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INTERNATIONAL FINANCING REVIEW ASIA

JANUARY 5 2019 ISSUE 1072 www.ifrasia.com

Indian regulator points finger at IPO bankers for slump in new listings

Hong Kong’s biotech ambitions take a knock as Stealth listing disappears

Thai bonds set for strong start as issuers rush out ahead of elections, rate hikes

PLUS: ANNUAL LEAGUE TABLES

BONDS EQUITIES/BONDS BONDS PEOPLE & MARKETS Philippines explores State of India High-yield issuers Poor second half sterling debut in CFO readies capital lead the way in drags investment push to diversify boost as credit 2019 after cautious banking fees funding sources growth recovers rebound continues lower in 2018 05 07 08 13 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

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IPO interference With one regulator demanding discounts and another ARGUINGûAGAINSTûTHEM û%#-ûBANKERSûCANûEXPECTûTHEIRû sia's equity underwriters are caught between a approach to pricing to come under more scrutiny in 2019. rock and a hard place. After a dismal end to 2018, More regulatory interference, however, would be a step A the pressure is on to reopen markets. The right backwards: asking underwriters to justify prices may be approach, however, seems to be open to debate. reasonable, but authorities must allow market forces to %QUITYûOFFERINGSûINû!SIAû0ACIlC ûEX *APAN ûPLUNGEDûMOREû determine the price of capital. THANûûINûTHEûlNALûQUARTERûOFûLASTûYEAR ûTAKINGûTHEûSHEENû off an otherwise encouraging year. Some IPO hopefuls have defected from Hong Kong to Coming of age New York, where markets remain open for business even in intense volatility (assuming the federal government sia's bond markets are heading for a testing SHUTDOWNûCOMESûTOûANûEND û-OSTûOFû3OUTH %ASTû!SIAûISû time. After years of breakneck growth, a volatile closed for new listings, with Indonesia, Malaysia and A start to 2019 inevitably raises questions over the Singapore all dormant for months. India hasn't hosted a sustainability of the region's debt capital markets. single mainboard IPO since September. Can Asia's growing economies still access credit when The solution, according to India's securities regulator, is global investors are running scared? Or is the region for bankers to bring deals to market at a lower price. That hurtling towards a credit squeeze that will drive dozens of borrowers into default. Despite the wild swings in stocks, currencies and US Treasuries at the start of 2019, the early signs for Asian Aussie IPOs are in fact far BONDSûAREûACTUALLYûENCOURAGINGû4WOûHIGH YIELDû#HINESEû property developers have already printed US dollar bonds, MOREûEFlCIENTûTHANûNEWûLISTINGSû albeit at short tenors of no more than two years. The in the US, the world’s biggest turmoil of October and November has subsided, and it is clear that some investors see value at today's prices. capital market. "ANKERSûREPORTûAûPACKEDûPIPELINEûFORûTHEûlRSTûQUARTER û thanks in part to a backlog from the end of 2018. At a time when China's economy is once again causing concern, a RUNûOFûWELL RECEIVEDûNEWûISSUESûWOULDûBEûAûSTRONGûVOTEûOFû would certainly get investors' attention, but it would also CONlDENCEûINûTHEûREGIONgSûFUNDAMENTALSû pose different problems – especially in the state sector, For Asia's bond markets to really come of age, however, WHEREûOFlCIALSûAREûUNDERSTANDABLYûWORRIEDûABOUTûSELLINGû ISSUERSûWILLûNEEDûTOûADJUSTûTHEIRûEXPECTATIONSû(AVINGûHADû public assets too cheap. things their own way in recent years, with yields and 4HEREgSûALSOûTHEûCOUNTER ARGUMENTû)Nû!USTRALIA ûTHEûHEADû SPREADSûSEEMINGLYûHEADINGûEVERûTIGHTER û!SIANûINVESTMENT of the securities commission has complained that IPOs grade issuers have seen credit spreads jump to their widest and share placements give investors too sweet a deal. After SINCEû&EBRUARYûû studying 500 ECM deals over four years, ASIC found IPOs )NûTHATûCONTEXT û3TATEû"ANKûOFû)NDIAgSûPLANSûTOûSELLû53û RETURNEDûANûAVERAGEûlRST DAYûGAINûOFûûANDûPLACEMENTû dollar bonds deserve close attention. Indian issuers – shares 5.4%. especially from the public sector – have a reputation for This line of enquiry is especially worrying. All things tight pricing and trying to game investors by printing only being equal, a zero discount on a share placement will hurt when rates or spreads are at their tightest. ISSUERSgûCHANCESûOFûFUNDINGûEXPANSION ûANDûTHEûRISKSûAROUNDû That kind of approach will not go down well in current a company with no track record should also command a market conditions. But if SBI can position itself as a bigger discount for IPO investors. responsible issuer with a sensible approach to pricing, it has !VERAGEû53ûlRST DAYûRETURNSûLASTûYEARûWEREû û AûGOODûCHANCEûOFûREOPENINGûTHEûMARKETûFORû)NDIAgSûBEATEN SUGGESTINGûTHATû!USSIEû)0/SûAREûINûFACTûFARûMOREûEFlCIENTû DOWNûlNANCIALûSECTORûnûANDûSERVINGûASûANûEXAMPLEûFORûOTHERû than the world's biggest capital market. Asian issuers.

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INTERNATIONAL FINANCING REVIEW ASIA CONTACTS

EDITOR EDITOR, IFR COMPANY INDEX Jiangsu Zhongguancun Science Park Holding Group 26 Steve Garton -ATTHEWû$AVIES Adelaide Airport 21 Jiangsu Zijin Rural Commercial Bank 34 ûû û ûû Aerospace Precision Products 35 Jiayin Group 32 steve.garton@refinitiv.com Agile Group Holdings 35 Jinko Power Technology 34 DESK EDITOR AII Holding 50 JK Cement 40 Kangde Xin Composite Material Group 25 HEAD OF ASIAN CREDIT 6INCENTû"ABY Air Busan 48 Air India 40 Kerry Logistics Network 51 $ANIELû3TANTON KKR & Co 22 SUB-EDITOR Aircastle 46 ûû Anand Rathi Wealth Services 40 Korea Midland Power 47 $AVIDû(OLLAND Anshan Hifichem 34 Korea National Oil Corp 47 ASIA EQUITIES EDITOR Antony Waste Handling Cell 40 Kumpulan Perangsang Selangor 44 HEAD OF PRODUCTION AP Thailand 50 Kunshan Rural Commercial Bank 34 Fiona Lau Kunshang Huguang Auto Harness 35 Victor Ng APRIL International Enterprise 46 ûû Asia Cube Global Communications 35 Lao Viet Bank 43 PRODUCTION ASSISTANT Ata Online (Beijing) Education Technology 35 Longfor Group Holdings 36 DEPUTY HEAD OF ASIAN CREDIT Australian Office of Financial Management 21 Macrolink Holding 26 Mike Tsui Australian Pharmaceutical Industries 23 Maoyan Entertainment 30 Frances Yoon Axis Bank 39 Medco Energi Internasional 41 HEAD OF GLOBAL ADVERTISING AND ûû Bangchak 50 Meten Education 31 SPONSORSHIP Bank of Baroda 37 Metrobank Card 45 DEPUTY EQUITIES EDITOR, ASIA Bank of China Group Investment 28 Metropolitan Bank & Trust 45 3HAHIDû(AMIDû Bank of Jinzhou 32 Ming Yang Smart Energy 34 S. Anuradha ûû Bank of the Lao People’s Ming Yang Smart Energy Group 34 ûû Democratic Republic 43 Modern Land (China) 27 IFR ASIA AWARDS MANAGER Bank Syariah Mandiri 42 Mr DIY 45 Bank Tabungan Negara 41 SENIOR CREDIT CORRESPONDENT, ASIA MYOB Group 22 0AULû(OLLIDAY Barito Pacific 41 National Bank for Agriculture and +ITû9INû"OEY û ûû Beijing Capital Land 28, 36 Rural Development 39 ûû Beijing Enterprises Group (BVI) 28 National Highways Authority of India 38 GLOBAL ADVERTISING Berli Jucker 6 National Housing Bank 38 BES Engineering 48 National Seed Corporation India 40 ASIA PACIFIC BUREAU CHIEF, LOANS PRODUCTION MANAGER BOC International (China) 33 Ningbo Water Meter 34 0RAKASHû#HAKRAVARTI 'LORIAû"ALBASTROû Boonthavorn Ceramic 2000 51 Noble Group 8 BPRL International 39 ûû û ûû Orsted 49 Cache Logistics Trust 47 Petron 45 Cadila Healthcare 37 Philippine Stock Exchange 46 SENIOR REPORTERS: HONG KONG SUBSCRIPTION SALES ENQUIRIES CALC PDP 5 29 Power Grid Corp of India 38 4HOMASû"LOTT China, Hong Kong, Taiwan, Korea, Japan Centuria Industrial REIT 24 Qantas Airways 20 Chandra Asri Petrochemical 42 ûû !LANû7ONG Qingdao Jiaozhou Bay Development 26 Changde Urban Construction and Qingdao Port International 33 ûû Investment Group 24 #AROLû#HAN RailTel Corporation India 40 Changzhou Kaidi Electrical 35 Redsun Properties Group 27 ûû India, Singapore, Malaysia, Thailand, Charter Hall Long WALE REIT 24 Republic of Hungary 28 Indonesia and Australia Chengdu Expressway 30 Republic of the Philippines 5 SENIOR REPORTER: SYDNEY Chiahui Power 48 Retail Food Group 22 3AMANTHAû(ARRIS China Aircraft Leasing Group Holdings 29 *OHNû7EAVERS Reward Science and Technology Industry Group 30 ûû China Aoyuan Group 8, 25 RHT Health Trust 46 ûûû China Communications Construction Company 26 Ronshine China Holdings 27 SUBSCRIPTION ACCOUNT MANAGER China Everbright Greentech 36 Rural Electrification Corp 38 SENIOR ANALYST: TOKYO China Kepei Education Group 31 Sarana Multigriya Finansial 41 0IAû"ATUAN China Master Logistics 34 Takahiro Okamoto Security Bank 45 ûû China Molybdenum 29 Seek 23 ûû China Network Systems 48 Shaanxi Xixian New Area Fengxi New City CLIENT SERVICES China Railway Special Cargo Services 33 Development and Construction (Group) 27 ASIAN CREDIT CORRESPONDENT China Tobacco International (HK) Company 31 [email protected] Shagang South-Asia (Hong Kong) Trading 29 China ZhengTong Auto Services Holdings 29 Shandong Imegaware Network Technology 35 +RISHNAû-ERCHANT Chongqing Sanfeng Environment Group 34, 35 WEBSITE Shanghai Golden Union Business Management 35 ûû CIFI Holdings (Group) 24 Shanghai Huafon Aluminium 35 www.ifrasia.com CIMC Vehicles 31 Shanghai Junshi Biosciences 32 CMB International Leasing Management 30 REPORTER: HONG KONG Shanghai Yongguan Adhesive Products 34 CMOC Mining 29 EMAIL ADDRESSES Shangyu Urban Construction Hong Kong 27 #ANDYû#HAN Columbus Capital 21 Shaoxing City Investment Group 27 lRSTNAMELASTNAME RElNITIVCOM Corporation Bank 37 ûû Shriram Transport Finance 37 Country Garden Holdings 28 Sichuan Energy Investment Development 32 CP All 6, 50 EQUITIES RESEARCHER: BEIJING Sigma Healthcare 23 Ebang International 31 Sonic Healthcare 23 +ARENû4IAN Embassy Office Parks REIT 4, 40 Stanmore Coal 22 FCI Aravali Gypsum and Minerals India 40 ûûû State Bank of India 4, 7, 38 Firebolt RB Holdings 42 Stealth BioTherapeutics 5 FoRoyal Development 49 Suzhou Fushilai Pharmaceutical 34 Froch Enterprise 49 Takeda Pharmaceutical 43 Futu Holdings 31 Tehri Hydro Development 40 GCX 37 Telecommunication Consultants India 40 GLP 42 HONG KONG (HEAD OFFICE) SINGAPORE Thai Beverage 6 Gold Mountains (HK) International Mining 29 &û#ITYPLAZAû û û3CIENCEû0ARKû$RIVE û Golden Energy and Resources 22 Ticon Freehold and Leasehold REIT 51 Toyota Leasing Thailand 51 û4AIKOOû7ANû2OAD û 3INGAPOREû û3INGAPORE Golden Land Property Development 51 Golden Wheel Tiandi Holdings 26 TPG Telecom 21 Taikoo Shing, ûû Gome Retail Holdings 26 TRUE 6, 50 (ONGû+ONG Grail 5 True Move H Universal Communication 6, 50 LONDON Unique Engineering and Construction 6 ûû Greater Visakhapatnam Municipal Corporation 38 û3OUTHû#OLONNADE û#ANARYû7HARF Greentown China Holdings 26 UPL 39 Vietnamobile Telecommunications 51 TOKYO ,ONDONû%û%0 Guangzhou R&F Properties 8, 25 Gulf Energy 6 Vista Land & Lifescapes 45 &û!KASAKAû"IZû4OWER û û ûû Hallett 4 Pty Ltd 23 Viva Biotech 31 Vodafone Hutchison Australia 21   û!KASAKA û Hanwha Total Petrochemical 47 NEW YORK HDFC Bank 39 Wah Lee Industrial 49 Minato-ku, Tokyo, Wahana Ottomitra Multiartha 41 û4IMESû3QUARE ûTHû&LOOR HGC Global Communications *APANû  Investment Holding 35 Wanka Online 32 .EWû9ORK û.9 Water & Power Consultancy Services India 40 ûû Hitachi 43 ûûûû Hoa Phat Group 51 Weigang Environment Technology 32 Housing and Urban Development Corp 38 Weimob 30 Housing Development Finance Corp 38 Wistron 50 Huawei Technologies 43 Wuhan Financial Holdings (Group) 27 Hubei Harvin (group) Chemical 35 Wynn Resorts (Macau) 44 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INTERNATIONAL FINANCING REVIEW ASIA Contents JANUARY 5 2019 ISSUE 1072

COVER STORIES COUNTRY REPORT

EQUITIES 04 Regulator raps Indian IPO bankers 20 AUSTRALIA 44 MALAYSIA India’s top securities regulator has called on bankers Qantas Airways has cancelled Malaysia will freeze rate hikes its ratings subscription with for all classes of vehicles on 21 to rethink their approach to IPO pricing, in a sign of S&P leaving it with a toll roads across the country mounting frustration at the slump in new listings. single, Baa2 Moody’s rating this year, which will cost the from the three main agencies. government M$994.3m. EQUITIES 05 Stealth biotech IPO goes missing 24 CHINA 45 PHILIPPINES Hong Kong’s ambitions to become a hub for biotech Chinese LGFV Changde Urban Security Bank received board Construction and Investment approval for a peso bond listings are facing a new challenge with at least one IPO Group priced US$100m two- programme of up to Ps50bn. It candidate ditching its plans in favour of the US market. year senior unsecured bonds at is the fifth bank to plan to issue par to yield 7.20%. bonds since rules eased. BONDS 06 Thai bonds set for strong start 35 HONG KONG 46 SINGAPORE Thai bond issuers are set to raise as much as Bt200bn I Squared Capital has closed an Singapore-listed Indian amend-and-extend exercise for healthcare provider RHT Health in this year’s first quarter alone, as they rush to beat the five-year leveraged buyout Trust is asking holders of its political uncertainty and likely rate increases. facility used to buy Hutchison S$120m 4.5% bonds to extend Global Communications. the maturity by six months.

NEWS 37 INDIA 47 SOUTH KOREA S&P has placed iEnergizer’s B+ Korea Midland Power, rated 05 Philippines eyes sterling debut credit rating on negative watch Aa2/AA/AA–, has assigned The Republic of the Philippines is exploring its first with a debt issuance by the BNP Paribas, and sterling bond offering in a bid to diversify its finances parent pushing up leverage and HSBC as bookrunners for a US and raise money to fund public infrastructure projects. weakening cash flow. dollar bond.

07 SBI raising funds for growth - CFO SBI is looking to raise billions of 41 INDONESIA 48 TAIWAN dollars of equity and debt to keep pace with rebounding credit growth. Indonesian state-owned China Network Systems closed 08 Late rally buoys high-yield Two Chinese property companies held Asia’s mortgage provider Sarana an amendment and extension first US dollar bond sales of the year, after a rally in junk bond prices. Multigriya Finansial aims to on its NT$46.742bn seven-year 08 Noble wraps up restructuring Noble Group wrapped up its long-running raise up to Rp2trn from a sale loan signed in 2014 because of and contentious debt restructuring on December 20, in Bermuda. of three-part domestic bonds. a planned change of control.

42 JAPAN 50 THAILAND PEOPLE & MARKETS Nippon Life Insurance invested Thai convenience store CP £200m in the refi of Race Bank All plans to market up to 13 Poor second half sinks Asian IB fees offshore wind farm, one of the Bt15bn of bonds. The target is Asian fees slid 10% in 2018 after largest offshore investments by a Bt10bn minimum with a Bt5bn a disappointing second half, in a year that saw global Japanese insurer. greenshoe. banks make strong rankings gains in M&A and ECMs. 43 LAOS 51 VIETNAM 14 ASIC warns on ECM allocations The securities regulator has warned Laos Central Bank launched Vietnam’s top steelmaker equity underwriters to steer clear of conflicts of interests in capital raisings. two loans of US$100m each. Hoa Phat Group has signed a 14 Malaysia files criminal charges against Goldman Malaysia filed criminal Cathay United is MLAB of a US$200m five-year financing charges against in connection with the 1MDB probe. four-year term, Taipei Fubon is with five lenders, for general 14 Who’s moving where JP Morgan has rehired Ling Zhang as head of MLAB on a two-year deal. corporate purposes. healthcare and technology investment banking in China. 17 In brief ’s deferred prosecution agreement with the 44 MACAU US authorities has been extended for a fourth time. Hong Kong-listed Wynn Macau signed a self-arranged amendment and extension of a ASIA DATA US$3.05bn-equivalent facility last amended in 2015. 52 This week’s figures

International Financing Review Asia January 5 2019 3 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS News Thai bond rush 06 SBI targets growth 07 Buoyant high-yield 08 Regulator raps Indian IPO bankers „ Equities Bankers argue weak markets to blame for freeze on new issues

BY S ANURADHA Last year’s new listings Total Indian equity offerings Kotak said. Typically, Indian continued the trend of plummeted to US$15bn in stocks fall when crude oil India’s top securities regulator premium pricing, but the more 2018 from US$28bn in 2017, prices rise as this weakens the has called on bankers to volatile backdrop meant the according to Refinitiv data, rupee. rethink their approach to IPO post-listing performance of while Kotak said IPO volumes “Although the IPO backlog is pricing, in a sign of mounting most IPOs was weak. Investors more than halved to US$4.7bn strong, some of the mid-caps frustration at the slump in new on average lost 6% on Indian in 2018 from US$10bn the and small-caps may rethink listings. IPOs in 2018, against positive previous year. The S&P BSE listing due to significant value Ajay Tyagi, chairman of the returns of 2% in 2017 and 19% Midcap index has fallen 15% correction,” Kotak said. The Securities and Exchange Board in 2016, Kotak Investment in the 12 months to January 2, financial sector remains the of India, said the regulator had Banking said in a report. while the S&P BSE IPO index preferred sector for investors approved 70 IPOs worth a total ECM bankers, however, argue has dropped 10% during the followed by real estate and Rs600bn (US$8.5bn) in 2018 that pricing was not the main same time. consumer-related companies. but expressed concern over the reason for the lack of activity. “Everything looks expensive The most eagerly awaited growing backlog of deals. “It’s easy for Sebi to place in such a market. Unfortunately listing is the EMBASSY OFFICE PARKS There have been no the blame at the bankers’ it will take a series of bad REIT, which is planning an IPO mainboard IPOs on the BSE or doorstep but there are many performances to shake the of up to Rs60bn. The REIT National Stock Exchange since other factors at work,” an ECM complacency of bankers and received regulatory approval September as issuers wait for banker said. issuers,” another ECM banker for the issue and is targeting a market conditions to improve. Mid-cap stocks fell sharply said. launch in the first quarter. “People have found ways to after the market regulator QIP activity in 2019 will raise money [through private last year imposed higher BRIGHTER SECOND HALF be led by the financial sector equity and preferential share margins on the purchase of Bankers expect the issuance while companies in the issues] but IPOs not clicking is these shares, and sentiment market to pick up on only in capital-intensive telecom a cause of worry,” said Tyagi, towards financial stocks took the second half of 2019 after and steel sectors may call on speaking at the capital markets a big hit when Infrastructure the federal elections in May. shareholders with rights issues. summit of the Association of Leasing and Financial Services “The elections and the The country’s largest bank STATE Investment Bankers of India in defaulted. Both developments price of crude oil will be the BANK OF INDIA is planning a QIP, Mumbai in late December. cast a shadow over the new main factors determining the with shareholder approval to Tyagi called on investment issue market, the banker said. direction of the stock market,” raise up to Rs200bn. „ bankers to ensure that issues are reasonably priced and beneficial to both issuers and investors. “That is the task of investment bankers and we are not getting into it. I would request investment bankers to look into it as pricing is an issue,” he said. “Perhaps more due diligence is required to see to it that we come to a pricing band which is acceptable to both issuers and investors.”

NEGATIVE IPO RETURNS In rising markets in 2016 and 2017, Indian IPOs were mostly priced at a premium to comparable listed stocks and regional peers, often with narrow price ranges that gave issuers and investors little flexibility should market conditions change.

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completing a record IPO in Stealth biotech IPO goes missing the US, more US-based biotech companies may opt for a home „ Equities: Drug developer drops Hong Kong listing plan in favour of US listing instead.” US biotech firm Moderna BY FIONA LAU Kong float last year, according from the IPO price. Shanghai raised US$605m in the US in to people familiar with the Junshi Biosciences, which December from the largest Hong Kong’s ambitions to situation. started trading on December ever biotech IPO, but has also become a hub for biotech Stealth had been one of 24, was 20% above the IPO price disappointed investors. Its listings are facing a new several biotech companies on Thursday. shares closed at US$15.50 last challenge with at least one IPO looking to take advantage of Stealth, based near Boston, Thursday, 33% below the IPO candidate ditching its plans in rules introduced by Hong Kong Massachusetts, discovers and price of US$23. favour of the US market. Exchanges and Clearing last develops therapies for diseases A more sophisticated investor STEALTH BIOTHERAPEUTICS, a year to attract listings from involving mitochondrial base is another attraction of the US-based but Hong Kong- biotech firms with no profits or dysfunction. The company has US markets. owned clinical-stage biotech revenues. five clinical developments and “Some Chinese biotech drug developer, filed for a The poor trading plans to commercialise one of firms prefer a US listing as the US$86.25m Nasdaq IPO with performance of some biotech them by 2020. investors there have better the US Securities and Exchange companies in the city, however, It planned for a Hong Kong understanding of the industry,” Commission on December has discouraged Stealth and IPO earlier as it is backed by said another ECM banker who 28. The US filing marks an prompted it to opt for a US the family behind Hong Kong is working on a few China-to-US end to the company’s Hong listing, according to people property developer Hang Lung biotech listings. Kong listing plans, after close to the deal. Group. Investment company While some biotech aspirants its application to the Stock Five biotech companies have Morningside Group, which was have changed their mind, many Exchange of Hong Kong lapsed listed under Hong Kong’s new founded by the Chan family, others are lining up for a Hong last week. rules so far. As of last Thursday, owns a 95.3% stake. Kong IPO. Five unprofitable Stealth is not the only the shares of Ascletis Pharma, “Some US-based biotech biotech companies so far – biotech listing aspirant turning the first such listing, had companies with Chinese mostly Chinese – have filed to the US. US-based cancer- tumbled 57% since their August management or shareholders in the city and are waiting for detection start-up GRAIL, which 1 debut. Shares of BeiGene were looking at a Hong Kong listing approvals. counts Amazon founder Jeff were 25% below their IPO price, listing last year,” said an ECM BOC International and Bezos and Microsoft founder while Hua Medicine closed banker who focuses on the Jefferies were the joint sponsors Bill Gates among its investors, almost flat to the IPO price. healthcare sector. on the aborted Hong Kong IPO. is also now weighing a US Innovent Biologics has been “With some of the biotech BMO Capital Markets, ISI IPO after planning to raise the best performer. It closed at listings trading significantly and Jefferies are the bookrunners about US$500m from a Hong HK$22.35 on Thursday, up 60% down in the city and Moderna on the US float. „

Federal Reserve’s decision to Philippines eyes sterling debut continue raising interest rates. The Philippines has „ Bonds Sovereign seeks diversification amid infrastructure spending spree mandated Bank of China International, Citigroup, Credit BY FRANCES YOON Duterte’s “Build, Build, we are going to explore doing Suisse, Goldman Sachs, JP Morgan, Build” initiative – a sprawling something in England.” Standard Chartered and UBS for a The REPUBLIC OF THE PHILIPPINES, infrastructure programme to Sterling issues are rare from US dollar offering, IFR reported rated Baa2/BBB/BBB, is exploring construct bridges, highways, Asia, and no Philippine issuer last November. its first sterling bond offering railways and airports. The has previously sold bonds in the The government issued in a bid to diversify its finances programme comprises 75 currency, according to Refinitiv Asia’s biggest Samurai bond and raise money to fund public projects valued at a combined data. Excluding the Manila- in August, raising a massive infrastructure projects. US$36bn. based Asian Development Bank, ¥154.2bn (US$1.38bn) from a Finance secretary “We told bankers that our the last government-linked three-tranche deal in its first Carlos Dominguez III said policy now is not to be absent issue from Asia came from issue in Japan since 2010. That last Wednesday that the from any major market for Korea Development Bank in deal came just a few months government planned to add the long periods,” Dominguez said. October 2017. after it shook up the Panda UK to its list of offshore funding “For the Samurai, we are going Dominguez also said that market with an exceptionally destinations, alongside repeat to come back within 12 to 18 he had instructed national tight debut – a Rmb1.46bn issues in yen, and months from August. In China, treasurer Rosalia de Leon to (US$230m) 5.0% three-year note other major markets. we will come back to the accelerate bond issuance ahead in China’s interbank market The Philippines is raising market again within 12 to 18 of schedule because of global at the tight end of 5.0%–5.6% money for President Rodrigo months from last March. And uncertainties over the US indicative guidance. „

International Financing Review Asia January 5 2019 5 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS News Thai bonds set for strong start „ Bonds Corporate issuers plan to raise at least Bt50bn in January

BY KIT YIN BOEY potential candidate to hit the to refinance short-term bank Policy Committee. A BOT market in the next couple of loans used to fund its recent statement on December 26 Thai bond issuers are set to months to refinance a Bt16.2bn acquisitions. noted that some of the large raise as much as Bt200bn bond due on March 24. That conglomerates raising funds in (US$6.2bn) in this year’s first bond was issued to pay off PERPETUAL PRESSURE a low-rate environment were quarter alone, nearly a third of bridging loans used to fund Bonds to be sold over the next channelling funds to non-core last year’s total, as they rush to Berli Jucker’s acquisition of the few months will likely to be of businesses and abroad. beat political uncertainty and Big C supermarket chain. the senior unsecured variety as “Such developments likely rate increases. Another major corporate bankers shy away from undated could make it difficult to Companies are bringing borrower expected to return subordinated bonds under assess risks related to large forward fundraising plans to the market to refinance pressure from regulators. conglomerates, which could before a general election that acquisition bonds is THAI Thai regulators have lead to underpricing of risks. the current military government BEVERAGE, which was responsible signalled their concern over Moreover, some conglomerates has promised to hold as early for the country’s largest bond the sale of undated bonds expanded their issuances of as end-February – the first since transaction in September with to retail and high-net-worth perpetual bonds to raise funds,” it took power in a coup in May a chunky Bt77bn issue. Bankers investors since 2012, when PTT the BOT said. 2014. In addition, the royal say the brewer is targeting a Exploration and Production The statement said Thailand’s palace has set May 4-6 as the visit to the bond market in sold the country’s first Securities and Exchange dates for the coronation of King the first quarter. Although corporate perpetual bonds. Commission was monitoring Maha Vajiralongkorn, likely no details are available, Thai Officials underlined that this trend closely and stressed closing another market window. Beverage still has Bt74bn message again last month that complete information on Borrowers are also looking remaining under its Bt200bn at a joint meeting between associated risks in such large- to lock in current interest approved fundraising limit. It the Bank of Thailand’s MPC scale funding must be provided rates before any potential is planning to use the proceeds and the Financial Institutions to investors. increases later in the Last August, Minor year, after the Bank of International’s Bt15bn Thailand, as expected, public sale of perpetual raised its benchmark non-call five notes by 25bp to 1.75% in attracted unwelcome December. While a few attention from the bankers believe another SEC. After the bond rise will only come in was sold, SEC officials the second half, some held discussions with economists are calling underwriters Bangkok for a second increase Bank, Kasikornbank, when the Monetary Policy Krungthai Bank and Siam Committee meets in early Commercial Bank. Those February. involved in the meetings Five companies are said the SEC wanted to preparing to launch new make sure investors were issues totalling around fully aware of the risks Bt50bn in January, and in the highly structured Thai bond bankers deal. Minor is the only estimate the first-quarter non-financial issuer to pipeline could reach have sold undated notes as much as Bt200bn. last year. This month’s issuers Bankers said heightened are likely to include CP and widespread concerns ALL, TRUE, TRUE MOVE H over default and market UNIVERSAL COMMUNICATION risks had led major and GULF ENERGY, each commercial banks to pull with plans to sell Bt10bn back from mandates to to Bt15bn of bonds in manage unrated bonds. January. Together with Some securities firms are UNIQUE ENGINEERING AND still underwriting such CONSTRUCTION, the five bonds, but most are small issuers hope to raise private placements to a around Bt50bn in total. select group of high-net- BERLI JUCKER is also a worth investors. „

6 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

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business loans of up to Rs250m, SBI raising funds for growth - CFO in the name of supporting companies that were hurt „ Equities/Bonds Finance chief says market conditions will determine size of capital raising by the implementation of a goods and services tax and BY KRISHNA MERCHANT, A person with knowledge advantage of lower yields as demonetisation. S ANURADHA of the transaction said the market sentiment improved. The new rules will allow bank was likely to raise up to The QIP and AT1 issues will banks to revise the terms of STATE BANK OF INDIA is looking to Rs100bn through the QIP given help maintain its capital stressed SME loans before raise billions of dollars of equity the difficult equity capital adequacy ratio at current levels, they become non-performing, and debt to keep pace with market conditions. Although Kumar said. SBI reported a therefore avoiding the need to rebounding credit growth and a the benchmark S&P BSE Sensex CAR of 12.6% at the end of set aside additional provisions. recovery in the Indian banking Index was up 6.7% in 2018, September. That is good news for SBI, sector, its chief financial officer ECM activity has been muted Besides SBI, private lenders which had a bad loan ratio of said. on concerns over the health such as ICICI Bank raised 10.2% at the end of September SBI is working on an of the financial sector after Rs11.4bn from AT1 bonds. for its SME portfolio, which institutional share placement Infrastructure Leasing and HDFC Bank and Axis Bank have makes up 15% of the loan book. that could raise as much as Financial Services defaulted last also raised a total of Rs90bn Bankers are also hoping for Rs200bn (US$2.8bn), and last year. week hired banks to sell up to “The market is not the same US$1.2bn of offshore bonds. as when SBI raised Rs150bn at “The recognition of non-performing assets is Prashant Kumar, who took a zero percent discount,” an over as CFO in September, told ECM banker said. That 2017 QIP done and all the public sector banks are on a IFR in an interview that SBI’s remains the biggest ever in the recovery path. The system is witnessing a good forthcoming share placement Indian market. credit growth and banks which do not have would allow the bank to Kumar acknowledges that strong liability franchise are raising resources to maintain double-digit credit the final size of the QIP will fund credit growth.” growth next year. depend on market conditions, “We estimate credit growth but he stresses that the of 12%–13% in the financial financial sector has turned a year that ends on March 31 corner after recent problems. from long-term infrastructure a more open communication 2020 without compromising on “The recognition of non- bonds. channel with the RBI following quality of credit,” Kumar said. performing assets is done and India’s biggest public-sector an initial meeting with public all the public sector banks are bank has also mandated Bank sector banks last month. on a recovery path,” he said. of America Merrill Lynch, Barclays, SBI is hopeful that the new “The system is witnessing Citigroup, HSBC, JP Morgan, governor will cut rates in “We estimate credit a good credit growth and Mizuho, MUFG, SBI Capital Markets February to spur growth after banks which do not have and Standard Chartered for a consumer price inflation eased growth of 12%–13% in strong liability franchise are dollar bond offering under to a 17-month low of 2.3% in the financial year that raising resources to fund credit 144A/Reg S format, according to November. ends on March 31 2020 growth.” sources close to the plans. The RBI raised rates twice without compromising SBI has board approval to in 2018, ending a three-year on quality of credit.” DEBT FUNDING raise up to US$1.2bn from easing cycle and drawing sharp India has struggled to restore offshore bonds via its foreign criticism from the government investor confidence in its public branches. The bank is yet to for crimping economic growth. sector banks after years of confirm the mandate. The sharp rise in yields last ill-disciplined – and, in some year affected the earnings of SBI expects credit growth in cases, fraudulent – lending led RBI RELIEF state-owned banks, which FY2019 to be around 14%, up to a spike in bad loans and left SBI feels the worst part of the hold significant amounts of sharply from 4.9% in 2018. many state lenders dangerously credit cycle is behind it. The government and corporate “We are giving out loans to short of capital. state-owned lender reported a bonds. public sector companies such as A slumping rupee, local gross bad loan ratio of 9.95% The 10-year benchmark National Highways Authority of rate rises and a liquidity at the end of September, down for AAA rated public-sector India and Power Finance Corp,” squeeze following the IL&FS from 10.9% six months earlier, bonds has eased to 8.6% from Kumar said. “We have seen an default complicated efforts to and has set a target of below 8% a peak of 8.92% on September improvement in credit demand recapitalise the sector, but SBI by the end of March. 17 on hopes that Das will ease from state-owned companies.” has done its part to reopen The appointment of a new financial conditions to aid SBI’s stock price has the market for bank capital as central bank governor in economic growth ahead of rebounded 17% from the lows conditions have eased. December has improved SBI’s general elections this year. of late October, but bankers SBI sold Rs60.66bn of Basel chances of meeting that goal. “We have an opportunity to say a Rs200bn qualified III-compliant Additional Tier Reserve Bank of India chief write back the mark-to-market institutional placement will 1 bonds in two tranches, at Shaktikanta Das on January 2 provisions because the bond be a stretch even for India’s 9.37% in November and 9.56% allowed lenders to carry out a yields have eased drastically,” biggest bank. at the end of December, taking one-off restructuring of small- said Kumar. „

International Financing Review Asia January 5 2019 7 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS News Late rally buoys high-yield „ Bonds December rebound helps R&F, Aoyuan kick off busy first quarter

BY FRANCES YOON for issues that were seen as reached last October. which were also battered late oversold in last year’s crossfire. Agile Group’s 5.125% last year, have rallied 160bp Two high-yield Chinese property Country Garden’s 4.75% 2022s have tightened 180bp from a November low, while companies got the ball rolling 2023s, which were issued in since hitting a record low on Times China Holdings’ 6.6% last week with Asia’s first US 2016, have tightened 150bp November 23, while its 8.5% 2023s came in 170bp. dollar bond sales of the year, from their November 1 wides, 2021s have also rallied by “There was never really a after a rally in junk bond prices concern about fundamentals continued in late December. for some of these issuers, but A US$500m new issue from they were still getting hit GUANGZHOU R&F PROPERTIES and “There was never really a concern about last year,” said a senior high- a US$275m tap from CHINA yield banker based in Hong AOYUAN GROUP showed investors fundamentals for some of these issuers, but they Kong. “We’re starting to see remained receptive to low-rated were still getting hit last year. We’re starting to a turnaround, and that bodes Asian issuers, even as volatile see a turnaround, and that bodes well for the well for the high-yield pipeline markets kept other issuers high-yield pipeline this month.” this month.” sidelined. (See China Debt capital Buyers, however, remain markets.) cautious, and both last week’s Hopes are high for a busy issuers were at the short end. first quarter for high-yield R&F priced a US$500m two-year issuance after a recovery while the property developer’s a similar amount and were bond at 8.875%, while Aoyuan late last year. A handful of shorter 7.5% March 2020s saw trading above par last week issued a US$275m tap of its bonds that hit record lows in similar gains. CoGard’s 5.125% at 101.6/102.2, according to 7.95% 2021s at a yield of 7.939% November have rebounded, 2025s also tightened 130bp Refinitiv data. to the September 2020 put date. thanks to bargain-hunting from the record wide 10% Yuzhou Properties’ 6% 2023s, “We expect crowded

