Asia Pacific

Asia’s capital markets have started the year with a bang, but a market this good can’t last forever. The steady supply of new deals coming out at increasingly tight levels is a sign of clear frothiness in the market. Just take a look at the investor enthusiasm for low-rated Indonesian deals for an example of how bullish investors have become when they should be thinking twice.

India’s Yes Bank raised $600m in its first offshore bond sale on Monday, as it makes international strides through its new banking unit.

Poly Real Estate Group Co, the investment-grade property arm of government-owned China Poly Group Corp, ended an near four year bond hiatus with a tightly priced transaction on Monday. But a volatile market and an aggressive narrowing in pricing caused a drastic drop in orders.

Chinese company Shandong Linglong Tire Co has chosen dollars and euros for its maiden overseas fundraising.

Recent heavy supply in the Asian dollar bond market has found its first victim in Yango Group Co, which called off a planned $250m deal on Monday. While the Chinese developer’s high leverage raised some concerns, volatility in US Treasuries also played its part in the underwhelming demand.

A recent syndication for Omani borrower Bank Sohar made market observers take notice, thanks to the presence of Axis Bank at the top group, reflecting Indian banks’ rising eagerness to provide liquidity for foreign currency deals. Yet the country rarely features in the roadshow schedule for fundraisings — an oversight that banks should rapidly correct.

Philippine property developer Robinsons Land Corp is looking to raise Ps20bn ($389.2m) through a rights issue.

Chinese conglomerate Ping An Group is planning to spin off its healthcare technology subsidiary through a potential $1bn IPO this year on the Hong Kong Stock Exchange, according to a source close to the deal.

Malaysia’s SP Setia priced a MR997.8m ($256.2m) capital increase on Monday at the low end of guidance, in the largest overnight placement from a real estate issuer in the country.

Renminbi bullishness has served Luxembourg well. The tiny country has enjoyed substantial China-related fund flows in 2017, largely thanks to a wider offering of investments, Marc Andre Bechet, director of legal and tax at the Association of the Luxembourg Fund Industry (Alfi), told GlobalRMB.

The government of the Emirate of Sharjah is set to become the first issuer from the Middle East to enter the Panda market, after unveiling plans to raise Rmb2bn ($315.9m) from the onshore market.

Nomura has hired Charles Wang as chairman of China investment banking to strengthen its client coverage there, according to a memo seen by GlobalCapital Asia.