HSBC maintained its leading position in Hong Kong with jumbo loans, repeat mandates and event-driven financings, combined with a greater focus on distribution.
The city’s deal of the year was the reorganisation of Hong Kong blue-chips Cheung Kong Holdings and Hutchison Whampoa, and HSBC was firmly in the driving seat as sole financial adviser. HSBC provided HK$45bn (US$5.8bn) of a HK$55bn bridge loan in January to fund the group’s reshuffle into property and non-property assets, and churned its exposure quickly, coordinating a HK$40bn takeout facility three months later, attracting 27 other lenders.
HSBC played leading roles in numerous acquisition financings during the review period, showcasing improved structuring skills that allow it to target more lucrative business.
It was the sole arranger on a US$800m bridge for Jardine Matheson unit Dairy Farm International Holdings, which acquired a 19.9% stake in Chinese supermarket operator Yonghui Superstores, and sole financial adviser to Hong Kong-listed Biostime International, which took a US$450m bridge loan in September to fund a bid for Australian vitamin maker Swisse Wellness.
Among other bridge financings were a HK$6.18bn facility for China Communications Construction Group’s purchase of a 24.29% stake in developer Greentown China Holdings.
“HSBC has maintained its lead in Hong Kong through its close relationship with blue-chip, red-chip and mid-cap corporates that have mandated the bank to lead arrange loan financings throughout the year,” said Phil Lipton, head of loan syndications Asia Pacific.
HSBC also boasted many repeat mandates and underlined its ability to deliver debt financing in different markets.
It syndicated a US$500m three-year bullet loan for Sinochem Hong Kong (Group) in July after helping the borrower raise SFr250m in the Swiss bond market. It achieved a similar outcome on a HK$3.9bn term loan facility for Shimao Property in May, after an oversubscribed US$800m bond issue in February.
Real-estate financings still dominated proceedings in the city, and HSBC advised many clients on the best approach to the market, including some behind-the scenes work on club-style transactions.
HSBC played key roles in a HK$10bn term loan in January for Sun Hung Kai Properties, a HK$18bn term loan in March for Henderson Land and a HK$9.25bn facility in June for Abu Dhabi Investment Authority and New World Development.
It also acted as sole coordinator or bookrunner for mid-cap names and non-traditional sectors, including Comba Telecom’s US$200m club loan in June.
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