarter, and 5 times acquisition of railway operator Kansas City BBB it is 20bp and 90bp; for Baa3/BBB– it is FORûTHEûlFTHûQUARTER Southern. 25bp and 110bp; and for lower than Baa3/ !ûMINIMUMûlXEDûCHARGEûCOVERAGEûRATIOû The combined company will have rail BBB– it is 30bp and 145bp. OFûûTIMESûFORûTHEûlRSTûQUARTERûFOLLOWINGû operations in Canada, the US and Mexico. The opening margin is 90bp over Libor the end of the covenant relief period has #ANADIANû0ACIlCûANNOUNCEDûTHATûUNDERûITSû and the commitment fee is 20bp. also been added to the agreement. offer, Kansas City Southern shareholders The margin over Libor may be decreased The company’s liquidity requirements will receive US$90 in cash and 0.489 by 1bp if the company meets targets tied to have been increased to US$450m from #ANADIANû0ACIlCûSHARESûFORûEACHû+ANSASû#ITYû the reduction of greenhouse gas emissions. US$300m during the covenant relief period. Southern common share. Preferred Financial covenants require the ratio of Wells Fargo is the administrative agent. shareholders will receive US$37.5 in cash for total liabilities to total asset value to not Extending lenders are Wells Fargo, Bank of each Kansas City Southern preferred share.

International Financing Review March 27 2021 77

8 IFR Loans 2376 p69-84.indd 77 26/03/2021 19:29:16 The offer represents an implied price of OID. It comes with soft call protection of 101 US$275 per Kansas City Southern share, a for six months. 23% premium based on March 19 closing LEVERAGED LOANS JP Morgan is the lead and administrative prices. agent. 4OûFUNDûTHEûTRANSACTION û#ANADIANû0ACIlCû The company is rated Ba3/BB– and the will also issue 44.5m new shares and use on UNITED STATES facility is rated Ba2/BB+. cash on hand. The acquisition is projected to RESULTûINû#ANADIANû0ACIlCûSHAREHOLDERSû INGRAM TO RAISE US$2bn WW OUT WITH US$1bn TLB owning 75% of the combined company. #ANADIANû0ACIlCûWILLûASSUMEû Global technology distributor INGRAM MICRO Global wellness company WW INTERNATIONAL, approximately US$3.8bn of Kansas City has launched a US$2bn term loan B that formerly Weight Watchers International, is Southern’s outstanding debt. The company backs its buyout by Platinum Equity for seeking a US$1bn term loan B. expects its resulting debt following the US$7.2bn. The seven-year loan is offered with 101 acquisition to be about US$20.2bn, The seven-year loan is offered at 325bp– soft call protection for six months. representing leverage of about 4 times. The BPûOVERû,IBORûWITHûAûûmOORûANDûAûû Bank of America, Goldman Sachs, JP combined company is targeting leverage of OID. It comes with 101 soft call protection Morgan, KeyBanc and Truist is arranging about 2.5 times within 36 months of the for six months. the deal. transaction’s close. JP Morgan is bookrunner and the Proceeds, along with US$500m of other BMO Capital Markets and Goldman Sachs administrative agent. SECUREDûDEBT ûWILLûBEûUSEDûTOûRElNANCEûTHEû AREûlNANCIALûADVISERSûFORû#ANADIANû0ACIlCû Bank of America, Morgan Stanley, BNP Paribas, existing capital structure. Bank of America and Morgan Stanley are Citigroup, Wells Fargo, BMO, MUFG, PNC, The company is rated Ba3/B+. lNANCIALûADVISERSûTOû+ANSASû#ITYû3OUTHERNû Deutsche Bank, Barclays, Credit Suisse, HSBC, Ventilation and air conditioning #ANADIANû0ACIlCûISûRATEDû"AAûBYû-OODYSû Mizuho, RBC, Nova Scotia, ING, Societe Generale maintenance service provider SERVICE LOGIC and BBB+ by S&P. Kansas City Southern is and Stifel are also bookrunners. has launched a US$670m term loan via JP rated Baa2/BBB respectively. Chemicals manufacturer WR GRACE has Morgan. launched a US$300m term loan B3 that will The company is shopping a US$538m KAZ MINERALS LOAN UPPED support its acquisition of Albermarle’s term loan to reprice its existing facility, chemistry services business. while adding a US$132m delayed-draw term NOVA RESOURCES has increased the term loan The seven-year loan is offered at 200bp over loan, available until October 2022. backing its increased offer for London-listed ,IBORûWITHûAûûmOORûANDûANû/)$ûOFûû)TûCOMESû Pricing on both facilities is offered at miner KAZ Minerals to US$5.75bn from with 101 soft call protection for six months. BPnBPûOVERû,IBORûWITHûAûûmOORû US$5.52bn. A ticking fee of 50% of margin will kick in They will be issued at par and carry 101 soft Nova, a company owned by a consortium on day 46. That will increase to 100% of call protection for six months. of KAZ chairman Oleg Novachuk and margin on day 76. The DDTL includes a 25bp pricing step- director Vladimir Kim, is bidding to acquire Goldman Sachs is the sole lead. down once the company deleverages below KAZ with the intention of taking the In February 2018, the company issued a 4 times. company private. US$350m term loan B1 and a US$600m term The company is rated B3/B– and the Nova’s initial offer of about £3bn in loan B2 to back the acquisition of facility is rated B2/B. October 2020 was backed by a US$4.99bn !LBEMARLESûPOLYOLElNûCATALYSTSûANDû Plastic manufacturer PLASKOLITE launched a loan arranged by VTB Bank, which was components business. REPRICINGûOFûITSû53MûlRST LIENûTERMûLOAN increased to US$5.52bn in February 2021 The company is rated Ba3/BB/BB+ and the The maturity will be unchanged from when Nova tabled an increased offer of debt is rated Ba2/BBB–/BBB–. December 14 2025, and pricing is guided at around £3.7bn. Catering company ARAMARK SERVICES has 400bp over Libor, down from 425bp on the 4HEûINCREASEDûANDûlNALûOFFERûVALUESû+!:û launched an US$833m term loan B that will EXISTINGûDEALû4HEû,IBORûmOORûWILLûBEû at £4.1bn. RElNANCEûAû4,"ûDUEû reduced to 0.75% from 1% and it is offered 4HEûLOAN ûWHICHûHASûANûINITIALûlVE YEARû The seven-year loan is offered at 225bp– at par. maturity with a two-year extension option, BPûOVERû,IBOR ûWITHûAûûmOORûANDûAûû Soft call protection will be reset at 101 for includes a US$3.75bn facility A that will be six months. The loan will amortise at 1% per USEDûTOûlNANCEûTHEûACQUISITIONûANDû US LEVERAGED LOANS annum. associated costs. BOOKRUNNERS: 1/1/2021 TO DATE Goldman Sachs is the left lead arranger. There is also an up to US$1bn facility B, Managing No of Total Share Morgan Stanley is also an arranger. WHICHûWILLûBEûUSEDûTOûRElNANCEû+!:Sû bank or group issues US$(m) (%) 4HEûCOMPANYûANDûlRST LIENûDEBTûAREûRATEDû EXISTINGû53BNûPRE EXPORTûlNANCEûFACILITYû 1 Bank of America 191 39,323.90 12.5 B2/B. and an up to US$1bn facility C that will be 2 JP Morgan 142 28,088.76 8.9 Pritzker Private Capital is the company’s USEDûTOWARDSûTHEûRElNANCINGûOFûEXISTINGû 3 Credit Suisse 97 23,990.89 7.6 sponsor. China Development Bank facilities. 4 Wells Fargo 98 20,363.07 6.5 4HEûlNANCINGûPAYSûBPûOVERû,IBOR û 5 Goldman Sachs 89 19,560.56 6.2 MAGNITE MARKETS TLB reducing by 25bp each year the coverage 6 Barclays 100 19,304.09 6.1 ratio is exceeded by 75%. 7 Citigroup 67 15,532.92 4.9 Online sell-side advertising platform MAGNITE KAZ operates the Bozshakol and Aktogay 8 Deutsche Bank 76 12,263.50 3.9 is in the market with a US$360m term loan open pit copper mines in Pavlodar and the 9 RBC 66 11,823.00 3.8 B that backs its acquisition of video East Region of Kazakhstan, three 10 Jefferies 46 10,293.26 3.3 advertising platform SpotX. underground mines in the East Region and Total 488 315,221.09 The seven-year loan is offered at 425bp–

the Bozymchak copper-gold mine in Excluding Project Finance. BPûOVERû,IBORûWITHûAûûmOORûANDûANû Kyrgyzstan. Source: Refinitiv SDC code: P2 OID of 99.

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Venture lenders hoover up opportunities US MIDDLE MARKET Large Silicon Valley ﬁrms such as Uber have successfully tapped the loan market

Silicon Valley-based companies continue company, which can lead to founders losing BDC Hercules Capital continues to hold a to provide a regular flow of investment out significantly once the company hits a high warrant position in ride-hailing service Lyft opportunities for venture lenders even as the valuation, or even unicorn status, ahead of an and online communication software Zoom, Covid-19 pandemic threatened to destabilise initial public offering or a sale. according to BDC Collateral, and was previously one of the riskiest parts of the private credit “Financing a start-up with only equity capital an investor in social networking website market. is highly dilutive for founders while raising both Facebook. The total number of credit facilities extended equity and debt reduces the dilutive impact TriplePoint was also an investor in Facebook to venture capital-backed companies grew to and still provides the same total capital to fund and has invested in large-sized European names 2,900 in 2020, the second-largest amount growth,” Sajal Srivastava, a co-chief executive of such as fintech company Revolut and music since 2008, according to financial research firm TriplePoint Capital, a venture lender. “Proceeds discovery app Shazam. PitchBook. from a debt financing can be the lighter fluid to Healthcare is another growing segment Over the last decade, venture loan volumes help accelerate growth.” for venture lenders, with volumes totalling have tripled from 940 in 2010, outpacing the US$6.7bn made in 2020, according to increase of equity deals over the same period, BIG SUCCESS PitchBook. which rose from 5,500 in 2010 to 12,250 in Large-sized Silicon Valley borrowers have “We try to catch a unicorn on its growth 2020, according to PitchBook data. turned to the loan market with success amid a trajectory, but it’s not our mission. Healthcare Driving this trend is an increasing awareness year ravaged by the Covid-19 pandemic. is a really interesting space to target, and our among venture capital sponsors that building Office leasing company WeWork was backed activities in this industry are roughly equal a company can be done outside the traditional with a US$1.75bn letter of credit facility, led by with opportunities in tech,” said Runway’s rounds of equity raising. A start-up typically Goldman Sachs, at the beginning of 2020. Spreng. seeks funding through a series of stages Online dating app Bumble completed a This increase is particularly true in the biotech from venture capitalists as the company US$275m term loan to finance a distribution to and pharma sectors, attracting US$3bn from hits milestones, selling off equity stakes and shareholders in October. The company raised lenders, which is more than three times the handing over board seats to investors in order US$2.2bn from investors as it went public on amount raised in the last five years combined, to grow. February 11 with shares priced at US$43, above PitchBook data show. “There was a stigma previously associated the initial range set for the offering. The spike in healthcare lending points to with venture debt. A part of it was the signal The trend has continued into 2021, with ride- a broader shift in lending post-pandemic. that a company had failed to raise another hailing service Uber securing a repricing of its Companies no longer concentrate on survival round of equity, but venture loans have moved US$1.463bn term loan and an extension of its but are looking to expand as vaccinations are out of the backwater and are now front and US$1.1bn loan facility. distributed across the US and globally. centre of a sponsor’s strategy,” said David Even for the non-bank lenders and business “The market pendulum has swung in a Spreng, chief executive officer at Runway development companies providing smaller direction away from survival mode and is now Growth Capital, a venture debt provider. loans, there is an upside for lenders as more focused on growth. 2021 is a very different Many owners now look to debt financing as companies grow into the syndicated market or environment,” TriplePoint’s Srivastava said. an alternative to diluting their shares in the achieve unicorn status. David Brooke

It comes with 101 soft call protection for THATûWILLûRElNANCEûDEBT ûlNANCEûANû PETIQ LAUNCHES REFI six months and amortises at 1% per annum. acquisition, fund a distribution, and will be Goldman Sachs is the left lead. Fifth Third, used for general corporate purposes. PETIQ, a pet medication and wellness Silicon Valley Bank and Societe Generale are 4HEûlNANCINGûCOMPRISESûAû53Mû company, detailed terms on its US$425m bookrunners. COVENANT LITEûlRST LIENûTERMûLOAN ûAû53Mû LOANûRElNANCING The company is rated B2/B and the debt is revolving credit facility and a US$190m 0RICINGûONûTHEû53MûlRST LIENûTERMû rated Ba3/B+. covenant-lite second-lien term loan. loan is offered at 425bp over Libor with a Video gaming operator J&J VENTURES GAMING 4HEûSEVEN YEARûlRST LIENûTERMûLOANûISû ûmOORû4HEû/)$ûISûOFFEREDûATûAûnû LAUNCHEDûAûSEVEN YEARû53MûlRST LIENû offered at 425bp–450bp over Libor, with a range. term loan through Credit Suisse, Bank of ûmOORûANDûAûû/)$û)TûCOMESûWITHûû The loan carries 101 soft call protection America and Fifth Third. soft call protection for six months. for six months. The loan is offered at 400bp–425bp over The eight-year second-lien term loan is )NCLUDEDûINûTHEûPACKAGEûISûAûlVE YEARû ,IBORûWITHûAûûmOORûANDûAûû/)$ offered at 800bp–825bp over Libor with a US$125m asset-based revolving credit It comes with 101 soft call protection for ûmOORûANDûAûû/)$û#ALLûPROTECTIONû facility. six months. for the second-lien term loan kicks off at 102 0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEûEXISTINGû Proceeds, along with a US$60m revolving before decreasing to 101. debt. CREDITûFACILITY ûWILLûRElNANCEûEXISTINGûDEBTû Credit Suisse, UBS, RBC and Truist are Jefferies and KeyBanc Capital Markets are and acquisitions. arranging the deal. arrangers on the deal. 4HEûCOMPANYûANDûlRST LIENûDEBTûAREû The company is expected to be rated B2/ SOLIS MAMMOGRAPHY, which provides breast expected to be rated B2/B. "nû4HEûlRST LIENûDEBTûISûEXPECTEDûTOûBEûRATEDû health and diagnostic services, launched #OMMERCIALûROOlNGûSERVICESûCOMPANYû B1/B– and the second-lien debt is expected to Aû53MûTERMûLOANûTOûRElNANCEûITSû TECTA AMERICA is in the market with a loan be rated Caa1/CCC. existing debt.

International Financing Review March 27 2021 79

8 IFR Loans 2376 p69-84.indd 79 26/03/2021 19:29:16 The package comprises a seven-year amortises at 1% per annum. There is also a A covenant-lite second-lien term loan was 53MûlRST LIENûTERMûLOAN ûANû MONTHû lVE YEARû53MûREVOLVINGûCREDITûFACILITY reduced to US$670m from US$700m and a committed US$50m delayed draw term loan, 0ROCEEDSûWILLûRElNANCEûEXISTINGû fungible incremental second-lien term loan AûlVE YEARû53MûREVOLVINGûCREDITûFACILITY û indebtedness, pay a dividend to was cut to US$120m from US$150m. and an eight-year US$100m second-lien shareholders, and pay fees and expenses 4HEûlRST LIENûLOANûPRICEDûATûBPûOVERû term loan. RELATEDûTOûTHEûlNANCING ,IBORûWITHûAûûmOORû4HEû/)$ûWASû 4HEûDELAYEDûDRAWûTERMûLOANûANDûTHEûlRSTû Morgan Stanley, Credit Suisse, Societe Generale tightened to 99.75 from 99.5. It does not lien loan are being sold as a strip. and KKR Capital Markets were joint lead come with call protection. 4HEûlRST LIENûLOANûISûGUIDEDûATûBPn arrangers and joint bookrunners. The second-lien loans, which mature in BPûOVERû,IBORûWITHûAûûmOORûANDûAû Aftermarket automotive platform FIRST July 2025, were priced at 625bp over Libor 99.5 OID. There is a 25bp leverage-based step BRANDSûHASûALLOCATEDûITSûRElNANCINGûLOANS ûAû WITHûAûûmOORû4HEûEXISTINGûLOANûWASû down. source said. The loans comprise a issued at par, while the OID on the The second-lien is guided at 800bp over 53BNûSIX YEARûlRST LIENûTERMûLOANûANDû incremental loan was tightened to 99.75 ,IBORûWITHûAûûmOORûANDûAûû/)$ a US$540m seven-year second-lien term from 99.5. 4HEûlRST LIENûFACILITYûCARRIESûûSOFTûCALLû loan. The second-lien loans come with 101 hard protection for six months, while the second- 4HEûlRST LIENûPRICEDûATûBPûOVERû,IBORû call protection for 12 months. lien facility has a 102, 101 hard call protection WITHûAûûmOORûANDûAûû/)$ ûWHILEûTHEû Credit Suisse led the deal. THEûlRSTûANDûSECONDûYEARûAFTERûISSUANCE second-lien priced at 850bp over Libor with 4HEûCOMPANYûISûRATEDû""nû4HEûlRST LIENû The DDTL has a ticking fee. It kicks in at AûûmOORûANDûAûû/)$ debt is rated B1/B– and the second-lien debt 50% of the margin on day 46, rising to 100% 4HEûlRST LIENûTERMûLOANûHASûûHARDûCALLû is rated Caa1/CCC. on day 91. protection for 12 months, while the second- Hyland is sponsored by private equity Jefferies is the arranger on the deal. lien facility has hard call protection at 103 lRMû4HOMAû"RAVO INSTANT BRANDS, a holding company of FORûTHEûlRSTûYEARûANDûûFORûTHEûSECONDûYEAR Information management software kitchenware products makers, has outlined Jefferies was the sole arranger on the deal. company VERITAS wrapped a dual-currency DETAILSûOFûAû53MûLOANûTHATûWILLûRElNANCEû #ORPORATEûRATINGSûAREû"" ûlRST LIENû loan repricing. existing debt and fund a shareholder ratings are B1/B and second-lien ratings are The €549m tranche was priced at 475bp distribution. Caa1/CCC+. over Euribor, down from 500bp at launch, The seven-year loan is guided at 425bp– while the margin on the US$1.322bn BPûOVERû,IBORûWITHûAûûmOORûANDûAûû INTERIOR LOGIC WRAPS LBO LOAN tranche was unchanged from guidance at OID. 500bp over Libor. It carries 101 soft call protection for six $ESIGNûlRMûINTERIOR LOGIC tightened the Both were issued at par. The euro loan had months and amortises at 5% per annum. MARGINûONûAû53MûSENIORûSECUREDûlRST been guided at 99.875 to par, and the dollar Jefferies, RBC, Citigroup and Bank of America LIENûTERMûLOANû"ûTOûlNANCEûITSûACQUISITIONûBYû loan was launched at 99.875. are arrangers on the loan. PRIVATEûEQUITYûlRMû"LACKSTONE "OTHûINCLUDEûAûûmOORûANDûCARRYûûSOFTû Instant Brands owns companies such as The seven-year loan was priced at 350bp call protection for six months. Instant, Pyrex, Corelle and CorningWare. OVERû,IBORûWITHûAûûmOOR ûTIGHTENEDûFROMû The September 2025 maturity is the same 350bp–375bp. The OID was tightened to as for the existing debt. THOR WRAPS REPRICING 99.25 from 99. The corporate family ratings are B3/B– The deal includes 101 soft call for six and the facility is rated B2/B. Recreational vehicle manufacturer THOR months. It will amortise at 1% per annum, Bank of America was lead arranger on the INDUSTRIES completed a US$924m term loan which will be paid quarterly with the deal and administrative agent. B and a €503m term loan B that are due in remainder due at maturity. February 2026. Proceeds will reprice the The loan also comes with a mandatory CORNERSTONE SEALS TLB company’s existing dollar and euro- pre-payment clause that includes 50% of denominated facilities. EXCESSûCASHmOWûPROCEEDSûSUBJECTûTOûSTEP Learning and development company The loans priced at 300bp over Libor/ DOWNSûBASEDûONûlRST LIENûNETûLEVERAGE ûû CORNERSTONE ONDEMAND has wrapped pricing %URIBORûWITHûAûûmOOR ûATûPAR of net cash proceeds from non-ordinary FORûAûlRST LIENûTERMûLOANû" At launch they were both offered at course asset sales, also subject to leverage- 4HEûlNALûSIZEûISû53M ûAFTERûAû 300bp–325bp over Libor/Euribor with a 0% based step-downs and customary US$20m paydown on the original mOORûANDûANû/)$ûOFûn reinvestment rights, and 100% of debt issue US$852.2m loan. Both loans come with 101 soft call proceeds other than permitted debt. The loan matures on April 22 2027 and protection for six months. JP Morgan was the Citi, Goldman Sachs, Bank of America and priced at 325bp over Libor, the tight end of lead left bookrunner and administrative Royal Bank of Canada were arrangers on the 325bp–350bp guidance. agent. Barclays was also a joint bookrunner. deal. Blackstone is a co-manager. )TûALSOûPRICEDûATûPARûWITHûAûûmOOR The company is rated Ba3/BB– and the The company is rated B2/B and the facility The loan features 101 soft call protection facility is rated Ba3/BB. is rated B1/B. for six months and amortises at 1% per year. Internet services provider ADTHRIVE Enterprise software company HYLAND Morgan Stanley was the administrative WRAPPEDûAû53MûLOANûRElNANCINGû4HEû SOFTWARE has completed a loans package agent and a joint lead arranger. seven-year US$385m term loan B priced at that will reprice an existing second-lien Bank of America, Credit Suisse, Deutsche Bank, 475bp over Libor from guidance of 400bp– TERMûLOANûANDûlNANCEûTHEûACQUISITIONûOFû Jefferies and BMO were also joint lead arrangers. BP ûWITHûAûûmOOR content services platform Nuxeo. Last May, Cornerstone completed a 4HEû/)$ûlRMEDûATûûFROMûnûATû !ûCOVENANT LITEûlRST LIENûFUNGIBLEû US$1bn seven-year term loan priced at launch. incremental term loan, which matures in 425bp over Libor. The covenant-lite term loan carries 101 July 2024, was increased to US$140m from The company is rated B1/B+ and the soft call protection for six months and US$110m. facility is rated Ba3/B+.

