Equity Capital Markets
Asia (ex-Japan) ECM volume stands at $1.0bn via 15 deals so far this week (seven IPOs, six follow-ons and two convertibles), compared to the $928m via 14 deals completed in the previous week.
On February 27, Chinese issuer Shandong Linglong Tyre completed a $317m convertible via Essence Securities on Shanghai Stock Exchange, this is the largest Asia (ex-Japan) ECM transaction for the week.
Shanghai Stock Exchange (SSE) ECM volume has reached $9.9bn via 30 deals this YTD, down 44% from $17.5bn raised via 63 deals in 2017 YTD. Convertible accounts for 46% of the total issuance with $4.5bn via 5 deals in 2018 YTD, followed by follow-on with 3.2bn via 13 deals.
Goldman Sachs leads the ECM league table with $5.2bn this YTD, Huatai Securities Co Ltd remains second on $3.4bn, and Citi keeps the third place with $2.5bn.
Debt Capital Markets
Asia (ex-Japan) G3 DCM volume this week increased to $11.2bn via 22 deals, close to a triple of $3.9bn raised last week via 4 deals.
This week’s largest deal goes to Bank of China (Hong Kong), a 3-tranche bond priced at $2.25bn via a consortium of 8 bookrunners. The second largest deal also goes to a Chinese bank branched in Hong Kong – Industrial Bank (Hong Kong) – a 4-tranche bond priced at $1.7bn via a consortium of 17 bookrunners, with the use of proceeds go to replenish working capital and funding its overseas business expansion. Whilst 3 of the tranches are USD-denominated, the last is a debut EUR-denominated issuance of the bank.
Activity from China picks up again following the Chinese New Year, particularly its real estate market. Agile Group Holdings issued 2 separate perpetual bond two days in a row, with UBS as sole bookrunner in one of the issuances. Modern Land (China) issued a green bond to fund its existing projects and businesses, and Shui On Development issued an Offshore RMB bond to repay debts and fund capital expenditures.
HSBC leads Asia (ex-Japan) G3 DCM league table in 2018 YTD with $4.3bn, Citi remains second with $3.6bn, followed by Bank of China with $3.4bn.
