Australasia Investment Banking Snapshot

Australasia Investment Banking Snapshot – JUNE 10, 2011

Resoucehouse Withdrawn IPO is Largest in Asia Pacific
Australian mining firm Resourcehouse Ltd, controlled by billionaire Clive Palmer, pulled its planned IPO in Hong Kong this week which intended to raise at least US$2.5 billion. The IPO was highly anticipated after postponing its offering three times due to market volatility. What would have been the biggest initial public offering by an Australian company this year, is now the largest withdrawn IPO in Asia Pacific to date.

Total capital raisings in Australia's equity market amounted to US$12.7 billion, up 79% from the same period last year, mainly from secondary offerings which accounted for 97% of the issuance. IPO proceeds reached US$230.2 million for year-to-date 2011, down 38% from the comparable period in 2010.

Westpac Bank NZ Joins Covered Bond Market
Westpac New Zealand is the latest issuer from the Australasia region to debut in the covered bonds space with US$1.5 billion (€ 998.0 million). The legislation change in Australia on covered bonds will boost the asset class allowing Australian banks to capitalize on the strong demand for covered bonds. This month, Bank of New Zealand issued US$741.6 million (AU$698.2 million) in Australia while ANZ National prepares to launch its debut in the covered bond space.

The volume of covered bonds totals US$231.1 billion for year-to-date 2011, a 44% increase from this time last year and the highest year-to-date volume since records began in 1996. Euro-denominated covered bonds accounted for 84% of the market.

CBA Taps Yen Market After More Than Three Years
Commonwealth Bank of Australia raised US$1.25 billion (¥101.0 billion) this month from its first Samurai bond since 2008. Both ANZ and National Australia Bank also tapped the Yen market in January with a total of US$1.0 billion (¥86.1 billion) and US$685.7 million (¥56.3 billion), respectively, driving Australian-issued samurai bonds to reached US$3.0 billion (¥243.4 billion) this year.

Daiwa Securities holds top spot for Samurai debt underwriting this year with 20.7% market share. Total Samurai bonds amounted to US$13.8 billion (¥1.1 trillion) for 2011 year-to-date, up 123% over this time last year, and the best annual start on record.

© Scoop Media