Reuters
Reuters

MILAN (Reuters Breakingviews) – Breaking up UniCredit could hand its shareholders a 3 billion euro reward. Chief Executive Jean Pierre Mustier is accelerating plans to separate the 16 billion euro bank’s Italian assets from its Germany-centred foreign business, Reuters reports. A spinoff could boost the stock by up to 20%. In a deal with Commerzbank or BNP Paribas, the returns could be even higher.     

Even after a deep clean since Mustier became CEO in 2016, UniCredit’s stock is languishing. At 28% of its tangible book value, Italy’s second largest bank is valued only a little more highly than weaker, smaller domestic rivals like Banco BPM and Banca Monte dei Paschi di Siena. Investors unfairly penalise UniCredit for its Milan base even though it made some 60% of revenue abroad last year. Its Italian exposure also deters foreign suitors and pushes up funding costs.  

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By Aftab Ahmed and Manoj Kumar

NEW DELHI, Oct 12 (Reuters)India on Monday announced steps to stimulate consumer demand, including advance payment of a part of the wages of federal government employees during the festival season and more capital spending as it tries to bolster the pandemic-hit economy.

The government will allow its employees to spend tax-exempt travel allowances on goods and services, Nirmala Sitharaman, India’s finance minister told a news briefing.

She said the government will also shore up investment by spending extra 250 billion rupees ($3.41 billion)on roads, ports and defence projects, and offering 120 billion rupees in interest-free 50-year loans to state governments for spending on infrastructure before March 31,2021.

“All these measures are likely to create an additional demand of 730 billion rupees ($9.96 billion),” Sitharaman said, adding the proposals would stimulate demand in a “fiscally prudent way.”

Prime Minister Narendra Modi’s government,

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SHANGHAI, Oct 9 (Reuters)Five newly launched Chinese funds targeting Ant Group’s upcoming mega stock listing raised 60 billion yuan ($8.93 billion) cumulatively from more than 10 million retail investors, selling out within days, the funds’ distributor said.

An average of eight investors placed orders each second during the subscription period, highlighting retail frenzy over Ant’s initial public offering (IPO) despite possible U.S. sanctions against the Chinese fintech giant.

The rush also underscores the marketing clout of Ant’s online payment platform Alipay, the sole third-party distributor of the five mutual funds that threatens to disrupt traditional fund sales models.

Ant IPO-ANTG.HK, Alibaba Group’s BABA.N fintech arm, aims to raise about $35 billion in a dual listing in Hong Kong and Shanghai’s STAR Market, expected in October, in what could become the world’s largest IPO.

The five funds launched on September 25 to raise 12 billion yuan each and

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By Swati Pandey

SYDNEY, Oct 7 (Reuters)The Australian government will issue bonds worth A$240 billion ($170.4 billion) in the current financial year, surprisingly unchanged from earlier projections despite a massive increase in spending to bolster the coronavirus-ravaged economy.

The Australian Office of Financial Management (AOFM), which manages the government’s debt, said on Wednesday the weekly bond tender would be between A$3 billion and A$4 billion in most weeks for the remainder of the 2020 calendar year, from A$4-A$5 billion now.

The AOFM added that A$117 billion of the A$240 billion expected issuances for the year-ending June 2021 has already been undertaken.

“An unchanged issuance task and no new bonds this calendar year mean a flatter curve and tighter spreads,” said Robert Thompson, Sydney-based rates strategist at RBC.

AOFM’s unchanged issuance target comes despite a larger-than-expected budget deficit estimate for the 2020/21 fiscal year of A$213.7 billion

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By Nelson Bocanegra

BOGOTA, Oct 5 (Reuters)Colombia plans to substitute some of its planned 2020 financing in dollars for a local debt emission of about 5 trillion pesos ($1.28 bln), three market sources with knowledge of the plan told Reuters on Monday.

The ministry will extend auctions of local so-called TES bonds until November in order to raise the projected funds.

TES paper is the country’s second top source of financing after tax collection.

The Finance Ministry plans to move ahead with pre-financing needs for 2021 and is considering an internal debt swap on the local market, the sources said.

