Search League Tables

Thursday, 17 May 2012

IFRAsia
IFR Asia 698 - May 21, 2011

Search our complete archive of previous issues to find the story or deal you need.

  • Abbot sale points to depth of Australian dollar market

    IFR Asia 698 - May 21, 2011

    With around A$4bn of senior debt committed to support four rival bids for Abbot Point Coal Terminal earlier this month, the auction has highlighted the depth of the Australian dollar market.

  • Asian credits stabilise on dovish rate outlook as supplies ease

    IFR Asia 698 - May 21, 2011

    A slowdown in the primary markets last week gave investors hopes of a respite from the unrelenting supply of paper from Asia. With the rate view turning dovish, there are expectations fund flows will remain strong in the world’s fastest-growing region.

  • Back for more

    IFR Asia 698 - May 21, 2011

    Henderson Land Development is entering the syndicated loan market for the second time in six months with a self-arranged HK$5bn (US$643m) five-year refinancing.

  • Bank transfers

    IFR Asia 698 - May 21, 2011

    Barclays Capital has transferred Nick Smith, director in EMEA convertible origination, from London to Hong Kong to run Asia Pacific convertible origination. He will report regionally to Jorge Munoz and Marco Schwartz, co-heads ECM Asia Pacific, and globally to Stephen Roti, global head of equity linked. Smith has been with Barclays Capital for 10 years and has seven years’ experience with cash and convertible equity products.

  • BCA builds book

    IFR Asia 698 - May 21, 2011

    Indonesia’s BCA Finance, which focuses on car financing, has launched bookbuilding for a bond of five maturities – 370 days, 15 months, 24 months, 36 months and 48 months.

  • Benchmark size

    IFR Asia 698 - May 21, 2011

    China Development Bank, Hong Kong Branch, has placed a HK$1bn (US$128m) three-year FRCD at 60bp over Hibor via Barclays Bank. That pricing is equivalent to around Libor plus 74bp, assuming mid swaps. Settlement will be on May 23. CDB HK has raised HK$4.56bn via 12 deals in the Hong Kong dollar market so far this year. 

  • Bergamin to ANZ

    21-May-2011

    Daniel Bergamin has been named director in ANZ’s loan syndications team. He starts his new role in Melbourne on May 25, reporting to Sean Joseph, head of loan syndications for Australia.

  • Berliau waits longer

    IFR Asia 698 - May 21, 2011

    The closing of syndication for Indonesian shipping company Berlian Laju Tanker‘s US$685m loan has been extended to accommodate banks processing internal credit approvals.

  • Better perp

    IFR Asia 698 - May 21, 2011

    Tata Power looks likely to enjoy better terms on its proposed perpetual bonds than affiliate company Tata Steel managed on its latest perp. According to sources, a consortium of five to six banks have proposed a coupon of 11.45% for Tata Power’s Rs15bn (US$333.6m) perp, putting it a fraction lower than the 11.50% Tata Steel paid on a Rs7.75bn perp earlier this month.

  • Bountiful bonds

    IFR Asia 698 - May 21, 2011

    Tyre-maker MRF sent out bids for a Rs5bn bond, which might have four tranches. The bids were due on May 19. The first three tranches will have eight-, nine- and 10-year tenors, while the last one will be in a STRPP format, with maturities of eight, nine and 10 years and a call option at the end of year six. The bonds are likely to pay a coupon of over 10%. The company may finalise the issue on May 21, while the pay-in is targeted for May 23 or May 24. The bonds have an

  • Boustead bounty

    IFR Asia 698 - May 21, 2011

    Plantations and heavy industry conglomerate Boustead Holdings printed five-year MTNs of M$90m (US$30m) on May 12. The notes, rated AAA (Marc), were priced at 4.45%, yielding a concession of about 58bp over the AAA rated five-year government-guaranteed bonds that Pengurusan Air sold as part of a M$1bn deal in April. Affin Investment Bank, OCBC Bank and Public Investment Bank were joint

  • Buma goes tighter

    IFR Asia 698 - May 21, 2011

    Indonesia’s Bukit Makmur Mandiri Utama has signed a US$800m seven-year loan with a club of 10 banks. The loan refinances and increases the size of a US$600m facility signed late last November, shaving at least 100bp on the company’s cost of funding.

  • CapLand eyes offshore investors for CMBS deal

    IFR Asia 698 - May 21, 2011

    CapitaLand is plotting a return to the securitisation market with, possibly, the first dual-currency commercial mortgage-based deal out of Singapore in a long while. This will also be its second deal in two years, since selling a S$315m (US$255m) five-year CMBS secured against Jurong Point shopping malls in 2009.