Lokey, which advised an ad hoc Noble wraps up restructuring group of creditors. “In their capacity as new „ Restructuring Commodities trader completes workout under shadow of Singapore probe shareholders of the company, the ad hoc group look forward BY DANIEL STANTON close to collapse. agreed to provide new money to working with the company Following the restructuring, for trade finance and hedging to help it accomplish its goals.” Commodities trader NOBLE senior creditors now hold 70% purposes ended up with a PJT Partners, Comprador and GROUP wrapped up its long- of shares in the new Noble better deal. Moelis were financial advisers running and contentious debt to Noble. restructuring on December 20, after it was forced to turn “Between the new US$800m trade finance and BERMUDA MOVE to Bermuda to complete the hedging facilities and a substantial deleveraging Singapore’s refusal to allow transaction. Noble to transfer its listing to After the Singapore of the balance sheet, New Noble is well the new entity, announced on authorities blocked it from positioned to play a leading role in the Asian hard December 6, had threatened relisting its shares on the commodities business going forward. In their to scupper the entire process, Singapore Exchange, Noble capacity as new shareholders of the company, the jeopardising months of asked the Supreme Court of ad hoc group look forward to working with the work. Noble had already won Bermuda to implement the approval for its scheme of US$3.5bn debt restructuring company to help it accomplish its goals.” arrangement in November in line with its previously from courts in Bermuda (where proposed scheme. it is incorporated) and the UK Despite the last-minute entity, existing shareholders “Between the new US$800m (its base after the restructuring). switch – which means shares hold 20% and the company’s trade finance and hedging Instead of going into in the restructured entity management holds 10%. facilities and a substantial administration, which would will be unlisted, rather than Noble’s US$3.5bn of deleveraging of the balance have raised further questions traded on the SGX – Noble’s outstanding bonds and sheet, New Noble is well about its ability to remain debt-to-equity swap marks the loans have been cancelled, positioned to play a leading role a going concern, Noble was culmination of over a year of with creditors also receiving in the Asian hard commodities able to press ahead with the negotiations between creditors, US$1.57bn of new notes at business going forward,” workout under provisional shareholders and management various levels in the revamped said Joseph Swanson, senior liquidation in Bermuda. that had at several times come capital structure. Creditors who managing director at Houlihan Under Bermudan law, the

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supply from the space in levels – including the likes of yield, according to Tradeweb. July 2024s have only recovered 1Q19 to weigh on the sector global bond manager Pimco. Ronshine China Holdings’ 20bp from a November 21 all- performance in the near term,” However, the sector still has US$200m 11.5% notes were bid time low, according to Refinitiv said Tony Chen, a credit analyst a long way to go. Choppy global 20bp wider. data. The real estate developer’s at Nomura. “We recommend to markets since the New Year, Split-rated Shimao Property 5.9% 2023s have also only stay with high-quality Single B spurred partly by weak China Holdings, which added gained modestly during that bonds and prefer short tenors.” factory data, dragged a swathe US$570m to its 6.375% 2021s period. of new high-yield issues lower last month, was in better Kaisa Group Holdings’ BARGAIN HUNTING last week. shape, trading at a bid yield 2024s, which tumbled to a Chinese high-yield bonds Chinese property developer of 6.4% after pricing the tap at record low cash price of 65 to went into free-fall in the Cifi Holdings (Group), which 7.125%. yield 19.8% on November 30, second quarter of last year, as gained less than some peers, increasing volatility, simmering tightening 90bp since. Kaisa’s trade rhetoric, rising interest 8.5% 2022s have also come off rates, weak demand from a December wide of 20.7%, large Chinese institutions “We expect crowded supply from the space in but the 19.3% yield is still near and slowing Chinese growth 1Q19 to weigh on the sector performance in the distressed territory. Most of contributed to one of the worst near term. We recommend to stay with high- Kaisa’s outstanding bonds are trading periods for the sector. trading in a cash price range By early November, at quality Single B bonds and prefer short tenors.” of 79-85, Refinitiv data show. least nine Chinese property The company, which defaulted companies had seen their on its debt in early 2015, has bonds slump to record lows, a US$500m 10.25% 2020 bond Refinitiv data showed. with a call date this February. Since then, easing supply issued one of the largest public The weak sentiment also “Investors are concerned concerns and an improved offerings from the sector in stands in the way of a handful about its liquidity and overall market sentiment have December, saw its US$400m of poor performers that have potentially corporate attracted some buyers at the two-year bonds widen to 8.4% tested new lows in December. governance issues,” said more attractive secondary from final pricing of a 7.625% Greenland Holdings’ 5.875% Nomura’s Chen. „

Supreme Court can place interest burden by only 17%, nine months of 2018. “significant uncertainties about companies into provisional after the first 18 months in Singapore authorities in the financial position of New liquidation to provide a stay which interest payments are November announced an Noble” when they blocked the from creditors, allowing lower. Some debt is payment in investigation into Noble’s company from relisting on SGX. a restructuring scheme to kind, so coupons will be accrued previous accounting practices, The MAS, the Commercial be implemented. Once a and added to the principal. and said in December that the Affairs Department of the scheme is implemented Singapore Police Force, and successfully, proceedings can the Accounting and Corporate be discontinued without ever Regulatory Authority are entering full liquidation. The scheme halved Noble’s debt load, but will currently investigating Noble The court-appointed officer lower its interest burden by only 17%, after the and its subsidiary Noble overseeing the process was first 18 months in which interest payments are Resources International. appointed only to Noble lower. Some debt is payment in kind, so coupons CAD and MAS have also Group and not to any of its will be accrued and added to the principal. asked accounting firm EY to subsidiaries, which continue provide documents in relation to trade as normal, allowing to the audit of NRI in relation the group to continue to to the financial years ended have access to trade finance Senior creditors who company’s submissions under December 31 2012 to December facilities and make payments to provided a new trade finance the probe showed the net 31 2016. customers and suppliers. facility earned an additional asset value of the new Noble “The company and New fee, while a group of perpetual entity could be 45% lower than Noble will continue to QUESTIONS REMAIN securities holders also received previously reported. cooperate fully with ACRA The restructuring gives Noble a sweetened deal for providing They said that the NAV in relation to the joint a shot at recovery as a much a trade finance facility. could be reduced even further, investigation,” said Noble smaller entity focused mainly In its quarterly financial depending on the outcome in an SGX announcement. on coal and LNG, but questions statement published in of investigations into the “Following detailed advice over its future linger on. The November, Noble said preparation and disclosure of from its accounting advisors, restructured group still needs restructuring expenses, Noble’s financial statements, the company continues to to pay fees and interest on the including fees on interim trade including the valuation of its hold the strong view that all of revamped debt, and faces an finance facilities and payments commodities contracts. its financial statements have ongoing probe in Singapore. to the ad hoc group of senior The Monetary Authority been prepared in accordance The scheme halved Noble’s creditors, lawyers and advisers, of Singapore and Singapore with all relevant accounting debt load, but will lower its totalled US$146.6m for the first Exchange Regulation cited standards.” „

International Financing Review Asia January 5 2019 9 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

League tables Asian bonds power on through 2018 „ Bonds league tables Second-biggest year for G3 issuance despite market turbulence

BY FRANCES YOON of geopolitical risks coming to programme in a brief period of property sector hurt secondary the fore,” said Sean McNelis, market stability. performance after sentiment Asian international bond sales HSBC’s co-head of debt capital The top-ranked underwriters weakened in the second quarter. chalked up their second-biggest markets for Asia Pacific. were able to ride out the Chinese banks and securities year on record in 2018, despite “The pick-up in market underlying uncertainty by firms continued their ascent in volatile market conditions volatility created windows where appealing to investors with Asian G3 high-yield standings, that held issuance short of the certain types of transactions structures that hedged against with four China-owned arrangers previous year’s record. worked well in certain periods, rising interest rates, while ranking in the top 10. Haitong Asian issuers, excluding for example short-dated FRN quickly switching to bullish deals Securities topped the HY league Japan and Australia, printed transactions in softer periods when bright spots emerged. tables with a 7.2% market share, US$273bn of G3 bond sales in to higher-beta bank capital, That strategy helped HSBC to followed by Citic Securities and 2018, down 18% from 2017’s corporate hybrids and high-yield top annual league tables for the HSBC. ranked record US$334bn, Refinitiv data transactions in stronger periods.” ninth year running with an 8.3% fourth, accounting for 5.1% of showed. Last year’s total is still Investment-grade issuance was market share. the market, while Goldman the second-biggest on record in driven by safe-haven demand Of the top 10, only Goldman jumped five spots to fifth. „ Asia, surpassing the US$219bn during difficult conditions, with Sachs, and issued in 2016. high-grade sovereigns and state- Credit Agricole arranged a Top bookrunners of Asia Pacific Appetite for Asian bonds owned stalwarts in China, South higher volume of new issues in Securitisations (ex-Japan and Australia) took a hit from a variety of Korea and Singapore especially 2018. JP Morgan dropped four (ex-A$ and CDOs) factors, including concerns popular. places to ninth, with its share of 1/1/18 – 31/12/18 over a brewing US-China trade China National Chemical underwriting proceeds falling Amount war, rising US interest rates Corp (ChemChina) also pushed over 40% from 2017. Deutsche Name Issues US$(m) % and global emerging-market the boundaries in March 2018 Bank fell out of the top 10 to 1 Bank of China 12 9,681.7 14.3 turmoil that took hold during with Asia’s biggest Reg S-only rank 11th with a 2.5% market 2 China Merchants Sec 29 8,324.6 12.3 the summer. The Indonesian bond, raising US$6.4bn across six share after year-on-year proceeds 3 ABC 2 7,683.7 11.4 rupiah also dropped to its lowest tranches. tumbled over 50%. 4 China Sec 4 7,110.8 10.5 level against the US dollar since Despite the emerging- International high-yield 5 Citic Sec 27 6,151.9 9.1 the Asian financial crisis of 1997- market jitters, the Republic of offerings from Asian issuers 6 Donghai Sec 13 2,382.5 3.5 98, putting pressure on local Indonesia was still Asia’s most reached US$43bn last year, down 7 Guosen Sec 11 2,111.3 3.1 borrowers and the government, active sovereign issuer in 2018, 28% year-on-year after a tough 8 CICC 12 2,034.4 3.0 a frequent international issuer. printing in US dollars and yen period for the sector. 9 CSC Financial 13 1,975.1 2.9 “As compared to recent years, and in conventional, Islamic Deleveraging Chinese 10 BoCom 10 1,732.6 2.6 2018 was characterised by more and Green formats. December’s financial institutions scaled Total 73 67,520.5 challenging conditions with US$3bn triple-tranche offering back purchases of risky offshore *Market volume central banks winding back allowed the government to get bonds, while trade war concerns Proportional credit quantitative easing and a range ahead with its 2019 funding and heavy supply from the Source: Refinitiv data SDC Code: AZ2

Top bookrunners of Asian fixed- and Top bookrunners of Asian fixed- and Top bookrunners of Top bookrunners of floating-rate bonds for G3 currencies floating-rate bonds for G3 currencies all Asian currencies all Asian currencies ex-Japan, inc-Australia ex-Japan and Australia (excluding Japan and Australia) (excluding Japan, Australia and China) (inc-Samurais and Yankees) (inc-Samurais and Yankees) (inc-certificates of deposit) (inc-certificates of deposit) 1/1/18 – 31/12/18 1/1/18 – 31/12/18 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Amount Amount Amount Amount Name Issues US$(m) % Name Issues US$(m) % Name Issues US$(m) % Name Issues US$(m) % 1 HSBC 240 26,371.5 8.2 1 HSBC 222 22,747.9 8.3 1 Bank of China 666 99,613.8 7.0 1 KB Financial 530 26,315.0 9.0 2 Citigroup 141 21,568.2 6.7 2 Citigroup 118 15,340.3 5.6 2 Citic Sec 620 87,261.3 6.1 2 NH Inv & Sec 317 19,607.2 6.7 3 Morgan Stanley 87 14,232.7 4.4 3 Goldman Sachs 59 12,397.1 4.5 3 ICBC 620 81,108.5 5.7 3 Korea Investment 441 14,815.4 5.1 4 Goldman Sachs 63 13,769.7 4.3 4 Bank of China 161 12,335.6 4.5 4 CCB 639 71,586.3 5.0 4 Mirae Asset Daewoo 339 14,646.9 5.0 5 BAML 75 13,009.2 4.0 5 Standard Chartered 125 12,058.1 4.4 5 ABC 510 70,126.3 4.9 5 HSBC 197 13,156.2 4.5 6 BNP Paribas 93 12,777.7 4.0 6 Morgan Stanley 75 11,781.7 4.3 6 BoCom 532 62,331.7 4.4 6 Kyobo Life 250 10,955.5 3.7 7 JP Morgan 69 12,490.8 3.9 7 BAML 66 10,506.4 3.9 7 CSC Financial 430 52,049.6 3.6 7 Axis 154 9,866.9 3.4 8 Bank of China 161 12,335.6 3.8 8 BNP Paribas 78 8,825.1 3.2 8 Industrial Bank 407 41,020.2 2.9 8 Hana Financial 115 9,318.4 3.2 9 Standard Chartered 127 12,217.0 3.8 9 JP Morgan 54 8,477.6 3.1 9 CMB 353 38,978.2 2.7 9 Standard Chartered 99 7,141.6 2.4 10 Deutsche 76 9,002.3 2.8 10 Credit Agricole 64 7,693.1 2.8 10 China Merchants Sec 187 30,806.0 2.2 10 DBS 68 6,586.7 2.3 Total 646 323,280.3 Total 569 272,866.0 Total 8,821 1,429,707.1 Total 4,994 293,383.1

*Market volume

*Includes Asian Development Bank issuance. *Market volume *Market volume *Market volume

Proportional credit Proportional credit Proportional credit Proportional credit Source: Refinitiv data SDC Code: AR1 Source: Refinitiv data SDC Code: AR2 Source: Refinitiv data SDC Code: AS1 Source: Refinitiv data SDC Code: AS1a

10 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

For daily news stories visit www.ifrasia.com Asian lending hits four-year high „ Loans league tables Volumes rebound 9% despite China M&A slump

BY PRAKASH CHAKRAVARTI The deal, signed in late among liquid banks and pushed including MGM Grand Paradise, October, also highlighted the hard to complete refinancings Venetian Macau, Wynn Resorts Syndicated lending in Asia challenges facing lenders in and negotiate more favourable (Macau) and Marina Bay Sands, Pacific, excluding Japan, grew China. Days after the signing, terms on existing deals. amended and extended around for the first time in four years the US government withdrew This was particularly true US$12bn of loans in 2018. in 2018, despite a slowdown the borrower’s access to US in Australia and Singapore. in event-driven financings and suppliers amid allegations In Australia volume climbed LOOKING AHEAD rising volatility in equity and that the firm stole intellectual 16.8% to US$95.53bn, from Market participants remain bond markets. property from American US$81.77bn in 2017, and optimistic about the outlook Lending volumes in semiconductor giant Micron Singapore saw US$51.66bn in for 2019 despite geopolitical Asia Pacific rose 8.9% to Technology. 2018, 27.8% up on US$40.42bn concerns, including the trade US$484.82bn, up from Political developments in 2017, thanks largely to war, increasing protectionism US$445.31bn in 2017 and the made lenders jittery about refinancings and amend-and- and Brexit. second-biggest annual tally Chinese borrowers in the extend exercises. “Even with heightened behind US$523bn in 2014. manufacturing and technology, Hong Kong was also busy global market volatility, the Australia, China and Singapore media and telecom sectors, refinancing, amending and APAC syndicated loan market posted significant growth which are seen as most extending existing loans, but remained resilient into the after a surge in deal flow vulnerable to trade tensions. overall loan volume slid 7.3% to tail end of 2018, with banks late in the year, according to M&A lending from Asia US$107.87bn, as fewer Chinese demonstrating solid appetite LPC data, which tracks loans Pacific fell to US$35.25bn in companies tapped the market. for reasonably priced and well- in international currencies 2018, a 36.8% decline from The largest refinancing structured deals,” said Adnan comprising Australian, Hong US$55.74bn in 2017. The fall in from Asia (ex-Japan) was a Meraj, co-head Asia Pacific Kong, Singapore and Taiwan Chinese M&A was far steeper, US$5.5bn loan for state-owned syndicated and leveraged dollars, renminbi and the G3 down 75% to US$4.63bn in China National Chemical Corp finance at Bank of America currencies. 2018 from US$18.37bn a year (ChemChina) in March, which Merrill Lynch. The number of deals fell earlier after Beijing introduced refinanced part of a US$12.7bn “We see this trend slightly to 1,203 in 2018 from measures to control capital acquisition loan that helped continuing into the beginning 1,245 a year earlier. outflows. fund its purchase of Swiss seeds of 2019 and are already seeing “Asian loan markets and pesticides maker Syngenta strong reverse enquiry on some remained stable in 2018 despite REFINANCING RUSH in 2017. of the more immediate deals volatility in global capital Asian borrowers took Casino and resort operators we will be launching in early markets and a slowdown in advantage of lending appetite in Macau and Singapore, 2019.” „ overall M&A financing activity amidst a reduction in China cross-border M&A activity,” said Top bookrunners of Asia Pacific Top bookrunners of Asia Pacific Top bookrunners of Asia Pacific Benjamin Ng, Citigroup’s head syndicated loans G3 currencies syndicated loans All currencies syndicated loans All currencies of debt syndicate, loans and (ex-Japan, inc-Australia) (ex-Japan, inc-Australia) (ex-Japan and Australia) acquisition finance in Asia. 1/1/18 – 31/12/18 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Strong volume from China Amount Amount Amount came as a surprise after the Name Deals US$(m) % Name Deals US$(m) % Name Deals US$(m) % government introduced moves 1 ANZ 53 9,152.5 6.6 1 Bank of China 243 68,461.2 19.2 1 Bank of China 237 66,798.1 23.4 to curb overseas acquisitions 2 HSBC 48 8,225.2 5.9 2 ANZ 100 22,255.9 6.2 2 Standard Chartered 88 13,353.9 4.7 in late 2016 and trade tensions 3 Standard Chartered 59 8,172.9 5.9 3 HSBC 87 17,647.6 5.0 3 HSBC 67 13,020.5 4.6 with the US added to concerns 4 MUFG 40 6,283.1 4.5 4 Standard Chartered 92 13,807.1 3.9 4 DBS 72 9,100.8 3.2 over an economic slowdown in 5 Mizuho 35 6,221.6 4.5 5 NAB 47 11,912.6 3.3 5 Citic Sec 11 8,595.4 3.0 the second half of the year. 6 DBS 44 5,193.8 3.8 6 MUFG 66 10,971.5 3.1 6 ICBC 27 8,064.7 2.8 Excluding Japan, China 7 ICBC 19 5,077.7 3.7 7 Mizuho 58 10,170.9 2.9 7 CCB 24 7,179.9 2.5 dominated Asia Pacific lending 8 NAB 11 5,005.4 3.6 8 DBS 74 9,506.9 2.7 8 Mizuho 41 7,177.2 2.5 with US$111.26bn of loans 9 UOB 16 3,856.4 2.8 9 ICBC 30 9,082.0 2.6 9 CDB 4 6,686.4 2.3 in 2018, a 9.9% increase on 10 Deutsche 19 3,700.6 2.7 10 Citic Sec 11 8,595.4 2.4 10 MUFG 44 6,435.8 2.3 US$101.28bn of deals in 2017. 11 Bank of China 29 3,639.6 2.6 11 CBA 38 7,920.5 2.2 11 Mega Financial 58 6,417.8 2.3 This was largely due to a jumbo 12 BNP Paribas 26 3,613.3 2.6 12 CCB 24 7,179.9 2.0 12 ABC 14 6,272.9 2.2 Rmb160bn (US$23bn) 11-year 13 CCB 13 3,596.6 2.6 13 SMFG 57 7,158.6 2.0 13 Taiwan Financial 61 6,217.6 2.2 project financing for Chinese 14 SMFG 32 3,593.5 2.6 14 Credit Agricole 26 6,929.5 1.9 14 UOB 22 6,050.2 2.1 state-owned semiconductor 15 Citic Sec 5 3,382.0 2.4 15 CDB 4 6,686.4 1.9 15 ANZ 44 5,431.3 1.9 maker Fujian Jinhua Integrated Total 308 138,602.0 Total 1,000 356,406.6 Total 859 285,583.7 Circuit, which was the biggest *Market volume *Market volume *Market volume loan in Asia Pacific (ex-Japan) Proportional credit Proportional credit Proportional credit in 2018. Source: Refinitiv data SDC Code: S3k Source: Refinitiv data SDC Code: S3 Source: Refinitiv data SDC Code: S5c

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League tables Asia ECM volumes plunge in Q4 „ Equities league tables Final quarter drags equity issuance down 5.7% for 2018

BY FIONA LAU “2018 was very much an IPO the league table, followed by INDIA, KOREA DOWN year,” said Aaron Arth, head of Macquarie. Indian equity issuance, Equity issuance fell 5.7% in Asia Financing Group, Asia ex-Japan The jump in volume was however, tumbled 46% to Pacific in 2018 after a retreat at Goldman Sachs. “We can mainly a result of merger US$15.5bn in 2018. Weak in global risk appetite led to a expect healthy IPO activity in and acquisition-driven equity markets discouraged issuers torrid final quarter. 2019 but it’s unlikely to repeat raisings. Toll-road operator from raising funds, while the Equity and equity-linked the volumes achieved last year. Transurban Group completed weakness of mid-cap stocks in deals in Asia Pacific, excluding What we will see instead will a A$4.2bn entitlement offer particular and concerns over Japan, totalled US$219.9bn in be more convertible bonds, and A$600m placement to fund the health of the finance sector 2018, down from U$233.3bn public secondary and follow-on the acquisition of a controlling added to the negativity. a year earlier, according to offerings.” stake in a Sydney toll road. The big deals of the year Refinitiv data. Naspers’ HK$76.95bn sell- Australian gas and oil producer included Tata Sons’ Rs90bn After a strong start to the down in internet giant Tencent Woodside Petroleum raised (US$1.28bn) sell-down in its year, the final three months Holdings was the biggest A$2.5bn from an entitlement flagship Tata Consultancy registered a total of just secondary offering in 2018. In offer to fund the purchase Services, the Rs35bn IPO US$36.5bn, down 54.4% on the equity-linked market, a of ExxonMobil’s stake in the of ICICI Securities and the the previous year, as markets US$2bn short-dated convertible Scarborough gas field. Last but Rs35bn qualified institutional stuttered and investors braced bond for Country Garden and not least, engineering services placement of Idea Cellular. for even more volatility in a US$2.3bn CB from China company WorleyParsons South Korean ECM volume 2019. Evergrande Group early in completed a A$2.9bn rights fell to US$15.4bn from Goldman Sachs led the the year were the biggest issue to fund the acquisition US$18bn in 2017. Highlights of league table, having managed international trades. of the energy, chemicals and the year included the US$1bn 81 deals totalling US$17bn, resources division of Jacobs GDR offering for Kakao Corp, followed by Morgan Stanley AUSTRALIA JUMP Engineering Group. a W929bn (US$823m) block in (US$14.8bn) and UBS Australia was the second On the IPO front, refinery Samsung C&T and Temasek (US$12.5bn). most active market for equity and retailing company Viva Holdings’ selldown in Celltrion Issuers from China, as usual, issuance in the region in 2018, Energy completed the largest and Celltrion Healthcare, accounted for most of the year’s raising A$37bn (US$26bn) float in the country in four which raised a combined activity, raising US$129.6bn or compared with A$31bn in years with a A$2.65bn offering. W1.07trn. „ 59% of the entire market. 2017. UBS was on the top of Four Chinese companies Top bookrunners of global common Top bookrunners of global convertible completed multi-billion Global Equity and Equity-related stock Asia Pacific (ex-Japan) offering Asia Pacific (ex-Japan) dollar IPOs in the year. Asia Pacific incl Australasia, ex Japan 1/1/18 – 31/12/18 1/1/18 – 31/12/18 China Tower, the world’s 1/1/18 – 31/12/18 Amount Amount largest operator of mobile Amount Name Issues US$(m) % Name Issues US$(m) % telecommunications towers, Name Issues US$(m) % 1 Morgan Stanley 66 14,424.7 7.4 1 Goldman Sachs 8 4,003.9 13.3 raised HK$58.8bn (US$7.51bn) 1 Goldman Sachs 81 16,950.8 7.7 2 UBS 70 13,602.9 6.9 2 JP Morgan 10 2,695.3 9.0 from a Hong Kong IPO. Chinese 2 Morgan Stanley 68 14,836.2 6.8 3 Goldman Sachs 77 13,189.5 6.7 3 CICC 6 1,850.3 6.2 smartphone maker Xiaomi 3 UBS 66 12,508.8 5.7 4 Citigroup 81 11,948.3 6.1 4 Citic Sec 4 1,491.5 5.0 raised HK$42.6bn from its 4 Citigroup 78 11,813.2 5.4 5 CICC 34 9,815.1 5.0 5 China Sec 7 1,338.7 4.5 float and online services 5 CICC 40 11,665.3 5.3 6 BAML 22 7,943.7 4.1 6 8 1,324.3 4.4 provider Meituan Dianping 6 Citic 55 8,528.7 3.9 7 Citic Sec 51 7,037.2 3.6 7 Huatai Sec 4 1,125.5 3.8 completed a HK$33.1bn listing. 7 JP Morgan 51 8,478.5 3.9 8 Credit Suisse 48 6,865.6 3.5 8 CSC Financial 2 941.0 3.1 In the domestic China market, 8 BAML 24 8,257.3 3.8 9 JP Morgan 45 6,243.5 3.2 9 Minsheng Sec 7 935.2 3.1 Foxconn Industrial Internet 9 Credit Suisse 56 8,190.0 3.7 10 Huatai Sec 26 5,034.5 2.6 10 China Merchants Sec 4 855.7 2.9 raised Rmb27.12bn (US$3.94bn) 10 Huatai Sec 29 6,157.1 2.8 11 China Sec 32 4,597.8 2.4 11 HSBC 6 848.0 2.8 from a Shanghai IPO. 11 China Sec 39 5,936.5 2.7 12 Macquarie 26 4,566.3 2.3 12 Bank of China 2 729.7 2.4 IPO volumes gained 1.9% 12 Guotai Junan Sec 38 4,846.2 2.2 13 Guotai Junan Sec 34 4,161.2 2.1 13 Morgan Stanley 4 710.6 2.4 over the year, helped by a 13 China Merchants Sec 35 4,562.2 2.1 14 Deutsche 33 3,975.6 2.0 14 Zhongtai Sec 3 689.8 2.3 rebound in Hong Kong that 14 24 4,387.1 2.0 15 China Merchants Sec 31 3,706.4 1.9 15 Guotai Junan Sec 4 685.1 2.3 cemented the city’s position as 15 Deutsche Bank 35 4,288.1 2.0 16 Haitong Sec 50 2,726.1 1.4 16 Deutsche 3 584.2 1.9 the world’s top IPO fundraising 16 Haitong Sec 56 3,210.8 1.5 17 CMB 25 2,678.0 1.4 17 Caitong Sec 1 547.7 1.8 venue. According to data from 17 HSBC 23 2,990.4 1.4 18 BNP Paribas 15 2,294.9 1.2 18 Ping An Sec 2 536.6 1.8 the Hong Kong Exchanges 18 BNP Paribas 18 2,813.3 1.3 19 HSBC 17 2,142.4 1.1 19 BNP Paribas 3 518.4 1.7 and Clearing, 30 companies 19 CMB 25 2,678.0 1.2 20 Guosen Sec 12 2,112.0 1.1 20 China Galaxy Sec 2 498.6 1.7 completed mainboard IPOs in 20 Bank of China 15 2,315.2 1.1 Total 2,126 196,007.9 Total 140 30,042.5 November and December, up Total 1,841 219,991.9 Market volume *Market volume from 24 in the same period of Proportional credit Proportional credit 2017. Source: Refinitiv data Source: Refinitiv data SDC Code: C4a2 Source: Refinitiv data SDC Code: C9b1

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TOP STORY INVESTMENT BANKING Poor second half sinks Asian IB fees China slowdown shrinks regional fee pool

Asian investment banking fees slid 10% in steadily got worse and we began to see more LISTINGSû4HREEûOFûTHOSEûnû#HINAû4OWERû 2018 after a disappointing second half, in market volatility and valuations coming (+BN û53BN û8IAOMIû(+BN û a year that saw global banks make strong down.” ANDû-EITUANû$IANPINGû(+BN ûnûLISTEDû rankings gains in M&A and equity capital “There were still some big deals getting INû(ONGû+ONGûANDûTHEûFOURTH û&OXCONNû markets while a feeble domestic stock done in the second half of the year, but )NDUSTRIALû)NTERNETû2MBBNûORû market hobbled their Chinese rivals. overall the market became a lot more 53BN ûINû3HANGHAI Overall investment banking fees in Asia challenging.” /VERALLû%#-ûFEESûFELLûûTOû53BN ûBUTû 0ACIlCûEX *APANûSTOODûATû53BNûAGAINSTû BANK OF CHINA retained its top position in the WEREûmATûATû53BNûVERSUSû53BNûINû 53BNûINû ûACCORDINGûTOû2ElNITIVû )"ûFEEûLEAGUEûTABLES ûGENERATINGû53BNûINû ûONCEû! SHAREûDEALSûAREûEXCLUDED data. FEESûFORûAûûSHAREûOFûWALLETûnûMOSTLYûTHANKSû -!ûFEESûEDGEDûUPûûTOû53BNûASû !LTHOUGHûFEESûEDGEDûUPûûTOû53BNû TOûITSûSYNDICATEDûLOANûBUSINESSûnûWHILEûCITIC an increase in overseas activity from Korea INûTHEûlRSTûHALF ûTHEûTRENDûREVERSEDûINûTHEû SECURITIES stayed put in second place with a ANDû*APANûMOREûTHANûOFFSETûAûDECLINEûINûHIGH lNALûSIXûMONTHS ûWHENûTHEYûSLUMPEDûMOREû ûMARKETûSHARE PROlLEûOUTBOUNDû#HINESEûDEALS THANûAûlFTHûTOû53BN ûASûTHEûMACROû GOLDMAN SACHS was among the biggest risers, 'OLDMANû3ACHS û5"3ûANDû#REDITû3UISSEû ENVIRONMENTûDETERIORATEDûINûTHEûWAKEûOFû53 moving up seven places in the standings to took the top three slots for M&A fees. Last China trade tensions and rising interest rates. third, while UBSûEDGEDûUPûONEûPLACEûTOûlFTH YEAR û-ORGANû3TANLEYûWASûTHEûHIGHESTûRANKEDû h4HEREûWASûDElNITELYûAûMARKEDûCONTRASTû CREDIT SUISSE and HSBC remained unchanged international bank in third place. between the two halves,” said David Chin, in seventh and eighth respectively, while &EESûFROMûLOANSûROSEûûTOû53BNûINû head of corporate client solutions for Asia CITIGROUP and MORGAN STANLEYûFELLûTOûSIXTHûANDû an impressive year for syndicated lending, on 0ACIlCûATû5"3 ninth, respectively. INDUSTRIAL & COMMERCIAL the back of strong volumes in China and a h4HEûlRSTûHALFûWASûSTILLûQUITEûSTRONG û BANK OF CHINA and CHINA INTERNATIONAL CAPITAL mURRYûOFûRElNANCINGS PARTICULARLYûINûTHEûlRSTûQUARTERûBUTûTHENû CORPORATION rounded off the top 10. Debt capital markets suffered the biggest towards the end of the second quarter, things DIP ûWITHûOVERALLûFEESûDOWNûûTOû53BNû TECH LISTINGS Fees from G3 bonds fell by almost a quarter 2018 IB Fee League Table As in the previous year, global banks held TOû53BN ASIA PACIFIC (EX-JAPAN) SIXûOFûTHEûTOPûûSPOTS ûALTHOUGHûTHEYûMADEû “Last year, market conditions were very Values fees Share of SIGNIlCANTûINROADSûINû-!ûANDû%#- challenging in getting deals done. We saw Rank Row labels in (US$)(m) wallet (%) 4HEYûTOOKûSIXûOFûTHEûTOPûûPOSITIONSûINû a record number of transactions pulled as a 1 Bank of China 1,475.26 7.53 THEû%#-ûFEEûLEAGUEûTABLESûFORû!0!#ûEX result of the headwinds,” said Terence Chia, 2 Citic Sec 771.23 3.93 *APAN ûDOUBLEûTHEûNUMBERûFORûTHEûPREVIOUSû HEADûOFû!0!#ûDEBTûSYNDICATEûATû#REDITû3UISSE 3 Goldman Sachs 706.69 3.61 YEARû4HISûSEAûCHANGEûWASûAûREmECTIONûOFûTHEû “In times like this, it is all the more 4 ICBC 600.65 3.06 drop in activity in mainland China and the important to stay close to clients to provide 5 UBS 542.95 2.77 dominance of technology listings, which support and innovative solutions such 6 Citigroup 538.44 2.75 played into the strengths of global banks as offering issuers underwriting for deal 7 Credit Suisse 515.79 2.63 because of their superior international EXECUTIONûCERTAINTYûORûPROVIDINGûLEVERAGEûTOû 8 HSBC 502.93 2.57 DISTRIBUTIONûANDûSECTORûEXPERTISE investors to club a private deal when public 9 Morgan Stanley 484.58 2.47 The four largest IPOs of the year were all markets are shut.” 10 CICC 458.26 2.34 technology, media and telecommunications THOMAS BLOTT 11 JP Morgan 446.10 2.28 12 ABC 445.21 2.27 INVESTMENT BANKING FEES (US$bn) 13 CCB 383.56 1.96 8 14 Deutsche Bank 350.00 1.79 7 15 Guotai Junan Sec 322.15 1.64 6 16 Haitong Sec 305.28 1.56 5 17 BAML 278.91 1.42 18 CSC Financial 265.95 1.36 4

19 CMB 246.14 1.26 3 20 BoCom 235.90 1.20 2 21 China Merchants Sec 231.17 1.18 22 ANZ 220.37 1.12 1 23 Macquarie Group 213.66 1.09 0 DCM ECM LoansM&A 24 Standard Chartered 209.80 1.07 China 2017 APAC ex-Japan, ex-China 2017 25 Huatai Sec 199.88 1.02 China 2018 APAC ex-Japan, ex-China 2018 Grand Total 10,950.87 55.87 Source: Refinitiv data Source: Refinitiv data

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pricing during bookbuilding. ASIC warns on ECM allocations !3)#ûSAYSûITûHASûTAKENûACTIONûINûSOMEû cases of “poor conduct relating to The Australian securities regulator has )NûITSû PAGEûREPORTûINTOûALLOCATIONSûINû allocations and messages provided to warned equity underwriters to steer clear EQUITY RAISINGûTRANSACTIONS û!3)#ûHIGHLIGHTSû investors”, for instance regarding the OFûCONmICTSûOFûINTERESTSûINûCAPITALûRAISINGSû POTENTIALûAREASûOFûCONmICTûOFûINTERESTûINû HANDLINGûBYû'OLDMANû3ACHSûOFûANû!Mû and recommended improvements in how allocation decisions. 53M ûBLOCKûTRADEûINû(EALTHSCOPEû share allocation decisions are made. &ORûINSTANCE ûMANYûMID SIZEDû SHARESûINûû4HEû53ûBANKûSIGNEDûANû The AUSTRALIAN SECURITIES AND INVESTMENTS stockbrokers were found to have allocated ENFORCEABLEûUNDERTAKINGûINû*ULYûûFORû COMMISSION looked into some 300 IPOs and new shares to employees, which might overstating the level of demand in the deal 200 equity placements carried out in the PRESENTûAûRISKûOFûCONmICTûOFûINTERESTûTOûBOTHû ANDûMADEûAû!MûCOMMUNITYûBENElTû last four years. It found that shares sold in the issuers and investors. payment. NEWûLISTINGSûGAINEDûANûAVERAGEûOFûûONû “Where personal interests take The regulator says it intends to follow their debut while those sold in a placement precedence over client interests this may up this report with industry consultation ROSEûANûAVERAGEûOFûûONEûDAYûAFTERûTHEû reduce the allocation available for clients on market practices in debt capital market transaction. and result in poor advice or outcomes for transactions as well. h4HATSûûTHATûSHOULDûHAVEûGONEû clients,” the report says. It will seek harsher punishments, arguably to the issuer not into the hands The report calls on underwriters to avoid including possible criminal sanctions, for OFûINSTITUTIONALûINVESTORSûIEûTHEûBROKERSû THEûUSEûOFûOVERLYûEXPRESSIVEûLANGUAGEûSUCHû STOCKBROKINGûHOUSESûTHATûBENElTûFROMû CLIENTS vû!3)#û#OMMISSIONERû#ATHIEû as “heavily oversubscribed” in messages to CAPITALûRAISINGSûUNLAWFULLY û2EUTERSûREPORTED !RMOURûTOLDû2EUTERS investors indicating demand or intended !3)#ûFOUNDûTHATûAûTOTALûOFû!BNûINû

-$"ûEMPLOYEEû*ASMINEû,OOûANDûlNANCIERû Goldman. Malaysia files *HOû,OWûINûCONNECTIONûWITHûTHEûBONDû -ALAYSIAûWILLûALSOûSEEKûJAILûTERMSûOFûUPûTOû offerings. 10 years for each of the individuals accused, criminal charges “The charges arise from the commission Thomas said. and abetment of false or misleading h(AVINGûHELDûTHEMSELVESûOUTûASûTHEûPRE against Goldman statements by all the accused in order to eminent global adviser/arranger for bonds, DISHONESTLYûMISAPPROPRIATEû53BNûFROMû THEûHIGHESTûSTANDARDSûAREûEXPECTEDûOFû -ALAYSIAûlLEDûCRIMINALûCHARGESûAGAINSTû the proceeds of three bonds issued by the 'OLDMANû3ACHSû4HEYûHAVEûFALLENûSHORTûOFûANYû GOLDMAN SACHSûANDûTWOûOFûTHEû53ûBANKSû SUBSIDIARIESûOFû-$" ûWHICHûWEREûARRANGEDû standard,” Thomas said. former employees in connection with a ANDûUNDERWRITTENûBYû'OLDMANû3ACHS vû Low has said he is innocent. A spokesman corruption and money laundering probe at Thomas said in a statement. did not immediately respond to a request for STATEûFUNDû-$" In an emailed statement, a spokesman for comment. Goldman has been under scrutiny for its Goldman said “these charges are misdirected” Loo, against whom Malaysia brought ROLEûINûHELPINGûRAISEû53BNûTHROUGHûTHREEû and that the bank continues to cooperate OTHERû-$"ûRELATEDûCHARGESûLASTûMONTH ûHASû BONDûOFFERINGSûFORû-$" ûWHICHûISûTHEûSUBJECTû with all authorities in their investigations. NOTûCOMMENTEDûONûTHEû-$"ûCASEûANDûHERû OFûINVESTIGATIONSûINûATûLEASTûSIXûCOUNTRIES The bank has consistently denied whereabouts are unknown. -ALAYSIASû!TTORNEYû'ENERALû4OMMYû wrongdoing. ,AWYERSûFORû,EISSNERûANDû.GûCOULDûNOTûBEû Thomas said criminal charges under the 4HOMASûSAIDûPROSECUTORSûWILLûSEEKûlNESû reached immediately. COUNTRYSûSECURITIESûLAWSûWEREûlLEDûONû AGAINSTûTHEûACCUSEDûhWELLûINûEXCESSvûOFûTHEû 4HEû53û$EPARTMENTûOFû*USTICEûHASûSAIDû $ECEMBERûûAGAINSTû'OLDMAN ûITSûFORMERû ALLEGEDLYûMISAPPROPRIATEDû53BNûBONDû ABOUTû53BNûWASûMISAPPROPRIATEDûFROMû BANKERSû4IMû,EISSNERûANDû2OGERû.G ûFORMERû PROCEEDSûPLUSû53MûINûFEESûRECEIVEDûBYû -$" ûINCLUDINGûSOMEûMONEYûTHATû'OLDMANû

Who’s moving where...

