Cbonds Global

2021-03-01 17:31:51 Upcoming issue

Issuer: Hamburg Commercial Bank (Baa2/BBB/Withdrawn)

Issue description: 5Y senior preferred bonds

Currency: EUR

Date: the bookrunners were mandated on Monday, March 1, the deal is expected to be launched this week

Volume: €500 mln

Bookrunners and Lead Managers: BNP Paribas, CaixaBank, Citi and Deutsche Bank Open / Comment

2021-03-01 17:29:50 EM issues of February 24 – March 1

Philippines
Asian Development Bank (ADB) (Aaa/AAA/AAA), 1.5% 4mar2031, USD | 2000 mln

Listing: Luxembourg S.E.
Bookrunner: JP Morgan, Nomura International, RBC Capital Markets, TD Securities
Depository: Clearstream Banking S.A., DTCC, Euroclear Bank

China
Guotai Junan Securities (Baa1/BBB+/-), 2% 3mar2026, USD | 400 mln

Listing: Hong Kong S.E.
Bookrunner: Agricultural Bank of China, Bank Of Shanghai, Bank of East Asia, CCB International, China Industrial Securities International Financial Group, China Minsheng Banking, Guotai Junan Securities, HSBC,ICBC,Industrial Bank, Mizuho Financial Group, OCBC,Orient Securities International Holdings, SMBC Nikko Capital, Shanghai Pudong Development Bank, Standard Chartered Bank
Depository: Clearstream Banking S.A., Euroclear Bank

Hong Kong
Far East Horizon (-/BBB-/Withdrawn), 2.625% 3mar2024, USD | 500 mln

Listing: Hong Kong S.E.
Bookrunner: BNP Paribas, Bank of East Asia, China Everbright Bank, Emirates NBD, Guotai Junan Securities, Industrial Bank, Mitsubishi UFJ Financial Group, SMBC Nikko Capital
Depository: Clearstream Banking S.A., Euroclear Bank

Hong Kong
Castle Peak Power Company (A1/AA-/-), 2.125% 3mar2031, USD | 300 mln

Listing: Hong Kong S.E.
Bookrunner: ANZ, Credit Agricole CIB, HSBC, Mizuho Financial Group
Depository: Clearstream Banking S.A., Euroclear Bank

BOND SEARCH Open / Comment

2021-03-01 16:36:33 HY issues of February 24 – March 1

Hong Kong
R&F Properties (HK) (B2/B/B+), 11.625% 3sep2024, USD | 325 mln

Listing: SGX
Bookrunner: CITIC Securities International, Credit Suisse, Heungkong Securities, JP Morgan
Depository: Clearstream Banking S.A., Euroclear Bank

BOND SEARCH Open / Comment

2021-03-01 13:56:06 The Italian Treasury Department has announced that starting from 01.03.2021 it will issue a new government bond linked to sustainable finance, the BTP Green dedicated to financing expenses for the ecological transition

The Green BTPs will finance the expenses destined to contribute to the realization of the environmental objectives outlined by the European Taxonomy of Sustainable Activities: climate change mitigation, adaptation to climate change, sustainable use and protection of water resources and the marine environment, transition to an economy circular, prevention and control of pollution, protection, improvement and restoration of biodiversity, ecosystems and environmental services. The issues of the new government bond will also help Italy to support the Sustainable Development Goals of the UN 2030 Agenda.

The total amount should be € 35 billion, but, as Davide Iacovoni, head of the public debt management at the Ministry of Economy underlined in the press conference for the presentation: "The issue is imminent. But it is good to point out immediately that there will not be a 35 billion green BTp. We of the Mef, together with the inter-ministerial committee created ad hoc, have identified the expenses that can be covered by this issue and which fall within the areas of the European taxonomy and in seven of the 17 objectives of the agenda 2030 of the UN".

The 35 billion € are therefore a sort of "theoretical maximum limit" then, based on market conditions and above all on demand, the weight of the issue will be decided. In particular, the green BTp will refinance expenses already made in the 2018-2020 period and then will cover the forecast ones for 2021. The Mef is not unbalanced on rates: "At the moment we don't know - reiterated Iacovoni -. However, our goal with the green BTp is not to reduce the cost of debt ".

Reporting is fundamental for green bonds: investors want to know how their money is spent. "On an annual basis, a document called "Italian Sovereign Green Bond Allocation and Impact Report" will be made public - explained in the Mef document -. This document will primarily illustrate the allocation of resources raised through the issuance of Green Government bonds in the previous year, as well as for the years preceding the last reporting year. The document will report on the progress of the disbursement of the amounts provided for by each issue of green bonds, at least at the expense category level, and will contain a summary sheet of the progress of the implementation of the financed interventions. This report will be subjected, before publication, to the verification of an independent body". Open / Comment

2021-03-01 11:57:22 Rating Actions in Foreign Currency on February 26, 2021

Fitch Ratings affirmed Ireland at "A+" with a stable outlook.