  • CCS rights

    IFR Asia 698 - May 21, 2011

    China Communications Services announced that controlling shareholder China Communications Corp had received an approval from the State-owned Assets Supervision and Administration Commission for the latter’s proposed rights issue of up to Rmb4bn (US$616m). The company plans to offload not more than 1.15bn shares (756m domestic shares and 399m H shares) on a 2-for-10 basis.

  • CDB tap of week

    IFR Asia 698 - May 21, 2011

    China Development Bank offered Rmb20bn (US$3.07bn) of floating rate paper at 59bp over the one-year deposit rate. Although the pricing was slightly lower than previous market expectations, the deal was 2.11 times covered. Settlement will be on May 25. Fees are 10bp. This is the bank’s 33rd visit to date for this year. Outstanding five-year policy bank floater referenced to the one-year deposit rate was quoted at 63.66bp over in the secondary market.

  • Cementing deals

    IFR Asia 698 - May 21, 2011

    Hong Kong- and Shanghai-listed Anhui Conch Cement launched a dual-tranche corporate bond of Rmb9.5bn as an online roadshow and bookbuilding was conducted on May 20. The issue comprised a Rmb5bn five-year indicated at 4.8%–5.3% and a Rmb4.5bn seven-year tranche indicated at 5%–5.5%.

  • China pushes loan trading, but red tape remains

    IFR Asia 698 - May 21, 2011

    China’s central bank stepped up calls for the development of secondary loan trading last week in an effort to boost capital efficiency in the country’s banking system. Bankers warned, however, that the fledging market was unlikely to take off unless regulators cut red tape on loan transfers.

  • Commodity market volatility takes toll on resources IPOs

    IFR Asia 698 - May 21, 2011

    The extreme volatility in commodity prices in the past few weeks has taken a toll on resources IPOs in Hong Kong. Copper miner Kazakhmys, which had already scaled back its Hong Kong secondary listing to US$200m–$300m, was last week considering whether to scrap its fundraising altogether and, instead, transfer existing shares to list by introduction.

  • Completed Deals 21/5/11

    IFR Asia 698 - May 21, 2011

    Please use the link to access this week’s tables.

  • Corporate lines

    IFR Asia 698 - May 21, 2011

    Taiwan’s top power supplier and leading bond issuer, Tw-AAA rated Taiwan Power, closed its second bond deal of this year – a NT$14.55bn (US$440m) three-trancher. There were a NT$5.75bn five-year at 1.33%, a NT$5.75bn seven-year at 1.55% and a NT$9bn 10-year at 1.64%. KGI Securities, Masterlink Securities and Yuanta Securities topped the underwriting list. Settlement will be on June 1.

  • Debt cycle

    20-May-2011

    Motorcycle rental and purchase company Thitikorn will soon hit the market with senior bonds of Bt500m (US$16.5m) through sole bookrunner Bangkok Bank.

  • Dhir joins StanChart

    IFR Asia 698 - May 21, 2011

    Virendra Dhir has joined Standard Chartered Bank in Singapore as a director of its project, aircraft and shipping finance syndications team for Asia. Dhir will report to Dubai-based Steve Perry, regional head of syndications for Middle East and Pakistan.

  • Dim Sum done or nearly

    IFR Asia 698 - May 21, 2011

    Volkswagen raised Rmb1.5bn (US$225m) from a five-year renminbi-denominated and -settled bond at 1.65% last week. Bank of China (Hong Kong), BOC International, HSBC and Standard Chartered were joint bookrunners and lead managers on the automaker’s Reg S bond, which not only marked the German carmaker’s debut, but also represented longest-tenor Dim Sum offer

  • Domestic deal

    IFR Asia 698 - May 21, 2011

    Korean Air Lines took a trip to the domestic market on May 16 with a W300bn (US$274m) three-year bond. The paper priced with a coupon of 4.78%, equivalent to 112bp over three-year KTBs. Daewoo Securities was lead manager.

  • DSK affair casts spotlight on MDBs

    IFR Asia 698 - May 21, 2011

    The one positive outcome to be reasonably hoped for from the arrest in New York of former IMF president Dominique Strauss-Kahn on sexual assault charges is a reappraisal of the nature of the world’s multilateral financial institutions.

  • Enterprise calls

    IFR Asia 698 - May 21, 2011

    China Telecom Group is believed to be launching three-year enterprise bonds of up to Rmb10bn some time this month. Goldman Sachs Gaohua Securities will be the bookrunner on the deal and will act as a joint lead with CICC and UBS Securities. Both the deal and the company have AAA ratings from Chengxin.

  • Fairfax extension

    IFR Asia 698 - May 21, 2011

    Australian newspaper publisher Fairfax Media said it had negotiated an extension of three more years to April 2015 for an A$441m April 2012 tranche of its syndicated loan.

