IFR Magazine - October 27, 2018

(Frankie) #1

AMP plans sub-notes


after share bloodbath
„ Bonds Stock plunge overshadows Tier 2 roadshow

BY JOHN WEAVERS

3CANDAL
HITûlNANCIALûGROUPûAMP
COULDûHARDLYûHAVEûPICKEDûAû
WORSEûDAYûTOûANNOUNCEûANû
!SIANûANDû!USTRALIANûROADSHOWû
FORûAûPOTENTIALû!USTRALIANû
DOLLAR
DENOMINATEDû
YEARû
NON
CALLûlVEûSUBORDINATEDûNOTEû
OFFERING
,ASTû4HURSDAYSûMANDATE û
AWARDEDûTOûANZ ûCBA ûNAB and
UBS ûCOINCIDEDûWITHûAûû
PLUNGEûINûTHEû
YEAR
OLDû
COMPANYSûSHAREûPRICEûAFTERûITû
REVEALEDûINVESTORSûHADûSHIFTEDû
!BNû53BN ûOUTûOFûITSû
WEALTHûMANAGEMENTûBUSINESSû
INûTHEûTHREEûMONTHSûTOû
3EPTEMBERû
4HEûLATESTûDECLINE ûFOLLOWINGû
!MûOFûWITHDRAWALSûINûTHEû
SECONDûQUARTER ûTOOKûTHEû
DIVISIONSûTOTALûASSETSûUNDERû
MANAGEMENTûDOWNûTOû
!BN ûWITHûMOREûCLIENTû
EXITSûINûTHEûPIPELINE
!NGLICANû.ATIONALû3UPERûSAIDû
ITûWILLûMOVEûITSû!Mû
PENSIONûFUNDûTOûPASTURESûNEW û
WHILEû!USTRALIAû0OSTûHASû
DROPPEDû!-0ûASûITSûDEFAULTû
MANAGER
)NVESTORSûWEREûALSOûALARMEDû
BYû!-0SûANNOUNCEMENTûTHATû
ITûWOULDûSELLûITSûLIFEûINSURANCEû
ANDûWEALTHûPROTECTIONûBUSINESSû
TOû"RITISHû2ESOLUTIONû,IFEûFORû
!BN ûWHICHûISûALMOSTûAû
lFTHûBELOWûBOOKûVALUE
4HEûCOMPANYûALSOûPLANSûTOû
DIVESTûITSû.EWû:EALANDûWEALTHû
MANAGEMENTûANDûADVICEû
BUSINESSûTHROUGHûANû)0/ûINû
ûTOûRELEASEûCAPITALûTOûTHEû
GROUP

BIGGEST CASUALTY
!-0 ûWHICHûPROVIDESû
SUPERANNUATIONûANDû
INVESTMENTûPRODUCTS û
INSURANCE ûlNANCIALûADVICEû
ANDûBANKINGûPRODUCTSûINû
!USTRALIAûANDû.EWû:EALAND ûISû
PERHAPSûTHEûBIGGESTûCASUALTYû
OFûTHEûWIDESPREADûHOME
GROWNûSCANDALSûTHATûHAVEû
RAVAGEDûITSûPREVIOUSLYûPOSITIVEû
REPUTATION

