IFR International - 20.10.2018

4HISûISûITSûlRSTûPUBLICûlNANCINGûSINCEûITû
OFFEREDûSHARESûINûûTOûlNANCEûITSû
ACQUISITIONûOFû!EGISû'ROUPûANDûTHEûLATESTû
SIGNûTHATûAPANSûULTRA
LOWûINTERESTûRATESûAREû
LURINGûMOREûCOMPANIESûTOûTHEûCAPITALû
MARKETS
4HEûDEBUTûDEALûCOMPRISEDûcBNûOFûû
lVE
YEARûcBNûOFûûSEVEN
YEARûANDû
cBNûOFûû
YEARûNOTES
4HEûPRICINGûLEVELSûAREûPERCEIVEDûASû
COMPETITIVEûGIVENûTHATûTHEûlVE
YEARûTRANCHEû
FORûEXAMPLEûWASûPRICEDûINûLINEûWITHûTHEûlVE
YEARûPAPERûISSUEDûBYû-ITSUBISHIû#ORPûAûWEEKû
EARLIER
-ITSUBISHIû#ORPûAûMAJORûAPANESEûTRADINGû
COMPANYûWITHûTHEûSAMEûCREDITûRATINGûFROMû
2)ûOFû!!nûHADûSOLDûlVE
YEARûBONDSûWITHûAû
ûCOUPON
h)ûTHINKûVIEWSûVARYûAMONGûINVESTORSûASûTOû
WHETHERûTHEûCOUPONû;ONû$ENTSU=ûISûFAIRûORû
NOTûBUTûTHEûûCOUPONûISûGOODûFORûTHEû
ISSUERvûSAIDûAû*APANESEûASSETûMANAGER
(EûADDEDûTHATûTHEREûAREûDIFFERENTûOPINIONSû
ATûPRESENTûNOTûJUSTûABOUTû$ENTSUSûCOUPONû
LEVELûBUTûALSOûTHEûPRICINGûLEVELSûINûRECENTû
lVE
YEARûDEALSûINûGENERALûh3OMEûINVESTORSû
BELIEVEûTHEûûTOûMID
ûAREAûWHEREû
lVE
YEARûBONDSûPRICEDûRECENTLYûISûAûBITûTOOû
LOWvûHEûSAID
0ARTûOFûTHEûPROCEEDSûWILLûBEûUSEDûTOû
RElNANCEûLOANSûTHATûMATUREûINû!PRILûû
WHILEûTHEûRESTûWILLûBEûUSEDûBYûTHEûENDûOFû
ûFORûSTRATEGICûINVESTMENTS
MizuhoûNomuraûANDûSMBC NikkoûWEREûTHEû
LEADS

FIG

EUROS

CAIXABANK, ZURICH ENCOURAGE
BUT INVESTORS CIRCUMSPECT

3ENIORûBONDSûFROMûCAIXABANKûANDûZURICH
INSURANCE COMPANYûWEREûTHEûEUROûlNANCIALû
MARKETSûlRSTûREALûTESTûFORûWEEKSûBUTûWHILEû
THEûlNALûOUTCOMESûWEREûENCOURAGINGûTHEREû
WEREûCLEARûSIGNSûOFûENTRENCHEDûINVESTORû
CAUTION
4HEûTWOûISSUERSûOPENEDûBOOKSûONû
RESPECTIVEûlVE
YEARûSENIORûNON
PREFERREDû
"A""""""!, ûANDû
YEARûDEALSû!ûBYû
30 ûLASTû7EDNESDAYûCOMMERZBANKûHADûSOLDû
AûõMûlVE
YEARû'REENû3.0ûTHEûPREVIOUSû
DAYûBUTûMOREûTHANûTHREEûWEEKSûHADûPASSEDû
SINCEûTHEûLASTûõBN
PLUSûSENIORûDEAL
"OOKSûFORûTHEû3PANISHûNOTEûHADûPASSEDû
õBNûBYûMID
MORNINGûWITHûMID
SWAPSûPLUSû
BPûAREAû)04SûUNCHANGEDûBUTûTHEûNEXTû
UPDATEûTOOKûSOMEûTIMEûTOûEMERGEûDESPITEûAû
CONCESSIONûOFûBPûTOûBPû4HATûPROMPTEDû

