Equity capital markets
Activity in the equity capital markets reached $3.3 billion this week through 12 issues, more than triple the $1 billion raised through 17 deals during the previous week and marks the busiest weekly volume since the week of July 9 ($3.9 billion through 36 deals). Average deal size this week totalled $274 million, the highest level since the week of March 5 ($286 million).
The biggest deal of the week was a $1.3 billion follow-on for Hainan Airlines through bookrunners China Investment Corp, Chinalion Securities, China Galaxy Securities in what was the third-biggest ECM transaction in the transportation sector in the region and the only $1 billion-plus ECM deal to price since IHH Healthcare completed its $2.1 billion deal on July 12.
Swire group’s $647 million sale of a stake in Swire Properties, through bookrunners Morgan Stanley, Bank of China and HSBC, was the second-biggest deal of the week in Asia, and also the second-largest ECM transaction in Hong Kong so far this year.
The other notable transaction of the week was a $525 million IPO for Far East Hospitality Trust through bookrunners DBS, Goldman Sachs, HSBC and OCBC. The deal marks the largest Singaporean issue since K-Reit Asia completed a $768 million follow-on in December 2011.
Goldman Sachs continues to lead the league table ranking with $7 billion, followed by UBS and Citi.
Debt capital markets
Three Indian borrowers have tapped the Asian G3 debt capital markets for $1.6 billion so far this week, more than double the $687 million raised last week.
The biggest deal of the week was a $750 million corporate IG bond for ICICI Bank through Citi, HSBC, J.P. Morgan, Bank of America Merrill Lynch and Standard Chartered. Indian Overseas Bank also completed a $497 million trade this week through bookrunners Barclays, Citi, Deutsche Bank, HSBC, J.P. Morgan, Royal Bank of Scotland and Standard Chartered.
Indian issuers have tapped the G3 debt capital markets for $5.4 billion in 2012 year-to-date through nine trades, down from the $8.2 billion through 18 deals in the same 2011 period. Five out of the nine trades have been completed in the second half of the year (to date), raising a total of $3.3 billion, the highest quarterly level since 2Q 2011 ($4.1 billion).
The top three banks in the league table remain unchanged with HSBC taking $12.2 billion, followed by J.P. Morgan and Citi.
