Singapore’s squeaky clean reputation as a financial centre makes it an unlikely venue for default. But a spate of payment failures in the city state has shocked markets. The question now is whether there can be an orderly solution or if liquidation awaits the defaulting companies in lieu of restructuring. The first default came just over a year ago, from Indonesian mobile phone retailer Trikomsel, which missed coupon payments on two bonds due in 2016 and 2017 and totalling S$215m (US$150m). Sinc

With bankers seemingly quitting front office roles in droves to join fintech startups, one could be forgiven for concluding that Asia is on the cusp of a revolution in the application of technology to the capital markets. For now, however, the focus is on retail banking. Venture capital money has been pouring into peer-to-peer lending platforms, remittance companies, robo-advisers and crowdfunding sites that are gradually starting to chip away at incumbents’ market share. For wholesale banking,

Global mergers and acquisitions activity fell in 2016 from the previous year’s record, but there was one pocket of extraordinary growth – the record volume of cross-border acquisitions by Chinese companies in Europe and the US. Chinese companies have been busy buying western assets over the last three years, diversifying overseas to combat an economic slowdown domestically. This trend accelerated dramatically in February when China National Chemical Corp, or ChemChina, launched a US$43bn bid for

China completed its takeover of the Asian capital markets in 2016 – at least in terms of numbers. Combining debt and equity in all currencies, nine of the region’s top 10 underwriters are Chinese. Where four global banks ranked among the top 10 in 2015, only HSBC – arguably the most Chinese of the global banks – managed that in 2016, ranking ninth on the Thomson Reuters league table. The step change in 2016 has come from the growth in outbound investment from China, sluggish deal flow elsewhere

Thailand’s largest IPO of the year arrived at a wrenching time for Thai investors, priced on the same day the country’s revered king passed away after a 70-year reign. Banpu Power weathered a heavy market sell-off in the days prior to the king’s death, successfully engaging global funds and convincing local investors to look beyond short-term uncertainty. The company raised Bt13.6bn (US$382m) by selling 648.4m shares at the top of the Bt18–Bt21 range. Outside of infrastructure trusts and REITs,

Siam Commercial Bank broadened its client base and won a series of coveted sole mandates in 2016, regaining the top spot in Thailand’s local bond market in a record year. In the period under review, SCB arranged 47 issues for a combined underwriting value of Bt125.5bn (US$3.5bn), taking a 17.2% share of the primary market and outranking its nearest rival by two percentage points. Its jump from fourth spot the previous year was all the more remarkable as Thailand’s local currency bond market was

CTBC Bank adapted well to a slowdown in Taiwan’s domestic loan market in 2016, developing its structured and leveraged financing business across the region and outperforming its peers at home. As opportunities in the nation’s over-banked domestic market dwindled and credit exposure to China tightened, CTBC carefully leveraged its overseas platforms and structuring capabilities to rank as the top Taiwanese bank for M&A financings. “Despite the challenging and declining Asian syndicated loan m

The first overseas sovereign issue in China’s onshore bond market was a big step in the internationalisation of the renminbi and a milestone for South Korea. The Republic of Korea’s three-year Rmb3bn (US$433m) Panda bond, launched in December 2015, underlined the format’s enormous potential as the largest foreign issue in the onshore renminbi market at the time. It also set the standard for other countries. Panda bond rules had yet to be formalised when Korea came to the interbank market, but th

Welcome to the 2016 edition of the IFR Asia Awards for Excellence. These awards are designed to recognise the best deals, issuers and arrangers in the Asian capital markets over the past 12 months, with special focus on the institutions and transactions that have moved the region’s capital markets forward through innovation or outstanding performance. The IFR Awards are selected by IFR’s expert capital markets journalists and are 100% independent of external influence or commercial consideration

United Overseas Bank set the standard for other Asian issuers to follow with the region’s first covered bond in euros, opening the traditional home of the format to well-regarded Asian lenders. The first euro covered bond from Asia Pacific, excluding Australasia, may have looked effortless, but years of planning and extensive European roadshows were needed to lay the groundwork before the €500m (US$530m) five-year deal in March. UOB is not a frequent issuer of senior bonds offshore, but when it

DBS continued to lead the Singapore loan market in 2016 with a broad range of mandates, arranging corporate facilities, acquisition financings and expanding its presence in growing sectors. It was far from a banner year for Singapore syndicated loans, but DBS was consistently involved in the landmark deals and delivered a wide following for its clients. It finished the review period as the top bookrunner for Singapore loans, with a 13.3% market share more than five percentage points ahead of its

In a tough year for the local debt market, DBS continued to work hard for issuers and investors and reaffirmed its leadership in bringing high-quality foreign issuers to Singapore. DBS deepened the market by matching yield-hungry investors with issuers looking for new pockets of demand. It offered investors an alternative to local mid-cap issuers with subordinated and callable deals from well-known borrowers. It was ever-present on Singapore’s benchmark issues and kept markets open through priva

The Ps25bn (US$505m) IPO of Cemex Holdings Philippines, the country’s third-largest cement maker, sailed through a turbulent market at a premium valuation to peers and still traded well after listing. Cemex’s float was the largest Philippine IPO since 2013 and the country’s third largest in history. At around 45% of the company, Cemex’s offering was a rare liquidity event, while investors also saw it as an infrastructure play with high growth potential following the election of Rodrigo Duterte a

Sime Darby’s first follow-on equity offering since it listed in 1980 was a crucial capital raising that helped restore confidence in the debt-laden Malaysian conglomerate. The well-timed M$2.35bn (US$527m) placement was the country’s biggest equity financing during the review period, and one of the most challenging. At the time of marketing, not one of the 17 broking houses that covered the company – including Maybank, the sole bookrunner for the placement – had a buy call on the stock. Sime Dar

In a challenging year for Malaysia’s corporate credit market, Maybank Investment Bank made its mark with structuring and execution skills that won praise from the industry. Maybank lead managed four of the five largest non-government guaranteed deals in the ringgit market during the review period, taking top roles in two – the M$5.54bn (US$1.25bn) Islamic issue for Sarawak Hidro and the M$2.2bn subordinated perpetual sukuk for Sime Darby. It also distinguished itself as the top arranger of Islam

Cikarang Listrindo’s Rp3.61trn (US$272m) Jakarta listing reopened the Indonesian market for major IPOs and gave investors exposure to a growing independent power producer with a hedge against the traditionally volatile rupiah. The IPO priced in May, at a time when concerns over China’s economic slowdown were weighing on sentiment. It was the first power producer to float on the IDX, opening the critical infrastructure sector to international institutional investors, and paved the way for other c

ICICI Securities stole a march on both local and international rivals in 2016, winning deals in every segment of the Indian equity capital market. ICICI rocketed to second in the Indian ECM league table for the period under review, up from 14th the previous year. It was one of the most active arrangers in a busy IPO market, managing 11 of the 24 major listings, beat global competitors to high-profile institutional placements and completed block trades for private and government vendors. Small an

Alternative definitions of the year’s buzzwords To see the digital version of this report, please click here

Citigroup cemented its leading position in the Indian loan market in 2016, sealing mandates for noteworthy event-driven deals, project financings and winning repeat business from high-profile borrowers. The US bank was especially strong in cross-border financings, leading complex deals for international investors and helping its Indian clients expand overseas. Citigroup showed its ability to solve funding challenges in some key transactions, notably in Fiat India Automobiles’ US$250m 7.6-year br

Chart of the year Oil, China, Brexit and other key events The year in numbers Review of the year 2016 To see the digital version of this report, please click here