4HEûISSUERûISûTHEûPRODUCTûOFûAûûMERGERû
BETWEENû0ORTUGALSû&IDELIDADE
-UNDIALûANDû
)MPERIO
"ONANCAûWHICHûLAUNCHEDûUNDERû
THEûSINGLEûBRANDûOFû&IDELIDADEûINû
&OSUNûAû#HINESEûCONGLOMERATEûTOOKûANû
ûSTAKEûINûTHEûCOMPANYûINûû
BOLSTERINGûITSûASSETSûANDûEASINGûTHEûPRESSUREû
ONûITSûBALANCEûSHEETû)TûWASûPREVIOUSLYû
OWNEDûBYûSTATE
OWNEDûBANKû#AIXAû'ERAL
&OSUNûALSOûOWNSû'ERMANûPRIVATEûBANKû
Hauck & AufhaeuserûAûLEADûMANAGERûONûTHEû
DEALûALONGSIDEûCaixaBIûDeutsche Bankû
Goldman Sachs ANDûJP Morgan
!SûINûTHEûCASEûOFû6IVATûTHEû#HINESEû
OWNERSHIPûISûLIKELYûTOûBEûAûFOCUSûPOINTûFORû
INVESTORSû4HEû$UTCHûINSURERSûBONDSû
WIDENEDûLASTûYEARûWHENûTHEûCHAIRMANûOFû
PARENTû!NBANGû)NSURANCEû'ROUPûWASû
ARRESTEDûTHOUGHûITûISûNOWûGOVERNMENT
CONTROLLED
6IVATûSOLDûAûõMûûPERPETUALû.#û24û
""nûBYû&ITCH ûASûRECENTLYûASû*UNEûBIDûTIGHTERû
LASTûWEEKûATû
4HEûBONDûISûINTENDEDûTOûSUPPORTû
&IDELIDADESûINTERNATIONALûEXPANSIONû
IMPROVINGûITSûlNANCIALûmEXIBILITYûANDû
OPENINGûUPûAûNEWûSOURCEûOFûFUNDING
4HEûISSUEûWOULDûIMPROVEûITSû3OLVENCYû))û
COVERAGEûRATIOûTOûûTHOUGHûATûûITû
ISûALREADYûTOWARDSûTHEûUPPERûENDûOFûTHEû
nûTARGETEDûRANGEû4HEûCOMPANYû
CURRENTLYûHASûNOû2ESTRICTEDû4IERûû4IERûûORû
4IERûûCAPITAL
STERLING
INVESTEC REVAMPS CAPITAL BUT
BONDS WIDEN
INVESTEC BANKûLASTûWEEKûWRAPPEDûUPûAûTENDERû
ANDûNEWûISSUEûTOûIMPROVEûTHEûEFlCIENCYûOFû
ITSû4IERûûDEBTûTHOUGHûTHEûBONDSûWIDENEDû
DESPITEûAûSTRONGûRECEPTIONûINûPRIMARY
4HEûISSUERûTHEûMAINûBANKINGûSUBSIDIARYû
OFû)NVESTECûPLCûPRICEDûTHEû.#ûRATEDû
"AA""" ûATûBPûOVERû'ILTSûWELLûINSIDEû
BPûAREAû)04SûVIAûCitigroup, HSBC, Investec
AND JP Morganû"OOKSûCLOSEDûOVERûaBNû
ENABLINGûITûTOûTAKEûaMûRATHERûTHANûTHEû
aM
aMûORIGINALLYûENVISAGED
)TûWASûPARTûOFûAûBROADERûEXERCISEûTHATûALSOû
TOOKûOUTûaMûOFûAûLEGACYûaMû4IERûû
DUEûûTHATûCARRIESûAûCOSTLYûûCOUPONû
ANDûISûLOSINGûREGULATORYûVALUEûASûITû
APPROACHESûlNALûMATURITY
h)TSûAûVERYûSTRATEGICûTRADEûFORûUSvûSAIDû
0AULû-YERSûTREASURERûATû)NVESTEC
h#LEARLYûTHEûPOLITICALûANDûMARKETûINSTABILITYû
HASûBEENûHEIGHTENEDûOVERûTHEûLASTûûMONTHSû
ORûSOû
ûWEûDIDûAûTRADEûLASTûYEARûINûMOREûBENIGNû
MARKETSûTHANûWEûAREûINûNOWû
ûSOûxûBEINGûABLEû
TOûCONCLUDEûTHEûDEALûWITHûTHEûPRICEûANDûTHEû
PRICEûTIGHTENINGûWEûDIDûANDûTHEûUPSIZEûASû
