Tereos failed deal hints at tough times for HY bonds

The French sugar producer pulls its non-call six-year perpetual as investors report a "fairly miserable" outlook for credit markets in the region.

French sugar producer Tereos scrapped what would have been its first bond deal in Asia, a non-call six-year perpetual, on Monday night as investors reported weak conditions on the region's high-yield credit markets.

The group had hoped to join a growing trend of European borrowers raising money in Asia to take advantage of the appetite from Asia's private banks and institutional investors for income-generating instruments, higher yield spread and credit risk offered by instruments such as perpetual bonds.

But the Asian high-yield market has seen a torrent of supply $21.6 billion in the first six months, according to Moody's and investors told...

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