Northeast Asia

The Asian debt markets have been hit with a number of defaults from Chinese borrowers. China Minsheng Investment Corp (CMIG) has missed bond payments, as has Kangde Xin Composite Material Group.

Viva Biotech Holdings has kicked off bookbuilding for its Hong Kong listing, eyeing proceeds of up to HK$1.52bn ($194m). The firm has secured the support of Chinese state-owned giant Sinopharm.

BMW Group has debuted its first asset backed note (ABN) in China, bagging Rmb2.5bn ($387m) with a three tranche fixed rate deal through its majority-owned subsidiary, Herald International Financial Leasing.

SEG Automotive, a starter motor manufacturer, is tapping the offshore loan market for a €300m dual tranche facility.

Chinese software firm Duiba Group covered the book for its up to HK$900m ($114.7m) IPO on Tuesday morning, just hours after launch, according to a source close to the deal.

Structured issuance in Formosa format has tumbled amid a wider decline in structured MTN volume year to date, which Dealogic data shows has fallen from $9.98bn across 213 trades at this point in 2018 to $5.08bn across 119 deals this year.

Three Chinese property companies courted high yield dollar investors on Wednesday, raising a combined $827m.

Melco, the casino operator, played its US investor cards on Wednesday to build a $500m bond sale.

Mainland property developer Times China Holdings has raised HK$1.57bn ($200.2m) after boosting the size of an overnight top-up placement.

Chinese company Hollysys Automation Technologies withdrew its planned follow-on share offering on Wednesday.

HNA Group’s Hong Kong subsidiary, CWT International, appeared to default on a secured Hong Kong dollar loan on Wednesday. Although the company has had debt problems in the past year, many bankers were still surprised by the default and said more thorough background checks will be carried out on Chinese borrowers in future. Pan Yue reports.

Mercedes-Benz Auto Finance is on track to price its largest ABS trade under the Silver Arrow China series. The originator, having previously turned to Moody’s and Fitch for international ratings, switched to S&P and gained an AAA rating for its deal.