„ JP MORGAN has same year to join „ Gordon Crosbie- Jefferies declined to rehired Ling Zhang as biotechnology Walsh, co-head comment. head of healthcare company BGI of Hong Kong Jefferies has added a and technology Genomics as chief investment banking few new hires in the investment banking operating officer. at JEFFERIES, has left past several months. It in China. Zhang previously the bank, according hired Jun Wu from JP Zhang, who will spent eight years to people with direct Morgan, where he was be based in Hong with Citigroup and knowledge of the co-head of healthcare Kong, worked for five years with China matter. for Asia Pacific. It also the US bank briefly International Capital Crosbie-Walsh was poached Alex Yuen in 2015 as head of Corporation. also the head of Asia from JP Morgan to China healthcare ECM and syndicate. become head of China investment banking He joined in 2013 from ECM and syndicate. before leaving the JP Morgan.

14 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

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EQUITYûCAPITALûHADûBEENûRAISEDûONûTHEû!38û SINCEû*ULYû ûOFûWHICHû!BNûWASûINITIALû MUFG lifts commercial banking CAPITALûANDû!BNûWASûSECONDARYûRAISINGS The report adds further pressure on the head to CEO COUNTRYSûBANKSûANDûlNANCIALûINSTITUTIONS û which are already under scrutiny from a MITSUBISHI UFJ FINANCIAL GROUP has picked the OFû-5&'û"ANKûAFTERû/YAMADASûRESIGNATIONû 2OYALû#OMMISSIONûFORûWIDESPREADûINSTANCESû head of its commercial banking division, due to ill health. OFûlNANCIALûMALPRACTICE Kanetsugu Mike, as its new president and *APANSûLARGESTûLENDERûHASûBEENû 3EPARATELY ûLASTû*UNE ûFEDERALûPROSECUTORSû CHIEFûEXECUTIVEûOFlCER EXPANDINGûAGGRESSIVELYûOVERSEASûTOûOFFSETûAû CHARGEDû!USTRALIAûû.EWû:EALANDû"ANKINGû -IKE û ûWILLûCONTINUEûINûHISûROLEûASû stagnant domestic operating environment. 'ROUP û#ITIGROUPûANDû$EUTSCHEû"ANK ûASû CHIEFûEXECUTIVEûOFûTHEûCOMMERCIALûBANKINGû Last May, it announced its biggest revamp WELLûASûSIXûINDIVIDUALûBANKERS ûWITHûCRIMINALû UNIT û-5&'û"ANK ûATûLEASTûFORûTHEûTIMEû SINCEûTHEûMERGERûOFû-ITSUBISHIûANDû5&*ûINû CARTELûCHARGESûOVERûAûûSHAREûPLACEMENT BEING û*APANSûNUMBERûONEûLENDERûSAIDû ûWITHûTHEûCREATIONûOFûAûNEWûSTRUCTUREû 4HEûCASEûCENTRESûAROUNDûMû!.:û ASûPARTûOFûAûTHREE YEARûPLANûDESIGNEDû SHARESûTHATûWEREûLEFTûUNSOLDûINûTHEûBANKSû to make better use of its international !BNûINSTITUTIONALûSHAREûPLACEMENTû network. INû!UGUSTûû*0û-ORGAN ûTHEûTHIRDû -5&' ûWHICHûALREADYûHASûBYûFARûTHEû underwriter on the deal, is alleged to have MUFG’s selection of Mike marks LARGESTûOVERSEASûPRESENCEûOFû*APANSûTHREEû been granted immunity from prosecution a shift in custom in Japan, megabanks thanks to its shareholdings in after reporting the case. where most chief executives are other lenders, was also given the nod from CANDY CHAN )NDONESIASûlNANCIALûREGULATORû/*+ûLASTûYEARû typically drawn from corporate TOûRAISEûITSûSTAKEûINû"ANKû$ANAMONûABOVEû planning departments.  HELPEDûRAISE ûBYûHIGH LEVELûOFlCIALSûOFûTHEû -5&'ûANNOUNCEDûPLANSûTOûACQUIREû FUNDûANDûTHEIRûASSOCIATESûFROMûûTHROUGHû AûMAJORITYûSTAKEûINû"ANKû$ANAMONûINû  $ECEMBERûûAFTERûAGREEINGûTOûBUYûOUTû 53ûPROSECUTORSûlLEDûCRIMINALûCHARGESû THEûSTAKEûHELDûBYû3INGAPORESû4EMASEKû AGAINSTû,EISSNERûANDû.GûLASTûMONTHû,EISSNERû ONû$ECEMBERûû(EûREPLACESûCURRENTû (OLDINGSû-5&'ûPREVIOUSLYûSAIDûITûWANTEDû pleaded guilty to conspiracy to launder money #%/ûNobuyuki Hirano û ûWHOûHASûBEENû TOûREACHûATûLEASTûAûûINTERESTûINûTHEû and conspiracy to violate the Foreign Corrupt appointed chairman. bank, although foreign banks in Indonesia 0RACTICESû!CTû.G ûDETAINEDûINû-ALAYSIA ûISû -5&'ûALSOûSAIDûTHATûCURRENTûCHAIRMANû are barred from holding stakes above FACINGûEXTRADITIONûTOûTHEû5NITEDû3TATES Kiyoshi Sono û ûWILLûBECOMEûCHAIRMANûOFû ûWITHOUTûTHEûREGULATORûGRANTINGûANû 4HEû-ONETARYû!UTHORITYûOFû3INGAPOREûSAIDû -5&'û"ANK ûWHILEûCHIEFûINFORMATIONûOFlCERû EXCEPTION ONû$ECEMBERûûITûWASûINCREASINGûITSûBANû Hironori Kamezawa ûûWILLûBECOMEûDEPUTYû -IKEûCAMEûUNDERûlREûLASTû/CTOBERû against Leissner to a lifetime prohibition president. The changes are effective April 1. AFTERû-5&'û"ANKûWENTûAHEADûWITHûTHEû order following his admission to criminal -5&'SûSELECTIONûOFû-IKEûMARKSûAû OPENINGûOFûAûBRANCHûINû2IYADHûONLYûAûFEWû CHARGESûINûTHEû53 SHIFTûINûCUSTOMûINû*APAN ûWHEREûMOSTû WEEKSûAFTERûTHEûMURDERûOFû3AUDIûJOURNALISTû )Nû-ARCHû û-!3ûBANNEDû,EISSNERûFROMû CHIEFûEXECUTIVESûAREûTYPICALLYûDRAWNûFROMû *AMALû+HASHOGGIû-IKEûWASûONEûOFûMANYû entering the securities industry for 10 years corporate planning departments. INTERNATIONALûEXECUTIVESûTHATûPULLEDûOUTûOFû following its investigation, which found that -IKE ûWHOûJOINEDûTHEûBANKûINû û the Future Investment Initiative conference he had made statements vouching for Low has spent around half his career overseas INû3AUDIû!RABIAûFOLLOWINGûTHEûOUTCRYû-5&'û on behalf of his bank without its knowledge ANDûWASûRECENTLYûHEADûOFû-5&'SûGLOBALû "ANKûDEPUTYûPRESIDENTû%IICHIû9OSHIKAWAû or consent. BUSINESSûGROUPûBEFOREûBEINGûTAPPEDûINûû attended in his stead. A ANANTHALAKSHMI to succeed Takashi Oyamada at the helm THOMAS BLOTT

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„ Carol Wu has taken replaced Kok Ann Lim „ Kate Kwan Services, which she over as CEO of DBS as chairman of the has joined BANCO joined in May 2017. VICKERS HONG KONG, board of DBS Vickers SANTANDER’s loan Prior to IL&FS Global effective December Hong Kong, as the syndication team as Financial Services, 31. latter will be retiring an executive director. Kwan was with JP Wu will remain head soon. Based in Hong Kong, Morgan, where she of equity research at Karoonyavanich Kwan reports to Peter worked for five years. DBS Hong Kong. is the CEO of DBS Zhang, head of global Before that, she Josephine Lam, Asia Capital, the debt financing for worked at Citigroup, current CEO of DBS investment banking Asia. HSBC and Societe Vickers Hong Kong, arm for DBS in Hong Kwan was previously Generale in loan has left the company. Kong and China. CEO of the Hong syndications for a Separately, Anuruk Kong arm of India’s total of 12 years. Karoonyavanich has IL&FS Financial

International Financing Review Asia January 5 2019 15 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS People &Markets

)Nû!PRIL ûTHEû#HINAû3ECURITIESû2EGULATORYû UBS formalises control of China JV Commission introduced new rules allowing foreign banks to raise their shareholdings UBSûHASûBECOMEûTHEûlRSTûFOREIGNûBANKûTOû 2MBMû4HOSEûlLINGSûIMPLYûAûVALUATIONû INûTHEIRûSECURITIESû*6SûTOû ûWITHûTHEûAIMû RAISEûITSûSTAKEûINûAû#HINAûSECURITIESûJOINTû FORû5"3û3ECURITIESûOFûAROUNDû2MBBN ûORû of eventually removing the cap altogether VENTUREûTOûûAFTERûITSûLONG AWAITEDû AROUNDû53M within three years. ACQUISITIONûlNALLYûWENTûTHROUGH ûTHEû3WISSû 5"3ûISûNOWûONLYûTHEûSECONDûFOREIGNûBANK û The changes have triggered a new wave INVESTMENTûBANKûSAIDûONû$ECEMBERû ANDûTHEûlRSTûUNDERûNEWûRULESûINTRODUCEDû of enthusiasm among international banks. &OLLOWINGûTHEûACQUISITION û5"3ûNOWûHOLDSû -ORGANû3TANLEY ûWHICHûCURRENTLYûHOLDSûAûû AûûSTAKEûINû5"3û3ECURITIES ûWHILEûTHEû STAKEûINû-ORGANû3TANLEYû(UAXINû3ECURITIES û OTHERûSHAREHOLDERSûAREû"EIJINGû'UOXIANGû In April, the China Securities has applied to increase its shareholding to 0ROPERTYû-ANAGEMENTû û'UANGDONGû Regulatory Commission  0ROVINCIALû#OMMUNICATIONû'ROUPû û introduced new rules allowing *0û-ORGAN ûWHICHûWALKEDûAWAYûFROMûITSû ANDû#HINAû'UODIANû#APITALû(OLDINGSû  foreign banks to raise their PARTNERSHIPûWITHû&IRSTû#APITALû3ECURITIESû 5"3 ûWHICHûPREVIOUSLYûHELDûAûûSTAKEû INû ûHASûAPPLIEDûTOûSETûUPûAûNEWû*6 û INûTHEû*6 ûDIDûNOTûDISCLOSEûTHEûACQUISITIONû shareholdings in their securities WHILEû#ITIGROUPûISûLOOKINGûTOûEXITûFROMûITSû price. In October, China Guodian Capital JVs to 51%. PARTNERSHIPûFROMû/RIENTû3ECURITIESûINûORDERû SAIDûINûAûSTATEMENTûTOûTHEû#HINAû"EIJINGû to set up a new one. %QUITYû%XCHANGE ûAûGOVERNMENT RUNûBOURSEû -EANWHILE û$"3û'ROUPûANDû.OMURAû dealing with large share transfers, that it BYû#HINASûSECURITIESûREGULATORûLASTû!PRIL ûTOû CONlRMEDûTHATûTHEYûHAVEûAPPLIEDûTOûSETûUPû WASûSELLINGûAûûSTAKEûINû5"3û3ECURITIESû HOLDûAûMAJORITYûSTAKEûINûITSû*6 NEWû*6S ûENTERINGûTHEûINDUSTRYûFORûTHEûlRSTû ATûAûmOORûPRICEûOFû2MBMû53M  (3"# ûWHICHûINVESTEDûUNDERûAûSPECIlCû TIME ûWHILEûANDû3OCIETEû'ENERALEûSAIDûTHATû Meanwhile, Cofco Group said in a trade agreement between China, Hong Kong it “plans to set up its securities business in separate statement that it was selling its ANDû-ACAU ûALREADYûHOLDSûAûûSTAKEûINûITSû #HINAûVIAûAûLOCALûJOINTûVENTUREv ENTIREûûSTAKEûINûTHEû*6ûFORûAûmOORûPRICEûOFû *6 û(3"#û1IANHAIû3ECURITIES THOMAS BLOTT

Who’s moving where...

„ UBS has appointed branch, while Liu will „ Shrikesh Pabari was Pabari joins from new heads of continue as head of appointed head of UBS, where he was a investment banking the Shanghai branch. sales trading for India director in the India at its China securities The appointments at CREDIT SUISSE last sales trading team. joint venture. were announced month. Lijun Sun and shortly before UBS Based in Mumbai, Wencheng Liu have raised its stake in its Pabari will be been appointed co- securities JV to 51%, responsible for heads of corporate becoming the first managing equities client solutions at foreign bank to take client trading and UBS Securities. In a majority stake in a execution. He reports addition, Sun has JV under new rules to Rajat Sabharwal, been appointed head introduced by China’s head of equities for of the UBSS Shenzhen securities regulator. India.

16 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

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Credit Suisse IN BRIEF China JV expands equity trading services Standard Chartered CBIRC US sanctions oversight extended First approvals for WM units CREDIT SUISSE's securities joint venture in China said it was expanding its equity trading services STANDARD CHARTERED’s deferred prosecution BANK OF CHINA and CHINA CONSTRUCTION BANK have to cover more institutional investors including agreement with the US authorities has been become the first banks to receive approval hedge funds. extended for a fourth time. from China’s banking regulator to set up Credit Suisse Founder Securities said on The Anglo-Asian bank said in a statement wealth management subsidiaries under new December 20 that its newly created Asset on December 21 that its DPA with the US regulations published last month. Management Brokerage Trading Terminal Department of Justice and the New York County The China Banking and Insurance Regulatory would provide brokerage services to domestic District Attorney’s Office, which was due to Commission said in a statement on its private securities investment funds including expire at the end of the year, had been extended website on December 27 that it granted both hedge funds. until March 31. banks approval, without providing further CSFS received its A-share brokerage licence StanChart said that the terms of the extension details. in November 2015, making Credit Suisse at of the DPA were “materially the same” as prior Earlier in the month, the CBIRC introduced new the time only the third foreign bank to extensions, without providing further details. rules governing banks’ wealth management receive such a licence after Goldman Sachs StanChart originally entered into the DPA in subsidiaries. These state that the wealth and UBS. HSBC's JV, HSBC Qianhai December 2012, accepting that it had broken management subsidiaries of commercial banks Securities, has since obtained a brokerage laws by processing payments for sanctions must have a minimum registered share capital licence as well. targets in countries including Iran, Burma, of Rmb1bn (US$146bn). CSFS currently provides trading and execution Sudan and Libya. In addition, banks are able to allocate no more services to public mutual funds, qualified foreign The emerging markets lender avoided than 20% of funds from wealth management institutional investors and renminbi qualified prosecution in exchange for a cash settlement of products to shares, while for non-standard debt foreign institutional investors. US$327m and an agreement with US authorities assets, typically referred to as shadow loans, Its expansion to cover private funds comes to improve its sanctions compliance. this figure is 35%. as China steps up reforms designed to Its DPA was extended first for three years Beijing has started relaxing rules governing augment the number of institutional investors in 2014 and then a further nine months in how its banks operate due to growing concerns participating in the A-share market. November 2017 before being extended for a about its slowing economy and falling share According to data from the Asset Management further six months in July this year. prices. Association of China, China's private securities The DPA is not be confused with a similar The new rules allow banks to invest directly investment fund industry recorded growth of agreement it struck with the New York State in the stock market using funds raised from around 5% in the nine months to September Department of Financial Services in 2012 in publicly sold products for the first time. 2018, reaching Rmb2.4trn (US$350m) in total which it agreed to pay a fine of US$340m in Previously, banks were only able to invest in the assets under management. addition to being subject to a similar period of stock market using funds raised from privately Credit Suisse currently holds a 33% stake in the monitoring. sold bank WMPs. JV. In May, its partner, Founder Securities, said In November, StanChart announced that the According to data from the Banking Sector it was liaising with the regulator about changes Department of Financial Services would end its Wealth Management Product Registration and to the shareholding of the JV, without providing period of monitoring of the bank on December Entrustment Centre, a government body that further details. 31. tracks the sector, outstanding WMPs stood In April, China's securities regulator introduced StanChart also said in its statement that it was at Rmb29.54trn at the end of 2017, up 1.69% new rules that finally allow foreign banks to continuing to cooperate with US authorities year on year, although this was a much smaller hold majority stakes in their securities JVs over ongoing investigations into possible further increase compared with the previous year’s following years of lobbying, particularly from sanctions violations related to Iran. 23.6% jump. US banks.

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„ Abhijit Das, head of move will be. „ HONG KONG chief operating officer. equity capital markets Elara did not respond EXCHANGES AND Chen, who worked at India’s ELARA to an email seeking CLEARING has hired closely with the CAPITAL, is leaving the comment. Citigroup’s former exchange during her company, a person head of Hong Kong time at Citigroup on with knowledge of the securities services as the Stock Connect development said. head of post-trade schemes, will also Das, based in business development. oversee HKEx’s Mumbai, joined the Cindy Chen, who left recently announced investment bank Citigroup in October, initiative to use in 2014 from Kotak started at the Hong blockchain technology Investment Bank. Kong bourse last to improve post-trade It is not clear at this month. She reports to processes. stage what his next Calvin Tai, HKEx’s joint

International Financing Review Asia January 5 2019 17 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS People &Markets

Securities and Exchange Board of India major plank of Prime Minister Narendra Modi’s reported certain deficiencies and had since Expansion of differential voting rights plans to revive lending, which has slowed as taken action to address them. banks struggle with bad debt. The SECURITIES AND EXCHANGE BOARD OF INDIA is Under the merger plan, Bank of Baroda said it Monetary Authority of Singapore considering expanding the scope of differential would issue 110 shares of 2 rupees each for every Bonds for retirement plans voting right shares, Sebi Chairman Ajay Tyagi 1,000 shares of Dena Bank worth 10 rupees said at an industry meeting. each, while Vijaya Bank’s shareholders would Singapore’s retail investors will soon be able to The regulator has formed a panel under the get 402 Bank of Baroda shares of 2 rupees each dip into their compulsory retirement funds to Primary Markets Advisory Committee to make for every 1,000 shares of 10 rupees each. buy Singapore government savings bonds. recommendations in January, Tyagi said in Morgan Stanley said the swap ratio for the The MONETARY AUTHORITY OF SINGAPORE announced late December in Mumbai at a capital markets merger implies a discount of about 27% to Dena in mid-December that investors can use their summit organised by the Association of Bank’s shares and a discount of about 6% to supplementary retirement scheme funds to buy Investment Bankers of India. Vijaya Bank’s shares against their last closing. the bonds from February 1. Investors will also be At present, companies are not allowed to offer The merged bank will become India’s second allowed to buy up to S$200,000 (US$145,000) DVR shares via an IPO and can only issue them largest public sector bank and will “help of savings bonds in cash and via the SRS through a rights or bonus share offering. These create a strong globally competitive bank”, the scheme, double the current maximum. shares offer higher dividends but have no voting government said in a statement. The central bank said the move, which expands rights, allowing controlling shareholders to raise The merger will come into force on April 1, the the available range of investment products, was capital without diluting their stakes. Only three government said. in response to requests from investors. companies – Tata Motors, Gujarat NRE Coke The Singapore government has garnered about and Future Enterprises – have issued them. JP Morgan S$3.7bn of investments from close to 100,000 An equity capital markets banker with HKMA fine for AML breaches individual investors since the savings bonds knowledge of the development said the programme was launched in October 2015. committee is evaluating if DVRs can be issued The Hong Kong Monetary Authority has hit In the last monthly sale, investors had until via an IPO, follow-on public offering and JP MORGAN with a HK$12.5m (US1.6m) fine December 26 to apply for savings bonds which qualified institutional placement. following widespread breaches of anti-money settled on January 2. The 10-year bonds will Tyagi noted that dual-class shares were common laundering and counter-terrorist financing rules. pay 2.01% in year 1 and up to 2.9% if held to in the US, Europe and Brazil and had recently The city’s de facto central bank said in a maturity. Over the 10-year period, the average been introduced in Hong Kong and Singapore. statement on December 28 that JP Morgan annual return will be 2.45%. This was higher “It (DVRs) is useful for stocks where valuation is failed to “establish and maintain effective than the 2.22% level quoted for 10-year not easily possible: technology companies and procedures” concerning wire transfers and for Singapore government bonds in mid-December. for companies where people have faith in the carrying out due diligence on customers. promoters. But there are corporate governance The HKMA also said that the US bank’s remedial Sri Lanka issues and we need to do the balancing,” he said. measures would be assessed by an independent Fewer goverment bonds for foreigners external adviser to ensure it had addressed its Bank of Baroda deficiencies. Sri Lanka plans to restrict foreign holdings of Indian government signs off on merger “We accept the disciplinary action taken by government securities to a maximum 5% from the HKMA,” JP Morgan said in an emailed the current 10%, the governor of the CENTRAL India’s cabinet approved last Wednesday the statement to IFR. “We look forward to working BANK OF SRI LANKA said last Wednesday. merger of BANK OF BARODA with fellow state-run with the independent adviser who will be “In view of the increased volatility in global lenders VIJAYA BANK and DENA BANK, in a step appointed to review our current internal controls financial markets, we also intend to reduce aimed at cleaning up the country’s banking in Hong Kong to verify that the legacy issues the threshold for foreign investment in rupee system. have been addressed by the remedial actions denominated government securities from India had announced the merger plan last year already undertaken by JP Morgan.” 10% of the outstanding government securities amid growing concerns over rising bad loans in The HKMA said it took into its consideration stock at present to 5%,” Governor Indrajit the banking sector. Banking sector reforms are a the fact that JP Morgan had self-identified and Coomaraswamy said, according to Reuters.

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© 2018 Thomson Reuters. 11059626 01/17. РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS COUNTRY REPORT Australia 20 China 24 Hong Kong 35 India 37 Indonesia 41 Japan 42 Laos 43 Macau 44 Malaysia 44 Philippines 45 Singapore 46 South Korea 47 Taiwan 48 Thailand 50 Vietnam 51

main international agencies. move was a negative development as far The national carrier has had a as he was concerned. AUSTRALIA chequered ratings history in recent years, “It is obviously preferable to have two having been cut to junk, Double B status sets of eyes and two sets of logic. When a by both S&P and Moody’s in December company drops one such reference point, DEBT CAPITAL MARKETS 2013. especially if it represents the lower of two The two agencies restored Qantas’ ratings, then we are worried, all the more › QANTAS FLIES SOLO investment-grade mcredentials in so in the volatile aviation sector where November 2015 and February 2016 with greater caution is already required,” he QANTAS AIRWAYS has cancelled its ratings respective upward revisions to BBB– and said. subscription with S&P, citing balance-sheet Baa3 before a further Moody’s upgrade to Qantas bonds were not unsettled by strength and access to diversified funding Baa2 with a stable outlook which came in the news with the yield on the domestic markets, leaving it with a May 2017. 4.75% October 2026s easing 1bp to 4.26% single, Baa2 Moody’s rating from the three An Australian fund manager said the following the announcement.

ANZ retains top spot in quieter year

„ Bonds Aussie major leads domestic issuance, Citi ahead offshore

ANZ retained its now traditional position at of the year. At December 31, the benchmark A$8.5bn from A$14.9bn, as many companies the top of the underwriting league table in 10-year ACGB was yielding 2.33%, 37bp less preferred the pricing and/or tenors available 2018 in a quieter year for Australian dollar than the 10-year T-note 2.70%. in the local syndicated loan and US private bonds. Aided by booming corporate tax receipts, placement markets. Overall Australian dollar supply, total Commonwealth and state government including self-led deals and ABS, bond sales fell from A$45.6bn in 2017 NAB, CITI TOP TABLES fell 10.8% year-on-year to A$161.1bn to A$38.6bn. Meanwhile securitisations National Australia Bank was runner-up for (US$112.9bn) from A$180.6bn in 2017 as dropped to A$27.8bn from A$39.5bn last Aussie dollar underwriting with 74 deal an often challenging global backdrop year in what remains the sector’s largest tickets and a 12.1% market share, followed and Australia’s diminishing absolute yield annual issuance since the global financial by Commonwealth Bank of Australia with advantage sapped offshore appetite for crisis. an 11.0% share from 48 issues, according to Aussie dollar assets. SSA Kangaroos raised A$16.6bn in 2018, Refinitiv data. Securitisations, government, corporate and below the A$21.0bn issued the previous UBS was the best placed overseas bank, Kangaroo bond sales all declined in 2018, year, but non-SSA Kangaroo supply, mostly with a 9.3% market share from 33 trades, with only local bank issuance rising over the from banks, was higher at A$14.4bn against just ahead of Westpac whose 52 transactions 12 months. A$12.6bn. resulted in 9.2% of last year’s Australian Excluding self-led offerings and Domestic financial issuance increased dollar bond business. securitisations, ANZ participated in 88 to A$55.1bn from A$46.9bn, whereas Also in keeping with recent traditions, deals for a 13.9% share of the year’s total domestic corporate supply almost halved, to NAB was again the number one Australian A$100.2bn of Aussie dollar issuance. securitisation house by some distance “The key development in 2018 has been AUSSIE SLOWDOWN in 2018, with a whopping 33.5% of the the rates cycle. This has impacted on foreign A$ BOND SALES FELL 10.8% IN 2018 (A$BN) A$27.5bn ABS market.

demand, notably out of Japan, and made 200 This left it well ahead of the three other the long end particularly challenging, 180 major banks – CBA, Westpac and ANZ – though it has been contained by an 160 who took 16.2%, 14.4% and 9.6% shares, expanding Australian investor base,” said 140 respectively. ANZ’s global head of syndication, Paul 120 Citigroup headed the offshore league White. 100 table, having been on 16 foreign currency Australia’s government yield curve lost the 80 trades for Australian issuers, winning a 10.1% extra juice it offered over the highly liquid US 60 share of the US$51.0bn of overseas bonds Treasury market, a benefit that it had enjoyed 40 sold in 2018. since June 2000. 20 HSBC came in second, with its 26 deals The 10-year Australian Commonwealth 0 representing 9.2% of overseas issuance, Government bond provided a 21bp pick-up 2017 2018 while JP Morgan was third with a 7.6% share over the 10-year US Treasury on January 1 FIG Govt/state ABS from 14 trades. BNP Paribas finished fourth 2018, but the differential turned negative in Kangaroos-SSA Kangaroos-other Corporate with a 6.9% market share from nine trades. February and remained that way for the rest Source: Refinitiv data JOHN WEAVERS

20 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

COUNTRY REPORT AUSTRALIA

AOFM slashes Treasury bond supply

„ Bonds Projected fiscal surpluses underpin Australia’s Triple A rating status

The AUSTRALIAN OFFICE OF FINANCIAL MANAGEMENT issuance is planned for 2018-19, of which Germany, Luxembourg, the Netherlands, has slashed its projected issuance of Treasury A$4.7bn has already been raised. Norway, Singapore, Sweden and Switzerland. bonds in response to a much improved fiscal Fortified by booming corporate tax Moody’s forecast general Australian position, as underlined by the government’s receipts, especially from the mining government debt, which includes local and mid-year economic and fiscal outlook sector, the federal government lowered its state governments, to remain stable at released on December 17. underlying cash deficit forecast in 2018-19 around 43% of GDP in 2019 and 2020. The AOFM now expects to issue around from A$14.5bn to A$5.2bn, or from 0.8% to This is above the median of 35% for wholly A$52bn (US$38bn) of government bonds in 0.3% of GDP. A projected underlying cash Triple A rated sovereigns, but lower than fiscal year 2018-19, down A$18bn from the surplus in 2019-20 has been raised from the Netherlands’ 48.0% and Germany’s A$70bn projected at the time of the 2018-19 A$2.2bn to A$4.1bn. 55.2% and less than half the 99.0% general budget, most of which will be raised from As a result of the improved budget government debt ratio of the US, which is tenders of around A$1bn each week. position, net Commonwealth government rated one notch lower by S&P at AA+. With A$30.3bn of Treasury bonds having debt as a share of GDP is expected to decline Reduced supply and cancellation of a new already been issued by mid-December, the over the medium term from 18.2% in 2018-19 December 2030 line supports the current 10- AOFM no longer plans to establish new lines to 1.5% in 2028-29, according to the MYEFO. year Australian Commonwealth government maturing in September 2023 and December Australia’s improving fiscal fortunes benchmark, the 2.75% November 2028s whose 2030, though a syndicated sale of an existing underpin its position as one of only 10 nations yield fell 4bp to 2.40% following the MYEFO ultra-long bond line may still be considered. to boast Triple A ratings from all three main and subsequent AOFM announcement. Around A$6bn of Treasury indexed bond agencies, alongside Canada, Denmark, JOHN WEAVERS

STRUCTURED FINANCE current TPG shareholders will together own Australia that offers incentives to the 49.9% of the merged group, while Vodafone borrower based on its performance against › COLUMBUS SETS SAIL Group and Hutchison Telecommunications environmental, social and governance criteria. (Australia) will each hold 25.05%. The lender was ANZ, which was also Non-bank lender COLUMBUS CAPITAL has In a statement of issues published on among the 15 mandated lead arrangers in mandated NAB for a potential offering off December 13, the Australian Competition the US$500m sustainability-linked revolver its Triton RMBS programme in early 2019. and Consumer Commission expressed completed in April for Olam International, In July last year, Columbus Capital sold a preliminary concerns that the merger Asia’s first sustainability-linked loan. A$700m (US$497m) equivalent dual-currency may “substantially lessen” competition The sustainability performance of AAL’s prime RMBS, Columbus Capital Triton 2018-1, for mobile and fixed broadband services loan is linked to Sustainalytics’ ESG risk that included US$100m of Class A1-US notes. in Australia. The ACCC has asked for ratings and will be reviewed annually. interested parties to submit responses Netherlands-based Sustainalytics rates the to the statement by January 18 and is sustainability of listed companies based on SYNDICATED LOANS expected to announce its final decision on their ESG performance. the merger on March 28. “The loan will help AAL continue › VODAFONE HUTCH CLOSES LOAN CK Hutchison Holdings owned about to transition to a lower carbon and 88% of Hutchison Telecommunications more sustainable economy by linking VODAFONE HUTCHISON AUSTRALIA has closed a self- (Australia) at the end of 2017. its borrowing rate to its sustainability arranged loan at A$4.75bn (US$3.3bn). Vodafone Hutchison Australia has The deal, launched at up to A$5bn, is now almost 6m mobile subscribers, while TPG Top lead managers of all Australian debt, inc- a A$2bn three-year term loan (facility A), a Telecom has more than 1.9m customers for ABS, MBS (ex-self-funded transactions) A$2bn five-year loan (facility B) and a A$750m its fixed-line residential telecom services 1/1/18 – 31/12/18 five-year revolving credit facility (facility C). It and also has corporate, government and Amount attracted 16 banks in syndication. wholesale clients. Vodafone Hutchison Name Issues A$(m) % The initial interest margins are 110bp Australia and TPG Telecom together own 1 NAB 105 21,308.0 16.7 over BBSY for facility A and 130bp over and operate more than 27,000km of fibre 2 ANZ 97 16,585.7 13.0 BBSY for facilities B and C. At the top level, optic networks, a mobile network with 3 CBA 68 15,452.9 12.1 the all-ins based on the initial margins are more than 5,000 sites, and spectrum assets. 4 Westpac 73 13,113.2 10.3 125bp for the three-year tranche and 145bp The merged entity is expected to have a pro 5 UBS 33 9,342.7 7.3 for the five-year portions. forma enterprise value of about A$15bn. 6 Deutsche 45 8,982.3 7.0 The borrower, a joint venture between For full allocations, see www.ifrasia.com. 7 TD Sec 73 7,281.3 5.7 the UK’s Vodafone Group and Australia-listed 8 Citigroup 27 6,323.3 5.0 Hutchison Telecommunications (Australia), › AAL GETS SUSTAINABILITY-LINKED LOAN 9 Nomura 46 4,333.5 3.4 will be renamed TPG TELECOM after the merger 10 RBC Capital 50 4,289.6 3.4 of Vodafone Hutchison Australia and Australia- ADELAIDE AIRPORT (AAL) has raised a A$50m Total 346 127,672.1 listed TPG Telecom is completed. The merger seven-year sustainability-linked revolving *Market volume and including Kangaroo bonds is expected to close this year, after which credit facility, marking the first loan in Proportional credit Source: Refinitiv data SDC Code: AJ3a

