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The Octopus
Facing one of the largest funding programmes of any European bank, Banco Santander needed to show more than a touch of creativity to keep on track. For managing a complex global issuance programme across a web of different entities – with a €7.1bn rights issue thrown in for good measure – Santander is IFR’s Issuer and Financial Issuer of the Year.
Strong and stable
Difficult negotiations to leave the EU, a snap general election that led to a minority government, continuing volatility in sterling and the first interest rate rise in a decade all failed to knock the UK issuance bodies off their feet. Debt issues were remarkably unaffected, while the government finally disposed of its last shares in Lloyds Banking Group. The United Kingdom is IFR’s SSAR Issuer of the Year.
Debt injection
Becton Dickinson caught most market participants by surprise as it announced its multi-billion acquisition of CR Bard. For carefully managing investor expectations in the face of a downgrade to junk while successfully tapping the loan, bond and equity markets, Becton Dickinson is IFR’s Corporate Issuer of the Year.
Globetrotter
UniCredit’s rapid transformation under chief executive Jean Pierre Mustier was a remarkable feat. He convinced stakeholders that his plan was right and led from the front in selling it worldwide in a rapid sequence of transactions. UniCredit’s recapitalisation is IFR’s Financing Package of the Year.
Bankers have long complained that the rules that arose from the ashes of the financial crisis are ill-prepared at best and punitive at worst – and ultimately driven by a spirit of banker-bashing. The election of a US president with a similar view looked set to unleash a wave of creative regulatory destruction. But the early signs indicate that authorities will take a more constructive approach.
Green bonds have quickly become an important piece of sustainability financing. Yet while Green loans have emerged more slowly, they have plenty to offer both borrowers and lenders – and provide options not available in the bond market. Environmentally responsible lending may finally be ready to take off in earnest.
A reformed and reshaped global banking industry is investing for growth again. But with decent profits still elusive for some, and a host of headwinds to battle against, it’s too early to declare that happy days are here again.
Growth is (relatively) strong, markets are up as a result and capital markets activity is buoyant. The return of Tepco to the bond markets and the funding dynamism of Softbank were among factors that gave bankers in Japan and those who focus on the market from abroad a certain swagger.
Banks are in a fight for talent with technology, consulting and other firms, but are they ignoring too many students from poorer backgrounds? Some bankers think so, and want the net widened so they can add true diversity.
Singapore and Hong Kong look poised to allow shares with weighted voting rights in a bid to attract more listings from the new economy. But will it change anything?
Not so long ago it looked like the classic standalone investment bank would become a thing of the past. But with all the regulations put in place in the wake of the financial crisis, could the standalone model be poised for a comeback?
Grand plans to transform Saudi Arabia’s oil-focused economy have caught the attention of every major bank over the past year. But many could be in for a long wait as they seek returns on the resources being lavished on the country.
The weakness in the oil market, relative to the highs enjoyed in past years, has provided a supportive backdrop for Islamic bonds, forcing oil-rich Middle Eastern issuers to fund in the market. The market’s outlook will be determined in large part by oil’s future path, though investors will also be looking for assurances that Middle Eastern issuers honour their legal obligations.