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Metal components supplier AUTOKINITON has tightened pricing on an US$810m term loan B. Douglas forced to adjust The margin was lowered to 450bp over ,IBORûWITHûAûûmOORûFROMûGUIDANCEûOFû 475bp. It is subject to a 25bp step-down debt to win over investors WHENûTHEûCOMPANYSûNETûlRST LIENûLEVERAGEû ratio drops 0.5 times inside the closing date GERMANY Perfume retailer has reduced term loan twice and upped a pricey PIK leverage ratio, in addition to a 25bp stepdown upon the successful IPO of the German perfume and cosmetics retailer doesn’t necessarily feel incredible,” a syndicate company. DOUGLAS has reduced the term loan portion of head said. The OID was tightened to 99.75 from 99– a refinancing twice and increased pricing after Douglas is aiming to refinance its capital 99.5. failing to get enough traction with loan investors, structure and put cash on the balance sheet. The loan amortises at 1% per year and while the bonds have adjusted to increase a PIK The refinancing also includes a €170m 4.75-year carries six months 101 soft call paying 9%, as investors demand to be paid up revolving credit facility and a €220m equity protection. for the risk. contribution from shareholders CVC. The loan now comes with a most favoured The five-year covenant-lite term loan B now Investors have been asked to recommit to nation sunset clause, set at 50bp for 12 totals €600m and pays 550bp, with a 0% floor the financing by noon on March 26. There will months. at 99 OID. It was originally launched at €1.080bn be a number of investors counting on the latest Additional changes to material and reduced on March 24 to €750m. Pricing refinancing going ahead, in a bid to stay in the intellectual property transfer restrictions launched at 500bp over Euribor, with a 0% floor money. and guarantee releases for non-wholly at 99 OID. “There are a lot of investors with a lot of owned subsidiaries were also included in the Soft-call protection of 101 for 12 months money in the loans, and if this refinancing debt documents. remains in place. doesn’t happen they will be worse. A big Citigroup was the lead arranger and Meanwhile, €1bn in five-year non-call two equity injection and PIK notes being raised all administrative agent on the deal. Bank of fixed-rate senior secured notes, which increased derisks the senior debt holders, so for a lot of America, Barclays, Goldman Sachs and RBC were to €1.330bn on March 24, has reduced to loan investors it makes total sense to get this arrangers. €1.305m. through,” the syndicate head said. 0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEûTHEû The reduction in the term loan and senior The senior secured notes will be issued out of company’s term loan A, B1 and B2 secured bonds has been picked up by fixed-rate Douglas, while the PIK notes will be issued out tranches. senior payment-in-kind 5.5-year non-call two of Kirk Beauty Sun – a sister company located The company and loan are rated B2/B. notes, which increased to €475m on March 26, outside Douglas’s restricted group. from €300m at launch. Pricing of 9%, at par Bookrunners are Goldman Sachs, Deutsche remains the same. Bank, UniCredit and UBS. EUROPE/MIDDLE EAST/ A number of loan investors failed to commit Corporate ratings expected on completion are AFRICA to Douglas for fear the company would continue B3/B–/B–, while tranche ratings on the senior to struggle in the wake of the pandemic. While secured loans and bonds are B3/B/B– and on ORGANON SEEKS US$3bn LOANS 550bp pays a premium to most leveraged the PIK are Caa2/CCC/CCC. loans in the market, it didn’t feel enough to The refinancing will improve Douglas’s liquidity A US$3bn-equivalent loan has launched compensate for the risk, investors said. by addressing its upcoming debt maturities in for syndication that will form part of a wider “The change in structure suggests the 2022 and increasing cash on its balance sheet. 53BNûlNANCINGûTOûBACKûTHEûSPIN OFFûOFû loan got no traction at all or very limited. The Douglas is going to repay its €300m 6.25% women’s health business ORGANON from vaccination programme in Germany is woeful, senior secured bonds due 2022 and its €335m NYSE-listed drugs and lab supplies company it is being hit by a third wave and Easter has unsecured 8.75% senior 2023s at par – as well MERCK. been cancelled. So the pick-up doesn’t feel as as repaying its €1.37bn term loan. JP Morgan, Morgan Stanley, Bank of imminent as it did a month ago, which has to Douglas, owned by CVC Capital Partners, has America, BNP Paribas, Citigroup, Credit Suisse, be concerning people. If I take a risky bet 550bp total sales of €3.2bn. Deutsche Bank, Goldman Sachs and HSBC are is more than I’m being paid for other loans but Claire Ruckin bookrunners on the seven-year TLB that will be split between a US$2bn TLB and a US$1bn-equivalent euro-denominated ThyssenKrupp Elevator, which was put The sale by Advent International was TLB. together before Covid-19 disrupted the ANNOUNCEDûONû-ARCHûûINûANûOFlCIALû The loan, along with bonds will fund a markets and syndicated successfully in June announcement by the companies and US$9bn distribution to Merck and put last year. Partners Group will invest alongside TA US$500m of cash on the balance sheet. Corporate and secured ratings are Ba2/BB. Associates in a deal valued in excess of Both term loans are guided to pay 300bp Organon will include Merck’s women’s US$2bn. over Libor/Euribor, at 99.0–99.5 OID. The health, legacy brands and biosimilars Morgan Stanley is leading a leveraged loan DOLLARûTRANCHEûHASûAûûmOORûANDûTHEûEUROû businesses. lNANCINGûBACKINGûTHEûBUYOUT ûALONGSIDEûJP TRANCHEûHASûAûûmOORû"OTHûAREûOFFEREDûWITHû Morgan, Barclays and Mizuho. 101 soft-call for six months. BANKS UNDERWRITE UNIT4 LOAN Other banks could join at a later stage and There is also expected to be an approximate the loan is set to launch for syndication to US$1bn revolving credit facility and at Banks have lined up a underwritten institutional investors after the Easter US$10.5bn, it is the largest cross-border loan LEVERAGEDûLOANûlNANCINGûTOûBACKûTHEûBUYOUTû holidays on April 4. ANDûBONDûlNANCINGûSINCEûAûõBNûLOANûANDû OFû$UTCHûBUSINESSûSOFTWAREûlRMûUNIT4 by Advent took the business private in 2014 bond package backing the buyout of TA Associates. INûAûDEALûVALUINGûTHEûlRMûATûNEARLYûõBN

International Financing Review March 27 2021 81

8 IFR Loans 2376 p69-84.indd 81 26/03/2021 19:29:17 CASINO LAUNCHES €800m REFI Dutch healthcare equipment maker 4HEûTAKEûPRIVATEûISûALSOûBEINGûlNANCEDûWITHû Philips announced the sale on March 25, a £228m pre-placed second-lien loan and a French supermarket CASINO has launched an following a protracted sale process that SKr3bn (US$353m) multi-currency revolving õMûTERMûLOANûASûPARTûOFûAûWIDERûRElNANCING started last year. credit facility. The €800m August 2025 covenant-lite Goldman Sachs and JP Morgan provided a staple First-lien net leverage will be 5.3 times term loan B is offered at 450bp–475bp with lNANCINGûDURINGûTHEûSALESûPROCESS ûAVAILABLEûTOû and total net leverage will be 6.5 times, AûûmOORûATûû/)$û)TûALSOûHASûûSOFT CALLû any potential buyer, equating to around 5.5 based on adjusted Ebitda of SKr2.065bn. protection for six months. times the unit’s approximate €250m Ebitda. It EQT agreed to acquire Recipharm in In addition to the €800m loan, Casino will comprises senior secured debt. December 2020, valuing the company at also raise €425m of other senior secured The advantage of using the staple is that it SKr23.6bn. DEBTûASûPARTûOFûTHEûRElNANCING is readily available and provided by two top- Recipharm, a contract development and Credit Suisse and Goldman Sachs are leading tier banks, something which is attractive to manufacturing organisation for the pharma THEûRElNANCINGûASûGLOBALûCOORDINATORSûANDû a buyer less well-known in Europe’s industry, had nets sale of SKr11.069bn in physical bookrunners, alongside global leveraged loan market. 2020. It had around 30 facilities across 10 coordinators Credit Agricole and HSBC and “Hillhouse is not as well-known as other countries and supplied more than 100 joint bookrunners Bank of America, BNP sponsors in Europe, so using a staple seems markets, according to its 2020 annual Paribas, JP Morgan and Societe Generale. sensible to tap into an attractive lender report. Corporate ratings are B3/B and issue base,” a syndicate head said. ratings are B2/B+, with a recovery rating of 2. The appliances division had sales of LGC SEEKS DIVI RECAP Casino raised a €225m add-on loan in €2.2bn in 2020. December, which along with a €400m bond, Philips said last year it intended to sell the UK life sciences group LGC has launched a cash and proceeds from its Leader Price stores division, which makes coffee machines and £496m-equivalent dual-currency dividend SALEûFORûNEARLYûõM ûWASûUSEDûTOûRElNANCEû vacuum cleaners, as a legacy from its long- recapitalisation loan. existing bonds. That add-on loan closed to pay ago days as a consumer products and The £496m loan is split between a euro BPûOVERû%URIBOR ûWITHûAûûmOOR electronics conglomerate and no longer in and a dollar-denominated term loan B that line with its core business. will mature in April 2027 in line with LGC’s RAMSAY SANTE DETAILS REFI Hillhouse will license the Philips brand existing TLBs. name for 15 years under the deal, which Pricing is guided at 325bp–350bp over Care provider RAMSAY SANTE has revealed mirrors its previous disposals of consumer %URIBORûWITHûAûûmOORûONûTHEûEUROûLOANûANDû terms on a €1.35bn term loan that will goods subsidiaries. ATûBPûOVERû,IBORûWITHûAûûmOORûONûTHEû RElNANCEûEXISTINGûDEBT dollar loan. The covenant-lite loan is split equally RECIPHARM REINS IN PRICING The covenant-lite loans are offered with a BETWEENûAûlVE YEARûTRANCHEûANDûAûSIX YEARû 99.5 OID and 101 soft-call for six months. tranche. Pricing has tightened on a €1.115bn term 0ROCEEDSûWILLûALSOûBEûUSEDûFORûRElNANCING 0RICINGûONûTHEûlVE YEARûLOANûISûGUIDEDûATû loan B for Swedish contract pharmaceutical HSBC and Morgan Stanley are joint global 250bp over Euribor and on the six-year loan maker RECIPHARM to back its acquisition by coordinators and physical bookrunners, is 275bp over Euribor. Both come with a 0% EQT, following strong investor demand. alongside mandated lead arranger BNP mOORûANDûAûnû/)$ The €1.115bn seven-year covenant-lite TLB Paribas, Credit Agricole, KCM, Mizuho, MUFG, The margin is linked to ESG targets, rising is guided to pay 350bp, the tighter end of Natixis, NatWest, Nomura and SMBC. Wilmington and falling by 10bp. 350bp–375bp guidance, at 99.5 par from 99.5 Trust is agent. The loans will include 101 soft call for six /)$ûGUIDANCEû!ûûmOORûREMAINSûINûPLACE ûASû Corporate and facility ratings are B/B3/B+. months and commitments are due by April 13. does 101 soft-call protection for six months. KKR, which bought LGC from Bridgepoint Global coordinator is BNP Paribas and joint Goldman SachsûISûLEADINGûlNANCINGûASûLEAD in 2015 for about £650m, agreed to sell the physical bookrunners are BNP Paribas, left bookrunner and mandated lead arranger, business to Cinven and Astorg in November Credit Agricole CIB and Mediobanca. alongside MLAs and bookrunners Credit 2019, backed with a £1.082bn-equivalent Existing ratings are Ba3/BB–. Agricole, Danske Bank, SMBC and Swedbank. buyout loan raised in January 2020. In August 2017, the borrower completed an amend and extend of its senior loans, EUROPEAN LEVERAGED LOANS EMEA SPONSORED LOAN BOOKRUNNERS repricing the deal and removing BOOKRUNNERS: 1/1/2021 TO DATE BY VOLUME: 1/1/2021 TO DATE maintenance covenants. Managing No of Total Share Europe, Middle East, Africa The senior debt was extended by two years bank or group issues US$(m) (%) Managing No of Total Share to October 2022, while the margin on a 1 JP Morgan 14 3,355.93 8.6 bank or group issues US$(m) (%) €840m term loan B was reduced to 312.5bp 2 Barclays 11 3,248.70 8.3 1 Barclays 10 3,144.27 9.7 over Euribor from 350bp previously, with a 3 BNP Paribas 19 3,047.66 7.8 2 JP Morgan 10 2,850.12 8.8 ûmOORû4HEûREMOVALûOFûTHEûMAINTENANCEû 4 Bank of America 15 2,674.73 6.8 3 Deutsche Bank 14 2,300.81 7.1 COVENANTSûMADEûTHEûlNANCINGûCOVENANT LITE 5 Deutsche Bank 16 2,557.01 6.5 4 Credit Suisse 13 2,296.04 7.1 Paris-headquartered Ramsay Sante is the 6 Credit Suisse 14 2,479.73 6.3 5 BNP Paribas 13 2,240.99 6.9 second-largest care provider in Europe. 7 Credit Agricole 13 1,989.05 5.1 6 Bank of America 11 2,075.59 6.4 8 HSBC 12 1,966.38 5.0 7 Credit Agricole 11 1,688.19 5.2 HILLHOUSE MULLS STAPLE 9 Goldman Sachs 13 1,815.94 4.6 8 Goldman Sachs 12 1,664.17 5.1 10 ING 11 1,497.10 3.8 9 HSBC 8 1,284.26 4.0 China’s Hillhouse Capital is considering Total 40 39,122.09 10 Natixis 5 1,114.11 3.4

using an approximate €1.4bn staple Excluding project finance. Western Europe only included. Total 28 32,445.01 lNANCINGûTOûBACKûITSûõBNûACQUISITIONûOFû Excluding project finance. PHILIPS’ domestic appliances division. Source: Refinitiv SDC code: P10 Source: Refinitiv SDC code: P13

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The buyout loan comprised a €510m BNP Paribas is sole physical bookrunner on BNP Paribas and Credit Agricole were joint tranche and an US$850m tranche. There the deal. physical bookrunners alongside HSBC and was also a £265m revolving credit facility. The €900m term loan is guided at 375bp Natixis as joint bookrunners. The euro TLB priced at 325bp over Euribor over Euribor, subject to a margin ratchet, Almaviva is the fourth-largest largest and the dollar TLB priced at 350bp over WITHûAûûmOORûANDûANû/)$ûOFûn private hospital group in France operating Libor, and both allocated at par. The loan, with an unchanged maturity of 38 facilities. February 2027, includes 101 soft call for six IFS TIGHTENS PRICING months. The original €850m loan was placed in ASIA-PACIFIC 3WEDISHûENTERPRISEûSOFTWAREûlRMûIFS has -ARCHûLASTûYEARûTOûBACKû'ERmORSûACQUISITIONû lNALISEDûAûõBN EQUIVALENTûLOANûTOûRElNANCEû BYûINVESTMENTûlRMû#OBEPA TRICOR LOAN LAUNCHED existing term loans, pay a shareholder The margin is 425bp over Euribor. DIVIDENDûANDûFORûACQUISITIONûlNANCING 'ERmORûISûRATEDû""" Permira-backed TRICOR HOLDINGS is reaching 4HEûlNANCINGûCOMPRISESûAûNEWûSEVEN YEARû out to existing lenders for a new HK$5.5bn- SKr11.8bn term loan split between a €520m ADVANZ WRAPS BUYOUT LOAN equivalent (US$708m) loan, which has been tranche that priced at 350bp over Euribor at launched into general syndication. a 99.75 OID and a US$720m tranche that A €305m loan backing Nordic Capital’s Barclays, Bank of East Asia, Credit Agricole CIB, priced at 375bp over Libor at a 99.75 OID. takeover of London-based drug maker Goldman Sachs, HSBC, ING, MUFG and SMBC Both tranches launched at 400bp over ADVANZ PHARMA has closed. are the mandated lead arrangers and Euribor/Libor with a 99.5 OID. 4HEûSEVEN YEARûCOVENANT LITEûlRST LIENû bookrunners of the transaction, which 4HEûEUROûTRANCHEûHASûAûûmOORûANDûTHEû TERMûLOANû"ûWILLûlNANCEûTHEûTAKEOVER û COMPRISESûAûTRANCHEû!ûFORûRElNANCINGûANDûAû DOLLARûTRANCHEûHASûAûûmOOR alongside senior secured bonds totalling dividend recap, and a tranche B for There is also a €67m acquisition facility, US$1.02bn. acquisitions and capital expenditure. which pays the same as the euro term loan. The loan was priced at 500bp over Euribor Tranche A offers an interest margin of Both the acquisition facility and the euro FROMûBPnBPûATûLAUNCHû4HEûûmOORû 300bp to 375bp based on the borrower’s term loan step down two times by 25bp at a and 99 OID are unchanged. The deal leverage ratio, while tranche B offers a 0.5 times reduction in leverage. The dollar includes 101 soft call for 12 months, margin of 300bp to 400bp. term loan has just one stepdown of 25bp, increased from six. The opening margins for tranches A and B also at 0.5 times. Jefferies, JP Morgan and Morgan Stanley were are 375bp and 400bp, respectively. Both tranches also have one 10bp ratchet that physical bookrunners alongside joint Commitments are due by April 9 for will step down or step up, depending on bookrunners Barclays, Goldman Sachs, RBC existing lenders, which will earn an upfront sustainability adjustments, aligning it with a and Intesa Sanpaolo. fee of 75bp. majority of loans so far this year that have Corporate ratings are B3/B–/B, while New lenders are expected to be invited at included sustainability-linked targets to their facility ratings are B3/B–/B+. a later stage to join at three ticket levels. loans as pressure mounts on CFOs to “go green”. Advanz Pharma was formed from the Mandated lead arrangers with commitments The covenant-lite loans include 101 soft 2015 merger of Concordia Healthcare and of US$40m-equivalent and above will receive call for six months. AMC. an upfront fee of 125bp, while lead arrangers JP Morgan and Morgan Stanley were lead In 2018, the drug maker, which was with US$25m–$39m equivalent will earn a global coordinators, alongside joint trading on Nasdaq as Concordia, was 100bp fee. Arrangers with tickets of US$10m– bookrunners Bank of America, Credit Agricole, delisted as part of a debt restructuring deal $24m equivalent get a 75bp fee. Goldman Sachs, Mizuho, Nordea, SEB and SMBC. and rebranded Advanz Pharma. Permira funded its leveraged buyout of Corporate ratings are B2/B. Tricor from Bank of East Asia and NWS IFS tapped the loan market in October ALMAVIVA PRICES REFI Holdings with a HK$2.8bn loan in 2017. 2019 for a €250m add-on term loan, of The 2017 loan offered top-level all-in which €180m was used to pay shareholders French hospital group ALMAVIVA has priced a pricing of 426.6bp based on a blended a dividend, with the rest repaying equity õMûlRST LIENûTERMûLOANû"ûRElNANCING opening margin of 378.5bp over Hibor and used to make an acquisition. The seven-year covenant-lite term loan B an average tenor of 4.68 years. EQT bought a majority stake in IFS at a priced at 375bp over Euribor, from guidance Permira has amended and extended the valuation of around US$1bn in 2015. OFûBPnBP ûWITHûAûûmOORûATûû LBO loan twice, in 2018 and 2019. OID, tightened from 99.5. After the A&E exercise in July 2019, the GERFLOR SEEKS REPRICING, ADD-ON The deal includes 101 soft call for six borrowing comprises a HK$420m facility months. maturing in July 2024, and three tranches &RENCHûmOORINGûANDûINTERIORûlNISHûCOMPANYû 0ROCEEDSûWILLûRElNANCEûTHEûBORROWERSû maturing July 2024 – a HK$2.859bn term loan, a GERFLOR has launched a repricing of its €850m capital structure and secure funds for HK$200m revolver and a HK$390m term facility. term loan due in February 2027 and a €50m growth opportunities. HSBC was the sole MLAB of the deal, add-on to fund potential acquisitions. Ratings are B/B2/B. which attracted 15 others in syndication. Make the most of your success stories

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International Financing Review March 27 2021 83

8 IFR Loans 2376 p69-84.indd 83 26/03/2021 19:29:17 MAKE THE MOST OF YOUR IFR AWARD! Winning an IFR Award is the ultimate accolade in the global capital markets industry. If you are an Award-winner and would like to maximise the impact of your achievement you may wish to consider the following options:

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8IF IRF Rre Lporiannts 2a3d7 A6 4p 26092-804 a.iwnadrdd s .8in4dd 1 0286/03/2021 119:0279:18 EQUITIES

China 86 Hong Kong 87 India 88 Japan 88 New Zealand 89 Singapore 89 Belgium 90 Czech Republic 90 Denmark 91 Norway 92 UK 94 United States 95 Structured Equity 102

FRONT STORY IPOS European IPOs falter Trustpilot is the latest to break issue despite a strong start and top of the range pricing

Nervousness has begun to creep into cornerstones but were turned down. The NO TOLERANCE European ECM after Danish online review mOATûWASûCOVEREDûONûTHEûFULLûDEALûSIZEû “IPOs are still working,” said a banker business TRUSTPILOT broke issue on its second throughout the range after just 90 involved in Trustpilot’s IPO, “but there is no day of trading on the London Stock minutes of bookbuilding and there were question people are more nervous around Exchange. The slide followed a handful of no hedge funds in the top 20 allocations. the broader market backdrop and the OTHERûRECENTûmOATSûTRADINGûBELOWûWATERûANDû Early signs were positive opening 13% quality of assets coming through. As a result, prompted others to moderate pricing below over 265p pricing in the £473.2m IPO and THEREûISûDElNITELYûMOREûPRICEûSENSITIVITYv coverage levels out of caution. shares initially pushed higher for what The banker said that supply was so Trustpilot’s fall was unexpected after looked to be a pop. They lost all of its gains plentiful at the moment that accounts were pricing at the top of the range and upsizing BYûTHEûAFTERNOON ûTHOUGH ûANDûCLOSEDûmAT û stretched very thin across deals, including the secondary tranche and telling investors WITHûSHARESûREPRESENTINGûûOFûTHEûmOATû early-look meetings and wall-crossings, “so to aggressively manage expectations on changing hands. the tolerance for underperformance isn’t allocations. Around 20% of a large book of Shares closed down 3.77% at 255p on where it was”. 270 lines was zeroed, with the top 10 orders Wednesday, pulling back on Thursday to A head of syndicate not involved in taking approximately 50% of a book that 263.95p and returning to issue price at Trustpilot said “some assets will fall by the had double-digit oversubscription. Friday’s close. wayside as investors are being highly As of the Thursday close, March IPOs selective and some issuers may decide to wait “The tolerance for from Fix Price, Philogen, Aker Clean for a more positive window”, adding that underperformance isn’t Hydrogen, BW Ideol and Nightingale SOMEûDEALSûWOULDûHAVEûLIKELYûmOWNûINû Health are all trading below water. Those January and February will fare less well in the where it was” TRADINGûUPûAREû!)-ûmOATûTINY"UILDûANDû)Nû current market. There will be plenty of focus The Style, Norway’s Salmon Evolution and on Deliveroo, he said, and the rest of the Vantage Towers, which is just above pipeline may depend on how that IPO fares. pricing. “There’s a real risk of supply exceeding The deal had been heavily backed by On Thursday, Czech real estate business demand and that’s the concern at the six cornerstone investors for an CTPûCLOSEDûmATûFOLLOWINGûAûõMû)0/ û MOMENT vûSAIDûTHEûlRSTûBANKERûh)0/SûAREûAû aggregate US$240m/£173m from pre- Finnish construction company SITOWISE was TOTALûCONlDENCEûGAMEûANDûITûDOESNTûMATTERû marketing (BlackRock and Fidelity JUSTûAûFRACTIONûABOVEûAFTERûAûõMûmOAT û WHATûYOUûBRINGûTOûMARKETûIFûTHATûCONlDENCEû International both in for US$45m each, INTEGRATED WIND SOLUTIONSûlNISHEDûDOWNû is broken, it will struggle. The market needs Caledonia and Capital Research at more than 8% and Belgian football team CLUB a break; Easter can’t come soon enough!” US$40m each and Adelphi Capital and BRUGGE CANCELLEDûITSûõMnõMû)0/ û JP Morgan and Morgan Stanley were joint Janus Henderson each in for US$35m), with German energy infrastructure business global coordinators and joint bookrunners with a banker saying that a number of FRIEDRICH VORWERK THEûRAREûPOSITIVE ûlNISHINGû with Berenberg and Danske Bank on Trustpilot. other accounts wanted to be up 6%. Robert Venes SPACs arrive in Sweden

