January 11, 2019 | Cbonds
The USA tightened its monetary policy, the FRS raised the target rate for federal funds 4 times during the year and the upper limit of the target corridor was increased from 1.5% to 2.5%. This resulted in higher yields on all dollar capital markets and individual countries, such as Turkey and Argentina, experienced a financial shock that affected their domestic financial markets and economies. These periods of tension led to a decrease in the number of placements or to a postponement of placements to a later date.
In 2018 the sovereign issuers placed Eurobonds in the amount of USD 177 billion. A year earlier, as per the rankings of Eurobond and bond issuers for 2017 , the number of new placements amounted to USD 221 billion. Thus, the number of new placements decreased by USD 44 billion during the year. The Kingdom of Saudi Arabia took the first place. The Kingdom placed 4 Eurobonds in the amount of USD 13 billion. It was followed by Qatar, which placed 3 issues in the amount of USD 12 billion. Argentina took the third place. The country borrowed USD 11.7 billion by selling 11 bonds.Top 5 sovereign international bond issuers
Non-financial institutions sold bonds in the amount of USD 1,831 billion, which is significantly lower than in 2017. The non-financial sector raised USD 2,117 billion that year. Almost all of the five leaders were replaced. In 2017, the ranking included Verizon Communications, AT&T Inc, Apple, British American Tobacco and Petrobras, which in total borrowed USD 175 billion, making 8.2% of all placements. In 2018, the top five were: a retail pharmacy company CVS Health (USD 40 billion), a telecommunication giant AT&T Inc (USD 34.8 billion), a construction enterprise China Railway Construction Corporation (USD 31 billion),a telecommunications conglomerate Comcast (USD 30 billion), a drink holding AB InBev (USD 29.5 billion). The total number of placements of the “Big Five” amounted to USD 165 billion or 9% of the total market for new placements of non-financial institutions.Top 5 worldwide non-financial sector issuers
Same as with non-financial and sovereign issuers, there was a decrease in debt financing in the financial sector. The financial companies raised USD 2,264 billion during the last year, that is USD 226 billion less than the results of 2017. The five largest issuers in 2018 included the following financial institutions: European Investment Bank (USD 67 billion), Deutsche Bank (USD 46 billion), Landesbank Hessen-Thueringen (USD 45.7 billion), Bank of America Corporation (USD 36 billion) and the European Financial Stability Facility (USD 33.6 billion). Their loans amounted to USD 228 billion in total or 10% of the global market.Top 5 worldwide financial sector issuers
The non-financial institutions from the emerging markets decreased their new Eurobond placements by USD 37 billion, from USD 307 billion to USD 270 billion. The five largest issuers were Pemex, Petrobras, Teva Pharmaceutical Industries, China National Chemical Corporation and Sands China. Together they sold the bonds in the amount of USD 55.4 billion, making 20% share of new placements.Top 5 EM international bond non-financial sector issuers
The financial sector issuers from the emerging markets borrowed USD 189 billion from the Eurobond market, that is 25% less than in 2017, when they managed to borrow USD 251 billion. The first five places went to: Asian Development Bank, African Development Bank, Qatar National Bank, Bank of China (Hong Kong), Itau Unibanco Nassau Branch, which placed Eurobonds at USD 38 billion in total or provided 20% of the market for new placements.Top 5 EM international bond financial sector issuers
The total number of Eurobond placements in the CIS countries amounted to USD 25 billion, which is 44% less than the result of 2017. In 2017, the placements amounted to USD 44.9 billion. In 2018, the largest issuers of Eurobonds were Russia (USD 5 billion), Gazprom (USD 3.4 billion), KazMunayGas (USD 3.25 billion), Ukraine (USD 2 billion) and Mikro Kapital (USD 1.5 billion).Top 5 CIS international bond issuers
The total volume of the market of corporate and municipal issuers of Green Bonds amounted to USD 46 billion. The European Investment Bank took the first place. The Bank sold 10 issues in the amount of USD 6.1 billion. The second place went to Nederlandse Waterschapsbank with 5 issues in the amount of USD 4 billion in total. KFW took the third place (3 issues in the amount of USD 1.9 billion), while the fourth and fifth places went to Enel and the African Development Bank (each placed one issue in the amount of USD 1.49 billion and USD 1.47 billion, respectively.Top 5 corporate and municipal green bond issuers)
In June 2018, Cbonds changed the classification of the central bank sector. Earlier they were designated as the corporate sector, industrial banks. Now they are classified as issuers of the sovereign sector. This change has affected the formation and size of the market of financial and sovereign issuers. The issuer rankings take into account Plain Vanilla Bonds issued by the governments, companies and banks. Bonds with a maturity of less than 365 days, CDO, securitization and structural products are excluded from the calculations. The US dollar is the currency of the rankings. All issues in other currencies were converted into US dollars at the time of the bond placement.
Disclaimer: The information contained in this press statement and issuers’ league table does not constitute investment advice in any form and Cbonds does not act as an investment adviser.
Company: Cbonds Group
|Full company name||Cbonds Ltd|
|Country of risk||Russia|
|Industry||Information and High Technologies|