  • Financial mandates

    IFR Asia 698 - May 21, 2011

    China Guangfa Bank, a regional bank based in South China, last week issued mandates for its proposed US$5bn A/H IPO.

  • Follow-on offerings

    IFR Asia 698 - May 21, 2011

    Sole bookrunner Morgan Stanley completed a selldown of HK$968m (US$124m) in Intime Department Store Group on May 16. Stakeholder Warburg Pincus sold 80m shares, including 20m made available under an option to increase the size, at HK$12.10. The pricing was near the low end of the indicative price of HK$12.08–$12.43, representing a discount of 4.6% to the pre-deal spot of HK$12.68. The vendor is subject to a 90-day lock-up period. Intime shar

  • Foreign Kangaroos

    IFR Asia 698 - May 21, 2011

    Two foreign banks returned to the Australian dollar market last week with a pair of Kangaroo bonds.

  • Formosa delay

    IFR Asia 698 - May 21, 2011

    The deadline for responses to Formosa Petrochemical’s US$900m-equivalent revolving credit facility of three years has been postponed until mid-June. The loan, for which Citigroup is mandated lead arranger and bookrunner, was to close on May 20. Funds are for working capital.

  • Fuelling expansion

    IFR Asia 698 - May 21, 2011

    Chandra Asri Petrochemical will raise up to Rp3.6trn (US$420m) from a rights issue launched on May 16. It is offering up to 827m new shares at Rp2,300–Rp4,350 each, although guidance will be tightened later. DBS, Deutsche Bank, Morgan Stanley and UBS are underwriters. Shareholders Barito Pacific and Temasek will renounce their entitlements of a combined 94

  • GCL-Poly coming

    IFR Asia 698 - May 21, 2011

    Chinese solar energy equipment-maker GCL-Poly Energy Holdings met investors last week in Singapore, Hong Kong and London as it looked to market its debut international bond. The roadshow will continue in the US on May 23–25.

  • Giant Glencore IPO crosses line, but makes subdued debut

    IFR Asia 698 - May 21, 2011

    Swiss commodities firm Glencore overcame slumping commodity prices and a weak IPO market to price its US$10bn listing last week bang in the middle of its target price range. The shares, however, struggled to stay above the issue price, illustrating the scale of the challenge involved.

  • Hanil Cement rumour

    IFR Asia 698 - May 21, 2011

    South Korea’s Hanil Cement, rated A+/A+ (Kis/Nice), is rumoured to be looking to issue a W300bn (US$274.3m) bond. Hanil has outstanding debt of only W140bn from five different issues. This year, it sold a W30bn 5.29% four-year bond via SK Securities in February. More recently, on May 12, it issued W30bn of 5.64% five-year paper, again through SKS.

  • Headstrong push

    IFR Asia 698 - May 21, 2011

    Business process outsourcer Genpact is finalising the mandated lead arrangers for an underwritten US$380m four-year loan to back its recent US$550m acquisition of Indian consulting and IT services firm Headstrong Corp. Bank of America Merrill Lynch, Citigroup, JP Morgan and UBS are leads on the facility, which also refinances previous debt.

  • Hedging dividend

    IFR Asia 698 - May 21, 2011

    Seven Group Holdings said it had entered into a cash-settled equity derivative with Deutsche Bank after the bank crossed early on Friday A$81.4m of Seven West Media stock at A$4.60 or a 4% premium to the May 19 close of A$4.42. Seven Group is doing the trade to hedge 17.8m Seven West shares that it will get at a higher price than A$4.60 through Seven West’s dividend reinvestment plan where it has opted to take stock.

  • High-premium CB pulls Wharf away from US dollar bonds

    IFR Asia 698 - May 21, 2011

    Even in a bumper period for international bond issues, Asia’s equity-linked markets have proven they are capable of attracting issuers away from straight debt with competitive terms. Hong Kong landlord Wharf (Holdings) raised HK$6.22bn (US$800m) from a three-year convertible bond last week, only weeks after it postponed a straight bond.

  • Hot bet

    IFR Asia 698 - May 21, 2011

    MGM China, the only unlisted gambling licensee in Macau, started bookbuilding on May 16 for its proposed Hong Kong IPO of up to HK$11.7bn (US$1.5bn). The offering comprises 760m primary shares at HK$12.36–$15.34, representing a 2011 EV/Ebitda of 11.0–13.5 times. Listed comparables trades at a 2011 EV/Ebitda of 12–15 times. The deal attracted strong demand and the book is covered two hours after launched.

  • Huawei hungry

    IFR Asia 698 - May 21, 2011

    Chinese telecoms equipment maker Huawei Technologies has attracted bids from around 10 banks for a loan of at least US$1bn. The borrower has a final target of around US$1.5bn, but will likely launch the deal at a smaller size.