ACQ Bure captures typical US SPAC momentum by trading up on debut

3WEDISHûINVESTMENTûlRMû"UREûHASûRAISEDû to shareholders. A shareholder vote is the IPO, although Bure as sponsor has 4.2m SKr3.48bn (US$400m) for what is believed to required to approve the acquisition. warrants that can be exercised no earlier BEûTHEûCOUNTRYSûlRSTû30!# ûACQ BURE, which The IPO comprised 34.8m shares at SKr100 THANûlVEûANDûûYEARSûAFTERûADMISSION HASûTHREEûYEARSûTOûlNDûAûTARGET each. Bure bought a 20% stake, AMF Bure has 12 portfolio companies and has ACQ Bure will seek a Nordic business with Pensionsforsakring holds 10.9%, the Fourth increased average net asset value by 24% over ANûENTERPRISEûVALUEûOFû3+RBNn3+RBN û Swedish National Pension Fund has 10%, AMF lVEûYEARSûANDûûOVERûûYEARS operating in markets with great potential or Fonder 8.6%, SEB Fonder 5.7% and SEB-Stiftelsen ACQ Bure shares closed on debut on in niche markets where the target company 4.9%. Retail investors were keen buyers with the Thursday at SKr102.12 and up 4.8% at has a leading position. SPAC’s register numbering 35,000 shareholders. SKr106.98 on Friday. If a business combination is not found, the Unlike a traditional SPAC structure, no SEB was sole bookrunner. SPAC will be liquidated and monies returned warrants were offered alongside shares in Robert Venes

International Financing Review March 27 2021 85

9 IFR Equities and SE 2376 p85-105.indd 85 26/03/2021 21:32:00 Nio is working with Credit Suisse and Henderson (US$50m), OTPP (US$50m), Sequoia Morgan Stanley for a secondary listing in the Funds (US$50m) and EDB Investments ASIA-PACIFIC city and is also considering an A-share (US$15m). listing, said the people. The deal will price on March 31 and the It is likely to sell a stake of about 5% in the shares will start trading on April 9. AUSTRALIA Hong Kong listing, meaning the deal could CICC and Goldman Sachs are joint sponsors, raise about US$3.2bn based on the company’s and joint global coordinators with Citigroup. PIEDMONT BIDS G’DAY, GOOD NIGHT IN market capitalisation of US$64.77bn on China Renaissance and CLSA are also AUSSIE, US FUNDING Tuesday. bookrunners. XPeng is working with Bank of America and The Shenzhen-based company posted a In a follow-up to its Nasdaq re-IPO in JP Morgan FORûITSûPLANNEDûmOAT ûWHILEû,Iû!UTOû loss of Rmb432m (US$67m) for the nine October, Australian lithium miner PIEDMONT is working with Goldman Sachs and UBS, said months to September 30, 17% wider than its LITHIUM secured US$122.5m from a marketed the people. Both deals are expected to come loss of Rmb369m a year earlier. follow-on offering to help fund its new mine as early as the third quarter to raise about Tencent Holdings owns an 18.9% stake in in North Carolina. 53BNnBN Linklogis, Citic Capital owns 12%, Piedmont is in the process of re-domiciling As XPeng was listed in the US in August Singapore’s GIC 9.2% and Standard to the US, a process that is up for a 2020 and Li Auto in July 2020, the Chartered 3.6%. shareholder vote on April 7 after an Australian companies cannot list in Hong Kong court earlier this month approved the move. through a secondary listing as that requires TRUCKERS PLAN TRIPS TO US The fact that the company still calls AûTRACKûRECORDûOFûATûLEASTûTWOûlNANCIALûYEARSû Australia home forced a trading suspension of regulatory compliance on another SoftBank-backed FULL TRUCK ALLIANCE, is in both its Nasdaq and ASX-listed shares, qualifying exchange. PLANNINGûAû53BNnBNû53û)0/ûASûEARLYû beginning with the 6:30pm New York The duo are considering applying for a as the second quarter, said people familiar Monday deal launch and through Hong Kong dual primary listing instead, said with the situation. completion on Tuesday evening New York. the people, which does not require the two- CICC, Credit Suisse and Morgan Stanley are JP Morgan, Evercore and Canaccord Genuity year track record, but comes with more leading the transaction. went out with pricing details at 5:35pm New disclosure requirements. FORU TRUCKING, a Chinese online truck York on the sale of 1.75m ADSs at US$70.00 As of Tuesday, shares in Nio, Xpeng and Li logistics services provider, is also preparing apiece, a 14.3% discount to the US$81.71 Auto had dropped 16%, 15% and 9% FORûAû53û)0/ûOFûABOUTû53MnMûTHISû launch reference/last sale on Nasdaq and respectively, so far this year. year, said people with knowledge of the ensuring an orderly open on the ASX. matter. The sale price is nearly triple the LINKLOGIS LAUNCHES HK IPO ForU, which counts JD Logistics, the US$25.00 price at which it raised US$57.5m logistics unit of JD.com, among its backers, from an all-primary stock sale in October. Tencent-backed LINKLOGIS has opened the is working with Goldman Sachs and UBS on The banks saw good follow through books for a Hong Kong IPO of up to THEûPROPOSEDûmOAT interest from institutions that participated HK$8.28bn (US$1.07bn). ForU Trucking, also known as in the October funding as well as The company is selling 453m shares, or Fuyoukache, provides truck logistics participation from new investors. 20% of the enlarged share capital, at services to enterprises and individuals, “It is nice not to be distracted by trading (+nûPERûSHARE connecting truck drivers with those in need [while marketing],” said one banker ,INKLOGISûSUPPLYûCHAINûlNANCINGûANDûRISKû of logistics services through its online involved in the deal. “But at the same time, control systems provide loans to micro and platform. what is happening in the sector affects small-sized enterprises and connect In January 2018, JD Logistics led a investor sentiment.” COMPANIESûWITHûTRADITIONALûlNANCIALû Rmb150m (US$23m) private round in ForU. Piedmont Lithium shares closed Nasdaq institutions to obtain loans. At the end of 2018, the company raised trading on Wednesday at US$68.32 but rallied Six cornerstone investors are putting in another US$170m in a round led by Matrix late in the week to US$75.75, highlighting US$365m. They are BlackRock (US$100m), Partners China and Bank of China Group ephemeral investor sentiment toward long- Fidelity International (US$100m), Janus Investment. tailed investment opportunities. Piedmont is using proceeds to fund drilling ASIA-PACIFIC EQUITIES ASIA-PACIFIC EQUITIES (EX-JAPAN) at its lithium project in North Carolina to help BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE assess its economic potential. In September, it Managing No of Total Share Managing No of Total Share inked an agreement with Tesla for the EV bank or group issues US$(m) (%) bank or group issues US$(m) (%)

maker to take one-third of production at the 1 Morgan Stanley 30 7,726.62 8.3 1 Morgan Stanley 23 7,061.22 8.0 MINEûOVERûANûINITIALûlVE YEARûTERMûBEGINNINGû 2 Goldman Sachs 23 6,092.55 6.6 2 Goldman Sachs 22 6,034.73 6.8 somewhere between July 2022 and 2023. 3 Citic 22 4,468.97 4.8 3 Citic 22 4,468.97 5.1 4 CICC 27 4,462.86 4.8 4 CICC 27 4,462.86 5.1 5 UBS 21 4,383.21 4.7 5 UBS 19 4,272.97 4.8 CHINA 6 Citigroup 22 4,223.85 4.5 6 Citigroup 22 4,223.85 4.8 7 Haitong Secs 30 3,292.02 3.5 7 Haitong Secs 30 3,292.02 3.7 EV TRIO TAP BANKS 8 Bank of America 16 2,999.05 3.2 8 Bank of America 13 2,785.15 3.2 9 Huatai Securities 17 2,429.60 2.6 9 Huatai Securities 17 2,429.60 2.8 US-listed Chinese electric vehicle 10 Credit Suisse 17 2,143.12 2.3 10 Credit Suisse 15 2,023.72 2.3 manufacturers NIO, XPENG and LI AUTO have Total 741 92,991.09 Total 694 88,212.27

picked banks for Hong Kong listings this year, Including all domestic and international deals and rights issues Including all domestic and international deals and rights issues said people with knowledge of the matter. Source: Refinitiv SDC code: C4a1 Source: Refinitiv SDC code: C4a2

86 International Financing Review March 27 2021

9 IFR Equities and SE 2376 p85-105.indd 86 26/03/2021 21:32:00 EQUITIES ASIA-PACIFIC

LISTINGS SERVICE LOOKS TO LIST the secondary listing. Bank of America, CLSA The Hong Kong-based company plans to and Goldman Sachs were sponsors. offer 30m units at US$10 each. Each unit Chinese property listing service ANJUKE, consists of one share of common stock and backed by 58.com, is planning to raise at KAISA GROUP PLANS RIGHTS ISSUE one-fourth of a warrant, exercisable at least US$1bn from a Hong Kong IPO this US$11.50. year, said people close to the deal. Hong Kong-listed KAISA GROUP HOLDINGS aims Sponsor Jeneration Acquisition has The company is working with Bank of to raise up to HK$2.7bn (US$351m) through committed to purchase 5.3m warrants at a America, CICC and Credit Suisse. a rights issue. price of US$1.50 each for US$8m in a private !NJUKEûWASûACQUIREDûBYûONLINEûCLASSIlEDSû It plans to issue no more than 925m rights placement that will close simultaneously marketplace 58.com in 2015. An US$8.7bn shares on a 1-for-7 basis at HK$2.95 each, with the IPO. buyout saw 58.com delisted from the US representing a 25% discount to last The company is led by CEO Jason Tan, a last year. Thursday’s close of HK$3.94. partner and CIO of Jeneration Capital, and It covers property information for more The company intends to use the proceeds chairman Jimmy Chang, the founder of than 640 Chinese cities and counties, and 79 to improve its capital structure and for the Jeneration Group and a partner of Jeneration overseas countries. potential acquisition of a real estate project Capital. KE Holdings, another Chinese property in Beijing. The company plans to target technology listing service, raised US$2.1bn from an Registration for the entitlements will be and technology-enabled models in Asia, NYSE IPO in August. Its shares closed at OPENûONû!PRILûnû4HEûRESULTSûOFûTHEûRIGHTSû particularly in Greater China, including in US$60.66 on Tuesday, triple the issue price issue will be decided on May 6. mobility, online services, software, of US$20 and giving the company a market Haitong International Securities is the e-commerce, AI, robotics and clean energy. capitalisation of more than US$70bn. underwriter. Morgan Stanley and Deutsche Bank Securities are joint bookrunners. DIDI WEIGHS US LISTING OPTION BAIRONG PRICES IPO AT TOP OF RANGE HONY CAPITAL FILES FOR HEALTHCARE/ #HINASûTOPûRIDE HAILINGûlRMûDIDI CHUXING is BAIRONG has priced its Hong Kong IPO at the CONSUMER SPAC considering a US listing this year. (See TOPûOFûTHEû(+nûINDICATIVEûRANGEû Chinese US listings press ahead.) to raise HK$3.94bn (US$508m), according to HONY CAPITAL ACQUISITION, a blank cheque Banks, including Goldman Sachs, are people close to the deal. company established by Hony Capital that working closely with Didi on IPO preparations. 4HEû#HINESEûlNTECHûCOMPANYûSOLDûMû focuses on healthcare and consumer If the company decides to go ahead, a listing shares, or 25% of the enlarged share capital. companies in China, is planning an up APPLICATIONûMAYûBEûlLEDûASûEARLYûASû!PRILûAHEADû 4HEûlNALûPRICEûREPRESENTSûAûMARKETû TOû53Mû.93%û)0/ûANDûHASûlLEDûWITHû of a listing around mid-year, said people with capitalisation of US$2.03bn. the SEC. knowledge of the matter. Three cornerstone investors are in with a It is offering 30m units at US$10 each. However, a person familiar with the total investment of US$220m; Cederberg Each unit consists of one share of common situation believes Didi could still go for a (US$120m), China Structural Reform Fund stock and one-half of one warrant Hong Kong listing, even as a US listing via a (US$58m) and Franchise Fund (US$42m). redeemable at US$11.50 per share. SPAC has also been discussed. The person The shares will start trading on March 31. Hony Capital Acquisition Sponsor will said Didi was too big to list through a SPAC CICC, CMBC Capital and Morgan Stanley are purchase 8m warrants at US$1 each in a and many Chinese tech giants still prefer the sponsors. private placement that will close IPOs. simultaneously with the IPO. $IDIûSAIDûITûDIDûNOTûHAVEûAûDElNITEû)0/û BILIBILI WRAPS UP HK LISTING The SPAC was co-founded by chairman plan or timeline. John Zhao, who is also the founder, Nasdaq-listed BILIBILI has raised HK$20.2bn chairman and CEO of Hony Capital, and CEO BAIDU FALLS AS US REGULATOR ACTS (US$2.6bn) from a Hong Kong secondary and CFO Bing Yuan, who is also Hony listing at HK$808 per share. Capital’s COO and managing director. Shares in BAIDUûCLOSEDûmATûATû(+ûEACHûONû The shares were priced at a 2.7% discount to Hony Capital, which is backed by Legend their trading debut in Hong Kong on Monday’s close of US$106.88. One American Holdings, has made several successful Tuesday, after trading in a range of depositary share is equal to one ordinary share. investments, including in TikTok owner (+n ûBUTûENDINGûmATûWASûASû The Chinese video-streaming site ByteDance and WeWork’s China unit. good as it got for new shareholders. marketed 25m primary shares, or 6.6% of It intends to focus on technology-enabled The benchmark Hang Seng Index fell the enlarged share capital. companies in the healthcare and consumer 1.34% on the same day. The shares will be listed on March 29. sectors in China or a global or regional The shares subsequently slumped after Goldman Sachs, JP Morgan, Morgan Stanley company in these sectors with strong US regulators said they would start and UBS are the sponsors. connections or growth potential in China. implementing rules that would force Citigroup and Credit Suisse are the joint foreign companies to delist if they fail to bookrunners. comply with US auditing standards. They HONG KONG closed at HK$214 on Friday, down 15% from ADRIAN CHEN TO HEAD US$300m the issue price. JENERATION SPAC FILES FOR US$300m IPO ARTISAN SPAC Baidu’s retail offering was 112 times covered. The institutional tranche was JENERATION ACQUISITION CORPORATION, a SPAC Adrian Chen, a third generation descendant about 10 times covered and was allocated from Jeneration Group focusing on of New World Development billionaire among 307 investors. TECHNOLOGYûCOMPANIESûINû!SIA ûHASûlLEDûTOû founder Cheng Yu-tung, is planning a The Nasdaq-listed Chinese search engine the US Securities and Exchange Commission US$300m IPO of SPAC ARTISAN ACQUISITION. giant raised HK$23.9bn (US$3.08bn) from for an up to US$300m Nasdaq IPO. 4HEûCOMPANYûHASûlLEDûWITHûTHEû3%#

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The Cayman Islands-based company plans April, people with knowledge of the Axis and Morgan Stanley are joint bookrunners. to issue 30m units at US$10. Each unit consists transaction said. Hathway shares are down 14% this year of one share of common stock and one-third Axis, Bank of America, Citigroup, HDFC Securities, and Den has fallen 12%. of a warrant, exercisable at US$11.50. ICICI Securities, Kotak, SBI Capital Markets and Yes Anchor investors Aspex Master Fund and Securities are the banks on the transaction. VARROC RAISES RS7bn FROM SHARE SALE 0ACIlCû!LLIANCEû!SIAû/PPORTUNITYû&UNDûHAVEû It is not known yet whether the IPO will committed a forward-purchase agreement have a secondary component only, or both VARROC ENGINEERING has raised Rs7bn (US$97m) for US$60m of shares in a private placement. primary and secondary components. through the sale of 18m shares at Rs389 each, Sponsor Artisan will purchase 5.3m warrants Aditya Birla Sun Life AMC, the investment PRICEDûFROMûAû2Sn2SûRANGEû at US$1.50 each in a private placement. manager of Aditya Birla Sun Life Mutual The price is a 4.3% discount to the last Founder Adrian Cheng currently heads Fund, is a joint venture between Aditya Birla closing price of Rs406.60. Hong Kong-listed New World Development Group and Sun Life Financial of Canada. The shares sold represent 13.35% of the and Chow Tai Fook Jewellery Group. CEO Established in 1994, Aditya Birla Sun Life share capital. and director Ben Cheng is the managing AMC had assets under management of Ambit, Kotak and SBI Capital Markets are the partner at C Ventures and general manager around Rs2.38trn for the quarter ended lead managers. at New World Development. September 30 2020. It manages equity and The company plans to target the high- debt mutual funds. GOVERNMENT SELLS RAIL VIKAS SHARES growth healthcare, consumer and Aditya Birla will be the fourth AMC after technology sectors, focusing on businesses HDFC AMC, Nippon Life India AMC and UTI The Indian government has raised Rs5.5bn that it believes can be well-positioned for AMC to list on the local stock exchanges. (US$76m) through the sale of 200.9m RAIL success in Greater China. VIKAS NIGAM shares at Rs27.50 each. Credit Suisse and UBS are the joint MOBIKWIK TARGETS SEPTEMBER IPO The offer for sale comprised a base deal of bookrunners. 208.5m shares in the rail infrastructure Fintech ONE MOBIKWIK SYSTEM (MOBIKWIK) aims to company with an upsize option of 11m. GATEWAY STRATEGIC SPAC PLANS NYSE IPO LAUNCHûAû53MnMû)0/ûASûEARLYûASû The institutional tranche, which closed September, people with knowledge of the on Wednesday, was 1.05 times subscribed, GATEWAY STRATEGIC ACQUISITION, a blank cheque transaction said. while the retail portion, which closed on company established by private equity fund The company’s revenue grew 133% year- Thursday, was subscribed 16%. On MANAGERû'AWû#APITALû0ARTNERS ûHASûlLEDûTOû ON YEARûTOû2SBNû53M ûINûTHEûlNANCIALû Wednesday evening the government the US Securities and Exchange Commission year to March 2020. Its operating loss fell 91% announced it would fully upsize the offer for an NYSE IPO of up to US$300m. to Rs85m during the same period. but did not receive enough bids when retail The Hong Kong-based company plans to Founded by Bipin Preet Singh (CEO), Chandan books closed on Thursday. offer 30m units at US$10 each. Each unit Joshi (CEO payments business) and Upasana The sale price is at a 0.5% discount to the consists of one share of common stock and Taku (COO), MobiKwik’s payments network has pre-deal close of Rs27.65. one-half of a warrant, exercisable at US$11.50. 120 million users, three million merchants, and Elara Capital and IDBI Capital are the Sponsor Gaw Capital Acquisition will 300 billers. Its other shareholders include bookrunners. purchase 8m warrants at a price of US$1 Sequoia Capital and Bajaj Finance. each in a private placement that will close ICICI Securities and IIFL Securities are simultaneously with the IPO. working on the transaction. INDONESIA Anchor investors Aspex Master Fund, Dymon Asia Multi-Strategy Investment RELIANCE SELLS HATHWAY, DEN SHARES PERTAMINA SHIPPING MEETS BANKS Master Fund, Snow Lake Capital HK and Shanghai Fame have committed to purchase Subsidiaries of Reliance Industries have State-owned PERTAMINA INTERNATIONAL SHIPPING US$110m of shares in a forward-purchase launched Rs8.5bn (US$117m) and Rs2.69bn is meeting banks to work on a domestic IPO agreement via a private placement. respective offers for sale in cable television of around US$100m, people with knowledge The company was co-founded by companies HATHWAY CABLE & DATACOM and DEN of the transaction said. chairman Goodwin Gaw, the co-founder, NETWORKS. Last year energy major and parent chairman, and managing principal of Gaw Up to 338m Hathway shares, or 19% of the Pertamina indicated it would restructure its Capital Partners, and Christina Gaw, the SHAREûCAPITAL ûAREûONûOFFERûATûAûmOORûPRICEûOFû businesses in the oil and gas exploration, managing principal and head of capital 2Sû4HEûmOORûPRICEûISûATûANûû RElNING ûPOWERûANDûTRADINGûSECTORSûANDûLISTû markets of Gaw Capital Partners. discount to the previous close of Rs28.60. them separately. Pertamina is also planning It plans to target rapidly growing and Up to 55.48m Den shares or 11.62% of the IPOs for Pertamina Power Indonesia and highly scalable companies in the technology SHARESûOUTSTANDING ûAREûBEINGûSOLDûATûAûmOORû Pertamina Geothermal Energy. sector. price of Rs48.50. This represents a 10.8% PIS was set up in 2016 and provides Credit Suisse and Citigroup are the discount to the pre-deal close of Rs54.40. shipping services. bookrunners. Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings are the vendors. JAPAN INDIA The institutional offer opened for one day on Friday while the retail offer takes place FREEE COMPLETES GLOBAL FOLLOW-ON ADITYA BIRLA AMC PLANS IPO FILING on March 30. Jio acquired these companies in 2018 and FREEE, a provider of cloud-based enterprise ADITYA BIRLA SUN LIFE ASSET MANAGEMENT COMPANY ISûSELLINGûTHEûSHARESûTOûINCREASEûTHEûFREEûmOATû software for SMEs, has completed a ¥35.9bn PLANSûTOûlLEûFORûAû2SBNn2SBNû TOûûINûSTAGESû$ENSûCURRENTûFREEûmOATûISû (US$329m) global follow-on offering of 53MnM û)0/ûINûTHEûlRSTûHALFûOFû 13% and Hathway’s 5.9%. primary and secondary shares.