International Financing Review Asia January 5 2019 21 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

performance,” AAL’s managing director a drop in technology shares since the June 30. Mark Young said in a statement. last offer was made in early November, Before that, RFG had negotiated its ANZ has a target of A$15bn to fund and influenced KKR’s decision, they said. In banking covenants that included an facilitate environmentally sustainable particular, the share price of MYOB’s increase in the debt-to-Ebitda ratio to solutions by September 2020. As of nearest competitor Xero had fallen around 3.0x from 2.5x to December 2018, and September 30, it had already funded 20% since October. mandatory amortisation by March 2 2019. A$11.7bn against that target. MYOB shares traded as high as A$3.75 in The August restructuring meant that the AAL was the first airport in Australia to December 2017, but since then have hovered company’s debt facilities were classified as achieve the level 3 optimisation grade under in a A$3.00–A$3.20 range and were trading at current in the FY18 financial statements, Airports Council International’s Airport A$2.98 before the KKR proposal emerged. and it warned of a risk of breaching Carbon Accreditation programme. It also Macquarie Capital is advising KKR on the financial covenants within the next 12 received an award for waste reduction from deal. months. the same organisation, a non-profit body RFG said it remains focused on reducing representing the world’s airports. › RETAIL FOOD GROUP GETS NEW WAIVER balance sheet leverage, and is assessing a range of options including potential › KKR LOWERS MYOB BUYOUT OFFER Fast food franchise owner RETAIL FOOD GROUP asset sales and alternative funding such as has obtained another waiver for testing of recapitalisation. US private equity giant KKR & CO has slashed financial covenants from lenders, having its bid for Australian accounting software already renegotiated the terms of its debt › GOLDEN ENERGY SIGNS FUNDING maker MYOB GROUP, disappointing lenders twice in a year. who had hoped for a sizable event-driven In a December statement, RFG said Singapore-based GOLDEN ENERGY AND RESOURCES loan to fund the previous A$1.8bn offer. National Australia Bank and Westpac Banking (Gear) has signed a A$150m facility with In a surprise announcement on Corp had agreed to waive testing of Credit Suisse to fund part of its takeover offer December 20, MYOB said KKR had revised financial covenants for the period ending for Australia’s STANMORE COAL. the offer price to A$3.40 per share from December 31. The next such testing would The three-year loan comprises two A$3.77 before. After initially saying it could be on March 31 2019. facilities: a A$70m piece that will be used not support the marked-down A$1.6bn As recently as August 31, the company for funding the takeover and a A$80m offer, MYOB said on December 24 it would restructured its debt with the two lenders portion for other activities related to in fact back it. that saw its total senior debt facilities Stanmore Coal. “We believe it is in the best interests of reduced to A$285m from A$309m and the One of the conditions of the financing shareholders to put and recommend this maturity brought forward to October 31 is that Indonesia’s Widjaja family, which transaction to shareholders having regard 2019 from January and December 2020. owns an about 87% stake in Gear through to market uncertainty and the longer- Significantly, the operating leverage ratio its associates, must continue to control the term nature of the strategic growth plan,” was raised to 5.0x to December 2018, from company. chairman Justin Milne said. 3.0x. Golden Investments, a 51:49 joint KKR already owns 20% of the target but For the period to March 31 2019, the venture between Gear and Ascend Global would vote in favour of any higher offer ratio will drop to 4.5x and further down to Investment Fund, announced an off-market that MYOB can find, Reuters reported, 4.0x from April 1 2019. takeover bid of A$0.95 per share for citing MYOB. Previously the ratio was 2.5x from Stanmore Coal in November. According to sources, while findings January 1 2019. The interest cover ratio Gear, which owns 19.99% of Stanmore from due diligence were a factor in the was reduced to 3.0x from 4.0x. Other Coal, has agreed to transfer that stake to downward revision of the offer price, other changes included removal of mandatory Golden Investments after the close of the factors also played an important part. The amortisation of A$12.5m by March 2 2019. offer, the deadline for which has been fall in the local share market, including The company had previously won a extended to January 22 from January 3. waiver for testing for the period ending Top lead managers of Australian dollar- Top lead managers of Australian dollar- denominated domestic securitisation, Top lead managers of all Australian securitisation, denominated domestic bonds, inc-Kangaroo bonds, inc-self-funded transactions ex-CDOs inc-self-funded transactions ex-CDOs ex-self-funded transactions, ABS, MBS 1/1/18 – 31/12/18 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Amount Amount Amount Name Issues A$(m) % Name Issues A$(m) % Name Issues A$(m) % 1 NAB 31 9,210.6 33.5 1 NAB 31 9,691.1 32.6 1 ANZ 88 13,956.8 13.9 2 CBA 20 4,444.9 16.2 2 CBA 20 4,640.2 15.6 2 NAB 74 12,097.4 12.1 3 Westpac 21 3,946.5 14.4 3 Westpac 21 4,111.3 13.8 3 CBA 48 11,008.0 11.0 4 ANZ 9 2,628.9 9.6 4 ANZ 9 2,628.9 8.8 4 UBS 33 9,342.7 9.3 5 Macquarie 11 2,003.9 7.3 5 Macquarie 11 2,003.9 6.7 5 Westpac 52 9,166.8 9.2 6 Deutsche 6 1,686.6 6.1 6 Deutsche 6 1,745.8 5.9 6 Deutsche 39 7,295.7 7.3 7 BAML 3 770.0 2.8 7 Citigroup 4 1,195.3 4.0 7 TD Sec 73 7,281.3 7.3 8 HSBC 3 560.5 2.0 8 BAML 4 829.1 2.8 8 Citigroup 24 5,929.0 5.9 9 JP Morgan 1 499.5 1.8 9 HSBC 3 560.5 1.9 9 Nomura 46 4,333.5 4.3 10 Citigroup 3 394.2 1.4 10 JP Morgan 1 499.5 1.7 10 RBC Capital 50 4,289.6 4.3 Total 42 27,501.0 Total 43 29,734.2 Total 304 100,171.1

*Market volume and including Kangaroo bonds *Market volume and including Kangaroo bonds *Market volume and including Kangaroo bonds

Proportional credit Proportional credit Proportional credit Source: Refinitiv data SDC Code: AJ5 Source: Refinitiv data SDC Code: AJ4 Source: Refinitiv data SDC Code: AJ6

22 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

COUNTRY REPORT AUSTRALIA

The total acquisition price, including the in November, refinances a A$917m dual- registered addresses in Australia or New transfer of the 19.99% stake, is A$237m. tranche facility completed in June 2017, Zealand. Gear will fund the first 51% of the according to a company spokeswoman – Sonic plans to refinance the bridge loan acquisition, and Ascend will fund the rest not a A$770m-equivalent deal completed in this year in offshore debt markets, where it using its undrawn capital commitments of February 2014, as reported earlier. raises the bulk of its funds given the natural US$100m from investors. At launch, the new loan comprised a hedge it enjoys because of its offshore Australia’s Foreign Investment and A$300m three-year revolving credit facility operations and its foreign currency earnings. Review Board has cleared the takeover (tranche A), a A$250m four-year revolver The company has no other refinancing offer. (tranche B), a US$275m five-year revolver plans in the next few months. The earliest However, Stanmore Coal’s board (tranche C), a US$100m four-year term loan maturing debt is a US$515m senior bank recommended that shareholders reject the (tranche D) and a US$100m five-year term debt facility due in 2020. offer based on its view that it significantly loan (tranche E). Sonic had net debt of A$2.48bn as of June undervalues the company. It also admitted All the five tranches were 30, according to its 2018 annual report. that Stanmore Coal carries a risk with oversubscribed, but Seek increased only respect to access to funding and insurance, tranches A and E to A$375m and US$200m, › SIGMA OBTAINS A$500M REFI including refinancing existing facilities, as respectively, the spokeswoman said. several financial institutions have publicly The new facility included all the Pharmacy and healthcare provider SIGMA expressed their unwillingness to finance nine banks from the 2017 facility and HEALTHCARE has completed a A$500m three- certain types of coal mines and coal-fired 10 other banks, Seek said. The existing tranche loan to refinance a receivables power stations. banks received the same allocation as the facility from 2017, the company said on Stanmore Coal’s financing arrangements previous ones, and the increased amount December 17, as it ponders a takeover offer include a US$29m bank guarantee and a was distributed among the 10 new banks, from AUSTRALIAN PHARMACEUTICAL INDUSTRIES. US$22m revolving working capital facility sources said. The new borrowing, a bilateral loan maturing on November 15 2019. The interest margins on the latest loan with Westpac Banking Corp, is split into a Gear is mainly engaged in mining are tied to a net leverage grid with the A$115m cash advance tranche maturing thermal coal from its coal mining opening margins at 140bp and 155bp over on November 30 2019, a A$135m overdraft concession areas in Indonesia. BBSY for tranches A and B, respectively, facility due on May 31 2020 and a three- and 165bp, 155bp and 165bp over Libor for year A$250m cash advance tranche with a › NIPPON LIFE JOINS HALLETT REFI tranches C, D and E, respectively. November 30 2021 maturity date. The A$917m June 2017 loan comprised The loan refinances a A$370m one-year Nippon Life Insurance has invested A$44m in a a A$190m 25-month tranche, a A$360m receivables financing comprising a A$170m A$337m refinancing for the Hallett 4 wind 37-month portion and a US$275m 49- overdraft facility and a A$200m revolving farm in South Australia, its first investment month piece paying margins of 190bp and credit facility that matured on November in a wind farm in the country, Nippon Life 205bp over BBSY, and 220bp over Libor, 30. said in a statement on December 28. respectively. Sigma uses a pool of eligible receivables Signing was on December 20, the insurer The banks participating in the latest loan as securities to draw down funds under said. are: HSBC, Sydney branch, National Australia these facilities. The funds will be used for The refinancing comprises a A$159m Bank, ANZ, Westpac Banking Corp, MUFG, infrastructure investment in distribution six-year tranche and a A$178m 12-year Sumitomo Mitsui Banking Corp, Sydney branch, centres and information systems, as well as tranche. The borrower is HALLETT 4 PTY LTD. Bank of China, Sydney branch, Bank of China ongoing working capital requirements. The Nippon Life joined the A$178m portion, (Hong Kong), Royal Bank of Canada, United new loans are all backed by receivables. which was arranged by MUFG. Two other Overseas Bank, Sydney branch, Agricultural The facilities are structured in a way that Japanese insurers – Daido Life Insurance Bank of China, Commonwealth Bank of Australia, will allow the company to repay from an and Dai-ichi Life Insurance – also joined the DBS Bank, Bank of Taiwan, Sydney branch, amount of A$300m it expects to receive tranche. China Merchants Bank, First Commercial Bank, from My Chemist/Chemist Warehouse ANZ, MUFG, Mizuho Bank, National Australia Mega International Commercial Bank, Taiwan Group when a contract with the latter Bank and Westpac Banking Corp were the Business Bank, Sydney branch, Taiwan mandated lead arrangers of the A$159m Cooperative Bank, Sydney branch, and Taipei Top bookrunners of Australia syndicated loans tranche. Fubon Commercial Bank. 1/1/18 – 31/12/18 Hallett 4, owned by Infrastructure Capital Amount Group (39.9%), Osaka Gas (39.9%) and APA › SONIC USES PART OF BRIDGE Name Deals US$(m) % Group (20.2%), operates the 132MW wind 1 ANZ 50 14,713.9 22.1 farm in North Brown Hill. Australia’s SONIC HEALTHCARE will use only 2 NAB 43 10,908.2 16.4 In December, Nippon Life invested a small portion of a A$600m bridge loan 3 CBA 33 6,789.3 10.2 £200m (US$253m) in an about £1.5bn to fund its acquisition of US-based Aurora 4 HSBC 20 4,627.1 6.9 refinancing of the Race Bank offshore wind Diagnostics, a company official said. 5 MUFG 22 4,535.7 6.8 farm in the United Kingdom. Sonic signed the one-year bridge facility 6 Westpac 22 4,159.7 6.2 with JP Morgan prior to signing a binding 7 Mizuho 18 2,993.7 4.5 › SEEK INCREASES REFI TO US$1.025BN agreement to acquire Aurora for US$540m 8 Credit Agricole 7 2,574.2 3.9 in an all-cash deal announced on December 9 SMFG 12 1,828.7 2.7 Australia-listed recruitment firm SEEK has 12. Subsequent to this, the company raised 10 Bank of China 6 1,663.1 2.5 put in place a US$1.025bn-equivalent multi- A$600m from a share placement with Total 127 66,632.7 tranche refinancing that has helped it to existing and new institutional investors, and * Based on market of syndication and market total extend its debt maturities. aims to raise another A$100m from a share Proportional credit The latest loan, launched at US$874m purchase plan to eligible shareholders with Source: Refinitiv data SDC Code: S7

International Financing Review Asia January 5 2019 23 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

ends in June 2019. Earlier this year, Sigma the company’s purchase of two industrial Investment and Cinda International – have announced its supply contract with retail properties at a combined cost of A$54.4m. renounced their entitlements and made chain MC/CW will end after the two parties The REIT will raise debt for the remaining shares available to new investors by selling failed to agree on terms. amount. 67.67m shares in the entitlement offer. Meanwhile, Sigma is evaluating a merger Moelis Australia and UBS are underwriters The institutional tranche, which proposal from health and beauty company for the deal. essentially constitutes the dual primary API. listing in Hong Kong, comprised 59.4m On December 14, API said it had bought › CHARTER HALL SEALS RIGHTS primary shares sold at the bottom of the a 12.95% stake in Sigma, and made an HK$23.48–$25.84 range. The shares were indicative offer to the latter’s board to buy CHARTER HALL LONG WALE REIT has completed a listed on December 6. the remaining stake via a combination of a 1-for-8.1 non-renounceable rights offer to The remaining rights shares, which could share swap and cash. raise A$125m. raise another HK$194m, were offered in the Sigma has offered to engage with API, but The retail component bagged A$44m retail entitlement. has also concurrently hired Accenture for an with a 60% take-up. Eligible retail The company will use the proceeds from analysis of the prospects for its growth and shareholders took up about A$26m, and the Hong Kong listing and the entitlement cost savings on a standalone basis. the remaining shares were allocated to offer to repay debt, raise its stake in the Sigma Healthcare was called Sigma institutions which sub-underwrote the Moolarben coal mining joint venture in Pharmaceuticals until 2017. retail offer. New South Wales to 85% from 81%, and for The REIT launched the rights offer at an working capital. issue price of A$4.05 a share, representing EQUITY CAPITAL MARKETS a 4.5% discount to the pre-deal close of A$4.24. The institutional portion earlier › CENTURIA INDUSTRIAL SEALS OFFER raised A$81m. Proceeds will help finance the acquisition CHINA CENTURIA INDUSTRIAL REIT has completed a 1-for- of 27 agri-logistics properties for a total cost 13.5 rights offer to raise a total of A$51m of A$207m. The REIT will raise debt for the (US$38m). remaining amount. DEBT CAPITAL MARKETS The retail portion bagged about UBS was the underwriter of the deal. A$21m. Eligible retail unitholders took up › CHANGDE URBAN GETS TWO-YEAR FUNDS approximately A$7m for a 35% participation › YANCOAL SEALS RETAIL RIGHTS OFFER rate. The remaining A$14m will be Chinese local government financing vehicle allocated to a number of institutional YANCOAL AUSTRALIA, which is listed in Australia CHANGDE URBAN CONSTRUCTION AND INVESTMENT investors who sub-underwrote the retail and Hong Kong, has raised HK$13.2m from GROUP on December 20 priced US$100m two- entitlement offer. a 0.05387-for-1 non-underwritten retail year senior unsecured bonds at par to yield About A$30m was raised earlier through entitlement offer, following the completion 7.20%, unchanged from price guidance. the offer of 11m units in the institutional of its HK$1.4bn (US$178m) HKEX listing The Reg S issue has an expected BB+ portion, which had a 69% take-up. The earlier this month. rating from Fitch, in line with the issuer. shortfall was placed with existing and new About 7.7m shares could not be cleared Proceeds will be used for debt unitholders. at the offer price of HK$23.48, so no retail refinancing and general corporate The REIT launched the non-renounceable entitlements were sold in the shortfall purposes. rights offer at an issue price of A$2.77 per bookbuild, according to a company Guotai Junan International, Bank of China unit, representing a 3.1% discount to the statement. and Industrial Bank Hong Kong branch were pre-deal close of A$2.86. Three major shareholders with a joint global coordinators as well as joint Proceeds from the rights issue will fund combined 87.8% stake in the coal miner lead managers and joint bookrunners with – Yanzhou Coal Mining, China Shandong Mizuho Securities and CCB International. China Top bookrunners of Australian equity and Citic Bank is a lead manager in relation to convertible offerings Top bookrunners of Australian equity PRC matters. 1/1/18 – 31/12/18 1/1/18 – 31/12/18 The state-owned issuer, based in Changde Amount Amount in Hunan province, has businesses in Name Issues US$(m) % Name Issues US$(m) % infrastructure construction, real estate 1 UBS 30 9,801.6 26.5 1 UBS 30 9,801.6 27.1 development, landscaping and property 2 Macquarie 19 5,226.2 14.1 2 Macquarie 19 5,226.2 14.4 management. 3 Morgan Stanley 9 3,754.5 10.2 3 Morgan Stanley 9 3,754.5 10.4 4 Citigroup 15 2,061.3 5.6 4 Citigroup 15 2,061.3 5.7 › CIFI DRAWS ORDERS OF OVER US$1BN 5 JP Morgan 9 1,657.4 4.5 5 JP Morgan 9 1,657.4 4.6 6 Goldman Sachs 10 1,656.5 4.5 6 Goldman Sachs 9 1,473.8 4.1 Chinese property developer CIFI HOLDINGS 7 Deutsche 4 1,611.0 4.4 7 Bell Financial 62 1,273.4 3.5 (GROUP), rated Ba3/BB–/BB, on December 8 Bell Financial 62 1,273.4 3.4 8 Deutsche 3 1,261.0 3.5 17 priced US$400m senior notes after 9 Morgans Financial 39 976.0 2.6 9 Morgans Financial 39 976.0 2.7 drawing over US$1bn in final orders from 10 BAML 1 883.3 2.4 10 BAML 1 883.3 2.4 86 accounts. Total 691 37,002.1 Total 678 36,189.9 The two-year two-month US dollar senior *Market volume *Market volume notes were priced at 99.97 to yield 7.625%, “Standard Exclusion not applicable” “Standard Exclusion not applicable” well inside initial 7.875% area guidance. Proportional credit Proportional credit The Reg S notes have an expected BB Source: Refinitiv data SDC Code: AK1 Source: Refinitiv data SDC Code: AK2 rating from Fitch.

24 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

COUNTRY REPORT CHINA

Guangzhou R&F, Aoyuan kick off 2019

„ Bonds Two Chinese property issuers get ahead of January rush

GUANGZHOU R&F PROPERTIES, rated Ba3/B+/ Orders reached about US$1bn from 80 CHINA AOYUAN BB–, on Thursday became the first Asia ex- accounts. Asia took 97% and EMEA the rest. Guangzhou R&F’s new issue came on the Japan issuer to sell new offshore bonds this Fund managers were allocated half the same day as a US$275m tap of CHINA AOYUAN year, raising US$500m on a day with little to notes, corporates and ultra high-net-worth GROUP’s (B1/B+/BB–) 7.95% 2021s, increasing compete against. individuals 43%, and private banks 7%. the total size to US$500m. The two-year bond priced at 99.775 to The bonds were trading slightly above The reopening price was set at par to a yield 8.875%, inside initial guidance of 9% reoffer in the aftermarket. yield-to-put of 7.939%, revised from initial area and in line with final guidance. The new issue premium was seen at guidance of a cash price of 99.875 or a YTP A lead manager said the issuer wanted to around 25bp to three-eights of a point, based of 8.021% area. move quickly to avoid expected heavy supply on Guangzhou R&F’s 7.0% April 2021s, The three-year non-call non-put two bonds later in January. Equity markets were volatile which were spotted at 8.7% at the time of are puttable at par on or after September 7 on the day of marketing, but credit mostly marketing, said the banker. Those notes were 2020. The issuer has the option to call the held its ground, he said. now trading wider at a 9% bid. bonds on or after that date at 102. The deal is the largest of a recent round The Reg S notes will be issued by Easy The bonds have expected ratings of B2/B/ of similar two-year bonds in the Asian credit Tactic Limited and guaranteed by R&F BB–. markets. Macrolink Global Development, Properties (HK) Company and certain non- AMTD, Bank of America Merrill Lynch, Changde Urban Construction and Redsun PRC subsidiaries of the company. Guangzhou Guotai Junan International, Haitong Properties all issued two-year notes in R&F is the keepwell and EIPU provider. International, JP Morgan, OCBC Bank, Silk December. The 8.75% notes have expected ratings of Road International and UBS (B&D) were The banker said investor appetite for short- BB– by Fitch. Proceeds will be mainly used joint bookrunners and joint lead managers. dated paper dictated the choice of tenor. for offshore refinancing. Deutsche Bank was added to that list after “It works because the issuer wants to Goldman Sachs (B&D), CLSA and Credit initial guidance was announced. minimise new issue concessions, and it’s Suisse were joint global coordinators, The original Reg S bonds were priced at short enough to persuade investors to buy and also joint bookrunners and joint lead par in August, 30bp tighter than initial 8.25% them during volatile times,” he said. “But it’s managers with Orient Securities (Hong Kong), area guidance, after receiving a US$1.8bn long enough that the coupons are larger than China International Capital Corporation and order book from over 100 accounts. 364-day notes.” CEB International. FRANCES YOON

Of the notes, 97% went to Asia and 3% to 20 points on December 17 in reaction to for financing. KDX’s largest shareholder, Europe. By investor type, a combined 66% a report, denied by the Shenzhen-listed Kangde Investment Group, had pledged went to hedge funds, asset managers and Chinese optical and pre-coated laminating around 93% of its KDX shares as of fund managers, 16% to private banks, 15% film manufacturer, that it had defaulted on November 5, according to Moody’s. to banks, and 3% to others. an onshore loan. The negative outlook on KDX’s rating Proceeds will be used for debt refinancing “The downgrade reflects our concern reflects Moody’s expectation that the and/or general corporate purposes. that the deteriorating liquidity profile weakening operating environment and Standard Chartered Bank, CEB International, of KDX’s largest shareholder and the shareholder drag could together affect Credit Suisse, Deutsche Bank, Goldman continued elevated share pledge ratio by KDX’s funding access and weaken the Sachs, Guotai Junan International, Haitong the same shareholder increases the risks of company’s financial profile. International, HSBC and JP Morgan were joint refinancing and change of control at KDX,” Kangde Xin’s 2020s slumped 21 points global coordinators, joint lead managers said Gloria Tsuen, a Moody’s vice president to close at a bid price of 56 on December and joint bookrunners. and senior credit officer. 17, against 77 on December 14, according Both rating agencies said repeated to Tradeweb. The bonds were quoted at › DOUBLE DOWNGRADE FOR KANGDE XIN disclosure issues raised by regulators relating 55.25 on December 18. The Reg S bonds to the largest shareholder also reflect were issued by Top Wise Excellence Fitch and Moody’s have cut KANGDE XIN potential inadequacies in the company’s Enterprise and guaranteed by KDX in COMPOSITE MATERIAL GROUP’s credit rating and corporate governance that may hurt KDX’s March 2017. those of its bonds in light of the company’s ability to maintain funding access. According to a report from a private liquidity problems and declining stock “As the operating environment becomes market intelligence service cited by some price. more challenging, a weakening in KDX’s brokerages on December 17, KDX failed to Fitch downgraded the corporate and ability to refinance will further reduce its repay in full a loan due to Citic Bank and bond ratings to B+ from BB on December net cash position, increase liquidity risks still has a Rmb200m (US$29m) balance 21, with negative outlook. On December and may impact its business operations,” more than a month overdue. 18, Moody’s downgraded the ratings of said Tsuen. KDX denied the report via the Shenzhen the company and its US$300m 6.00% Fitch said KDX’s access to equity markets Stock Exchange’s investor relations service, senior bonds due 2020 to B3 from B1, with has worsened after its share price fell saying it has already repaid the loan and negative outlook. more than 60% in the past 12 months and maintains a normal business relationship The dollar bonds plunged more than would likely increase its reliance on debt with Citic Bank.

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› GOLDEN WHEEL BUYS BACK BONDS › JIANGSU ZHONGGUANCUN CLARIFIES Proceeds from the notes issued last month were mainly used to refinance part of the GOLDEN WHEEL TIANDI HOLDINGS repurchased Chinese local government financing vehicle 5.70% 2019s as some investors put the notes. some of its US$300m 8.25% bonds due 2019 JIANGSU ZHONGGUANCUN SCIENCE PARK HOLDING Pan said the company intends to apply in November and December, according to a GROUP said on December 18 that it was not for an offshore debt issuance quota from stock exchange filing on December 20. aware of any reason for a slump in the US the National Development and Reform The Hong Kong-listed Chinese real dollar-denominated short-term notes it Commission in 2019 to refinance its estate company bought a total of US$12m issued in November 2018. offshore debt. of the bonds using internal resources, “Our operations are normal and we do representing 4% of the original principal not have any difficulties in meeting our › JIAOZHOU BAY TAPS NOTES amount. debt obligations. We don’t know why the All the purchased notes were cancelled bonds’ price has slumped,” said Pan Zhiyi, Local government financing vehicle QINGDAO on December 19. deputy head of the state-owned group’s JIAOZHOU BAY DEVELOPMENT on December 20 finance department. reopened its 6.5% senior unsecured bonds › GOME REPURCHASES BONDS The 363-day US$140m 7.50% notes due due June 14 2021 for a tap of US$80m, November 26 2019, which were issued via bringing the total outstanding to US$200m. GOME RETAIL HOLDINGS made US$4m on-market private placement, were quoted at a mid- The additional bonds were sold at 98.441 repurchases of its US$500m 5.00% US dollar price of more than 99 before December to yield 7.20%, unchanged from price bonds due 2020 during December, it said in 11 but started sliding the next day. They guidance. a stock exchange filing on December 18. fell to 83 on December 13 and 79.8 on Proceeds from the reopening will be used The repurchased bonds will be December 14, before stabilising in the week for investment in projects in China. cancelled and will cut the company’s total of December 17. A more recent quote was Zhongtai International and Industrial outstanding 2020 bonds to US$496m. not available. Bank Hong Kong branch were joint global The Chinese electrical appliance and The notes were issued by offshore coordinators, joint lead managers and joint consumer electronic retailer said it may subsidiary Jiangsu Zhongguancun Holding bookrunners on the Reg S unrated issue. make further repurchases of its bonds Group (International) with a guarantee The original notes were priced at 98.931 depending on market conditions. from the state-owned parent. to yield 6.90% on June 11. A banker close to the private deal was The issuer is controlled by the Jiaozhou › GREENTOWN CHINA ISSUES PERP puzzled by the price action. “The bonds are Economic and Technology Development held by a few onshore banks, which are Zone Management Committee in Shandong GREENTOWN CHINA HOLDINGS issued US$500m in buy-and-hold investors. I’m surprised about province. It has businesses in infrastructure senior perpetual securities on December the sudden price markdown. No bonds construction, agency construction, and 21 at par to yield 10% via Credit Suisse and were actually traded.” property leasing and management. HSBC. The group is under the control and The Reg S notes are callable in 2021. supervision of the Changzhou and Liyang › MACROLINK SEALS DEAL FOR US$168M Moody’s expects ratings of Ba3 on the notes. municipal government. It has businesses The notes will be guaranteed by the in affordable housing, infrastructure MACROLINK HOLDING has priced a US$168m company and will have the benefit of construction, primary land and facilities in two-year bond at par to yield 9.5%, little a keepwell deed and a deed of equity the Jiangsu Zhongguancun Science Park. changed from the final price guidance interest purchase undertaking by China Pan said the group has ready funds to pay announced on December 27. Communications Construction Group, accounts payable, banks loans and interest Macrolink Global Development is the which is a PRC state-owned enterprise. due before the Lunar New Year. issuer of the unrated Reg S bonds. CCCG is the single largest shareholder of The group first tapped the offshore Proceeds will be used for general Greentown, with 29% of the share capital. market in 2016 with US$220m 5.70% three- corporate purposes. Greentown is CCCG’s sole overseas listed year non-call non-put two notes due 2019. CCB International, CMBC Capital, HSBC real estate company. The notes would step up by 500bp in a Top bookrunners of all renminbi bonds, Top bookrunners of Dim Sum bonds change of control event. ex-self-funded transactions (Rmb issued and settled offshore bonds) The notes will be issued by Twinkle 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Lights Holdings, a wholly owned subsidiary Amount Amount of Greentown. Name Issues Rmb(m) % Name Issues Rmb(m) % Greentown intends to use the net 1 Bank of China 662 654,842.0 8.7 1 HSBC 86 27,436.5 28.4 proceeds for refinancing existing debt 2 Citic Sec 620 575,695.4 7.7 2 Standard Chartered 54 22,080.2 22.9 at Greentown Group. The company 3 ICBC 619 536,235.1 7.2 3 Credit Agricole 48 12,971.6 13.4 announced on December 24 that it will be 4 CCB 638 473,263.3 6.3 4 BNP Paribas 12 3,128.5 3.2 redeeming a US$500m subordinated perp 5 ABC 509 460,714.1 6.2 5 Societe Generale 4 3,050.0 3.2 that is callable in 2019. 6 BoCom 515 385,448.3 5.1 6 Bank of China 7 2,681.5 2.8 CHINA COMMUNICATIONS CONSTRUCTION COMPANY 7 CSC Financial 430 345,355.9 4.6 7 Citic Sec 4 1,903.3 2.0 said its board has agreed to subscribe to 8 Industrial Bank 407 271,186.2 3.6 8 DBS 4 1,865.8 1.9 Greentown’s planned private placement of 9 CMB 353 258,921.0 3.5 9 Citigroup 6 1,301.8 1.4 US$500m senior perpetual bonds, according 10 China Merchants Sec 187 202,994.6 2.7 10 KGI Financial 2 1,192.5 1.2 to a stock exchange statement filed on Total 3,828 7,492,587.2 Total 222 96,503.2 December 20. *Market volume *Market volume State-owned CCCG holds a 59.9% stake in Proportional credit Proportional credit CCCC. Source: Refinitiv data SDC Code: AS24 Source: Refinitiv data SDC Code: AS24a

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COUNTRY REPORT CHINA

(B&D), ICBC International, Bank of China, Silk Admiralty Harbour, Orient Securities (Hong (HK), ICBC International, Road International and Industrial Bank Hong Kong) and CNCB HK Capital were joint global CMBC Capital, Hong Kong branch were joint global coordinators, coordinators, joint lead managers and joint Kong branch, Bank of Communications, Silk joint bookrunners and joint lead managers. bookrunners. Road International and Industrial Bank Hong The China-based group has businesses Ronshine also announced that it had Kong branch were joint global coordinators in cultural tourism, chemical engineering, repurchased US$229.7m of its 6.95% 2019 and bookrunners. Bank of China, CCB petroleum, investment and mining. senior bonds at par from December 8-20 International, CNCB HK Capital and Guotai after holders exercised the put option. Junan International were also bookrunners. › MODERN LAND GOES GREEN Shaoxing City Investment Group is › SHAANXI XIXIAN NEW AREA LGFV PRINTS 100%-owned by the Shaoxing State-owned MODERN LAND (CHINA), rated B2/B+ (Moody’s/ Assets Supervision and Administration Fitch), on December 20 priced US$150m SHAANXI XIXIAN NEW AREA FENGXI NEW CITY Commission of the State Council. It builds 1.5-year Green senior bonds at par to yield DEVELOPMENT AND CONSTRUCTION (GROUP) has infrastructure projects and markets fuel gas 15.50%, in line with price guidance. raised US$100m from an offering of senior and nonferrous metals. The city is located The Reg S issue has an expected B3 rating unsecured bonds for working capital and in Zhejiang province. from Moody’s. general corporate purposes. The Hong Kong-listed Chinese real estate The Chinese local government financing › WUHAN FINANCIAL PRINTS DOLLARS company intends to use the proceeds from vehicle on December 20 priced the 7.50% the proposed issue to refinance debt. three-year Reg S unrated bonds at 99.211 to WUHAN FINANCIAL HOLDINGS (GROUP) on December Guotai Junan International, HSBC, UBS, yield 7.80%, unchanged from price guidance. 17 priced US$142m three-year senior Morgan Stanley, Deutsche Bank, Southwest DBS Bank, CMBC Capital, CEB International unsecured bonds at par to yield 5.8%, in line Securities International and Haitong and Central Wealth Securities Investment were with final guidance. International were joint global coordinators, joint global coordinators. Proceeds from the unrated Reg S issue joint bookrunners and joint lead managers. The issuer is the primary development, will be used to repay debt and for project HSBC was the sole green structuring construction and operation arm of the investments. adviser. Fengxi New City Management Committee. CICC and Standard Chartered were joint Fengxi New City is one of five regions global coordinators. They were also joint › REDSUN SELLS ADDITIONAL BONDS in Xixian New Area, located between Xi’an bookrunners with China Minsheng Banking and Xianyang in Shaanxi province. Corp Hong Kong branch, Haitong International, REDSUN PROPERTIES GROUP, rated B/B (S&P/ As at end-June 2018, the Fengxi New City Industrial Bank Hong Kong branch, Ping An Fitch), reopened its 13.50% senior notes due Management Committee and the Xixian of China Securities (Hong Kong) and Shanghai 2020 on December 17 for a US$200m tap, Area Development Group, a wholly owned Pudong Development Bank Hong Kong branch. bringing the total outstanding to US$380m. subsidiary of the Xixian Management The company is tasked with establishing The Hong Kong-listed Chinese real estate Committee, held approximately 49% and a regional financial centre in Wuhan. company sold the additional bonds at par, 51% stakes in the issuer, respectively. It is under the direct supervision of the in line with guidance. Wuhan State-owned Assets Supervision and Proceeds from the tap will be used for › SHANGYU URBAN RAISES DOLLARS Administration Commission. debt refinancing and general corporate purposes. SHANGYU URBAN CONSTRUCTION HONG KONG on › YANGO PRINTS PRIVATE DEAL The original notes were priced on December 20 issued a US$240m three-year November 27 at par. Investors can put the two- bond with a coupon of 6.7%. Property developer YANGO GROUP on year non-put one notes at 101.56 on December Initial guidance was announced at high December 18 priced a US$120m 1.5-year 3 2019 with a yield to put of 15.004%. 6% area on December 14. bond offering at par to yield 12%. The Reg S notes, rated B by Fitch, are due Guosen Securities (HK), Industrial Securities Yango Justice International is issuer and on December 3 2020. Hong Kong branch, CMBC Securities and Silk parent company Yango Group is guarantor. China International Capital Corp, Guotai Road International were bookrunners. The bonds have an expected B3 rating from Junan International and Haitong International The unrated company is a state-owned Moody’s, one notch below the guarantor. were the joint global coordinators, joint provider of infrastructure construction The bonds were understood to have been lead managers and joint bookrunners on services. sold in a private placement led by China the reopening. Merchants Securities Hong Kong and Guotai Junan › SHAOXING CITY TAPS DOLLARS International. Settlement was on January 2 › RONSHINE CHINA SELLS BONDS and the bonds mature on July 2 2020. SHAOXING CITY INVESTMENT GROUP on December Shenzhen-listed Yango Group is a Property developer RONSHINE CHINA HOLDINGS, 19 reopened its US$350m 5.875% senior Chinese property developer focused on the rated B2/B/B+, on December 19 priced unsecured bonds due December 18 2021 Greater Fujian, Yangtze River Delta, and US$200m 11.50% 1.5-year senior notes at for a further US$150m at a reoffer price Pearl River Delta regions. 98.177 to yield 12.875%. Initial guidance of 99.795 to yield 5.95%, in line with final was high 12% area. guidance. › YUYAO PRINTS SMALL DEAL The Reg S issue has an expected rating of The Reg S tap was capped at US$150m. B+ from Fitch. The bonds, like the issuer, are rated YUYAO ECONOMIC DEVELOPMENT ZONE CONSTRUCTION The Hong Kong-listed company intends BBB+ by Fitch. The original issue priced on INVESTMENT AND DEVELOPMENT on December 14 to use the proceeds to refinance debt. December 11 at 99.797 to yield 5.95%. priced US$100m three-year US dollar senior Guotai Junan International, HSBC, CMB Proceeds will be used to refinance unsecured notes at par to yield 7.00%, International, BoCom International, Haitong offshore debt and for business unchanged from price guidance. International, China Citic Bank International, development. The issuer engages in land development

