Huawei plans to raise $2bn debt

Chinese telecom company Huawei Technologies Co. is planning to raise a $2bn through a USD-denominated bond maturing in 2026.

The company is still in discussions with banks on the terms of the issuance and the size of the deal.

Banks likely to manage the bond issue include DBS Bank, ANZ Banking Group, Standard Chartered and Bank of China.

According to bankers, it appears that the deal could be completed as early as  April 2016.

Previously, the company had issued a $1bn USD bond last year, which was oversubscribed.

Source: WSJ





Iberdrola closes €1bn green bond issuance

Spanish utility company Iberdrola S.A. closed an issuance of €1bn in green bonds priced at 99.943% of their nominal value. Proceeds would be utilized to refinance its onshore wind park assets in Spain, Portugal and the UK.

Green bonds are issued to fund projects that have positive environmental and/or climate benefits.

The notes pay an annual coupon rate of 1.125% and mature on 21 April 2026.

Lenders to the notes are as follows:

  • Banca IMI SPA
  • Banco de Sabadell SA
  • BNP Paribas
  • Caixabank SA
  • Citigroup Global Markets Ltd
  • HSBC Bank Plc
  • Merrill Lynch International
  • Mizuho International Plc
  • The Royal Bank of Scotland Plc

Source: SeeNews


Western Digital plans proposed $5.2bn bond issuance to finance deal

U.S-based computer hardware manufacturer Western Digital Corp. announced its planned issuance of $5.2bn worth of bonds. Proceeds from the issuance would primarily be utilized for the acquisition of SanDisk Corp., strengthen the company’s balance sheet and repay debt.

The company intends to offer $1.875bn senior secured notes due 2023 paying 7.375 % and $3.35bn unsecured senior notes due 2024 paying a coupon of 10.50%.

The offer is likely to close around 13 April 2016, subject to certain customary conditions.

The proposed merger between the two companies moved a step ahead after more than 90% shareholders of both the companies voted in favor of the deal on 15 March 2016.

According to Bloomberg, Western Digital had asked lenders this week for a proposed $18bn leveraged loan issuance to finance its acquisition of SanDisk, with banks showing interest.

Source: Nasdaq

Argentina returns to the capital markets with a $15bn bond issue

Argentina is finalizing it’s return to capital markets with a proposed $15bn bond issuance, the largest by a developing nation since Mexico’s $20bn issue in 1996.

Proceeds would be firstly be utilized towards paying certain creditors in relation to its default on debt in 2001, with further issuances to focus on fiscal spending and towards boosting reserves.

However, investors are speculating on the interest rate that would be offered on the debt, considering the nation’s history of defaults over the last 200 years.

The issuance would be contingent upon approval from the congress and would commence next month, according to Finance Secretary Luis Caputo.

The proposal comes on the backdrop of Argentina’s $4.6bn settlement agreement with certain creditors in relation the nation’s default on debt in 2001. Certain creditors, including Paul Singer’s Elliot Management, refused to restructure the nation’s debt when it defaulted during 2001.

Talks with HSBC, Citi and JP Morgan have begun in London to arrange the sale.

Source: FT