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It priced 4.48m shares (89.2% The shares are slated to be listed on initiatives at 2degrees as well as enable primary/10.8% secondary) at ¥8,002 each, March 30. Trilogy to reduce the debt it incurred while the bottom of an indicative discount range Bank of America, Mizuho and SMBC Nikko are building the 2degrees business,” said OFûnûTOû-ARCHûSûCLOSEûOFûc û the joint global coordinators and domestic Horwitz. There is a 600,000 primary shares joint bookrunners as well as international 2degrees serves more than 1.6 million greenshoe. joint bookrunners with UBS. subscribers throughout New Zealand, The shares will be allocated entirely to including more than 500,000 pay monthly international investors. CHANGE PRICES FOLLOW-ON SHARE mobile customers and over 130,000 There is a 90-day lock-up for the issuer OFFERING broadband customers. and the selling shareholders, including DCM VI and A-Fund. IT services company CHANGE has priced a Bank of America, Daiwa and Morgan Stanley ¥22.4bn (US$206m) international follow-on PHILIPPINES are the joint lead managers and share offering at ¥3,211 apiece. bookrunners. It sold 5.36m primary shares and 1.6m MONDE NISSIN TO PRE-MARKET IPO secondary shares at the issuer-friendly end APPIER PRICES TSE IPO AT TOP OFûTHEûnûDISCOUNTûRANGEûAGAINSTû-ARCHû Food maker MONDE NISSIN plans to start pre- 23’s close of ¥3,345. There is a 180-day marketing an IPO of up to Ps63bn 4AIWAN BASEDûARTIlCIALûINTELLIGENCEû lock-up on the issuer and major (US$1.3bn) in the second half of April, company APPIER GROUP has priced an upsized shareholders. people with knowledge of the transaction Tokyo Stock Exchange IPO at the top of the 4HEûOFFERINGûWASûMOREûTHANûlVEûTIMESû said. INDICATIVEûRANGEûOFûc nc ûPERûSHAREû oversubscribed, with strong support from The company had earlier disclosed the to raise ¥29.8bn (US$273m). sovereign wealth funds, long-only funds and IPO will comprise a base deal of 3.60bn The offer of 9.1m primary and 9.5m multi-strategy investors. Sovereign wealth primary shares at a maximum offer price of secondary shares was increased in size from fund and long-only investors took close to Ps17.50. There is a greenshoe option of the originally planned 9.1m primary and 60% of the book and the top 10 investors 540m secondary shares. CEO Henry 8.8m secondary shares. received more than 75% of the deal. Soesanto is the vendor. There is a 984,700 primary shares Selling shareholders included director At the maximum price, the issue will be greenshoe for domestic buyers. ANDûEXECUTIVEûOFlCERûCHAIRMANû9OSHIHISAû the country’s largest-ever IPO. The international portion was about 35 *IMBO ûEXECUTIVEûOFlCERSû+ENJIû+ANEDA û The proceeds will be used for capital times covered with the participation of Tetsuya Ishihara and Norimitsu Takahashi, expenditure and to repay loans. more than 200 investors, including ASûWELLûASûDIRECTORûANDûCHIEFûlNANCIALûOFlCERû Citigroup, Credit Suisse, JP Morgan and UBS sovereign wealth funds, global long-only Yutaka Yamada. are the joint global coordinators while BDO investors, sector specialists and 0ROCEEDSûWILLûBEûUSEDûFORû-! ûSTAFlNG û Capital, BPI Capital and First Metro are the fundamental hedge funds. About 80% of this investment in IT systems, and marketing local banks. portion was allocated to the long-only expenses. Monde Nissin, owned by businesswoman investors. Credit Suisse, SMBC Nikko and SBI were the Betty Ang, manufactures instant noodles Because of the strong demand, about 5% joint bookrunners. under the “Lucky Me” brand and cookies of the deal was shifted from the domestic to under the “Nissin” brand. the international portion, which eventually The company reported net sales of Ps68bn took about 75% of the deal. NEW ZEALAND in 2020, up 4.6% from Ps65bn in 2019. Net The domestic institutional tranche was PROlTûROSEûûTOû0SBNûFROMû0SBNû more than 12 times covered and the 2DEGREES CONSIDERS NZX, ASX LISTINGS domestic retail portion was over 330 times covered. Telecommunications provider 2DEGREES is SINGAPORE Overall, the deal was more than 70 times exploring a potential listing in New Zealand covered. and Australia in the second half of 2021 or SUNSEAP HIRES SGX IPO BANKS Proceeds will be used to support growth early 2022, the company said on Thursday. and other general corporate purposes. Brad Horwitz, chair of the 2degrees board Renewable energy solutions provider The international selling shareholders and president and CEO of major shareholder SUNSEAP GROUP is working with Credit Suisse included Asean China Investment fund III, Trilogy International Partners, said robust and Morgan Stanley on a S$600m (US$446m) Asean China Investment Fund US, Plaxie, global equity markets, a strong New Zealand Singapore Exchange IPO planned for later Sequoia Capital India Investments IV, Global dollar and attractive telecoms valuations are this year, people with knowledge of the Premier Group, Ta Strategic, Jafco Asia pushing the company to consider going matter said. Technology Fund VI, Hippo II Technology public. More banks are likely to join the Investment, co-founder Chia-yung Su, “This compelling macro backdrop, syndicate. executive Fabrizio Caruso, software combined with the resilience, scale and The company has a portfolio of completed engineer Ying-jui Chen and product growth of the 2degrees business, suggests and pipeline projects totalling 2 gigawatts in management vice-president Jeng-ting Tu. now is an opportune time for the Singapore and elsewhere in South-East Asia Japan’s SoftBank Group also sold shares in shareholders of 2degrees to explore a partial ANDûTHEû0ACIlC the IPO. listing of the business,” said Horwitz. CEO Frank Phuan is the co-founder of the Founded in 2012, the company provides 2degrees was launched in 2009 by US- company, which is also backed by Thai ANûARTIlCIALûINTELLIGENCEûENGINEûTOûBRANDSû based Trilogy International, which holds a ENERGYûlRMû"ANPU û$UBAI BASEDû and retailers to help improve customer 73.2% stake in the company. CONGLOMERATEû$UTCOûANDûlNANCIALû engagement and predict purchasing, among “An equity event in New Zealand would institutions such as Goldman Sachs other services. raise primary capital to accelerate growth and DBS.

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9 IFR Equities and SE 2376 p85-105.indd 89 26/03/2021 21:32:00 CORE REIT’S SGX IPO DELAYED “In our view all vehicles will be Books opened on Thursday and wrap up connected and data will drive all aspects of on Tuesday with trading the following day. CORE INCOME GLOBAL REIT’s S$410m (US$309m) mobility in the future,” he said in the %KOPAKûISûRAISINGûõM ûWITHûPROVISIONû Singapore Exchange real estate investment online roadshow. FORûUPûTOûõMûOFûSECONDARYûSELLINGûBYû#%/û trust IPO has been delayed while the search The terms attribute the company an Pieter Loose, structured as a 10% upsize of for strategic investors continues, people enterprise value of US$1.42bn at the the primary portion. There is also a 15% with knowledge of the transaction said. midpoint or about 9.8 times annualised primary greenshoe. Books will open after mid-April if strategic revenue for the most recent nine-month 4HEûMARKETûCAPITALISATIONûISûõMûATûTOP investors are found, rather than in March as period. OF THE RANGEûPRICING ûPUSHINGûUPûTOûõMû was originally planned. Among Cartrack’s competitors is Verizon on full exercise of the greenshoe. The free- The REIT is targeting a yield of 6.8% for Communications, which bought Fleetmatics mOATûISûAROUNDûnûDEPENDINGûONû THEûlNANCIALûYEARûTOû*UNEû for US$2.4bn in 2016. pricing and the exercise of the greenshoe. DBS is the sole issue-manager, and joint As indicated at pre-marketing, there is an global coordinator with Nomura. Macquarie, õMûCORNERSTONEûTRANCHEûFROMû!8!û UBS and UOB are the bookrunners. Investment Managers, KBC Asset South Korea’s AIP Asset Management and Management, Lazard Asset Management Japan’s Tokyu Land are the sponsors of the EUROPE/MIDDLE and UBS Asset Management. REIT, which will comprise Australian EAST/AFRICA ESG is a clear theme and is expected to commercial properties. attract environmental funds as well as water-dedicated funds and small-cap CARTRACK HEADS TO NASDAQ BELGIUM investors. Berenberg is sole global coordinator and KAROOOOO, the parent of the South African- MATCH POSTPONED: CLUB BRUGGE CALLS joint bookrunner with KBC Securities. LISTED û3INGAPORE BASEDûTELEMATICSûlRMû OFF BRUSSELS FLOAT Cartrack, expects to price an up to US$190m Nasdaq IPO post-close on Tuesday, March 30. The owners of Belgian football team CLUB CZECH REPUBLIC Karooooo is selling 2.5m shares and BRUGGE have taken their ball and gone home founder/CEO Zak Calisto 1.5m versus AFTERûCANCELLINGûTHEûPLANNEDûõMnõMû CTP CLOSES FLAT FOLLOWING €854m Cartrack’s equivalent adjusted stock price of all-secondary Euronext Brussels IPO. AMSTERDAM IPO US$47.52 on the Johannesburg Stock Market conditions were blamed for the Exchange on March 19, just before the postponement. Shares in Czech real estate business CTP offering was launched. 4HEûmOATûCOMPRISEDûMûSHARESûFROMû hung around pricing on debut in Morgan Stanley, Bank of America and William chairman Bart Verhaeghe, CEO Vincent Amsterdam on Thursday following its Blair are leading the IPO. Mannaert, Jan Boone and Peter Vanhecke, õMû)0/ûTHATûPRICEDûATûõûPERûSHAREûFROMû The IPO coincides with a corporate with provision for a 0.8m-share upsize and a AûõnõûRANGE restructure in which Karooooo is acquiring all 15% greenshoe. The range gave Brugge a (AVINGûOPENEDûATûõ ûTHEûSTOCKûCLUNGû of Cartrack’s shares and will de-list the latter’s õMnõMûMARKETûCAPITALISATION to strike until the close, with such steady shares from the JSE while enabling minority A banker involved said that the main trading suggesting stabilisation was in force. shareholders to reinvest in the new entity. issue was that football clubs have not had Nearly 5.4m shares changed hands, less Karooooo later plans to conduct a the best track record as listed companies than 9% of the base deal. secondary listing on the JSE. ANDûAREûDIFlCULTûTOûVALUEûBASEDûONûTHEû 4HEûSTOCKûOPENEDûATûõûONû&RIDAYûBUTû Calisto, who will emerge from the IPO uncertainty of success in major WASûTRADINGûmATûTOûPRICINGûAGAINûAFTERûPMûINû and reorganisation with a 58% stake, said competitions, sponsorship and media London. Karooooo’s mission was to build the leading partnerships. The all-primary base involved 61m shares mobility SaaS platform maximising the The small size and likely liquidity issues FORûAûFREE mOATûOFûJUSTûûANDûAûMARKETû VALUEûOFûDATAû4HEûlRMûHASûMûSUBSCRIBERSû PLAYEDûINTOûTHEûFAILUREûOFûTHEûmOAT ûWHICHû CAPITALISATIONûOFûõBNû4HEREûISûAûû INûlVEûCONTINENTS was due to complete bookbuilding on secondary greenshoe from owner Remon Thursday. There had not been any message 6OSûTHATûWILLûTAKEûTHEûFREE mOATûTOûûONû EMEA EQUITIES on coverage. full exercise. BOOKRUNNERS: 1/1/2021 TO DATE Despite that, the banker said that Club A large book of more than 150 lines saw Managing No of Total Share Brugge was seen as a good and well-run more than two-thirds go to long-only bank or group issues US$(m) (%) business, and investors had spent a lot of investors with strong representation from 1 Morgan Stanley 22 7,133.93 11.2 TIMEûONûTHEûmOATûDESPITEûTHEûWALLûOFûDEALSûINû real estate money. There were two emerging 2 Goldman Sachs 23 5,552.13 8.8 the market. market orders in the top 20 lines, with the 3 Citigroup 21 4,304.63 6.8 Berenberg, Credit Suisse and JP Morgan were rest global dedicated real estate that 4 JP Morgan 25 3,927.74 6.2 joint global coordinators and joint included money from Canada and Australia. 5 Jefferies 28 3,318.90 5.2 bookrunners with "ELlUSû"ANK/Kepler 4HEREûWASûROOMûTOûPRICEûABOVEûõûBUTû 6 Bank of America 18 3,277.10 5.2 Cheuvreux, which was also retail coordinator. management reacted to softening in the 7 Barclays 17 3,172.16 5.0 broader market and priced with a view to EKOPAK OPENS BOOKS FOR €55m 8 BNP Paribas 13 2,210.99 3.5 the best aftermarket and register. Pricing BRUSSELS FLOAT 9 Berenberg 17 2,154.88 3.4 represented just over a 50% premium to 10 Danske Bank 13 2,135.31 3.4 estimated 2022 EPRA NAV. Total 308 63,420.40 Water treatment business EKOPAK has set a CTP develops business parks in the Czech

Including all domestic and international deals and rights issues RANGEûOFûõnõûPERûSHAREûFORûITSûUPûTOû Republic, Romania, Hungary and Slovakia, Source: Refinitiv SDC code: C4cr õMû%URONEXTû"RUSSELSû)0/ with primary proceeds funding expansion

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in Europe, initially via Austria, Poland, Secondary selling from Intera Equity The company sold 2m primary share 3ERBIAûANDû"ULGARIA ûANDûlNANCINGû-!ûANDû Partners totalled 7.88m shares and TOûRAISEûõMûTOûFUNDûORGANICûGROWTHû debt repayment. approximately 672,053 new shares were and acquisitions. Parent MBB and CEO Erste Bank, Goldman Sachs and Morgan placed in an employee offering discounted Torben Kleinfeldt, with respective pre- Stanley were the global coordinators and TOûõûTHATûWASûBUMPEDûUPûFROMû û money positions of 66.7% and 33.3%, sold joint bookrunners with UBS and Kempen. ING shares originally. Intera is also providing a 6m shares, and there is a 1.2m share and Raiffeisen were joint lead managers. 15% secondary greenshoe. secondary greenshoe that could take Rothschild advised. 4HEûMARKETûCAPITALISATIONûISûõMûANDû PROCEEDSûUPûTOûõM THEûFREE mOATûONûTHEûBASEûDEALûISû ûRISINGû 4HEûFREE mOATûONûTHEûBASEûDEALûISû û to 56% on full exercise of the greenshoe. rising to 46% on full exercise of the DENMARK Completion of bookbuilding and trading greenshoe. The market capitalisation is were pulled forward by one day on strength õM TRYG GETS NEAR PERFECT TAKE-UP FOR of demand. The top 20 orders took approximately 80% RIGHTS ISSUE Carnegie and Danske Bank were joint of a multiple-times covered book that had bookrunners, with Nordnet running a strong support from anchor investors, There was 99.68% take-up for Danish insurer retail offer. global long-only accounts and sector TRYG’s DKr37bn (US$5.91bn) rights issue, specialists. Allocations were highly WHICHûPART lNANCESûITSûaBNûACQUISITIONûOFû NIGHTINGALE BURNS THROUGH ‘SHOE IN concentrated and skewed to international RSA Insurance Group alongside Canada’s TWO DAYS long-only accounts and sector accounts, Intact Financial. with around a third of the book zeroed and In total, there were acceptances for NIGHTINGALE HEALTH, which provides a data 90% going to long-only money. 351.39m out of 352.5m shares offered on a platform for detecting disease risks, burnt Pricing represented 14.8 times estimated 7-for-6 basis at DKr105. The balance of just through its full greenshoe in two days of Ebit for 2022 on consensus. over 1m shares, totalling just DKr18.7m, TRADINGûHEAVILYûBELOWûPRICINGûOFûITSûõMû Berenberg and Jefferies were global was dealt with through underwriting by a First North Growth Market Finland IPO. coordinators, and joint bookrunners with syndicate of joint global coordinators Danske The Friday, March 19 debut saw shares fall Hauck & Aufhaeuser. Bank and Morgan Stanley alongside joint lead NEARLYûûTOûõûFROMûlXEDûõûPRICINGû managers Citigroup, HSBC and Nordea. INûTHEûmOAT ûDROPPINGûAûFURTHERûûONû HEALTHINEERS COMPLETES VARIAN There is no provision for oversubscription -ONDAYûTOûlNISHûATûõû4HEûBULKûOFûTHEû REFINANCING WITH €2.34bn RAISE or a rump placing in Danish regulations. greenshoe, or approximately 2.19m out of Main shareholder Tryghedsgruppen the 2.44m shares available, was used on Healthcare technology business SIEMENS earlier carried out a DKr7.05bn tail-swallow debut. HEALTHINEERS was back in the market on ASûPARTûOFûTHEûlNANCINGûFORûITSûPARTICIPATIONû Despite the lack of help, shares fared 7EDNESDAYûEVENING ûRAISINGûõBNûTOû in the capital increase. SLIGHTLYûBETTERûONû4UESDAY ûCLOSINGûATûõ û RElNANCEûAûBRIDGEûFACILITYûRELATEDûTOûITSû 4RYGûSHARESûOPENEDûONû4UESDAYûmATûTOû up 6.78% for the day. The shares closed at US$16.4bn acquisition of Varian Medical -ONDAYSû$+RûCLOSE ûlNISHINGûû õûONû&RIDAY Systems. down at DKr145.50. Swedbank/Kepler Cheuvreux was sole 3IEMENSû(EALTHINEERSûRAISEDûõBNûINû bookrunner. September for the same purpose and was back for more on Wednesday, offering 53m FINLAND NEWûSHARESûATûõûFORûAûûDISCOUNTûTOû GERMANY THEûõû7EDNESDAYûCLOSE SITOWISE ENDS DEBUT UP Proceeds from the capital increase will A FRACTION FRIEDRICH VORWERK SPARKS 6% RISE replace the outstanding under the bridge ON DEBUT facility that was not dealt with by Finnish construction company SITOWISE September’s raise and recent loans. The CLOSEDûAûTINYûFRACTIONûABOVEûlXEDûõû German energy infrastructure company company is not planning any further share PRICINGûONûDEBUTûFOLLOWINGûITSûõMû FRIEDRICH VORWERK stood out on Thursday by SALESûFORûTHEûlNANCING Nasdaq Helsinki IPO on Thursday, opening trading up on debut against wider market As the trade had been keenly awaited, ATûõûBUTûFALLINGûAFTERûMIDDAYûTOûCLOSEû WEAKNESSûASûITSûSHARESûCLOSEDûATûõ ûûABOVEû THEREûWASûSIGNIlCANTûREVERSEûENQUIRYû ATûõû THEûõûPRICINGûINûITSûõMû&RANKFURTûmOAT and the deal was covered on indications Approximately 1.86m units changed 4HEûSTOCKûHADûOPENEDûATûõûANDû from a wall-cross that was completed hands on debut, around 11% of the IPO trading volumes were thin, at just 767,405 during the day. There was also an shares. shares, just under 10% of shares offered in ANCHORûORDERûATûTHATûSTAGEûFORûnû The stock pushed up on Friday, closing THEûmOAT of the target. ATûõ 4HEûmOATûWASûCOVEREDûAFTERûONEûDAYûOFû Formal coverage followed around half 0RICINGûHADûBEENûlXEDûATûõûFROMûTHEû bookbuilding and guidance was tightened to an hour after books opened with off and the deal was covered within hours of õnõûONû-ONDAYûFROMûõnõ ûBEFOREû reference to the close, and after 7:30pm in the launch of bookbuilding, including the GUIDINGûINVESTORSûTOûõûPRICINGûONû4UESDAYû London investors were informed that 15% secondary greenshoe, and a successful ahead of books closing. Books were also ORDERSûBELOWûõûRISKEDûMISSINGûOUTû completion had never been in doubt. covered on Monday throughout the original The shares have risen more than 20% in #ORNERSTONESûTOOKûõMûOFûTHEûOFFER range on the base deal. the last year and just over 8% in 2021, The company, which works primarily in 7ITHûCOVERAGEûABOVE ûPRICINGûATûõûPERû having closed in early February at an all- &INLANDûANDû3WEDEN ûRAISEDûõMûFORû share was deemed to be the best price level TIMEûHIGHûOFûõû4HEûCOMPANYûmOATEDû growth, including acquisitions, from the for a strong shareholder register and a INûAûõBNû)0/ûINû!PRILûûPRICEDûATûõû sale of 9.2m shares. positive aftermarket. per share.

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9 IFR Equities and SE 2376 p85-105.indd 91 26/03/2021 21:32:00 European Fintech SPAC raises €415m NETHERLANDS EFIC1 debuts in Amsterdam, which is emerging as a favourite listing destination for European SPACs.

