Last year, Grupo Bimbo’s debut hybrid transaction marked a milestone not just for the company but the broader Mexican corporate bond market, where primary market activity for hybrid securities has traditionally been dominated by select financial sector issuers.
One of the biggest M&A deals in recent emerging market history, the Suzano-Fibria merger, saw a correspondingly complex and impressive financing scheme that involved a USD9bn syndication, split between a bridge loan and pre-export financing, which culminated in a billion-dollar bond issuance. The acquisition allowed to create a pulp giant with a 17% share of the global market.
Mexico’s political environment and markets experienced unprecedented levels of volatility in 2018, but against that backdrop borrowers took to the markets to launch landmark transactions that still broke barriers and paved the way for others to follow.
The Canadian oil company navigated a challenging market backdrop to place an upsized USD350mn bond, its first in the USD market, to finance its operational investments in the Andean region, refinancing all of its outstanding 2021 notes in the process.
Leading UAE-based regional district cooling firm National Central Cooling Company PJSC – better known as Tabreed – launched its debut benchmark 7-year sukuk against the backdrop of an active deal pipeline and adverse market conditions, securing competitive pricing and an oversubscription rate of 1.5X. The funding team’s decision to prioritise speed-to-market, flexibility, and investor visibility by working with a leading global exchange like London Stock Exchange were central to the transaction’s resounding success.
The funding for the project, Lundin Gold’s sole venture in the country and its key source of revenue there, featured a one-of-a-kind structural solution that required extensive collaboration and negotiation between the financing parties and the sponsor.
Eric de Beauchamp, Senior Vice President at Credit Bank of Moscow, admits fear of additional sanctions – more so than existing measures – is weighing on the minds of investors when it comes to Russia. But shrewd management and strong communications allowed CBOM to avoid the fate of numerous large lenders that fell victim of the Central Bank’s cleanup of the sector in 2017, becoming one of the most successful private banks in the country.
With a slowdown in the bond markets following a jittery 1H2018 for EM and Latin America in particular, loans – especially in local currencies – are coming back into fashion. We speak to Helena Radzyminski, Managing Director, Loan Syndications at Natixis about the bank’s biggest deals over the past year, and strategic initiatives in the region planned for the coming year.
Omantel, Oman’s majority state-owned telecommunications company, last year completed a USD2.25bn acquisition of shares in Zain Group, a regional competitor. The deal was funded with a bridge loan that was later refinanced with a term loan and the largest corporate bond issued out of the country – a dual-tranche senior secured offering which attracted a wide group of investors from around the world, including Europe, Asia and the US. We speak with Narayanan Seshan, General Manager of the Treasury at Omantel, about this deal and other “funky” financing structures emerging in the region.
The GCC is rarely known for doing anything in half-measures, and infrastructure projects – which have grown in number and size in recent years – are no exception.
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