Asian Issuers 2009
IFR Asia magazine issue 620 special report (October 10 2009)
Weathering the storm
It has been a surprisingly good year for Asian banks and one in which they have weathered the global financial crisis well and clearly outperformed their US and European counterparts.
Smart shopping
Matahari Putra Prima had the distinction in 2009 of reopening the Asian high-yield market after its 18-month closure with an exchange offer that represented an efficient liability management exercise and brought in new money for the retailer. Given its aggressive expansion plans, further G3 issuance from the company is likely.
Record-setting feat
China State Construction Engineering (CSCE), the country’s largest home-builder, raised Rmb50.2bn (US$7.35bn) through a Shanghai IPO in July, at a time when the global equity markets were still struggling. The well-received deal stands as Asia Pacific’s largest IPO and one of the world’s largest so far in 2009.
Invigorating the bond market
Energy company PTT and its subsidiaries raised a total of Bt117bn (US$3.5bn) from the baht bond market, confirming Thailand’s status as South-East Asia’s busiest domestic bond market this year.
Change of strategy
Singapore-based Olam has made a substantive change in its long-term strategy that has made it become one of Asia’s most active issuers and borrowers across debt, equity and loan markets.
Setting the standard
Hong Kong conglomerate Hutchison Whampoa is having its most high-profile year in the offshore bond markets since 2003, having brought a series of liability management exercises and a barnstorming US$3bn two-part global. There’s no doubt that in 2009 Hutch has cemented its reputation as Asia’s most savvy corporate funder.
Bold all the way
Guangdong property developer Country Garden has a long record of bold issuance. Its April 2007 IPO raised US$1.9bn and was the defining transaction of a clutch of lucrative Hong Kong listings of mainland developers at that time; it went up 35% on the first day of trading and reportedly turned its five founding shareholders into billionaires.
Establishing a benchmark
Suzlon Energy’s successful but complex restructuring of US$500m in two series of CBs in July set a new benchmark for Indian issuers looking to work through potential large debt liabilities and ensure they remain a going concern.
Peso bond market steps up
When the global credit markets dried up in G3 currencies, many argued there was an opportunity for Asian local currency bond markets to prove their worth as an alternative funding source. The Ps38.8bn (US$800m) bond by San Miguel Brewery in March gave credence to that argument by illustrating the liquidity that could be accessed in domestic bond markets.
Shopping in style
For a debut borrower in the international capital markets, Australian supermarket operator Woolworths displayed remarkable savvy when it tapped an offshore loan earlier in the year. It achieved its objective of diversifying its funding sources and has now made itself a household name with Asian banks.