Asia Pacific

The lockdown has changed life for all of us in ways large and small. I miss my monthly trips to the beach in Thailand, lazing around in a plush hotel with a Mai Tai in my hand and a Tai Tai nowhere in sight. Tai Tai is my dear wife, although in this case the relevant definition of the word ‘dear’ is ‘expensive’. She tells me she misses the long dinners with the girls. Others reminisce about the hustle and bustle of business travel.

Two Chinese local government financing vehicles (LGFVs) hit speed bumps in the dollar bond market this week amid rising volatility, as investors pushed back on the issuers’ attempts to get away with aggressive pricing. While one of the borrowers sealed its deal despite tepid demand, another was forced to scrap its transaction. Morgan Davis reports.

A large number of issuers from Asia, the majority Chinese, tapped bond investors on Wednesday for fresh funds.

China Merchants Bank has sold its first mortgage-backed securitization (RMBS) with an international rating. Foreign demand helped with a smooth bookbuilding process, despite a weak market backdrop. Addison Gong reports.

South Korea’s Kookmin Bank used a Covid-19 sustainability bond label for its $500m bank capital deal on Wednesday.

Indian software firm Hexaware Technologies has wrapped up a $600m loan to fund its take-private by Baring Private Equity Asia.

Property company Hengli Group and real estate-focused private equity firm Gaw Capital Partners are taking advantage of a recent regulatory change in Hong Kong to increase a loan closed last year.

New Oriental Education & Technology Group, one of China’s largest private education companies, has kicked off bookbuilding for a Hong Kong secondary listing worth around $1.4bn.

The announcement this week of two acquisitions involving European and emerging market companies has cheered loans bankers who have been missing big M&A tickets because of the Covid-19 pandemic.

China Merchants Bank has sold its first mortgage backed securitization (RMBS) transaction with an international rating. The foreign demand helped with a smooth bookbuilding process, despite a less than favourable market backdrop for the outing.

Formosa Plastics Corp has shortlisted six banks to arrange a multi-tranche financing for its Vietnam business.

Gansu Provincial Highway Aviation Tourism Investment Group Co found lacklustre support for its $300m bond on Tuesday after its pricing strategy deterred investors from joining the deal.