IFRASIA INTERNATIONAL FINANCING REVIEW ASIA MAY 5 2018 ISSUE 1039 www.ifrasia.com Xiaomi lines up blockbuster HK IPO under new dual-class share rules Shandong Iron & Steel files to sell perps convertible into equity Casino operator plans Cambodia’s first offshore bond offering PLUS: MONTHLY LEAGUE TABLES EQUITIES EQUITIES BONDS PEOPLE & MARKETS Foxconn’s mainland Indian real estate Lippo Karawaci UBS becomes first unit mulls selling firms look to sell faces cash crunch foreign bank to part of jumbo IPO shares as sector’s after breaching apply for majority to strategic buyers outlook improves bond covenant control of China JV 07 08 08 12 REGISTER TODAY GREEN FINANCING ROUNDTABLE TUESDAY MAY 22 2018 | THOMSON REUTERS BUILDING, CANARY WHARF, LONDON Sponsored by: Green bond issuance broke through the US$150bn mark in 2017, a 78% increase over the total recorded in 2016, and there are hopes that it will double again this year. But is it on track to reach the US$1trn mark targeted by Christina Figueres? This timely Roundtable will bring together a panel of senior market participants to assess the current state of the market, examine the challenges and opportunities and provide an outlook for the rest of the year and beyond. The Roundtable is free to attend, and you can register at http://financial-risk-solutions. thomsonreuters.info/GreenFinancingRoundtable Upfront OPINION INTERNATIONAL FINANCING REVIEW ASIA Leap of faith to convince investors of its growth plans and list at a reasonable valuation. If it fails, Hong Kong’s leap into the iaomi’s giant IPO is widely seen as a turning point for unknown will be looking more like a step backwards. Hong Kong, and for China’s technology sector. So far, X it’s looking more like a leap of faith. Years ago, when a certain global bank looked to buy credit On the right track insurance for a loan it had agreed to China’s Xiaomi, the insurer – quite reasonably – asked to see the company’s he Asian Development Bank is cosying up to the lNANCIALSû4HATSûWHENûTHEûDEALûHITûAûSNAGûTHEREûWERENTûANY private sector, if last week’s annual meetings are 8IAOMISû)0/ûlLINGûLASTûWEEKûLIFTEDûTHEûLIDûONûONEûOFûTHEû 4 anything to go by. In capital markets terms, that is COUNTRYSûBEST KNOWNûTECHNOLOGYûBRANDSûFORûTHEûlRSTûTIMEû long overdue. With access to the historical results, creditors no longer 4HEûPRIVATEûSECTORûFEATUREDûUNUSUALLYûPROMINENTLYûONûTHEû need to take the smartphone maker on blind trust. agenda in Manila. Executives from Veolia Japan, McKinsey, For equity investors and the Hong Kong stock market, Unilever and China’s Ant Financial, among others, however, the deal is a step into the unknown. addressed delegates on topics ranging from gender diversity 8IAOMIûWILLûBEûTHEûlRSTûCOMPANYûWITHûAûDUAL CLASSû TOûlNANCIALûTECHNOLOGY SHAREHOLDINGûSTRUCTUREûTOûmOATûINû(ONGû+ONG ûUSINGûNEWû As well as a welcome departure from the usual listing rules designed to attract “innovative” issuers to the PONTIlCATINGûBETWEENûMULTILATERALûBANKERSûANDûlNANCEû city’s exchange. ministers, the discussions offer real hope for greater A successful debut would be early vindication of Hong engagement between the public and private sectors on