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and property construction, mainly within Panda bonds in 2018 after the UAE emirate Enterprises Holdings, which distributes the Yuyao Economic Development Zone of Sharjah in February and the Philippines natural gas, supplies water, provides in Yuyao city in China’s coastal Zhejiang in March. wastewater treatment services and brews province. The sovereign is rated AAA by China beer in China. Its parent, Yuyao Shuncai Investment Lianhe and Baa3/BBB–/BBB– by global rating Holdings, wholly owned by the Yuyao agencies. › COUNTRY GARDEN SIGNS LOAN municipal government, will provide a The proceeds will be used to finance guarantee for the unrated Reg S issue. maturing foreign currency debt and for the Hong Kong-listed property developer COUNTRY Proceeds will be used for refinancing and issuer’s general budgetary purposes, which GARDEN HOLDINGS signed a dual-tranche loan at onshore project development. might include supporting certain Belt and US$931m-equivalent on December 28. Haitong Bank, Guotai Junan International Road projects. The facility, launched at US$1bn- and Zhongtai International were joint global Bank of China was joint lead underwriter equivalent in October, now has currency coordinators, joint lead managers and joint and lead bookrunner on the offering, with splits of HK$3.47bn and US$486.216m, bookrunners. HSBC (China) as joint lead underwriter and according to a stock exchange filing. Greater Bay Securities was a joint lead joint bookrunner. The two-year tranche has a size of around manager on the transaction, while Bank of The deal was 1.725 times covered and US$831m-equivalent, while the three-year Ningbo was a joint lead manager in relation attracted Rmb390m orders from offshore portion totals US$100m. to PRC matters. investors, according to a press release The coordinators and mandated lead posted on BOC’s website. arrangers and bookrunners are HSBC and › BEIJING CAPITAL LAND SEEKS APPROVAL Hungary registered a Rmb3bn Panda Industrial & Commercial Bank of China (Asia). bond programme with the National HSBC held HK$1.15bn, while ICBC lent BEIJING CAPITAL LAND is seeking shareholder Association of Financial Market US$300m-equivalent in total through two approval to issue up to Rmb10bn of Institutional Investors in June 2017. The entities. ICBC (Asia) is the facility agent. onshore corporate bonds for debt country made its debut in the Panda bond The banks that joined as MLABs are: refinancing, according to a stock exchange market in 2017 with an offering of Rmb1bn Hang Seng Bank (HK$1.15bn), China Minsheng filing on December 19. three-year notes at 4.85%. Banking Corp (about US$93m), JP Morgan The bonds, to be listed on the Shanghai (about US$93m) and China Merchants Bank Stock Exchange, will have a maturity of › XINJIANG GOLDWIND PLANS NEW ISSUE (US$100m). China Everbright Bank joined as up to seven years, the Hong Kong-listed lead arranger with US$50m. Chinese property developer said. XINJIANG GOLDWIND SCIENCE & TECHNOLOGY is Ownership covenants require Yang Huiyan seeking shareholder approval to issue up to and Yeung Kwok Keung to together remain › BOCGI ISSUES PANDA BOND Rmb5bn of debt financing and asset-backed the largest shareholders of Country Garden securities onshore or offshore, according to with a minimum combined stake of 40% Hong Kong-incorporated BANK OF CHINA a stock exchange filing on December 20. and to maintain management control, and GROUP INVESTMENT has raised Rmb2bn from The Hong Kong and Shenzhen-listed wind- either Yang or Yeung to be the chairperson of an offering of Panda bonds in China’s turbine maker plans to use proceeds from Country Garden’s board of directors. interbank bond market. the proposed offering for daily operations, The facility has interest margins of 265bp The three-year notes were priced at including working capital, investments in and 295bp over Libor/Hibor for the two par to yield 4.13%, within the indicative and the operation of wind farm projects and and three-year portions and offered top- range of 3.9%–4.5%, according to a filing on the repayment of bank loans. level all-in pricing of 350bp and 380bp for Chinamoney.com on December 21. average lives of 1.95 years and 2.7 years for The issuer and the notes are rated AAA the respective tranches. by both China Chengxin and China Lianhe. SYNDICATED LOANS Some of the company’s subsidiaries BOCGI, the wholly owned investment are providing guarantees. Funds are arm of Bank of China, intends to use the › BEIJING ENTERPRISES BVI CLOSES REFI for refinancing and general corporate proceeds to repay onshore loans. purposes. Bank of China was sole lead underwriter BEIJING ENTERPRISES GROUP (BVI) has closed its Country Garden is rated Ba2/BB+/BBB–. and bookrunner on the issue. HK$4.5bn (US$577m) five-year term loan BOCGI has regulatory approval to issue with two banks joining the facility. › ZIJIN SIGNS LOAN FOR NEVSUN BUYOUT Rmb8bn of Panda bonds in the interbank Mandated lead arrangers and market. It issued Rmb1.5bn three-year Panda bookrunners Agricultural Bank of China, ANZ, China’s ZIJIN MINING GROUP has closed a bonds at par to yield 4.40% in June 2017. Bank of China, Bank of Communications, DBS five-year term loan backing its C$1.84bn Bank, Hang Seng Bank, Mizuho Bank and (US$1.35bn) acquisition of Canadian miner › HUNGARY PRINTS SECOND PANDA BONDS held HK$522.5m each, while Bank of Taiwan Nevsun Resources. and Land Bank of Taiwan joined as arrangers The amortising term loan was The REPUBLIC OF HUNGARY has raised Rmb2bn with HK$200m and HK$120m, respectively. oversubscribed, but was signed at US$840m from its second Panda bond offering in The MLABs, which signed the deal on – slightly less than the target deal size of China’s interbank market. November 12, have also pre-funded it. US$870m – as the borrower is said to have The three-year notes were priced at par BoCHK is the facility agent. wanted a smaller amount. to yield 4.30%, within an indicative range of The interest margin is 113bp over Hibor Mandated lead arranger, bookrunner 3.90%–4.50%, on December 17. and the top-level all-in pricing is 120bp. and facility agent China Construction Bank The notes, rated AAA by China Lianhe, Funds will refinance a HK$6bn five-year brought in 10 banks. Bank of China, China were also made available to offshore loan signed in November 2013. Citic Bank and ICBC Asia joined as MLAs, institutional investors via Bond Connect. The borrower, rated Baa1 (Moody’s), while Agricultural Bank of China, China Hungary was the third sovereign issuer of holds about 62% of Hong Kong-listed Beijing Development Bank, China Everbright Bank, China

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COUNTRY REPORT CHINA

Minsheng Banking Corp, Credit Agricole CIB, A Hong Kong bank presentation and a and the top-level all-in pricing is 215bp. Export-Import Bank of China and Postal Savings conference call will take place on January 9. Jiangsu Shagang Group makes steel Bank of China joined as lead arrangers. Commitments are due by February 15. plates and wires, hot and cold rolled coils The borrower is GOLD MOUNTAINS (HK) China Aircraft Leasing is providing a and ribbed steel bars. INTERNATIONAL MINING, and the guarantor is guarantee and its wholly owned subsidiary For full allocations, see www.ifrasia.com. Zijin. Signing was on December 14. CALC PDP 5 is the borrower. There is a one-year extension option. Funds are for on-lending to wholly › MOLYBDENUM SEEKS US$220M REFI Zijin has cleared all the regulatory owned units of China Aircraft Leasing to hurdles to proceed with the all-cash offer. fund pre-delivery payments for buying Hong Kong and Shanghai-listed CHINA Nevsun’s shareholders had until December aircraft, which must not be pledged as MOLYBDENUM has launched a US$220m three- 28 to tender their shares to Zijin, according security for any debt. year bullet term loan for refinancing. to a statement on the company’s website. In October 2017, China Aircraft Leasing The company is the guarantor, while If the takeover proceeds successfully, raised a US$425m 4.5-year pre-delivery its wholly owned Australia-incorporated Zijin will acquire the Timok copper-gold payment financing. China Everbright Hong subsidiary CMOC MINING is the borrower. mine in Serbia. Nevsun has exploration Kong branch and ICBC Asia were the MLABs ANZ, Bank of China, Citigroup and Westpac activities in Serbia and Macedonia. and underwriters and brought in 11 banks, Banking Corp are the mandated lead arrangers Hong Kong and Shanghai-listed Zijin, increasing the amount from the launch size and bookrunners of the deal, which pays an rated Baa3/BBB–/BBB–, is headquartered in of US$175m. China Aircraft Leasing was interest margin of 180bp over Libor. China’s Fujian province and mines gold, guarantor, while CALC PDP 3 was the borrower. Banks have been invited to join at one copper, zinc and other mineral resources. Compared to the latest revolver, the 2017 level with tickets of US$15m or more for an facility pays richer pricing with a margin all-in pricing of 190bp based on a 30bp fee. › CHINA AIRCRAFT LEASING SEALS PDP of 265bp over Libor and a top-level all-in Syndication was launched late November pricing of 284bp. and commitments are due by January 11. Hong Kong-listed CHINA AIRCRAFT LEASING State-owned China Everbright Group The borrower holds 80% of the GROUP HOLDINGS launched on December 19 holds a stake of about 34% in China Aircraft Northparkes copper and gold mine in New an unsecured US$500m five-year revolving Leasing, which owns and manages a fleet of South Wales. The remainder is owned by credit facility. 115 aircraft. units of Sumitomo Group. Bank of Communications Hong Kong branch, According to LPC data, CMOC Mining China Everbright Bank Hong Kong branch, Chiyu › SHAGANG INCREASES REFI TO US$260M obtained a US$259.5m five-year revolving Banking Corp, Chong Hing Bank, Industrial credit facility in November 2013 for & Commercial Bank of China (Asia) and Steel producer JIANGSU SHAGANG GROUP has acquiring the 80% stake in the Northparkes Nanyang Commercial Bank are the mandated increased its three-year bullet term loan to mine. That acquisition cost US$820m and lead arrangers and bookrunners of the US$260m from US$180m. was completed in December 2013. For the pre-delivery payment financing. China Original mandated lead arranger and revolver, MLAB China Development Bank Everbright is the facility agent. bookrunner Standard Chartered (Hong Kong) Shanghai branch provided US$239.5m, The interest margin is 240bp over Libor. has brought in seven banks, including China while lender and facility agent Bank of Banks have been invited to join as lead Citic Bank, First Abu Dhabi Bank and Industrial China Sydney branch provided US$20m. arrangers with commitments of US$70m or & Commercial Bank of China (Asia), as MLABs. Separately, in November 2016, China more for a top-level all-in pricing of 255bp Signing was on December 26. Molybdenum raised a US$1.59bn seven-year based on an upfront fee of 75bp, as co-lead The borrower is SHAGANG SOUTH-ASIA (HONG loan with four banks to back its US$2.65bn arrangers with tickets of US$50m–$69m KONG) TRADING, a wholly owned subsidiary of acquisition of a 56% stake in the Tenke for an all-in of 253.5bp through a 67.5bp Jiangsu Shagang, while the parent company Fungurume copper and cobalt mine project fee, as arrangers with US$35m–$49m for is the guarantor. in the Democratic Republic of Congo from an all-in of 252bp via a 60bp fee and as lead The interest margin is 190bp over Libor Freeport-McMoran. The purchase was managers with US$20m–$34m for an all-in completed in the same month. BOCHK was of 250.5bp via a 52.5bp fee. Top bookrunners of China equity and the sole MLAB of the facility and brought in convertible offerings China Citic Bank, China Minsheng Banking Top bookrunners of China syndicated loans 1/1/18 – 31/12/18 Corp and China Development Bank. 1/1/18 – 31/12/18 Amount China Molybdenum then signed a Amount Name Issues US$(m) % US$700m seven-year loan with China Name Deals US$(m) % 1 Goldman Sachs 49 10,871.3 8.4 Construction Bank Henan branch and 1 Bank of China 203 61,223.7 66.2 2 CICC 37 9,798.8 7.6 China Merchants Bank in March 2017 to 2 Citic Sec 6 7,343.8 7.9 3 Morgan Stanley 39 8,686.4 6.7 buy an additional and indirect stake of 24% 3 CDB 4 6,686.4 7.2 4 Citic Sec 43 7,486.3 5.8 of the Tenke mine for about US$1.14bn. 4 ABC 6 5,074.0 5.5 5 Huatai Sec 29 6,157.1 4.8 China Molybdenum produces 5 CCB 5 2,541.9 2.8 6 BAML 13 6,097.6 4.7 molybdenum, tungsten, cobalt, niobium, 6 ICBC 4 1,831.9 2.0 7 China Sec 37 5,894.1 4.6 copper ore and phosphates. 7 HSBC 11 746.4 0.8 8 Citigroup 33 5,752.9 4.4 8 DBS 11 693.6 0.8 9 JP Morgan 28 4,392.4 3.4 › ZHENGTONG'S LOAN ATTRACTS FIVE 9 SMFG 11 594.9 0.6 10 Guotai Junan Sec 32 4,319.8 3.3 10 Natixis 1 485.0 0.5 Total 481 129,605.1 Car dealership CHINA ZHENGTONG AUTO SERVICES Total 278 92,439.2 *Market volume HOLDINGS has increased its three-year * Based on market of syndication and market total “Standard Exclusion not applicable” amortising term loan to US$150m after Proportional credit Proportional credit it exercised the deal’s US$50m greenshoe Source: Refinitiv data SDC Code: S8b Source: Refinitiv data SDC Code: C1m option.

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Cinda International Asset Management is 122bp. OMLABs and underwriters Industrial EQUITY CAPITAL MARKETS the lead adviser, while Taiwan Cooperative & Commercial Bank of China Singapore Bank is the mandated lead arranger and branch and Agricultural Bank of China › MAOYAN PRE-MARKETS HK IPO bookrunner of the transaction. Hong Kong branch closed syndication with China Everbright Bank Hong Kong branch, four joining banks, including Bank of China Tencent-backed MAOYAN ENTERTAINMENT, CMB Wing Lung Bank and United Overseas Bank Singapore branch, which shared the MLAB China’s biggest online seller of film tickets, joined as mandated lead arrangers, while title. has started pre-marketing a Hong Kong IPO Bank of East Asia OBU and Bank of Shanghai CMB International Leasing Management of about US$300m, according to people Hong Kong joined as lead arrangers. is rated BBB+ (S&P). close to the deal. Signing was on November 30, the The company was looking to raise company said in a stock exchange filing on US$800m–$1bn from the float at the December 28. RESTRUCTURING beginning of 2018, IFR reported earlier, but An ownership covenant requires Wang the people said the issuer is now looking to Muqing, his close relatives and their trusts to › REWARD'S WOES CONTINUE sell fewer shares at a lower valuation. own at least 50% of ZhengTong throughout Bank of America Merrill Lynch and Morgan the term of the loan. A family trust of Wang REWARD SCIENCE AND TECHNOLOGY INDUSTRY GROUP Stanley are joint sponsors for the deal. holds about 56% of the borrower. failed to deliver on its promise to repay by Maoyan operates the popular movie- The deal has an interest margin of 315bp December 20 the principal of maturing ticketing apps Maoyan and Gewara and also over Libor and offered a top-level all-in onshore commercial paper it defaulted on distributes films. pricing of 358.56bp for an average life of earlier, according to a filing late on December According to the filing, the company 2.525 years. 20 to the Shanghai Clearing House. posted a loss of Rmb231m (US$34m) for the Funds were for working capital for the The Chinese dairy producer said it now first half of 2018, compared with a loss of borrower’s 95%-owned unit Shanghai plans to sell assets to raise funds and Rmb118m a year earlier. Dongzheng Automotive Finance. honour its debt obligation. According to the Chairman Wang Changtian owns a 48.8% Hong Kong-listed ZhengTong is an filing, the company has fixed assets with stake in the company. Chinese internet investment mainly a book value of Rmb5.9bn (US$856m) that giant Tencent has a 16.27% stake and online engaged in the sales of passenger cars, with have not been pledged as collateral. food delivery-to-ticketing services provider a focus on brands such as BMW, Jaguar & Reward also said it is seeking assistance Meituan Dianping owns 8.56%. Land Rover, Audi, Volkswagen and Volvo. from related government authorities to For full allocations, see www.ifrasia.com. overcome its difficulties. › CHENGDU EXPRESSWAY LAUNCHES IPO Reward failed to redeem Rmb300m › CMB INTERNATIONAL SEEKS FUNDS 7.5% 365-day commercial paper due on CHENGDU EXPRESSWAY has started bookbuilding December 6. The next day, it said it had for a Hong Kong IPO of up to HK$880m CMB INTERNATIONAL LEASING MANAGEMENT, a fully paid Rmb22.5m interest on the CP and was (US$112m). owned unit of CMB Financial Leasing, is planning to pay the principal no later than The company is selling 400m shares, or looking for a US$120m eight-year ship December 20. 25% of the enlarged share capital, at a fixed financing. However, the company failed to meet price of HK$2.20 each. Sole mandated lead arranger and its commitment and the principal remains The price represents a 2019 P/E of 6.7 and bookrunner CTBC Bank is conducting a unpaid. a 2019 forecast yield of 8.1%. limited syndication for the amortising term The default triggered a cross default on Two cornerstone investors are taking loan, which is for refinancing. Rmb300m 8.00% three-year medium-term up a combined 37.5% of the float. Xin Yue CMB International Leasing Management notes issued in August 2018 as well as Company has pledged to take up 100m is the guarantor, while the borrowers US$200m 7.25% senior unsecured notes due shares and Chengdu Financial Holding are six of the guarantor’s special-purpose January 2020 issued in 2017. Group 50m shares. vehicles, each holding a ship. The six ships In earlier filings, Reward said its access There is a 15% greenshoe. are providing security. to bank loans had been suddenly restricted Books will close on January 7 and pricing The commitment deadline was December because of tightening credit conditions, is slated for the same day. The shares will 22 but syndication is ongoing. which caused the default. It said its start trading on January 15. CMB International Leasing Management operations remained normal. Chengdu Expressway operates and last raised a US$115m five-year ship Both Moody’s and Fitch downgraded the develops expressways in and around financing in October 2017 for three of its company on December 7. Chengdu in Sichuan province. It posted a SPVs – Sea 49 Leasing, Sea 50 Leasing and Moody’s cut Reward to Ca from B3 net profit of Rmb368m in 2017, up 13.4% Sea 51 Leasing – that CMB International following the incident and the dollar from a year earlier. Leasing Management also guaranteed. The bonds’ rating to Ca from B3, and said it is CLSA is the sole sponsor. interest margin is 120bp over Libor and concerned about the recovery amount for the deal offered a top-level all-in pricing of bondholders. › WEIMOB OPENS BOOKS FOR IPO 140bp for an average life of 2.5 years. CTBC Fitch lowered Reward’s rating to RD was also the sole MLAB and brought in six (restricted default) from B and its dollar WEIMOB started bookbuilding last Monday for Taiwanese banks. bonds’ rating to C from B with recovery a Hong Kong IPO of up to HK$1.06bn. In November, CMB International Leasing rating of RR4, following the default. The company is selling 301.7m shares, Management directly obtained a US$565m RR4 rated securities have characteristics or 15% of the enlarged share capital, in an three-year loan for refinancing and general consistent with securities historically indicative price range of HK$2.80–$3.50 each. corporate purposes. The facility has a recovering 31%–50% of current principal The range represents a 2019 P/E of 18.4– margin of 95bp over Libor and lenders and related interest, according to Fitch’s 23.0 and a 2020 P/E of 9.1–11.3. were offered a top-level all-in pricing of definition. Three cornerstone investors have agreed

30 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

COUNTRY REPORT CHINA

to take up a combined US$42m of the IPO Citigroup and CCB International are joint offering, excluding an overallotment option shares. sponsors. of 15% of the deal, according to an earlier Shanghai Wentang has pledged for filing from its parent. CIMC Group controls US$30m, Beyond Science US$7m and Hong › CHINA TOBACCO FILES FOR LISTING 63.33% of the company. Kong-listed third-party payment firm Huifu For the six months ended June 30, CIMC US$5m. CHINA TOBACCO INTERNATIONAL (HK) COMPANY, Vehicles posted a profit of Rmb653.4m, The deal will price on January 8 and the a subsidiary of China National Tobacco up from Rmb567.4m in the previous year. shares will start trading on January 15. Corporation, is seeking to raise about It reported annual profit of Rmb1.01bn in Weimob is a provider of cloud-based US$100–$200m from a Hong Kong IPO, 2017. commerce, marketing and targeted according to people close to the deal. CIMC Vehicles has 22 production bases marketing services on Tencent’s social The offshore tobacco trader filed a and 14,784 employees, mostly in China. networking service platforms for small and listing application to the Stock Exchange Overseas sales accounted for 36.5% of its medium sized businesses in China. of Hong Kong on January 2. The company revenues in the first half of the year. Tencent Holdings currently has a 3.43% sells 24 Chinese cigarettes brands to duty- Haitong is the sole sponsor of the float. stake in Weimob. free outlets and wholesalers in Thailand, Weimob posted a loss of Rmb619.5m for Singapore, Hong Kong and Macau. › EBANG REFILES FOR HK LISTING the first six months of 2018. CNTC, which owns 100% of the company, Deutsche Bank and Haitong International operates a state monopoly in China for EBANG INTERNATIONAL, a Chinese bitcoin- are the joint sponsors. The two banks are the production, sale, import and export of mining gear maker, has refiled an IPO also joint global coordinators and joint tobacco products. application to the Stock Exchange of Hong bookrunners with CICC. There are six other For the nine months ended September Kong after its original plan to list in 2018 joint bookrunners. 30, the company posted a profit of did not come to fruition. HK$222m. It reported an annual profit of Haitong International remains the sole › METEN EDUCATION PLANS US IPO HK$347.6m for 2017. sponsor. CICC and China Merchants Securities are The company, which aims to raise METEN EDUCATION, a language training working on the float. US$1bn from the listing, first filed an institute in China, plans to raise about application last June. However, close US$200m from a US IPO this year, › FUTU HOLDINGS FILES FOR NASDAQ IPO regulatory scrutiny of cryptocurrencies according to people close to the deal. and the sharp fall in the value of bitcoin The company is working with advisers on Tencent-backed online brokerage firm FUTU affected investor sentiment and encouraged the proposed float, said the people. HOLDINGS has filed for a US$300m Nasdaq the issuer to wait for better market Founded in 2006, Meten teaches mainly IPO with the US Securities and Exchange conditions. English in more than 120 schools in 27 Commission. The new filing updates Ebang’s Chinese cities. The company owns Meten Pre-marketing of the deal started last financials. For the six months ended June English, Meten Exams Outbound, Meten Friday. Books are scheduled to open in the 30, 99% of the company’s revenue came Study Outbound, Meten Preparatory week of January 14. from blockchain-related activities and 0.7% Academy and mobile app Likeshuo. The company posted net income of from telecommunications. This compares According to local media, Meten English HK$100m for the first nine months of 2018, to 88.7% and 11.3%, respectively, in the raised Rmb300m in its round C financing in versus a net loss of HK$38m over the same same period of the previous year. the third quarter of 2018. DG Capital, China period in 2017. It posted a net profit of Rmb931m for the Capital Investment Group and MOOC-CN Futu brokered HK$678bn in client trades first half of 2018, up from Rmb52m a year Investment were the investors. for the nine months ended September 30 earlier. The company did not reply to emails 2018. Ebang is one of three bitcoin mining seeking comment on its IPO plans. As of September 30 2018, the brokerage equipment makers planning to go public in had over 457,000 registered clients, defined Hong Kong, along with Canaan and BitMain › KEPEI EDUCATION TO PRE-MARKET IPO as users who have opened trading accounts Technologies. with the company, and over 124,000 paying Hangzhou-based Canaan let its listing CHINA KEPEI EDUCATION GROUP, a provider of clients, defined as registered clients who application of up to US$1bn lapse in private higher education, plans to start have assets in their trading accounts. November, six months after it was filed. As pre-marketing as early as this week for a Currently, Tencent Holdings owns a for BitMain, which filed in September, it is Hong Kong IPO of about US$100m–$150m, 38.2% stake in the company. seeking an IPO of up to US$3bn. according to people close to the deal. Credit Suisse, Goldman Sachs and UBS are As of September 2018, the southern leading the transaction. › VIVA BIOTECH PRE-MARKETS HK IPO China-based company had 45,118 students enrolled at the two schools it operates, › CIMC VEHICLES FILES HK IPO VIVA BIOTECH has started pre-marketing a namely Guangdong Polytechnic College and Hong Kong IPO of US$200m–$300m, said Zhaoqing School. CIMC VEHICLES, a subsidiary of Shenzhen-listed people close to the deal. The company posted a profit of China International Marine Containers, is The Chinese company, which provides Rmb166m for the first eight months of looking to raise about US$300m–$500m drug discovery or incubation services to 2018, up 70% year on year. from its Hong Kong IPO, according to biotech startups, has not yet decided when to The company will use the proceeds to people with knowledge of the transaction. open the books for the deal, said the people. acquire additional schools and improve The trailer maker submitted its listing According to a regulatory filing, the existing operations. The remainder will be application to the Stock Exchange of Hong company offers services that include used to repay loans and for working capital Kong on December 27. It plans to sell 15.0%- research, hit screening, lead optimisation and general corporate purposes. 18.2% of its enlarged share capital in the and drug candidate determination. It also

International Financing Review Asia January 5 2019 31 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

makes strategic equity investments in bottom of the indicative price range. range of HK$1.76–$2.34 each. The price potential biotechnology startups. The Chinese mobile advertising service gives the company a market capitalisation As of April last year, it had nearly provider sold 76.4m shares, or 6% of the of US$243.1m and a forecast 2019 P/E 300 early-stage biotechnology and enlarged share capital, at HK$3.56 each multiple of 7.63. There is an overallotment pharmaceutical clients worldwide, covering versus the HK$3.56–$4.62 range. option of 15% of the base deal. the development of 1,000 drug targets and The final price represents a 2019 P/E of 13.2. Four cornerstone investors pledged over 7,000 protein structures. Sea Concept International Investment is a combined HK$187m of shares. They The company posted a profit and total a cornerstone investor for US$2m. are Beijing Forever for HK$98m, SCIG comprehensive income of Rmb55m in the CICC, ICBC International and Macquarie International HK$82m, Ninggelang Electric first eight months of 2018, compared with were the joint sponsors. Rmb2.48m and Sichuan Huadong for Rmb29m for the same period the year The shares fell 15.7% on their trading Rmb2m of shares. before. debut on December 21, closing at HK$3.00. Proceeds will be used to acquire power- CICC is the sole sponsor. related assets like hydropower plants, build Proceeds will be used to expand the › WEIGANG COMPLETES HK IPO power supply networks and establish a company’s business, to add more Chinese centralised power dispatch control centre. biotechnology startups to its portfolio WEIGANG ENVIRONMENT TECHNOLOGY has raised The remainder will be used for working and beef up its commercial and research HK$275m from a Hong Kong IPO after capital and general corporate purposes. capabilities in the biologics and chemistry pricing it at the bottom of the indicative BoCom International is the sole sponsor. contract manufacturing organisation price range. sector. The Chinese solid waste treatment › BANK OF JINZHOU PLACES H-SHARES company sold 312m shares, or 23.44% of › JIAYIN GROUP FILES FOR US IPO the enlarged share capital, at HK$0.88 each Hong Kong-listed BANK OF JINZHOU has raised versus the HK$0.88–$1.00 range. HK$8.3bn through a private placement of Chinese fintech company JIAYIN GROUP has The final price represents a 2019 P/E of H-shares. filed for a Nasdaq IPO of US$57.5m. 7.7. The placement comprised 1bn new The company operates a financial There is a 15% greenshoe of the base size. H-shares, or 12.85% of the enlarged capital, marketplace in China connecting individual The company intends to use the priced at HK$8.30 each. investors with individual borrowers. It proceeds on pyrolysis technology to The price was at a 9.9% premium to the facilitated total investment volume of treat solid waste, to establish a research pre-deal close of HK$7.55. Rmb19.2bn in the nine months ended centre, develop oil sludge thermal The bank intends to use the proceeds to September 30 2018. desorption technology, and the remainder replenish core Tier 1 capital. The company posted net income of to invest in a cement plant parallel kiln CMB International, Guotai Junan Rmb449m for the first nine months of co-treatment solution and for general International, Parchment Investment, Profit 2018, up 13.4% year on year. working capital. Access Investments and Yuanyin Securities were Jiayin de-listed from China’s National BOC International was the sole sponsor and the placing agents. Equities Exchange and Quotations last year. sole global coordinator. and Shenwan Hongyuan › GOLDWIND WINS RIGHTS ISSUE OK Securities are leading the transaction. › CANGNAN INSTRUMENT PRICES IPO The China Securities Regulatory › JUNSHI BIOSCIENCES PRICES AT BOTTOM ZHEJIANG CANGNAN INSTRUMENT GROUP has raised Commission has approved Hong Kong- HK$268.6m from a Hong Kong IPO after listed XINJIANG GOLDWIND SCIENCE & TECHNOLOGY’s SHANGHAI JUNSHI BIOSCIENCES has raised pricing the deal in the lower half of the H-share rights issue plan. HK$3.08bn from a Hong Kong IPO after price range. The CSRC has authorised the Chinese pricing it at the bottom of the indicative The Chinese gas flow meter wind turbine manufacturer to sell no more price range. manufacturer sold 17m new shares, or 25% than 130m overseas listed foreign rights The company sold 159m shares, or 20.9% of the enlarged capital, at HK$15.80 each issue shares. Based on the company’s close of the enlarged share capital, at HK$19.38 versus an indicative range of HK$13.50– on December 28 of HK$9.99 a share, the each versus the HK$19.38–$20.38 range. $18.90 per share. deal could raise up to HK$1.29bn. Seven cornerstone investors have taken ZS Capital Fund subscribed to 4.8m The issue is part of a proposed rights part in the deal for a combined US$242m. shares as the cornerstone investor. issue of A-shares and H-shares to raise There is a 15% greenshoe. ABC International is the sole sponsor and up to a combined Rmb5bn on a yet to be The company, founded in 2012, has sole global coordinator. finalized 2-for-10 basis. Of the planned developed 13 biologic drug candidates, five of 711m shares on offer, 81.7% will be which are at the clinical stage and eight are in › SICHUAN ENERGY IPO PRICED AT BOTTOM A-shares and 18.3% H-shares. The company pre-clinical research. The candidates comprise is also listed in Shenzhen. seven immune-oncology drugs, two drugs for Chinese power supplier SICHUAN ENERGY Proceeds will be used to fund two wind metabolic diseases, three for inflammatory INVESTMENT DEVELOPMENT has raised HK$476m farm projects, replenish working capital diseases and one to treat neurologic diseases. from its Hong Kong IPO after pricing the and repay debt. CICC is the sole sponsor of the proposed deal just above the bottom of the indicative float. range. › ZIJIN MINING PLANS SHARE SALE Shares were flat against the IPO price on › WANKA ONLINE PRICES IPO AT BOTTOM their trading debut on December 28. ZIJIN MINING GROUP, China’s largest gold miner, The company sold 268.8m primary plans to sell up to Rmb8bn of new shares WANKA ONLINE has raised HK$272m from shares, or 25% of the enlarged share capital, in Shanghai to help finance the purchase of a Hong Kong IPO after pricing it at the at HK$1.77 each versus an indicative price Canadian mining company Nevsun Resources.

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COUNTRY REPORT CHINA

The Shanghai and Hong Kong-listed › QINGDAO PORT KICKS OFF SHANGHAI IPO large Chinese enterprises – China company will sell 3.4bn new A-shares, or National Petroleum, State Development & not more than 15% of its enlarged capital, Hong Kong-listed QINGDAO PORT INTERNATIONAL Investment Corporation, Hongta Tobacco through a share placement. conducted pricing consultations for a Group, China General Technology (Group) The placement price will not be less than Rmb2bn Shanghai IPO on January 3 and 4. Holding, and Shanghai State-owned Assets the average trading price of the A-shares The company will open books for one Operation Corporation. for the 20 trading days prior to the date of day on January 9. The bank is active in investment publication of the offering documents, or Qingdao Port has reduced the number of banking, sales and trading, retail and the average trading price of the A-shares on A-shares on offer from 671m to 454m, or brokerage, and asset management. the trading day before the publication of about 7% of its enlarged share capital, in its is the sponsor on the documents, whichever is lower. updated prospectus. the IPO and joint bookrunner with Ping An The company will use the proceeds to help Based on its closing price of HK$4.96 in Securities. finance its Rmb9.36bn purchase of a 100% Hong Kong last Thursday, the company stake in Toronto-listed Nevsun Resources. could raise about Rmb2bn from its A-share › CRSCS TO FILE FOR A-SHARE IPO The Chinese mining company’s shares offering. in Shanghai and Hong Kong fell sharply on Citic Securities is the sponsor of the IPO CHINA RAILWAY SPECIAL CARGO SERVICES plans to January 2, the day after it announced the and joint bookrunner with BOC International file for an A-share IPO this year, people with proposed public issuance of A-shares and the (China) and UBS Securities. direct knowledge of the plans have told IFR. first market day after the New Year holiday. As a prelude to the float, the company Its A-shares fell 9.9% to Rmb3.01, their lowest › BOC INTERNATIONAL (CHINA) PLANS IPO kicked off a mixed-ownership transition level since May 2016. Its shares in Hong Kong process on December 17 when it put up fell 5.72% to HK$2.80 that afternoon. Chinese investment bank BOC INTERNATIONAL 20% of its shares for sale at the Shanghai (CHINA) has applied to the China Securities United Assets and Equity Exchange for › HUISHANG BANK PLANS SHANGHAI IPO Regulatory Commission for approval Rmb3.15bn. of a Shanghai IPO, according to an Currently, China Railway Construction Hong Kong-listed HUISHANG BANK plans to announcement from Bank of China on Investment Company, a unit under China offer not more than 1.5bn new shares in a December 14. Railway Corporation , holds a 91.79% stake Shanghai listing. The bank currently has a total share of the cargo services company. Based on the bank’s December 28 close capital of 2.5bn shares, of which 37.14% is Three freight companies, China of HK$3.35, the IPO would raise up to held by Bank of China. Railway Express, China Railway Container HK$5.02bn, or Rmb4.41bn. BOC International (China) plans to sell Transport and China Railway Special Cargo Huishang Bank is expected to seek not more than 25% of its enlarged capital in Services, are directly controlled by China approval from its board and the China the IPO. Railway Corporation. The latter is “the Securities Regulatory Commission. The Chinese investment bank plans to most profitable among the three”, one of The lender withdrew an application use the proceeds to replenish working the people told IFR. for an A-share listing earlier last year, capital and to expand its business. It is understood that the company has not saying further discussion was needed with BOC International (China) was founded picked which stock exchange to list on as yet. directors and shareholders as well as the in 2002. It is jointly controlled by BOC China Railway Special Cargo Services securities regulator. International Holdings and five other posted a net profit of Rmb438m in the

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nine months to September on revenues The company plans to offer not more NINGBO WATER METER also aims to list on the of Rmb5.66bn. Its revenue in 2017 was than 57.7m A-shares, or about 25% of its Shanghai Stock Exchange. It plans to raise Rmb6.30bn and net profit was Rmb582m. enlarged capital. Rmb664.2m by offering not more than Its main business is nationwide Yongjin Metal Technology is one of 39.09m shares, or about 25% of its enlarged transportation services for commodity the largest cold-rolled stainless steel capital. Guoyuan Securities is the sponsor and vehicles, large-sized and refrigerated goods. producers in China. Its main business is the main bookrunner. development, production and sales of cold- ANSHAN HIFICHEM plans to raise around › MING YANG SMART ENERGY STARTS IPO rolled stainless steel strips covering two Rmb620m from a Shenzhen ChiNext IPO. major areas: precision cold-rolled stainless The company will offer not more than MING YANG SMART ENERGY GROUP is conducting steel strips and wide-width cold-rolled 26.7m shares, or about 25% of its enlarged pricing consultations for a Rmb2.5bn stainless steel strips. capital. Shanghai IPO on January 4 and 7. The proceeds will be used for the The dye producer is located in northeast The price will be announced on January construction of ultra-thin precision China, which has fewer listed companies 10, and books will open for one day on stainless steel strips. than other provinces in the country. It filed January 11, the Chinese company said. Huaxi Securities is the sponsor and main for a ChiNext IPO in 2012 but revoked its It plans to offer not more than 275.9m bookrunner. application in 2013. The company has been A-shares, or about 20% of its enlarged listed on the National Equities Exchange capital. › KUNSHAN RURAL SEEKS IPO and Quotation since August 2016. Ming Yang Smart Energy manufactures Minsheng Securities is the sponsor. wind turbines and manages domestic KUNSHAN RURAL COMMERCIAL BANK has filed for At the penultimate CSRC meeting of electric power companies. It aims to use a Shanghai IPO with the China Securities the year, CHINA MASTER LOGISTICS and SHANGHAI the IPO proceeds to build new wind farms Regulatory Commission. YONGGUAN ADHESIVE PRODUCTS were cleared in the Shanxi and Guangxi provinces In a draft prospectus, the lender said for respective Shanghai IPOs of about and for fan equipment manufacturing in it plans to offer 1.8bn–5.4bn A-shares, or Rmb919m and Rmb398m. Guangdong province. about 10%-25% of its enlarged capital, in the On the other hand, SUZHOU FUSHILAI Shenwan Hongyuan Financing Service is the float. PHARMACEUTICAL was denied CSRC approval sponsor. The lender is located in Jiangsu province. for a proposed Shanghai IPO of about Another lender from the province, Zijin Rmb525m. Chinalin Securities is the sponsor › ZIJIN RURAL BANK UPSIZES OFFER Rural Commercial Bank, opened the and bookrunner. subscription for its IPO on December 18. China Master Logistics plans to offer not JIANGSU ZIJIN RURAL COMMERCIAL BANK increased The latest filing will increase the number more than 67m A-shares, or about 25% of the online portion of its Rmb1.15bn of rural commercial banks in Jiangsu its enlarged capital. Shanghai IPO after the original online province planning to list in China’s A-share Proceeds will be used to purchase coastal tranche was subscribed 1,544.09 times, market to four. transportation and dual-use ships, bulk according to an announcement. Jiangsu Dafeng Rural Commercial Bank carriers, and large-sized transportation The regional bank, based in Nanjing in and JiangSu Haian Rural Commercial Bank equipment, and for construction of a cross- Jiangsu province, was selling 366m shares at filed preliminary draft prospectuses to the border e-commerce logistics distribution Rmb3.14 per share. Around 30% of the total, CSRC in November 2017 and June 2018 centre (Tianjin Dongjiang Yard) and or 110m shares, was open for subscription respectively. logistics information. Citic Securities is the online. The online and offline books were Kunshan Rural Commercial Bank posted sponsor and bookrunner. open for one day on December 18. revenue of Rmb2.2bn and net profit of Shanghai Yongguan aims to offer up to The online portion received bids for Rmb723m in 2017, up 5.91% and 16.39% 42m A-shares, or about 25% of its enlarged 170bn shares. year on year respectively. capital. As the online book was oversubscribed Citic Securities is the sponsor on the Dongxing Securities is the sponsor and more than 150 times, the company decided deal and joint bookrunner with Soochow bookrunner. Proceeds will be used for to activate the clawback mechanism, Securities. construction of three new production raising the online portion of the offer to Banks in China have accelerated their lines and the reconstruction of the R&D 90% and cutting the offline portion to 10%. plans to list on the A-share market, with 14 headquarters. No subscription figures were given for banks awaiting IPO hearings and approvals The two companies still need written the offline portion. from the CSRC. CSRC approvals. The proceeds will be used to improve the bank’s financial and capital strength. China › CSRC IPO APPROVALS DOWN 75% IN 2018 › TEN CHINESE COMPANIES SEEK IPOS Securities is the sole sponsor of the float. The China Securities Regulatory The China Securities Regulatory Committee › YONGJIN METAL UPDATES PROSPECTUS Commission gave written approval to just released preliminary prospectuses for 10 102 IPOs in 2018, only a quarter of the 401 companies planning Shanghai IPOs of a ZHEJIANG YONGJIN METAL TECHNOLOGY has updated approvals it granted in 2017. combined Rmb12.7bn on December 28, the the draft prospectus for a Shanghai IPO At its final meeting of the year on last trading day of 2018. of about Rmb1.18bn at the request of the December 28, the regulator gave the green JINKO POWER TECHNOLOGY and CHONGQING China Securities Regulatory Commission, light to three companies planning to raise a SANFENG ENVIRONMENT GROUP each aim to raise according to an announcement. combined Rmb3.78bn. Rmb2.5bn from their floats. The updated filing provides more MING YANG SMART ENERGY plans to offer not JINKO POWER TECHNOLOGY, spun off from information on its customer concentration, more than 275.9m A-shares, or about 20% NYSE-listed JinkoSolar Holding, plans to sell trade customer sales model, earnings and of its enlarged capital, in a Shanghai IPO to no more than 241.2m A-shares, or 10% of its related transactions. raise around Rmb2.5bn. enlarged share capital.