  • ICICI's fresh debt

    IFR Asia 698 - May 21, 2011

    Indian lender ICICI Bank raised US$1bn from a 5.5-year Global bond after good demand from investors helped the issuer price the offering spot on final guidance. Citigroup, Deutsche Bank, HSBC and RBS were joint bookrunners on the transaction, which generated an order book of US$2.7bn from over 200 accounts.

  • IFC prices Kauri

    IFR Asia 698 - May 21, 2011

    International Finance Corp priced a NZ$150m (US$118.5) five-year Kauri bond under its Global MTN programme. The 4.625% May 25 2016 Kauri bond has a capital price of 99.724 to yield 4.6875% semi-annually, equating to a re-offer level of 60.25bp over the New Zealand Government bonds due April 2015.

  • Indian borrowers still keen to tap Swiss franc bonds

    IFR Asia 698 - May 21, 2011

    Indian lender IDBI Bank has confirmed its plans to sell bonds in Swiss francs, despite a delay of almost a month since it mandated BNP Paribas, Credit Suisse and UBS to arrange investor meetings in Switzerland in mid-April.

  • Indomobil doubles

    IFR Asia 698 - May 21, 2011

    Indomobil Finance has doubled the issue size of its domestic bond offering to Rp1trn (US$116m) on strong demand.

  • Initial fundraising

    IFR Asia 698 - May 21, 2011

    Melbourne-based infrastructure debt fund Westbourne Capital announced on May 16 its completion of an initial fundraising of A$1.03bn (US$1.09bn) from Australian institutions to invest in global infrastructure debt.

  • Investors and international issuers warm to Dim Sum bonds

    IFR Asia 698 - May 21, 2011

    The offshore renminbi bond market gained more traction in the international community last week as German car-maker Volkswagen placed an unusually high proportion of its Dim Sum bonds to European investors.

  • IPO refund

    IFR Asia 698 - May 21, 2011

    Hong Kong’s Securities and Futures Commission on May 19 filed an application to the High Court seeking a final order for the return of funds to investors who bought shares in the IPO of Chinese sportswear fabric-maker Hontex International, as well as those who bought them after the company’s listing in December 2009.

  • IPOs in the offing

    IFR Asia 698 - May 21, 2011

    Shanghai-listed construction-machinery maker Sany Heavy Industry intends to seek SEHK approval for a proposed US$3bn Hong Kong IPO at the end of this month. The company aims to wrap up the deal next month.

  • ITD refi paper

    20-May-2011

    Construction company Italian-Thai Development has set the coupon on its Bt3.5bn (US$116m) five-year bonds at 6.72%. The subscription period for the bonds is June 2–7 and Bangkok Bank is the sole arranger.

  • Jindal takeout

    IFR Asia 698 - May 21, 2011

    India’s Jindal Steel & Power has approached six to seven banks for takeout financing linked to the US$400m bridging loan provided last year to wholly owned subsidiary Jindal Steel & Power (Mauritius). Both Indian and foreign banks have been in talks with the borrower.

  • JPM left out as Vedanta nears bond market return

    IFR Asia 698 - May 21, 2011

    India-focussed miner Vedanta Resources will meet investors in a series of presentations starting this week for a proposed benchmark Reg S/144a offering of US-dollar fixed-rate senior notes. A roadshow will be held in Asia, Europe and the US from May 23.

  • Karawaci block

    IFR Asia 698 - May 21, 2011

    Pacific Asia Holding sold 1.45bn shares in property developer Lippo Karawaci to raise Rp957bn (US$112m). The shares were sold at Rp660 each, near the low end of the guidance range of Rp650–Rp710, or a 12% discount to the May 18 close of Rp750. An upsize option of 500m shares was not exercised. The shares were sold to 30 or so accounts, 75% of which were long only. CLSA was sole bookrunner. Proceeds will be used to acquire shares in Lippo Map

  • KfW Kangaroo leap

    IFR Asia 698 - May 21, 2011

    Germany’s Triple A rated KfW has priced an A$500m (US$533.5m) increase to its A$1bn 6.00% Kangaroo bond due January 19 2016 at 68.5bp over the 4.75% ACGB due June 15 2016. The tap has a re-offer clean price of 100.624 and a gross price of 102.729 to yield 5.8425% semi-annually.

  • KoFC coming

    IFR Asia 698 - May 21, 2011

    Korea Finance Corp aims to embark on a global roadshow shortly. Bank of America Merrill Lynch, Credit Suisse, HSBC and RBS are the leads.

  • League tables 19/5/11

    IFR Asia 698 - May 21, 2011

    Please use the link to access this week’s league tables.

