Equity Capital Markets
A total of $4.2 billion has been raised by Asia ex-Japan issuers in the equity capital markets so far this week through 31 transactions.
This is up significantly on the $1.8 billion raised through 25 issues in the same period last week and brings the region’s volume to $124.4 billion so far this year, up from $94.7bn raised in the same 2013 period.
The largest deal of the week is Chinese issuer Sichuan Hongda’s $626 million follow-on through bookrunner New Times Securities. It is also the third largest A-share follow-on priced so far this quarter, behind Soochow Securities’ $833 million issue (August 7) and Beijing Urban Construction Investment & Development’s $634 million follow-on (August 22).
Another notable deal this week is CSPC Pharmaceutical Group’s $528 million follow-on in Hong Kong through bookrunners UBS, Morgan Stanley and Goldman Sachs. The deal is the second largest Asia ex-Japan ECM transaction in the healthcare sector in 2014 YTD, behind Luye Pharma Group’s $878 million IPO in July.
Chinese issuers account for 65% of total Asia ex-Japan equity capital markets volume so far this year with $80.5 billion, up 69% compared to the same 2013 period ($47.5 billion).
Goldman Sachs continues to top the league table ranking with $7.8 billion so far in 2014, followed by UBS and Credit Suisse.
Debt Capital Markets
Three Asian issuers have tapped the G3 debt capital markets for $1.5 billion so far this week, up from $786 million raised in the same period last week.
The largest deal of the week is Charming Light Investments’ $1.0 billion bond through bookrunners Standard Chartered Bank, Morgan Stanley, Industrial & Commercial Bank of China, Bank of Communications and Bank of China. The deal marks the largest G3 bond from Chinese issuer since Export-Import Bank of China’s $3.0 billion issue in July this year.
Asia ex-Japan G3 bond issuance from the finance sector has reached $48.5 billion so far in 2014, the highest YTD level on record and up from $26.1 billion raised in the same 2013 period. China leads with a record $14.8 billion and accounts for 31% of the region’s finance sector G3 bond volume so far this year, followed by South Korea with $13.0 billion (27% market share).
The top three banks remain unchanged in the league table rankings with HSBC taking $16.3 billion, followed by Citi and Deutsche Bank, respectively.
