20 International Financing Review March 7 2020FED BOARD MEMBER LAEL BRAINARD, P16“Unfortunately, today’s rule gives a green light for
large banks to reduce their capital buffers materially”
Capital markets week ahead:
Volkswagen, Lebanon, Del Monte
EMISSIONS TEST Volkswagen will set out
its sustainability credentials, as it
continues to meet investors following the
LAUNCHûOFûITSûGREENûlNANCEûFRAMEWORKû
last week. The scandal-hit carmaker hopes
to sell bonds, Schuldschein and loans off
the back of the framework, with green
funds set to be a key component in
lNANCINGûITSûPLANSûTOûRAMPûUPûPRODUCTIONû
of electric vehicles.
"UTûITûISûSETûTOûFACEûSOMEûDIFlCULTû
questions – not least around trust – after
the company was found to be cheating
diesel emissions tests, a scandal that
has cost it more than US$30bn in vehicle
RElTS ûlNESûANDûPROVISIONSû3OMEûGREENû
investors have already said they will
not be able participate in any future
deals issued under the new framework.
“VW is off limits,” one investor told
IFR.SAVING GRACE Lebanon is expected to
miss a US$1.2bn bond payment that
comes due on Monday, as the country’s
crisis-hit government rushes to
restructure the debt before a seven-day
grace period expires. With people taking
TOûTHEûSTREETSûANDûCAPITALûINmOWSûDRYINGû
up, Beirut has placed restrictions on bank
withdrawals and tasked Lazard and Cleary
Gottlieb Steen & Hamilton with
hammering out a deal.PRICE LIST Despite big drops in equity
prices, bookbuilding continues on the
£200m listing of Ninety One, the asset
manager being spun off by South African
bank Investec. The deal is due to price on
Thursday. Bankers on the deal have takencomfort from an employee share scheme,
which is expected to bring sizeable
demand, but it’s unclear whether that
will be enough.BANANA SKIN Del Monte Foods hopes to
weather the turbulence in markets to
print a US$575m high-yield bond deal.
The 134-year-old food producer is under
pressure to secure new funds after S&P
threatened the company with a
downgrade after unexplained delays to
RElNANCEûLOANSûTHATûMATUREûINûTHEûNEXTû
year. The CCC+ rated company may well
have to pay up in these markets to get the
deal away.BLOOD MONEY Unless it gets cancelled
because of market volatility, Imara is set
to be the only IPO in the US this week. The
biotechnology company, which is
developing treatment for a rare blood
disease, is targeting US$80m. It is the
fourth spin-off from London-listed parent
Arix Bioscience following the listing of
three portfolio companies in the US last
year.BANK VAULT Institutional bookbuilding
on Cambodia’s biggest ever listing runs
until the end of the week. Acleda Bank
is hoping to raise CR380bn (US$90m)
from the lPO. Although it is the largest,
there haven’t been many listings in the
country: its stock exchange opened
INû ûANDûJUSTûlVEûCOMPANIESûHAVEû
listed so far. The retail offer runs until
April 4, with trading in the shares set for
April 27.SAFE HOUSE UK housing association
Optivo, which manages 45,000 properties
across London, the South East and the
Midlands, is weighing up whether to
proceed with a planned £250m bond deal
after meeting with investors last week.
4HEûCOMPANYûISûSEEKINGûFUNDSûTOûlNANCEûAû
big expansion plan: it is aiming to develop
1,500 properties every year as demand
continues to rise.FINNISH LINE Finnish lender Oma Savings
Bank hits the information superhighway
to woo investors ahead of a planned euro-
denominated covered bond. With all but
essential travel being cancelled amid the
coronavirus outbreak, the bank has opted
against a traditional roadshow, with
meetings set to be held electronically. It
HASûlVEûSESSIONSûONû-ONDAYûANDûONû
Tuesday.LAST WEEK IN NUMBERS
Eight – European corporate bonds
that printed during the week
50bp – Emergency rate cut from
the US Federal Reserve on Tuesday
as coronavirus spread continues
10% – Citigroup traders that have
been relocated to a back-up site as
contingency plans kick in
£700m – Demand for UK Municipal
Bond Agency debut, a £350m deal
for Lancashire County Council5 IFR PM 2323 p 15 - 24 .indd 20 06 / 03 / 2020 19 : 22 : 45