  • Leaving New York

    IFR Asia 698 - May 21, 2011

    Abhay Pande is the latest US banker to transfer to Asia with Citigroup. He will be head of industrials for South-East Asia within the global banking group, reporting to Michael Borch, head of industrials for Asia Pacific, and to Stephen Trauber, global head of energy banking. Pande will also be co-head of energy global banking for Asia, alongside Jason Johnson, head of natural resources global banking for Asia.

  • Lim for UBS

    IFR Asia 698 - May 21, 2011

    UBS has appointed Li Woon Lim co-head of Asia FICC emerging markets trading. Lim joins from Bank of America Merrill Lynch, where he worked for 10 years and was most recently head of Asia credit sales and trading.

  • LMI criteria change

    IFR Asia 698 - May 21, 2011

    Fitch placed 54 Australian RMBS tranches on a negative ratings watch after publishing draft criteria on the credit given to lenders’ mortgage insurance (LMI) within such deals.

  • Lonking good

    IFR Asia 698 - May 21, 2011

    Lonking Holdings, formerly China Infrastructure Machinery Holdings, kicked off a roadshow on May 18 ahead of a five-year non-call three Reg S/144a bond. Credit Suisse is sole global co-ordinator and joint bookrunner with Standard Chartered on the deal.

  • Melco crowns it

    IFR Asia 698 - May 21, 2011

    Melco Crown Entertainment’s US$1.2bn loan has seen two banks join in general syndication, bringing total commitments so far to US$125m. The loan is borrowed via subsidiary Melco Crown Gaming (Macau).

  • Mining for money

    IFR Asia 698 - May 21, 2011

    Gloucester Coal last week said it raised A$218m (US$233m) from institutional investors out of the total A$230m it aimed for through a 2-for-11 accelerated non-renounceable pro-rata entitlement offer.

  • Minmetals call

    IFR Asia 698 - May 21, 2011

    China Minmetals HK (Holdings) last week sent out RFPs to banks, including offshore lenders, for a US$500m loan. The borrower is asking for underwritten commitments of US$125m.

  • MoR pays more

    IFR Asia 698 - May 21, 2011

    China’s Ministry of Railways had to fork out higher coupons for its latest fundraising as rising interest rates took a toll on the deal. The Rmb20bn five-year MTNs were priced on May 19 at 4.98%, slightly higher than the 4.95% indicated earlier in the week. The coupon was also much higher than the issuer’s previous taps – a Rmb10bn 10-year at 3.94% and a Rmb5bn 15-year at 4.05% last September.

  • NAB lines up to test crowded RMBS market in Australia

    IFR Asia 698 - May 21, 2011

    National Australia Bank announced its return to the domestic RMBS market last week after a four-year absence. The A$750m (US$799m) offering, however, comes as a stern test of investment sentiment in a market that has softened since recording A$5.06bn of new issues in April – the busiest month since the 2008 crisis.

  • NACF on the road

    IFR Asia 698 - May 21, 2011

    South Korea’s National Agricultural Cooperative Federation met investors on a global roadshow last week. The borrower has mandated Bank of America Merrill Lynch, Citigroup, Credit Agricole, Deutsche Bank and Standard Chartered for the meetings, which commenced in Singapore and Los Angeles on May 16 and followed in Hong Kong May

  • Nearing the due date

    IFR Asia 698 - May 21, 2011

    Comments last week from one of China’s top regulators suggest that International companies could begin listing in Shanghai before the end of the year. Bankers, however, are cautious about raising their expectations. Ken Wang and Steve Garton report.

  • New DnB NOR head

    IFR Asia 698 - May 21, 2011

    Kim Joo Tay has been appointed DnB NOR Bank’s director and head of syndicated loans in Asia. Tay, a former relationship manager at the bank for over 10 years, took up the role effective May 1.

  • No bumps en route

    IFR Asia 698 - May 21, 2011

    Sydney Airport Finance priced its A$100m seven-year MTNs at 210bp over swaps, in line with the 210bp area guidance. The deal was launched on May 18 and priced on May 20.

  • Northern exposure

    IFR Asia 698 - May 21, 2011

    Australia’s Northern Territory Treasury Corp has raised A$300m from a 5.75% bond due November 2016. Priced at 99.814, the notes yield 5.79%, or 59bp over comparable ACGBs. ANZ was sole lead on the 5.5-year paper, which settled on May 20. NTTCorp is rated Aa1 (Moody’s).

  • Nusa lets loose

    IFR Asia 698 - May 21, 2011

    Newmont Nusa Tenggara has launched a US$600m six-year term loan via Bank Mandiri, BNP Paribas and Sumitomo Mitsui Banking Corp. The loan was originally slated for launch early this year, but was delayed.

