Asia Pacific

In this round-up, the Chinese economy rebounds at a fast pace from a year ago when the Covid-19 pandemic hit, regulators vow to manage hidden debt risks at local governments, and two existing shareholders agree to pump $250m into Luckin Coffee.

The chairman of South Korea’s Kakao Corp has kicked off his official pledge to donate more than half of his wealth to society by raising about W500bn ($448m) from a stake sale in the messaging app on Thursday.

Chinese technology giant Tencent Holdings raised $4.15bn from four tranches of long-dated bonds this week, overcoming weak market sentiment to push ahead with its deal.

China Construction Bank Corp turned to the bond market on Thursday to sell a $2.4bn equivalent multi-currency transaction, with each tranche carrying a socially responsible investment (SRI) label. But recent volatility in the region’s credit market, and the issuer’s own ‘ambiguous’ approach to the trade, posed challenges.

Dongfeng Peugeot Citroen Auto Finance Co made its first appearance in China’s auto loan ABS market since 2017 this week, sealing a Rmb2.201bn ($336m) deal amid rising demand for proprietary brand vehicles after a plunge in sales in recent years.

DBS Bank is aiming to reduce its thermal coal exposure to zero by 2039, joining a group of global investors and banks that have made similar commitments to tackle climate change.

India’s Aditya Birla Sun Life Asset Management Company is gearing up for an IPO that will give its two promoter shareholders an opportunity to divest their positions in the firm.

The Indian government is looking for banks to help offload its stakes in Rashtriya Chemicals & Fertilizers and rival National Fertilizers, sending out two requests for proposals for the divestments.

Chinese company Zhaoke Ophthalmology has kicked off a Hong Kong IPO worth up to HK$2.1bn ($270m), becoming the latest biotechnology company to sell shares on the bourse.

Cambodia’s Prasac Microfinance Institution has returned to the loan market for $200m, narrowing pricing by 35bp compared to its last transaction in 2020.

Mining Industry Indonesia (Mind ID) is testing lenders’ appetite for a $1.5bn dual-tranche loan that has been launched into syndication through a group of eight banks.

Banks are optimistic that sustainability-linked bonds have a bright future as part of their funding toolkits, after Berlin Hyp became the first financial institution to land a deal in the format this week. More trades are already on the way and market participants are stepping up their efforts to break down the remaining barriers for FIG borrowers.