34 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

COUNTRY REPORT HONG KONG

CHONGQING SANFENG ENVIRONMENT GROUP, banks rolled over their existing allocations, signed the original facility at HK$780m in a provincial state-owned enterprise while others increased their commitments. October and has held this amount. specializing in waste incineration power Eight banks from the HK$7.137bn deal The sole MLAB has closed syndication generation, plans to offer 144m–433m signed in September 2017 have dropped of the greenshoe option, which has a final A-shares, or about 10%-25% of its enlarged out of tranches A and B – Bank of China (Hong amount of HK$970m, with five joining capital. Kong), China Merchants Bank, China Minsheng banks. Goldman Sachs and China Guangfa Bank The other listing candidates are Banking Corp, ICICI Bank, Korea Development Macau branch were the latest lenders to join CHANGZHOU KAIDI ELECTRICAL (Rmb1.5bn), Bank, MUFG, Industrial & Commercial Bank of with combined commitments of HK$350m. SHANGHAI GOLDEN UNION BUSINESS MANAGEMENT China (Asia) and Wing Lung Bank. The three banks that earlier joined with (Rmb828m), ATA ONLINE (BEIJING) EDUCATION Credit Agricole, new lenders Aozora HK$620m combined were Agricultural Bank TECHNOLOGY (Rmb747.9m), AEROSPACE PRECISION Asia Pacific Finance and Mega International of China Macau branch, Luso International PRODUCTS (Rmb690m), KUNSHANG HUGUANG Commercial Bank OBU, and existing lenders Banking and Tai Fung Bank. AUTO HARNESS (Rmb674.9m), HUBEI HARVIN Bank of Communications Hong Kong branch, China Guangfa, the final bank to (GROUP) CHEMICAL (Rmb1.7bn), SHANGHAI Bank SinoPac Hong Kong branch and CTBC Bank commit, was substituted into the deal on HUAFON ALUMINIUM (Rmb1.1bn) and SHANDONG provided the new-money portion. December 21. IMEGAWARE NETWORK TECHNOLOGY (Rmb438.6m). Credit Agricole, Credit Suisse Singapore The unsecured financing, which was only branch and Deutsche Bank Singapore branch, syndicated in Macau, had a target deal size which were the MLABs in 2017, remain of HK$3bn-equivalent. Banks could lend US lenders of the revolver and their allotments dollars or HK dollars or both but all lenders are unchanged. chose to provide HK dollars. HONG KONG The borrowers are ASIA CUBE GLOBAL The amortising loan pays an interest COMMUNICATIONS for tranche A, and margin of 380bp over Hibor and a top-level Asia Cube, HGC GLOBAL COMMUNICATIONS all-in pricing of 538bp for an average life of SYNDICATED LOANS INVESTMENT HOLDING and Hutchison Global 2.65 years. Communications for tranches B and C. Agile, which has projects in Hong Kong, › I SQUARED SIGNS HGC A&E Asia Cube, a fully owned subsidiary of a and in cities in China and Kuala Lumpur, is fund managed by I Squared Capital, bought rated Ba3/BB (Moody’s/S&P). I Squared Capital has closed a HK$7.9264bn HGC Global Communications, which held For full allocations, see www.ifrasia.com. (US$1.02bn) amend-and-extend exercise for Hutchison Global Communications, for the five-year leveraged buyout facility used HK$14.497bn in October 2017. Top bookrunners of Hong Kong syndicated loans to buy HUTCHISON GLOBAL COMMUNICATIONS with The guarantors of the entire financing are 1/1/18 – 31/12/18 26 banks joining the facility. Asia Cube, HGC Global Communications, Amount The deal has a HK$3.318bn term loan Hutchison Global Communications, Name Deals US$(m) % (tranche A), a HK$3.491bn loan (tranche Hutchison Global Communications 1 HSBC 32 8,003.9 11.9 B), a HK$1bn new-money tranche C and a Investments, Hazelwood Green, HGC 2 ICBC 17 5,082.4 7.5 HK$117m revolving credit facility. GlobalCentre and Keen Clever Holdings. 3 Standard Chartered 28 4,636.6 6.9 The amended facility agreement was For full allocations, see www.ifrasia.com. 4 CCB 18 4,529.5 6.7 signed on December 17. 5 CMB 12 4,160.9 6.2 Credit Agricole CIB is the sole mandated › AGILE CLOSES MACAU DEAL AT HK$1.75BN 6 Bank of China 21 4,031.0 6.0 lead arranger and bookrunner of the A&E 7 Credit Agricole 4 2,687.5 4.0 exercise and new-money tranche. Hong Kong-listed property developer AGILE 8 MUFG 10 2,454.0 3.6 It brought 24 existing lenders into GROUP HOLDINGS has closed a three-year term 9 Mizuho 15 2,086.6 3.1 tranches A and B, including Sumitomo Mitsui loan at HK$1.75bn. 10 BNP Paribas 8 2,028.0 3.0 Trust Bank, which had joined the 2017 Mandated lead arranger and bookrunner Total 128 67,500.4 facility via the secondary market. Some Industrial & Commercial Bank of China Macau * Based on market of syndication and market total

Proportional credit Top bookrunners of Hong Kong dollar bonds, Top bookrunners of Hong Kong dollar bonds, Source: Refinitiv data SDC Code: S9b inc certificates of deposit, commercial paper ex-certificates of deposit, commercial paper 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Hong Kong global equity and equity-related Amount Amount 1/1/18 – 31/12/18 Name Issues HK$(m) % Name Issues HK$(m) % Amount 1 HSBC 155 67,413.7 36.9 1 HSBC 60 40,481.2 46.0 Name Issues US$(m) % 2 BoCom 17 31,825.0 17.4 2 Standard Chartered 26 11,836.5 13.5 1 CICC 2 1,821.5 16.9 3 Standard Chartered 55 25,542.5 14.0 3 Credit Agricole 18 6,222.7 7.1 2 Goldman Sachs 7 1,111.2 10.3 4 Citigroup 33 14,275.6 7.8 4 Citigroup 5 3,501.0 4.0 3 UBS 4 1,061.3 9.9 5 Credit Agricole 22 8,400.7 4.6 5 BNP Paribas 15 3,346.0 3.8 4 Guotai Junan Sec 6 526.4 4.9 6 Mizuho 10 5,081.4 2.8 6 Bank of China 3 2,900.0 3.3 5 China Merchants Sec 5 448.5 4.2 7 BNP Paribas 16 3,446.0 1.9 7 Societe Generale 6 2,554.9 2.9 6 BNP Paribas 2 429.8 4.0 8 Societe Generale 8 3,254.9 1.8 8 BoCom 2 2,125.0 2.4 7 Citic Sec 2 356.3 3.3 9 Bank of China 3 2,900.0 1.6 9 Mizuho 4 2,029.4 2.3 8 Guoyuan Sec 1 350.0 3.3 10 CBA 5 2,350.0 1.3 10 DBS 3 1,884.0 2.1 9 Kingston Sec 18 327.1 3.0 Total 337 182,477.9 Total 139 87,976.7 10 Haitong Sec 7 310.6 2.9

*Market volume *Market volume Total 217 10,762.8

Proportional credit Proportional credit Source: Refinitiv data SDC Code: AS5a Source: Refinitiv data SDC Code: AS6 Source: Refinitiv data

International Financing Review Asia January 5 2019 35 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

› LONGFOR SIGNS FACILITY WITH 12 BANKS An Bank Shenzhen branch. Before changing that financial Signing was on December 21. covenant, lenders agreed to remove a Chinese developer LONGFOR GROUP HOLDINGS The interest margin is 230bp over separate covenant that caps the annual signed last Wednesday a HK$15.3bn five- Hibor and the top-level all-in pricing was dividend payout at 50% of the guarantor’s year bullet term loan. 280bp. consolidated net profit after tax and Twelve banks joined the self-arranged Rated Ba3/BB+/BB+, the Hong Kong- prohibits dividend payments from being deal, including Bank of China (Hong Kong), listed borrower is a real estate developer declared in the event of default. Industrial & Commercial Bank of China operating in major cities in China, The deal pays a top-level all-in pricing of (Asia), HSBC, DBS Bank Hong Kong branch, including Beijing, Chengdu, Chongqing, 118bp based on an interest margin of 90bp Agricultural Bank of China Macau branch, Shanghai and Tianjin. over Hibor. China Construction Bank (Asia), CMB Wing Beijing Capital Group, a state-owned For full allocations, see www.ifrasia.com. Lung Bank and Standard Chartered with enterprise group directly under the mandated lead arranger and bookrunner supervision of the State-owned Assets › GREENTECH TAPS TAIWAN LENDERS titles. Supervision and Administration BOCHK is the facility agent. Commission of the Beijing Municipality, Hong Kong-listed CHINA EVERBRIGHT GREENTECH The facility, which has an interest holds a controlling stake in the is tapping Taiwanese lenders for its debut margin of 172bp over Hibor, offered an borrower. four-year loan of HK$800m. all-in pricing of 205bp based on an upfront Taipei Fubon Commercial Bank is the fee of 165bp. A group of Longfor units are › XINYI GLASS RAISES LOAN TO HK$1.2BN mandated lead arranger and bookrunner of providing guarantees. the deal, which offers an interest margin of In January 2018, Longfor raised a Automobile glass maker XINYI GLASS HOLDINGS 145bp over Hibor. HK$10.209bn five-year club loan from eight has increased its three-year bullet term MLAs joining with HK$200m or more will banks. That deal offered an all-in pricing loan to HK$1.2bn from HK$750m. receive an all-in pricing of 165bp over Hibor under 200bp. Signing took place on December 21. via an 80bp participation fee, while lead The Hong Kong-listed borrower changed Sole mandated lead arranger and arrangers committing HK$125m–$199m its name from Longfor Properties in June bookrunner Sumitomo Mitsui Banking will obtain an all-in pricing of 160bp via a 2018. Corp brought in State Bank of India Hong 60bp fee. Arrangers with HK$50m–$124m The company has projects in 40 cities in Kong branch, Credit Industriel et Commercial will earn an all-in pricing of 155bp via a China and is rated Baa3/BBB–/BBB. Hong Kong branch, KDB Asia and Hua Nan 40bp fee. For full allocations, see www.ifrasia.com. Commercial Bank Macau branch. A bank meeting will be held in Taipei XINYI GROUP (GLASS), a unit of Xinyi Glass, in early January. Commitments are due on › BEIJING CAPITAL LAND COMPLETES LOAN is the borrower and Xinyi Glass is the January 25. guarantor. Funds will be used for general corporate BEIJING CAPITAL LAND has closed its HK$1.3bn Before the close of syndication, Xinyi purposes. three-year bullet term loan. Glass loosened the financial covenant The borrower is an environmental Mandated lead arranger, bookrunner applying to the guarantor’s ratio of total protection service provider in China, with and facility agent CMB Wing Lung Bank borrowings to tangible net worth. The a focus on biomass integrated utilisation, has brought in Bank of East Asia, maximum for that ratio is now 0.9x, up hazardous waste treatment, environmental Industrial Bank Hong Kong branch and Ping from 0.7x. remediation, solar energy and wind power.

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COUNTRY REPORT INDIA

holdings. The rating outlook is negative, Top lead managers of Indian rupee bonds as Moody’s said GCX would be unable to 1/1/18 – 31/12/18 INDIA access the capital markets while RCom Amount remains in the strategic debt restructuring Name Issues Rs(m) % process in India. 1 Axis 154 666,172.4 24.9 DEBT CAPITAL MARKETS GCX’s 2019 bonds were quoted on 2 HDFC 103 362,146.7 13.5 December 19 at a cash price of 85.5, 3 Trust Group 149 313,790.1 11.7 › IENERGIZER ON CREDIT WATCH NEGATIVE implying a yield of around 35%, according 4 ICICI Bank 128 282,810.3 10.6 to Refinitiv data. 5 Yes Bank 56 164,062.3 6.1 S&P has placed IENERGIZER’S B+ credit rating 6 AK Capital 70 137,264.7 5.1 on credit watch with negative implications › IOC TO START DOLLAR ROADSHOW 7 Kotak Mahindra 47 113,354.1 4.2 on concerns that the proposed debt 8 Edelweiss Financial 33 84,585.0 3.2 issuance by the company’s parent company State-owned INDIAN OIL CORP, rated Baa2/BBB– 9 Standard Chartered 13 77,293.7 2.9 will push up leverage and weaken cash (Moody’s/Fitch), has mandated Citigroup, DBS 10 HSBC 8 69,100.0 2.6 flows. Bank, SBI Capital Markets, Standard Chartered Total 357 2,676,569.8 iEnergizer’s parent company Geophysical Bank and Westpac Banking Corp as joint *Market volume Substrata was assigned a long-term credit bookrunners and joint lead managers for a Proportional credit rating of B by S&P ahead of plans to raise potential US dollar bond offering, according Source: Refinitiv data SDC Code: AS23 debt last month. A formal mandate has yet to a source close to the plans. to be announced, but S&P said in a report Fixed income investor meetings will Barclays is said to be the sole arranger for that Geophysical planned to raise about begin in Singapore, Hong Kong and the bonds. US$400m to fund capex in the oilfield London from January 7 for five-year senior On December 28, Crisil assigned a services sector via SPD Services. unsecured notes in Reg S format, subject to AA+/stable rating to the bonds of Zydus S&P lowered its outlook on iEnergizer’s market conditions. Wellness because of its leading market long-term issuer credit rating and the IOC is yet to make an official position in the consumer wellness segment company’s bank loans on December 18, announcement on the planned dollar bond and the strong benefits expected from citing concerns that Geophysical’s proposed sale. the acquisition of Heinz India.If the issue issuance will push up the group’s leverage goes through, it would be first acquisition and weaken its cashflows over the next › BARODA SEALS RS2.4BN T2 PRINT finance deal funded by bonds since 12-24 months. household products manufacturer Nirma Geophysical is a holding company based BANK OF BARODA has raised Rs2.4bn (US$34m) raised Rs40bn from bonds to buy Lafarge in the British Virgin Islands and owns about from Basel III-compliant 10-year Tier 2 in 2016. 83% of iEnergizer through its wholly owned bonds at 8.4%. subsidiary EICR (Cyprus) Ltd. The notes have a call option after five › CORPORATION BANK SCRAPS T2 SALE iEnergizer is an India-based provider years. of global business process outsourcing Crisil and India Ratings have assigned CORPORATION BANK has scrapped the sale of services. The company has a US$135bn AAA ratings to the notes. Rs10bn Basel III-compliant 10-year Tier 2 term loan B that is due in May 2019, AK Capital, Axis Bank, ICICI Bank and Trust bonds after it did not get the desired levels. according to Refinitiv data. The company Investment Advisors are the lead arrangers. The state-owned bank received a lowest failed to issue a debut US dollar bond in On December 7, Bank of Baroda raised bid of 11.25%. November 2014, which at the time was said Rs9.72bn from 10-year Tier 2 bonds at Corporation Bank was eyeing Rs5bn, plus to be planned via Barclays and BNP Paribas, 8.42%. a greenshoe option of the same amount. to refinance the loan, which pays 600bp The notes had a call option on the fifth over Libor. › ZYDUS SELLS BONDS FOR HEINZ INDIA BUY year and each year thereafter. India Ratings assigned a AA– rating and › MOODY'S DOWNGRADES GCX Indian consumer company ZYDUS WELLNESS, Brickwork Ratings a AA rating to the T2 together with its parent company CADILA notes. Moody’s on December 19 downgraded GCX’s HEALTHCARE, is planning to raise Rs15bn corporate family and senior secured bond from bonds for the acquisition of Heinz › SHRIRAM SETS COUPONS ON PUBLIC ISSUE rating to Caa1 from B3, citing refinancing India, according to a source close to the concerns. development. SHRIRAM TRANSPORT FINANCE has fixed the Subsea cable provider GCX is owned by Zydus and Cadila recently acquired coupons for its Rs7bn public bond offering, Global Cloud Xchange, a wholly owned the Indian subsidiary of Kraft Heinz for according to the offer document. subsidiary of Reliance Communications, Rs45.95bn, to be funded by debt and equity. The Indian commercial vehicle finance which is undergoing debt restructuring. Following the acquisition, Zydus will own provider is planning to raise Rs2bn, plus a GCX has a US$350m bond coming due in brands such as malt-based health drink greenshoe option of Rs5bn. August. Moody’s noted that the company’s Complan and energy drink Glucon-D. It has set the coupons at 9.40%, 9.50% and management had said on a recent earnings Zydus plans to issue bonds in the 9.70%, payable annually, for three, five and call that it was considering several options separately transferable redeemable 10-year bonds. for refinancing, but had not come to a final principal part format in tenors of between The coupons for a monthly interest agreement. RCom is also thought to be three and five years. The rupee notes will payment option for five and 10 years are considering a sale of GCX. be issued in a range of 9.25%-9.35%. 9.12% and 9.30%, respectively. The rating agency said it expected GCX The exact structure and yield of the bond The issue opens on January 7 and closes to be able to make a US$12.25m coupon offering is yet to be announced by the on January 31. payment on February 1 from its cash company. Crisil and India Ratings have assigned

International Financing Review Asia January 5 2019 37 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

AA+/stable ratings to the notes. Crisil, Care and India Ratings assigned AK Capital, Axis Bank, HDFC Bank, ICICI Shriram has appointed AK Capital, Axis AAA ratings to the notes. Bank and Kotah Mahindra Bank are the lead Bank, Edelweiss Financial Services, JM Financial On December 1, the state-owned issuer arrangers for the bond issue. and Trust Capital as lead arrangers. raised Rs25.52bn from 10-year bonds at 8.54%. › IL&FS BEGINS ASSET SALES › GREATER VISAKHAPATNAM ISSUES MUNIS › HUDCO COMPLETES RS9.3BN PRINT Debt-laden INFRASTRUCTURE LEASING AND GREATER VISAKHAPATNAM MUNICIPAL CORPORATION FINANCIAL SERVICES is planning to raise funds has issued Rs800m 10-year municipal bonds HOUSING AND URBAN DEVELOPMENT CORP completed by selling education and alternative at 10%. the sale of Rs9.30bn bonds maturing on investment fund management businesses Greater Visakhapatnam’s is the sixth April 15 2022 at 8.23%. together with road assets owned by its municipal bond offering since the city On November 26, Hudco raised Rs20.5bn subsidiaries. of Pune opened the market in June from 10-year bonds at 8.52%. IL&FS has begun the process of 2017. Pune, Bhopal, Indore and Greater Axis Bank, Centrum Capital, ICICI Bank, selling the education business under Hyderabad municipal corporations have ICICI Securities Primary Dealership and Trust IL&FS Education & Technology Services raised a combined Rs9.09bn. Investment Advisors are the lead arrangers. and other subsidiaries, the alternative Greater Visakhapatnam initially planned Care and India Ratings have assigned investment fund business under IL&FS an issue size of Rs1bn. The interest on the AAA ratings to the notes. Investment Managers and domestic road bonds will be paid semi-annually. assets owned by IL&FS Transportation The notes are rated AA (structured › PGC FIXES YIELD AT 8.36% Networks. obligation) by India Ratings and Care. The education business provides SPA Capital Adivisors was the lead arranger State-owned electric utility POWER GRID CORP OF technology services to K-12 schools and for the issue. INDIA has fixed the yield on 10-year bonds at students, as well as advisory and project 8.36% to raise Rs20bn, according to market management services to central and state › SBI PRINTS AT1S AT 9.37% sources. governments through its subsidiaries. The It was targeting Rs10bn, plus a greenshoe alternative investment fund management STATE BANK OF INDIA has raised Rs20.45bn from option of the same amount. The notes business has assets under management of non-call five Basel III-compliant Additional are redeemable in five equal annual Rs133.34bn. Tier 1 bonds at 9.37%. instalments, at the end of the sixth, The road business comprises seven This will be SBI’s second AT1 bond seventh, eighth, ninth and 10th years. operating annuity-based road projects, issue since it reopened the perpetual bond The notes will be allotted on January 7. eight toll-road projects, four projects market in November. The lull came after The bonds have AAA ratings from Crisil, under construction and three other the Reserve Bank of India in February took Icra and Care. businesses. the unprecedented step of ordering some of PGC is yet to make an official The IL&FS board has appointed Arpwood the country’s weaker banks to redeem their announcement on the final size and yield Capital and JM Financial as financial and capital securities ahead of schedule. of the bond issue. transaction advisers, along with Alvarez & On November 30, SBI raised Rs40.21bn Marsal as resolution consultants. from non-call five perpetual bonds at 9.56%. › ICICI BANK SELLS AT1 AT 9.9% In November, the board decided to Crisil and Icra have assigned AA+/stable publicly solicit expressions of interest for rating to the notes. ICICI BANK has printed Rs11.4bn non-call five its stakes in two of its subsidiaries: IL&FS SBI Capital Markets is the sole arranger Basel III-compliant Additional Tier 1 bonds Securities Services and ISSL Settlement & for the issue. at 9.9%. Transaction Services. The Indian private sector lender was The IL&FS group has 348 businesses and › HDFC PRINTS 10-YEAR BONDS AT 8.66% targeting Rs10bn, plus a greenshoe option gross debts of around Rs910bn. of Rs20bn. The infrastructure financing and HOUSING DEVELOPMENT FINANCE CORP has raised ICICI Securities Primary Dealership and ICICI development company defaulted on some Rs50bn from 10-year bonds at 8.66%, Bank are the arrangers for the bond issue. of its debt last year, triggering wider according to a filing on exchanges. Care, Crisil and Icra have assigned AA+ concerns about risk in India’s financial On December 13, HDFC raised Rs15bn ratings to the perpetual bonds. system. from senior secured bonds maturing in ICICI Bank is the second bank since June 2020 at 8.8%. On November 28, it November to issue AT1 bonds after State › NHAI RAISES LONG BONDS raised Rs90bn from 10-year bonds at 9%. Bank of India raised Rs60.66bn from AT1 Crisil and Icra have assigned AAA/stable bonds in two tranches. NATIONAL HIGHWAYS AUTHORITY OF INDIA has raised ratings to the notes. Rs20.55bn from 30-year bonds at 8.1905%. › NHB ISSUES THREE-YEAR NOTES The notes have a call option at the end of › REC SCRAPS 10-YEAR BOND ISSUE 10 and 20 years from the date of allotment. NATIONAL HOUSING BANK has raised Rs7.35bn Crisil, Icra and Care have assigned AAA RURAL ELECTRIFICATION CORP has scrapped the from three-year bonds at 8.14%. ratings to the notes. sale of 10-year bonds after it did not get the The notes have a put and call option at Separately, on November 24, National desired levels, according to market sources. the end of 396 days. Highways Authority of India filed a draft REC received the lowest bid at 8.35% In May, NHB scrapped the sale of three- shelf prospectus with the market regulator versus expectations of 8.25%. year rupee notes after receiving total bids to raise up to Rs100bn from a public issue It was targeting Rs5bn, plus a greenshoe of less than the issue’s base size. of bonds. option of Rs25bn. The interest on the bonds Care and India Ratings have assigned In August, NHAI raised Rs20.6bn from a were to be paid semi-annually. AAA rating to the notes. 30-year bond at 8.4535%.

38 International Financing Review Asia January 5 2019 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS

COUNTRY REPORT INDIA

› INFRA BONDS MAKE A COMEBACK State Bank of India, because of cashflow Top bookrunners of India syndicated loans mismatches. 1/1/18 – 31/12/18 India’s two large private sector banks have “There have been delays in the Amount issued long-term infrastructure bonds for implementation of the proposed liquidity Name Deals US$(m) % the first time in over two years as yields initiatives by the management, which have 1 Axis 18 3,603.2 12.4 ease. aggravated its liquidity,” Icra said in note 2 Yes Bank 23 2,980.4 10.3 HDFC BANK raised Rs60bn and AXIS BANK dated January 2. 3 Standard Chartered 21 2,208.3 7.6 printed Rs30bn from 10-year infra bonds at The rating agency has downgraded non- 4 L&T Financial Services 32 2,046.0 7.0 8.44% and 8.60%, respectively. convertible debentures, long-term and 5 Indusind-Bank 33 1,587.0 5.5 The proceeds will be used for funding short-term facilities totalling Rs109.63bn to 6 State Bank of India 13 1,485.8 5.1 long-term infrastructure and affordable D from a rating of C. 7 ICICI Bank 14 1,482.5 5.1 housing projects. The 25-year-old airline is facing 8 DBS 9 1,351.4 4.7 Crisil has assigned a AAA rating to the financial difficulties and owes money 9 MUFG 9 1,141.0 3.9 long-term notes of both banks. to pilots, lessors and vendors. Intense 10 ANZ 9 1,123.4 3.9 In 2016, Axis Bank raised Rs50bn from pricing competition, a weak rupee and Total 148 29,070.9 seven-year infra bonds at 7.60% and HDFC rising fuel costs weighed on the airline in * Based on market of syndication and market total Bank raised Rs30bn from 10-year infra 2018. Proportional credit bonds at 7.95%. Jet Airways has debt repayments of Source: Refinitiv data SDC Code: S10b Rs17bn due from December to March 2019, › NABARD PRINTS JANUARY 2023 TAP Rs24.44bn due in FY20 and Rs21.68bn in FY21, according to Icra. Group, each providing US$600m for a NATIONAL BANK FOR AGRICULTURE AND RURAL Jet and its second-largest shareholder combined shareholding of about 22% in DEVELOPMENT has raised Rs17bn from a tap of Etihad Airways are in talks with bankers UPL Corp. 8.5% January 2023 bonds at multiple yields on a rescue deal that may involve the Abu On December 7, UPL announced the between 8.25% and 8.35%, or clean prices of Dhabi-based airline increasing its stake new leadership appointments for the 100.84% to 100.60%, according to a market from 24%, according to Reuters. merged entity. These will be effective upon source. “Timely implementation of proposed completion of the transaction, which is The Indian policy lender was seeking liquidity initiatives by the management to subject to obtaining various regulatory bids to raise up to Rs20bn in a closed alleviate its liquidity strain would remain approvals and the satisfaction of the bidding session with multiple price critical to its credit profile,” Icra said. customary closing conditions. allocation. Following the acquisition, UPL will Crisil and India Ratings have assigned become one of the largest global crop- AAA ratings to the notes. SYNDICATED LOANS protection companies. Nabard is yet to make an official announcement on the final prices and size › UPL CLOSES US$3BN LOAN FOR ARYSTA BUY › BPRL LAUNCHES US$350M LOAN of the tap. A US$3bn five-year loan backing Indian State-owned Indian oil and gas company › IREDA RAISES 10-YEAR BONDS AT 8.51% agrochemicals company UPL’s purchase Bharat PetroResources has launched a of US-based Arysta LifeScience has closed US$350m loan. State-owned INDIAN RENEWABLE ENERGY after attracting 19 banks in general DBS Bank is the mandated lead arranger DEVELOPMENT AGENCY has raised Rs2.75bn from syndication. and bookrunner of the transaction, an issue of 10-year bonds at 8.51%, below MUFG and Rabobank were the original which has a US$125m three-year tranche the targeted size of Rs5bn, according to a mandated lead arrangers, underwriters and A, a US$125m five-year tranche B and a market source. bookrunners of the bullet term loan. ANZ, US$100m seven-year tranche C. India Ratings and Brickwork Ratings have Barclays, DBS Bank, First Abu Dhabi Bank, JP The interest margins are 110bp, 135bp assigned AAA ratings to the notes. Morgan and Societe Generale joined as MLABs and 195bp over Libor, respectively, for In late December, IREDA scrapped the in senior syndication. tranches A, B and C. The average lives are sale of three-year three-month and 10-year The deal pays an initial interest margin 2.5, 4.5 and 6.5 years. bonds after it did not get the desired levels. of 160bp above Libor based on ratings of Lead arrangers committing US$50m or It was planning to raise up to Rs10bn in BBB–/Baa3/BBB–. more receive a top-level all-in pricing of total. Lenders were offered a top-level all-in 130bp, 155bp or 210bp via participation IREDA is yet to make an official pricing of 175bp via a participation fee of fees of 50bp, 90bp or 97.5bp, respectively, announcement on the final yield and the 75bp. for tranches A, B and C. Arrangers coming size of the issue. On July 20, UPL said that its fully owned in for US$25m–$49m receive an all-in unit UPL Corp had signed an agreement pricing of 125bp, 150bp or 206bp via fees › JET AIRWAYS CUT TO DEFAULT with Platform Specialty Products to buy of 37.5bp, 67.5bp or 71.5bp, respectively. Arysta and its subsidiaries for US$4.2bn in Managers committing US$10m–$24m Indian rating agency Icra has downgraded an all-cash deal. receive all-in pricing of 120bp, 145bp or the loans and bonds of debt-laden JET The acquisition will be financed via a 202bp via fees of 25bp, 45bp or 45.5bp, AIRWAYS to default because of delayed combination of the loan and the injection respectively. interest and principal payments, according of US$1.2bn of new equity directly into The deadline for commitments is January to a release by the rating agency. UPL Corp from two new long-term equity 11. Jet Airways said on January 2 that it partners – a wholly owned subsidiary of Funds are for general corporate had delayed a December 31 payment Abu Dhabi Investment Authority and a purposes. to a consortium of Indian banks, led by wholly owned subsidiary of Texas Pacific The borrower is BPRL INTERNATIONAL, a

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wholly owned unit of BPRL, which in turn to complete the IPO by March 31 2019, first REIT IPO since the relevant regulations is a wholly owned subsidiary of Bharat is looking at raising funds from private were put in place in 2014. Petroleum Corp. equity. US-based Blackstone Group and Indian In November 2017, BPRL International The Securities and Exchange Board of real estate developer Embassy Group are raised a US$400m term loan. DBS and India delayed approval of the IPO as Anand the sponsors of the REIT. The REIT will State Bank of India were the MLABs of Rathi Commodities is one of the brokerages comprise 11 office assets in the cities of the deal, which comprises a US$100m being probed in the wake of the National Bengaluru, Mumbai, Noida and Pune. five-year tranche A and a US$300m Spot Exchange (NSEL) default. The prospectus does not indicate the seven-year tranche B. A handful of other ARWS had flagged the issue in its draft yield, but it cites industry data indicating lenders joined the facility, which has the prospectus. that office assets in India have operating backing of a standby letter of credit, in “Anand Rathi Commodities, one of income yields in the 7.5%–8.5% range. syndication. our group companies, is involved in a The overall rate of return for investors is proceeding with Sebi. Any adverse outcome likely to be in the 14%–15% range. › AIR INDIA AGREES SHORT-TERM CLUB LOAN in the matter would have an adverse effect Morgan Stanley, Bank of America Merrill on the brand and reputation of the Anand Lynch, JP Morgan and Kotak are joint global Debt-ridden state-run carrier AIR INDIA Rathi Group, which could have an adverse coordinators and bookrunners with Axis, has obtained a US$210m six-month impact on our business, financial condition Credit Suisse, Deutsche Bank, Goldman Sachs, club financing for capital expenditure and results of operations.” HSBC, IIFL, JM Financial and Nomura. purposes. The Anand Rathi Group provides Blackstone owns a 55% stake in Refinitiv, First Abu Dhabi Bank, Mashreqbank and investment banking, broking, wealth the Financial & Risk unit of Thomson Standard Chartered were the lenders on management and corporate finance Reuters, which includes IFR. the facility. FAB is the facility and security services. agent. The ARWS IPO comprised a secondary › IPOS PLANNED FOR SIX STATE FIRMS According to Reuters, Air India was component of Rs3bn and a primary seeking a short-term loan of Rs10bn component of Rs1.25bn. Anand Rathi The government plans to launch IPOs for (US$148m) so that it can continue day-to- Financial Services, one of the founders another six state-owned companies as it day operations, indicating the severity of its of the company, was the vendor of the continues its privatisation programme. financial situation. secondary shares. It plans to sell shares in TELECOMMUNICATION The borrower last raised a US$143m Market conditions have been CONSULTANTS INDIA, RAILTEL CORPORATION INDIA, one-year bridge loan for aircraft financing unfavourable for finance companies to NATIONAL SEED CORPORATION INDIA, TEHRI HYDRO purposes last May, according to LPC raise public funds since the default by DEVELOPMENT, WATER & POWER CONSULTANCY data. FAB, StanChart and Mashreqbank Infrastructure Leasing and Financial SERVICES INDIA and FCI ARAVALI GYPSUM AND were the mandated lead arrangers, Services. MINERALS INDIA. bookrunners and underwriters of the Equirus Capital and Jefferies India were the The Cabinet Committee on Economic deal. Gulf International Bank joined as a bookrunners on the IPO. Affairs also said Kudremukh Iron Ore will participant. launch a follow-on offer. › JK CEMENT SHARE SALE RAISES RS5BN CCEA did not indicate when the share sales would happen or give their EQUITY CAPITAL MARKETS JK CEMENT has raised Rs5bn through a approximate values. qualified institutional placement priced at The government has been selling shares › ANTONY WASTE FILES FOR RS3BN IPO Rs695.80. in state-owned companies to unlock value The transaction comprised a base deal and improve transparency. Hindustan ANTONY WASTE HANDLING CELL has filed a draft of Rs4bn with an upsize option of Rs2bn, Aeronautics, Mishra Dhatu Nigam, Bharat prospectus for an IPO of Rs3bn (US$43m) which was exercised only partially. Dynamics, Garden Reach Shipbuilders and is targeting a launch in the first half of The final price translates into a 4.6% and Engineers, Ircon, Rail Vikas Nigam this year. discount to the pre-deal close of Rs729 on and Rites were among the state-owned The waste management company said December 24. companies that launched IPOs last year. Rs435m primary shares and 9.4m secondary Less than 10 accounts participated in the shares will be sold in the IPO. Funds owned transaction and the majority of them were India equity and equity-related by Elliot Management are the vendors of local. 1/1/18 – 31/12/18 the secondary shares. Edelweiss was the sole bookrunner. Amount Equirus Capital is the sole bookrunner. Name Issues US$(m) % › EMBASSY REIT GETS SEBI OK FOR IPO 1 Citigroup 15 1,902.2 12.3 › ANAND RATHI WEALTH DROPS IPO 2 Axis 15 1,675.5 10.8 EMBASSY OFFICE PARKS REIT has been approved 3 Kotak Mahindra 12 1,297.4 8.4 ANAND RATHI WEALTH SERVICES has dropped by the Securities and Exchange Board of 4 State Bank of India 12 1,209.0 7.8 its Rs4.25bn IPO because of a delay in India for an IPO of up to Rs60bn and is 5 Morgan Stanley 6 1,189.3 7.7 obtaining regulatory approval as a group targeting a launch in the first quarter, 6 ICICI Bank 12 963.6 6.2 company is facing an investigation, people people with knowledge of the transaction 7 JM Financial 14 818.1 5.3 with knowledge of the transaction said. said. 8 BAML 4 638.6 4.1 The wealth management arm of The IPO will include a primary share 9 JP Morgan 5 530.8 3.4 financial services group Anand Rathi component of Rs53bn and an undisclosed 10 Goldman Sachs 5 514.0 3.3 said in a statement it withdrew the IPO secondary share tranche, according to the Total 235 15,483.8 prospectus as market conditions are not draft prospectus filed in September. favourable. The company, which had aimed If it goes through, the deal will be India’s Source: Refinitiv data SDC Code: C1L