The ministry did not have an immediate response to a request for comment.

In early September, director of public credit Cesar Arias told Reuters Colombia would carry out public debt swaps with multilateral banks to reduce its exchange rate exposure amid higher debt due to coronavirus and

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Adds background, detail

LONDON, Oct 1 (Reuters)Britain’s Rolls-Royce RR.L said it planned to raise 2 billion pounds ($2.6 billion) from shareholders, 1 billion pounds from the bond market and secure further loans to rebuild its balance sheet after COVID-19.

The pandemic has battered Rolls’s finances as airlines pay the company according to how many hours its engines fly in wide-body jets. Worries that a recovery in travel will take years have pushed its share price down by 80% this year.

Rolls said on Thursday that the 10 for 3 heavily discounted rights issue was fully underwritten at 32 pence per share, a 41% discount to the closing price of 130 pence per share on Wednesday.

In May, the company said it would cut 9,000 jobs as a result of the pandemic and its finances have been the subject of media speculation since.

“The capital raise announced today

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(RTTNews) – Bayer (BAYZF.PK, BAYRY.PK, BYR.L) plans to cut more than 1.5 billion euros of annual costs as of 2024. The company may cut jobs and plans to exit non-strategic businesses or brands, as the coronavirus pandemic impacts its businesses. It expects to take a non-cash impairment charges on agricultural business, due to low commodity prices.

The new cost-savings program comes on top of annual savings of 2.6 billion euros as of 2022, which were announced in November 2018.

According to the company, the new cost-savings measures are currently in the early stages of development. The company will discuss with the relevant internal bodies, including employee representatives, and announce its final decision once it finalized.

The company plans to leave its dividend policy unchanged. But it expects payouts in coming years to be at the lower end of 30 percent – 40 percent of core earnings per share, rather than

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By Kane Wu and Julie Zhu

HONG KONG, Sept 22 (Reuters)Investor Sequoia Capital China is raising at least 15 billion yuan ($2.2 billion) in a new yuan-denominated fund, people with knowledge of the matter said, building a war chest as the world’s second-largest economy recovers from a virus-induced slump.

The fund, Sequoia China’s sixth, is likely to be the largest of its kind for the company and is expected to focus on sectors ranging from industrial technology, healthcare and consumer to media, said one of the people.

The early investor in top Chinese technology firms such as Alibaba Group Holding BABA.N reached the first close of the fundraising late last year, according to another person.

The Chinese investment arm of Silicon Valley venture capital firm Sequoia Capital looks to fully close the fundraising in the coming weeks and the final fund size would be about 18 billion

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(RTTNews) – Rolls-Royce Holdings plc (RYCEF.PK, RR.L, RYCEY.PK) said it is seeking to raise up to 2.5 billion pounds to strengthen its balance sheet, through a variety of options including a rights issue, new debt issue and other forms of equity issuance.

Rolls-Royce notes the continued media speculation regarding the possibility of the Group undertaking a fund raising.

Rolls-Royce said it continues to review all funding options and no final decisions have been taken as to whether or when to proceed with any of these options or as to the precise amount that may be raised.

The company said to be in talks with sovereign wealth funds such as Singapore’s GIC about participating in the raise, the Financial Times reported, which will be launched in early October.

“We continue to review all funding options to enhance balance sheet resilience and strength,” the company stated.

Rolls-Royce announced its major reorganization in

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(RTTNews) – NextEra Energy, Inc. (NEE) announced Wednesday that it has agreed to sell $2.0 billion of equity units to BofA Securities and Barclays. The transaction is expected to close on September 18, 2020.

Each equity unit will be issued in a stated amount of $50. Each equity unit will consist of a contract to purchase NextEra Energy common stock in the future and a 5% undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc. debenture due Sept. 1, 2025, to be issued in the principal amount of $1,000.

The debentures will be guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy, Inc. Total annual distributions on the equity units will be at the rate of 6.219%, consisting of interest on the debentures and payments under the stock purchase contracts.

Each stock purchase contract will require the holder to purchase NextEra Energy common stock for cash, based

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