Asia Pacific

Kangmei Pharmaceutical Co, which committed a high-profile fraud last year, has become the first company to default onshore after Chinese New Year, having failed to repay a Rmb2.4bn ($342m) bond that was put back by its holders.

The International Fund for Agricultural Development, the Government of Cambodia and the European Investment Bank have launched a $124.5m rural development project to boost income and food security in the southeast Asian country.

The Japan Finance Organisation for Municipalities has picked banks for its first ever green bond, opting to print in euros for only the second time in the borrower’s history.

Equity capital markets bankers and investors are looking get stuck into deals after a quiet period last week as markets reacted to the spread of a virulent strain of coronavirus emanating from China.

Chinese stocks plummeted on Monday morning, the first trading day after the Lunar New Year holiday. The plunge came despite measures from the central bank and securities regulator to inject liquidity and ban short selling.

In this round-up, UBS expects China’s GDP growth to drop to 3.8% in the first quarter due to the outbreak of the novel coronavirus, Hong Kong banks shut branches to limit the virus spread and Chinese regulators step in with stablising measures for financial markets.

India’s equity capital market is likely to get a big injection of liquidity, after the government announced the planned sell-downs and listings of a number of state-owned entities in its annual budget.

Devesh Ashra has left his position as co-head of Asia Pacific debt solutions at Bank of America in Hong Kong.

SMBC Aviation Capital, an aircraft leasing company, has closed a $600m dual-tranche borrowing with 14 banks.

Adani Transmission has priced a $310m US private placement, becoming the first Indian company to raise money in that market since 2007. Although some investors still feel scarred by an Indian incident a decade ago, many see this as the dawn of an Indian PP revival.

Hong Kong’s stock exchange has returned Chinese biotechnology firm Akeso’s listing application, a deal being sponsored by JP Morgan and Morgan Stanley.

Asian debt bankers had expected a peaceful week amid the Chinese New Year holidays, but rising concerns about the spread of the coronavirus this week led to a rush of emergency calls. Several borrowers have decided to skip or delay planned roadshow meetings in Hong Kong.