Top Stories from this week's IFR Asia magazine
Friday 1600 Hong Kong / Friday 0900 London
Asian investors’ current enthusiasm for the Chinese technology sector poses an unlikely conundrum for bond issuers. Do the biggest names in tech need US investors anymore?
Are the wheels falling off Asia’s high-yield bond bandwagon? After a record year, the demise of three new issues last week has given lower-rated borrowers pause for thought. A chance for investors to catch their breath, however, may in fact be a good thing.
Three high-yield bond offerings failed to clear the market in the past week in Asia as a softening market and an overhang of upcoming deals kept investors on the sidelines.
Battery giant Contemporary Amperex Technology (CATL) is working on a record A-share IPO from China’s private sector, tapping into investor enthusiasm for new energy technology.
Moody’s surprise upgrade of India’s sovereign rating sent credit spreads tighter on Friday, brightening the outlook for public sector companies preparing to sell dollar bonds.
Mizuho Financial Group will slash its headcount by around a quarter in the next decade in an effort to shrink its cost base and boost dwindling profitability.
Commonwealth Bank of Australia issued its second home loan securitisation of the year on Friday, adding to a bumper year in a market shunned by the country’s other major banks.
Chinese online microlender LexinFintech filed for a Nasdaq listing last week, joining an IPO pipeline that is already showing signs of indigestion after a glut of offerings from the sector.
At least three of China’s leading technology companies are preparing to sell US dollar bonds, taking advantage of strong earnings and surging appetite for the sector to lock in low funding costs.
Wing Lung Bank managed to sell US$400m of Tier 2 bonds at tight pricing last Wednesday, despite surprising investors by failing to call its existing Tier 2 notes a week earlier.
Energy giant Shell capitalised on a rally in oil prices last week to offload its entire A$3.5bn (US$2.7bn) stake in Woodside Petroleum in Australia’s largest block trade since early 2015.
Infrastructure funds are gaining a foothold in the Japanese debt markets as the maturing solar power sector provides alternative lending opportunities for Japan’s liquid banks.
India’s two listed infrastructure investment trusts (InvITs), India Grid Trust and IRB InvIT Fund, are for the first time issuing debt to fund their expansion plans and improve returns for shareholders, following slumps in their share prices.
China’s rapidly expanding micro-loan and online consumer finance companies are turning to the syndicated loan market for funding, providing some welcome diversification for lenders.
Hebei Construction Group plans to start premarketing a Hong Kong IPO of about US$300m next Monday, according to people close to the deal.
A A$715m (US$542m) four-year acquisition loan to back private equity firm Blackstone Group’s acquisition of a portfolio of logistic property assets from Goodman Group has been launched into general syndication.
Shandong International Trust is set to start premarketing a Hong Kong IPO of about US$400m next Monday, according to people close to the deal.
Barclays yesterday sold S$200m (US$147.6m) of 12.5-year non-call 7.5 bonds at 3.75% in its first issue of subordinated Tier 2 notes in Singapore.
Cofco Womai, an online grocery store under Chinese food giant Cofco, is set to start premarketing a Hong Kong next Monday, according to people close to the deal.
International Finance Corporation and commercial banks have provided a US$185m syndicated loan to Vietnam International Commercial Joint Stock Bank to narrow the financing gap for micro, small and medium enterprises, as well as a lack of affordable housing in the country.
The books of Gulf Energy Development’s Bt24bn (US$726m) IPO are covered, according to two persons with knowledge of the transaction.
Edelweiss Financial Services has raised Rs15bn (US$229m) from the sale of new shares to qualified institutional investors at the bottom of a Rs280–Rs285 price range, a person with knowledge of the transactions said.
Chinese state-owned steelmaker Shougang has launched a two-year loan of up to US$300m.
Westpac Banking Corporation has appointed Michael Williams as head of debt products for Asia.