Alibaba amassed a whopping $55bn of orders from investors for its landmark $8bn deal which ranks as the biggest G3 bond from an Asian ex Japan issuer. But some investors opted to stay on the sidelines after pricing was tightened up to 27bp across the six tranches.
Universal Terminal is set to provide investors with a unique story as it eyes raising a whopping S$1bn ($770m) IPO on the Singapore Exchange next month. If successful, the company will become the largest listing in the city-state this year — and the very first oil and gas storage trust to sell shares in Asia. Despite the firsts, the IPO will be a big test of the market’s appetite for size, business trusts and oil-related stocks, writes Rashmi Kumar.
Dividend recapitalisations are picking up in Asia, with a number of private equity firms tapping the loan market in recent months. Asian lenders have traditionally been reluctant to lend for such purposes, but have become more familiar with PE sponsors and more comfortable with the structure. It helps that such deals are offering juicy margins at a time when top tier credits are paying peanuts, writes Shruti Chaturvedi.
- Protelindo’s CGIF-backed Singapore Debut bond rakes in S$180m
- Alibaba draws $55bn of orders for landmark debut $8bn bond
- Sembcorp takes double dose of Singapore dollar bonds
- Record demand for 10y tranche as MoF CNH auction sees curve flatten
- National Agricultural eyes placements worth $145m
- HC Intl suffers in secondary after $100m hedge-fund heavy CB
- Louis XIII plans equity raising for Macau project
- Mah Sing flags rights issue to raise $187m
Veteran Chinese dealmaker Henry Cai is said to be considering leaving Deutsche Bank after four years with the firm.
China Merchants Bank’s (CMB) New York branch has launched the first renminbi denominated certificate of deposit (CD) in the US from its new global CD programme. Proceeds of the Rmb50m ($8.16m) one month offering will be used to support transactions in the US-China trade corridor.
- China rainmaker Cai may leave Deutsche Bank
- BMO’s LGM homes in on Greater China with new equities chief
- Barclays adds to Apac equities franchise
Whether because of delays or last-minute decisions, naysayers of the Shanghai-Hong Kong Stock Connect have had a field day berating it as little more than a half-hearted exercise. But such an ambitious task was never going to be without its problems. More credit should be given to what’s already been achieved.
Journalists sometimes have to choose between being fast and being right. The Financial Stability Board, with its Total Loss Absorbing Capacity (TLAC) plans, has chosen to be fast, and a weaker financial system will be the result.
A spate of restructurings and defaults by Chinese companies has spooked the syndicated loans market and some banks are now saying there will be a flight to quality. However, by squeezing lending to mid-cap names, banks could miss out on funding the next Xiaomi or Alibaba. Instead they should improve their credit checks and look for more innovative solutions.
From The Weekly
- Dividend recaps no longer a no-go for lenders in Asia
- Alibaba on course for $8bn Asia bond record
- SGX on fire as Universal mulls first oil storage trust S$1bn IPO
- More Chinese provincial SOEs to go offshore for funding
- MSCI inclusion the next milestone for Shanghai
- KCC Corp block flies off shelf on Cheil link
- Reignwood hits pause button on $160m debut offshore loan amid better cash flow
Cartoon of the Week
- European exporters replace €/RMB options with forwards
- Total Derivatives: resumption in CNY 5y bid expected
- Investors scoop dollar/yen calls as pair rises
- New equity access, arb strats emerge as Shanghai-HK Stock Connect opens
- Vontobel hires APAC deritrade head
- Total Derivatives: CNY offered on lower fix, 1s/3s seen flat
- Total Derivatives: PMI offers; CNY curve seen steeper
- HKEx, China Merchants Group sign MoU on RMB derivatives
- Total Derivatives: PMI backs CNY bid; plenum nears end
- RMB futures launch in Singapore, turnover exceeds Rmb1.1bn
More from Asia
Featured Bank Profiles
Latest news and league table performance
Asiamoney: September 2014
- Narendra Modi’s state silver sale
- CLSA stands on the shoulders of Citic
- Murray’s inquiry could leave Australia bank profits flagging
- Indonesia focus: Educating an infant Islamic finance industry
- Middle East & North Africa focus: MENA accelerates trading ties with Asia
- Middle East & North Africa focus: Reflecting on sukuk’s cross-regional appeal
- Asia’s foreign currency kings revealed
- Asia’s Best Managed Company Awards
- Australia Capital Recycling Roundtable: Selling the old to build the new
- Thailand Roundtable: Clearing the hurdles for growth
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Bookrunners of Asia-Pac (ex-Japan) ECM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
Bookrunners of Asia Pacific (ex-Japan) G3 DCM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|4||Bank of America Merrill Lynch||19,146.56||107||7.34%|
Asian polls & awards
Behind the stability of the top ranks, there are surprises in this year’s Brokers Poll from Asiamoney, as banks and brokers jostle for position in an intensely competitive equities market.
Taiwanese firms set the standard for corporate governance this year as CTBC Financial Holding Co (CTBC) won the most prestigious "Overall Winners: Best Companies in Asia for Corporate Governance" category in Asiamoney's Corporate Governance poll, while semiconductor manufacturer giant TSMC took third place. Thailand-based Precious Shipping Public Company Limited came in second.
Asiamoney has published the detailed results of its latest Fixed Income poll. Please use the following links to access the related coverage.
Asiamoney has published the detailed results of its latest FX poll. Please use the following links to access the related coverage.