  • OCI goes global

    IFR Asia 698 - May 21, 2011

    Polysilicon maker OCI launched a roadshow on May 16 for an offering of global depository shares, meant to raise up to US$700m. It has approval to issue up to 15.6m GDS, which represent 1.2m primary shares and 360,719 treasury shares, or a total of 6.4% of enlarged company capital.

  • Oil in chocolate land

    IFR Asia 698 - May 21, 2011

    Korean National Oil Corp’s five-year bond of €100m (US$143m) was priced on May 18 via sole bookrunner UBS. It is the first euro-denominated bond from a Korean issuer since the the global financial crisis.

  • Olam mandates 14

    IFR Asia 698 - May 21, 2011

    Singapore-based Olam International has mandated 14 banks for its US$1.25bn loan. The 14 are ANZ, Credit Suisse, DBS Bank, Emirates Bank, HSBC, ING Bank, JP Morgan, Morgan Stanley, NAB, Natixi

  • Other Tables 21/5/11

    IFR Asia 698 - May 21, 2011

    Please use the link to access this week’s tables.

  • Pakistani mandate

    IFR Asia 698 - May 21, 2011

    The Islamic Republic of Pakistan has mandated Citigroup, Credit Suisse, JP Morgan and BMA Capital for its upcoming US$500m bond. The paper is exchangeable into shares of Oil and Gas Development.

  • Perennial returns

    IFR Asia 698 - May 21, 2011

    Perennial China Retail Trust, which comprises shopping centres in China, has opened books for its relaunched business trust IPO of up to S$823m (US$665m). Bookbuilding will run until May 25 on an accelerated roadshow and bookbuilding schedule. The offering was withdrawn in March, but premarketing began last month for a new deal, which will be up in size. Citigroup, DBS, Goldman Sachs

  • Pertamina announces arrival with back-to-back bonds

    IFR Asia 698 - May 21, 2011

    Indonesian state-run energy firm Pertamina last week took full advantage of bond investors’ hunger for exposure to South-East Asia’s largest economy, following up a blockbuster debut with an opportunistic 30-year trade just four days later.

  • PFC booster

    IFR Asia 698 - May 21, 2011

    The Indian Government’s ambitious privatisation programme has received a huge boost after Power Finance Corp priced its 229.55m share offer at the top end of its Rs193-Rs203 target price range, raising Rs46.6bn (US$1.05bn).

  • Pipelines 21/5/11

    IFR Asia 698 - May 21, 2011

    Please use the link to access this week’s tables.

  • PNOC postponement

    IFR Asia 698 - May 21, 2011

    The board of PNOC Exploration Corp has decided to defer the company’s proposed follow-on offering. Earlier this month, it had shortlisted three groups of banks – Deutsche Bank, UBS, and the duo of Citigroup and ATR Kim Eng – for roles on the deal. If the company does not increase its free float to at least 10% by November from 0.21% at present, it will be fined.

  • Prada wins nod

    IFR Asia 698 - May 21, 2011

    Italian luxury goods company Prada has won SEHK listing approval for its proposed US$2bn Hong Kong IPO. Premarketing will start on May 23 and a roadshow follows on June 6. Pricing is slated for June 16. CLSA, Goldman Sachs, Intesa Sanpaolo and UniCredit are joint bookrunners.

  • Property, power and ports

    IFR Asia 698 - May 21, 2011

    Axis Global Islamic REIT has begun premarketing for its IPO, which is expected to raise up to US$700m. Books are expected to open in mid-June, with listing scheduled for July. CIMB and Standard Chartered are joint global co-ordinators and bookrunners, with Macquarie and Maybank as joint bookrunners. The REIT comprises industrial properties in Australia, Ho

  • PSE names chairman

    IFR Asia 698 - May 21, 2011

    Former finance secretary Jose Pardo has been named new chairman of the Philippine Stock Exchange. He replaces Cornelio Peralta, who assumed the role in January when Hans Sicat moved from chairman to president to fill the vacancy created by the resignation of Val Antonio Suarez.

  • QBE scores with Tier 2 double

    IFR Asia 698 - May 21, 2011

    Australia-based QBE Insurance last week raised US$1.52bn-equivalent from a dual-currency hybrid bond that met with a good response from investors in two different markets. QBE sold 30-year Tier 2 paper in the US and sterling bond markets with the combined fundraising helping the insurer achieve its objectives in terms of capital treatment for regulatory and ratings purposes.

  • Regulators approve Tokyo bond exchange

    IFR Asia 698 - May 21, 2011

    Japan’s financial watchdog has given Tokyo AIM approval to establish an institutional investor-only bond exchange. On paper, issuers can now sell bonds to registered Japanese institutional investors without the need for onerous documentation, and the bonds can be traded on the exchange. Theoretically, the first bonds could be listed as early as July.

