Equity Capital Markets
A total of $2.9 billion has been raised in the equity capital markets so far this week through 18 deals, down 9% on the $3.2 billion raised in the same period last week and brings YTD issuance to $59.3 billion in 2014, the highest YTD level since 2011 ($68.2 billion) and up 3% year-on-year.
The biggest deal of the week was a $1.7 billion rights issue for New World Development through bookrunners HSBC and Standard Chartered. The deal is the third largest ECM transaction in Asia ex-Japan so far this year.
Asia ex-Japan rights issue volume has reaches $5.3 billion in 2014 YTD, up 55% on 2013 YTD ($3.4 billion) and the highest YTD level since 2011 ($7.3 billion). In spite of the increase, overall follow-on volume has fallen 15% year-on-year to $38.9 billion in 2014 YTD.
In other notable news this week, WH Group withdrew its planned $1.6 billion IPO - the second biggest IPO to be pulled after AS Watson’s IPO. The deal was already reduced from its initial estimated IPO size of $5.3 billion and brings Asia ex-Japan withdrawn new listings volume to $9.3 billion in 2014 YTD, the highest YTD level since 2010 ($13.6 billion) and 32% on 2013 YTD ($7.1 billion).
Goldman Sachs continues to lead the league table ranking with $4.5 billion, followed by China Securities and HSBC.
Debt Capital Markets
Eight issuers have tapped the Asia ex-Japan G3 bond markets for $7.9 billion so far this week, down slightly on the $9.7 billion raised in the same period last week. However, it is still the fourth strongest week in 2014 YTD after the week of January 6 ($12.0 billion), the week of April 7 ($8.2 billion) and last week ($9.7 billion).
State Grid Overseas Investment (2014)’s $3.5 billion bond through a consortium of 11 bookrunners was the largest deal of the week. The deal is also the fourth largest G3 issuance in the region so far this year.
Another notable deal to come to market this week was a $1.5 billion trade for Lenovo Group through a consortium of 13 bookrunners. The deal is the debut international bond for Lenovo and is also the largest unrated bond on record in Asia ex-Japan.
Chinese issuers have raised a record $33.4 billion in the G3 debt capital markets in 2014 YTD, up 42% year-on-year.
Citi leads the league table ranking with $9.7 billion, followed by HSBC and Deutsche Bank.