IMPORTANTûlNANCINGûINITIATIVES 4HEûGROWTHûOFû!SIASûINSTITUTIONALûINVESTORûBASEûWASûAû For equity investors and the recurring theme throughout the meetings, making it quite clear that the drive to leverage private-sector funds into Hong Kong stock market the infrastructure development through the capital markets is deal is a step into the unknown. gaining ground in the multilateral sector. Novel discussions around portfolio-based investments alongside the IFC, risk-sharing agreements with private +ONGSû)0/ûREFORMS ûANDûAûVOTEûOFûCONlDENCEûINûTHEûCITYSû insurers and co-investments with dedicated green funds are long-term future as a conduit for Chinese capital. all a step in the right direction. But this is no slam dunk. On the private side, demand for long-term, sustainable Xiaomi is said to be targeting a high valuation for the investments is certainly rising, but most of it is from listing, with discussions starting at US$70bn and a P/E target outside the region. Major hurdles remain in place in Asia’s of more than 80 times 2017 earnings (compared to less local markets, not least regulations that restrict domestic THANûNINEûFORû3AMSUNGûANDûûFORû!PPLE û4OûADDûAûTWIST û institutional investors to the most vanilla of investments. its founder has pledged to cap the margin it makes from its Integration and standardisation is lacking across the hardware devices at 5%. REGION ûANDûEFFORTSûTOûMOVEûINFRASTRUCTUREûlNANCINGûBEYONDû Recent IPOs from the technology sector are also giving the banking sector are proving frustrating. investors pause for thought. ZhongAn Online P&C 4HEû!$"ûANDûITSûPEERSûCANûHELPûCHANGEûTHAT ûBUTûTHEYûWILLû )NSURANCE û4ENCENTSûE BOOKûBUSINESSû#HINAû,ITERATUREûANDû need to work with both public policymakers and private gaming hardware maker Razer all popped when they went sector investors. In that regard, last week’s line-up of public towards the end of 2017, but have given up most of speakers is cause for celebration. those gains. Ant Financial’s CEO, Eric Jing, likened the path towards ZhongAn and Razer are well below their IPO price. China FULLûlNANCIALûINCLUSIONûTOûAû KILOMETREûJOURNEYû4HEû ,ITERATUREûISûSTILLûûINûTHEûMONEY ûHAVINGûALMOSTûDOUBLEDû progress made so far, he said, through the introduction of on its debut. NEWûlNANCIALûTECHNOLOGIESûANDûGREATERûCONNECTIVITY ûHASû 0ING!Nû(EALTHCAREûlNISHEDûONLYûmATûTOûITSû)0/ûPRICEûONû moved Asia only about 100 metres down the track. Friday despite a wildly oversubscribed public offering. He may just as well have been talking about Asia’s capital 8IAOMIûCANûREVERSEûTHATûTREND ûBUTûITûWILLûlRSTûNEEDû markets. International Financing Review Asia May 5 2018 1 INTERNATIONAL FINANCING REVIEW ASIA CONTACTS EDITOR EDITOR, IFR COMPANY INDEX Indorama Ventures 38 3TEVEû'ARTON Matthew Davies Accolade Wines 14 IndoStar Capital Finance 32 +852 2912 6670 +44 (0)20 7542 7504 Adaro Energy 14 KfW 12 [email protected] DESK EDITOR Khon Kaen Sugar 38 HEAD OF ASIAN CREDIT Vincent Baby Aroundtown 12 Kingboard Chemical Holdings 30 Daniel Stanton HEAD OF PRODUCTION Asian Development Bank 35 +65 6417 4548 Korea National Oil Corporation 36 Victor Ng Astra Sedaya Finance 33 ASIA EQUITIES EDITOR Lavasa 31 