We are very proud to announce mtn-i’s 2017 MTN, Private Placement and Structured Debt Awards! This year’s recognitions, which include two important new award categories, reflect a deeper, more ambitious search than ever before for innovative issuer and investor solutions, as well as the evolution of dealers’ business models and the increasing impact of new technology.
With dealers moving away from old flow models to focus on opportunities best matched to their competitive edges, we introduce our ‘Power Performer’awards to recognise these efforts. Similarly, our new ‘Market Future’ awards embrace technology’s role in developing these markets.
A record 32 institutions pitched for mtn-i awards this year, putting forward hundreds of ideas. We weighed these inputs against our data, analysis and daily coverage of these markets.
The resulting decisions announced today highlight what we believe were the year’s most significant deals and performances. They provide a definitive illustration of private debt markets’ value and of the key forces shaping them in 2017 and beyond – including the boom in corporate origination(and fall-off in FIG offerings, notwithstanding the ramp-up in senior non-preferred), the trend for hybrid public/private market execution and the return of inflation structures.
They also celebrate the longer-term revolutions represented by cross-market debt repackaging, blockchain execution and the rise of green/SRI markets.
Overall private debt volumes fell this year as buoyant public markets and the ECB proved more attractive sources of FIG funding. Nonetheless, the product and borrower palette continues to expand.
Most notably, it was a bumper year for corporate access to private debt demand in all formats – particularly investor appetite for new credits, as well as the Schuldschein market’s surging growth and internationalisation.
Corporates dominate our Rising Star and Deal of the Year recognitions and even feature among our new Market Future awards, which herald Daimler’s groundbreaking use of blockchain. The strength of demand for unrated and triple B names is evident in landmark transactions for names such as Dyson, KION Group and Mohawk Industries, and underpins the strategic execution of Rising Star issuers Aroundtown and Hitachi Capital.
Moreover, notable sales for Caruna, Elenia and Ford made RBC our Rising Star corporate dealer.
Corporate transactions also figure significantly among our first set of Power Performers. Goldman Sachs’ striking push into non-core currencies, for example, included green and conventional debt in Norwegian kroner for Alperia and Aroundtown, as well as 30-year Swedish kronor for SNCF Reseau.
NatWest helped drive the triple-B trend with notable deals for Ellevio, Infra Park and WPP.
Barclays too boasted corporate deals for Telefonica and GB Social Housing (including modified Dutch auctions) among its stand-out initiative in taps. This also formed part of the firm’s powerful push in emerging market currencies.
Another of the year’s key themes, inflation structures, was prominent in our Power Performers’ stories – again, especially for corporate issuers. While the reviving asset class’s standout deal was inevitably Ireland’s debut via a EUR600m-plus domestic HICPx-linker, linker landmarks formed notable elements of both of Barclays and NatWest’s performances.
The former placed over EUR400m of 30-year Eurozone HICPx-linkers for SNCF Reseau. The latter spearheaded UK institutions’ shift from into CPI-linkers from the traditional RPI benchmark with sales for Affinity Water and United Utilities.
In addition, Lloyds married inflation uniquely with green amortising debt in its Deal of the Year with RBC for Tideway and buyer M&G, while a 15-year French HICPx-linker for APRR was part of Natixis’s Investor Solution award for long-dated Euro origination and distribution.
This year’s USD5bn-equivalent take-off in senior non-preferred is another of the year’s key themes captured by our Power Performers. Banco Santander accounts for more than half of non-syndicated sales of the bail-in product, with new issues in five currencies. The Spanish megabank’s own dealer leads as many as 16 firms to have placed the product privately for it (who also include Goldman opening the Norwegian SNP sector).
Senior non-preferred’s unexpected private debut in the backwater of Romanian leu is also recognised in our Deals of the Year.
In the past a clutch of banks maintained a full-service, ‘king of all markets’ approach to MTNs. Few now have maintained the resource commitment to lead key markets across the globe – a performance that again wins Citigroup our MTN Dealer of the Year award.
Similarly, HSBC leveraged the power and breadth of its global franchise to pull off an extraordinary number of private placement origination coups. Accordingly, it is again our Private Placement Dealer of the Year.
Among issuers, while many new names burned bright one name’s commitment to a truly global strategy for long-term access to the best priced markets triumphed – generating a powerful pick-up in its volumes even as overall flows fell, thanks to its rare ability to navigate both the Japanese and US retail markets. SEK is our Issuer of the Year.
Its leadership in green and SRI financing is much lauded. But our Editor’s Award recognises Credit Agricole‘s commitment to embedding the values of these markets throughout its business. Even defining the deals it will no longer do if they contravene these and playing a leading role in producing the Green principles which will secure the fast growing market’s future credibility.
Our award also highlights capital markets’ growing investment in making our world a better place – a remarkable statement to be able to make a decade on from the global financial crisis.