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COUNTRY REPORT INDONESIA

Top bookrunners of Indonesian rupiah bonds Top bookrunners of Indonesia syndicated loans 1/1/18 – 31/12/18 1/1/18 – 31/12/18 INDONESIA Amount Amount Name Issues Rp(m) % Name Deals US$(m) % 1 Indo Premier Sec 45 12,214,708.3 13.7 1 Bank Mandiri 12 2,079.9 15.8 DEBT CAPITAL MARKETS 2 Danareksa 27 7,934,813.1 8.9 2 Bank Central Asia 7 1,158.4 8.8 3 Bank Mandiri 25 6,315,791.7 7.1 3 ANZ 11 888.1 6.7 › SMF EYES THREE-TRANCHE BONDS 4 DBS 23 5,256,084.5 5.9 4 SMFG 11 833.1 6.3 5 Bahana Sec 15 4,743,946.4 5.3 5 CIMB Group 10 739.7 5.6 SARANA MULTIGRIYA FINANSIAL aims to raise up 6 Bank Negara Indonesia 19 4,473,891.7 5.0 6 OCBC 7 718.9 5.5 to Rp2trn (US$138m) from a sale of three- 7 Trimegah Sec 17 4,155,249.1 4.6 7 Standard Chartered 11 678.9 5.1 part domestic bonds, according to an offer 8 Pt Cgs-Cimb Sekuritas 18 4,029,058.3 4.5 8 MUFG 6 617.4 4.7 document. 9 Deutsche 3 3,361,000.0 3.8 9 DBS 12 612.5 4.6 The Indonesian state-owned mortgage 10 BCA Sekuritas 8 3,079,095.2 3.4 10 Mizuho 4 555.8 4.2 provider has put out indicative yield ranges Total 78 89,456,393.5 Total 37 13,195.8 of 7.0%–8.00% for a 370-day tranche, 8.25%– *Market volume Based on market of syndication and market total 9.25% for a three-year piece and 8.5%-9.5% Proportional credit Proportional credit for a five-year portion. Source: Refinitiv data SDC Code: AS9 Source: Refinitiv data SDC Code: S11b The books opened on January 2 and will close on January 16 before pay-in takes Subsidiaries Medco E&P Malaka and 35bp after the first year. Proceeds are for place on February 11. Medco E&P Tomori Sulawesi are the refinancing debt. The notes have a AAA rating from borrowers of the financing, which will be Security for the financing is in the form Pefindo. Mandiri Sekuritas is the lead used for general corporate purposes. The of shares of Chandra Asri Petrochemical, arranger on the issue. deal will be signed soon. Indonesia’s largest petrochemical plant. Last October, SMF raised Rp1trn from a Medco Energi last raised a US$360m Barito Pacific owns a 46.3% stake in dual-tranche rupiah bond offering. reserve-based lending facility in December Chandra Asri, which raised a US$191m 2017. The same banks were the MLABs of facility last month. › WOM EYES THREE-TRANCHE BONDS that financing, which attracted six lenders Barito Pacific also bought an about 67% in limited syndication. Funds were used stake in Star Energy Group Holdings in WAHANA OTTOMITRA MULTIARTHA is targeting for the development of oil and gas fields early June for US$755m. proceeds of up to Rp800bn from a off the northwest coast of Borneo island. Meanwhile, Barito Pacific is also seeking triple-tranche bond issue, according to a That RBL pays different interest margins a US$2bn loan to fund the construction prospectus. to account for the project’s construction of two 1,000 MW coal-fired plants in The Indonesian automotive-financing risks. The margin is 450bp over Libor pre- Indonesia. The financing will comprise company has fixed the price for a completion before stepping down to 385bp commercial and export credit agency- Rp411.5bn 370-day tranche at 9.25%, for post-completion. backed tranches. The commercial tranche a two-year Rp38bn portion at 9.75% and a Listed on the Jakarta Stock Exchange, is expected to carry a 15-year tenor. three-year Rp119bn piece at 10%. It will also Medco Energi is involved in oil and gas DBS is the financial adviser for the issue Rp231.5bn on a best effort basis. exploration and production, drilling and rig project, which is estimated to cost around Bahana, DBS Vickers, Indo Premier, Maybank services, electrical power generation and US$3bn and will involve the construction of Kim Eng and RHB Sekuritas are lead arrangers. coal mining. two ultra supercritical plants at Suralaya in Fitch recently assigned a AA– rating For full allocations, see www.ifrasia.com. Banten province. to the bond issue of up to Rp800bn, Business tycoon Prajogo Pangestu is which is being made under a senior bond › BARITO PACIFIC EXERCISES GREENSHOE the controlling shareholder and founder programme of Rp5trn. of Barito Pacific, which was founded in The proceeds will be used for working Jakarta-listed conglomerate BARITO PACIFIC 1979 as Bumi Raya Pura Mas Kalimantan, a capital requirements. has exercised the greenshoe option for forestry and timber company. It was then its up to US$200m three-year bullet loan listed on the stock exchange in 1993 as after attracting four lenders in general Barito Pacific Timber. SYNDICATED LOANS syndication. Barclays and DBS Bank were the mandated › BTN CLOSES INCREASED FINANCING › MEDCO ENERGI RBL SEES DEMAND lead arrangers, bookrunners and equal underwriters of the loan, which had Indonesian state-owned lender BANK MEDCO ENERGI INTERNASIONAL’s US$500m a US$175m base size and a US$25m TABUNGAN NEGARA has obtained a US$130m reserve-based revolving credit facility greenshoe. one-year financing with a handful of banks has drawn a strong response from the Chailease International Financial joining in syndication. market with 12 lenders joining in general Services, CTBC Bank, First Commercial ANZ was the original mandated syndication. Bank and ICICI Bank joined the deal, which lead arranger and bookrunner of the ANZ, ING Bank and Societe Generale was signed last week, as lead arrangers. transaction, which was increased from were the mandated lead arrangers and The financing offered a top-level all-in an initial size of US$100m. DBS Bank and bookrunners of the three-year financing, pricing of 461.67bp based on a blended OCBC joined the deal as MLABs in general which paid a top-level all-in pricing of interest margin of 433.33bp over Libor. syndication and Shinhan Bank came in as an 431.7bp based on an interest margin of The margin is 375bp over Libor in the first MLA. Korea Development Bank and State Bank 375bp over Libor and an average life of 2.83 year, 425bp in the second and 500bp in the of India participated as lead arrangers. years. third. The deal also pays a duration fee of The deal offered a top-level all-in

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pricing of 80bp (offshore) and 100bp BSM director Ade Cahya Nugroho said Yangon Technical & Trading, will (onshore) based on interest margins of earlier the bank was planning an IPO in develop a large-scale complex with 65bp (offshore) and 85bp (onshore) over late 2019 or 2020, according to Reuters. The office buildings, commercial facilities Libor, respectively. official didn’t provide details on the size of and a hotel on the former site of the Funds were used for general corporate the float. BSM is the largest Shariah lender military museum in the centre of purposes. by assets in Indonesia. Yangon. Operating under the name Bank BTN, Other listed Shariah banks in Indonesia Completion of the project is expected in the Indonesian financial institution was are Bank BRI Syariah, which has a market 2020. founded in 1897 and listed on the Jakarta capitalisation of Rp5trn, and Bank Stock Exchange in 2009. Tabungan Pensiunan (Rp14trn). › RENTAL HOUSING SIGNS ¥14BN REFI

› CHANDRA ASRI PETRO RAISES US$191M JAPAN RENTAL HOUSING INVESTMENTS has signed a ¥14.203bn (US$126m) bullet term loan Japan Bank for International Cooperation and BNP for refinancing, the real estate investment Paribas signed two loans totalling US$191m JAPAN trust said. for Indonesia’s CHANDRA ASRI PETROCHEMICAL on The loan is split into ¥2bn four-year, December 17, JBIC said in a statement. ¥5.54bn 5.25-year and ¥6.163bn eight-year For a US$172m loan, JBIC and BNP SYNDICATED LOANS floating-rate portions with margins of are providing US$103m and US$69m, 33.75bp, 37bp and 48.25bp over one-month respectively, to buy equipment from › NIPPON LIFE JOINS RACE BANK REFI Tibor, respectively. It also includes a ¥500m Japan’s Toyo Engineering to build a eight-year fixed-rate tranche with a 0.8% polyethylene plant. Nippon Life Insurance has invested £200m interest rate. Meanwhile, JBIC and BNP are funding a (US$252m) in a refinancing of the Race MUFG was the arranger and agent. separate US$19m loan with US$11m and Bank offshore wind farm in the UK, in Existing lenders Aozora Bank, Ashikaga US$8m, respectively, to pay for services one of the largest offshore project finance Bank, Bank of Fukuoka, Mizuho Bank, Resona provided by Toyo Engineering’s local unit investments by a Japanese insurer, Nippon Bank, Shinsei Bank and Sumitomo Mitsui Inti Karya Persada Tehnik for the plant. Life said in a statement on December 24. Banking Corp joined the floating-rate Nippon Export & Investment Insurance The about £1.5bn refinancing for FIREBOLT tranches. New lender Nippon Life Insurance is providing 100% political and 95% RB HOLDINGS, which was signed on December joined the fixed-rate tranche. commercial risk coverage to the US$69m 12, pays an interest margin of around Funds were drawn on December 25. and US$8m eight-year commercial portions 150bp, sources said. Credit Agricole was the The borrower invests in rental housing of the loans. financial adviser, the sources said. properties across Japan. Firebolt, owned by Macquarie Infrastructure & Real Assets (50%), Sumitomo › LENDERS FLOCK TO GLP'S SAMURAI LOAN EQUITY CAPITAL MARKETS Corp (25%), Arjun Infrastructure Partners (12.5%) and Gravis Capital Management Sixteen banks joined the ¥60bn debut › BSM TARGETS IPO THIS YEAR (12.5%), holds 50% of the project, and Samurai loan for Singapore-based GLP, the Denmark’s Orsted AS owns the other half. largest Samurai loan from Asia, sources BANK SYARIAH MANDIRI is targeting an IPO of The original £1.227bn 16.75-year project said. at least Rp2trn (US$138m) later this year, financing was signed in December 2016. Agricultural Bank of China, Banco do Brasil, people with knowledge of the transaction That facility was arranged by MUFG, Credit Bank of Communications, Gunma Bank, Higo said. Agricole, , ING Bank, Bank, Hyakugo Bank, IBJ Leasing, Joyo Bank, The Islamic banking unit of Bank Mandiri Lloyds Bank, National Australia Bank, Royal Nanto Bank, Norinchukin Bank and Shinsei Bank is targeting a market capitalisation of up to Bank of Scotland, BNP Paribas, ABN Amro, are some of the lenders. Rp20trn, and the minimum 10% free float Siemens, Natixis, Migdal Insurance and The deal, which was signed last month, required under local rules would translate Samsung Life Insurance. comprises a ¥15bn five-year tranche and a into an IPO of Rp2trn. Construction of the 573MW project, ¥45bn seven-year portion with margins of which is located off the North Norfolk 65bp and 100bp over Tibor, respectively. Indonesia global equity and equity-related coast, started in February. Mizuho Bank was the sole mandated 1/1/18 – 31/12/18 lead arranger and bookrunner of the Amount › THREE SIGN LOAN FOR YANGON COMPLEX plain-vanilla corporate loan, which Name Issues US$(m) % will partially refinance a US$4.108bn 1 Citic Sec 4 324.4 16.2 Japan Bank for International Cooperation and leveraged buyout loan completed in 2* BNP Paribas 1 246.0 12.3 two commercial banks have signed a December for GLP’s LBO. Mizuho pre- 2* Nomura 1 246.0 12.3 US$144m loan for Singapore-based YANGON funded the loan in September. 4 Bank Mandiri 6 165.4 8.2 MUSEUM DEVELOPMENT to develop a commercial In December 2017, GLP raised 5 UOB 7 99.8 5.0 complex in Myanmar, JBIC said in a US$4.108bn through what was one of 6 Ciptadana Sec 2 84.2 4.2 statement. Asia’s largest LBO loans. The borrowing 7 Morgan Stanley 1 74.3 3.7 The two banks are Mizuho Bank and comprised a US$750m five-year term loan 8 Bahana Sec 3 73.4 3.7 Sumitomo Mitsui Banking Corp. tranche A1, a US$750m three-year term 9 Danareksa 3 71.5 3.6 The borrower, established by Japan’s loan tranche A2, a US$2.108bn two-year 10 Danatama Makmur 3 66.1 3.3 Fujita, Japan Overseas Infrastructure term loan tranche B and a US$500m five- Total 52 2,009.2 Investment Corporation for Transport year revolving credit facility with respective & Urban Development and Tokyo opening margins of 135bp, 120bp, 110bp Source: Refinitiv data Tatemono, along with Myanmar’s and 135bp over Libor.

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COUNTRY REPORT LAOS

The 2017 deal offered a top-level blended › HITACHI USES LOANS, CASH FOR ABB BUY all-in pricing of 135.4bp based on a blended margin of 124.06bp over Libor and blended HITACHI will fund its planned US$11bn LAOS tenor of 3.095 years. Citigroup, DBS Bank, acquisition of ABB’s power grids division Goldman Sachs, MUFG and Mizuho were with loans and cash on hand, the Japanese the original MLABs, while Bank of China, company said in a statement on December SYNDICATED LOANS Bank of Communications, China Merchants 17. Bank and Industrial & Commercial Bank Hitachi has agreed to buy an 80.1% stake › LAOS CENTRAL BANK LAUNCHES DEALS of China came in with the same title. The in the division from the Swiss engineering loan funded the buyout of Asia’s biggest group, it added. The BANK OF THE LAO PEOPLE’S DEMOCRATIC REPUBLIC warehouse operator in a deal that valued The Zurich-based company will initially launched two loans totalling US$200m on the company’s equity at about S$16bn retain 19.9%, with an exit option at fair December 19. (US$11.9bn). Special-purpose vehicle Nesta market value, with a floor price set at 90% Cathay United Bank is the mandated lead Investment Holdings was the acquiring of the enterprise value, exercisable by ABB arranger and bookrunner of a US$100m entity. three years after closing. four-year term loan for the country’s central GLP owns and operates a US$50bn global The acquisition of the unit, which has bank, while Taipei Fubon Commercial Bank is the portfolio of 63 million square metres of operational Ebitda of US$1bn, is expected MLAB on a same-sized two-year deal. logistic facilities in China, Japan, Brazil, to be completed in the first half of 2020. The four-year deal offers an interest the United States and other markets. The Hitachi last tapped the syndicated loan margin of 435bp over Libor and has an company is also the sponsor of Tokyo- market in December 2017 when it raised a average life of 3.4 years. MLAs committing listed GLP J-REIT, which manages US$5.5bn ¥3.6bn 264-day revolving credit arranged by US$15m or more will receive an all-in pricing logistics facilities in Japan. Mizuho Bank. of 448bp via a participation fee of 45bp, while In July 2016, Hitachi obtained a loan lead arrangers joining with US$10m–$14m › HUAWEI FREEZES SAMURAI SYNDICATION from Japan Bank for International earn an all-in pricing of 445bp via a 35bp Cooperation to back its acquisition of fee. Arrangers joining with US$5m–$9m HUAWEI TECHNOLOGIES has put on hold a Finmeccanica’s rail assets. The facility earn an all-in pricing of 442bp via a 25bp fee. planned US$300m-equivalent debut was funded as a two-step loan via Mizuho, Commitments are due on January 24. Samurai loan after the arrest of its global MUFG and Sumitomo Mitsui Banking Corp. The two-year facility offers an interest chief financial officer, sources said. Hitachi bought an about 51% stake in margin of 150bp over Libor and has The three Japanese mega banks – Ansaldo STS and AnsaldoBreda from the an average life of 1.75 years. Taipei Mizuho Bank, MUFG and Sumitomo Mitsui Italian conglomerate in a deal worth more Fubon partially pre-funded the facility Banking Corp – have postponed the general than €1.9bn (US$2.1bn then). in late November. MLABs committing syndication, which was launched in US$20m or more and MLAs committing November. US$15m–$19m will receive an all-in The three lenders underwrote US$100m- EQUITY CAPITAL MARKETS pricing of 330bp via a participation fee equivalent each, but the funds have not of 315bp, while lead arrangers joining been drawn. › TAKEDA PHARMA LISTS ADS ON NYSE with US$10m–$14m earn an all-in pricing The arrest of the CFO on December 1 and of 315bp via a 288.75bp fee. Arrangers news that Japan plans to ban government TAKEDA PHARMACEUTICAL listed American joining with US$5m–$9m earn an all-in purchases of Huawei equipment have depositary shares on the New York Stock pricing of 300bp via a 262.5bp fee. curbed Japanese lenders’ appetite. Exchange on December 24. Commitments are due on January 18. The Chinese telecom giant has already The Japanese pharmaceutical company’s Funds from both borrowings will be used been virtually locked out of the US market ADSs were previously traded over the to support the government’s infrastructure and has been prohibited by Australia and counter. projects as well as provide foreign currency New Zealand from building 5G networks The company is maintaining its primary liquidity to commercial banks operating amid concerns its gear could facilitate listing on the Tokyo Stock Exchange. in the country under the central bank’s Chinese spying. “Our dual listing on the NYSE and TSE supervision. The Samurai deal, denominated in reflects our position as a leading global The borrower raised a US$158m four- Japanese yen and targeting Japanese biopharmaceutical company and will year debut syndicated loan in December investors, was set to be the first such provide wider capital markets access with 2015. Cathay United and First Commercial borrowing for a Chinese corporate. The expanded trading hours for our investors Bank were the MLABs on the deal, which borrower was Huawei Technologies worldwide,” said Costa Saroukos, chief attracted 13 banks in general syndication. Cooperatief UA. financial officer of Takeda. That facility offered a top-level all-in pricing Huawei’s previous loan market visit Takeda is expecting to close the acquisition of 448.23bp via a margin of 435bp over was in December for a US$1.5bn five- of London-listed biopharmaceutical maker Libor and a 45bp upfront fee. year bullet loan. The facility offered Shire for ¥7trn (US$64bn) on January 8. top-level all-in pricing of 112bp based on Shire shareholders will be entitled to receive › LAO VIET BANK EXERCISES GREENSHOE an interest margin of 95bp over Libor. US$30.33 in cash and either 0.839 new ANZ, BBVA, BNP Paribas, Citigroup, Takeda shares or 1.678 Takeda ADSs for each LAO VIET BANK has increased its three-year Commerzbank, DBS Bank, ING Bank, Shire share held. term loan to US$100m from a US$60m Standard Chartered and UniCredit were Bank of New York Mellon is the depositary target after exercising a greenshoe option. the MLABs. bank for the NYSE listing. Cathay United Bank was the original Shenzhen-based Huawei, the world’s Takeda posted a net profit of ¥186.7bn mandated lead arranger and bookrunner of largest telecom equipment maker, for the fiscal year ended March 2018, up the bullet loan, while Bank Sinopac, Taichung established a Japan unit in 2005. from ¥115.5bn a year earlier. Commercial Bank Labuan branch, Union Bank of

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Top bookrunners of all Malaysian ringgit bonds Top bookrunners of Malaysia syndicated loans Malaysia global equity and equity-related 1/1/18 – 31/12/18 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Amount Amount Amount Name Issues M$(m) % Name Deals US$(m) % Name Issues US$(m) % 1 CIMB Group 49 19,236.8 22.9 1 Standard Chartered 3 2,249.2 21.2 1 CIMB Group 5 254.5 15.8 2 Maybank 54 16,760.4 19.9 2 HSBC 3 2,134.7 20.1 2 JP Morgan 2 234.7 14.6 3 RHB 49 16,554.1 19.7 3 Mizuho 2 2,051.7 19.4 3 Maybank 3 147.0 9.1 4 AMMB 41 16,079.1 19.1 4 UOB 1 2,000.0 18.9 4 RHB 12 146.8 9.1 5 Affin 16 4,435.4 5.3 5 OCBC 3 263.5 2.5 5 BNP Paribas 1 128.6 8.0 6 K&N Kenanga 23 2,797.2 3.3 6* Citigroup 2 263.4 2.5 6 K&N Kenanga 10 91.2 5.7 7 HSBC 10 2,305.0 2.7 6* MUFG 2 263.4 2.5 7 Affin 5 85.1 5.3 8 Bank Islam Malaysia 4 1,552.6 1.9 6* BNP Paribas 2 263.4 2.5 8 TA Sec 19 83.6 5.2 9 OCBC 5 1,466.8 1.7 9* Deutsche 1 211.7 2.0 9 Mercury Sec 19 83.0 5.2 10 Hong Leong Financial 11 843.3 1.0 9* First Abu Dhabi Bank 1 211.7 2.0 10 M and A Sec 18 67.8 4.2 Total 163 84,139.1 9* CBA 1 211.7 2.0 Total 124 1,609.7

*Market volume Total 10 10,602.7

Proportional credit * Based on market of syndication and market total Source: Refinitiv data

Source: Refinitiv data SDC Code: AS8 Proportional credit Source: Refinitiv data SDC Code: S14b compensation of M$972.75m to toll road Taiwan and Yuanta Commercial Bank joined concessionaires, the statement said. with the same title. around US$750m, for an A&E fee of 25bp. Among the affected highways are the The interest margin is 200bp over Libor. The loan and revolver continue to pay an North-South expressway, the Malaysia- Banks were offered a top-level all-in pricing interest margin ranging from 150bp to 225bp Singapore highway, also known as of 217bp via a participation fee of 50bp. over Libor or Hibor based on the leverage Linkedua, the Shah Alam expressway, the Funds are for working capital purposes. ratio of borrower WYNN RESORTS (MACAU). North-central south expressway, the East In September 2017, the borrower raised Repayment of the loan tranche will take coast expressway phase 1, the Duta-Ulu a US$40m three-year term loan from six place through eight quarterly instalments Klang highway (Duke), the Kuala-Lumpur- banks. Cathay United was the sole MLAB on with the first instalment due on September Putrajaya highway (Mex) and the Kajang that deal, which offered a margin of 320bp 30 2020 and a balloon payment of 75%. The highway-Seremban (Lekas). over six-month Libor. 2015 loan had a smaller balloon payment The latest government move to ease Established in 1999, the bank is a joint of 50%. toll road burdens on the country’s venture between Joint Stock Commercial The entire facility has now been extended citizens comes after the Pakatan Harapan Bank for Investment & Development of to mature on June 26 2022. The term loan government reversed a planned ban on all Vietnam (BIDV) and Laotian state-owned was originally slated to mature in September toll rates in Malaysia. Banque pour le Commerce Exterieur Lao 2021 and the revolver in September 2020. Toll road concessionaires typically rely on (BCEL). BIDV is providing a standby letter of Funds are for refinancing and general compensation, provided under a concession credit to the latest facility. corporate purposes. agreement with the government, to service For full allocations, see www.ifrasia.com. An ownership covenant requires Wynn interest payments on conventional and Resorts to own at least 51% of the borrower Islamic bonds raised to build the roads. As a and continue to be able to direct its result, investors are unlikely to worry about management and policies throughout the payment obligations but will be unhappy term of the facility. over the increased regulatory risks. MACAU The borrower is a wholly owned Local rating agency Marc had put toll subsidiary of Wynn Macau, which is about road concessionaires on a negative outlook 72%-owned by Nasdaq-listed Wynn Resorts. in August because of the uncertainties over SYNDICATED LOANS the government’s aim to reduce tolls.

› WYNN SIGNS A&E ON US$3.05BN LOAN › PERANGSANG PLANS SUKUK

Hong Kong-listed casino operator Wynn MALAYSIA KUMPULAN PERANGSANG SELANGOR has Macau on December 21 signed a self- established an Islamic MTN programme for arranged amendment and extension of a up to M$500m. US$3.05bn-equivalent facility last amended DEBT CAPITAL MARKETS in September 2015, the company said in a Top bookrunners of New Zealand syndicated loans stock exchange filing. › MALAYSIA FREEZES TOLL HIKES 1/1/18 – 31/12/18 Signing took place four months after Amount syndication closed in August because the Malaysia will freeze rate hikes on 21 toll Name Deals US$(m) % A&E required approval from the Macau roads across the country this year, which will 1 ANZ 6 2,110.7 52.8 government. cost the government M$994.3m (US$242.6m). 2 CBA 4 919.4 23.0 Bank of China Macau branch is the global According to a Ministry of Finance 3 NAB 3 798.3 20.0 coordinating lead arranger as well as the announcement released late December, the 4 ING 1 171.7 4.3 facility and security agent. freeze will apply to all classes of vehicles, Total 14 4,000.2 BOC Macau and 19 other banks joined the including private vehicles, motorcycles and * Based on market of syndication and market total deal, which comprises a term loan of about public buses. Proportional credit US$2.3bn and a revolving credit facility of The total cost will include estimated Source: Refinitiv data SDC Code: S13b

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COUNTRY REPORT PHILIPPINES

Under the programme, issuer Perangsang raised a total of Ps25.5bn from domestic The deadline for proposals is early Capital will issue sukuk under the bonds since October. January. murabahah principle via the tawarruq BDO Unibank and Philippine National The borrower last raised a US$1bn five- arrangement. The programme is unrated. Bank have also received board approval to year financing in June 2017, when 29 Maybank is principal adviser, lead raise a total of Ps120bn from bonds and lenders joined in general syndication. ANZ, arranger and lead manager for the commercial paper. Bank of China, Sumitomo Mitsui Banking programme. Proceeds will be used for Corp and Standard Chartered were the general corporate purposes, including the › METROBANK PRINTS NOV 2020 TAP AT 7% mandated lead arrangers, bookrunners and refinancing maturing debt. underwriters of the amortising loan, which METROPOLITAN BANK & TRUST has raised Ps18bn paid a top-level all-in pricing of 141bp based from a tap of November 2020 bonds at 7%, on an interest margin of 120bp over Libor EQUITY CAPITAL MARKETS payable quarterly, according to a filing on and a 3.5-year average life. the Philippine Stock Exchange. San Miguel owns a 68% stake in the › MR DIY PLANS AT LEAST US$500M IPO Metrobank increased the issue size from borrower, which is the country’s largest oil Ps5bn after it received strong demand. The refiner. Home improvement retailer MR DIY is new notes were issued at a premium on the planning an IPO of at least US$500m later back of the robust demand and strong credit. › METROBANK CARD INCREASES LOAN this year, a person with knowledge of the In October, Metrobank completed the transaction said. first bond issue under new central bank METROBANK CARD has increased its three-year Mr DIY is backed by private equity firm guidelines, selling Ps10bn of two-year notes term loan to US$165m from US$100m after Creador and has over 500 outlets in Malaysia at 7.15%. exercising a greenshoe option. as well as stores in Thailand, Brunei and Standard Chartered Bank was the sole Mandated lead arranger, bookrunner and Indonesia. The Malaysian assets are likely to arranger for the deal. underwriter ANZ has closed syndication be part of the Bursa Malaysia IPO. with 13 banks, including Sumitomo Mitsui CIMB, Credit Suisse, JP Morgan, Maybank and › VISTA LAND PRINTS TWO-PART BONDS Banking Corp, which joined as MLAB. RHB are close to the transaction, though a Signing took place December 19. formal mandate has not yet been awarded. VISTA LAND & LIFESCAPES has raised Ps10bn from Food operator QSR Brands and poultry an offering of dual-tranche bonds, according Top bookrunners of Philippines syndicated loans firm Leong Hup are also planning to a filing on the Philippine Stock Exchange. 1/1/18 – 31/12/18 respective IPOs of US$500m and USS$600m The property developer is issuing a Amount in the first quarter. Ps6.5bn five-year tranche at 8% and a Name Deals US$(m) % Ps3.5bn seven-year portion at 8.25%, off a 1 MUFG 2 206.3 19.2 Ps20bn shelf registration. 2 ANZ 2 142.5 13.3 Crisp has rated the bonds AAA. 3 SMFG 2 138.8 12.9 China Bank Capital Corp is the issue 4 Standard Chartered 2 116.3 10.8 PHILIPPINES manager and bookrunner. 5* ING 1 60.5 5.6 5* Land Bank of the Philippines 1 60.5 5.6 7* CTBC Financial 1 60.0 5.6 DEBT CAPITAL MARKETS SYNDICATED LOANS 7* Commerzbank 1 60.0 5.6 7* First Abu Dhabi Bank 1 60.0 5.6 › SECURITY BANK GETS BOARD NOD › PETRON SEEKS UP TO US$600M REFI 10* Mizuho 1 56.3 5.3 10* DBS 1 56.3 5.3 SECURITY BANK has received board approval to PETRON, majority owned by conglomerate 10* Bank of China 1 56.3 5.3 establish a peso bond programme of up to San Miguel, is tapping relationship Total 5 1,074.0 Ps50bn (US$944m), according to a filing on banks for a US$500m–$600m five-year * Based on market of syndication and market total the Philippine Stock Exchange. refinancing. Proportional credit Security Bank is the fifth Philippine bank Source: Refinitiv data SDC Code: S15b to plan to issue bonds since the central bank Top bookrunners of all Philippine peso bonds eased rules for debt issuance on August 9. 1/1/18 – 31/12/18 Philippines global equity and equity-related Bangko Sentral ng Pilipinas said Amount 1/1/18 – 31/12/18 it would allow banks to raise bonds Name Issues Ps(m) % Amount without prior authorisation, subject to 1 China Bk Capital Corp 14 52,525.0 19.1 Name Issues US$(m) % certain requirements regarding corporate 2 HSBC 5 47,220.5 17.2 1 UBS 4 1,004.1 21.1 governance, risk management, capital 3 Standard Chartered 8 45,839.3 16.7 2* Deutsche 3 665.1 14.0 adequacy and other similar issues. 4 BDO Unibank 11 41,650.0 15.1 2* Goldman Sachs 3 665.1 14.0 Although banks were not formally 5 BPI 10 34,718.7 12.6 2* JP Morgan 3 665.1 14.0 prevented from issuing bonds before, 6 Philippine National 4 11,559.5 4.2 5 Metropolitan B&T 2 604.7 12.7 permission was difficult to obtain and 7 ING 4 9,799.1 3.6 6 BPI 3 560.2 11.8 most banks preferred issuing long-term 8 Metropolitan B&T 4 8,333.3 3.0 7 Morgan Stanley 2 274.8 5.8 negotiable certificates of deposit to their 9 Deutsche 1 4,100.0 1.5 8 Citigroup 1 184.5 3.9 depositors – an easier option as this type 10 JP Morgan 2 3,696.5 1.3 9 Maybank 1 76.6 1.6 of paper is in high demand and enjoys tax Total 37 275,078.2 10 BDO Unibank 1 27.9 0.6 exemptions. *Market volume Total 12 4,752.6 Union Bank of the Philippines and Proportional credit Metropolitan Bank & Trust Company have Source: Refinitiv data SDC Code: AS10 Source: Refinitiv data

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The bullet deal pays an interest margin Top bookrunners of all Singapore dollar bonds Top bookrunners of all Singapore dollar bonds of 100bp over Libor and offered a top-level 1/1/18 – 31/12/18 (non-domestic) all-in pricing of 120bp. Amount 1/1/18 – 31/12/18 The borrower, a credit card issuer with Name Issues S$(m) % Amount more than 1.5m cards in use, is a fully 1 DBS 42 8,068.4 38.6 Name Issues S$(m) % owned unit of Manila-listed Metropolitan 2 OCBC 29 4,104.7 19.6 1 HSBC 3 900.0 32.1 Bank & Trust. 3 UOB 17 2,886.3 13.8 2 DBS 4 715.0 25.5 For full allocations, see www.ifrasia.com. 4 Standard Chartered 14 2,015.2 9.6 3 OCBC 4 390.0 13.9 5 HSBC 15 1,987.4 9.5 4 Standard Chartered 3 265.0 9.5 6 Credit Suisse 5 545.7 2.6 5 UOB 2 215.0 7.7 EQUITY CAPITAL MARKETS 7 CIMB Group 3 308.8 1.5 6 UBS 1 175.0 6.3 8 Maybank 2 280.0 1.3 7 Commerzbank 1 100.0 3.6 › PSE PROJECTS RISE IN SHARE SALES 9 UBS 1 175.0 0.8 8 Credit Suisse 1 40.0 1.4 10 Commerzbank 1 100.0 0.5 Total 8 2,800.0 The PHILIPPINE STOCK EXCHANGE has projected Total 65 20,931.2 *Market volume that share sales by companies this year *Market volume Proportional credit could fetch up to Ps200bn (US$3.6bn), Proportional credit Source: Refinitiv data SDC Code: AS14 compared with Ps188bn in 2018. Source: Refinitiv data SDC Code: AS12 The projected share sales include IPOs, Top bookrunners of all Singapore dollar follow-on offerings and rights issues. the maturity date from July 22 2018 to bonds (domestic) PSE said equity raising in 2018 was up January 22 2019. This was intended to give 1/1/18 – 31/12/18 13% from Ps167bn in 2017 but lower than breathing space to RHT Health Trust while Amount the original projection of Ps200bn. India’s Fortis Healthcare lined up financing Name Issues S$(m) % San Miguel Food and Beverage’s Ps34bn to buy RHT assets. 1 DBS 38 7,353.4 40.6 follow-on offer was the country’s largest However, on December 31, when the sale 2 OCBC 25 3,714.7 20.5 deal last year outside of rights offerings. was scheduled to be completed, RHT said 3 UOB 15 2,671.3 14.7 D.M. Wenceslao launched the only IPO Fortis had asked for more time as a result 4 Standard Chartered 11 1,750.2 9.7 of the year, raising Ps8.1bn. Metropolitan of delays in the Indian courts and in the 5 HSBC 12 1,087.4 6.0 Bank & Trust, Bank of the Philippine completion of the financing. This prompted 6 Credit Suisse 4 505.7 2.8 Islands, and Rizal Commercial Banking RHT to seek the new extension of the 7 CIMB Group 3 308.8 1.7 raised Ps60bn, Ps50bn and Ps15bn through maturity date. 8 Maybank 2 280.0 1.5 their respective rights offers. PetroEnergy Under the new consent solicitation, 9* SMFG 1 82.4 0.5 Resources, Robinsons Land and Integrated investors will get a consent fee of 1% in 9* Citigroup 1 82.4 0.5 Micro-Electronics also sold rights shares. principal amount. A bondholder meeting Total 57 18,131.2 Del Monte Philippines, AirAsia and Cal- will be held on January 21. *Market volume Comp Technology Philippines dropped DBS and UOB are reprising their roles as Proportional credit their share sale plans last year because of joint solicitation agents. Source: Refinitiv data SDC Code: AS15 weak market conditions. They are likely to relaunch the issues in 2019. incorporated AP International Resources (API) SYNDICATED LOANS are guarantors. APRIL INTERNATIONAL ENTERPRISE, a unit of API, is the borrower. Six other units › APRIL LOAN ATTRACTS 21 BANKS of API and eight units of APRIHL are also providing guarantees. SINGAPORE Asia Pacific Resources International has APRIHL owns companies that produce increased its self-arranged loan to US$835m pulp and paper and API is a pulp and paper from US$800m. trading company. DEBT CAPITAL MARKETS Twenty-one banks joined the facility, APRIL, part of privately owned industrial including ABN AMRO Singapore branch, First group RGE, has operations in Indonesia and › RHT HEALTH SEEKS EXTENSION Abu Dhabi Bank Singapore branch and MUFG China. Singapore branch for the mandated lead For full allocations, see www.ifrasia.com. RHT HEALTH TRUST is asking holders of its arranger and bookrunner title. S$120m (US$88m) 4.5% bonds to extend the The facility comprises a US$725m five- › AIRCASTLE DRAWS REVOLVER maturity by another six months. year portion (facility A) and a US$110m The Singapore-listed Indian provider of seven-year piece (facility B). US-listed aircraft leasing firm AIRCASTLE has healthcare services kicked off a consent The interest margins are 215bp and signed an increased US$250m three-year solicitation on December 28 to push the 240bp over Libor, respectively, for the five revolving credit facility after attracting current maturity of January 22 to July 22 at and seven-year tranches. The average lives eight lenders in general syndication. a redemption price of 100.45. are 3.125 and 4.125 years. The top-level DBS Bank was the sole mandated lead Investors are also asked to waive any fees were 80bp for facility A and 105bp for arranger of the deal, which was increased potential event of default and any non- facility B. from an initial size of US$225m. The facility compliance with certain provisions in the FAB is the facility and security agent, paid a top-level all-in pricing of 170bp based trust deed as well as any event of default while ABN AMRO is the documentation on an interest margin of 150bp over Libor. that may occur on cross-default events. agent. Signing was on December 24. Funds are for working capital and Bondholders approved a first six-month APRIL’s units Asia Pacific Resources general corporate purposes and to extension in April last year, pushing International Holdings (APRIHL) and Cayman- refinance a US$135m three-year revolver