EUROPEAN FINTECH IPO COMPANY 1 allocated The pool of SPAC-dedicated money in Europe said they would. Demand between hedge funds €415.2m of units in an Amsterdam SPAC IPO, is growing, and there are expectations that and long-only names was balanced. after conducting a four-day bookbuild last week. supply will keep coming throughout the year. It This year’s trickle of European SPACs is likely Bankers described the result as a great follows an explosion of SPACs that have raised to ramp up after Easter, with some hoping outcome for the SPAC, and pointed to a buoyant more than US$90bn in the first three months that the UK could join the likes of Amsterdam, market in Europe for the product that has grown of 2021. Frankfurt and Paris in hosting SPACs. in popularity in the last year. “Before SPACs became very broadly popular, “Amsterdam as a listing location seems to be “Listing a SPAC continues to be an the distribution was typically quite focused, it leading the European race in terms of SPACs. efficient way for companies to raise capital,” was very rare to have 100-plus line order books,” Listing as a Dutch BV gives flexibility, especially said Stephane Gruffat, head of EMEA ECM said Gruffat. “It has always been important to on the back end when it comes to de-SPAC-ing,” syndicate for Credit Suisse. “Finding a business have strong anchor demand at the beginning, said Omri Lumbroso, a managing director in combination is also consistent with the broader it gives good visibility on the success, and this EMEA ECM at Credit Suisse. “Paris and Frankfurt market environment we are in, with active M&A SPAC was no different.” SPACs have been done and other jurisdictions volumes, the cost of capital remaining attractive Dutch investment group HTP sponsored the are working on accommodating SPACs but the across the board, and valuations for sellers IPO, providing a €40m cornerstone investment. direction of travel so far has been Amsterdam.” remaining compelling.” HTP was one of the sellers in September’s The UK listing review published earlier this Books opened on Monday and closed €217m Frankfurt IPO of caravan maker Knaus month outlined proposed changes to UK listing on Thursday, with 36.15m units sold in the Tabbert. rules that would allow for SPACs like those in the base deal at €10 each and a 5.01m units in a Chief financial officer Nick Aperghis spent US and Amsterdam. greenshoe. 25 years in banking before founding advisory ACQ BURE raised SKr3.48bn this week, in what is Shares debuted on Friday, closing 2.6% down firm Aperghis & Co. The SPAC’s CIO Ben Davey believed to be the Sweden’s first SPAC. The long- at €9.74. was previously CEO of Barclays Ventures, group promised PEGASUS EUROPE, backed by former bankers Credit Suisse was global coordinator, and ABN head of strategy at Barclays and head of FIG Jean Pierre Mustier and Diego De Giorgi, asset AMRO was joint bookrunner. EMEA. manager Tikehau Capital and LVMH founder Bernard The SPAC has two years to complete an The final list of investors for the EFIC1 SPAC Arnault, has yet to open books. The planned SPAC, acquisition and has identified a list of potential was broad, with most of those engaged with in listing in Amsterdam, was announced six weeks ago. targets in Europe and Israel. early look meetings producing orders as they Lucy Raitano

A book of more than 150 lines was well !ûTOTALûOFûMûSHARESûWEREûSOLDûATûlXEDû The company sold 20m primary shares to supported by shareholders and wall-crossed PRICINGûOFûõ ûAûûDISCOUNTûTOûTHEû raise NKr500m for acquisitions and general accounts, with Qatar Investment Authority õûCLOSE corporate purposes. named as the anchor investor taking 16.2% The board sees potential for acquisitions Vendors Summa Equity, Goldman Sachs of the trade. The top 10 orders took in sectors such as automation, measuring Asset Management, Viking Venture and approximately 55% of the book, with the top technology and control engineering, management, including the CEO and CFO, 20 accounting for 75%. construction technology, technology for placed 44m shares and are providing a 15% Siemens Healthineers shares closed only infrastructure and logistics, as well as greenshoe. SLIGHTLYûDOWNûFORûTHEûDAYûONû4HURSDAYûATûõ energy and environmental technology. The market capitalisation is NKr4.1bn, Six banks will share league table credit. JP “In the current favourable M&A ANDûTHEûFREE mOATûONûTHEûBASEûDEALûISûû Morgan and UBS were joint global coordinators, environment, we want to retain our ability rising to 45% on full exercise of the and joint bookrunners with Berenberg, Credit to act quickly in order to acquire new greenshoe. Suisse, Deutsche Bank and UniCredit/Kepler hidden champions,” said Indus chairman A cornerstone tranche took NKr1.15bn. Cheuvreux. Also involved were BNP Paribas, Johannes Schmidt, and further acquisitions Premier Miton Investors was in for HSBC and Bank of America as co-bookrunners could come as early as this year. NKr300m, Swedbank Robur for NKr300m, and BBVA as co-lead manager. Shares remained above ABB pricing and Capital World Investors for NKr250m, Ophir CLOSEDûATûõûEACH ûDOWNûû Asset Management for NKr200m and Didner INDUS RAISES CASH FOR ACQUISITIONS & Gerge Fonder for NKr100m. The IPO was heavily oversubscribed with German industrial investment group INDUS NORWAY shares going to Nordic and international HOLDINGûRAISEDûõMûONû4HURSDAYûTOû accounts. PROVIDEûmEXIBILITYûFORûACQUISITIONS ECOONLINE DROPS 8% ON DEBUT ABG Sundal Collier and Pareto Securities were The proceeds will also ensure solid joint global coordinators and joint balance sheet ratios are maintained and Shares in software group ECOONLINE lost 8% on bookrunners with SpareBank 1 Markets. strengthen Indus’ equity and liquidity. THEIRûlRSTûDAYûOFûTRADINGûONû%URONEXTû'ROWTHû The capital increase represented 10% of Oslo after completing a NKr1.6bn (US$186m) IWS BLOWN OFF COURSE ON DEBUT Indus, and was managed by Commerzbank. )0/ûû4HEûSHARESûOPENEDûmATûTOûTHEûlXEDû Long-term institutional investors NKr25 pricing but closed at NKr23. Around Norwegian offshore wind service company INCLUDINGû'ERMANûFAMILYûOFlCESûSNAPPEDûUPû 8.5m units changed hands, representing INTEGRATED WIND SOLUTIONS shares closed down the shares, Indus said. about 13% of the IPO shares. more than 8% in debut trading, joining a

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NUMBERûOFûOTHERûmOATSûTHATûHAVEû US$24m for start-up costs, US$80m for Goldman Sachs, Sberbank, UBS and VTB disappointed. working capital, US$9m for transaction Capital are joint global coordinators. IWS shares closed on Thursday at costs and US$33m for general corporate Raiffeisen Bank and Sova Capital are co- .+R ûûBELOWûlXEDûPRICINGûOFû purposes, including licences and marketing bookrunners. NKr40 in the NKr700m (US$81m) Euronext costs. !ûRANGEûOFû2BS n2BS ûPERûSHAREû 'ROWTHû/SLOû)0/ûHAVINGûOPENEDûmATûTOû Norse Atlantic will offer routes it believes HASûBEENûSET ûVALUINGû'6ûATû2BSBNn pricing. Just over 1.5m units changed hands AREûPOPULARûANDûPROlTABLE ûINITIALLYûmYINGû Rbs112.7bn. on the day, about 8.5% of the IPO. between the US and Europe, serving Shares in GV Gold will be offered by the Shares were slightly higher late on Friday destinations such as New York, Los Angeles, miner’s three founders, Sergey Dokuchaev, afternoon at NKr37. Miami, London and Paris from Oslo. The Natalia Opaleva and Valerian Tikhonov, The IPO wrapped up on Friday, March 19 company will use Boeing 787 Dreamliners who own 61.2%. Sergey Vasilyev and at 2pm in Oslo, after a two-day bookbuild. and may expand into Asia as more BlackRock will also sell in the IPO. A total of 17.5m new shares were sold at $REAMLINERSûENTERûTHEûmEETû'ROWTHûWILLûBEû BlackRock owns 18%. lXEDûPRICINGûOFû.+RûEACH ûANDûAûGREENSHOEû based exclusively on demand and 4HEûFREE mOATûWILLûBEûAROUNDû ûTHOUGHû of 1.25m shares could lift proceeds to PROlTABILITYûANDûlRSTûmIGHTSûAREûEXPECTEDûINû that could fall as there is a brownshoe NKr750m. December. representing 13% of the base deal. IWS said the offering attracted strong Shares in new domestic airline Flyr Main peer Russian miner Polymetal with interest from domestic, Nordic and began trading on Euronext Growth Oslo a roughly US$9.5bn market capitalisation is international institutional investors and was earlier this month following a NKr600m substantially bigger than GV Gold, but the well oversubscribed. Almost three-quarters )0/û&LYRûISûEXPECTEDûTOûBEGINûmIGHTSûINûTHEû smaller gold miner is growing much faster was guaranteed by cornerstone investors. lRSTûHALFûOFûTHISûYEARûWITHûnûAIRCRAFT û and that is what investors are focused on, a Awilco, the shipping subsidiary of IWS gradually expanding to destinations banker involved said. parent Awilhelmsen Group, invested its around Europe. The price range gives GV Gold an EV/ promised NKr200m and asset management Arctic Securities, Pareto Securities and %BITDAûOFûnûFORûûONûCONSENSUSû4HISû company QVT subscribed for NKr50m it SpareBank 1 Markets are joint bookrunners on REPRESENTSûAûnûDISCOUNTûTOû0OLYMETAL û guaranteed before launch. Norse Atlantic’s IPO. Arctic and SpareBank 1 which trades at about 6.1 on the same Another six cornerstone institutional were bookrunners of Flyr’s IPO with METRIC ûANDûAûnûDISCOUNTûTOûITSûOTHERû investors took NKr260m, and CEO Lars- Carnegie. peer gold miner Polyus. Henrik Roren and COO Christopher The discount to peers can be attributed to Heidenreich took NKr2.5m and NKr1m, FROY TO PRICE OSLO IPO AT BOTTOM the smaller market cap and therefore respectively. smaller audience. A liquidity discount and IWS will use the cash to fund instalments Salmon farming services provider FROY the typical IPO discount have also been for its service vessels, for acquisitions and completed its NKr1.36bn (US$158m) Oslo incorporated. for general corporate purposes. Stock Exchange IPO on Thursday, with Froy The deal is already attracting strong ABG Sundal Collier was sole global raising NKr1bn for expansion, both locally interest from Russian investors, and most of coordinator, and joint bookrunners with and internationally. the international demand seen so far is from Clarksons Plateau Securities and Fearnley Pricing came as expected at the bottom of emerging market investors as well as some Securities. THEû.+Rn.+RûPRICEûRANGE ûWITHû&ROYû macro gold investors. offering 16.39m shares. Owner NTS, an GV recorded adjusted Ebitda of US$248m SECOND AIRLINE PLANS IPO ON aquaculture and shipping group, sold 5.9m in 2020, and said it has historically EURONEXT GROWTH OSLO shares for proceeds of NKr360m. outperformed the industry in production 4HEûFREE mOATûONûTHEûBASEûDEALûISû û growth, delivering compound annual NORSE ATLANTIC, a new long-haul, lost-cost rising to 28.6% on full exercise of a 15% GROWTHûRATEûOFûûDURINGûnû airline completed its NKr1.275bn (US$148m) secondary greenshoe. The market Production CAGR of more than 9% is Euronext Growth Oslo IPO on Thursday, but capitalisation is NKr5.26bn. EXPECTEDûINûn new investors will have to wait until April Trading begins Monday, March 29. GV has paid dividends for more than 10 12 to see how it fares on debut. Danske Bank, Nordea and SpareBank 1 years and will pay 40% of Ebitda each The all-primary base deal comprised Markets were joint bookrunners. quarter if net debt/Ebitda is below or equal MûNEWûSHARESûATûAûlXEDû.+RûFORûAû Froy is the result of an April 2020 merger to 1.5x, and 30% of Ebitda if net debt/Ebitda NKr1.475bn market capitalisation, with between Froy Gruppen and a subsidiary is below or equal to 2.5x. provision for a 10% secondary greenshoe. of NTS. Six cornerstone investors came in for an aggregate Nkr550m, with NKr140m from SWEDEN Delphi Fondene, NKr100m from DNB Asset RUSSIA Management, NKr100m from OLINK SHINES IN Handelsbanken, NKr85m from GV GOLD OPENS BOOKS ON NASDAQ DEBUT Andenaesgruppen, NKr70m from Skagen MOSCOW FLOAT Fondene and NKr55m from Nordea OLINK, a Swedish medical technology Investment Management. CEO Bjorn Tore Russian miner GV GOLD opened books last company, soared 80% on its Nasdaq debut, Larsen was allocated US$10m-equivalent. 4UESDAYûFORûITSû-OSCOWûmOATûOFûUPûTOû making it the clear standout among last 4HEûmOATûATTRACTEDûDEMANDûFROMû Rbs41.7bn (US$549m). week’s US new issues. Norwegian, Nordic and international money Bookbuilding follows just over a week of As the latest market entrant from a new and the book was multiple times covered. pre-marketing and will last until March 29, lELDûOFûDRUGûDISCOVERYûCALLEDûPROTEOMICS û Approximately US$4m will be spent on with pricing and trading set for the Olink was lined up against US-based rival lease deposits for up to 12 aircraft, with following day. Seer, one of last year’s hottest IPOs. Seer has

International Financing Review March 27 2021 93

9 IFR Equities and SE 2376 p85-105.indd 93 26/03/2021 21:32:01 more than doubled in price since its By last Friday at around 1.30pm in London tower infrastructure and small cell December IPO, which helped convince shares were slightly lower at SFr213. networks, including 5G. investors Olink was a must-own for US The seller is locked up for 90 days. The book was well subscribed with a good investors. retail component, and in excess of around Ahead of pricing Goldman Sachs, Morgan 60 lines. It was populated by UK investment Stanley and SVB Leerink told accounts the UAE trust specialists and other mutual funds. 17.65m-share offering was multiple-times Triple Point Investment is Digital 9’s oversubscribed and likely to price one to TRISTAR TRANSPORT LAUNCHES investment manager. TWOûDOLLARSûABOVEûTHEû53nûRANGEû US$160m-PLUS DUBAI FLOAT Trading in the shares will begin on marketed. March 31. They ended up placing a full-sized IPO at TRISTAR TRANSPORT, an energy logistics Directors subscribed for 130,000 shares, US$20.00, valuing Olink at US$2.4bn for a business for the downstream oil and gas while Triple Point Group subscribed for US$353m deal size. industry, has launched pre-marketing for a 6.5m shares in the placing. T. Rowe Price anchored the deal with a US$160m-plus Dubai Financial Market IPO. US$75m order at launch. 4HEûmOATûISûSKEWEDûTOWARDSûPRIMARY ûWITHû ACTIVEOPS WRAPS UP £75.7m AIM IPO Summa Equity, which acquired Olink in approximately 199m new shares expected 2019, and management took the opportunity TOûFETCHû53MnM ûWHICHûWILLûREPAYû ACTIVEOPS, an employee productivity to sell 4.4m shares combined, reducing the Dh197m (US$53.6m) of loans, with the software company, has completed a £75.7m 3WEDISHû0%ûlRMSûSTAKEûTOû balance for general corporate purposes. AIM IPO, and trading in the shares begins on Olink is the latest entrant of life sciences The IPO will also comprise up to 88.76m Monday. companies that use software and other secondary shares from Agility Public Calculus Capital and Richard Jeffery, diagnostic tools to assist in drug discovery. Warehousing Company, Gulf Investment ActiveOps’ co-founder and CEO, sold 45.04m Its proximity extension assay, a Corporation and Tristar founder and CEO shares at 168p, valuing the company at proteomics platform that helps understand Eugene Mayne. There is no greenshoe. aMû4HEûFREE mOATûISû the biology of drug candidates, was used by 4HEûFREE mOATûISûEXPECTEDûTOûBEûAROUNDû Early-look meetings began before Covid- 30 of the 40 largest biopharmaceutical 24%. 19, marking ActiveOps out as one of the companies globally in 2019. The Emirates Investment Authority has only IPOs of late where the issuer has The platform incorporates a current the right to subscribe for 5% of the offering. PHYSICALLYûMETûINVESTORSûBEFOREûmOATINGû4HEû library of about 1,500 validated protein 0ILOT lSHINGûHASûALREADYûBEENûCARRIEDûOUT û bulk of demand came out of the UK with biomarker targets, primarily detectable in drawing interest from local money and some European money, and the IPO was not plasma, that the company plans to expand emerging market accounts. A schedule of marketed in the US. to 3,000 this year and eventually to 6,000. pre-marketing followed by virtual The majority of the book was long-only Customers can pay Olink a one-time fee roadshows and bookbuilding will last about small to mid-cap accounts with some tech for analysis or purchase one of its data kits, THREEûWEEKS ûBUTûTHEREûISûmEXIBILITYûAROUNDû money too. called Explore, Target and Focus, to run timing. At the end of 2020, ActiveOps had their own analysis. Bank of America and Citigroup are joint approximately 80 enterprise customers, Last year, the company grew revenue by global coordinators, with First Abu Dhabi Bank predominantly in the banking, insurance 16.9% to US$54.1m. as joint regional coordinator and joint and business processing outsourcing sectors, bookrunner, and HSBC as joint regional including Nationwide, TD Bank, Anthem coordinator and joint bookrunner. Societe and DXC Technology. SWITZERLAND Generale is joint bookrunner, with Markaz as For full-year 2020, ActiveOps group co-lead manager. revenues rose 13.5% to £20.4m from £18m TRINGLE SELLS 7.5% OF COMET in 2019. Software-as-a-service revenues grew 21% to £16.2m. Tringle Investment sold 7.5% of Swiss radio UK ActiveOps said that Covid-19 has shown in frequency and X-ray technology company the mass move to home working that many COMET GROUP last Monday night for DIGITAL 9 INFRASTRUCTURE IPO FALLS organisations do not have adequate data, SFr121.2m (US$130m). SHORT OF TARGET insight and management processes to run UBS was sole bookrunner on the trade OPERATIONSûEFlCIENTLYûWHENûTHEûWORKFORCEûISû that saw the previous largest shareholder in DIGITAL 9 INFRASTRUCTURE has wrapped up a NOTûINûANûOFlCE Comet cut its stake to about 2.6%. £300m IPO for a LSE specialist fund segment The business is only seen as a modest The sale of 600,000 shares launched with listing, falling short its upper target of #OVID ûBENElCIARY ûBUTûTHEûPANDEMICûHASû reference to the SFr233 close. Books were £400m but raising more than the minimum put greater focus on management processes covered in about 20 minutes and messaging £250m. and the length of time taken to get to later informed investors that orders below The IPO was run by JP Morgan, with shares market has also helped investors see how SFr212 risked missing out. placed at 100p each. the company has fared in the intervening The deal priced at that level, representing As announced at launch, Digital 9 is period. a 9% discount to last Monday’s close. acquiring Aqua Comms. It plans to invest up Investec was sole bookrunner. The book had indications of interest in to £160m in the US$215m acquisition of the excess of the deal size from an earlier wall- platform, which owns and operates about MAILBOX REIT REVIVES LISTING ON CROSSING ûANDûTHEûlNALûBOOKûWASûMULTIPLEû KMûOFûTRANSATLANTICûSUBSEAûlBREû NEW EXCHANGE times subscribed. systems. Shares fell last Tuesday but remained The fund plans to invest in a range of MAILBOX REIT, owner of Birmingham’s Mailbox above ABB pricing, closing down 7.5% at digital infrastructure assets, including OFlCEûANDûRETAILûBUILDING ûHASûREVIVEDûPLANSû SFr215.50 each. SUBSEAûlBRE ûDATAûCENTRES ûTERRESTRIALûlBRE û TOûBECOMEûTHEûlRSTûSINGLEûASSETû2%)4ûTOûLISTû

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on new UK commercial real estate market, Liberum and Numis were bookrunners on the International Property Securities the placing that saw Chrysalis’ share capital Exchange. grow by 36.5%. AMERICAS Mailbox REIT postponed an IPO in early A total of 146.3m shares were placed at December targeting £62.5m from a placing, lXEDûPRICINGûONûPûEACH ûAûûDISCOUNTû offer for subscription and intermediaries to the March 10 close of 206p. UNITED STATES offer at 100p per share. An open offer on a 1-for-5 basis The postponement was due to a potential covered 35.37m shares, and 7.6m shares IPO MARKET LOOKS TO STEADY SHIP acquisition of Mailbox REIT’s owner and were issued through an intermediaries asset manager M7 Real Estate by a offer and offer for subscription. A ECM bankers plan to bring another seven commercial real estate investor. Oxford placing comprised the remaining IPOs seeking US$3.2bn in the next week, a 0ROPERTIESû'ROUPûCONlRMEDûTHEûACQUISITIONû 103.4m shares. chance to steady the ship after some of M7 Real Estate in late January. 4HEûFUNDRAISINGûISûTHEûlRSTûISSUEûFROMûAû uncharacteristic misses in recent weeks. Mailbox REIT now aims to begin trading 600m share placing programme. Friday’s session saw a better performance on the wholesale segment of the IPSX that is Chrysalis shares closed at 199.5p on from the new issue market than earlier in only open to institutional investors, rather Friday. the week when investors eyeing the than the prime listing it had planned last impending end of the quarter proved year, on or around April 19 through a listing ACHILLIES MARKETS NASDAQ IPO OVER reluctant to pay up for many issuers and a by introduction and no fundraising or sale of THE WEEKEND SIGNIlCANTûNUMBERûOFûDEALSûTRADEDûBELOWû existing shares. issue. WH Ireland is IPSX’s lead adviser and ACHILLES THERAPEUTICS, a cancer drug The past week, one of the busiest of the broker, having been a joint bookrunner with developer, began marketing its up to year, still saw 14 IPOs priced for US$4.8bn of Panmure Gordon on last year’s proposed US$185.25m Nasdaq IPO last week, a rare proceeds. IPO. Thursday morning launch that means its More challenging fundraising conditions, roadshow will span the weekend. driven in part by higher interest rates and TRIG RAISES £240m TO PAY DOWN RCF JP Morgan, Bank of America and Piper Sandler the negative impact on the valuations of AREûLOOKINGûTOûPLACEûMûSHARESûATû53n momentum stocks, claimed only one THE RENEWABLES INFRASTRUCTURE GROUP has $19 apiece after the US market close next casualty, that being the postponed US$700m raised £240m under its share issuance Tuesday, so a compressed four-day IPO of defence contractor Leonardo DRS. programme and will deploy the cash to marketing schedule. Yet opening declines in the newly minted pay down a recently renewed £500m 4HEûMARKETINGûRANGEûISûAûSIGNIlCANTû shares of DigitalOcean, Diversey, Semrush, revolving credit facility that was used for step-up from the US$11.75 and US$6.50 Vizio and Cricut prompted talk of a “buyers’ acquisitions. marks at which Achilles raised £52.7m strike”, though deals that priced on The capital raising involved 195m new and £100m from two private rounds last Thursday night and debuted on Friday shares at 123p, a 5.7% discount to the 130.4p year. (including ThredUp and Alignment close prior to launch on March 5 and The top of that range targets a market cap Healthcare) fared much better, suggesting representing approximately 9.3% of the of US$775m and would leave Achilles with the declines were more related to broader existing share capital. US$340m of cash. market conditions than individual deal Of those shares, 93.64m were sold in an Achilles is developing T-cell therapies that quality. initial placing, with 94.8m from a 1-for-10 target mutated genes expressed by However, the coming week promises open offer, including 13.4m excess cancerous cells. another test of the preparedness of investors applications, 2.19m from an offer for “Some companies want to launch as to keep supporting new issues after an subscription and 4.5m from an soon as they have regulatory clearance,” extended bull market. intermediaries offer. said a banker involved in the Achilles Heading the slate of IPOs pricing before TRIG put in place a 12-month share IPO. “If that means marketing across the the quarter ends on Wednesday is the issuance programme of up to 600m shares weekend, we are ready to do that.” US$936m NYSE IPO of tech-enabled real in early March. On US biotech IPOs, that schedule ESTATEûBROKERAGEûlRMû#OMPASSûANDûTHEûUPû The capital raising was approved by starts on Monday morning and concludes shareholders at an EGM on Thursday. on Thursday night. US EQUITIES Following recent acquisitions, TRIG has !CHILLESûBOASTSûSIGNIlCANTûSPONSORSHIPû BOOKRUNNERS: 1/1/2021 TO DATE drawn approximately £135m from its RCF. from US life sciences-specialist investors Managing No of Total Share TRIG shares opened on Thursday at 122p, Baker Brothers and RA Capital, both of bank or group issues US$(m) (%) and closed down 1.6% at 119.6p. which participated in the Series B and C 1 Goldman Sachs 81 13,338.59 14.8 Investec and Liberum were joint rounds and are known for supporting 2 Morgan Stanley 72 12,432.68 13.8 bookrunners. their investments by participating in 3 JP Morgan 73 11,147.40 12.4 IPOs. 4 Bank of America 74 9,424.25 10.5 CHRYSALIS UPSIZES CAPITAL RAISE ON Achilles’ T-cell therapies target 5 Barclays 40 4,169.08 4.6 STRONG DEMAND mutated genes called antigens that are 6 Credit Suisse 34 3,810.74 4.2 expressed by cancer cells but not healthy 7 Citigroup 32 3,761.01 4.2 CHRYSALIS INVESTMENTS has raised £300m in an tissue. 8 Jefferies 39 3,149.32 3.5 upsized follow-on that originally targeted Its lead drugs, currently in Phase I/II 9 RBC 24 2,408.24 2.7 £240m. trials, is focused on non-small cell lung 10 Stifel/KBW 36 1,731.95 1.9 The company said the strength of its near- cancer (NSCLC) and melanoma. Total 346 90,147.49

term investment pipeline and investor Achilles expects to report interim trial Including all domestic and international deals and rights issues demand led to the upsize. results by the middle of next year. Source: Refinitiv SDC code: C3r

