Equity Capital Markets
A total of $1.7 billion has been raised in the equity capital markets so far this week through 19 deals, up slightly on the $1.4 billion raised in the same period last week.
The largest deal of the week was a $421 million follow-on for SK Hynix through bookrunners Citi, KDB Daewoo Securities and Samsung Securities.
South Korean ECM volume stands at $5.6 billion so far this year, down 16% year-on-year and the lowest YTD level since 2008 ($5.2 billion). Despite the fall in year-on-year volume, deal volume and activity reached $1.4 billion in September via 14 deals, the highest monthly level since February 2013 ($1.4 billion through nine deals). October volume stands at $556 million via four deals.
Notable deals that are slated to price next week include Korea Gas Corp’s follow-on for an estimated $627 million and Travellers International Hotel Group is expected to raise a $431 million IPO.
Goldman Sachs continues to lead the league table ranking with $13.5 billion in 2013 YTD, followed by UBS and Credit Suisse.
Debt Capital Markets
Nine issuers have tapped the Asian G3 debt capital markets this week for a combined total of $7.0 billion, up from $1.9 billion raised in the same period last week and is the highest weekly volume since May 13th ($7.6 billion).
Volume was driven by two simultaneous trades by Sinopec Group Overseas Development for a combined total of $3.5 billion. The larger of the two and also the biggest deal of the week was a three tranche US-denominated bond for $2.8 billion through bookrunners Mizuho, JPMorgan, Goldman Sachs, Industrial & Commercial bank of China, HSBC, China Construction Bank, SG CIB, Bank of China, Citi and Bank of America Merrill Lynch. The deal stands as the sixth biggest G3 offering in the region so far this year.
The second deal for the issuer was a $741 million euro-denominated bond through bookrunners Standard Chartered Bank, JPMorgan, UBS, Goldman Sachs, Deutsche Bank, HSBC, SG CIB and Citi.
Asian issuers have tapped the euro-denominated bond markets for a record $6.9 billion through 13 deals so far this year, surpassing previous annual volume and deal activity and up from $3.1 billion in 2012 YTD.
Another notable deal to complete this week was Canara Bank (London) tapping the market for $499 million through bookrunners JPMorgan, BNP Paribas, HSBC, Barclays, Citi, Bank of America Merrill Lynch and Credit Agricole CIB. This marks the first G3 bond from an Indian issuer since Indian Oil Corp tapped the market for $500 million in July 2013.
HSBC leads the league table ranking with $14.4 billion in 2013 YTD, followed by Goldman Sachs and Deutsche Bank.