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COUNTRY REPORT SOUTH KOREA

Top bookrunners of Singapore syndicated loans Singapore global equity and equity-related 2019s, S$100m of 4.2% 2019s, S$500m of 6% 1/1/18 – 31/12/18 1/1/18 – 31/12/18 perpetual capital securities and S$400m of Amount Amount 6% cumulative non-convertible non-voting Name Deals US$(m) % Name Issues US$(m) % perpetual class A preference shares. 1 DBS 21 4,292.0 13.7 1 DBS 18 1,197.2 23.2 2 OCBC 14 2,882.2 9.2 2 Goldman Sachs 3 666.3 12.9 3 UOB 10 2,608.1 8.3 3 Citigroup 7 528.6 10.2 4 Maybank 6 1,671.6 5.3 4 HSBC 5 430.2 8.3 5 SMFG 5 1,586.6 5.1 5 JP Morgan 3 318.6 6.2 SOUTH KOREA 6 Standard Chartered 7 1,582.2 5.0 6 Credit Suisse 3 278.5 5.4 7 Deutsche 6 1,247.7 4.0 7 OCBC 3 255.0 4.9 8 ANZ 8 1,094.1 3.5 8 UOB 10 206.8 4.0 DEBT CAPITAL MARKETS 9 ING 7 1,002.1 3.2 9 RHB 2 168.4 3.3 10 MUFG 6 967.4 3.1 10 BAML 2 156.9 3.0 › KOREA MIDLAND POWER PICKS THREE Total 48 31,376.0 Total 67 5,161.0 * Based on market of syndication and market total KOREA MIDLAND POWER, rated Aa2/AA/AA–, has Proportional credit Source: Refinitiv data assigned BNP Paribas, Citigroup and HSBC as Source: Refinitiv data SDC Code: S16b bookrunners for a US dollar bond. banks provided the refinancing. Fixed income meetings will kick off in signed in November 2016. DBS was also the The borrower, a real estate investment Singapore on Monday, then head to Hong sole MLAB of that financing, which paid trust listed on the Singapore stock Kong, London and Zurich afterwards. a higher margin of 210bp over Libor and exchange since 2010, mainly invests in Komipo operates six of the country’s offered a top-level early bird all-in pricing real estate used for logistics purposes in power generation facilities. The state- of 225bp. Asia Pacific. ARA-CWT Trust Management owned utility is a core subsidiary of Korea Aircastle owned and managed a fleet of (Cache) is the manager of the trust. Electric Power Corp. Both companies are 246 aircraft as of September 30. Japanese As of June 30, the REIT’s portfolio rated on par with the sovereign. conglomerate Marubeni owns 27.5% of the comprised 27 high-quality logistics Komipo has a US$300m 2.75% senior company. warehouse properties in Singapore, unsecured bond due February 2019, For full allocations, see www.ifrasia.com. Australia and China. Refinitiv data show. For full allocations, see www.ifrasia.com. The prospective deal is its first issue since › SIX JOIN S$265M CACHE LOGISTICS REFI January 2016, when it sold a four-times oversubscribed US$300m 5.5-year at US Six lenders have joined Singapore-listed RESTRUCTURING Treasuries plus 110bp. CACHE LOGISTICS TRUST’s S$265m (US$192m) unsecured refinancing in general › HYFLUX GETS EXTENSION › HANWHA TOTAL PETRO READIES BONDS syndication. DBS Bank was the sole mandated lead Financially strapped HYFLUX has obtained HANWHA TOTAL PETROCHEMICAL, rated Baa1/BBB arranger, bookrunner and underwriter approval from Malayan Banking to further (Moody’s/S&P), has mandated Citigroup, of the 5.5-year borrowing, which has a extend a deadline to sell its Tuaspring Credit Agricole and Standard Chartered Bank S$200m term loan and a S$65m revolving integrated power and water project. for a US dollar bond. credit facility. The new deadline is January 31, an A series of fixed income investor The deal, which offered an all-in pricing extension of about four weeks from the meetings in Asia and Europe will start on ranging from 138bp to 145bp based on an previous deadline of December 28. Monday for the proposed Reg S deal with a interest margin of 132bp over SOR, was pre- The Malaysian bank is the sole secured short to intermediate maturity. funded in October. creditor of the S$720m (US$526.7m) loan Funds from the loan will refinance used to build Tuaspring, which is owned › KNOC PREPARES SAMURAI OFFERING Singapore dollar-denominated facilities, and operated by Hyflux. as a result of which 84% of Cache Maybank requires Hyflux to execute KOREA NATIONAL OIL CORP, rated Aa2/AA/AA–, Logistics Trust’s total borrowings and a binding agreement with a successful has appointed Citigroup, Daiwa, Mitsubishi 88% of its property portfolio will become bidder or investor for the project. The UFJ Morgan Stanley and Mizuho for a Samurai unencumbered compared with 42% and latest deadline extension does not bond offering in early 2019. 37%, respectively, as of September 30, preclude Maybank’s right to terminate The state-owned oil and gas explorer last according to its press release on October 16. the collaboration agreement if the new issued a US$400m five-year Formosa in June The company’s weighted average debt deadline is breached. Under the agreement, 2018, which priced at three-month Libor maturity will increase to 4.1 years from Maybank agrees not to take any action on plus 87.5bp. 2.2 years as of September 30, with no the loan while it works with Hyflux on the refinancing requirements for Singapore sale process. dollar loan facilities until the second half of Hyflux is due to meet investors holding EQUITY CAPITAL MARKETS 2021. The company will also enjoy savings S$1.165bn of senior bonds and undated of 0.26% a year in interest costs. notes on January 18. › HYUNDAI OILBANK TO LIST IN 2019 Cache Logistics Trust was last in the The Singapore water treatment and market in October 2014 for a S$400m club power supplier is restructuring its debt and South Korea’s HYUNDAI OILBANK will list in loan comprising a S$185m four-year term has secured strategic equity investors in 2019 instead of last year as originally loan, a S$150m five-year term loan and the company. Its outstanding debt includes planned, affiliate Hyundai Heavy Industries a S$65m four-year revolving credit. Five S$100m of 4.25% 2018s, S$65m of 4.6% said on December 28.

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Top bookrunners of all South Korea Won bonds Top bookrunners of South Korea syndicated loans South Korea global equity and equity-related 1/1/18 – 31/12/18 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Amount Amount Amount Name Issues Won(m) % Name Deals US$(m) % Name Issues US$(m) % 1 KB Financial 530 28,890,074.0 17.3 1* Mizuho 2 300.0 26.9 1 Citigroup 7 1,982.0 12.9 2 NH Inv & Sec 317 21,527,630.0 12.9 1* MUFG 1 300.0 26.9 2 Goldman Sachs 5 1,916.8 12.5 3 Korea Investment 441 16,227,725.0 9.7 3 KDB 1 166.7 15.0 3 Korea Investment 22 1,555.5 10.1 4 Mirae Asset Daewoo 339 16,007,454.8 9.6 4 Hana Financial 1 148.0 13.3 4 NH Inv & Sec 21 1,418.5 9.2 5 Kyobo Life 250 12,071,993.0 7.2 5* Standard Chartered 1 100.0 9.0 5 Daishin Sec 18 1,314.7 8.5 6 Hana Financial 115 10,295,317.0 6.2 5* BAML 1 100.0 9.0 6 Credit Suisse 4 1,155.9 7.5 7 DB Financial Invest 142 6,843,200.0 4.1 Total 5 1,114.7 7 Mirae Asset Daewoo 19 970.4 6.3

8 SK Sec 117 6,587,000.0 3.9 * Based on market of syndication and market total 8 Shinhan Financial 25 896.9 5.8

9 Kiwoom Sec 88 6,191,473.0 3.7 Proportional credit 9 JP Morgan 1 609.2 4.0 10 Shinhan Financial 67 5,151,300.0 3.1 Source: Refinitiv data SDC Code: S17b 10 KB Financial 12 536.3 3.5 Total 3,774 167,062,058.1 Total 167 15,398.9 *Market volume to retail buyers. The remaining 20% will be Proportional credit allocated to the employee stock ownership Source: Refinitiv data SDC Code: C1Q Source: Refinitiv data SDC Code: AS22 plan. Founded in 2007, Air Busan posted a net offered margins of 150bp to 270bp tied to IFR reported in October that Hyundai profit of W28.5bn on sales of W561.7bn the company’s total debt-to-Ebitda ratio. Oilbank, South Korea’s smallest refiner by in 2017. It intends to use the proceeds to The A&E followed a sale-and-purchase capacity, was likely to push back its IPO to improve its fleet and build hangars and agreement struck last May between South March 2019. training facilities. It also aims to add more Korean PE firm MBK Partners and three The refiner has passed a preliminary flights for long-range routes. founders of Taiwan-based KHL Capital and IPO review by the Korean Exchange and Mirae Asset Daewoo and NH Investment & core investment companies of Hon Tai is awaiting approval from the Financial Securities are lead managers. Group for about NT$51.5bn. Services Commission. Taiwan’s regulators approved the IFR reported earlier that Hyundai Oilbank transaction in December, finally leading to planned to raise at least US$1bn from the an exit for MBK, which had failed on three IPO. The size of the deal could now be previous attempts to offload its 60% stake 20%–30% less because of market volatility, TAIWAN in CNS. according to a person close to the deal. For full allocations, see www.ifrasia.com. The company has a 390,000-barrels-per- day refinery in Daesan, southwest of Seoul. SYNDICATED LOANS › CHIAHUI POWER CLOSES NT$10.5BN PF Hyundai Robotics, the holding company of Hyundai Heavy Industries Group, holds a › CNS CLOSES A&E FOR CHANGE OF CONTROL CHIAHUI POWER has closed a NT$10.5bn 20- 91% stake in Hyundai Oilbank. year project financing after attracting nine Hana Daetoo Securities and NH Investment Taiwan’s largest cable TV operator, CHINA banks in general syndication. & Securities are leading the float. The NETWORK SYSTEMS, has closed an amendment Bank of Taiwan was the sole mandated other joint lead managers are Bank of and extension on its NT$46.742bn lead arranger and bookrunner of the deal, America Merrill Lynch, Citigroup, Shinhan and (US$1.5bn) seven-year loan signed in 2014 which has a NT$5bn term loan tranche MiraeAsset Daewoo Securities. because of a planned change of control. A, a NT$5bn revolving credit tranche B, a Citigroup was the coordinator of the A&E NT$5bn guarantee tranche C and a NT$1bn › AIR BUSAN IPO PRICES AT BOTTOM exercise, which involved a reduction in the guarantee tranche D. The borrower can interest margin and a lengthening of the only draw a maximum amount of NT$5.5bn Low-cost carrier AIR BUSAN has raised W18.75bn tenor. The new margin ranges from 75bp from tranches B, C and D. (US$16.7m) from its IPO after pricing the deal to 205bp over Taibor tied to the company’s Tranches A and B pay an interest margin at the bottom of an indicative range. net debt-to-Ebitda ratio, with a pre-tax of 65bp over three or six-month Taibor, The shares were down 45% to close interest rate floor set at 1.7%. The new with a pre-tax interest rate floor set at 1.7%. at W5,220 on their trading debut on average life is 5.8 years from the closing Tranches C and D offer guarantee fees of December 27. date of the proposed acquisition. 50bp and 45bp, respectively. The subsidiary of Asiana Airlines offered The deal size is now NT$40.66bn Banks were offered a top-level upfront 5.21m shares (40% primary/60% secondary). because of loan repayments. The facility fee of 15bp. The deal was priced at W3,600 per share, has a NT$33.158bn tranche A, a NT$4.5bn Funds are to back the expansion of the the low point of the indicative price range tranche B and a NT$3bn tranche C. borrower’s power plant in Chiayi. of W3,600–W4,000. The final price gives the Lenders were offered a 32.5bp fee for the Asia Cement, part of the Far Eastern company a market capitalisation of W187.4bn. A&E exercise. Group, holds a 59% of stake in the Nine out of 10 of the shares in the The original loan, signed in December borrower, while Japan’s J-Power owns 40%. institutional portion were sold to local 2014, had 14 lenders, including seven For full allocations, see www.ifrasia.com. buyers and the rest to overseas investors. mandated lead arrangers and bookrunners. Long-only investors took about 60% of That deal comprised a NT$39.2bn › BES ENGINEERING SIGNS NT$3.7BN LOAN the institutional tranche, a person with amortising term loan tranche A, an up to knowledge of the deal told IFR. US$147m bullet term loan tranche B, an up Engineering and construction contractor Overall, about 60% of the offering was to NT$4.5bn bullet term loan tranche B1 BES ENGINEERING has signed a NT$3.7bn three- allocated to institutional investors and 20% and a NT$3bn revolving credit tranche C. It year loan.

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COUNTRY REPORT TAIWAN

Sole mandated lead arranger and › ORSTED MANDATES TRIO FOR LOAN Bank of Taiwan was the original bookrunner Bank of Taiwan took NT$3bn, mandated lead arranger and bookrunner while Bank Taiwan Life Insurance and Agricultural Danish wind energy developer ORSTED has of the deal, and Hua Nan Commercial Bank Bank of Taiwan joined as participants with mandated three banks for a NT$25bn five- and Taiwan Cooperative Bank joined with NT$500m and NT$200m, respectively. year loan to back projects in Taiwan. the same title. The deal pays an interest margin of 125bp Bank of Taiwan, BNP Paribas and Cathay The deal has a NT$3.6bn tranche A, over the two-year post office savings rate, United Bank are the mandated lead arrangers a US$120m tranche B and a NT$2.16bn with a pre-tax interest rate floor set at 1.95%. and bookrunners of the transaction, which guarantee tranche C. The three tranches Banks were offered a top-level upfront is expected to be launched in late January. cannot exceed a combined amount of fee of 5bp. Signing was on December 26. A Taiwan-based unit of Orsted is the NT$3.6bn. Funds are to refinance the NT$6.4bn borrower, while the parent company is the The interest margin on the NT$3.6bn refinancing the Taiwan-listed borrower guarantor. portion is 55bp over Taibor, while the US raised in November 2015. First Commercial On June 22, Orsted was awarded 920MW dollar portion has a margin of 85bp over Bank, International Bills Finance, Mega worth of capacity for offshore projects Libor. The borrower will pay any excess International Commercial Bank and Taiwan in Taiwan’s Changhua region. Subject to interest rate beyond a 35bp difference Cooperative Bank were the MLABs of the its final investment decision, Orsted is between TAIFX and Libor. Tranche C has a 2015 transaction, which paid a margin of planning to begin construction in 2023 guarantee fee of 55bp. 158bp over the two-year post office savings with commission plans by 2025. Banks were offered a top-level upfront rate. Separately, German developer Wpd is fee of 10bp. Signing was on December 26. likely to increase its 18-year project financing Funds are to refinance a same-sized › FOROYAL DEVELOPMENT RAISES LOAN backing the first phase of an offshore five-year loan the borrower raised in wind project in Taiwan’s Yunlin area to December 2014. BoT also led that deal, Property developer FOROYAL DEVELOPMENT has NT$80bn after it sent out a RFP for a facility which comprised a NT$1.5bn tranche A and raised a NT$12bn five-year construction with a NT$64.7bn deal size last July. Banks a US$50m tranche B. The margin on the NT loan. were invited to join as underwriters with dollar portion was 63bp over Taibor, while Bank of Taiwan and Mega International commitments of NT$7bn or more. Sumitomo the US dollar portion offered a margin Commercial Bank were the mandated Mitsui Banking Corp is the financial adviser. of 120bp over Libor. The borrower had lead arrangers and bookrunners of the Wpd is expected to raise another PF of to pay any excess interest rate beyond a transaction, which has a NT$3.38bn tranche about NT$55bn to back the second phase 30bp difference between TAIFX and Libor, A, a NT$4.95bn tranche B and a NT$3.67bn of another offshore wind project in the according to LPC data. tranche C. Guanyin area this year. The borrower is mainly engaged in the Tranches A and C pay an interest margin Last August, Formosa II OWF sent out a RFP development and supply of industrial of 85bp over the one-year post office for a NT$60bn PF to back an offshore wind materials. savings rate, while tranche B pays a margin project in the Miaoli area. Societe Generale is For full allocations, see www.ifrasia.com. of 98bp over the same benchmark. the coordinator of the deal, which is expected The project and the land will form to have a tenor ranging from 16 to 18 years. › FROCH ENTERPRISE SIGNS REFI the security package, and the borrower’s The projects are part of Taiwan’s target chairman and six shareholders are the to install 5.5GW of offshore wind power Stainless steel tube maker FROCH ENTERPRISE guarantors. Signing was on December 12. capacity by 2025. has signed a NT$4.5bn-equivalent seven- The borrower last raised a same-sized year refinancing. five-year loan in November 2014. BoT and › WAH LEE INDUSTRIAL INCREASES LOAN Land Bank of Taiwan was the mandated Mega were also the MLABs on that deal, lead arranger and bookrunner of the which offered a margin ranging from WAH LEE INDUSTRIAL has increased its five- transaction, which has a NT$2.5bn term 102.5bp to 112bp over the one-year post year loan to NT$3.6bn-equivalent from a loan tranche A, a NT$2bn revolving credit office savings rate. NT$3bn-equivalent target after attracting tranche B, a NT$2bn revolver tranche For full allocations, see www.ifrasia.com. 10 banks in general syndication. C and a NT$2bn revolver tranche D. Tranches B, C and D cannot exceed a Top bookrunners of all Taiwan dollar bonds Top bookrunners of Taiwan syndicated loans 1/1/18 – 31/12/18 1/1/18 – 31/12/18 Taiwan global equity and equity-related Amount Amount 1/1/18 – 31/12/18 Name Issues NT$(m) % Name Deals US$(m) % Amount 1 Yuanta Financial 25 93,583.3 28.0 1 Mega Financial 53 5,839.9 16.8 Name Issues US$(m) % 2 KGI Financial 21 45,225.0 13.5 2 Taiwan Financial 55 5,690.3 16.3 1 JP Morgan 2 582.9 17.3 3 Masterlink Sec 14 36,958.3 11.1 3 Fubon Financial 27 3,012.6 8.7 2 Morgan Stanley 3 444.4 13.2 4 Capital Sec 10 35,575.0 10.6 4 Taiwan Cooperative 41 2,752.2 7.9 3 BNP Paribas 2 423.6 12.6 5 Taiwan Cooperative 10 16,400.0 4.9 5 Land Bank of Taiwan 40 2,298.0 6.6 4 Yuanta Financial 9 280.2 8.3 6 Fubon Financial 7 15,950.0 4.8 6 CTBC Financial 26 1,932.0 5.6 5 Taishin Financial 14 253.2 7.5 7 Hua Nan Financial 3 13,400.0 4.0 7 Taishin International 20 1,609.8 4.6 6 KGI Financial 18 210.3 6.2 8 Mega Financial 4 12,766.7 3.8 8 Chang Hwa Commercial 23 1,507.2 4.3 7 BAML 1 182.9 5.4 9 Taiwan Financial 1 10,000.0 3.0 9 Hua Nan Financial 20 1,121.0 3.2 8 Grand Fortune Sec 10 132.3 3.9 10 E Sun Financial 3 9,400.0 2.8 10 First Financial 23 932.4 2.7 9 Fubon Financial 13 122.6 3.6 Total 95 334,580.0 Total 177 34,839.6 10 Sinopac Holdings 13 108.3 3.2

*Market volume * Based on market of syndication and market total Total 138 3,366.9

Proportional credit Proportional credit Source: Refinitiv data SDC Code: AS11 Source: Refinitiv data SDC Code: S19b Source: Refinitiv data

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combined amount of NT$2bn. Tranches C tranche B. The interest margins are 90bp Bangkok Bank, CIMB Thailand, Kasikornbank, and D can be drawn in NT or US dollars. and 99bp over Libor for tranches A and Krungthai Bank and Siam Commercial Bank will The interest margin on the NT dollar B, respectively. The borrower will pay be joint lead managers. portions ranges from 120bp to 160bp any excess interest rate beyond a 40bp Subscription will be on January 28-30. over Taibor, while the US dollar portions difference between TAIFX and Libor. The bonds are rated BBB+ by Tris. Proceeds have a margin of 195bp over Libor. The Wistron’s previous AR factoring will be used to refinance debt and meet borrower will pay any excess interest rate borrowing was in June 2017 when it signed working capital needs. beyond a 30bp difference between TAIFX a US$700m three-year loan. Mega was the and Libor. sole MLAB of the deal, which pays a margin › TRUE MOVE GOES DOUBLE Banks were offered a top-level upfront of 90bp over Libor. Accounts receivable fee of 16bp. Signing was on December 11. from Lenovo Group back that financing. TRUE MOVE H UNIVERSAL COMMUNICATION will The borrower last tapped the loan For full allocations, see www.ifrasia.com. launch bookbuilding this week on two market with a NT$4bn-equivalent seven- tranches of bonds in tenors of two and five year loan available in NT or US dollars in years. April 2013. LBoT also led that deal. The The two-year tranche will be offered in margin on the NT dollar portion ranged a guidance range of 3.60%-3.80% and the from 120bp to 150bp over the secondary CP THAILAND five-year tranche will be marketed at 5.00%- rate, while the US dollar portions offered a 5.15%. margin of 165bp over Libor. The borrower Bangkok Bank, Kasikornbank, Krungthai had to pay any excess interest rate beyond DEBT CAPITAL MARKETS Bank and Siam Commercial Bank are joint a 30bp difference between TAIFX and Libor. lead managers and bookrunners on the For full allocations, see www.ifrasia.com. › CP ALL PLANS JUMBO BOND institutional investor tranche as well as joint lead managers with CIMB Thailand on › WISTRON SIGNS US$610M FACILITY CP ALL plans to kick off the new year by the high-net-worth investor tranche. marketing up to Bt15bn (US$462m) of Subscription will be held January 21-23. Electronics manufacturer WISTRON has bonds. Proceeds from the bonds, rated BBB+ by signed a US$610m 364-day accounts The Thai convenience store owner will Tris, will be used for debt refinancing and receivable factoring facility. offer tenors of three, eight, 10 and 12 working capital needs. Mega International Commercial Bank was years to institutional and high-net-worth The Thai issuer, owned by True, is a the sole mandated lead arranger and investors this month. Bookbuilding is slated mobile phone operator. bookrunner of the transaction, which for January 9 with a three-day subscription has a US$610m tranche A for Wistron period to start on January 15. › AP THAI PRINTS TWO-TRANCHE BONDS and a US$610m tranche B for British It is targeting a minimum size of Bt10bn Virgin Islands-incorporated AII HOLDING. with a Bt5bn greenshoe. AP THAILAND raised Bt2bn at end-December The borrower can only draw a maximum Bangkok Bank, Bank of Ayudhya, after pricing two and three-year bonds at amount of US$610m combined from the Kasikornbank, Krungthai Bank and Siam 2.78% and 3.13%, respectively. two portions. Commercial Bank are joint lead managers and The two-year tranche was marketed at a The deal pays an interest margin of 90bp underwriters. The bond is rated A by Tris, price guidance of 2.70%-2.80%, while that for over Libor. Funds are for working capital a notch below the issuer’s corporate rating the three-year tranche was at 2.97%-3.15%. purposes. Signing was slated for December of A+. Settlement was on December 25. 24. Proceeds will be used to refinance debt UOB Thailand was sole lead manager. The In May, Wistron raised a US$800m and meet working capital needs. CP All has Thai property developer is rated A– by Tris. three-year revolving credit facility. Mega about Bt11bn of bonds due to mature in and Sumitomo Mitsui Banking Corp were March. › BANGCHAK INCREASES BOND the MLABs on that deal, which comprises a US$520m tranche A and a US$280m › TRUE PLANS PUBLIC BOND BANGCHAK increased the size of its 10-year bond to Bt7bn as investors piled into Top bookrunners of all Thai baht bonds Thai telecoms operator TRUE will offer up to 1/1/18 – 31/12/18 Bt12.246bn of three-year bonds to retail and Thailand global equity and equity-related Amount institutional investors this month. 1/1/18 – 31/12/18 Name Issues Bt(m) % True has set a guidance range of 4.00%– Amount 1 Kasikornbank 35 100,311.2 16.0 4.15% with final pricing to be fixed this Name Issues US$(m) % 2 Siam Commercial 25 60,961.2 9.7 week. 1 Credit Suisse 3 1,882.5 34.0 3 Krung Thai 26 54,093.0 8.6 2 Phatra Sec 7 856.5 15.5 4 Bangkok Bank 26 52,004.7 8.3 Top bookrunners of Thailand syndicated loans 3 BAML 3 522.6 9.4 5 MUFG 12 25,943.2 4.1 1/1/18 – 31/12/18 4 Morgan Stanley 3 428.9 7.8 6 CIMB Group 13 25,783.0 4.1 Amount 5 JP Morgan 2 353.3 6.4 7 Thanachart Capital 7 24,074.2 3.8 Name Deals US$(m) % 6 Bualuang Sec 4 301.5 5.5 8 Government Savings Bank 5 16,260.0 2.6 1* CIMB Group 1 240.0 48.2 7* Krung Thai 1 272.6 4.9 9 Phatra Sec 9 15,469.1 2.5 1* Maybank 1 240.0 48.2 7* Finansa Sec 1 272.6 4.9 10 UOB 11 13,678.3 2.2 3 CTBC Financial 1 18.0 3.6 9 Kasikornbank 2 141.2 2.6 Total 87 627,084.9 Total 2 498.0 10 Bangkok Bank 1 117.0 2.1

*Market volume * Based on market of syndication and market total Total 28 5,533.1

Proportional credit Proportional credit Source: Refinitiv data SDC Code: AS7 Source: Refinitiv data SDC Code: S18b Source: Refinitiv data

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COUNTRY REPORT VIETNAM

Thailand’s last large transaction of 2018. settled on December 19. Krungthai Bank, this year, people with knowledge of the The Thai oil refiner and fuel retailer Phatra Securities, Siam Commercial Bank and transaction said. priced the notes at par to yield 4.04%, UOB Thailand were joint lead managers and The company is in the process of hiring with a spread of around 136bp over Thai underwriters. banks for the transaction. The shares government bonds. will be listed on the Stock Exchange of It had initially planned to raise a › TICON PRINTS TRIPLE-TRANCHER Thailand. maximum of Bt4bn, but it increased the Hong Kong-listed KLN is backed by fundraising to accommodate investor TICON FREEHOLD AND LEASEHOLD REIT will raise Malaysian businessman Robert Kuok. demand. Proceeds will be used for debt Bt1.9bn from an offering of bonds in tenors Its Thai businesses include Kerry refinancing as well as working capital and of two to 10 years. Express, one of the largest express delivery business expansion needs. A Bt300m two-year tranche will pay operators in the country, and Kerry Siam A three-day subscription for institutional 2.78%, a Bt1bn three-year tranche 3.14% Seaport, a deep sea port. It is not clear at and high-net-worth investors ended on and a Bt600m 10-year piece 4.19%. The this stage which assets will be part of the December 19. yields fell within respective guidance IPO. Bangkok Bank, Kasikornbank and Phatra ranges of 2.68%-2.82%, 3.00%-3.14% and At the time of writing, Kerry Logistics Securities were joint lead managers for the 4.11%-4.25%. had not responded to an email seeking deal, rated A by Tris. A two-day subscription ended December comment on the IPO. Bangchak, also rated A by Tris, is owned 18 via joint lead managers Bank of Ayudhya by state-backed Vayupak Fund 1, the Social and UOB Thailand. Settlement was made a Security Office and the Ministry of Finance. It day later. raised Bt4bn in August in tenors of two, five The Thai property trust is rated A by Tris. and seven years, breaking an absence of more VIETNAM than three years from the bond market. › TLT DOES SHORT TENORS

› BOONTHAVORN SELLS GUARANTEED NOTES TOYOTA LEASING THAILAND has raised Bt6bn in an SYNDICATED LOANS offering of bonds in tenors of one to three BOONTHAVORN CERAMIC 2000 (BTV) has printed years. › HOA PHAT SIGNS US$200M CLUB Bt2bn of five-year guaranteed bonds priced A Bt3bn one-year one-month tranche will at par to yield 3.56%. pay 2.08%, a Bt1.1bn two-year two-month Vietnam’s top steelmaker HOA PHAT GROUP has The notes were wrapped with credit tranche will pay 2.31% and a Bt1.9bn three- signed a US$200m five-year financing with enhancements extended in equal measure year tranche will pay 2.51%. five lenders. by Credit Guarantee and Investment Bangkok Bank, Bank of Ayudhya, Kasikornbank BNP Paribas, Bank of China, HSBC, ICBC and Facility and Kasikornbank. CGIF and and Krungthai Bank were joint lead managers. Maybank are the mandated lead arrangers Kasikornbank, which was also the sole TLT and its bonds are rated AAA of the club deal, which will be used for lead manager, will provide irrevocable by Tris. The bonds are guaranteed by general corporate purposes. BNP Paribas is and unconditional guarantees against the parent company Toyota Motor Finance the coordinator. principal amount and interest payments. Netherlands, whose ultimate parent In March 2017, Hoa Phat signed a D10trn The Thai ceramic tile supplier is the company is Japan’s Toyota Motor. (US$439m) seven-year loan from VietinBank second Thai company to be supported Settlement was on December 18. to help finance a steel complex project by the Asian Development Bank’s CGIF. in the central province of Quang Ngai, In February last year, Siamgas and according to a company announcement. Petrochemicals became the first Thai issuer EQUITY CAPITAL MARKETS Listed on the Hanoi Stock Exchange to sell bonds covered by CGIF with a Bt2bn in 2007, Hoa Phat is engaged in trading, 3.03% note due 2023. › KERRY LOGISTICS PLANS THAI ASSETS IPO exporting and importing of iron and steel, Settlement was made on December 17. and also has businesses in real estate and KERRY LOGISTICS NETWORK is planning a animal feed. › GOLDEN LANDS BONDS AT 3.64% US$100m–$300m IPO of Thai assets later For full allocations, see www.ifrasia.com.

GOLDEN LAND PROPERTY DEVELOPMENT has printed Vietnam global equity and equity-related › VIETNAMOBILE TELECOM CLOSES CLUB Bt3bn three-year unrated bonds priced 1/1/18 – 31/12/18 at par to yield 3.64%. This was the Thai Amount Mobile communications provider real estate developer’s second issue in Name Issues US$(m) % VIETNAMOBILE TELECOMMUNICATIONS has obtained 2018, after it sold Bt2bn five-year notes in 1 Deutsche 4 761.8 22.9 a US$170m 364-day club facility. February at 3.35%. 2 Credit Suisse 5 684.0 20.6 Citigroup, Credit Agricole, HSBC and OCBC The latest privately placed transaction 3 Morgan Stanley 2 533.1 16.0 were the mandated lead arrangers of the 4 VCSC 2 413.0 12.4 bullet deal, which is for general corporate Top bookrunners of all Vietnamese dong bonds 5 Citigroup 2 291.4 8.8 and refinancing purposes. 1/1/18 – 31/12/18 6* HSBC 1 225.3 6.8 The deal is guaranteed by CK Hutchison Amount 6* Maybank 1 225.3 6.8 Holdings, which owns Hutchison Asia Name Issues Vnd(m) % 8 Ho Chi Minh Securities Corp 1 103.2 3.1 Telecom, one of the borrower’s major 1 Standard Chartered 1 660,000.0 100.0 9 CTBC Financial 1 4.6 0.1 shareholders. The other major shareholder Total 1 660,000.0 10 Saigon Sec 1 2.3 0.1 is Hanoi Telecom. *Market volume Total 10 3,324.1 Launched in 2009, the borrower is a fast- Proportional credit growing mobile communications operator Source: Refinitiv data SDC Code: AS25 Source: Refinitiv data in Vietnam.

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ASIAN CURRENCY BOND ISSUANCE Issuer Currency Amount Maturity Pay date Coupon Issue price Product Leads Apro Financial W 20bn 1y 02/01/19 100 Senior Bonds IBK Sec Aviation Ind Corp Of China Rmb 3bn 5y 03/01/19 100 Medium-Term Nts China Citic Bank, ICBC C&D Real Estate Corp Rmb 1bn 3y 03/01/19 100 Medium-Term Nts CCB, CMBC CGN Wind Power Rmb 1bn 07/01/19 100 Medium-Term Nts CDB, ICBC CJ Logistics Corp W 200bn 30y 28/12/18 100 Flt Sub Bds NH Investment & Sec Fujian Zhanglong Group Rmb 1bn 1y 03/01/19 100 CP CDB, Industrial Bank Fuzhou Commun Constr Invest Rmb 500m 3y 07/01/19 100 Medium-Term Nts CMB Guangzhou Panyu Haiyi Property Rmb 650m 2y 29/12/18 7.2 100 Unsecured Bond Southwest Sec Hyosung Capital W 20bn 3y 28/12/18 100 Senior Bonds DB Financial Investment W 10bn 2y 28/12/18 100 Senior Bonds DB Financial Investment Hyundai Veritas Invest IV W 1.257bn 1y 27/12/18 100 Senior Bonds IBK Sec W 7.9bn 1y 27/12/18 100 Senior Bonds IBK Sec Jinke Ppty Grp Rmb 600m 1y 04/01/19 100 CP CMBC, Guotong Sec Kewoom Capital W 9.602bn 1y 31/12/18 96.02 Senior Bonds Hanyang Sec W 10bn 3y 03/01/19 100 Senior Bonds Mirae Asset Daewoo Koramco Reits Mgmt & Tr W 30bn 2y 28/12/18 100 Senior Bonds KBI Sec Kotak Mahindra Prime Rs 490.189m 2y 28/12/18 7.5 98.038 Secured Debs Axis LinAn Urban Constr Dvlp Rmb 500m 3y 07/01/19 100 Medium-Term Nts Bank of Beijing Lotte Card W 100bn 1y 28/12/18 100 Senior Bonds Korea Asset Investment Sec W 20bn 2y 28/12/18 100 Senior Bonds Korea Asset Investment Sec Ningbo Econ & Technological Rmb 500m 3y 04/01/19 100 Medium-Term Nts Bank of Ningbo, China Zheshang Bank Overseas Chinese Town Entrps Rmb 2bn 03/01/19 100 Medium-Term Nts China Everbright Bank, Ping An Bank TJ Housing Group Rmb 600m 2y 02/01/19 6.5 100 Unsecured Bond Ping An Sec Xincheng Holding Group Rmb 500m 2y 03/01/19 100 Medium-Term Nts CMB, Bank of China Yongcheng Coal & Electricity Rmb 2bn 1y 03/01/19 100 CP China Citic Bank, CSC Financial Zibo City Ast Op Rmb 1bn 29/12/18 100 Medium-Term Nts BoCom, Haitong Sec Source: IFR Asia

LAST WEEK’S ECM DEALS Stock Country Date Amount Price Deal type Bookrunner(s) JK Cement India 24/12/18 Rs5bn Rs695.80 Follow-on (Primary) Edelweiss Shanghai Junshi Biosciences China 14/12/18 HK$3.08bn HK$19.38 IPO (Primary) CICC Wanka Online China 14/12/18 HK$272m HK$3.56 IPO (Primary) CICC, ICBC International, Macquarie Zhejiang Cangnan Instrument Group China 27/12/18 HK$268.6m HK$15.80 IPO (Primary) ABC International Weigang Environment Technology China 24/12/18 HK$275m HK$0.88 IPO (Primary) BOC International Source: IFR Asia

MERRILL LYNCH ASIAN DOLLAR INDEX Index Description Index level 1 week total return 1 month total return 3 months total return OAS ADIG Asian-dollar high-grade index 392.415 0.573 1.850 1.857 180 ADHY Asian-dollar high-yield index 593.368 –0.093 1.070 –1.428 731 AGIG Asian-dollar government high-grade index 364.676 0.538 2.157 1.975 159 AGHY Asian-dollar government high-yield index 708.286 0.078 1.206 –1.938 508 ACIG Asian-dollar corporate high-grade index 418.274 0.586 1.748 1.814 189 ACHY Asian-dollar corporate high-yield index 486.538 –0.126 1.043 –1.322 774 Source: Merrill Lynch

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