Fitch Ratings affirmed Denmark at "AAA" with a stable outlook.

Fitch Ratings affirmed Ukraine at "B" with a stable outlook.

Moody's changed Ecuador's outlook to stable, affirmed "Caa3" rating.
Reasons: "The outlook change to stable from negative balances the favorable interest and amortization payment schedule on market debt and substantial external financing under the International Monetary Fund (IMF) program, with lingering challenges to reducing fiscal imbalances, that could once again raise credit risks over the medium-term." - Moody's report.

S&P Global Ratings changed Georgia's outlook to negative, affirmed "BB" rating.
Reasons: "risks to Georgia's ability to generate adequate foreign exchange earnings to service its sizable external liabilities over our forecast horizon. The recovery in the tourism sector is likely to lag the global rollout of vaccines, and we do not project a return to 2019 levels of tourist activity through 2024." - S&P Global Ratings report. Open / Comment

2021-03-01 09:40:41 US Treasury Securities

Yield Curve

UST 2Y YTM:
0.14% ( 3 bp)
UST 5Y YTM:
0.75% ( 6 bp)
UST 10Y YTM:
1.44% ( 10 bp)
UST 30Y YTM:
2.33% ( 16 bp)

On Friday, U.S. Treasury yields subsided in cautious trading as investors repositioned a day after a watershed rate surge, but growth concerns weighed on sentiment as data showed a strong rebound in consumer spending.

Comment: Reuters Open / Comment

2021-02-26 16:29:19 EM issues of February 23-26

Chile
Banco Santander Chile (A1/A/Withdrawn), 0.715% 26jan2024, USD | 100 mln

Bookrunner: JP Morgan
Depository: Clearstream Banking S.A., Euroclear Bank

Mexico
America Movil (A3/BBB+/A-), 0% 2mar2024, EUR (Conv.) | 2097 mln

Bookrunner: Bank of America Merrill Lynch, Barclays, Citigroup
Depository: Clearstream Banking S.A., Euroclear Bank

China
Agricultural Bank of China (Singapore Branch) (A1/A/A), 0.75% 2mar2024, USD | 300 mln

Listing: SGX
Bookrunner: Agricultural Bank of China, BNP Paribas, Bank of China, Bank of Communications, CCB International, China Everbright Bank, Citigroup, Credit Agricole CIB, DBS Bank, HSBC,ICBC,Industrial Bank, Mizuho Financial Group, OCBC, Shanghai Pudong Development Bank, Standard Chartered Bank, United Overseas Bank
Depository: Clearstream Banking S.A., Euroclear Bank

BOND SEARCH Open / Comment

2021-02-26 11:16:22 Rating Actions in Foreign Currency on February 25, 2021

S&P Global Ratings downgraded Belize to "CC " and changed outlook to negative.
Reasons: "heightened risk of a distressed debt exchange or missed coupon payments on the U.S. dollar bonds due 2034. The next coupon payment is due May 20, 2021." - S&P Global report. Open / Comment

2021-02-26 10:04:54 US Treasury Securities

Yield Curve

UST 2Y YTM:
0.17% ( 5 bp)
UST 5Y YTM:
0.81% ( 19 bp)
UST 10Y YTM:
1.54% ( 16 bp)
UST 30Y YTM:
2.33% ( 9 bp)

On Thursday, U.S. Treasury yields rose to new milestone highs as the week's sell-off in bonds on rising inflation fears continued, accelerated by a disappointing auction of 7-year notes at midday. Analysts said the trading showed investors positioning for price increases on goods and services internationally, even after top U.S. Federal Reserve and European Central Bank officials tried to talk down rising yields.

Comment: Reuters Open / Comment

2021-02-25 16:29:50 EM issues of February 23-25

Czech Republic
EP Infrastructure (Baa3/BBB/BBB-), 1.816% 2mar2031, EUR | 500 mln

Listing: Irish S.E.
Bookrunner: Citigroup, HSBC, Intesa Sanpaolo, SMBC Nikko Capital, UniCredit
Depository: Clearstream Banking S.A., Euroclear Bank

China
Agricultural Bank of China (Singapore Branch) (A1/-/-), 1.25% 2mar2026, USD | 300 mln

Listing: SGX
Bookrunner: Agricultural Bank of China, BNP Paribas, Bank of China, Bank of Communications, CCB International, China Everbright Bank, Citigroup, Credit Agricole CIB, DBS Bank, HSBC,ICBC,Industrial Bank, Mizuho Financial Group, OCBC,Shanghai Pudong Development Bank, Standard Chartered Bank, United Overseas Bank
Depository: Clearstream Banking S.A., Euroclear Bank

BOND SEARCH Open / Comment