Dealogic - DCM StatShot

Insightful analysis of Debt Capital Markets activity and trends around the world

April 18th 2016

International EM Debt Issuance Lowest Since 2010

By Hafeeza Rahman

$120.9bn International EM issuance in 2016 YTD

International Emerging Market (EM) debt issuance totals $120.9bn (262 deals) in 2016 YTD, the lowest since 2010 YTD ($101.9bn), down 19% from the same time last year ($148.8bn) and down from the peak of $193.2bn in 2014 YTD.

The average spread to benchmark for international EM debt is 181bps in 2016 YTD, down 11bps from last YTD (192bps) and is the second lowest on record behind 1995 YTD (68bps).

20% Fall in Latin American issuance

International Latin American & Caribbean debt issuance totals $29.9bn (32 deals) in 2016 YTD, the lowest YTD volume since 2010 ($29.6bn) and is down 20% from last YTD ($37.3bn).

Latin American & Caribbean issuers account for 25% of international EM issuance in 2016 YTD, on par with the 25% share in 2015 YTD.

$15.0bn Sovereign bond expected from Argentina

The Republic of Argentina is expected to raise $15bn on Tuesday April 19. At $15bn the deal would be the largest EM debt sale on record, ahead of Petrobras’ $11.0 corporate bond sale in May 2013, and Argentina’s first sovereign bond since October 2001. The deal is expected to consist of ten year (8%), three year (6.75%), five year (7.5%), and 30 year (8.85%) tranches, and be led by bookrunners BBVA, Citi, Deutsche Bank, HSBC, JPMorgan, Santander, and UBS.

$315m Revenue lowest since 2009

International EM DCM revenue totals $315m in 2016 YTD, down 32% from last YTD ($466m) and is the slowest start to a year since 2009 YTD ($132m).

Citi tops international EM debt ranking

Citi tops the international EM debt ranking in 2016 YTD with a 10.3% market share. HSBC and JPMorgan complete the top three with 10.1% and 9.4%, respectively

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March 9th 2016

US Marketed IG Debt Issuance at Year-to-Date Record High

By Ed Jones

$290.0bn US marketed IG debt issuance in 2016 YTD

US marketed investment grade (IG) debt issuance totals $290.0bn in 2016 YTD, reaching a record high for the third consecutive YTD, and up 4% from the same period last year ($278.1bn). Volume in 2015 hit a full year record high of $1.31tr, up from $1.19tr in 2014.

$10bn+ Three jumbo deals priced so far this year

Three jumbo ($10bn+) US marketed IG bonds have been issued so far this year: Anheuser- Busch InBev rasied $46.0bn on January 13, with proceeds to support its pending $117.4bn acquisition of SABMiller, announced in October 2015; Exxon Mobil raised $12.0bn on February 29, for general corporate purposes; and Apple also raised a $12.0bn bond, on February 16, which included a $1.5bn green bond tranche. Three jumbo bonds in 2016 YTD compares with two in the same period last year, which saw a record 15 jumbo deals issued in full year 2015.

High Yield Bonds Volume down 73% year-on-year

Conversely, US marketed high yield bond issuance totals only $18.0bn in 2016 YTD, down 73% from the same period last year ($66.5bn) and the slowest start to a year since 2009 ($9.9bn). US high yield bond issuance has fallen for the last two full years, from a peak of $358.7bn in 2013, to $334.3bn in 2014 and $269.9bn in 2015.

Berkshire Hathaway raises $9.0bn this week

Berkshire Hathaway raised a combined $9.0bn in US marketed bonds this week, with Berkshire Hathaway Finance Corp raising $3.5bn to repay debt and for financing, whilst Berkshire Hathaway Inc raised $5.5bn to repay debt and for refinancing. Bookrunners on both deals were JPMorgan, Goldman Sachs, Wells Fargo Securities and Bank of America Merrill Lynch. The $9.0bn raised in one day exceeds the issuer’s previous record of raising $8.0bn via one bond in February 2010. On March 9, Berkshire Hathaway is expected to issue a €2.75bn ($3.0bn) euro-denominated bond, only the second time it has raised euro-denominated debt after its debut €3.0bn deal in March 2015.

 

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February 16th 2016

Acquisition Related Bonds Continue Record Breaking Pace in 2016

By Alix de Raucourt

$53.8bn Acquisition related bond volume led by InBev

On January 13, Belgian brewery issuer Anheuser-Busch InBev Finance ($46.0bn), priced the second largest syndicated bond on record, to finance the proposed $117.4bn acquisition of SABMiller. The deal makes up the majority of record breaking acquisition related bond volume globally so far in 2016, with $53.8bn, the highest YTD volume on record and up 36% on $39.6bn issued during the same period of 2015. Volume hit back-to-back annual record highs in 2014 and 2015, with $229.6bn and $410.7bn, respectively

Excluding the Inbev deal, however, acquisition related bonds total $7.8bn, the lowest volume since the same period in 2008 ($7.5bn). Acquisition related bond activity of 13 deals in 2016 YTD is down 63% year-on-year (35 deals in 2015 YTD)