THEûBANKSûõBNûû*ANUARYûû3.0û

TOûWIDENûFROMûSWAPSûPLUSûBPûTOûBP

h4HEûLEVELûLOOKSûGOODûTOûMEûBUTûTHEû

MARKETûISûAûLITTLEûBITûUNTESTEDûINûTERMSûOFû

PRINTINGûBIGGERûSIZEû;IN=ûAûPERIODûWHEREûTHEû

MARKETûHASûBEENûINûmUXvûAûSYNDICATEûOFlCIALû

SAIDûAFTERûTHEûlRSTûUPDATE

h-YûGUTûSAYSûITûSHOULDûGOûWELLûBUTûWITHû

THEûUNDERLYINGûCAUTIOUSNESSûAHEADûOFû)TALIANû

RATESû;MOVES=ûITSûANûINTERESTINGûTESTv

)MPROVEMENTSûINû3PAINSûBANKINGûSECTORû

HAVEûFARûOUTPACEDûTHOSEûINû)TALYûWHICHûHASû

BEENûEVIDENTûINûSûISSUANCEûPATTERNSû

PRIORûTOûLASTûWEEKû3PANISHûINSTITUTIONSûHADû

PRICEDûSOMEûõBNûINûEURO

DENOMINATEDû

CAPITALûCOMPAREDûWITHûJUSTûõBNûFROMû

)TALYûWHILEûOVERALLû3PANISHûlNANCIALû

ISSUANCEûAMOUNTEDûTOûõBNûVERSUSû)TALYSû

õBN

#AIXA"ANKûITSELFûENCAPSULATESûTHATû

PROGRESSû)TûWASûUPGRADEDûBYûALLûTHREEûMAJORû

RATINGûAGENCIESûTHISûYEARûITûHASûREDUCEDûITSû

PROBLEMATICûREALûESTATEûASSETSûANDûISûSELLINGû

ITSû2EPSOLûSTAKEû)TûHASûALSOûISSUEDûACROSSûTHEû

FULLûPRODUCTûSPECTRUMûTHISûYEARûFROMû!4ûTOû

COVERED

NO SLAM DUNK

%VENûSOûINVESTORSûAREûWARYûOFûFURTHERû

WEAKNESSûINûHIGHERûBETAû3OUTHERNû%UROPEANû

NAMESûSHOULDû"40SûUNRAVELûONCEûAGAINû

-OODYSûANDû30ûAREûBOTHûDUEûTOûREVIEWû

)TALYSûCREDITûRATINGûTHISûMONTHûANDûMANYû

INVESTORSûWILLûREMAINûONûEDGEûUNTILûAû

POTENTIALûDOWNGRADEûISûCONlRMED

h)ûDONTûTHINKûITSûSTOPPINGûINVESTORSûFROMû

PLAYINGûnûWEVEûGOTûAûVERYûDEEPûORDERûBOOKû

HEREûnûBUTûTHEûQUESTIONûISûAREûCERTAINû

INVESTORSûPLAYINGûINûSMALLERûSIZEûTHANûUSUALvû

SAIDûAûLEAD

h)TSûNOTûAûSLAM

DUNKûMARKETûWHEREû

ANYTHINGûANDûEVERYTHINGûWILLûWORKûYOUû

HAVEûTOûBEûAûBITûCAREFULv

/RDERSûHADûJUMPEDûPASTûõBNûBYûTHEû

SECONDûUPDATEûWHENûGUIDANCEûWASûSETûATû

SWAPSûPLUSûBPnBPûFORûANûEXPECTEDû

õBNûDEALû)TûLATERûLAUNCHEDûATûTHEûTIGHTûENDû

THROUGHûLEADSûBarclaysûCaixaBankûCredit

SuisseûJP Morgan ANDûNatixis

h)TûSEEMEDûTOûBEûAûLONGûTIMEûCOMINGû

TOGETHERvûSAIDûAûSECONDûBANKERûAWAYûFROMû

THEûDEAL

h/NEûDAYûOFûRELIEFûRALLYûINûAûVOLATILEûPERIODû

ISûMAYBEûNOTûENOUGHûTOûGETûEVERYBODYû

JUMPINGûBACKûINûWITHûBOTHûFEETûBUTûWITHûAû

RELATIVELYûCONSERVATIVEûPRICINGûTHEYVEûGOTûAû