)Nû!PRILûCHIEFûEXECUTIVEû
#RAIGû-ELLERûANDûCHAIRMANû
#ATHERINEû"RENNERûRESIGNEDû
AFTERû!-0ûEXECUTIVESûADMITTEDû
INûTESTIMONYûTHATûTHEûCOMPANYû
HADûLIEDûTOûTHEûCORPORATEû
WATCHDOGûFORûALMOSTûAûDECADEû
TOûCOVERûAûPRACTICEûOFûCHARGINGû
CUSTOMERSûFORûSERVICESûITûDIDû
NOTûPROVIDE
30ûSUBSEQUENTLYûPLACEDû
!-0ûONûCREDITûWATCHûNEGATIVEû
ASûITûASSESSESûTHEûREPUTATIONALû
DAMAGEûTOû!-0SûBRAND ûWHILEû
-OODYSûDECLAREDûh!-0û
GOVERNANCEûFAILURESûALLEGEDûATû
THEû2OYALû#OMMISSIONûINTOûTHEû
lNANCIALûSECTORûAREûPUTTINGû
ADDITIONALûPRESSUREûONûITSû
RATINGv
)Nû*UNE ûINVESTORSûAPPEAREDû
TOûPUSHûBACKûONû!-0û'ROUPSû
DEBUTû3WISSûBONDûOFFERING ûAû
3&RMû53M ûû
YEARûNOTEûWHICHûPRICEDûBPû
WIDEûOFûMID
SWAPS ûWELLû
OUTSIDEûINITIALûBP
BPû
SOUNDINGS
)Nû3EPTEMBER û!-0û"ANKû
SOLDûAû!MûTHREE
YEARû
mOATING
RATEûNOTEûWHICHû
PAIDûAûPREMIUMûFORûPARENTû
!-0û'ROUPSûPROMINENTûROLEû
INû!USTRALIASûlNANCIALû
SCANDALS
!-0ûMAYûHAVEûLITTLEûCHOICEû
BUTûTOûPROCEEDûWITHûTHEû
UPCOMINGûROADSHOWûGIVENûTHATû
ITSûOUTSTANDINGû!Mû4IERûû
NOTEûISûEXPECTEDûTOûBEûCALLEDûONû
$ECEMBERû
4HEû
YEARûNON
CALLûlVEû
!-0û.OTESû ûRATEDû""" û30 û
WEREûISSUEDûINû$ECEMBERûû
ANDûPAYûAûCOUPONûOFûBPû
OVERû
DAYû""37
/Nû!UGUSTûûTHISûYEAR û
3UNCORPû'ROUPûSOLDûAû!Mû

YEARûNON
CALLû
YEARû
4IERûûNOTE ûRATEDû""" !nû
30&ITCH ûINû!USTRALIASû
WHOLESALEûMARKETûATûTHREE
MONTHû""37ûPLUSûBP
!-0SûINVESTORûMEETINGSû
BEGINûINû(ONGû+ONGûONû
/CTOBERûûANDûCONTINUEûINû
3INGAPORE û-ELBOURNEûANDû
3YDNEYûOVERûTHEûNEXTûTHREEû

