Asia Pacific

San Miguel Food & Beverage is gearing up for what is expected to be one of the largest stock sales out of southeast Asia in the second half of this year.

Pakistan is making a quick comeback to the loan market, seeking $200m, amid a mounting debt crisis in the country. But economists and bankers said numerous funding avenues are available for the sovereign to manage its $12bn of outstanding debt.

At least $8bn in IPOs from Asian issuers could hit screens in September alone, if everything goes according to plan. But with investor sentiment still on the rocks despite the mid-year lull coming to a close, equity capital markets bankers are hoping for a swift end to what has been a summer of volatility. John Loh reports.

The Indian arm of oil major Shell broke the quiet in Asia’s overnight block market this week by paring its stake in Mahanagar Gas for Rp11.8bn ($167.9m).

The first onshore China default from a local government financing vehicle (LGFV) has come as a shock to bankers and investors, but the negative news has not had a big impact on sentiment in the international bonds market. One LGFV sold a dollar bond this week and more are lining up, writes Addison Gong.

Taiwan’s leveraged loans market is finally set for some action, with private equity firm KKR seeking a $1.1bn-equivalent dual-currency deal to back its acquisition of LCY Chemical Corp. But uncertainties remain over whether the acquisition will get the government’s go-ahead.

Japan telecoms company SoftBank took another step towards its flotation this week by replacing its intergroup credit with a double-B rated leveraged loan. This followed a high-yield bond sale in April with the same purpose.

Chinese bond issuers were the first out of the gate on Thursday, vying for investors’ attention after public holidays in many parts of Asia shut markets on Wednesday.

While discussions around the possibility of a formal Southbound channel for Bond Connect continue, Chinese regulators have been testing the ground with new initiatives that allow onshore securities houses to tap overseas bonds, GlobalRMB has learned.

Mercedes-Benz Auto Finance has completed the tightest auto asset-backed securitization by any foreign originator in China in almost two years. The deal, which closed on Monday, was twice oversubscribed despite two underwriters dropping out of the syndicate at the eleventh hour.

National Australia Bank found demand for €2bn of new senior notes on Wednesday, at the same time as offering to buy back €750m of old debt.

Roland Schwinn, the Asia head of derivatives bourse Eurex, will leave the company on August 31 to join Sygnum, a startup looking to offer custody for digital assets, among other services.