International Financing Review March 27 2021 95

9 IFR Equities and SE 2376 p85-105.indd 95 26/03/2021 21:32:01 DigitalOcean slips on debut despite pricing IPO at top of the range

US Cloud infrastructure provider struggles to hold software-like valuation

DIGITALOCEAN became the latest growth IPO to had earlier indicated an interest in buying up to Founded in 2012 and now serving 570,000 disappoint on debut, though its US$775.5m US$175m of shares in the offering. mostly small and medium-sized business NYSE offering priced late on Tuesday still saw Though it has been common for recent customers, DigitalOcean last year generated it achieve a valuation well above its last private tech IPOs to up the range ahead of pricing, US$95.9m of adjusted Ebitda on revenues of funding round a year ago. DigitalOcean did not follow that playbook, US$318.4m, the latter up 25%. A syndicate led by Morgan Stanley, Goldman a hint demand might not be as strong as it DigitalOcean operates in a market with Sachs, JP Morgan, Bank of America, Barclays seemed. heavyweight competition from Amazon (AWS), and KeyBanc Capital Markets priced the cloud Microsoft (Azure), Google (GCP), IBM and services firm’s offering of 16.5m primary shares RICH Oracle. at US$47, the top of the US$44–$47 range. The final terms attributed the company an CEO Yancey Spruill said in the online Though Morgan Stanley employed a hybrid enterprise value of about US$5.2bn or a trailing roadshow presentation that the addressable auction/direct order entry process to help set EV/sales multiple of 16 times. Though it was market for “infrastructure-as-a-service” and the price and allocate the shares, the final difficult to find a good comp, this is much “platform-as-a-service” offerings for individuals terms proved too rich, the shares tumbling to as higher than cloud services provider Rackspace and companies with fewer than 500 employees low as US$39.01 before closing down 9.6% to Technology, which went public last year. was expected to grow at a 27% compound rate US$42.50 in Wednesday’s debut. Some investors complained the valuation was to US$115bn by 2024. “They really wanted to be a software rich considering DigitalOcean raised US$50m in Increased cloud adoption, the growing company, but they are not,” one tech ECM a Series C funding round at US$10.59 a share as number of software developers and more banker away from the deal said. recently as May last year. small and medium-sized businesses were all The offering was more than 10 times One investor also noted the business favourable long-term trends for DigitalOcean, oversubscribed while Tiger Global Management operated with 50%–60% gross margins or he said. and billionaire Len Blavatnik’s Access Industries somewhat lower than most software IPOs. Anthony Hughes

to US$519m Nasdaq IPO of online learning Citigroup, Morgan Stanley, Barclays and JP whose revenues have surged during the platform Coursera, both exploring themes Morgan were the joint bookrunners. pandemic, struggled on debut on Thursday THATûHAVEûBENElTEDûFROMûTHEûPANDEMICûBUTû The banks told investors ahead of pricing after pricing its Nasdaq IPO at the bottom may not do as well in a vaccinated world. that the offering was covered and coming of the marketing range for proceeds of Syndicate desks are banking on the within the range, which was not the case. US$306.2m. continuation of easy money conditions to The IPO assigned Diversey with US$6.3bn A syndicate led by Goldman Sachs and bring a massive pipeline of traditional IPOs of enterprise value, 14-times on a forward Morgan Stanley late on Wednesday priced this year, though IPO alternatives such as EV/Ebitda basis versus a 21-times multiple the sale of 15.31m Cricut shares, including SPACs and direct listings will probably for its peer Ecolab. 13.25m primary shares and 2.06m from absorb some of that volume. Bain formed Diversey in 2017 through a INSIDERS ûATû53ûVERSUSûTHEû53nû Though there are some IPOs ready to merger of assets it bought from Sealed Air range. launch on Monday, bankers may hold off to for US$3.3bn with another portfolio The offering was well oversubscribed, get a better idea of the extent of the damage company called Zenith Hygiene. The merger though some investors described the to investor psychology. created a pure-play provider of cleaning and business model as a head scratcher and the 7IDERûlLE TO OFFERûDISCOUNTSûFORûFOLLOW ONû hygiene services with more than 85,000 stock disappointed on debut, falling 11% to offerings also appear to be slowing the pace customers in 80 countries. US$17.80 in its opening session. of secondary issuance, though earnings Though Bain did not sell any shares on Cricut (pronounced like “cricket”) last BLACKOUTSûCOULDûALSOûRESTRICTûTHEûmOWûOFû the IPO, its equity stake was reduced from YEARûMADEûAû53MûNETûPROlTûAFTERûAû new deals. 91% to 77%. 97% jump in revenues to US$959m as stay-at- Diversey last year reported US$401m of home orders drove demand for arts and BAIN-BACKED DIVERSEY SLIPS IN adjusted Ebitda on revenues of US$2.6bn, craft products. NASDAQ DEBUT with only a slight revenue increase from Yet some are sceptical about the 2019 and a 2% dip from 2018. company’s ability to maintain this pace of DIVERSEY, the Bain Capital-backed cleaning The company plans to use the proceeds growth once the pandemic is over. and hygiene services provider, stumbled on from the IPO to pay debt down to US$1.9bn, Only 11% of revenue last year came from debut after raising US$692m on a deeply reducing leverage to 4.7-times trailing Ebitda. recurring subscriptions and most came from discounted Nasdaq IPO. its connected devices and accessories that its After pricing 46.15m shares at US$15.00, CRICUT PRICES NASDAQ IPO AT THE customers can use to make personalised 53ûBELOWûTHEûBOTTOMûOFûTHEû53nû BOTTOM OF THE RANGE birthday cards, mugs and T-shirts. marketing range, Diversey plunged as much 4HEûCOMPANYûSAIDûINûITSû)0/ûlLINGûTHATûITû as 10% in open trading before managing to CRICUT, the “creativity” platform and maker could not quantify the impact of stay-at- CLOSEûITSûlRSTûDAYûOFûTRADINGûATû53û of connected devices for arts and crafts home orders during Covid-19 on sales.

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4HEûlNALû)0/ûTERMSûATTRIBUTEDû#RICUTûANû enterprise value of US$4bn or about four times 2020 revenues. ViacomCBS streams losses Though it sold stock in the offering, Dallas-based Petrus Trust Company will continue to control the company with a on investors more than 60% stake post-lPO. US Curtain drops on epically bad US$2.7bn equity raise ACV JUMPS AFTER PRICING NASDAQ IPO WELL ABOVE RANGE Having just relaunched its video streaming Since announcing the March 4 launch date service, VIACOMCBS had hoped to raise US$3bn of Paramount+, its revamped CBS All Access ACV AUCTIONS, a SoftBank-backed online from a two-part equity-linked offering to streaming service, ViacomCBS Class B shares marketplace for used car dealers, priced its help fund content development. It settled for have been on a tear, more than doubling from Nasdaq IPO above range to raise US$413.8m US$2.7bn instead and, in doing so, prompted the US$45.30 level in January ahead of the and went on to stage one of the week’s investors to question the merits of transitioning announcement. strongest debuts. from old-world media to subscription-based At its analyst day last month, ViacomCBS said A syndicate led by Goldman Sachs, JP streaming. it planned to grow streaming revenue in 2024 to Morgan, Citigroup, Bank of America and Jefferies ViacomCBS traded at US$100.34 when it started US$7bn, up from the US$3.6bn run rate at which late on Tuesday priced a full-size offering of the equity financing, fell 9.1% to US$91.25 on it exited 2020. To support the new services, 16.55m primary shares at US$25, Tuesday as it was discussing plans for the money, which are tiered across free services (Pluto TV), SIGNIlCANTLYûABOVEûTHEû53 ûRANGEû and traded on Friday at US$58.70. paid (Paramount+) and premium (Showtime and EARLIERûUPPEDûFROMû53nûATûLAUNCH Morgan Stanley, JP Morgan and Goldman BET+), it plans to increase spending on content 4HEûlNALûTERMSûATTRIBUTEDû!#6ûAûMARKETû Sachs placed 20m shares on Tuesday night at from US$1bn currently to at least US$5bn by capitalisation of more than US$4bn versus US$85.00 apiece, a 7.4% discount to last sale, 2024. revenues of US$208.4m last year (the and a US$1bn three-year mandatory at a 17.5% Barron’s reported that the 11-year package, latter up 95%). premium to reference on the common and a beginning with the 2023 season and running As with a number of recent tech IPOs, 5.75% dividend, the wide end of price talk. The through 2033, is worth more than US$100bn Goldman employed its hybrid auction/direct US$1.7bn equity raise was reduced in size from a across all four media outlets. order entry process to help the price fixed US$2bn target. Viacom hopes to expand its subscription discovery process. ViacomCBS shares closed on Wednesday at video on demand services (Paramount+, The higher-than-expected price appeared US$70.10, implying US$300m of paper losses on Showtime, BET+) from 30m currently to to succeed in curbing ACV’s aftermarket the equity piece alone. 65m–75m in 2024, and its advertising-based performance, the stock opening at US$32 or ViacomCBS, formed from the late 2019 video on demand (Pluto TV) from 43m to 28% after the IPO price before closing its merger of Viacom and CBS, has not sold stock 100m–120m by 2024. lRSTû.ASDAQûSESSIONûATû53ûFORûAûû publicly since 2014, and then only by spinning off One rub is that the move to subscription will day-one gain. its CBS Outdoor Americas outdoor advertising cannibalise profitability of legacy businesses. The offering was heavily unit via an IPO. Stephen Lacey oversubscribed even after ACV’s disclosure late in the process of “a putative class action” against the ROCKET INTERNET RAISES US$250m marketplaces, e-commerce, enterprise COMPANYûTHATûHADûBEENûlLEDûTHEûPREVIOUSû WITH US SPAC SOFTWAREûASûAûSERVICE ûlNTECH ûHEALTHCAREû Friday in the US District Court for the TECHNOLOGYûANDûARTIlCIALûINTELLIGENCE Western District of New York. Shares in Rocket Internet’s blank cheque The units were steady at US$9.95 by 4pm The lawsuit alleges “violations of the company ROCKET INTERNET GROWTH in London on Wednesday. federal antitrust laws and New York State OPPORTUNITIES closed at US$9.95 on their Citigroup was sole bookrunner. law related to an alleged conspiracy to set NYSE debut on Tuesday from US$10 per unit bids on our marketplace from transactions IPO pricing, but that means little other than COMPASS HEADS IN IPO DIRECTION that originated from one seller”, ACV demand for US SPACs may be cooling. DISCLOSEDûINûAûlLINGû-ONDAY The SPAC raised US$250m from the sale SoftBank-backed real estate brokerage ACV, which counts SoftBank as a 7.1% of 25m units, each consisting of one COMPASS is seeking to raise up to US$936m shareholder, planned to “vigorously” defend ordinary share and one-quarter warrant from its NYSE IPO, scheduled to price post- itself, it said. with a strike of US$11.50 per share. There is close on Wednesday March 31. Founded in 2014, the Buffalo, New York- a 3.75m-unit greenshoe. A syndicate led by Goldman Sachs, Morgan based company transacted US$3bn of gross The top 20 orders took more than 70% Stanley and Barclays early on Tuesday merchandise value on its platform last year, from an oversubscribed book. launched the sale of 36m Class A shares at though it lost US$30.8m at the adjusted The tech incubator de-listed in Germany 53n ûATTRIBUTINGûTOûTHEûlRMûAûMARKETû Ebitda line. in October six years after its IPO, and its capitalisation of more than US$13bn at the Major shareholder Bessemer Venture model has previously been funding early- top of the range. Partners said in a tweet that ACV was “one stage companies rather than mature Compass’s revenues have risen more than of the fastest-growing software companies companies that are ready to list. 300% to US$3.72bn in the past two years as it we’ve ever seen. When compared to hyper- Rocket Internet Growth Opportunities has expanded into new markets, hired more growth SaaS companies, they rank HASûûMONTHSûTOûlNDûAûBUSINESSû agents and grown by acquisition, though it best-in-class in terms of the time it took combination in the technology sector, remains loss-making at the adjusted Ebitda them to get from US$1m to US$100m of preferably outside the US and with a LINEûANDûTHEûBOTTOMûLINEûnûTHEûlRMûMADEûAû run-rate revenue”. disruptive business model, such as online net loss of US$270.2m last year.

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9 IFR Equities and SE 2376 p85-105.indd 97 26/03/2021 21:32:01 QuantumScape short circuited by retail hype US Lithium-ion battery maker’s funding leaves retail holding bag

QUANTUMSCAPE, a maker of next-generation “This is a heavy user of capital that wanted to happens at a price at which fundamental lithium-ion batteries that went public through do something pretty aggressive in a stock that investors care, particularly in situations where a a SPAC merger in November, was forced to had really moved,” said one banker involved in balance sheet is concerned.” accept a massive price concession last week on the offering. “In retrospect, they probably tried to QuantumScape closed on Thursday at US$45.99. an all-primary stock sale that was reduced in do something that was too big.” QuantumScape, which went public by size to US$416m, roughly half the amount it was Only four months ago QuantumScape merging with Kensington Capital Acquisition, seeking to raise. secured US$500m of PIPE funding at US$10.00 plans to spend US$250m on a QS-0 prototype Goldman Sachs and Morgan Stanley on a share for a US$4.5bn valuation. At the stock’s facility and an estimated US$250m–$300m Wednesday placed a downsized 10.4m shares pre-launch close of US$64.29, that valuation on a QS-1 pilot facility it is planning to build as at US$40.00 apiece, a staggering 37.8% file-to- had inflated to US$23.6bn. The stock fell 10.6% part of a joint venture with Volkswagen. A third, offer discount after two days of marketing a deal on the first day of marketing on Tuesday and wholly owned, facility is also planned. originally sized at 13m shares. another 16.8% on Wednesday to US$45.99. Founded in 2010 after being spun out of Stanford QuantumScape is using the money Existing shareholders, such as PIPE investors University, QuantumScape passed a significant to help fund construction of a prototype Fidelity Investments and Janus Henderson, milestone in December when it unveiled the facility that will allow Volkswagen and other participated in the follow-on, but took a dollar- performance of a single layer cell at commercial automakers to test its battery, paving the cost-averaging approach. There were new scale that showed greater power production way for a second-stage expansion for mass institutions that participated as well, though also and faster charging times when compared with production if all goes according to plan. on fundamental merits rather than aspirations conventional lithium-ion battery technology. A The prototype facility is scheduled to be uninformed investors had paid. four-layer cell achieved similar performance, the completed this year and the second facility “There are times when a capital raise resets company said alongside fourth-quarter earnings could begin producing output sometime the market because the float needs to be in February. in 2024. consolidated,” said the banker. “That reset Stephen Lacey

!CCORDINGûTOûTHEûlLING û3OFT"ANKSû This translated into 59% growth in cash to its sponsor, though some investors Vision Fund has invested at least US$860m revenues to US$293.5m but the company argue Frontier is unlikely to capture as in Compass via three funding rounds since recorded a wider loss of US$66.8m as it lifted much enthusiasm as Sun Country, whose 2018. its headcount. management and hybrid business model Founded in 2012 by Ori Allon and Robert Like some other recent IPOs (such as helped to pique investor interest. 2EFFKINûANDûlRSTûLAUNCHEDûINû.EWû9ORKû#ITYû Oscar Health earlier this month), Coursera’s Sun Country was also an all-primary deal in 2013, Compass last year transacted lLINGûTAKESûADVANTAGEûOFûPROVISIONSûOFûTHEû whereas the Frontier offering will see Indigo US$152bn of real estate, representing 4% of JOBS Act to disclose only two years of Partners look to monetise its stake in an existing home sales in the US. lNANCIALûSTATEMENTSû airline it failed to take public four years ago. Coursera’s last private round in July last )NDIGOûISûOFmOADINGûMû&RONTIERûSHARES û COURSERA MOVES AHEAD WITH year saw it raise US$130m at US$17 a share, or nearly all of the secondary portion of the US$500m-PLUS NYSE IPO valuing the company at US$2.5bn. IPO, to cut its stake to 85.1% from 98.9%. The midpoint of the IPO terms attribute In September 2018 and February 2019, Taking advantage of a surge in revenues last the company an enterprise value of Frontier paid cash dividends of US$221m year as Covid-19 accelerated demand for US$4.4bn or about 15 times last year’s and US$166m, but as a condition of online education, COURSERA late on Monday revenues. accepting Treasury loans last year agreed not launched a US$500m-plus NYSE IPO for to pay further dividends until March 31 2022 pricing post-close on Tuesday March 30. FRONTIER LAUNCHES US$630m or one year after the loan is repaid. The online learning platform’s offering NASDAQ IPO comprises 15.73m shares, including SEMRUSH DOWNSIZES IPO BY 40% 14.66m primary and 1.07m from insiders, A week after Apollo Global Management- ATû53nûEACH backed Sun Country Airlines impressed SEMRUSH staged one of the weakest debuts by Morgan Stanley and Goldman Sachs lead a investors with its 50%-plus post-IPO gain, AûSOFTWAREûlRMûINûRECENTûMEMORYûWHENûITSû lRMûSYNDICATE FRONTIER AIRLINES early on Tuesday launched a shares dropped nearly 20% in its opening Easing their task, Baillie Gifford and Nasdaq IPO of up to US$630m. NYSE session Thursday. AFlLIATESûOFû#APITALû2ESEARCHû'LOBALû Citigroup, Barclays, Deutsche Bank, Morgan 4HEûONLINEûMARKETINGûSOFTWAREûlRM û Investors have severally but not jointly Stanley and Evercore are marketing 30m controlled by co-founders Oleg Shchegolev agreed to buy US$125m of shares in the shares, an even split of primary and and Dmitry Melnikov, earlier opted to offering or nearly one-quarter of the deal. SECONDARY ûATû53nûEACHûFORûPRICINGû downsize its IPO by 40% to US$140m. Founded in 2011 by Andrew Ng and post-close on Wednesday March 31. !MIDûMOREûDIFlCULTûCONDITIONSûINûTHEûNEW Daphne Koller and backed by New The terms attribute the airline a market cap issue market in recent sessions, a syndicate led Enterprise Associates, G Squared, Kleiner of up to US$4.7bn versus 2020 revenue of by Goldman Sachs, JP Morgan, Jefferies and Perkins and Australia’s Future Fund, US$1.25bn, the latter cut in half by Covid-19. KeyBanc Capital Markets late on Wednesday Coursera saw its registered user base soar by The offering would allow the ultra low- priced the sale of 10m primary Semrush 65% to 77m last year. cost carrier to boost its liquidity and return SHARESûATû53ûVERSUSûTHEû53nûRANGE

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The downsize from 16.8m shares saw the ratios, if there is further deposit growth we Design Therapeutics, a pre-clinical number of primary shares offered fall from may need to raise additional capital, developer of small molecule drugs, raised 15m and the removal of a planned including potentially common equity,” the US$240m in one of the biggest biotech IPOs secondary sale of 1.8m shares by the BANKûSAIDûINû-ONDAYSûlLING this year. company’s two founders. SVB’s stock price has surged from US$135 at Goldman Sachs, SVB Leerink and Piper Sandler Thursday’s debut session saw the stock the onset of the pandemic a year ago to a record placed the all-primary sale of 12m shares at immediately drop to US$11.50 before high of US$577.06 earlier this month, jumping 53 ûATOPûTHEû53nûRANGEû closing at US$11.22 for a 19.9% loss. 40% this year alone ahead of the offering. The IPO valued Design, a pre-clinical The IPO terms attributed Semrush a The bank also raised US$750m from a developer of treatments for rare diseases, at market cap of US$2.1bn or a multiple to preferred stock sale in late January, Aû53BNûVALUATIONû4HATûWASûAûSIGNIlCANTû forecast 2022 revenue of about nine based The sale of common and the earlier step-up from the US$10.68 per share on market models. Comp Sprout Social preferred stock sale would lift SVB’s bank valuation Design fetched on its US$125m trades at a equivalent multiple of 12.6. tier 1 leverage ratio to 7.9% from 6.4% at the Series B round in January. Though Semrush made a net loss of end of last year, Jefferies analysts wrote in a That crossover round was supported US$7m last year, it generated operating note to clients. by blue-chip institutions such as BlackRock, CASHmOWûOFû53MûORûûOFûSALES SVB recently disclosed a US$70m Janus Henderson, RA Capital and T. Rowe 4HEûlRMSûSUBSCRIPTION BASEDûSOFTWAREû fraudulent credit exposure within its capital Price. helps companies improve their online call portfolio, but this will be more than Design now has US$370m from its IPO visibility, using machine learning to identify offset by outsized venture capital gains in and crossover for developing a new type of keywords, ads, third-party websites and THEûCURRENTûQUARTERû53MnM drugs called gene-targeted chimeras CONTENTûTHATûISûDRIVINGûTRAFlCû9ETûITûFACESû (GeneTACs), which seek to disrupt the stiff competition, including from lower- THREDUP JUMPS AFTER US$168m expression of faulty genes that cause priced and free tools provided by the likes of inherited diseases like Friedreich’s ataxia Google and Facebook. THREDUP overcame the uneven performance and myotonic dystrophy. As of the end of last year, Semrush’s of recent fashion e-commerce IPOs by Design is still more than a year away from platform had 404,000 active free customers staging a solid Nasdaq debut on Friday. launching clinical trials on its lead drug. and 67,000 paying customers in more than A syndicate led by Goldman Sachs, Morgan Edgewise Therapeutics, which is also 142 countries. Stanley, Barclays and William Blair late on tackling inherited diseases, raised US$175m Thursday priced the sale of 12m shares in from an IPO that was both upsized and SVB RAISES US$1bn AFTER DEPOSIT SURGE the second-hand apparel marketplace at priced at the top of the range. 53 ûTHEûTOPûOFûTHEû53nûMARKETINGû JP Morgan, Goldman Sachs and SVB Leerink SVB FINANCIAL raised US$1bn in equity to range, for proceeds of US$168m. placed 11m shares at US$16.00, increasing bolster its capital base to offset a surge in The shares opened at US$18.25 for an FROMûMûSHARESûMARKETEDûATû53n deposits into the Silicon Valley-based bank immediate 30.4% gain, one of the strongest The offer price values Edgewise around in the past year. outcomes in a tough week for the new issue US$875m. Goldman Sachs and Bank of America took a market. That compares with the US$13.85 mark day of marketing on Monday to sell 2m 4HEûlNALû)0/ûTERMSûATTRIBUTEDûTHEûCOMPANYû on its US$95m Series C round in December shares or 3.7% of outstanding at US$500 an enterprise value of nearly US$1.4bn or that was led by Viking Global Investors and EACH ûANûûlLE TO OFFERûDISCOUNTûVERSUSû multiple to trailing revenue of 7.5, a discount to RA Capital. Friday’s US$544.61 close. fashion marketplace Poshmark. Edgewise has US$280m of cash between Like many recent follow-ons, the stock Despite doubling on debut in January, the crossover and IPO. It is using that cash to struggled in the aftermarket, closing at Poshmark is currently trading below its IPO fund a Phase I trial of its lead drug as a US$495.65 by Thursday’s close. price. potential treatment for multiple inherited !ûBENElCIARYûOFûTHEûFRENETICûPACEûOFû%#-û ThredUp, whose platform serves 1.2m muscular disorders, including Duchenne deal-making and excess liquidity in the active buyers and 428,000 active sellers, last muscular dystrophy. lNANCIALûSYSTEM û36"ûHASûSEENûITSûDEPOSITû year reported a net loss of US$46.6m on Ikena Oncology achieved a midpoint of base surge from US$61.8bn at the end of revenues of US$186m, the latter up just range pricing outcome on a US$125m IPO. 2019 to US$102bn at the end of last year and 13.6% year-on-year. Jefferies, Cowen, Credit Suisse and William to about US$110bn in the current quarter. Blair placed a full sized offering of 7.8m According to the bank, this “has been BIOTECH IPOS NAVIGATE CHOPPY MARKETS SHARESûATû53 ûWITHINûTHEû53nû driven by our clients across all segments range marketed. obtaining liquidity through liquidity events A trio of biotechs launched their Nasdaq The IPO values Ikena, a Phase I developer such as IPOs, secondary offerings, SPAC IPOs on Monday morning and all for pricing of cancer drugs, at roughly US$600m. That is fundraising, acquisitions and other on Thursday night. AûSIGNIlCANTûSTEP UPûFROMûTHEû53ûPERû FUNDRAISINGûACTIVITIESûnûWHICHûHAVEûALLûBEENû DESIGN THERAPEUTICS, EDGEWISE THERAPEUTICS share valuation it fetched on US$120m at record high levels over the last 12 and IKENA ONCOLOGYûALLûlLEDûPRELIMINARYû Series B crossover round in December. months”. documents for the offerings on March 5 and Fidelity Investments led the Series B 9ETûTHEûINmUXûOFûDEPOSITSûHASûALSOû all three biotechs conducted late-stage round. increased the bank’s assets and decreased private funding rounds in recent months in Ikena is developing small molecule cancer its capital ratios for which assets (total and preparation for their debuts. drugs designed to inhibit the Hippo signalling risk-weighted) are the denominator. The By launching as quickly as permissible pathway, a prevalent driver of cancer that has bank indicated it may yet need to raise after the 15-day mandatory viewing period, been linked to an estimated 10% of all cancers. more capital. SYNDICATEûBANKERSûWEREûCONlDENTûINûTHEû The IPO would give it about US$275m of cash “Although the net proceeds of this depth of demand as broader market for Phase I trials and advance development of offering will be used to support those capital conditions turned increasingly hostile. other drug candidates.

