Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Shinhan Financial / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bnp-paribas" target="_blank" data-smartkarma-citation="entities:525:1" rel="noopener">BNP Paribas (BNP FP)</a> is looking to raise around US$680m via selling 3.5% of its stake in <a href="https://www.smartkarma.com/entities/shinhan-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:6978:1" rel="noopener">Shinhan Financial (055550 KS)</a>.</li>
<li>This will be the fourth selldown for the stock since the start of the year. It will also be the largest one of the lot, so far.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



BNP Paribas (BNP FP) is looking to raise around US$680m via selling 3.5% of its stake in Shinhan Financial (055550 KS).
This will be the fourth selldown for the stock since the start of the year. It will also be the largest one of the lot, so far.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Shinhan Financial Group Placement - Another Selldown, Momentum Is Strong but Deal Is Large

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Debt Capital Markets

iShares MSCI EM ESG Optimized / Debt Capital Markets

We initiate our coverage of Asian social bonds with a thematic report on (1) the current stage in the Asian capital markets, (2) social bond compliance regime, and (3) recent issuance in Asia. In subsequent months, we aim to launch a request for comment for our framework we will use to analyze social bond compliance with the Social Bond Principles (SBP).
This report also includes the United Nations’ Sustainable Development Goals (SDG) and how SDG is linked to ESG (Environment, Social Development, and Governance) investments. SDG is not simply Environment, Social Development, and Governance but also Productivity which results in employment, economic growth, innovation, better infrastructure, and stronger industry.
Among ESG, Governance is what we have already accounted for when analyzing credit investments. That said, the key is how we can now design investments to improve environment (i.e. green bonds), social development (i.e. social bonds), and/or both green and social bonds (i.e. sustainability bonds). 
Green bonds were the first among fixed income instruments to take off. In a time of COVID-19, the most precarious elements of the planet is human life and, in our judgment, social development can take precedence over environment, productivity, and governance although all the four elements should be considered together. The emergence of COVID-19 has led to a drastic rise in social bond issuance and we expect this realization of a lack of social development to increase demand and supply of social bonds in the near term.

We initiate our coverage of Asian social bonds with a thematic report on (1) the current stage in the Asian capital markets, (2) social bond compliance regime, and (3) recent issuance in Asia. In subsequent months, we aim to launch a request for comment for our framework we will use to analyze social bond compliance with the Social Bond Principles (SBP).
This report also includes the United Nations’ Sustainable Development Goals (SDG) and how SDG is linked to ESG (Environment, Social Development, and Governance) investments. SDG is not simply Environment, Social Development, and Governance but also Productivity which results in employment, economic growth, innovation, better infrastructure, and stronger industry.
Among ESG, Governance is what we have already accounted for when analyzing credit investments. That said, the key is how we can now design investments to improve environment (i.e. green bonds), social development (i.e. social bonds), and/or both green and social bonds (i.e. sustainability bonds). 
Green bonds were the first among fixed income instruments to take off. In a time of COVID-19, the most precarious elements of the planet is human life and, in our judgment, social development can take precedence over environment, productivity, and governance although all the four elements should be considered together. The emergence of COVID-19 has led to a drastic rise in social bond issuance and we expect this realization of a lack of social development to increase demand and supply of social bonds in the near term.

Social Bonds: Here Come the Next Green Bonds

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

* Weak First Quarter To Start Off Year: KB Financial Group (105560.KS/KB.US) [KB] reported 1Q20 results of KRW 729.5 bn, up KRW 194.8 bn or 36.4% linked quarter. Despite the large linked quarter variance, KB actually missed consensus of KRW 801 bn;* Credit Taking A Turn For Worse Already: Credit quality is a lagging indicator, and the truth is that by the time that the quarter ended we were only 18 days into the COVID-19 Crisis. 2Q20  - at 108 days into the Crisis will tell a far different story. That being said, already NPLs have increased KRW 14.0 tn or 4.2% on a linked quarter basis – which is relatively high on a regional basis. Where we become increasing concerned is the level of net new problem loans which increased 202.6% on an annualized basis in 1Q20; and*Pru Transaction Is A Dumb Deal: KB has begun preparing to become retake Seoul’s title of being the leading financial group from Shinhan Financial Group (055550.KS), as it embarks on a transaction for Prudential Korea (PRU.LN). At this early stage of the cycle and Pru Korea’s long-tail and likely challenged assets, along with union and Pru financial planner pushback, this transaction seems like the cart is being put before the hose – and it should be strongly reconsidered.

* Weak First Quarter To Start Off Year: KB Financial Group (105560.KS/KB.US) [KB] reported 1Q20 results of KRW 729.5 bn, up KRW 194.8 bn or 36.4% linked quarter. Despite the large linked quarter variance, KB actually missed consensus of KRW 801 bn;* Credit Taking A Turn For Worse Already: Credit quality is a lagging indicator, and the truth is that by the time that the quarter ended we were only 18 days into the COVID-19 Crisis. 2Q20  - at 108 days into the Crisis will tell a far different story. That being said, already NPLs have increased KRW 14.0 tn or 4.2% on a linked quarter basis – which is relatively high on a regional basis. Where we become increasing concerned is the level of net new problem loans which increased 202.6% on an annualized basis in 1Q20; and*Pru Transaction Is A Dumb Deal: KB has begun preparing to become retake Seoul’s title of being the leading financial group from Shinhan Financial Group (055550.KS), as it embarks on a transaction for Prudential Korea (PRU.LN). At this early stage of the cycle and Pru Korea’s long-tail and likely challenged assets, along with union and Pru financial planner pushback, this transaction seems like the cart is being put before the hose – and it should be strongly reconsidered.  

KB Financial – Bigger Is Not Always Better

South Korea

Shinhan Card Co. Ltd. offers various credit cards and installment finance services. The Company provides personal and corporate credit cards, as well as various financing activities such as corporate lending, asset management, and insurance services. Shinhan Card serves customers throughout South Korea.

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Shinhan Card Co Ltd (032710 KS)

Shinhan Financial Group Placement - Another Selldown, Momentum Is Strong but Deal Is Large

BNP Paribas (BNP FP) is looking to raise around US$680m via selling 3.5% of its stake in Shinhan Financial (055550 KS). In this note, we talk about...

Sumeet Singh

KB Financial – Bigger Is Not Always Better

* Weak First Quarter To Start Off Year: KB Financial Group (105560.KS/KB.US) [KB] reported 1Q20 results of KRW 729.5 bn, up KRW 194.8 bn or 36.4%...

Thomas J. Monaco

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52-week Range

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Shinhan Financial Group Placement - Another Selldown, Momentum Is Strong but Deal Is Large

BNP Paribas (BNP FP) is looking to raise around US$680m via selling 3.5% of its stake in Shinhan Financial (055550 KS). In this note, we talk about...

Sumeet Singh

Social Bonds: Here Come the Next Green Bonds

Social bonds are the new green bonds as COVID-19 has made investors realize social development is as important as environment. Here is our...

Bondcritic

KB Financial – Bigger Is Not Always Better

* Weak First Quarter To Start Off Year: KB Financial Group (105560.KS/KB.US) [KB] reported 1Q20 results of KRW 729.5 bn, up KRW 194.8 bn or 36.4%...

Thomas J. Monaco