International Financing Review Asia April 4 2020 3Contents
INTERNATIONAL FINANCING REVIEW ASIA
APRIL 4 2020 ISSUE 1132COVER STORIES
BONDS
04 US investors revive Asia bonds
Asian issuers returned to the offshore bond market after
a two-week absence, but US investors are likely to be
critical to the success of primary issues to come.EQUITIES/BONDS
05 Coffee spill hits ECM pipeline
A brewing accounting scandal at China’s Luckin Coffee
has emerged as the latest threat to the pipeline of
Chinese listings in an increasingly hostile US market.EQUITIES
06 Follow-ons gather pace in Asia
Follow-on offerings in Asia Pacific have surged as
companies and shareholders tap the markets for funds
to withstand the coronavirus crisis.NEWS
07 Downgrades begin to mount
Downgrades mounted across Asia Pacific in Q1 as the
Covid-19 epidemic weighed on economic growth forecasts
and exposed the frailties of a wide range of companies.07 PTT Global braves tough market PTT restored some confidence to
Thailand’s local bond market with a Bt15bn four-tranche deal last week.
08 Semis reopen Aussie market Cash-strapped state governments have
reopened the Australian bond market with a flurry of floating-rate deals.
08 Australasia Inc seeks waivers Borrowers in Australia and New Zealand
are wasting no time to shore up liquidity to help their businesses survive.PEOPLE & MARKETS
14 Dividend shock hits bank stocks
Asian investors reacted with horror to the forced
suspension of dividend payments by HSBC and
Standard Chartered last week.15 Goldman, Morgan get China JV approvals Goldman Sachs and Morgan
Stanley received final approval to boost their China securities shareholdings.
16 Westpac’s King gets two-year reign Westpac is entrusting acting chief
executive Peter King with the role for two years to bring leadership stability.
14 Who’s moving where Credit Suisse has promoted Angelo Scasserra to
co-head of investment banking and capital markets for Australia.
18 In brief China’s central bank has cut its seven-day reverse repo rate, the
main rate at which it provides short-term liquidity to the country’s banks.ASIA DATA
48 This week’s figures
23 AUSTRALIA
Toll-road operator Transurban
returned to the euro market last
Wednesday with a €600m sale
of 3.0% 10-year senior secured
Eurobonds.28 CHINA
Pharmaceutical company
Sinopharm Group has
announced a proposed onshore
bond offering of up to Rmb15bn
with a tenor of no more than
10 years, according to a stock
exchange filing.33 HONG KONG
China Strategic Holdings
expects to take a loss of about
US$231,000 on a recent
disposal of part of its holdings
in Logan Property Holdings’ US
dollar bonds.35 INDIA
IDBI Bank withdrew a planned
onshore offering of Basel III-
compliant Tier 2 bonds on
March 27, after the Reserve
Bank of India announced a slew
of easing measures.37 INDONESIA
Perusahaan Listrik Negara is
marketing four tranches of
bonds to raise Rp1.82trn.38 JAPAN
Japan’s Government Pension
Investment Fund is to increase
its target allocation to foreign
bonds by 10 percentage points in
the 2020-21 fiscal year starting
April 1.40 MALAYSIA
Malaysian stevia sweetener
producer PureCircle is likely to
face significant challenges to
repay a portion of its debut loan
due in November39 MYANMAR
Singapore-based Kajima
Myanmar Holding is raising a
US$276m loan from Japan Bank
for International Cooperation
for its real estate complex
development in Myanmar.39 NEW ZEALAND
ANZ Bank New Zealand will
not call its NZ$500m 7.2%
Additional Tier 1 perpetual ANZ
Capital Notes.42 PHILIPPINES
The Triple A rated Asian
Development Bank last Tuesday
priced a US$4.5bn two-year
Global bond, in its largest ever
single-tranche offering.42 SINGAPORE
Singapore-listed Aspial
last Tuesday redeemed the
outstanding S$177.25m of 5.3%
retail bonds that had matured.44 SOUTH KOREA
Hyundai Capital America, rated
Baa1/BBB+ (Moody’s/S&P), has
priced a US$1.8bn 144A/Reg S.45 TAIWAN
Electronic components maker
Yageo has closed a US$1.1bn
12-month bridge loan backing
its proposed acquisition of US
rival Kemet with four lenders
joining in senior syndication.45 THAILAND
Bank of Ayudhya has raised
Bt7bn (US$214.6m) from an
offering of two and three-year
notes.46 VIETNAM
Developer No Va Land
Investment Group Corp has
drawn down the remaining
portion of a US$250m debut
loan signed last November.COUNTRY REPORT
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