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Jack of all trades:
Bank of America’s equity-linked services proved in high demand because of innovative solutions offered to clients across industries, making it IFR’s Americas Structured Equity House of the Year.
Getting Credit Broadcom, the acquisitive semiconductor giant, turned heads with its decision in September to tap the equity-linked markets with a US$3.7bn mandatory convertible preferred offering. The investment-grade company had pledged to fund the US$10.7bn all-cash purchase of Symantec’s enterprise business with new debt when it was agreed in August. The acquisition was part of an ongoing plan to grow the common stock dividend by double digits through acquisitions and buying back stock, so selling stock – even at a premium – seemed...
Bouncing back
BNP Paribas recovered its leadership in equity-linked as the European market bounced back in 2019. It was on the biggest deal, took a leadership role and was once again the most active bank in the region, making it IFR’s EMEA Structured Equity House of the Year.
Perfect delivery Dutch food delivery service Takeaway.com in January wanted to refinance €680m of freshly-inked 12-month bridge loans related to the €930m cash and stock acquisition of Delivery Hero’s German business. The feedback from existing shareholders and potential investors was clear that the equity fundraising should be completed in one step. The key was finding a trade representing about 30% of market capitalisation that could be completed rapidly and was easy to digest. “In this market, if there is a window, you take it,” a banker...
Calling the shots
In a bumper year for equity-linked issuance in Asia, one bank stood out for its ability to deliver big deals for key clients. For its focus on repeat issuance and its capacity for innovation, Goldman Sachs is IFR’s Asia-Pacific Structured Equity House of the Year.
Proof of concept A HK$4bn (US$510m) green convertible bond from Hong Kong’s Link REIT set a precedent for green financing in Asia’s equity-linked market. Link, which owns shopping centres, car parks and offices in Hong Kong and China, launched the five-year put-three CB on March 7, kicking off a run of equity-linked issuance from Asia’s REIT sector. Coming after Japanese timber company Sumitomo Forestry introduced the green GB concept with a ¥10bn (US$90m) print in September 2018, Link’s far larger offering is the first major sign that the...
Trade tensions between Beijing and Washington are threatening to spill over into capital markets, with some policymakers even calling for a ban on Chinese listings in the US. Just how far can it go?
As Japanese fund managers broaden their search for yield, international issuers are finding they no longer need to spend the time and money to prepare local language documentation. Old habits die hard, however, and lengthy marketing periods are still standard practice.
Primary bond markets have proved a testing ground for the transition from inter-bank offered rates to new alternative risk-free rates. But the abundance of issuance referenced to Sonia and SOFR should not obscure the unfortunate fact that most of the proceeds have immediately been swapped back to Libor by the borrowers.
Is the traditional green bond market threatened by the emergence of transition bonds, SDG bonds, general-purpose bonds with environmental targets and other debt classes intended to encompass wider environmental goals? Does it matter if new market segments are more effective at reducing the emission of greenhouse gases?
As another painful year for Europe’s banks draws to a close, the need for big bank consolidation has never been greater.
