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Industry roundup: 12 May

Finnair secures largest unrated EUR issue from an airline since COVID

Finnair has issued a senior unsecured bond of €400m million. The 4‑year bond matures on 19 May 2025, it carries a fixed annual interest of 4.250 per cent and has an issue price of 99.716 per cent. The issuance, which had an exceptionally strong order book distributed across high-quality European investors, will enabe Finnair to proactively refinance its due 2022 bond and secure liquidity. 

"My warmest thanks to everyone who invested in Finnair's new bond," commented Mika Stirkkinen, CFO of Finnair. "Due to your strong trust in Finnair, we were able to double its size compared to the previous one. The new bond will strengthen our cash funds and helps us to improve our debt maturity profile."

Application will be made for the bond to be admitted to trading on the official list of Nasdaq Helsinki. The proceeds of the offering will be used to fund the purchase of the existing notes due 2022 and the remaining proceeds for general corporate purposes. The final tender offer results will be announced as soon as practicable after the expiry of the offer period.

Danske Bank and Nordea Bank acted as coordinators and bookrunners for the issue of the bond and OP Corporate Bank and Skandinaviska Enskilda Banken (SEB) acted as bookrunners in relation to the issue of the bond. 

A concurrent tender offer and a successful roadshow secured robust demand and convinced investors of Finnair’s strengths and improved outlook. The successful new issue is the largest unrated EUR issue from an airline since the onset of the COVID-19 pandemic, and is the largest ever unrated EUR High Yield bond from the Nordics.

 

ICD growth shows strength in money market funds

The average daily balance (ADB) on ICD Portal, an independent portal for money market funds and other short-term investments, grew 30% year-over-year ending 31 December 2020, outpacing the market’s 23% increase in institutional money market fund assets tracked over the same period by the Investment Company Institute (ICI). ICD’s growth remained steady in the first quarter of 2021 with ADB at roughly US$200bn.

"Money market funds are critical instruments for treasury organisations looking to keep cash safe and liquid - top priorities in a year rocked by a global pandemic," said Tory Hazard, CEO of ICD. "We’ve also seen growth in alternative investments as some investors are more comfortable going further out on the curve to gain a little more yield in this low interest-rate environment."

Trade volume on ICD Portal increased 37% year-over-year in the first quarter of 2021. ICD services over US$5 trillion in money market fund trading annually, bringing together corporate institutional investors and the fund companies that offer money market products and other short-term investments. 

With over 400 treasury organisations, across 65 industries and 43 countries, ICD saw an 11% jump in new clients in 2020. New clients were evenly gained through ICD’s US and UK-based entities.

 

EQT selects Hazeltree to modernise treasury infrastructure

Hazeltree, a provider of integrated treasury management and portfolio finance solutions for investment managers, has announced that private equity and real estate asset manager EQT has selected Hazeltree’s technology for treasury, cash and debt management.  

Built in collaboration with industry participants, Hazeltree Private Markets aims to increase operational efficiencies and controls by centralising all capital activity into an integrated treasury management framework - from cash balance and credit facility monitoring to cash movements and credit line drawdowns and repayments.

"Over the past 25 years, EQT has experienced a substantial growth trajectory with assets under management now reaching €67bn across 26 active funds and with 975 employees in offices spread over 24 countries," said Tom Spicer, Fund Operations Director and EQT’s project lead. "To scale our treasury management - consistently and optimally - requires taking advantage of leading-edge, PE-specific technology from Hazeltree. We are looking forward to the operational efficiencies and increased controls that Hazeltree offers."

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