Who’s your pick for Best Corporate and Institutional Bank?

Corporate and Institutional Bank
Corporate and Institutional Bank

As global rivals pull back in Asia including one falling on its own sword, a handful of others have been tenacious and stayed the course. These institutions, nominees for The Asset Triple A Best Corporate and Institutional Bank for 2016, deserve a lot of kudos especially amid a market that has shrunk especially in equity underwriting and also in the face of competition from domestic houses. The fabulous five are Citi, Credit Suisse, DBS, HSBC, and UBS.

Citi remained steadfast in being involved in several key deals in Asia. The firm executed the highly praised Samsung BioLogics US$2 billion IPO (it was the sole international global coordinator), which traded up by as much as 8% on its first day. Another important deal for Citi was advising China Resources Beer on its 49% stake offer in CR Snow from SAB Miller for a bargain price of US$1.6 billion.

The deal greatly improved China Resources Beer’s share price which traded up as much as 34.6% when the deal was announced. In the bonds space, Citi made its mark on key deals such as KEXIM’s (Korea Import-Export Bank) US$2.5 billion triple tranche offering, and the Bank of China’s 1.5 billion yuan tranche green bond issuance.

Credit Suisse was also involved in the Samsung BioLogics IPO. In addition, the house stood out for its geographic breath executing a slew of equity deals around the region from Pakistan to Korea. In M&A, Credit Suisse was an active participant in the China M&A outbound story, especially when it came to energy/renewable energy assets.

The house also arranged the privatization by Temasek Holdings of SMRT, the Singapore subway system, in a deal worth US$866 million. In debt capital markets, Credit Suisse arranged two masala bonds including for India’s HDFC’s (Housing Development Finance Corporation) INR30 billion masala bond, the first Indian corporate to cook up such a treat for investors.

Another strong contender for the award over the review period is DBS. In 2016, the house maintained its dominance in the REIT (Real Estate Investment Trust) space taking part in key REIT IPOs in Singapore including Frasers Logistics and Industrial Trust’s US$684 million IPO, which allowed investors to gain exposure to Australian real estate assets (Citi was also a noteworthy participant).

In M&A, DBS advised Baring Private Equity in its S$450 million purchase of Interplex Industries. The bank’s bond franchise, compared to the previous years, grew significantly especially in its home market .

DBS’ own US$750 million Basel III AT1 perpetual securities caught the attention of other issuers as it managed to price the deal at 3.6%, at the tight end of the range. Citi and HSBC were also involved in DBS’ deal, which also represented the tightest pricing for any Basel III compliant AT1 globally.

For HSBC, 2016 was a continuing progression of its efforts to grow its primary business. In equity, the house was part of the consortium of banks including Citi, that helped Cemex Philippines to go public raising US$540 million. HSBC’s M&A team was active in the region, taking part in some of the most noteworthy deals such as working as sell-side adviser to Casino Groupe, in its exits from Vietnam and Thailand. It was the adviser to ChemChina in its announced US$46 billion proposed takeover of Syngenta of Switzerland, the largest outbound M&A from China ever.

A traditionally strong bond house, HSBC again was one of the leaders in the Asian bond space taking part in a variety of deals whether it be local currency bonds, panda bonds, or green bonds. One of most important bond deals for the house was its role in Bank of China’s multi-currency green bond, the largest international green bond on record.

UBS has also played a pivotal role in the capital markets space. During the review period, the house took a number of financial institutions public, including Everbright Securities, Postal Savings Bank of China, and China Merchants Securities. In M&A, UBS, similar to Credit Suisse, took advantage of the China outbound M&A trend.

Some key China deals for UBS include the merger of China COSCO and COSCO Pacific, and Cinda Asset Management’s US$8.8 billion acquisition of Nanyang Commercial Bank in Hong Kong. The latter deal marked the largest acquisition of a Hong Kong-based bank in history. In bonds, UBS worked with both Asian investment grade and high yield issuers. A key deal for the house was assisting JD.com in its debut US$1 billion US dollar bond offering.

The winner of the Triple A Best Corporate and Institutional Bank will be revealed on February 28, 2017 during The Asset’s Regional House & Deal Awards Dinner. For more information about the awards ceremony please click here 


10 Jan 2017



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