the covered bonds we’ve had,” said the
banker.
h4HERESûDElNITELYûAûFEWûMANDATESûBEINGû
held back by syndicates in the corporate
space although there’s not really any reason
WHYûISSUERSûSHOULDNTûFEELûCONlDENTv
RTR PLANS BOND AS SALE DEADLINE
APPROACHES
Terra Firma’s Italian solar company RTR has
mandated Cantor Fitzgerald, JP Morgan and
UniCredit on a possible €850m-€900m 13-year
senior secured amortising bond offering to
back the sale of the 334MW business.
&OURûGROUPSûAREûINûLINEûTOûSUBMITûlNALû
bids for RTR by July 12: EF Solare, the joint
venture of Enel and F2i; a consortium of
Italian investor Tages Capital and the UAE’s
Masdar; JP Morgan-backed renewables IPP
3ONNEDIXûANDûOILûCOMPANYû%NIûINû
consortium with Qatar Petroleum.
The bond might be issued depending on the
INTERESTûOFûTHEûlNALûBUYER ûSAIDûAûPERSONûCLOSEû
TOûTHEûDEALû4HEûNOTESûWOULDûRElNANCEûPARTûOFû
RTR’s debt, which is spread across various
PROJECTûlNANCEûLOANS ûWHILEûOTHERûEXISTINGû
PROJECTûlNANCEûLOANSûWOULDûREMAINûINûPLACE
STERLING
LACKLUSTRE DEBUT FOR TOYOTA
AUSTRALIA
TOYOTA FINANCE AUSTRALIA tested sterling waters
FORûTHEûlRSTûTIMEûLASTû4UESDAY ûSOMEûTHREEû
months after making its euro debut, but the
four-year trade struggled to gain traction.
4HEûlNALûaMûSIZEûWASûAûBENCHMARK
minimum amount, and the Gilts plus 85bp
spread did not progress beyond the IPT range.
Leads reckoned talk started 25bp-30bp
back of fair value. TMCC has September
2021s at plus 55bp and September 2022s at
59bp over, according to pre-announcement
Tradeweb prices.
But the generous starting premium
meant the two bonds subsequently softened
a fair amount, both bid up to 11bp wider
during the session.
)TSûõMûlVE
YEARûEUROûATûTHEûENDûOFû-ARCHû
suffered from a competing wave of supply and
attracted a limited book of €650m.
Toyota Australia, which has mostly issued
in Australian dollars, said part of the sterling
PROCEEDSûWILLûBEûUSEDûTOûRElNANCEûEXISTINGû
debt.
4HEûISSUERûHASûSIXûBONDSûONû4RADEWEBû
maturing this year in New Zealand, US and
Australian dollars totalling some
£315m-equivalent.
Toyota was the second corporate in
sterling last week, following Informa’s
£300m eight-year tranche on Monday.
"UTûlGURESûFORûTHEûlRSTûHALFûOFûTHEûYEARûPAINTû
a lacklustre picture. Sterling corporate issuance
has fallen 35% year-on-year to £9.36bn,
according to IFR data. Bankers cited bouts of
volatility, which took their toll on euro supply
TOOûBUTûTOûAûLESSERûEXTENTûWITHûAûûDROP
BNP Paribas, HSBC and Lloydsû"$ ûWEREû
joint leads.ASSURA ON THE ROADASSURA was the only corporate to join the
DEmATINGûPIPELINEûLASTûWEEK ûPICKINGûBarclays
and HSBC for a UK roadshow starting on
Monday.
4HEû"RITISHûHEALTHCAREû2%)4 û!
ûEXPECTEDû
from Fitch, is targeting an unsecured
sterling-denominated benchmark offering
with a 10 to 12-year tenor.
Assura Properties has £110m 4.75%
December 2021s outstanding, which printed
in 2011 and were quoted at Gilts plus 228bp
pre-announcement.SWISS FRANCS
SIKA REFINANCES EVERYTHING WITH
TRIPLE TRANCHESwiss chemical company SIKA priced a
SFr550m triple-tranche senior on Tuesday
FORûRElNANCING
It sold a SFr170m three-year at 43bp over
SWAPS ûAû3&RMûSIX
YEARûATûPLUSûBP ûANDû
a SFr130m 10-year at 62bp.
