League tables-r1:AMM grid in qxp 12/24/09 9:31 AM Page 23
ASIA(EX-JAPAN)DCMBOOKRUNNERRANKINGS
2009YTD 2008YTD
Rank Bookrunner Dealvalue No. %share Rank Bookrunner Dealvalue No. %share
US$(m) US$(m)
1 DeutscheBank 9,671 40 14.8 1 HSBC 2,582 21 11.6
2 HSBC 9,148 34 14.0 2 DeutscheBank 2,539 13 11.4
3 MorganStanley 7,398 24 11.3 3 MorganStanley 1,912 10 8.6
4 BarclaysCapital 5,529 20 8.5 4 J.P.Morgan 1,889 8 8.5
5 Citi 5,258 20 8.0 5 Nomura 1,811 4 8.1
6 UBS 4,902 16 7.5 6 Citi 1,808 14 8.1
7 J.P.Morgan 3,992 20 6.1 7 BankofAmericaMerrillLynch 1,458 9 6.5
8 BankofAmericaMerrillLynch 3,594 17 5.5 8 RBS 1,430 9 6.4
9 GoldmanSachs 3,402 14 5.2 9 BarclaysCapital 1,162 8 5.2
10 CreditSuisse 2,746 15 4.2 10 DaiwaSecurities 1,003 3 4.5
Total 65,402 128 100 Total 22,292 73 100
SOURCE: DEALOGIC
MARKETTURNAROUND venture capital that could well go to the US, which tends to give stronger
After the nadir of the equity markets in early March, confidence began to valuations than in Asian markets.”
return. The markets were to remain choppy for the next two months, but While Chinese issuers are likely to remain a market constant, you can
slowly more issuers began to venture forth, eager to raise funds. expect to see more activity in the financial institutions space as well. A set
By May a large number of companies were keen to access markets of other banks, insurance companies, securities houses and more are keen
across Asia. India witnessed a welter of deal activity over May and June to raise capital again and grow.
that left the market struggling to absorb it all. Meanwhile, Hong Kong “There could be a lot of other FIG activity such as Korea’s life insurance
witnessed some landmark deals too, with Sinopharm conducting an companies like Korea Life and Samsung Life, and in Hong Kong AIA is look-
impressive debut. ing to IPO as well. The region’s FIG deals could raise US$70 billion to
Metallurgical Corp. of China conducted the biggest international US$100 billion in 2010,” predicts Vong.
offering in September when it priced a HK$39.76 billion IPO. While a Equity investors are unlikely to enjoy quite the market trajectory that
sizeable deal, it struggled as a result of market rules dictating that H- they enjoyed over the latter nine months, but the coming year still holds
share offerings cannot come at a discount to A-share issues. As a result its plenty of excitement for the quality of new names set to tap the market.
Hong Kong IPO struggled after being richly priced.
As the year began to close Chinese companies continued to dash into DEBT’SBENCHMARKDOMINATION
the market. A set of property companies made quick raids, but investors At the beginning of 2009 the credit markets were in such poor shape that
soon grew bored of the similarity in such names, leading to poor perform- real fears were emerging about the ability of regional borrowers to meet
ance in the secondary market. their credit needs.
But as the year drew to a close a few final impressive deals were done, Investor eyes were particularly drawn to South Korea, which had a
including issues from both Wynn Macau and Venetian Macau in Hong broad array of financial and state-linked borrowers, all with substantial
Kong, and a deal for China Minsheng Bank. funding needs. Plus the likes of the Philippines and Indonesia had also pro-
But the most notable was Maxis of Malaysia. The telecom company jected budgets on the back of major international funding. These plans
had de-listed in 2007, but under some political pressure it conducted an were beginning to look wildly optimistic.
IPO once more, although it opted to leave out its key growth assets in It is to the credit of the Republic of the Philippines and Export-Import
India and Indonesia. The deal was still a marked success, raising RM11.2 Bank of Korea, therefore, that the markets got off to a good start. The sover-
billion (US$3.2 billion). eign entered the market first for its customary major deal in January, rais-
For the year as a whole, Asian issuers raised US$152.2 billion in equity ing US$2 billion through a 10-year issue. Kexim then followed with its own
by December 17, a marked increase on the US$82.9 billion seen in the US$2 billion, five-year benchmark.
same period last year, according to Dealogic. Both deals paid a lot of yield to get done, but they helped to gain the
Throughout this year of highly varied activity UBS was the most active interest of investors and to ensure other issuers could follow. South Korea
bank. Buoyed by a mix of sizeable China bank equity sales, rights offer- had also rapidly begun to put together a government guarantee pro-
ings and then a slew of IPOs and follow-on deals, the Swiss bank ended gramme to help its banks meet their needs, although in the end only Hana
up pipping Morgan Stanley for issuance, notching up US$13.4 billion in Bank ended up using it.
volumes. As the year progressed, other benchmark-sized issues emerged. The
Republic of Indonesia hit the market for US$3 billion in five- and 10-year
AFINANCIALLY-FOCUSEDYEAR bonds in February, and a US$650 million five-year debut sukuk in April.
For the market’s equity participants two trends look set to dominate Korean banks also entered en masse, with the likes of Kexim, Korea
issuance in 2010: China and financial institutions. Development Bank, Kookmin, Hana and others all tapping the market for
China has come to represent almost as much equity deal flow in the sizeable deals.
past 12 months as all of Asia’s other equity markets combined. It’s a level On the corporate side, Hong Kong conglomerate Hutchison Whampoa
of issuance set to continue in the coming year, bolstered in large part by a entered the market in April for US$1.5 billion of 10-year bonds. It was to
huge anticipated set of rights offerings from its banks (see related story follow with a US$3 billion two-tranche deal in September, and a€1.75 bil-
on page 32). lion (US$2.6 billion) seven-year deal in November. All of its deals received
However, bank deals will not be the only offerings to emerge from the strong investor interest.
country. Malaysian oil and gas entity Petronas squandered a chance to conduct
“There are likely to be a lot of onshore listings in China and FIG deals, the year’s best trade when it priced a US$3.5 billion issue in August. While
but there will also be listings in the US, where a lot of Chinese players find a reasonable deal, the tight pricing demands of the borrower meant that
their best benchmarks to be, especially in the tech, solar sector, internet the deal ended up performing poorly in the secondary markets, while the
sector and emerging tech sectors,” says Nicolas Vong, head of Asia equity US$500 million sukuk that was part of the deal was criticised for failing to
capital markets at Barclays Capital in Hong Kong. gain much Middle East investor attention, something that had been an
“There are a lot of entrepreneurs in China and businesses backed by apparent objective of the borrower.
asiamoney.com 23
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80