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9 IFR Equities and SE 2376 p85-105.indd 99 26/03/2021 21:32:02 A step back for blank cheques SPAC Serial issuance inundates investor demand

That was a rough week in SPAC land, and Citigroup was to the left of Goldman Sachs and Naomi Osaka (tennis) and Robert Lewandowski one that will probably result in cessation of stabilised II with roles flipped on III. (the Polish footballer and Bundesliga standout). the seemingly endless parade of new SPAC Perhaps Citi took a more active role in Monday saw 13 SPACs raise US$3.5bn. financings. stabilising than Goldman. By week’s end Khosla This week’s disappointments include Overall, 20 new SPACs priced but 17 “broke III had recovered to US$9.96. well-regarded serial SPAC sponsors such as the bank” on their debut. Even the double-IPO CORAZON CAPITAL V838 MONOCEROS, a Gores Group (GORES GUGGENHEIM) and Richard prints from veteran venture capitalist Vinod US$200m SPAC headed by OKCupid founder Branson/Virgin Group (VIRGIN GROUP ACQUISITION Khosla struggled. Sam Yagan, did not get much love that same II), whose new SPACs now trade at US$9.96 and The larger of the two, the US$500m KHOSLA day; the US$350m energy transition-focused US$9.99. VENTURES ACQUISITION III, opened on Nasdaq on DECARBONIZATION PLUS ACQUISITION III also failed TB SA ACQUISITION, a US$250m SPAC debut Wednesday at US$9.80, ticked a low of US$9.69, to transition; and the US$250m DISRUPTIVE from TowerBrook Capital focused on ESG and finished its debut session at US$9.75. ACQUISITION I, a health and wellness SPAC debut investment in Africa, closed its debut on KHOSLA VENTURES II, sized at US$400m, for VC Disruptive, only managed to disrupt Monday at US$9.71, one of the worst debuts we was more actively traded, closing its debut on Wednesday by disappointing investors. can recall. Wednesday flat-to-offer at US$10.00 after a Corazon, Decarbonization III and Disruptive So far this year, 293 SPACs have raised a late-day surge. closed their Wednesday debuts at US$9.80, combined US$90.5bn through US stock listings. There are no real differences between the two US$9.88 and US$9.84. That works out to about six SPACs every single Khosla SPACs. Disruptive came with an “Athlete Advisory business day. Both were entirely stock (no warrants), both Council” currently comprised of Justin Verlander Another 235 SPACs have filed to go public, have a broad tech mandate, and both featured (major league baseball), Canelo Alvarez according to IFR data. nominal US$10m forward purchase agreements. (boxing), Patrick Mahomes (American football), Stephen Lacey

SPAC SUMMARY: WEEK ENDING MARCH 26 2021 Warrant Name Sponsors Target Size coverage Bookrunners ArcLight Clean Transition II ArcLight Capital Partners Energy transition US$275.0m 1/4 Citigroup Corazon Capital V838 Monoceros Corazon Capital (Sam Yagan) Tech US$200.0m 1/3 Citigroup Decarbonization Plus Acquisition III Riverstone Energy transition US$350.0m 1/3 Credit Suisse, Citigroup Disruptive Acquisition I Alexander Davis, Phillip Caputo, Health and wellness US$250.0m 1/3 Credit Suisse, Citigroup David Tarnowski Dragoneer Growth Opportunities III Dragoneer Investment Group Tech US$400.0m No warrants Citigroup, Goldman Sachs, JP Morgan Glass Houses Acquisition Quincy Fennebreque Energy transition US$200.0m 1/2 Jefferies Gores Guggenheim Gores Group, Guggenheim Capital Not defined US$750.0m 1/5 Deutsche Bank, Citigroup, Morgan Stanley Khosla Ventures Acquisition II Vinod Khosla Not defined US$400.0m No warrants Citigroup, Goldman Sachs Khosla Ventures Acquisition III Vinod Khosla Not defined US$500.0m No warrants Goldman Sachs, Citigroup Landcadia Holdings IV Fertitta Group Consumer, hospitality US$500.0m 1/4 Jefferies Lead Edge Growth Opportunities Lead Edge Capital Partners Tech US$300.0m 1/3 Credit Suisse, JP Morgan Magnum Opus Acquisition L2 Capital TMT, Asia US$200.0m 1/2 Credit Suisse MSD Acquisition MSD Partners, TMT US$500.0m 1/5 Goldman Sachs, Morgan Stanley Michael Dell strategic adviser Newberry Street Acquisition Matthew Hong TMT US$120.0m 1/2 EarlyBird Capital NextGen Acquisition II George Mattson, Gregory Summe Industrial, tech, US$350.0m 1/5 Goldman Sachs, Credit Suisse healthcare Northern Genesis Acquisition III Northern Genesis ESG US$150.0m 1/4 Morgan Stanley, Wells Fargo, TD Securities Rocket Internet Growth Rocket Internet Tech US$250.0m 1/4 Citigroup Opportunities Supernova Partners Acquisition III Spencer Rascoff, Alexander Klabin, TMT US$250.0m 1/4 JP Morgan, Jefferies Robert Reid TB SA Acquisition TowerBrook Capital ESG, Africa US$200.0m 1/3 Deutsche Bank Virgin Group Acquisition II Richard Branson Not defined US$350.0m 1/5 Credit Suisse Source: Refinitiv Reach the people who matter For more information on the various advertising and sponsorship opportunities available within IFR, please contact: Europe & USA: Leonie Welss, [email protected], tel: +44 (0)20 4530 3073 Asia & Middle East: Shahid Hamid, [email protected], tel: +65 975 55031

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ECM DEALS: WEEK ENDING 26/3/2021 Stock Country Date Amount Price Deal type Bookrunner(s) Piedmont Lithium Australia 23/03/2021 US$122.5m US$70 Follow-on (Primary) JP Morgan, Evercore, Canaccord Genuity Dialogue Health Technologies Canada 23/03/2021 C$100m C$9 IPO (Primary) National Bank Financial, RBC CM, Scotia CM, TD Securities Telus Canada 25/03/2021 C$1,300m C$25.35 Accelerated bookbuild (Primary) RBC CM, CIBC CM, BMO CM, Scotiabank, TD Secs Bairong China 26/03/2021 HK$3.94bn HK$31.80 IPO (Primary) CICC, CMBC Capital, Morgan Stanley Bilibili China 23/03/2021 HK$20.2bn HK$808 IPO (Primary) Goldman Sachs, JP Morgan, Morgan Stanley, UBS Zhihu China 25/03/2021 US$522.5m US$9.50 IPO (Primary) Credit Suisse, Goldman Sachs, JP Morgan CTP Czech Rep 24/03/2021 €854m €14 IPO (Primary & Secondary) Erste Bank, Goldman Sachs, Morgan Stanley, UBS, Kempen. Rothschild advising Tryg Denmark 23/03/2021 DKr37bn DKr105 Rights issue Danske Bank, Morgan Stanley Sitowise Finland 24/03/2021 €140m €8.20 IPO (Primary & Secondary) Carnegie, Danske Bank Friedrich Vorwerk Germany 23/03/2021 €360m €45 IPO (Primary & Secondary) Berenberg, Jefferies, Hauck & Aufhauser Indus Holding Germany 25/03/2021 €85.3m €34.90 Accelerated bookbuild (Primary) Commerzbank Siemens Healthineers Germany 24/03/2021 €2.34bn €44.10 Accelerated bookbuild (Primary) JP Morgan, UBS, Berenberg, Credit Suisse, Deutsche Bank, UniCredit Nazara Technologies India 19/03/2021 Rs5.8bn Rs1101 IPO (Seconday) ICICI Securities, IIFL Securities, Jefferies, Nomura Rail Vikas India 24/03/2021 Rs6bn Rs27.50 Follow-on (Primary) Elara, IDBI Bank Varroc Engineering India 22/03/2021 Rs7bn Rs390 Follow-on (Primary) Ambit, Kotak Prothena Ireland 23/03/2021 US$72.6m US$20.75 Accelerated bookbuild (Primary) Citigroup, Jefferies, Cantor Appier Group Japan 23/03/2021 ¥29.8bn ¥1,600 IPO (Primary/Secondary) Bank of America, Mizuho, SMBC Nikko Change Japan 23/03/2021 ¥22.4bn ¥3,211 Follow-on (Primary/ Secondary) Credit Suisse, SMBC Nikko, SBI Freee Japan 25/03/2021 ¥35.9bn ¥8,002 Follow-on (Primary/ Secondary) BofA, Daiwa, Morgan Stanley European FinTech IPO Company 1 Netherlands 25/03/2021 €365.1m €10 IPO (SPAC) Credit Suisse, ABN AMRO Lava Therapeutics Netherlands 24/03/2021 US$100.5m US$15 IPO (Primary) JP Morgan, Jefferies, SVB Leerink EcoOnline Norway 22/03/2021 NKr1.6bn NKr25 IPO (Primary & Secondary) ABG Sundal Collier, Pareto Securities, Sparebank 1 Markets Froy Norway 25/03/2021 NKr1.36bn NKr61 IPO (Primary & Secondary) Danske Bank, Nordea, SpareBank 1 Markets Integrated Wind Solutions Norway 22/03/2021 NKr700m NKr40 IPO (Primary) ABG Sundal Collier, Clarksons Platou, Fearnley Norse Atlantic Norway 25/03/2021 NKr1.275bn NKr20 IPO (Primary) Arctic Securities, Pareto Securities, SpareBank 1 Markets Olink Sweden 24/03/2021 US$352.9m US$20 IPO (Primary & Secondary) Goldman Sachs, Morgan Stanley, SVB Leerink LMK Group Sweden 24/03/2021 SKr500m SKr79.50 IPO (Primary & Secondary) Bryan, Garnier, Pareto Securities Comet Group Switzerland 22/03/2021 SFr121.2m SFr212 Accelerated bookbuild (Secondary) UBS Chrysalis Investments UK 25/03/2021 £300m 205p Follow-on (Primary) Liberum, Numis Digital 9 Infrastructure UK 26/03/2021 £300m 100p IPO (Primary) JP Morgan The Renewables Infrastructure Grp UK 24/03/2021 £240m 123p Rights issue Investec, Liberum Trustpilot UK 22/03/2021 £473.2m 265p IPO (Primary & Secondary) JP Morgan, Morgan Stanley, Berenberg, Danske Bk ACV Auctions US 23/03/2021 US$413.8m US$25 IPO (Primary) Goldman Sachs, JP Morgan, Citigroup, BofA, Jefferies Alignment Healthcare US 25/03/2021 US$489.6m US$18 IPO (Primary & Secondary) Goldman Sachs, Morgan Stanley, JP Morgan, BofA, William Blair Arbor Realty Trust US 25/03/2021 US$109.6m US$15.65 Accelerated bookbuild (Primary) JP Morgan, JMP Securities, Raymond James Certara US 24/03/2021 US$250m US$25 Follow-on (Primary) Jefferies, Morgan Stanley, BofA Cricut US 24/03/2021 US$306.3m US$20 IPO (Primary) Goldman Sachs, Morgan Stanley, Citigroup, Barclays Design Therapeutics US 25/03/2021 US$240m US$20 IPO (Primary) Goldman Sachs, SVB Leerink, Piper Sandler DigitalOcean US 23/03/2021 US$775.5m US$47 IPO (Primary) Morgan Stanley, Goldman Sachs, JP Morgan, BofA, Barclays, KeyBanc CM Diversey Holdings US 24/03/2021 US$692.3m US$15 IPO (Primary) Citigroup, Morgan Stanley, Barclays, JP Morgan Edgewise Therapeutics US 25/03/2021 US$176m US$16 IPO (Primary) JP Morgan, Goldman Sachs, SVB Leerink Exagen US 22/03/2021 US$60.1m US$16.25 Accelerated bookbuild (Primary) Cowen, William Blair, Cantor Ikena Oncology US 25/03/2021 US$125m US$16 IPO (Primary) Jefferies, Cowen, Credit Suisse, William Blair MP Materials US 23/03/2021 US$210m US$35 Follow-on (Primary) Deutsche Bank, BofA, Morgan Stanley, Cowen Quantumscape US 24/03/2021 US$416m US$40 Follow-on (Primary) Goldman Sachs, Morgan Stanley, Deutsche Bank Semrush US 24/03/2021 US$140m US$14 IPO (Primary & Secondary) Goldman Sachs, JP Morgan, Jefferies, KeyBanc CM SVB Financial US 22/03/2021 US$1,000m US$500 Follow-on (Primary) Goldman Sachs, BofA ThredUp US 25/03/2021 US$168m US$14 IPO (Primary & Secondary) Goldman Sachs, Morgan Stanley, Barclays, Wells Fargo ViacomCBS US 23/03/2021 US$1,700m US$85 Follow-on (Primary) Morgan Stanley, JP Morgan, Goldman Sachs, Mizuho Securities, Siebert Williams Shank Vizio US 24/03/2021 US$257.3m US$21 IPO (Primary & Secondary) JP Morgan, BofA, Wells Fargo, Guggenheim Secs, Needham & Co, Piper Sandler, Roth Capital Partners Western Midstream Partners US 22/03/2021 US$141.6m US$17.70 Accelerated bookbuild (Secondary) BofA

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9 IFR Equities and SE 2376 p85-105.indd 101 26/03/2021 21:32:02 Shares of Telus International [Cda] have risen A credit assumption of 35bp was based on CANADA 38% since Telus took the unit public in the US in a straight bond issue maturing in May 2024 early February. The IPO raised US$1.06bn, of trading at 34bp, another due June 2025 DIALOGUE PRICES TSX IPO AT THE TOP OF which the parent collected US$490m. trading at 36bp and a 2031 trading at 39bp, THE RANGE with no pushback. Borrow was fairly liquid and assumed at 40bp. The company is rated Telehealth start-up DIALOGUE HEALTH A1 by Moody’s and A+ by S&P. TECHNOLOGIES attracted strong demand for its )MPLIEDûVOLûONûTHEûRANGEûWASûnû C$100m (US$79.5m) TSX IPO. STRUCTURED EQUITY versus historic vol over 100 days of 18.5% After drawing 10-times oversubscription, and 27% over 250 days. Dialogue on Tuesday priced the sale of There was a covered message around 8.33m shares or 13% of the company at BELGIUM 9:30am in London, and after 11am investors # ûTHEûTOPûOFûTHEû#nûRANGEû4HEû were informed that the deal was expected to lNALûTERMSûATTRIBUTEûTHEûlVE YEAR OLDû AMS LAUNCHES CONVERSION INCENTIVE come at best ends for investors and be issued company a market cap of about C$780m. FOR UP TO €100m OF CBS at 101.25% with a 35% premium. The IPO was all-primary though several On pricing, that represented a minus 0.25% insiders, including major shareholder Diagram Austrian sensor maker AMS is repurchasing 94-ûANDûIMPLIEDûVOLûOFûûWITHûAûBONDûmOORû 6ENTURESûAû#ANADIANû6#ûlRM ûMAYûSELLûAû INûTHEûMARKETûUPûTOûõMûOFûITSûTHREEû of 99.9%. The conversion price was set at combined 1.25m shares into the greenshoe. convertible bonds to reduce its liabilities õûFROMûAûREFERENCEûPRICEûOFûõ National Bank Financial, RBC Capital Markets, and improve its capital structure. The banker said that there was good Scotiabank and TD Securities were joint The CBs being repurchased are the 0.875% traction for the deal but price sensitivity was bookrunners. 2022 CBs, of which there is US$320.4m great away from the cheap end of the range. “The quality of the book was better than outstanding; the zero-coupon 2025s, of He said that the level of equity-linked issuance we have seen on a number of the [Canadian WHICHûõMûISûOUTSTANDINGûANDûTHEû in the US, with several trades printed on IPOs] that have come to market lately,” one 2.125% 2027 CBs issued in November that Monday, meant that those that also play in the Canadian banker said. HAVEûTHEûFULLûõMûOUTSTANDING 53ûMARKETûHADûSIGNIlCANTLYûMOREûOPTIONSûANDû Shares of Dialogue, which grew revenue The repurchases will begin from April 8 could pick and choose their investments. 187% to C$36m last year and as of January and could run until December 30 at the The bonds were trading around the offer had C$61m of recurring revenue, are latest. The maximum daily repurchase price in the late afternoon. GBL shares expected to debut on the TSX on Wednesday volume will be US$2m for the 2022 CBs, and CLOSEDûATûõ ûDOWNûJUSTûûONûTHEûDAY March 31. UPûTOûõMûFORûTHEûûANDûû#"S BNP Paribas, Citigroup and Goldman Sachs On Monday, the 2022 CB issue was at were joint bookrunners. TELUS RAISES C$1.3bn FOR FIBRE, 95.915, the 2025 CBs at 80.956 and the 2027 5G ROLLOUT CBs at 101.176. HSBC is managing the conversion SWEDEN Less than two months after collecting incentive offer. US$490m from the NYSE IPO of its call SCANDIC RAISES SKR1.6bn FROM 2024 CB centre unit, Canadian phone company TELUS GBL CAPITALISES ON STOCK directly tapped investors for C$1.3bn PERFORMANCE WITH €500m CB SCANDIC HOTELS raised SKr1.6bn (US$185m) on (US$1.03bn) of equity to strengthen its Friday from convertible bonds with a balance sheet and help fund capex. Belgian holding company GROUPE BRUXELLES maturity of October 2024. On Thursday, a syndicate led by RBC LAMBERTûRAISEDûõMûONû4UESDAYûFROMûZERO The zero-coupon paper was launched at Capital Markets, CIBC Capital Markets, BMO coupon convertible bonds due 2026 in the nûOFûPRINCIPALûFORûAûn Capital Markets, Scotiabank and TD Securities SERIALûISSUERSûlRSTû#"ûOFFERINGûSINCEûû 3.25% yield-to-maturity. The trade priced the sale of 51.3m Telus shares at The new paper, with proceeds to be used for LAUNCHEDûWITHûAûnûPREMIUMûOVERû C$25.35 apiece, a 3.4% discount to last sale. general corporate purposes, has printed bonds the lower of Thursday’s SKr36.80 close and 4HEûBOUGHTûDEALûlNANCINGûCOMESûDURINGû exchangeable into Germany food processing the VWAP from launch to pricing on an eventful time in the Canadian telco technology business GEA Group and French- Friday. market as rival Rogers Communications Swiss building materials company Pricing came at the best terms for seeks approval for its US$16bn merger with LafargeHolcim since its previous CB offering, investors of 89.41% for a 3.25% yield-to- Shaw Communications announced earlier ANDûISSUEDûAûõBNû%"ûINTOû'$&û3UEZûINû maturity with a 22% premium over the this month, a move that is facing regulatory A banker involved said that GBL opted for reference price of SKr35.5427 for a and political hurdles. its own shares as the underlying as they have conversion price of SKr43.3621. Telus said the offering proceeds would performed well recently, rising more than 31% AMF Pensionsforsakring, Stena Sessan allow it to capitalise on a “unique strategic in the past year and more than 6% in the last and Formica Capital, representing 41% of opportunity to accelerate both the expansion three weeks. The CB issue represents share capital, committed at launch to OFûITSûlBREûINFRASTRUCTUREûINû!LBERTA û"RITISHû approximately 4.2m existing shares. subscribe for SKr500m. Columbia and Eastern Quebec, and the roll- As the name is well known in equity-linked Proceeds from the CB alongside new debt out of its national 5G network. circles, there was no pre-sounding in advance. facilities will cover Scandic’s liquidity needs !BOUTû#nMûOFûTHEûINVESTMENTSû 4HEûlVE YEARû#"ûWASûOFFEREDûATûn until market conditions have normalised, are earmarked for 2021, over and above a 103.75 for a negative 0.73% to negative 0.25% expected in autumn this year. previous target of C$2.75bn. The balance of yield-to-maturity. The premium guidance Scandic Hotels shares closed on Friday at #MnBNûWILLûBEûBROUGHTûFORWARDûINTOû WASûnûOVERûTHEû67!0ûFROMûLAUNCHûTOû SKr34.60. 2022, in addition to planned capex of pricing. The bonds can be called from three DNB, Svenska Handelsbanken and Nordea C$2.75bn for next year. years, subject to a 130% trigger. were joint bookrunners.

