South Asia

Reliance Power will seek shareholder approval for a Rp20bn ($306.8m) qualified institutional placement, after its board of directors approved the deal this week.

Equity investors threw their support behind Housing Development Finance Corp’s Rp19bn ($291.3m) fundraising this week, as the mortgage lender steered clear of a scandal that has engulfed India’s state-owned banks. It showed that the qualified institutional placement market is still open for the right names, writes John Loh.

Housing Development Finance Corp has raised Rp19bn ($291.3m) from a fixed price qualified institutional placement, according to a banker that worked on the transaction.

Indian state-owned refiner Hindustan Petroleum Corp (HPCL) has mandated four lenders for a new offshore syndicated loan.

A number of Indian issuers are preparing to head to the international debt market, as the appeal of offshore fundraising rises amid pressure in the domestic bond market.

Singapore-listed Sembcorp Industries is planning to spin-off and list its Indian energy unit, which will raise Rp41bn ($632.2m) from a fresh issue of stock, according to a draft red herring prospectus filed on Thursday.

India's Tata Steel, which mandated a group of 21 lenders in January for a new loan, has shrunk the size of the fundraising following a blowout bond issuance.

MUFG Securities Asia has named Royal Bank of Scotland veteran Pierre Ferland as its new chief executive.

Indian state-owned Punjab National Bank sent shockwaves through the country’s financial system last week when it disclosed a $1.8bn fraud at one of its branches. The timing could not have been worse, with the announcement casting a shadow over other public sector banks, most of which are in dire need of capital, writes Jonathan Breen.

The pipeline for equity capital raisings out of Southeast Asia is filling up nicely, with issuers from the Philippines, Vietnam, Bangladesh and Singapore looking to launch deals.

Indian Railway Finance Corp has turned heads in the loan market with its request for up to $250m of 10 year money. While some market participants balked at the idea of 10 year commercial loans, those at the firm’s main target audience — Japanese banks — think the deal is worth a look. Shruti Chaturvedi reports.

The Securities and Exchange Board of India (Sebi) is cracking the whip on banks managing IPO applications for retail accounts, saying investors may have to be compensated under certain conditions.