Asia goes green!
We’re proud to announce a set of 2017 Asia-Pacific MTN awards today that further highlight the deepening sophistication of the region’s private debt markets. In the past year dealers and issuers have once again set new innovation standards in meeting investor requirements across multiple asset classes – including a ground-breaking offering of weather-linked notes.
From triple-B European corporate credit sold into China in US dollars to ‘pandemic bonds’ from the senior triple-A supranational, we recognise a host of landmark Asian transactions over the past 12 months. These illustrate vividly how the region’s investors are fuelling some of the key trends in global debt capital.
Down the credit curve!
Buyers’ continuing search for yield has underpinned much of this activity. It has driven a regulatory softening in Taiwan, for example, where insurers’ new access to triple-B instruments brought a stand-out first Formosa from Mexico’s CFE.
A jumbo private CLO targeted similar Taiwanese appetite, while further Latin American exposure traded in yen. In addition, several substantial triple-B issues from other regions drew Chinese demand.
Korea’s appetite for asset swaps heads other yield solutions recognised in these awards. The country’s life insurers have taken down a raft of Canadian dollar and Swedish kronor issues swapped back to won, while arbitrage from Euros is an emerging trend.
Currency activity has also brought new landmarks in frontier units such as Myanmar kyats and Papua New Guinean kina.
Meanwhile, subordinated debt and very long-dated corporate issues provided yield solutions in established regional currencies like Hong Kong dollars and yen.
At the same time, the theme of social and environmental returns loomed larger than ever before in Asian private debt. We’re glad to recognise a raft of socially responsible debt initiatives throughout the region in these awards.
These include Taiwan’s co-ordinated opening of a domestic green bond sector, which we acknowledge with one of our Editor’s Awards. This was subsequently expanded by the first green Formosa.
The Australian and Hong Kong dollar markets broke new ground with green offerings too, including a very substantial US private placement.
Our Asian Issuer of the Year, Export-Import Bank of Korea, featured with a very rare private green Indian rupee note as well.
Japan, the original green debt market, was inevitably a significant element too. In particular, Nippon Life drove several SRI landmarks – including a very rare non-SSA social bond from France’s BPCE.
Join the dots!
Our event is more than a dinner – it’s a chance to join the dots between all these new products, investor axes and their issuers and dealers at our Networking Lunch and Afternoon Showcase.
And hurry, because seating in the Grand Hyatt Pool House is limited!
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