GOODûBOOKûTOGETHERû)ûTHINKûTHATSûPRUDENTûINû

THISûENVIRONMENTv

PRICE OVER SIZE

:URICHûISSUINGûTHROUGHû#LOVERIEûPLCûWASû

QUICKERûTOûSETûGUIDANCEûBUTûITSûlNALû

OVERSUBSCRIPTIONûWASûLOWERûDESPITEûBEINGûTHEû

BORROWERSûlRSTûSUCHûSENIORûTRADEûFORûFOURûYEARS

5NLIKEû#AIXA"ANKûTHEûINSURERûSTARTEDûATûAû

RELATIVELYûTIGHTûLEVELûGIVENûITSûLIMITEDûSIZEû

AMBITIONSû)04SûOFûSWAPSûPLUSûBPûAREAû

WEREûREVISEDûTOûBPnBPûONûBOOKSûINû

EXCESSûOFûõMûWHENûTHEûSIZEûWASûlXEDûATû

õM

4HEûSPREADûLATERûSETûATûTHEûTIGHTûENDû

WHICHûOFFEREDûAûZEROûTOûBPûCONCESSIONû

GIVENûITSûõMûûSûWEREûTRADINGûINû

THEûLOWûSû4HEûlNALûBOOKûDROPPEDûTOû

õM

PLUS

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 Nomura 12 115,733.33 17.1

2 Sumitomo Mitsui Finl 10 111,696.71 16.5

3 Mizuho 13 104,480.04 15.5

4 BNP Paribas 2 55,500.00 8.2

5 Mitsubishi UFJ MS 5 45,713.35 6.8

6 Daiwa Securities 10 32,716.67 4.8

7 BAML 2 31,833.33 4.7

8 MUFG 2 29,833.33 4.4

9 Goldman Sachs 3 28,680.02 4.2

10 HSBC 2 15,000.00 2.2

Total 48 676,229.39

Excluding equity-related debt. Including preferreds.

Source: Refinitiv SDC code: K10

ALL SAMURAI BONDS

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues ¥(m) (%)

1 Mizuho 47 432,381.67 21.1

2 Sumitomo Mitsui Finl 39 410,761.67 20.1

3 Mitsubishi UFJ MS 40 345,281.67 16.9

4 Nomura 38 317,456.67 15.5

5 Daiwa Securities 36 298,653.33 14.6

6 Natixis 11 47,120.00 2.3

7 BAML 3 46,666.67 2.3

8 HSBC 3 40,000.00 2.0

9 SG 3 32,000.00 1.6

10 Barclays 2 29,520.00 1.4

Total 58 2,047,800.00

Excluding equity-related debt.

Source: Refinitiv SDC code: K11

ALL INTERNATIONAL YEN BONDS

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues ¥(m) (%)

1 Mizuho 60 536,861.71 19.7

2 Sumitomo Mitsui Finl 49 522,458.38 19.2

3 Nomura 50 433,190.00 15.9

4 Mitsubishi UFJ MS 45 390,995.02 14.4

5 Daiwa Securities 46 331,370.00 12.2

6 BAML 5 78,500.00 2.9

7 BNP Paribas 5 71,625.00 2.6

8 HSBC 5 55,000.00 2.0

9 Natixis 11 47,120.00 1.7

10 Barclays 6 41,170.00 1.5

Total 106 2,724,029.39

Including all Euro, foreign and global issues. Excluding equity-related

debt.

Source: Refinitiv SDC code: K12