  • Renewable float

    IFR Asia 698 - May 21, 2011

    Huaneng Renewables started premarketing its US$1bn Hong Kong IPO on May 19. A roadshow is tentatively set to start on May 27 and pricing is slated for June 2. Last November, the company attempted to sell 2.49bn shares to raise US$1.27bn, but postponed the move due to gloomy market sentiment. CICC, Goldman Sachs, Macquarie and Morgan Stanley are arranging t

  • RMBS all the way

    IFR Asia 698 - May 21, 2011

    National Australia Bank returned to the RMBS market after a four-year absence with an A$750m (US$798.8) offering. The bank began marketing the RMBS today and pricing is expected this week.

  • Second attempt

    IFR Asia 698 - May 21, 2011

    Hon Hai Precision Industry, the world’s largest electronics manufacturer in terms of sales, will make another bid to sell a NT$4.95bn dual-tranche corporate bond on May 24. The first attempt failed when an offer launched on May 18 failed to generate sufficient demand.  

  • Shanshui squeezes through as China high-yield fever falls

    IFR Asia 698 - May 21, 2011

    Hong Kong-listed China Shanshui Cement was the only high-yield credit from Asia to complete a G3 bond last week as a pair of planned deals failed to materialise. After a record run for Asian high-yield bond sales, fears are rising for the packed pipeline of new issues as investors become more discerning amid weak market conditions.

  • Shortlist of three

    IFR Asia 698 - May 21, 2011

    Indonesian state-owned pawnshop Perum Pegadaian has shortlisted three firms for a proposed domestic bond. Bahana Sekuritas, Danareksa and Indo Premier are frontrunners for an underwriting role. Perum Pegadaian is expected to award the mandate during the next few weeks.

  • Solar sale

    IFR Asia 698 - May 21, 2011

    Neo Solar Power received regulatory approval for its GDR offering of US$250m. The deal, involving 100m–120m shares, is expected to hit the market in June. Proceeds will be used to purchase equipment and production materials. Credit Suisse and Nomura are arranging the transaction.

  • StanChart jumbo

    IFR Asia 698 - May 21, 2011

    Standard Chartered Bank Taiwan, rated AAA (Fitch), has issued a jumbo-sized local currency bond for a foreign bank in Taiwan. It is a NT$19.35bn (US$586m) multi-tranche senior paper with tenors ranging from two to seven years. Settlement date was May 19. The deal marked SCBT’s return to the Taiwan dollar bond market after a NT$10bn 10-year non-call five sub bond at 2.9% in October 2009. SCBT self-led the deal with the help of Masterlink

  • Stay on guard

    IFR Asia 698 - May 21, 2011

    Convertible bond specialists talk wistfully of the spate of zero coupon Indian deals in the heady days of 2006–07 as the epitome of exuberance. Often converting at a 50% premium, those deals certainly looked very silly when the inevitable market correction came in early 2008.

  • Sub bonds feast

    IFR Asia 698 - May 21, 2011

    Bank of China’s Rmb32bn 15-year non-call 10 subordinated bonds were priced at 5.30% on May 17, closer to the high end of the 5.00%–5.40% indicative range. An initial size of Rmb24bn was sold first, and a greenshoe option of up to Rmb8bn was later fully exercised. BOC International is the bookrunner and joint leads with Citic Securities on the deal, which will settle on May 19.

  • Swaps swat issuance

    IFR Asia 698 - May 21, 2011

    Sharp falls in Singapore dollar interest rate swaps have dented plans for potential issues in the debt market, causing a hiatus in primary sales of benchmark bonds. The likes of Singapore Telecommunications, which has had a plan to issue a retail bond for the last two months or so, and state-owned Housing Development Board are finding that low swap rates have eaten into investor appetite.

  • Taking off

    IFR Asia 698 - May 21, 2011

    Shenzhen Airport has received CSRC approval to issue six-year convertible bonds of up to Rmb2bn (US$307m). The CBs will carry a coupon of not more than 2.8%. Proceeds will be used to fund the construction of T3 terminal. China Securities is arranging the deal.

  • Taking the Thai road

    20-May-2011

    Expressway Authority of Thailand priced a Bt1bn (US$33.1m) 10-year bond paying a 3.81% semi-annual coupon on May 19.

  • Telstra connects

    IFR Asia 698 - May 21, 2011

    Australian telecom giant Telstra Corp has priced an A$150m (US$160m) increase to its existing MTNs due July 15 2020 at a guidance of 160bp over swaps to yield 7.42%. The new tranches have a re-offer price of 102.147 and will be settled on May 26.

