Asia Pacific

The unusual financing structure that China National Chemical Corp (ChemChina) is using for its $43bn acquisition of Syngenta drew a varied response from banks in Europe this week. Some saw the non-recourse structure for $20bn of the debt as shielding lenders from exposure to ChemChina, while others did not.

The Monetary Authority of Singapore (MAS) has flagged up issues about banks’ credit underwriting practices, including cases of covenant waivers and one off-credit exceptions given to borrowers. But while the central banks’ concerns are valid, bankers reckon lenders are being more than careful about their syndications business. Shruti Chaturvedi reports.

Malaysia-listed WCT Holdings is looking to spin off its property into a real estate investment trust and list its construction arm, with both IPOs likely to come to the market next year.

Malaysian telecommunications company Axiata Group has mandated three banks for a quick return to the Islamic bond market.

Chinese e-commerce giant Alibaba Group is said to be in advanced talks with banks for a borrowing of around $4bn.

A rarely seen product is set to return to the Asian securitization market with fixed income specialist SC Lowy and UOB Asset Management (UOBAM) gearing up for a $400m collateralized loan obligation (CLO). The transaction will be the first non-bank originated Asian CLO in years, but the structured finance community is sceptical about the market’s potential, writes Rev Hui.

The Singapore Exchange (SGX) has been one of Asia’s most proactive bourses in finding ways to improve its business, but some market participants are worried that it is out of touch. Chew Sutat, SGX’s head of equities and fixed income, told GlobalCapital Asia that there is a gap between perception and reality. John Loh reports.

As an ex-banker, I am used to hearing rants about the miserable fees paid by Asia’s state-owned issuers, but even I struggle to comprehend the lengths dealers must now go to if they want to win a deal.

Moody’s changed its outlook on the Chinese government’s credit rating to negative on Wednesday, putting the blame on weakening financials, falling currency reserves and uncertainty about the country’s ability to implement economic reforms. But the move drew limited reaction from market participants as China’s economic troubles have been well flagged.

Citi is set to end a decade long association with China Guangfa Bank (CGB) having announced this week that it will be selling its entire stake in the lender to China Life Insurance.

Malaysia’s CIMB has named Kong Sooi Lin as CEO of its investment bank, a role she had covered since the group chief executive left the position earlier this year.

UBS has created an new Asia Debt Financing Group, combining its existing debt and leveraged financing teams, according to an internal memo seen by GlobalCapital Asia.