Top Stories from this week's IFR Asia magazine
Released online Saturday 08:00 Hong Kong / Friday 00:00 London
Last Monday, the state-run Xinhua News Agency reported that Ezubo, a peer-to-peer lending company in Anhui, had conned investors out of over Rmb50bn through a Ponzi scheme.
Lippo Karawaci’s fumbled attempt to extend its debt maturity profile has highlighted investors’ aversion to duration risk, pointing to difficulties the Asian high-yield market faces after a barren start to the year.
China’s largest chemical company is initially funding the deal entirely with debt through a mixture of recourse and non-recourse facilities, leveraging its own balance sheet and that of its target.
The Shanghai Stock Exchange issued notices to securities firms late last month, urging them to strengthen risk management on corporate bonds and asset-backed securities, according to three sources, who received the notice.
Endeavour is set to be the last of the New South Wales government’s three large power privatisations, but possibly the first to be sold through an IPO. At an estimated A$4bn, it will be the fourth largest Australian IPO in history, according to figures from Thomson Reuters.
Export-Import Bank of Korea drew fewer orders from socially responsible investors in the US and Europe for last week’s US$400m five-year offering than it did for a similar issue in 2013.
Foreign issuers can still apply for permission to sell bonds in Thailand’s local market, but now need to keep the proceeds in baht in Thailand, sources close to the government have told IFR.
In an announcement on the Stock Exchange of Hong Kong last Wednesday, the company said it would not proceed with the IPO due to excessive market volatility. It had been due to price the IPO after books closed last Tuesday.
Korea National Oil Corporation overcame difficult trading conditions to print a A$325m (US$228m) three-year floating-rate note last Tuesday at 128bp over three-month BBSW, the tight end of 130bp area guidance.
India’s stock market regulator has delayed the US$150m–$250m IPO of RBL Bank over previous violations of disclosure rules, complicating efforts to complete the country’s first bank listing since 2010.
The policy bank announced on January 29 that it would pay -0.1% on new funds deposited to BoJ current accounts, following the European Central Bank and the Swiss National Bank in imposing a negative interest rate to encourage banks to deploy their funds and stimulate the economy.
Patrick O’Connor dropped his legal case last week without receiving any payment from ANZ. He was dismissed last year for misusing his corporate credit card and for sending offensive messages on the bank’s communication systems.
Indian toll-road manager MEP Infrastructure Developers plans to an launch an infrastructure trust IPO of Rs10bn–Rs12bn (US$146m–$175m).
Dutch food and agriculture bank Rabobank has announced the appointment of Els Kamphof as group executive to lead its wholesale banking operations in Australia and New Zealand.
Australia’s major banks are unlikely to turn to the domestic covered bond market, despite the potential for bigger savings as senior unsecured funding costs march higher.
South Korea’s Netmarble Games has sent out a request for proposals on an IPO of up to W2trn (US$1.75bn), according to banking sources.
Indian carrier Go Airlines has hired Bank of America Merrill Lynch, Goldman Sachs and Kotak to manage its proposed IPO of US$150m, targeted for the second half of this year or the first quarter of 2017.
Malaysia’s Eco World International plans to submit to the Securities Commission before the end of February a draft document for its proposed IPO of US$500m.