Bond House

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...

Credit Suisse added to its already strong high-yield credentials in 2018 with an unmatched list of groundbreaking deals across Asia. It helped first-time and frontier-market issuers access funding, and dug up demand for borrowers from challenging sectors in difficult conditions. The Swiss bank focused its efforts on clients who valued its advice, comfortably topping the fee tables for high-yield bonds despite slipping outside the top five by volume, according to Refinitiv data for IFR’s review period, covering Asia Pacific, excluding Japan....

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...

Citigroup’s forte is the selective use of its massive balance sheet and a sharp focus on syndicating risk, and those attributes stood it in good stead in Asia’s loan markets in 2018 as volatile financial market conditions led to fewer plain vanilla opportunities and added pressure to generate returns. “Citi’s strength is evident in the depth and breadth of deals it closed, as well as thought leadership demonstrated in bespoke structured financing advisory – for example, bridge-to-bond, liability management and loan/bond/equity combo solutions...

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...

Goldman Sachs was back at its best in Asia’s equity capital markets in 2018, securing key roles on the biggest capital raisings of the year and showing its strengths across a broad mix of markets and products. The US investment bank led six of the 11 US$1bn-plus IPOs in the year and topped the equity and equity-related league table for Asia Pacific, excluding Japan. Goldman’s performance in the technology sector was especially remarkable, as it has worked hard to rebuild its tech franchise after missing out on high-profile listings the previous...

International equity-linked issuance from Asia more than doubled in 2018, and Credit Suisse used its experience and relationships to do more deals in more countries than any other bank. The bank was a regular feature in the offshore Chinese market, moving quickly to seize a window early in the year, and it also helped issuers in Australia, South Korea and Vietnam raise funds during IFR’s review period. Credit Suisse impressed with a broad range of public deals, covering high-grade and high-yield credits and a mix of structures, from zero...

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...