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The bull run in bonds came to a screeching halt in 2018, but one bank did more than its peers to help Asian issuers access international funding. For charting the best course through choppy markets, HSBC is IFR Asia’s Bond House of the Year.
China National Chemical Corp (ChemChina) pushed the boundaries of the international capital markets in March with Asia’s biggest Reg S-only bond, raising US$6.4bn across six tranches – five in US dollars and a €1.2bn long four-year in euros. The first jumbo trade from Asia since markets weakened in February equalled Sinopec’s US$6.4bn-equivalent US dollar and euro 2015 deal as the biggest from China’s corporate sector and the largest international bond from a Chinese state-owned enterprise. Proceeds were used to refinance bridge loans used to...
Nagacorp’s US$300m debut bond introduced the first Cambodian issuer to the international markets and was arguably one of the most difficult deals executed in Asia in 2018. Nagacorp, which operates the only integrated casino and hotel resort in Phnom Penh, had to negotiate a rocky period for emerging markets in May and set a price for Cambodian risk, given that even the sovereign had yet to set an offshore benchmark. The deal, however, priced inside guidance and traded well, giving the company a valuable funding platform for future projects...
With high-yield bonds under pressure for most of 2018, one bank excelled at guiding first-time issuers and challenging credits through tough markets. For picking its spots and supporting its clients, Credit Suisse is IFR Asia’s High-Yield Bond House of the Year.
The Republic of Indonesia laid down an important marker in Asia’s sustainable finance arena, becoming the first sovereign in the region to sell Green securities to offshore investors, and the first worldwide to sell Green sukuk. The government issued a US$1.25bn five-year Green sukuk alongside a US$1.75bn conventional 10-year sukuk, completing its first US dollar Islamic issue since a rating upgrade from S&P in May 2017 lifted it to full investment-grade status. The shorter tranche suited the maturity preferences of dedicated Green funds, which...
Few bonds over the decades can claim a potentially revolutionary impact on capital markets, but the World Bank and Commonwealth Bank of Australia won that right with the world’s first public offering of blockchain bonds. The International Bank for Reconstruction and Development’s A$110m (US$82m) 2.2% two-year Kangaroo may be modest of size and short in tenor, but its implications could be huge if the groundbreaking trade is replicated and improved to establish a new, more efficient template for global bond issuance. Blockchain advocates...
Amid fierce competition and a drop in deal volume, arrangers faced greater challenges to make returns in 2018. For showing leadership with an array of acquisition and structured financings, and successful distribution, Citigroup is IFR Asia’s Loan House of the Year.
The financing for Asia’s biggest private equity buyout raised the bar for the region’s leveraged finance industry, illustrating the kind of scale and complexity that the Asian loan market can offer to cash-rich financial sponsors. A consortium of Chinese investors wrapped up a US$4.108bn loan for the acquisition of GLP in January 2018, marking the end of a two-year campaign to take control of the Singapore-listed logistics provider. Chinese PE firms Hopu Investment and Hillhouse Capital, and SMG Eastern – an entity under the full control of GLP...
In an extraordinary year for Asia’s equity capital markets, one bank was in the driving seat on the biggest and most important deals across the full range of products. For bouncing back to its best, Goldman Sachs is IFR Asia’s Equity House of the Year.
With equity-linked issuance surging and volatility back on the radar, one bank stood out with its ability to raise funds across different markets. For its breadth of business and continued innovation, Credit Suisse is IFR Asia’s Structured Equity House of the Year.
In a year when Hong Kong’s stock exchange passed reforms aimed at attracting more technology companies, it is fitting that the city’s biggest tech stock should have been at the heart of the most significant – and impressive – deal of the year. Naspers’ HK$76.95bn (US$9.8bn) sell-down in internet giant Tencent Holdings showed that Hong Kong can compete with the world’s biggest equity financing venues. Asia Pacific’s largest overnight block trade smashed a record in Hong Kong that had stood since Vodafone sold a HK$50.9bn China Mobile stake in...
A US$610m dual-currency convertible from South Korean chemicals maker LG Chem showed the potential for innovative equity-linked issuance from the country. LG Chem launched three-year convertible bonds split between €315.2m and US$220m tranches on April 10. South Korean issuers typically prefer to sell such instruments domestically, and LG Chem had never previously looked offshore. However, the acquisition of LG Life Sciences the previous year left it looking to monetise a stash of treasury shares, and the CB format met its objectives well....
Anton Oilfield Services Group earns this year’s Turnaround Deal award for a transaction that dealt with a near-term maturity and earned it ratings upgrades and breathing room while oil prices were in the doldrums. At the start of IFR’s review period in late 2017, Beijing-headquartered Anton was struggling with the low oil price and staring down a US$242.25m maturity in less than 12 months, putting its issuer ratings of Caa1/CCC (Moody’s/Fitch) under threat. Its solution was an exchange offer with a new money component, giving bondholders the...
Clifford Capital’s first securitisation of project finance loans revived Asian interest in collateralised loan obligations, created a new asset class for the region and enhanced Singapore’s claim as a centre for infrastructure financing. Singapore-based Clifford Capital set out to find a way to bring more institutional investment into infrastructure in Asia Pacific and the Middle East, and settled on a structure that would overcome many of the hurdles in attracting fund managers to individual projects. The portfolio approach, with dozens of...
The Independent State of Papua New Guinea put itself firmly on the map for global fund managers with a wildly popular debut sovereign bond, proving that the capital markets can provide essential growth funding even in torrid conditions. Papua New Guinea ended a 20-year journey to the international bond market in some style, raising US$500m at a 10-year tenor – a rare feat for a first-time issuer with lowly ratings of B2/B (Moody’s/S&P). The deal was all the more impressive after three failed attempts in previous years and given that it priced...
The record D31trn (US$1.3bn) initial equity offering of property developer Vinhomes tested the limits of the Vietnamese stock market, proving that the fast-growing country has the ability to host sizable offerings. The country’s largest ever share sale offered global investors a rare chance to gain significant exposure to Vietnam’s growing economy and real estate market. Interest in Vietnam has ballooned since Vincom Retail, another Vingroup company, pioneered the IEO structure in 2017 with a D16.1trn offering that slashed the months-long delay...
The barriers around China’s capital markets are coming down, just as politicians threaten to escalate Sino-US tensions into an all-out trade war.
Japanese banks have for decades been criticised, fairly or unfairly, for a boom-bust approach to international business. Amid ongoing monetary stimulus at home, how do their global ambitions stack up today?
The past 12 months have been a rollercoaster ride for Asia’s credit markets. But to this seasoned operator, an end to the exuberance of recent years is no cause for alarm.
