Equity Capital Markets
Softbank Group completed its $5.5 billion mandatory exchangeable offer this week in what is the largest transaction in the region this week. This is the equity portion of the estimated $8.9 billion the company is raising by selling part of its stake in Alibaba Group Holding. The deal is the also the largest transaction globally so far this year and the biggest mandatory exchangeable offer on record.
On the back of this deal, the Asian equity capital markets volume have risen to $8.1 billion this week through 15 transactions, more than double the $3.0 billion raised in the same period last week and is the highest weekly level this year after the week of January 4th ($8.6 billion). Despite the weekly increase, Asia (ex Japan) ECM volume dropped 28% year-on-year to $92.9 billion in 2016 YTD.
CITIC Securities continues its lead in the league table ranking with $6.8 billion in 2016 YTD. Followed by GF Securities with $6.5 billion. Morgan Stanley and Deutsche Bank have both jumped to third and fourth place, thanks to the Softbank transaction, with $$6.2 billion and $5.9 billion, respectively.
| Asia (ex Japan) ECM Bookrunner Rankings - 2016 YTD | ||||
| Bookrunner | Deal Value ($m) | No. | %share | |
| 1 | CITIC Securities | 6,752 | 27 | 7.3 |
| 2 | GF Securities | 6,521 | 24 | 7.0 |
| 3 | Morgan Stanley | 6,199 | 21 | 6.7 |
| 4 | Deutsche Bank | 5,917 | 20 | 6.4 |
| 5 | Huatai Securities | 4,580 | 14 | 4.9 |
| 6 | Haitong Securities | 4,450 | 22 | 4.8 |
| 7 | Guosen Securities | 3,440 | 12 | 3.7 |
| 8 | Guotai Junan Securities | 3,424 | 24 | 3.7 |
| 9 | Southwest Securities | 3,237 | 16 | 3.5 |
| 10 | China International Capital Corp | 2,996 | 11 | 3.2 |
Debt Capital Markets
Only two deals have priced in the G3 debt capital markets so far this week, raising $351 million, compared to $10.9 billion through 13 deals in the same period last week.
Golden Legacy’s $350 million high yield trade through bookrunners HSBC and Citi is the largest deal this week. The deal is also the third largest high yield bond in Asia (ex Japan) so far this year and brings regional high yield bond issuance to $2.9 billion, the lowest YTD total since 2009 ($991 million) and less than half the $7.6 billion raised in the same 2015 period.
HSBC remains at the top of the league table ranking with $10.3 billion while Bank of America Merrill Lynch and Citi follow with $7.4 billion and $7.3 billion, respectively.
| Asia (ex Japan) G3 DCM Bookrunner Rankings - 2016 YTD | ||||
| Bookrunner | Deal Value ($m) | No. | %share | |
| 1 | HSBC | 10,325 | 58 | 11.3 |
| 2 | Bank of America Merrill Lynch | 7,381 | 31 | 8.1 |
| 3 | Citi | 7,283 | 39 | 8.0 |
| 4 | JPMorgan | 5,151 | 29 | 5.6 |
| 5 | Standard Chartered Bank | 4,562 | 24 | 5.0 |
| 6 | Bank of China | 3,913 | 20 | 4.3 |
| 7 | BNP Paribas | 3,533 | 17 | 3.9 |
| 8 | Deutsche Bank | 3,397 | 18 | 3.7 |
| 9 | Morgan Stanley | 3,017 | 15 | 3.3 |
| 10 | Goldman Sachs | 2,954 | 12 | 3.2 |
