UBS

US and European financing markets are wide open for business despite the shock US election result, and banks are pressing on with M&A mandates with seemingly renewed vigour. Elly Whittaker reports.

The US presidential election drove the Asian fixed income market to a near standstill this week and for most borrowers, Donald Trump’s victory has likely stalled plans for upcoming issuance. But Chinese property developers and local government financing vehicles, some of the names most desperate for funds, may keep the market moving for the rest of the year. Morgan Davis reports.

Investors had the opportunity to buy an additional tier one offering from a Chinese city commercial bank for the first time last week, with Huishang Bank Corp selling its debut dollar-denominated bond.

US and European equity investors have reacted with a degree of equanimity to Donald Trump’s capture of the White House, fastening on to the idea that he is likely to stimulate the US economy with deficit spending.

Hong Kong’s market regulator has warned that it may broaden its investigations into IPO sponsors, as it looks to act on other cases that have been brought to its attention.

Shares in Meyer Burger Technology, the Swiss solar panel maker, plunged 13% on Tuesday after it announced a recapitalisation programme involving a rights issue, an adjustment of the terms of the Sfr100m convertible bond it issued in September 2014, and the extension of a loan secured on one of its properties.

Zhongshan Dasin Holdings Co is planning to float a real estate investment trust on the Singapore Exchange via an IPO that could be worth around $400m, according to a source familiar with the matter.

Equity block trade business came back to life this week, as sellers hastened to monetise stakes before the US presidential election.

China’s Huishang Bank Corp sealed a lucky $888m additional tier one transaction on Thursday. The deal was not only the Chinese lender’s inaugural dollar-denominated AT1 but also the first from a city commercial bank in the country.

HNA Group affiliate Avolon Holdings has wrapped up a $8.5bn debt financing for the acquisition of the aircraft leasing business of CIT Group, with five lenders joining the trade.

Caja Rural Navarra is planning the first green covered bond of the year. It follows a trio of covered bonds issued by Australian banks and the first transaction to be issued from Nordea in more than a year.

The Hong Kong Securities and Futures Commission has fired a warning shot at banks, with both Standard Chartered and UBS being investigated for their roles as IPO sponsors. The move has left other banks wondering which one will be next and comes at a time when the IPO market is teetering. John Loh reports.