PRODUCTION ASSISTANT AU Optronics 37 Fiona Lau Mike Tsui Australia and New Zealand Liberty Financial 13 +852 2912 6673 HEAD OF GLOBAL ADVERTISING AND Banking Group 13 Lippo Karawaci 8 DEPUTY HEAD OF ASIAN CREDIT SPONSORSHIP Lippo Malls Indonesia Retail Trust 8 Frances Yoon AVIC International Leasing 18 Shahid Hamid +852 2841 5783 Bank Nederlandse Gemeenten 12 Lodha Developers 8 +65 9755 5031 DEPUTY EQUITIES EDITOR, ASIA Bank of Communications 20 Manulife US REIT 35 IFR ASIA AWARDS MANAGER S. Anuradha Bank of Communications Macau 18 Meituan-Dianping 4 Paul Holliday +65 6417 4547 +44 (0)20 7542 8018 BlueScope Steel 12 Members Banking Group 13 SENIOR CREDIT CORRESPONDENT, ASIA GLOBAL ADVERTISING Bumi Serpong Damai 33 Merchants Union Consumer Finance 9 Kit Yin Boey PRODUCTION MANAGER Minmetals Land 16 +65 6417 4549 Busan Bank 17 'LORIAû"ALBASTROû CEFC Shanghai International Group 17 Minsheng Financial Leasing 9 ASIA PACIFIC BUREAU CHIEF, LOANS +44 (0)20 7542 4348 Prakash Chakravarti Central Proteina Prima 33 MNC Investama 33 SUBSCRIPTION SALES ENQUIRIES +852 2912 6671 Cheng Loong 37 Nagacorp 6 China, Hong Kong, Taiwan, Korea, Japan SENIOR REPORTERS: HONG KONG Nanjing No.1 Pesticide Group 20 Alan Wong China Aoyuan Property Group 16 Thomas Blott +852 2912 6606 China Huadian 15 Nanjing Red Sun 20 +852 2841 5878 China Kepei Education Group 19 Nanjing Securities 20 Carol Chan India, Singapore, Malaysia, Thailand, National Housing Bank 31 +852 2912 6604 Indonesia and Australia China National Nuclear Corporation 17 Samantha Harris Nature’s Care 15 EQUITY RESEARCHER: BEIJING China New Town Holding 30 +612 9373 1749 Ken Wang CITIC Capital Holdings 30 Ningbo Yuan Da Industry Investment 19 +86 10 6627 1259 SUBSCRIPTION ACCOUNT MANAGER CITIC Dameng Investments 18 NSW Electricity Networks Finance 13 Pia Batuan SENIOR REPORTER: SYDNEY Dewan Housing Finance Corporation 31 Pacific Securities 20 +65 6403 5542 John Weavers Digital Telecommunications Pepper Group 14 +61 2 9373 1655 CLIENT SERVICES Infrastructure Fund 38 Poly Property Group 16 SENIOR ANALYST: TOKYO [email protected] DLF 8 Power Finance Corp 31 Takahiro Okamoto WEBSITE Dong Yin Development (Holdings) 19 Pruksa Holding 38 +813 6441 1773 www.ifrasia.com ASIAN CREDIT CORRESPONDENT Embassy Office Parks 8 Qingdao Haier 19 EMAIL ADDRESSES Quantum Solar Park Semenanjung 34 Krishna Merchant lRSTNAMELASTNAME TRCOM EMR Capital 14 +65 6417 4544 Evergrande Group 17 Red Star Macalline Holding Group 16 REPORTER: HONG KONG Export-Import Bank of Thailand 38 Reliance Jio Infocomm 31 Ina Zhou Fantasia Holdings Group 16 Republic of Maldives 35 +852 2912 6674 Federal International Finance 32 Rural Electrification Corp 31 First REIT 8 Sarimelati Kencana 34 Flexi ABS Trust 2018-1 13 SDIC Power 19 HONG KONG (HEAD OFFICE) SINGAPORE Foxconn Industrial Internet 7 SGSP (Australia) Assets 12 16/F Cityplaza 3, 18 Science Park Drive, Genius Auto Finance 9 Shandong Iron & Steel Group 4 14 Taikoo Wan Road, Singapore 118229, Singapore Suntec REIT 36 Taikoo Shing, +65 6775 5088 Genting Malaysia 34 Hong Kong Global Logistic Properties 17 Tencent Music Entertainment 19 LONDON +852 2843 6363 30 South Colonnade, Canary Wharf, Government