WELLûSHOWSûTHEûAPPETITEûWEûHADv
4HATûPREVIOUSûTRADEûWASûAûaMûû
!DDITIONALû4IERûû"A ûSOLDûOUTûOFûTHEû
HOLDINGûCOMPANYûLASTû3EPTEMBERûANDûNOWû
BIDûAROUNDûû4HEû4IERûûWASûISSUEDûATû
THEûOPCOûTOûOFFERûINVESTORSûLIKE
FOR
LIKEû
DEBT
h)TûWASûREALLYûAûQUESTIONûOFûDOINGûTHEû!4û
lRSTûASûTHATûGAVEûUSûNEWûCAPITALûANDûTHISû
WASûREALLYûABOUTûCAPITALûEFlCIENCYûRATHERû
THANûGENERATINGûSIGNIlCANTûNEWûAMOUNTSvû
SAIDû-YERS
!GAINSTûAûBACKDROPûOFûWEAKERûBROADERû
MARKETSûTHEûBONDSûWIDENEDûTOûAROUNDû'ILTSû
PLUSûBPûONûTHEûBIDûONû4HURSDAYû
ACCORDINGûTOû4HOMSONû2EUTERSûDATAûTHOUGHû
ONEûLEADûSPOTTEDûTHEMûATûBP
BPû4HEû
I4RAXXû3UBORDINATEDû&INANCIALSûINDEXûWASû
MOREûTHANûBPûWIDERûONûTHEûDAYûATûBP
h3OMEONEûYESTERDAYûOFFEREDûTHEMûTOûMEû
ATûTHEûREOFFERûPRICEûSOû)ûTHINKûTHEREûWEREûAû
LOTûOFûmIPPERSûINVOLVEDvûSAIDû'ORDONû
3HANNONûAûPORTFOLIOûMANAGERûATû
4WENTY&OURû!SSETû-ANAGEMENT
h7HILEûTHATSûWORKINGûITSûWAYûOUTûOFûTHEû
SYSTEMûTHEYûMIGHTûLAGûFORûAûLITTLEûWHILEv
FEW AND FAR BETWEEN
)NVESTECûHADûOFFEREDûTOûBUYûTHEûOLDûNOTESûATû
BPûOVERû'ILTSûSUBJECTûTOûAûaMûCAPûTOû
HELPûENSUREûAûBENCHMARK
SIZEDûSTUBû
REMAINEDûOUTSTANDINGû3OMEûaMûWASû
ACCEPTEDûFORûPURCHASE
3OMEûINVESTORSûPREFERREDûNOTûTOûPASSûUPû
THEûûCOUPONûPARTICULARLYûGIVENûTHEû
LOWûRATEûENVIRONMENTû/NûTHEûOTHERûHANDû
THEûLEADûSAIDûTHEûNUMBERûOFûACCOUNTSû
SWITCHINGûINTOûTHEûNEWûBONDûWASûVERYû
POSITIVEû!LLOCATIONûCODESûPRIORITISEDûTHOSEû
WHOûWANTEDûTOûRETAINûEXPOSUREûTOûTHEûNAMEû
THROUGHûTHEûNEWûTRANSACTION
)NVESTECû,TDûISû3OUTHû!FRICA
LISTEDû
(OWEVERûTHEûHOLDCOûOFû)NVESTECû"ANKûISû
,ONDON
LISTEDû)NVESTECûPLCûANDûBANKû
CREDITORSûAREûRING
FENCEDûFROMûTHEû3OUTHû
!FRICANûENTITYûWHICHûSHOULDûOFFERûINVESTORSû
COMFORTûEVENûASûEMERGINGûMARKETSûDEBTû
COMESûUNDERûPRESSURE
4HEûTRADEûWASûTHEûlRSTûSTERLINGûSUBûSINCEû
-ETROû"ANKSûUNRATEDûaMûû.#û
4IERûûINû*UNEûANDûTAKESûSUPPLYûINûTHEû
FORMATûSOûFARûTHISûYEARûTOûJUSTûaBNû4HEû
MARKETûHASûNOTûLOOKEDûATTRACTIVEûFORûMANYû
NON
5+ûISSUERSûWHILEûTIGHTLYûPRICEDûSENIORû
DEALSûHAVEûSTRUGGLEDûTOûlNDûTRACTION
)NVESTECûISûNOWûUNLIKELYûTOûRAISEûFURTHERû
CAPITALûINûTHEûNEXTûûTOûûMONTHSûTHOUGHû
THATûCOULDûCHANGEûDEPENDINGûONûBALANCEû
SHEETûGROWTHû5NLIKEûITSûLARGERû5+ûPEERSûITû
