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By better supporting clients with both short and long term funding needs across the corporate, financial and public sector client segments, HSBC has been instrumental in re-generating the European debt capital markets (DCM) during the current environment. This reflects the strength of our client relationships, our expertise in DCM and HSBC’s global scale, and the work done to ensure operationally we can continue to support our clients, including remote and split site working.

Adam Bothamley, Global Co-Head of DCM, HSBC, commented: “We’re seeing an unprecedented level of volatility in global financial markets driven by the COVID-19 outbreak, with the effect compounded by a sudden shift in OPEC policy and the logistical challenges of market participants working outside the office. Alongside the impact on their businesses and the broader economy, these conditions mean that our clients, across all sectors and geographies, are very focused on best managing their funding and liquidity requirements.”

HSBC has also responded by leveraging its Capital Markets teams, Relationship Bankers and Global Markets teams around the world, giving clients greater visibility on global investor flows and spotting market windows for our clients to access.

Sean McNelis, Global Co-Head of DCM, HSBC added; “Recent sessions have required considerable agility, with tight windows to execute deals and multiple market dynamics to consider, including the ongoing responses of governments and central banks to COVID-19. In that regard, we have been able to deliver clients a unique perspective given the depth and strength of our global platform and our ability to move at pace.”

“We’ve also developed new ways to help clients get access to the right investors by replacing physical meetings with telephonic or, increasingly, web-based virtual meetings which have proved very effective in helping issuer clients stay connected with their investors.”

The outcome of these changes has seen HSBC active on *40 tranches of European corporate bonds since early April, helping to re-launch the SSA market in both EUR and USD, and FIG markets with the first covered bond and Yankee trades. This enabled HSBC to continue to support our clients in executing their business plans and requirements despite the ongoing market uncertainty and volatility; reflected in the Bloomberg league tables where we are ranked number one by volume of new issues in the European bond market since the onset of volatility. (with a market share of 9 per cent).

Deals of note include:

Corporates:

Danone: After the first period of volatility, HSBC supported Danone in re-launching the EUR corporate market, who printed an EUR800m 7-year transaction. Books climbed to north of EUR1 billion after just 25 minutes of bookbuild, and eventually saw final books in excess of EUR5.8 billion.

Engie: HSBC were active in the EUR corporate market with a triple-tranche deal for Engie, which also included Green bond tranches.

ADP (Aéroports de Paris): A first true test of the market from a higher beta issuer in a sector directly hit by the virus headlines. Supported by HSBC, ADP secured a strong orderbook at >EUR13.5 billion and more than five times oversubscribed.

SSAs:
Kingdom of Spain: The sovereign EUR space saw one of the Kingdom of Spain’s largest ever syndications, raising USD10 billion to help the economy and fight COVID-19. HSBC were also joint bookrunner on a sovereign bond for Sweden that raised USD2 billion and supported Slovenia with another for EUR1.1 billion.

(*Numbers correct on 7 April 2020).

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