Strongest Week for UK Investment Grade Debt since January
Bolstered by two multi-billion dollar offerings from GlaxoSmithKline and BP Capital Markets, the volume of investment grade corporate debt from companies based in the United Kingdom totals $82.3 billion for year-to-date 2012, a decline of 7% compared to the year ago period. Weekly issuance surpassed $10 billion for the first time since January 10th, when SABMiller Holdings raised nearly $7 billion.
Companies in the financials, energy & power and materials sectors account for 88% of year-to-date investment grade corporate debt issuance in the UK this year. Barclays leads the underwriting rankings so far this year, with 15.6% of the market, followed by HSBC with 10.8%.
Banks Push China Follow-Ons up 42% over 2011
A flurry of stake sales from investors in Chinese banks has pushed year-to-date issuance of follow-ons in China to $15.9 billion for year-to-date 2012, an increase of 42% compared to last year at this time. Banks and brokerages account for 53.2% of year-to-date activity, compared to just 3.4% during year-to-date 2011. This week, Singapore sovereign wealth fund, Temasek Holdings, reduced stakes in China Construction Bank and Bank of China, raising a combined $2.4 billion. Bank of America Merrill Lynch and Morgan Stanley led both offerings.
Year-to-date, Goldman Sachs leads all underwriters for follow-on offerings in China, having sold a $2.8 billion stake in ICBC to Temasek in April.
Divestment Activity in the U.S. Up 28%
The $21.5 billion spinoff of ConocoPhillips' refinery business, effective on May 1st, brings the value of divestments and spinoffs in the United States to $109.8 billion, an increase of 28% compared to year-to-date 2011. Worldwide divestment activity totals $261.8 billion, a decline of 17% compared to a year ago, but accounts for 37% of overall M&A activity, up from one-third at this time last year.
Spinoffs and divestitures in the energy & power, materials and real estate sectors account for 50% of year-to-date activity. JP Morgan, an advisor to ConocoPhillips along with Credit Suisse, leads year-to-date financial advisors in this category with 45 deals valued at $62.6 billion.
Please click below for this week’s Investment Banking Scorecard :