Top Stories from this week's IFR Asia magazine
Friday 1600 Hong Kong / Friday 0900 London
A wave of Chinese companies listing on US exchanges is underpinning a late-year revival in the US IPO market. In the stubborn absence of local product, growth-starved US investors are again chasing the Chinese dragon.
China is wasting an opportunity if it’s going to issue its first US dollar sovereign bond in 13 years without international credit ratings.
Online microlender Qudian has raised US$900m from the biggest Chinese listing in the US in a year, underscoring the strong appetite of American investors for fast-growing and reasonably priced mainland companies.
The Government of Mongolia (Caa1/B–/B–) plans to buy back foreign debt due next year and issue new bonds to address its short-term maturities and complete a turnaround from last year’s economic crisis.
Some of Dalian Wanda Commercial Properties’ offshore lenders are demanding immediate repayment of loans after the Chinese property company was downgraded to junk status, sources with direct knowledge of the situation have said.
The US Securities and Exchange Commission last Tuesday charged Rio Tinto and two of its former top executives with fraud, saying they inflated the value of coal assets in Mozambique and concealed critical information while tapping the market for billions of dollars.
US insurer Aflac last week paid its second visit of the year to the yen market, this time for an offering of hybrid Global yen bonds – a first from a foreign life insurer.
Global investors piled into Vincom Retail’s D15trn (US$680m) IPO, Vietnam’s largest, as it offered a rare opportunity to buy into the frontier market’s rapid economic growth.
A cooling property market is prompting some global fund managers to take a defensive approach to Australian credit, but others still think the country will avoid a sudden drop in housing prices.
China is offering to buy up to 5% of Saudi Aramco directly in a move that gives Saudi Arabia the flexibility to consider various options for its plan to float the world’s biggest oil producer on the stock market, sources have said.
SF Holdings, the dominant package delivery company in China, last Wednesday tapped the onshore bond market for the first time, expanding funding sources to keep pace with its growth.
The slimming down of Australia’s large banks threw up another win for equity capital markets last week after financial services company IOOF Holdings completed a A$461m (US$361m) placement to part-fund its acquisition of ANZ’s wealth business.
The first loan priced over the Shanghai interbank offered rate (Shibor) has closed oversubscribed, marking a strong debut for the new benchmark rate, as well as borrower Merchants Union Consumer Finance.
More Chinese issuers are expected to launch US dollar bonds with tenors of less than a year in the next two months because of the pause in regulatory approvals for longer-dated notes.
IFR Asia is looking for the most impressive deals and the institutions that have best delivered on their chosen strategy across Asia’s financing markets over the past 12 months.
The Hong Kong IPO of China Literature, the online bookseller and publisher of internet giant Tencent Holdings, is set to raise up to around US$1bn, according to people familiar with the situation.
Chinese logistics company Best has fully exercised the greenshoe of its NYSE IPO, lifting the size to US$517.5m.
Australian superannunation platform Netwealth is on course to raise around A$264m from its IPO after pricing the institutional offer at the top of the range, according to a source close to the float.
US biopharmaceutical company Tissue Gene has raised around W200bn (US$177m) from its Korea Exchange IPO, having priced the shares at the top of the range, according to a source close to the float.
Bain Capital has cancelled the A$415m (US$325m) term loan B to fund its merger of after-school care providers Camp Australia and Junior Adventures Group.
(Reuters) Sinochem Group has tapped three banks to work on the possible Hong Kong listing of its key oil assets, as it seeks to raise capital and revive the company, said four people with knowledge of the matter.
The supply of Chinese US dollar Additional Tier 1 securities continues to rise, with yesterday’s US$1bn offering from China Merchants Bank (Baa1/BBB+/BBB) and today’s marketing of US$1.5bn of proposed AT1s by Bank of Jinzhou.
Sea has raised US$894m from an upsized NSYE IPO after pricing the deal above the indicative price range on strong demand.
Hemang Mehta is joining US hedge fund Varde Partners in Singapore to focus on private credit, special situations and illiquid assets in Australia.