Equity Capital Markets
A total of $$1.8 billion has been raised in the Asian equity capital markets this week, up from the $1.1 billion raised in the same period last week.
This week’s volume doesn’t yet include the estimated $1.1 billion Bank of Tianjin is slated to price later today. If completed successfully, the deal will be the biggest IPO globally so far this year and also the biggest IPO to list on Hong Kong stock exchange since Huatai Securities’ $5.0 billion IPO in May, 2015.
The largest deal of the week is AVIC Electromechanical Systems’s $308 million follow-on through Guotai Junan Securities and AVIC Securities and brings A-share ECM volume to $33.0 billion so far this year, up 41% year-on-year.
GF Securities continues to lead the bookrunner ranking with $4.9 billion in 2016 YTD, while CITIC Securities and Guosen Securities follow with $3.0 billion and $2.5 billion, respectively.
| Asia (ex Japan) ECM Bookrunner Rankings - 2016 YTD | ||||
| Bookrunner | Deal Value ($m) | No. | %share | |
| 1 | GF Securities | 4,916 | 13 | 11.2 |
| 2 | CITIC Securities | 2,989 | 14 | 6.8 |
| 3 | Guosen Securities | 2,540 | 8 | 5.8 |
| 4 | Haitong Securities | 2,143 | 13 | 4.9 |
| 5 | Deutsche Bank | 2,008 | 9 | 4.6 |
| 6 | Guotai Junan Securities | 1,819 | 14 | 4.1 |
| 7 | China International Capital Corp | 1,662 | 7 | 3.8 |
| 8 | Morgan Stanley | 1,651 | 10 | 3.8 |
| 9 | Sinolink Securities | 1,587 | 2 | 3.6 |
| 10 | Huatai Securities | 1,369 | 8 | 3.1 |
Debt Capital Markets
Seven issuers have tapped the Asia G3 bond markets this week for a combined total of $4.0 billion, down from the $6.0bn via six deals in the same period last week.
The most notable transaction of the week is Shinhan Bank’s $500 million Basel-III compliant bond through bookrunners Mizuho, JPMorgan, Morgan Stanley, BNP Paribas, HSBC and Bank of America Merrill Lynch. It’s the issuer’s first ever Basel III compliant bond and bring total Basel III compliant bond volume in Asia (ex Japan) to $5.2 billion via 18 deals, down from $15.1 billion from the same period last year.
G3 Basel III compliant bonds in the region are quite rare, there were only six deals last year for a total of $10.5 billion. This year so far, United Overseas Bank’s $500 million bond on March 9th. In 2015 was the only other G3 Basel III compliant bond.
HSBC leads the G3 DCM bookrunner ranking in the region in 2016 YTD with $4.5 billion while Citi and JPMorgan follow with $3.3 billion and $2.8 billion respectively.
| Asia (ex Japan) G3 DCM Bookrunner Rankings - 2016 YTD | ||||
| Bookrunner | Deal Value ($m) | No. | %share | |
| 1 | HSBC | 4,507 | 25 | 11.5 |
| 2 | Citi | 3,293 | 15 | 8.4 |
| 3 | JPMorgan | 2,838 | 13 | 7.3 |
| 4 | Bank of America Merrill Lynch | 2,667 | 11 | 6.8 |
| 5 | Standard Chartered Bank | 2,535 | 11 | 6.5 |
| 6 | Morgan Stanley | 1,946 | 8 | 5.0 |
| 7 | Deutsche Bank | 1,599 | 8 | 4.1 |
| 8 | Bank of China | 1,512 | 6 | 3.9 |
| 9 | BNP Paribas | 1,322 | 9 | 3.4 |
| 10 | Credit Suisse | 1,215 | 8 | 3.1 |
