Yap has a background in the field, with a particular focus on origination of corporate event and leveraged financings for private equity.
ôThe relocation of Mr Yap demonstrates our commitment to building a leading leveraged and acquisition finance franchise in Asia-Pacific, and will enhance our ability to deliver innovative financing solutions to our key corporate and financial sponsor clients,ö says Simons in a written statement.
HSBC also said it would move an associate, Abhinav Joshi, from London and has hired an analyst, Jennifer Lai, to join the team.
HSBC has been strengthening its capabilities in the field, both via transfers and hires from other banks. In March, Simons joined the bank from Credit Suisse where he held a similar position. Simons joined with a mandate to build HSBCÆs business in event-driven investment grade and non-investment grade financing in Asia, including leveraged buyouts and corporate acquisition financings, refinancings, recapitalisations, restructurings and bridge financing.
Then, in October, HSBC relocated Jeff Bennett as managing director of leveraged and acquisition finance in Asia-Pacific from Europe where he held the same position. Bennett also reports to Simons.
Since 2006 a number of banks have been building leveraged finance capabilities in the region, as the activity by financial sponsors and increasingly aggressive strategic M&A precipitates the need for the product. ABN AMRO, Calyon, Citi, JPMorgan and others have announced additions to their leveraged finance teams. Banks are using a dual-pronged strategy of moving people from the US, Europe and Australia û all markets which have more developed leveraged finance sectors - and poaching from the competition.
The credit crisis in subprime-affected markets has not caused any significant slowdown in deals in this part of the world. Some financial sponsors are still flush with Asia-focused money. Strategic acquirers are being attracted, both by depressed valuations in target markets and the availability of assets which are a strong strategic fit, to pursue acquisitions. Arranger banks are expected by clients to tap into available funding sources to raise money for their deals. In Taiwan, for example, local banks are becoming a critical source of funding for both financial sponsor and strategic deals.