DAYS (^) „
FINAL STRAW
3OûFAR ûBANKSûHAVEûPROVIDEDû
MUCHûOFûTHEûCAPITALûTHATûHASû
GONEûINTOûTHEûPROJECTSûnûEITHERû
THROUGHûDIRECTLYûLENDINGûTOûTHEû
KINGDOMûORû0)& ûORûBYû
UNDERWRITINGûBONDûDEALSû
"ANKSûHAVEûBEENûKEENûTOûSHOWû
THEIRûCOMMITMENT ûOPTIMISTICû
that a huge stream of fees
LINKEDûTOû6ISIONûûAREûONû
THEûHORIZON
"UTûDEALMAKINGûHASûBEENûFARû
LESSûLUCRATIVEûTHANûMANYû
HOPEDûFEESûAREûJUSTû53Mû
SOûFARûTHISûYEAR ûCOMPAREDûWITHû
53MûATûTHEûPEAKûINûû
4HEûCONCERNûATûTHEû&))ûLASTûWEEKû
WASûTHATûTHEûMURDERûOFû
+HASHOGGIûMAYûBEûTHEûlNALû
STRAWûFORûSOMEû'ROWINGû
REPUTATIONALûRISKS ûTHEûTHREATûOFû
SANCTIONSûAGAINSTû3AUDIûANDû
DISAPPOINTMENTûONûFEESûCOULDû
LEADûTOûSOMEûPULLINGûOUT
h!ûLOTûOFûTHEûBANKSûHAVEûBEENû
FRUSTRATEDûBYûTHEûPACEûOFûCHANGEû
nûANDûTHEûFACTûTHATûMANYûSTILLû
ARENTûEARNINGûENOUGHûMONEYûTOû
COVERûTHEûHUGEûINVESTMENTûOFû
RESOURCESûTHEYûHAVEûMADEûHERE vû
SAIDûONEûlNANCIALûCONSULTANTû
WITHûMANYûYEARSûOFûEXPERIENCEû
DEALINGûWITHû3AUDIû!RABIA
h-ANYûHAVEûALREADYûSTARTEDû
TOûTHINKûTWICEûABOUTûTHEIRû
COMMITMENTSûTOûTHEû
KINGDOM ûANDûTHEûWORRYûISû
THATûTHEûEVENTSûOFûTHEûPASTûFEWû
WEEKSûWILLûACCELERATEûTHISû
PROCESSû)ûFEARûWEûMAYûSOONû
STARTûTOûSEEûSOMEûOFûTHEûBANKSû
PULLINGûOUTûOFûTHEûCOUNTRYûTOû
FOCUSûONûBETTERûPAID ûLESSû
CONTROVERSIALûWORKû
ELSEWHEREv
7ITHOUTûTHEûSUPPORTûOFû
FOREIGNûBANKS ûTHEû3AUDIû
GOVERNMENTûWILLûlNDûITûHARDûTOû
FUNDû6ISIONûû)TûISûALREADYû
BORROWINGûHEAVILYûTOûlLLûAû
BUDGETûHOLEû7ITHûGOVERNMENTû
SPENDINGûnûNOTûINCLUDINGûWHATû
THEû0)&ûISûSPENDINGûnûGROWINGûATû
ûAûYEAR ûFOREIGNûCAPITALûWILLû
BEûESSENTIALûTOûlNANCINGûTHESEû
PROJECTS
&ORûTHEûMOMENT ûBANKSûAREûnû
DISCREETLYûnûSHOWINGûTHEIRû
SUPPORTûFORûTHEûKINGDOMû!LLûTHEû
MAJORûBANKSûSENTûDELEGATIONSûTOû
THEûCONFERENCE ûDESPITEûAû
BOYCOTTûBYûMOSTûC
SUITEû
EXECUTIVESû"UTûTHATûISûEASYû
7HATûWILLûBEûMUCHûHARDERûWILLû
BEûUNDERWRITINGûLARGEûDEALSû
UNDERûTHEûPUBLICûANDûPOLITICALû
SPOTLIGHTû„
MANDATEDûONûFUNDûRAISING û
ALTHOUGHû0û-ORGANûISûADVISING
3OMEûATûTHEûCONFERENCEû
BELIEVEûTHEûBOYCOTTûCOULDûHURTû
BANKSûh)ûTHINKû
0û-ORGANûHASû
MADEûAûMISTAKE vûSAIDûONEû
PERSONûCURRENTLYûWORKINGûONûAû
MULTI
BILLIONûDOLLARûPROJECTûWITHû
THEû3AUDIûGOVERNMENTûh4HISû
REGIONûISûFULLûOFûBIGûEGOSûTHATû
WILLûREMEMBERûANYûSLIGHTS û
3AUDIûESPECIALLYv
(3"# ûINûSENDINGûAûLARGERû
DELEGATION ûISûRECOGNISINGûTHEû
IMPORTANCEûOFû3AUDIûTOûITSû
BUSINESSûMODELû4HEû5+ûBANKû
HASûAMASSEDû53BNûINûPROlTSû
INû3AUDIû!RABIAûSINCEû û
ACCORDINGûTOû2ElNITIVûDATA û
WHICHûINCLUDESû53BNû
BOOKEDûTHROUGHû3!"" ûAûLOCALû
SUBSIDIARYûTHATûWASûFORMEDûINû

/THERûBANKSûAREûALSOûLISTEDûASû
HAVINGûSMALLûDELEGATIONSû
"ARCLAYSûHASûJUSTûTWOûBANKERSûONû
THEûATTENDEEûLIST û5"3ûTHREEûANDû
".0û0ARIBASûFOURû5NI#REDITûISû
ONEûOFûTHEûFEWûlRMSûNOTûTOûSENDû
ANYûDELEGATES
3TILL ûITûISûUNCLEARûHOWû
DElNITIVEûTHEûATTENDEEûLISTûISû
)&2ûSPOTTEDûSOMEûSENIORû
BANKERSûONûAûmIGHTûFROMû
,ONDONûTOû2IYADHûTHEûDAYû
BEFOREûTHEûCONFERENCEûBEGANû
WHOûAREûNOTûLISTEDûASûATTENDEESû
ATûTHEûTHREE
DAYûEVENT ûNORûHAVEû
THEYûBEENûSEENûATûTHEû
CONFERENCE
)NDEED ûAPARTûFROMû(3"# ûALLû
BANKSûAREûKEEPINGûANûULTRA
LOWû
PROlLEû-ANYûBANKERSûAREû
STICKINGûTOûPRIVATEûMEETINGû
ROOMSûAWAYûFROMûTHEûMEDIAû
/THERSûAREûINû2IYADHûFORû
MEETINGSûBUTûSTAYINGûAWAYû
FROMûTHEûCONFERENCEûITSELF û
ACCORDINGûTOûSEVERALûPEOPLEûATû
THEûEVENT (^) „
“This region is full
of big egos that will
remember any slights,
Saudi especially”
For daily news stories
@ visit http://www.ifre.com

Free download pdf