Equity Capital Markets
This week saw a total of $1.9 billion raised in the equity capital markets in Asia (ex Japan) through six deals following the lull experienced last week due to the Lunar New Year.
The biggest deal of the week was Samsung Engineering’s $1.1 billion rights offer through bookrunners NH Investments & Securities and Korea Investment & Securities. The deal is also the largest South Korean ECM transaction since Cheil Industries’ $1.4bn IPO in December 2014.
Asia (ex Japan) rights offers has increased to $4.9 billion so far this year, the fastest start to a year on record and more than double the $2.4 billion raised in the same period last year. The region accounts for more than half the global rights issuance and has pushed global issuance to $8.6 billion in 2016 YTD, the highest YTD volume since 2013 ($13.6bn).
GF Securities leads the bookrunner ranking with $4.6 billion in 2016 YTD, while CITIC Securities and Guosen Securities follow with $2.4 billion and $2.1 billion, respectively.
* Includes Rights Issues, Guaranteed Preferential Allocations
| Asia (ex Japan) ECM Bookrunner Rankings - 2016 YTD | ||||
| Bookrunner | Deal Value ($m) | No. | %share | |
| 1 | GF Securities Co Ltd | 4,579 | 9 | 13.1 |
| 2 | CITIC Securities | 2,427 | 8 | 7.0 |
| 3 | Guosen Securities Co Ltd | 2,137 | 6 | 6.1 |
| 4 | Haitong Securities Ltd | 2,038 | 11 | 5.8 |
| 5 | Deutsche Bank | 1,774 | 7 | 5.1 |
| 6 | China International Capital Corp Ltd | 1,662 | 7 | 4.8 |
| 7 | Sinolink Securities Co Ltd | 1,587 | 2 | 4.6 |
| 8 | Huatai Securities Co Ltd | 1,307 | 7 | 3.8 |
| 9 | Guotai Junan Securities Co Ltd | 1,263 | 10 | 3.6 |
| 10 | Industrial Securities Co Ltd | 1,146 | 6 | 3.3 |
Debt Capital Markets
The Republic of the Philippines’ $2.0 billion sovereign bond is the only deal to complete in the G3 debt capital markets so far this week and is the largest G3 syndicated sovereign bond issuance since the Republic of Indonesia’s $3.5 billion bond in December last year.
The deal brings G3 bond issuance in Asia (ex Japan) to $20.3 billion in 2016 so far, down 47% year-on-year and the lowest total for the period since 2011 ($15.0 billion).
HSBC continues to lead the G3 DCM bookrunner ranking in the region in 2016 YTD with $2.5 billion while Bank of America Merrill Lynch and JPMorgan follow with $1.9 billion and $1.2 billion, respectively.
| Asia (ex Japan) G3 DCM Bookrunner Rankings - 2016 YTD | ||||
| Bookrunner | Deal Value ($m) | No. | %share | |
| 1 | HSBC | 2,539 | 13 | 12.5 |
| 2 | Bank of America Merrill Lynch | 1,918 | 7 | 9.5 |
| 3 | JPMorgan | 1,218 | 7 | 6.0 |
| 4 | Morgan Stanley | 1,190 | 4 | 5.9 |
| 5 | Standard Chartered Bank | 1,103 | 7 | 5.4 |
| 6 | Bank of China | 847 | 5 | 4.2 |
| 7 | Credit Suisse | 817 | 5 | 4.0 |
| 8 | TD Securities Inc | 810 | 1 | 4.0 |
| 9 | Citi | 801 | 6 | 4.0 |
| 10 | UBS | 611 | 5 | 3.0 |