  • Ticon triumph

    20-May-2011

    Ticon Industrial priced its Bt650m (US$21.5m) five-year bonds at 4.23% via sole arranger CIMB Thai. The subscription period for the A rated (Tris) paper is May 18–20. Proceeds will be used to refinance existing debt, as well as business expansion.

  • Tongkun holds up

    IFR Asia 698 - May 21, 2011

    Tongkun Group made a stellar debut on May 18, closing 10.04% above the IPO price at Rmb29.71. The polyester filament maker’s float was the cheapest in the A-share market since 2009, as it priced the Rmb3.24bn (US$499m) Shanghai IPO at Rmb27, representing a 2010 P/E of 12.22 times. This was well below the average of around 20 times for listed peers. Guosen Securities arranged the deal.

  • Towngas shortlist

    IFR Asia 698 - May 21, 2011

    Towngas China, the 65%-owned piped-gas-distributing flagship of Hong Kong & China Gas (Towngas) on the mainland, is expected to issue the mandate for its HK$1.2bn five-year debut loan before the end of this month.

  • Trio of taps

    IFR Asia 698 - May 21, 2011

    Export-Import Bank of Korea is taking advantage of falling swap offered rates in Singapore with yet another small tap of one-year paper. This time, it sold a S$50m (US$40.5m) fixed-rate issue at 1.00% or 20bp inside of the 1.20% coupon it paid on a S$70m tap of one-year notes in early April.

  • Trott back at Goldman

    21-May-2011

    Goldman Sachs finally has a head of DCM syndicate, Asia (ex-Japan), having hired Julian Trott to fill a position left vacant for almost two years. Trott started work last week.

  • Two to StormHarbour

    21-May-2011

    Capital markets boutique StormHarbour has hired two senior origination bankers in Hong Kong. Hong Hoo Moon and Guohua Ren have joined the financial advisory firm as managing directors with responsibilities for capital markets origination in Korea and Greater China, respectively.

  • UMC pushes it again with negative-yield CB

    IFR Asia 698 - May 21, 2011

    United Microelectronics Corp, the world’s second-largest contract chipmaker, last week priced a five-year convertible bond – the first Taiwan dollar-linked and US dollar-settled paper. The zero-coupon US$500m deal paid a negative yield, no coupon and still priced with a high conversion premium, underscoring how equity-linked structures are becoming more aggressive as issuers take advantage of growing investment appetite.

  • UOL whispers

    IFR Asia 698 - May 21, 2011

    Property developer UOL Group was whispered to be in the market as a potential issuer, but some bankers said a deal was unlikely in the near future. If a deal materialises, it will be the first issue off a S$1bn multicurrency MTN programme OUL set up last July with DBS Bank and United Overseas Bank as arrangers and dealers.

  • US still the goal

    IFR Asia 698 - May 21, 2011

    Nobao Renewable Energy is looking to raise up to US$145.6m through the sale of 11.2m ADS at an indicative range of US$11–$13 apiece in a NYSE IPO. The price range represents a 2012 P/E of 4.1–4.8 times. There will be a concurrent private placement of US$30m to GIC. Pricing is slated for May 26. Citigroup, Deutsche Bank, Goldman Sachs and UBS are arranging

  • Volatile commodities spell danger for risk assets

    IFR Asia 698 - May 21, 2011

    Spiking volatility in global commodities may be just the first sign of things to come. Continued volatility in the days and weeks to come could put the US dollar-funded carry trade in jeopardy – especially if the greenback continues to strengthen – leading to far larger corrections lasting months rather than days or weeks.

  • Woori enlarges

    IFR Asia 698 - May 21, 2011

    South Korean lender Woori Bank’s three-tranche US dollar term loan has been increased in size to US$227m from US$180m after six banks joined general syndication. Funds are for general corporate purposes and signing of the facility is expected shortly.

  • Xinyi seeks more

    IFR Asia 698 - May 21, 2011

    Chinese automobile glass-maker Xinyi Glass Holdings is sounding banks for a four-year loan of about HK$1bn (US$129m), for which Citigroup and Taipei Fubon Commercial Bank are expected to be mandated. A few other banks may be mandated as well. Price talk is around 150bp–160bp.

  • Youku follows on

    IFR Asia 698 - May 21, 2011

    Youku.com, China’s popular internet television platform, has raised US$592.6m from its follow-on offering. The deal, comprising 12.3m ADS (66.7% primary/33.3% secondary), was priced at US$48.18, representing a discount of 2.85% to the company’s closing of US$49.59 on May 19.

  • Yu starts at ING

    IFR Asia 698 - May 21, 2011

    Anita Yu started on May 16 at ING Bank as a director in the loan syndications group. Based in Hong Kong, Yu reports to Tibor Papp, the bank’s head of syndications for Asia Pacific.

IFRMarkets.com