$61.6bn Acquisition related loans up 25% in 2016

Acquisition-related loan volume of $61.6bn so far in 2016 is up 25% year-on-year, from $49.1bn in 2015 YTD, led by two $10bn+ deals. On January 11, UK issuer Shire borrowed $18.0bn via two bridge facilities to finance the pending $34.1bn acquisition of Baxalta. A $16.1bn facility from US based semiconductor company, Avago Technologies, followed on February 1, to support the $36.1bn acquisition of Broadcom

$371.6bn Global M&A volume down 14% Y-o-Y

Global M&A volume of $371.6bn in 2016 YTD is down from $430.9bn announced in the same period last year. Only three $10bn+ M&A deals have been announced so far this year ($76.1bn), compared to seven deals by this point in 2015 ($135.2bn)

Deutsche Bank tops bookrunner ranking

Deutsche Bank leads the global acquisition related bond bookrunner ranking in 2016 YTD, with $4.2bn via three deals, accounting for a 7.8% market share. Barclays and Wells Fargo follow with market shares of 7.3% and 6.1% respectively. All three bookrunners were on the Anheuser-Busch InBev Finance bond

 

 

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February 9th 2016

Yankee Bonds at Record High Share of US Marketed Volume

By Hafeeza Rahman

$126.9bn Yankee deal volume highest since 2012

Yankee bond volume of $126.9bn (57 deals) so far in 2016 is the highest since the comparable period of 2012 ($149.8bn), representing a record high 52% share of total US marketed issuance, and up from a 30% share during the same period of 2015

On January 13, Belgium issuer Anheuser-Busch InBev Finance ($46.0bn), priced the largest Yankee bond on record. The deal has contributed to the record breaking levels so far in 2016 by European issuers ($88.1bn), which account for 69% of Yankee volume

The average deal size for Yankee bonds has increased for the third consecutive year to a record high of $2.2bn so far in 2016. Even excluding the $46.0bn deal, average deal size is still a record high of $1.4bn

$65.5bn Finance leads the sector ranking

Finance leads the Yankee sector ranking by volume with $65.5bn (46 deals) in 2016 YTD, the highest total since the same period of 2012 ($73.8bn via 155 deals), and with a record high average deal size of $1.4bn. Activity from $1bn+ Finance bonds (31 deals) is the highest since 2011 YTD (39 $1bn+ deals)

InBev Three acquisition-related financing deals

Anheuser-Busch InBev Finance has priced three acquisition-related financing deals since it announced the proposed $117.4bn acquisition of SABMiller in October 2015. The $46.0bn seven-tranche Yankee bond is the second largest acquisition-related bond on record after Verizon ($49.0bn) in September 2013. On January 20, the issuer also priced the third largest acquisition-related financing bond ($1.5bn) so far in 2016

Additionally, the company signed a $75.0bn syndicated loan on October 28, 2015, also to support its pending acquisition of SABMiller, the largest syndicated loan on record

BAML Tops Yankee bond bookrunner ranking

With a bookrunner role on the highest number of deals of the year so far (25 deals), Bank of America Merrill Lynch tops the Yankee bookrunner volume ranking in 2016 YTD with 9.5% market share. Barclays and Citi complete the top three in 2016 YTD with 9.3% and 7.5%, respectively. All three bookrunners were also on the Anheuser-Busch InBev bond

 

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January 27th 2016

Global Oil & Gas Bond Issuance at Lowest Level in Eight Years

By Hafeeza Rahman

$5.0bn Global Oil and Gas volume down 53% y-o-y

Global bond issuance in the Oil & Gas sector has declined to $5.0bn in 2016 YTD, down 53% from $10.7bn in the comparable period of last year, and the slowest start to a year since 2008 ($4.4bn). Activity is also down, with nine deals priced so far this year compared to 12 deals in 2015 YTD

By this point in 2015, Petroleos Mexicanos – PEMEX had priced a $6.0bn bond, the fifth largest Oil & Gas bond globally in 2015

53% Record high market share for Chinese issuers

With $2.6bn, and five out of nine deals so far this year, Chinese issuers have gained the highest market share on record (53%). PetroChina has issued the largest bond in the sector so far this year, a $2.1bn, two-tranche deal via a consortium of seven bookrunners. The only US Oil & Gas deal issued in 2016 YTD is from EOG Resources ($1.0bn)

$209.5bn Third Year-On-Year Decline in 2015

Global Oil & Gas bond issuance totaled $209.5bn in full year 2015, down 17% from $251.1bn issued in 2014. This was the third year-on-year decline in volume following a 69% increase in issuance in 2012 ($265.1bn). Volume in the Americas and EMEA declined by 26% and 12%, respectively, while Asia Pacific issuance increased by 13% in 2015

$427.3bn Global debt volume down 19% y-o-y

Total global DCM volume stands at $427.3bn so far this year, a 19% decrease from 2015 YTD, and the lowest YTD level since 2008 ($409.9bn). Oil & Gas ranks at the eighth biggest sector so far this year, accounting for one percent of the market, compared to a 3% share and fifth place by the end of 2015

CSC Top bookrunner for Global Oil & Gas

With a bookrunner role on two deals so far, China Securities Co tops the global Oil & Gas bookrunner volume ranking in 2016 YTD. Bank of China and Barclays complete the top three. The top two bookrunners are on the PetroChina deal

 

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