IFR Magazine - October 27, 2018

Capital markets week ahead:

Stress tests, Nova Ljubljanska Banka, Kazakhstan

STRESSED OUTû4HEû%UROPEANû"ANKINGû
!UTHORITYûRELEASESûTHEûRESULTSûONû&RIDAYûOFû
WHATûITûHASûSAIDûWILLûBEûITSûTOUGHEST
EVERû
STRESSûTESTû,ENDERSûACCOUNTINGûFORûABOUTû
ûOFûTHEûREGIONSûBANKINGûASSETSûWILLûBEû
put through their paces, with the EBA for
THEûlRSTûTIMEûSETûTOûPROBEûTHEûINDUSTRYûFORû
ITSûREADINESSûFORûTHEû5+SûPLANNEDûEXITû
FROMûTHEû%UROPEANû5NIONûINû-ARCH
But with nerves already frayed around
%UROPEANûBANKSûnû)TALYûISûPARTICULARLYûINû
FOCUSûAMIDûAûSTAND
OFFûAROUNDûTHEû
government’s spending plans, while
Deutsche Bank touched a new record low
ONû&RIDAYûnûANYûNEGATIVEûSURPRISESûAREû
LIKELYûTOûGOûDOWNûVERYûBADLYû)TûCERTAINLYû
wouldn’t be the best time to be raising
FRESHûCAPITALû&INGERSûCROSSED ûTHEN

SLOVEN-LY RETURN Seven years after
3LOVENIAûSTEPPEDûINûTOûRESCUEû,JUBLJANSKAû
Banka, the government will on Monday
OPENûBOOKSûONûAûLONG
AWAITEDû)0/ûOFûTHEû
FAILEDûBANKû)TûISûSELLINGûBETWEENûHALFûANDû
THREE
QUARTERSûOFûITSûSHARESûINû.OVAû
,JUBLJANSKAû"ANKA ûWHICHûISûWHATûREMAINSû
of its ongoing operations after bad assets
WEREûSTRIPPEDûOUTû4HEûDEALûPRICESûNEXTû
WEEK

A STEPPE IN THE RIGHT DIRECTION
+AZAKHSTANûISûEXPECTEDûTOûMAKEûITSûDEBUTû
in euros, with the country hitting the road
from Monday to market the planned deal
TOûBONDûINVESTORSû4HEûCENTRALû!SIANû
republic will be hoping to tap into a rally
in its outstanding bonds since it last did an
international deal – that time in dollars –
THREEûYEARSûAGOû)TSû53BNû*ULYûSû
WEREûBIDûATûûLASTûWEEK

GETTING BACK IN GEARû4HEûINVESTMENTû
bank reporting season continues, with
(3"#ûONû-ONDAYûTHEûlRSTûOFûAûLONGûLISTûTHATû