The short tranche came at the tight end of
mid-swaps plus 43bp-48bp initial pricing
ANDûGUIDANCE ûTHEûSIX
YEARûINûTHEûMIDDLEûOFû
the plus 50bp-60bp range, and the 10-year
towards the tight end of IPTs of plus 60bp-
70bp and mid-guidance of plus 60bp-65bp,
although that was more to do with getting a
PLUSûYIELDû ûTHANûANYûTITULARûLEVELS
Sika is rated A- stable by S&P and has
equivalent ratings from the major Swiss
BANKSû5"3û!
#3ûLOWû!:+"û!
It has a SFr150m 1% deal from 2012 due to
mature on July 12, the same day the new
notes settle.
Sika will use the net proceeds mainly to
RElNANCEûTHEûRECENTLYûANNOUNCEDûACQUISITIONû
of its own shares from Compagnie de Saint-
Gobain, and for general corporate purposes,
INCLUDINGûRElNANCINGûTHEûABOVEûNOTEû)TûSPENTû
SFr2bn buying back shares from Saint-Gobain
and sold a SFr1.5bn convertible in June.
UBS was sole lead.EUROPEAN REPO ELIGIBLE CORPORATES
RETURN TO SWISSA brace of SNB repo eligible European
corporate deals popped up in the week,
spearheaded by DEUTSCHE BAHN FINANCE,guaranteed by Deutsche Bahn AG, rated Aa1/
AA-, which on Tuesday priced a SFr400m 10-
year at mid-swaps plus 4bp via Credit Suisse
and Deutsche Bank. Guidance was plus 5bp
area.
!LTHOUGHûNOTûSPECIlCALLYûAû'REENûBOND û
Deutsche Bahn features sustainability
RATINGSûFROMû#$0û! û/EKOMû2ESEARCHû
0RIME û"
ûANDû%COVADISû'OLD
TOTAL CAPITAL INTERNATIONAL, Aa3/A+/AA-
POSSTST ûGUARANTEEDûBYû4OTALû3! ûONû
Wednesday priced a SFr200m 0.288% eight-
year at par, swaps plus 10bp, in line with
“area” guidance.
Credit Suisse and UBS were leads.
Deutsche Bahn paid up a bit to get the
deal done, around 5bp, while Total came
roughly 4bp inside its Swiss curve.
Bank treasuries took 31.5% and 25% of the
deals, respectively.
Also SNB repo eligible was Korea Gas
which came on Monday (see Emerging
-ARKETSûSECTION NON-CORE CURRENCIES
NEXTDC NOTES IV RAISES A$300mNEXTDC raised A$300m from last Friday’s
dual-tranche senior unsecured four-year
note offering, called NOTES IV, arranged by
sole lead manager NAB.
The transaction consists of a A$200m
mOATING
RATEûNOTE ûPRICEDûATûTHREE
MONTHû
""37ûPLUSûBP ûANDûAû!MûûlXED
rate note priced at par.
Notes IV is complementary to NEXTDC’s
A$300m 6.25% June 2021s, known as Notes
III, issued in May 2017, also via NAB.
The unrated ASX-listed data-centre provider
used the proceeds of Notes III to redeem its
A$60m Notes I and A$100m Notes II at the
NEXTûOPTIONALûCALLûDATEûOFû*UNEûû
.OTESû)ûWEREûISSUEDûINû*UNEûûWITHûAûlVE
year non-call two-and-half structure and paid a
coupon of 8.0%. Notes II, with an identical
maturity date of June 16 2019, were issued in
November 2015 and paid a 7% coupon.FIG
EUROS
P&V GETS FOOTHOLD IN BOND MARKETBelgium’s P&V ASSURANCESûMADEûITSûlRSTûFORAYû
into the bond market last Wednesday,
PRICINGûAûõMû
YEARû4IERûûTOûRElNANCEû
outstanding subordinated loans and
broaden its investor base.