Contents
INTERNATIONAL FINANCING REVIEW ASIA
OCTOBER 13 2018 ISSUE 1062COVER STORIES
BONDS
04 China navigates market turmoil
China attracted strong demand for a tightly priced
US$3bn sovereign bond, its second foray in the market
in as many years, despite a global market sell-off.
LOANS
04 Lenders brace for trade war
International lenders are holding Chinese borrowers to
higher standards as the trade war intensifies, dealing a
further blow to already flagging loans to China.
BONDS
06 Pakistan seeks IMF assistance
Pakistan asks for IMF help, a test of the Fund’s ability to
provide support without escalating tensions between
the US and China, Pakistan’s most important creditor.
NEWS
06 India cushions shadow banks
India’s largest state-owned bank and the regulator
for mortgage finance companies have moved to ease
concerns over liquidity at the country’s shadow banks.
08 Thailand takes blockchain leap Thailand is leading Asia by adopting
blockchain in its debt market, to speed up settlement and delivery.
08 Haier to test D-share model Qingdao Haier is set to launch a smaller-
than-expected Frankfurt D-share sale amid market turmoil.
09 Aflac pushes Global yen duration US insurer Aflac tested appetite with
a ¥53.4bn three-tranche Global yen bond offering at its longest tenors so far.
PEOPLE & MARKETS
12 UBS to raise stake in China JV
UBS is on the brink of being the first foreign investment
bank to acquire a majority stake in its Chinese securities
joint venture under new rules introduced this year.
13 Australia’s cartel case kicks off Investment bankers have shrugged off
the implications of a criminal trial involving alleged cartel behaviour.
12 Who’s moving where MUFJ has announced a new structure and
leadership team across its global markets business.
15 In brief ANZ has flagged that its full year cash profit will take a A$824m
hit because of higher charges, mostly related to the Royal Commission.
ASIA DATA
40 This week’s figures
20 AUSTRALIA
Macquarie Group chose an
unfortunate day to return
to the US bond market, as a
spike in US rates prompted a
substantial Wall Street sell-off.
21 CHINA
Anhui Provincial Investment
Group Holding priced a debut
US$400m bond after drawing
over US$1.4bn of final orders
from 80 accounts.
27 HONG KONG
Hong Kong-listed Yuexiu Real
Estate Investment Trust has
launched a HK$2.8bn five-year
term loan. BoC and StanChart
are the mandated leads.
29 INDIA
Indian state-owned company
Power Finance Corp has
priced Rs30bn 10-year bonds
at 8.95%, according to a
market source.
30 INDONESIA
XL Axiata has fixed the yields
for a Rp2trn five-part bond
offering, including a Rp1trn
sukuk portion, according to a
filing on Bursa Malaysia Berhad.
31 JAPAN
SMFG priced a US$2.5bn
senior bond offering in three
parts. The notes came flat to or
inside fair value, according to
Nomura’s trading desk.
32 MACAU
Shareholders Melco Resorts
and New Cotai have indicated
interest to buy up to 88.9% of
Studio City International’s NYSE
IPO of up to US$359m.
32 MALAYSIA
Affin Islamic Bank plans to set
up a M$5bn MTN programme,
to sell murabahah format
senior sukuk or Tier 2 sukuk or
wakalah AT 1 capital sukuk.33 MONGOLIA
Development Bank of Mongolia,
has hired three as joint leads
for a proposed 144A/Reg S
US dollar-denominated senior
bond offering.33 MYANMAR
Pan Asia Majestic Eagle, a
Myanmar telco infrastructure
firm, is in the market for a five-
year loan of up to US$185m to
fund its leveraged buyout.
33 NEW ZEALAND
Housing New Zealand raised
the maximum combined
NZ$300m it was seeking from
last Friday’s dual-tranche local
bond offer.
34 PHILIPPINES
The Philippines’ largest oil
refiner, Petron has received
permission from the country’s
SEC to sell Ps20bn fixed-rate
bonds.
34 SINGAPORE
Olam International is
considering issuing bonds
with an environmental angle,
after it completed a pioneering
Sustainable loan transaction.
35 SOUTH KOREA
Shinhan Bank has mandated
three for a US dollar or euro
bond. Fixed-income meetings
began last week in the US and
Europe for a 144A/Reg S.
36 TAIWAN
Six banks have underwritten
a NT$31.2bn five-year loan to
back KKR’s leveraged buyout
of Taipei-listed specialty
chemicals maker LCY Chemical.
38 THAILAND
Kasikornbank became the
first Thai bank to issue a
Sustainability bond when it
raised US$100m in five-year
Formosa notes last Monday.
39 VIETNAM
Hoan My Medical Corp has
completed its debut bond issue,
of D2.33trn with a guarantee
from the Credit Guarantee and
Investment Facility.COUNTRY REPORT