INCLUDESû".0û0ARIBASû3TANDARDû#HARTEREDû

ANDû#REDITû3UISSEû3TAN#HARTûWHICHû

reports on Wednesday, will be particularly

INûFOCUSûAFTERûITSûCHIEFûlNANCIALûOFlCERû

mAGGEDûTHEûPOTENTIALûFORûMOREûJOBûCUTSû

AFTERûADMITTINGûTHATûTHEûBANKSûCOST

CUTTINGû

DRIVEûHADûSTALLED

HEALTH CHECKû)NNOVENTû"IOLOGICSûSTARTSû

trading in Hong Kong on Wednesday, and

ITSûDEBUTûWILLûBEûCLOSELYûWATCHEDû"ANKERSû

predict that its performance could be

decisive for a growing list of biotech

companies planning to list in Hong Kong,

AFTERûTHREEûBIGûRECENTû)0/SûALLûTRADEDûWAYû

BELOWûWATERû)NNOVENTû"IOLOGICSûPRICEDûITSû

(+BNû53M   ûDEALûLASTûWEEKûATûTHEû

TOPûENDûOFûTHEûRANGE

ROCKY ROAD South Africa hits the road this

WEEKûTOûWOOûINVESTORSûAHEADûOFûITSûNEXTû

VENTUREûINTOûBONDûMARKETSû4HEûMEETINGSû

COMEûATûANûINTERESTINGûTIMEûAFTERûlNANCEû

MINISTERû4ITOû-BOWENIûLASTûWEEKûPAINTEDûAû

BLEAKûPICTUREûOFûTHEûCOUNTRYSûlNANCESû

PREDICTINGûAûMUCHûDEEPERûBUDGETûDElCITû

THANûHADûBEENûEXPECTEDû(ISûCOMMENTSû

could presage South Africa being stripped

OFûITSûlNALûINVESTMENT

GRADEûCREDITûRATING

CHARGING THE BATTERY Asset manager

'RESHAMû(OUSEûWILLûLISTûAûNEWûENERGYû

STORAGEûFUNDûONû!)-ûONû7EDNESDAYû

0ROCEEDSûFROMûTHEû)0/ûWHICHûAIMSûTOûRAISEû

aMûWILLûGOûTOWARDSûFUNDINGûUTILITY

scale energy storage systems, which are

essential to ensuring stability in the power

network – especially for renewable energy

such as wind and solar, which can

EXPERIENCEûHUGEûmUCTUATIONSûINûSUPPLY

SLOW PULSE Primepulse will complete its

LISTINGûONûTHEû&RANKFURTûEXCHANGEûONû

4UESDAYûnûALTHOUGHûTHEûTECHNOLOGYûFUNDû

LOOKSûSETûTOûRAISEûFARûLESSûTHANûHOPEDû

Earlier this month, it downsized the deal

TOûBETWEENûõMûANDûõMûAFTERû

initially saying it would seek to raise

õMû0RIMEPULSEûHASûINVESTEDûINû

SOFTWAREûCOMPANYû#ANCOMû3TEMMERû

)MAGINGûANDûLAWNMOWERûMANUFACTURERû!L

+O

DATA BANKû#ITIGROUPû).'ûANDû.ATIXISûHITû

THEûMARKETûTHISûWEEKûWITHûAû53Mû

credit facility that will back Digital Realty

ANDû"ROOKlELDû!SSETû-ANAGEMENTSû

53BNûPURCHASEûOFû"RAZILIANûDATAûCENTREû

PROVIDERû!SCENTYû4HEûLOANSûCOMPRISEûAû

53MûSENIORûSECUREDûlRST

LIENûREVOLVINGû

CREDITûFACILITYûAû53MûSENIORûSECUREDû

lRST

LIENûTERMûLOANûANDûAû53MûSENIORû

SECUREDûlRST

LIENûDELAYEDûDRAWûTERMûLOANû

IT’S MINE... ALL MINE!û)NDONESIANû

ALUMINIUMûPRODUCERû)NALUMûISûMARKETINGû

Aû53ûDOLLARûBONDûDEALû4HEûSTATE

OWNEDû

MINERûAGREEDûTOûBUYûAûMAJORITYûSTAKEûINûTHEû

WORLDSûSECOND

BIGGESTûCOPPERûMINEû

lNALLYûSETTLINGûAûDISPUTEûTHATûHASûBEENû

RUNNINGûFORûYEARSû.OWûITûJUSTûNEEDSûTHEû

MONEYûTOûlNANCEûTHEûTRANSACTION

OPEN SURGERY Surgical implant maker

!XONICSû-ODULATIONû4ECHNOLOGIESûISû

LOOKINGûTOûRAISEûJUSTûOVERû53MûFROMû

ITSû)0/ûONû4UESDAYû4HEûDEALûFROMûTHEû

VENTUREûCAPITAL

BACKEDûlRMûHOPESûTOûTAPû

into momentum for medical device

LISTINGSûAFTERû3)

"ONESûSTRONGûDEBUTûEARLIERû

THISûMONTHû0ROCEEDSûFROMûTHEûLISTINGûWILLû

fund the commercial launch of a

potentially disruptive treatment for

URINARYûTRACTûDISORDERS

“We remain concerned about DB’s inability to turnaround

&)## ûEQUITIESûASûWELLûASûTRANSACTIONûBANKINGûREVENUESv

JP MORGAN ANALYST KIAN ABOUHOSSEIN ON DEUTSCHE BANK, P

LAST WEEK IN NUMBERS

4,000 – Attendees at controversial ’Davos

in the Desert’ conference, despite

widespread boycott

€8.41 – Record intraday low for Deutsche

"ANKûFOLLOWINGûITSûWORSTûTHIRD

QUARTERû

numbers in years

US$25bn – Equities trading revenues at

BIGûlVEû53ûBANKSûINûTHEûTHIRDûQUARTERûASû

revenue soars