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Serving up solutions
High offshore rates kept some companies away from the bond market, but one bank helped borrowers print in size, reviving Asian high-yield issuance and making ESG integral to its deals. HSBC is IFR Asia’s Bond House of the Year.
Foundations of success
Hong Kong blue chip CK Hutchison Holdings wowed the market with its US$2.5bn dual-tranche bond sale in April, drawing in more than US$12bn in orders as investors fought for a piece of the year’s best investment-grade bond.
Sparking a change
Indian property company Goswami Infratech, part of the diversified Shapoorji Pallonji Group (SP Group), sold a Rs143bn (US$1.74bn) high-yield bond in the domestic market in June, in a landmark transaction that blended private credit with the public bond market.
Lighting up the market
Only US$5.5bn of high-yield G3 bonds were sold in Asia in 2023, as high US dollar rates made offshore funding too expensive for many issuers and the struggles of China’s property developers weighed on the market.
Sharp focus
Global financial markets experienced plenty of volatility in 2023, complicating dealmaking, but HSBC remained focused, winning several sole and repeat mandates as well as arranging roles on event-driven and ESG loans. For those reasons, HSBC is IFR Asia’s Loan House and India House of the Year.
Expanding horizon
When BPEA EQT wrapped up US$1.88bn-equivalent of incremental credit facilities in July 2023 to finance the merger of Hong Kong-based business services companies Tricor and Vistra, it marked the culmination of a months-long process that kicked off in late 2022 amid an overhang of stuck deals in the Term loan B markets in the US and Europe.
Broad reach
In a difficult year for Asia’s equity capital markets, one bank found opportunities to raise funds for its clients by thinking differently and moving quickly. For making the most of short windows with its spot-on judgement, Citigroup is IFR Asia’s Equity House of the Year.
Standout success
The HK$4.06bn (US$520m) Hong Kong IPO of WuXi XDC revived the city’s lacklustre IPO market by demonstrating that international interest was still there for the right names.
Proving value
South Korean chemical company LG Chem’s record-setting US$2bn exchangeable bond showcased the depth of the equity-linked market and its value as an alternative fundraising channel amid rising interest rates.
Colour coordinated
ANZ broadened the spectrum of green, sustainable and social capital markets deals in Asia, and was at the forefront of a surge in issuance in Australasia, making it IFR Asia’s ESG House of the Year.
Striking a balance
South Korean chipmaker SK Hynix brought something new to the market when it sold its US$2.5bn triple-tranche bond deal in January, offering investors a choice of a conventional, green or sustainability-linked note.
Growing ambition
Australian cloud computing firm AirTrunk created history in the ESG financing market in Asia with a A$4.62bn-equivalent (US$3.02bn) sustainability-linked loan that stood out for its scale, complexity, innovation and successful syndication.
Building the future
Hong Kong Mortgage Corp’s debut project finance collateralised loan trade in May was strategic not only for the issuer, but also for Hong Kong, making it the best structured finance issue of the year.
Breath of fresh air
The US$692.55m financing package for the Monsoon Wind Power project in the Lao People’s Democratic Republic overcame several challenges including the large size and long tenors, as well as its cross-border aspect, to close successfully and win IFR Asia’s Frontier Markets Deal of the Year Award.
Broadening appeal
The Republic of the Philippines’ debut sukuk was a win for both the sovereign and investors, as the landmark bond offered access to a new liquidity pool for the issuer and welcome diversification for sukuk buyers.
Delivering a solution
Sunac China Holdings’ offshore debt restructuring was a landmark for China’s struggling property sector, as the defaulted developer was able to negotiate and complete a major restructuring in an effective and efficient manner.
PRC institutions take lion’s share of Asian investment banking fees, and are steadily expanding into overseas markets.
The Asian financial crisis showed how disastrous an over-reliance on foreign debt can be. What emerged in response Was a more domestically reliant local currency bond market in Asia, but the next stage of development will require a balancing act between improving liquidity and managing volatility.
A selection of numbers and charts that illustrate the events of 2023
Highlights of the year in black and white
A year in the life of bond banker reginald sellars
Alternative definitions of the year's buzzwords