A sense of euphoria was to be expected in the year that followed the 2008/2009, when banks and borrowers had to work hard to keep their heads above water. And in the 12 months from May 2009 to April 2010, the scope of this report, the debt markets have started to resemble something like their old selves: loans first became widely available, and then, increasingly as the year went on, even became competitively priced. Bonds had an even swifter return to prominence. But it has not all been good news. Towards the end of the period, the first...Read more
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The escalation of the sovereign debt crisis has led some of Europe’s political leaders to talk of an age of austerity. But for the continent’s corporate treasurers, there is a different concern: as time elapses their debt profiles are steadily maturing. For a solution, many are turning to liability management. David Rothnie reports.
The lack of depth of the convertible bond markets has been shown by the impact of the sovereign crisis in the eurozone. The impact of widening spreads and falling stocks has been hardest felt in Europe, which has gradually closed to new issuance. Even the US market is still facing multi-year volume lows and the outlook is disappointing. Owen Wild reports.
The financial crisis revealed many faults to the securitisation market and there is no question that these needed to be fixed. But it seems likely that the sheer number of initiatives, some of which conflict, will stifle and possibly snuff out the anaemic recovery. William Thornhill reports.
A deteriorating market backdrop has not prevented certain EEMEA sovereigns from squeezing the best possible terms out of banks, which are desperate to get on deals, despite obvious financial risks to both sides. Ukraine and Romania continue to mandate on a lowest fees basis, a strategy that more sophisticated issuers rejected years ago. John Weavers reports.
In the face of a bond and equity wobbles, the loan market has stayed steady. This reflects lenders’ focus on relationship rather than yield only. But with pricing stabilising after more than six months of falls, bankers warn that loans cannot remain invulnerable to longer term capital market ructions. David Cox reports.
The Kingdom of Spain has suffered along with a number of other European sovereigns from the headwinds created by Greece’s recourse to an EU/IMF bail-out package. By announcing its own austerity measures to address its fiscal position, Spain has attempted to ensure its ability to access the market during a period of unprecedented turbulence. Michael Winfield reports.
Portugal successfully raised US$10.16bn in the last financial year, with investors lapping up the sovereign credit. Even after ratings agencies downgraded the country’s long term debt, Portugal is likely to still be able to meet its borrowing target this year. Han-Nee Tay reports.
KfW has a reputation as a solid borrower, always ready to exploit market opportunities as they arise, in a range of currencies, underpinned by its core holdings in three majors. A firm believer in its strategy, which has proven itself highly successful over the years, it has navigated significant political and economic upheaval – and made it look easy. Michael Winfield reports.
The World Bank is a steady, reliable issuer, present in a range of currencies. But this year it has generated more headlines than usual, as the financial crisis has wrought havoc on global economies. It has also been pioneering in green issuance, demonstrating its unfaltering willingness to innovate. Michael Winfield reports.
Kraft Foods proved to be as skilful a takeover artist as it was a borrower in its dogged pursuit of Cadbury in the last year. It assembled an enviable bank group to back a hostile acquisition, syndicated the loan when banks were as stingy as ever and successfully priced a jumbo take-out offering of bonds into a tumultuous market. Michelle Sierra Laffitte and Timothy Sifert report.
Mexican cement giant Cemex made one ill-timed decision and in a second saw itself on the brink. However, instead of losing its cool, the company renegotiated US$15bn in loans and quickly tapped multiple markets to reduce its leverage, ensuring the underlying business was not adversely affected. Christopher Langner reports.
Working to transform itself from a regional mobile player into a global telecom heavyweight, America Movil went on a funding spree between 2009-2010 that made it one of the most active borrowers out of Latin America. During that time it raised some US$6bn plus, creating new benchmarks along its dollar curve, diversifying its funding base and positioning its self as a truly global credit. Paul Kilby reports.
The NBC Universal joint venture with General Electric and Comcast has been one of the more important corporate borrowers in the last six months. It was integral in helping to reignite the investment grade loan market in February 2010 with its US$9.8bn credit facility, and in April, it priced a US$4bn bond offering just as sovereign debt fears were reaching a peak. That credit-market savvy has enabled them to put together one of the more daring media ventures in years. Timothy Sifert reports.
With more than €11bn of debt, much of it rapidly approaching maturity, and in a sector that is frighteningly exposed to the economic downturn, things looked pretty desperate at first glance for HeidelbergCement. But the group’s global presence and strong relationships saw it through in its hour of need, allowing it to complete an impressive, self arranged refinancing. Ouida Taaffe reports.
It has been a busy year for Lloyds Banking Group, now majority-owned by the UK state, against a backdrop of uncertain and sometimes volatile markets. It has borrowed across currencies and in various asset classes, pioneering relatively untested products one month, before tapping tried and tested markets the next. It has also acted decisively to address investor concerns about some of its problem structured finance vehicles. Helen Wray and Philip Wright report.
Dexia has had a bumper year of borrowing, issuing more than €50bn of debt in the 12 month period. This might seem inimical to the group’s stated aim of achieving active balance sheet deleveraging, but Dexia’s strategy centres not just on how much it issues, but on ensuring it issues the right kind of new debt. Matthew Attwood reports.
Banco Espirito Santo was already a familiar name for equity-linked investors when it approached the market in early 2009, as were the two underlyings for the exchangeables. What marked BES out was its impeccable timing – just weeks after the second issue, the market had closed up. Robert Venes and Owen Wild report.
The IFR Top 250 Borrowers ranking includes all Thomson Reuters league table-eligible borrowings in syndicated loans, international bonds, convertible bonds and securitisations for the period May 1 2009 to April 30 2010. Wherever it is logical to do so, the rankings reflect activity at the level of the borrowing entity itself, rather than the parent group. For this reason, majority-owned subsidiaries that borrow in their own name are given separate entries in the tables. Borrowing entities that are merely special purpose vehicles or...