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EQUITY-LINKED DEALS WEEK ENDING: 26/3/2021

Issuer Country Date Amount Greenshoe Tenor Coupon/YTM % Premium (%) Bookrunner(s) GBL Belgium 23/03/2021 €500m — 5y 0 35 BNP Paribas, Citigroup, Goldman Sachs Scandic Hotels Sweden 26/03/2021 SKr1.6bn 3y 0 3.25 DNB, Handelsbanken, Nordea Dufry Switzerland 23/03/2021 SFr500m — 5y 0.75 45 Credit Suisse, UBS Accolade US 24/03/2021 US$250m US$37.5m 5y 0.5 32.5 Goldman Sachs, Morgan Stanley, BofA Groupon US 22/03/2021 US$200m US$30m 5y 1.13 30 Morgan Stanley, JP Morgan JetBlue Airways US 22/03/2021 US$650m US$100m 5y 0.5 35 Goldman Sachs, Morgan Stanley, Barclays, BNP Paribas Liberty TripAdvisor US 22/03/2021 US$300m US$30m 30y 0.5 30 BofA, JP Morgan, Morgan Stanley Macom Tech Solutions US 22/03/2021 US$400m US$60m 5y 0.25 40 Barclays MP Materials US 23/03/2021 US$600m US$90m 5y 0.25 26.50 Deutsche Bank, BofA, Morgan Stanley Redﬁn US 22/03/2021 US$500m US$75m 6y 0.5 35 Goldman Sachs, BofA, RBC CM TripAdvisor US 22/03/2021 US$300m US$45m 5y 0.25 37.5 BofA, JP Morgan, Morgan Stanley ViacomCBS US 23/03/2021 US$1,000m US$150m 3y 5.75 17.5 Morgan Stanley, JP Morgan, Goldman Sachs, Mizuho Securities, Siebert Williams Shank

Pricing came at the mids for a coupon of addition to the US$605m it raised on a SWITZERLAND 0.75% and a 45% premium over the SFr60 follow-on stock overnight in December. delta placing price, representing an initial Goldman Sachs, Morgan Stanley and Barclays DUFRY RAISES SFr500m ALONGSIDE conversion price of SFr87. The delta placing marketed the CB for one day on Monday at a 2023 BUYBACK totalled approximately 2.3m shares, and COUPONûANDûCONVERSIONûPREMIUMûOFûn pricing at SFr60 was a 6.25% discount to the ûANDûnû4HEYûSETûPRICINGûTHATû Swiss travel retailer DUFRY picked up SFr64 close. The shares have doubled in the evening at 0.5%, up 35%, or the mid-point of SFr500m (US$534m) on Tuesday evening past year and were up 21.5% in the year to- talk and a far lower elevation than where CB FROMûlVE YEARûCONVERTIBLEûBONDSûTHATûWEREû date as of the Tuesday close. issued just a month ago. priced at the mids despite a wall of US Dufry shares were last at SFr87 in January There is a call from April 2024 at a 130% equity-linked deals providing a distraction. 2020. trigger. One account involved in a wall-crossing that Implied vol on pricing was 28.4% versus JetBlue shares fell 8.4% to US$19.23 while began on Monday told bankers that “it was GUIDANCEûOFûnûANDûVERSUSûHISTORICû the CB was being marketed, although that is raining deals” and that Dufry was the 10th deal OVERûûDAYSûOFûû/VERûlVEûYEARS ûTHEû still well above the US$14.40 price it sold he had looked at last week and he was expecting median is approximately 26.5%. The bond 36.5m shares at in December. more issuance globally, but particularly from mOORûONûPRICINGûWASû “We have seen pricing on new issues the US. Unhelpfully, a number of US deals have A book of around 75 lines was heavily come in quite a bit,” said one equity-linked traded lower in the aftermarket. concentrated, with the top 20 orders taking banker involved in the JetBlue CB. “A lot of Dufry launched the offering of SFr500m approximately 65% of the deal, with a skew the deals last week did not trade well in the NEWûPAPERûTHATûCAMEûWITHûAûCOUPONûOFûn TOWARDSûHEDGEûFUNDSû!ûSIGNIlCANTûNUMBERûOFû aftermarket. There is quite a bit of crossover ûANDûPREMIUMûOFûnûOVERûTHEû holders of the 2023 paper came into the new CB. between investors that participate in SPACs reference price to be set in a delta placing of Dufry is offering SFr16,389.89 per and converts. SPACs have not traded up to SFr250m. The bonds, issued to raise SFr200,000 principal to encourage particularly well.” funds for general corporate purposes, can be bondholders to convert and on Tuesday *ET"LUE ûWHICHûlNISHEDûûWITHû called from three years subject to a 130% night holders of SFr200m of the bonds said US$3.1bn of total liquidity, plans to spend trigger. The new paper represents just under they would do so. US$1bn this year on 15 new planes, 10% of Dufry’s market cap. The new bonds were trading around 102% INCLUDINGûSEVENûFUEL EFlCIENTû!IRBUSû!Sû Launched alongside the new paper but on Wednesday and the shares closed just and three Airbus A321LRs, a long-range not closing until April 6 was an incentivised below the delta pricing at SFr59.54. plane that will allow it to launch a service to conversion for Dufry’s SFr350m of 1% CBs Credit Suisse and UBS were joint bookrunners, London later this year. due 2023. with Deutsche Bank, ING, Mediobanca, Santander JetBlue was the largest of six CBs on Dufry is rated B1 (negative outlook) by and UniCredit as co-bookrunners. Monday that raised a combined US$2.35bn, Moody’s and B+ (negative) by S&P and has a all at or below 40% conversion premiums. straight bond issue with a tenor of October In the most aggressive deal on Monday, 2024 trading at 340bp and a February 2027 UNITED STATES online real estate broker and serial issuer trading at 312bp. That provided a credit REDFIN took in US$500m from the sale of a assumption of 350bp, with no pushback, JETBLUE FUNDS EXPANSION WITH six-year CB the priced at 0.5% coupon and and borrow was liquid and available at 40bp. US$650m CB 35% conversion premium, the investor- The trade was covered on indications at FRIENDLYûENDSûOFûTHEûnûANDûnû launch and was formally covered on both Like all airlines, JETBLUE AIRWAYS is coming terms marketed. the CB and delta placing after 6pm in out the other side of industry turbulence In another economic re-opening trade, London. At around 8:30pm in London, associated with Covid-19. online travel booking website TRIPADVISOR investors were advised that orders not at Last week it raised US$650m from the sale SECUREDû53MûFROMûTHEûSALEûOFûAûlVE mids or better on the CB and delta pricing OFûAûlVE YEARûCONVERTIBLEûBONDûTOûLIGHTENûTHEû year CB that priced on Monday at a 0.25% below SFr60 risked missing out. load on senior borrowing capacity. This is in coupon and 37.5% conversion premium, also

International Financing Review March 27 2021 103

9 IFR Equities and SE 2376 p85-105.indd 103 26/03/2021 21:32:02 TOWARDSûTHEûINVESTOR FRIENDLYûENDSûOFûn Groupon is using proceeds to pre-fund the Joint bookrunners Bank of America, ûANDûnûTERMSûMARKETED 2023 maturity of its 3.25% CB it issued in Deutsche Bank, Morgan Stanley and Cowen The Tripadvisor CB was marketed in 2014 as well as purchase a capped call. MARKETEDûTHEûlVE YEARûCONVERTIBLEûATûAûn tandem with a separate US$300m 30-year/ In what was front-loaded week of ûCOUPONûANDûnûCONVERSIONû PUT lVEûEXCHANGEABLEûBYû,IBERTYû-EDIAû issuance, chipmaker MACOM TECHNOLOGY premium. into LIBERTY TRIPADVISOR, which holds a 23% SOLUTIONS took in US$400m from the sale of a MP Materials elected to upsize the CB economic interest in Tripadvisor and lVE YEARû#"û-ONDAYûBarclays, as sole from US$500m to US$600m even though provides administrative services. That bookrunner, placed the new CB at a 0.25% pricing was set at a 0.25% coupon and 26.5% deal priced at a 0.5% coupon and 30% coupon and 40% conversion premium, conversion premium, towards the investor- conversion premium, the investor- towards the investor-friendly ends of the FRIENDLYûENDSûOFûTHEûnûTERMSû friendly ends of talk. nûANDûnûTERMSûMARKETED marketed. Tripadvisor’s shares tumbled 10.5% to Litinsky and other shareholders opted to US$53.68 while the CB was being marketed MP MATERIALS UNEARTHS US$600m downsize the amount of stock being sold on Monday, while those of Liberty FROM GREEN CB from 8m to 6m shares at US$35.00, a 5.2% Tripadvisor fell 7% to US$6.95. discount to last sale and providing the Bank of America, JP Morgan and Morgan Rare earth minerals miner MP MATERIALS on reference price on the CB. Stanley were joint bookrunners on both Tuesday launched a US$600m convertible The banks touted the CB as a green CB, Tripadvisor and Liberty Tripadvisor. bond and concurrent all-secondary sale of THOUGHûTHEREûHASûBEENûLIMITEDûBENElTûFROMû )NûWHATûWASûITSûlRSTûPUBLICûEQUITYû 6m shares, the latter mainly to allow CEO other similar green transactions. raise in more than seven years, daily James Henry Litinsky to crystallise gains As a reference, they guided investors discount platform GROUPON took in since its SPAC union with Fortress Value towards a credit spread of L+450bp and 45 US$200m on Monday from the sale of a Acquisition in November. vol in modelling the security. lVE YEARû#" The secondary sale, while optically poor, Litinsky, a former member of Fortress’s Morgan Stanley and JP Morgan placed the improves the stock borrow by increasing the Drawbridge Special Opportunities Fund who Groupon CB Monday night at 1.125% coupon STOCKSûFREE mOAT went on to form the JHL Capital Group that and 30% conversion premium, after Nevertheless, MP shares were hammered purchased Molycorp out of bankruptcy in MARKETINGûFORûONEûDAYûATûnûANDû WHILEûTHEûlNANCINGûWASûMARKETEDûONû 2017, sold about 4.2m shares to reduce his n Tuesday, falling 18.3% to US$36.90. stake to just over 35%. Fortress sold just 19,131 shares, or just 1.3% of its stake, as GLOBAL CONVERTIBLE OFFERINGS part of pro-rata sell-down across a broader GLOBAL CONVERTIBLE OFFERINGS – US BOOKRUNNERS: 1/1/2021 TO DATE group of sellers. BOOKRUNNERS: 1/1/2021 TO DATE MP Materials’ facility in Mountain Pass, Managing No of Total Share Managing No of Total Share bank or group issues US$(m) (%) California is one of only two mining bank or group issues US$(m) (%) complexes outside of China currently 1 Goldman Sachs 34 7,477.88 12.1 1 Bank of America 34 5,301.00 14.8 producing rare earth minerals, the other 2 Morgan Stanley 31 6,677.14 10.8 2 Goldman Sachs 25 4,767.33 13.3 being the Mount Weld complex in 3 Bank of America 37 6,533.49 10.6 3 JP Morgan 28 4,479.03 12.5 Australia operated by ASX-listed Lynas 4 JP Morgan 33 5,319.78 8.6 4 Morgan Stanley 22 4,463.23 12.5 Rare Earths. 5 Citigroup 22 4,782.64 7.8 5 Barclays 15 2,672.28 7.5 The SPAC merger, which infused 6 Barclays 17 3,784.41 6.1 6 Citigroup 14 2,300.95 6.4 US$545m of capital from the SPAC IPO and 7 Guotai Junan Secs 5 3,703.74 6.0 7 Credit Suisse 12 1,696.49 4.7 PIPE, fully funds the US$170m of a Phase II 8 Credit Suisse 17 2,905.24 4.7 8 Jefferies 6 1,678.58 4.7 expansion scheduled to be completed this 9 Jefferies 8 1,844.12 3.0 9 RBC 9 1,171.60 3.3 year that will allow MP to process rare 10 BNP Paribas 12 1,649.87 2.7 10 Wells Fargo 9 1,122.24 3.1 Total 125 61,595.38 Total 61 35,744.92 metals onsite, boosting margins by avoiding the need to ship product to China for Including exchangeables and domestic offerings. Source: Refinitiv SDC code: C9a Source: Refinitiv SDC code: C9 processing.

ALL INTERNATIONAL ASIAN CONVERTIBLES GLOBAL CONVERTIBLE OFFERINGS – EMEA ALL INTERNATIONAL ASIAN CONVERTIBLES (EXCLUDING JAPAN) 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 7 1,991.95 22.7 1 Morgan Stanley 5 1,000.74 15.9 1 UBS 4 893.92 17.6 2 Morgan Stanley 4 1,213.18 13.8 2 UBS 4 893.92 14.2 2 Credit Suisse 3 821.16 16.2 3 BNP Paribas 6 804.05 9.2 3 Credit Suisse 3 821.16 13.1 3 Goldman Sachs 2 718.60 14.1 4 Citigroup 4 504.29 5.8 4 Goldman Sachs 2 718.60 11.5 4 Morgan Stanley 3 688.52 13.6 5 HSBC 3 412.54 4.7 5 Citigroup 2 487.85 7.8 5 Citigroup 2 487.85 9.6 6 Credit Suisse 2 387.60 4.4 6 CICC 2 419.25 6.7 6 CICC 2 419.25 8.3 7 Bank of America 2 342.94 3.9 7 JP Morgan 1 393.60 6.3 7 JP Morgan 1 393.60 7.7 8 Mediobanca 2 307.32 3.5 8 Daiwa Securities 2 347.62 5.5 8 HSBC 1 217.37 4.3 9 UniCredit 2 307.32 3.5 9 Sumitomo Mitsui 1 297.54 4.7 9 Bank of China 1 217.37 4.3 10 SG 2 282.08 3.2 10 Nomura 1 237.12 3.8 10 BNP Paribas 1 217.37 4.3 Total 18 8,760.50 Total 15 6,275.02 Total 10 5,080.51

Including exchangeables. Including exchangeables. Including exchangeables. Source: Refinitiv SDC code: C09d Source: Refinitiv SDC code: M10 Source: Refinitiv SDC code: M11

104 International Financing Review March 27 2021

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10 IFR Masthead 2376 p106 - 107.indd 106 26/03/2021 20:16:58 INTERNATIONAL FINANCING REVIEW CONTACTS

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International Financing Review March 27 2021 107

10 IFR Masthead 2376 p106 - 107.indd 107 26/03/2021 20:16:59 INTERNATIONAL FINANCING REVIEW INDEX

2degrees 89 Deliveroo 2 Jeneration Acquisition 87 Royal Caribbean 37 Achilles Therapeutics 95 Den Networks 88 Jenoptik 73 Saecure 20 41 ACQ Bure 85, 92 Design Therapeutics 99 JetBlue Airways 103 Saipem 38 ActiveOps 94 Deutsche Bank 19 JP Morgan 11, 15 Satudora Holdings 71 ACV Auctions 97 Deutsche Wohnen 30 Kaisa Group Holdings 87 Saudi Aramco 74 Adaro Energy 69 Dialogue Health 102 Karooooo 90 Scandic Hotels 102 Aditya Birla Sun Life Asset 88 Technologies Kenya 65 Schleswig-Holstein 25 Didi Chuxing 4, 87 Management Company Khosla Ventures 100 Semrush 98 AdThrive 80 Digital 9 Infrastructure 94 Acquisition III Seplat Petroleum 59 Advanz Pharma 40, 83 DigitalOcean 96 Korea National Oil 65 Service Logic 78 Aegon Hypotheken 41 Disruptive Acquisition I 100 Corporation Kyoritsu Maintenance 71 Shuwa System 71 Akbank 6 Diversey 96 Lao People’s Democratic 64 Siemens Healthineers 91 Albacore Capital 44 Doha Bank 67 Republic SIG 75 Alibaba Group Holding 19 Douglas 39, 81 Lendlease Group 32 Sitowise 85, 91 Almaviva 83 Dragoneer Growth 3 LGC 82 Opportunities III Societe Generale 22 AMAG Leasing 42 Li Auto 86 Dufry 103 Solaris Midstream 36 AMS 102 Liberty Financial 46 E.ON 29 Solis Mammography 79 Angelo Gordon 44 Liberty Tripadvisor 104 EcoOnline 92 Southern California Edison 28 Anjuke 87 Linklogis 86 Edgewise Therapeutics 99 Southern Water Services 31 Appier Group 89 London Stock Exchange Group 8 Eesti Energia 73 Southwest Gas 77 Arabian Centres 67 Macom Technology Solutions 104 Ekopak 90 Spire Missouri 76 Aramark Services 78 Magnite 78 Elm Park CLO 44 Sri Rejeki Isman 69 Artisan Acquisition 87 Mailbox REIT 94 ESR Cayman 71 Stedin 31 Arval Service Lease 36, 73 Manulife US REIT 72 Ethypharm 9 Stellantis 28 Arval 73 Masan Group 72 European FinTech IPO 92 Steris 76 Astra Sedaya Finance 69 Mercedes-Benz Finance 47 Company 1 Storebrand Livsforsikring 35 Athene Global Funding 36 European Union 24 Merck 81 Sunseap Group 89 Autokiniton 81 First Brands 80 Mercury Financial 46 Sushiro Global Holdings 71 BaFin 17 ForU Trucking 86 Corporation Metrics Credit Partners 20 Suzano 67 Baidu 5, 19, 87 Fraport 30 MGM China Holdings 61 SVB Financial 99 Bairong 87 Freee 88 Mining Industry Indonesia 69 Synnex 76 Banco de Credito del Peru 68 Fresenius 28 Mizrahi Tefahot Bank 66 Tasmanian Public Finance 26 Banco Santander 33 Friedrich Vorwerk 85, 91 Corp Monde Nissin 89 Bank Julius Baer & Co 36 Frontier Airlines 98 TB SA Acquisition 100 Morgan Stanley 15 Bank Negara Indonesia 60 Froy 93 Tecta America 79 Motorola Solutions 77 Bank of America 15 Fufeng Group 70 Teine Energy 36 MP Materials 104 Bank of India 20 Full Truck Alliance 4, 86 Telus 102 NatWest Group 32 Bank of Maharashtra 20 Gateway Strategic Acquisition 88 Tencent Holdings 70 Naver 64 Belfius Bank 19 Gerflor 83 Tesla 44, 45 NetEase 19 Belron 10 Ghana 6 The Renewables 95 New Fortress Energy 36 Infrastructure Group Bilibili 87 Glacier Assets 47 Nidec 29 THOR Industries 80 Blackstone Ireland 44 Goldman Sachs 10, 15 Nightingale Health 91 ThredUp 99 Blackstone Real Estate 40 Gores Guggenheim 100 Nio 86 Tikehau Capital 35 Boeing 76 Greenko Dutch BV 61 Nomura Holdings 34 Tricor Holdings 83 Boubyan Bank 66 Greenko Energy Holdings 61 Nordic Investment Bank 25 Tripadvisor 103 BowX Acquisition 3 Greenyard 72 Nordstrom 27 Tristar Transport 94 BPER Banca 34 Groupe Bruxelles Lambert 102 Norse Atlantic 93 Trustpilot 85 Brex 46 Groupe Gorge 73 Northern Territory Treasury 26 Tryg 91 British Airways 75 Groupon 104 Corp Tunas Baru Lampung 61 Canadian Pacific Railway 77 Guangzhou R&F Properties 70 Nova Resources 78 Turk Eximbank 6 Canary Wharf Group Invest 30 GV Gold 93 NTPC 71 Turkey Wealth Fund 75 Capgemini 73 Hafnia 71 Oasis Petroleum 36 Tuya 5 CAR Inc 60 Hapag-Lloyd 21, 38 Olink 93 UBS 11, 14 ,22 Carmila 30 Hathway Cable & Datacom 88 OMERS 23 UCB 31 Carvana 45 Hellobike 4 One MobiKwik System 88 UK DMO 25 Casino 82 Highwoods Properties 77 (MobiKwik) Operadora de Servicios Mega 68 Unedic 24 CC Land Holdings 70 Hony Capital Acquisition 87 Oracle 26 Unit4 81 Chandra Sakti Utama Leasing 69 Hyatt Hotels 77 Organon 81 US Federal Reserve 15 Change 89 Hyland Software 80 Orpea 31 Vantage Towers 29 China SCE Group Holdings 70 IAG 38 Pegasus Europe 92 Varroc Engineering 88 Chrysalis Investment 95 Ifis NPL Investing 41 Pendragon 75 Verbund 8 Citigroup 11, 17 Ikena Oncology 99 88 Veritas 80 Club Brugge 85, 90 20 Pertamina International Indian Overseas Bank Shipping 30 94 VGP Comet Group Indian Railway Finance Corp 60 Perusahaan Listrik Negara 69 ViacomCBS 97 Community Hypotheken 41 69 79 Indomobil Finance Indonesia PetIQ 72 97 Vingroup Compass Indomobil Multi Jasa 69 Philips 82 Virgin Group Acquisition II 100 Computershare 70 92 86 Indus Holding Piedmont Lithium 15 100 Wells Fargo Corazon Capital V838 ING 33 Pilgrim’s Pride 38 Monoceros WestConnex 32 Ingram Micro 78 Plaskolite 78 Core Income Global REIT 90 Westpac Banking Corp 14 Instant Brands 80 Progress Residential 44 Cornerstone OnDemand 80 WeWork 3 Integrated Wind Solutions 85, 92 QuantumScape 98 Coursera 98 Wolters Kluwer 29 Interior Logic Group 37, 80 88 Credit Suisse 10, 17 Rail Vikas Nigam 78 75 WR Grace 96 International Consolidated Ramsay Sante 82 Cricut Airlines Group WW International 78 Recipharm 82 CTP 85, 90 Investec Bank 75 Ximalaya 4 Redfin 103 CVC Credit Partners 44 Islamic Development Bank 67 XPeng 86 European CLO Management RedZed Lending Solutions 47 Islamic Republic of Pakistan 64 Zhihu 4 Czech Gas Networks Invest 65 Renault 38 J&J Ventures Gaming 79 Ziraat Bank 6 Daewoo Engineering & 72 Rentenbank 23 Construction Jackson Financial 34 Republic of the Philippines 64 DBS Trustee 72 JD.com 19 Rhineland-Palatinate 25 Decarbonization Plus 100 Jefferies 11 Acquisition III Rocket Internet Growth 97 Jefferies Financial Group 13 Defence Bank 46 Opportunities

108 International Financing Review March 27 2021

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