DOESûNOTûNEEDûTOûRAISEûADDITIONALû-2%,
ELIGIBLEûDEBTûSINCEûITSûTARGETûISûLIMITEDûTOû
REGULATORYûCAPITALûREQUIREMENTS
)TûHAPPENEDûTOûCOINCIDEûWITHûAûSTERLINGû
TENDERûOFFERûFROMûOLD MUTUALûWHICHûSAIDûLASTû
7EDNESDAYûTHATûITûHADûBOUGHTûBACKûALMOSTû
aMûOFûTWOûNOTESûTOûREDUCEûITSûLIABILITIESû
ANDûINTERESTûCOSTS
h(OPEFULLYûTHATûDOESûREMINDûPEOPLEûTHEû
OLD
STYLEû,OWERû4IERûûISûAûSHRINKINGûSPACEû
WHETHERûITSûBANKûORûINSURANCEvûSAIDû
4WENTY&OURSû3HANNONûh4HATûSUBORDINATEDû
PAPERûHASûHADûAûBITûOFûAûBADûTIMEûYEAR
TO
DATEûSOûHOPEFULLYûITûGETSûPEOPLEûTHINKINGû
ABOUTûITûAûBITûDIFFERENTLYv
-OSTûRECENTûSTERLINGûDEALSûHAVEûCOMEûWITHû
CHUNKYûNEWûISSUEûPREMIUMSûHEûSAID
BONDS FIG
ALL GLOBAL AND EUROMARKET YEN BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues ¥(m) (%)
1 Sumitomo Mitsui Finl 6 63,650.03 19.6
2 Nomura 10 60,233.33 18.5
3 Mizuho 9 47,433.36 14.6
4 BAML 2 31,833.33 9.8
5 Daiwa Securities 7 23,916.67 7.3
6 MUFG 1 21,833.33 6.7
7 HSBC 2 15,000.00 4.6
8 Barclays 4 11,650.00 3.6
9 Goldman Sachs 1 10,000.00 3.1
10 Mitsubishi UFJ MS 2 6,666.67 2.0
Total 23 325,536.30
Excluding equity-related debt. Including preferreds.
Source: Thomson Reuters SDC code: K10
ALL SAMURAI BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues ¥(m) (%)
1 Sumitomo Mitsui Finl 28 278,401.67 22.3
2 Mizuho 29 240,055.00 19.3
3 Mitsubishi UFJ MS 28 228,921.67 18.4
4 Daiwa Securities 27 191,846.67 15.4
5 Nomura 27 189,130.00 15.2
6 Natixis 11 47,120.00 3.8
7 BAML 2 30,000.00 2.4
8 BNP Paribas 3 16,125.00 1.3
9 Credit Agricole 4 14,500.00 1.2
10 Citigroup 2 10,000.00 0.8
Total 40 1,246,100.00
Excluding equity-related debt.
Source: Thomson Reuters SDC code: K11
ALL INTERNATIONAL YEN BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues ¥(m) (%)
1 Sumitomo Mitsui Finl 34 342,051.69 21.8
2 Mizuho 38 287,488.36 18.3
3 Nomura 37 249,363.33 15.9
4 Mitsubishi UFJ MS 30 235,588.33 15.0
5 Daiwa Securities 34 215,763.33 13.7
6 BAML 4 61,833.33 3.9
7 Natixis 11 47,120.00 3.0
8 MUFG 1 21,833.33 1.4
9 BNP Paribas 3 16,125.00 1.0
10 Citigroup 3 15,486.25 1.0
Total 63 1,571,636.30
Including all Euro, foreign and global issues. Excluding equity-related
debt.
Source: Thomson Reuters SDC code: K12