Equity Capital Markets
A total of $7.0 billion has been raised in the Asian equity capital markets this week through 18 transactions, the highest weekly volume since the week of May 13th ($7.0 billion) and more than triple the $1.9 billion raised in the same period last week.
Volume was driven by China Merchant Bank’s $4.5 billion A-share rights issue* through bookrunners China International Capital and Goldman Sachs. The H-share share portion of $1.0 billion is expected to price at the end of September.
The deal already stands as the third largest ECM transaction globally and the fifth biggest Asia (ex Japan) rights issue on record.
Asia (ex Japan) rights issue volume stands at $12.0 billion in 2013 YTD, up from the $6.7 billion raised in the same period in 2012. This contrasts with overall ECM volume in the region that has fallen 10% over the same period to $102.0 billion,
The other notable transaction of the week was Bank of America Merrill Lynch’s $1.5 billion sell-down of China Construction Bank in what is the sixth largest Chinese ECM transaction so far this year.
On the back of those two deals, China International Corp and BofA Merrill have climbed up the top 10 in the league table ranking to ninth and seventh place, respectively for 2013 YTD.
Goldman Sachs continues to lead the league table ranking with $12.2 billion in 2013 YTD, followed by UBS and JPMorgan, respectively.
*Includes placements and open offers
Debt Capital Markets
The Asian G3 debt capital markets have also seen a revival this week with a total of $3.0 billion issued through two deals, up from $657 million raised last week.
Both the deals hail from SSA issuers, the larger of which is a $2.0 billion trade for Asian Development Bank through bookrunners Goldman Sachs, Deutsche Bank, Morgan Stanley and Nomura. The issuer has tapped the G3 bond markets for a total of $6.5 billion so far this year, up 11% year-on-year, and marks the first trade for the issuer since May 22 ($1.0 billion).
The other notable transaction was a $1.0 billion trade for Republic of Korea through bookrunners Goldman Sachs, Deutsche Bank, HSBC, KDB, Woori Investment & Securities and Citi. This marks the first time the issuer has tapped the G3 bond market since April 2009 ($3.0 billion).
Asia (ex Japan) SSA G3 bond volume has reached $19.8 billion in 2013 YTD, down 8% year-on-year but the third largest YTD level on record behind 2009 ($22.6 billion) and 2012.
Both those deals helped Deutsche Bank climb up two notches in the league table ranking to second place while HSBC continues to lead the league tables with Goldman Sachs at third place.
