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Private credit firms are expecting an increase in lending in the Asia-Pacific region in 2024, focusing on higher-quality borrowers rather than distressed cases. This comes as banks reduce their financing for companies in the region. The education, healthcare, and consumption-related sectors are seen as the most promising for deals. Private credit has become a significant competitor to mainstream lending, offering higher rates of return. Demographic shifts, such as the growing middle class in India and Vietnam, will drive capital flows, while an aging population will boost demand for healthcare. The energy transition sector and real estate also present opportunities. However, respondents are cautious about China due to its economic slowdown and geopolitical tensions. [Extracted from the article]

Private credit firms are predicting increased lending in the Asia-Pacific region in 2024, focusing on higher-quality borrowers rather than distressed cases. A Bloomberg survey of major firms, including Apollo Global Management and Blackstone, found that many expect the market to grow by more than 10% this year. The education, healthcare, and consumption-related sectors are seen as the most promising for deals. Private credit has become a significant source of financing, attracting investors with higher rates of return. Demographic shifts, such as the growing middle class and aging population, will also drive capital flows in the region. However, respondents expressed caution regarding China's economic slowdown and geopolitical tensions. [Extracted from the article]

Ares Management Corp. has raised $1.7 billion for a credit fund in Australia and New Zealand, taking advantage of opportunities created by banks reducing leveraged lending. The Ares Asia Direct Lending fund has already deployed over $1.04 billion in loans to various companies, including InvoCare Ltd., Allegro Funds, and BGH Capital's Pushpay. This fund is significant because Australia and New Zealand lack a high-yield bond market and have a limited institutional capital market for high-yield borrowers. The fund includes investments from sovereign wealth funds, pension funds, insurance companies, family offices, and high net worth individuals. [Extracted from the article]

Ares Management Corp. has raised a $1.7 billion credit fund for Australia and New Zealand, taking advantage of opportunities created by banks scaling back on leveraged lending. The Ares Asia Direct Lending fund has already deployed over $1.04 billion in loans to various companies, including InvoCare Ltd., Allegro Funds, and BGH Capital's Pushpay. This fund is significant because Australia and New Zealand lack a high-yield bond market and have a limited institutional capital market for high-yield borrowers. The fund includes investments from Asia Pacific sovereign wealth funds, pension funds, insurance companies, family offices, and high net worth individuals. [Extracted from the article]

Van Eck Associates Corp. has introduced a private credit exchange-traded fund (ETF) in Australia, making it the first of its kind in the market. The ETF, listed on the Australian Securities Exchange, provides retail investors with access to 25 US-listed private credit managers. Private credit funds specialize in lending to private companies and offer a more liquid pool of borrowers and lenders compared to unlisted vehicles. The private credit market has grown significantly in recent years, with over $1.7 trillion in assets under management. The ETF offers investors exposure to a diversified range of industries and issuers. Van Eck has no plans to launch a similar product in Asia, as investors in that region typically invest in ETFs listed in Europe and the US. [Extracted from the article]

Bain Capital and Sona Asset Management, along with other lenders, have agreed to take over Accolade Wines, an Australian wine producer facing financial difficulties due to various economic factors. The lenders will acquire the company by exchanging their debt for shares. Accolade Wines has been impacted by a decline in wine demand, cost inflation, excess grape supply, and high levels of debt. The company's business model, which relied on shipments to China, was further affected by the introduction of high tariffs on Australian wine imports by the Chinese government. The deal aims to provide relief for Accolade Wines, but analysts suggest that future tariff relief is unlikely to immediately restore the company's volumes to previous levels. The transaction is expected to be completed by mid-year, pending regulatory approvals and new procurement deals with suppliers. [Extracted from the article]

Blackstone Inc. and Brookfield Corp. are among the global investors investing in the multifamily apartment market in Australia, which is facing a housing crisis with rental vacancies at around 1%. Other players in the sector include Ontario Municipal Employees Retirement System, UBS Asset Management, PGGM, and Greystar Real Estate Partners LLC. Currently, there are over A$14 billion in institutional commitments to Australian projects in the build-to-rent sector. The build-to-rent sector is expected to become the largest property class in terms of construction starts by 2030, with an estimated value of A$10 billion per year. However, challenges such as low returns, high land prices, construction costs, and compliance issues need to be addressed. [Extracted from the article]

Singapore's Temasek Holdings Pte and KKR & Co. have joined a loan deal for Silver Lake Management LLC's TEG Pty Ltd. The loan is worth around A$950 million and has a five-year tenor and a margin of 550 basis points. TEG is an Australia-based company that sells tickets to concerts, musicals, and sporting events. The loan will provide Silver Lake Management with a payout after talks to sell TEG earlier this year fell through. Temasek, KKR, Silver Lake, and TEG have declined to comment on the matter. [Extracted from the article]

AustralianSuper Pty Ltd., Australia's largest pension fund, is increasing its investment in the private credit market to boost returns. The fund has increased its investment mandate with private credit specialist Churchill Asset Management to $1.5 billion. AustralianSuper currently has over $4.5 billion invested in private credit globally and plans to triple its exposure in the coming years. The fund is focusing on senior loans to US middle market companies, with yields of around 11% to 12%. While some have expressed concerns about transparency and regulation in the private credit sector, Churchill Asset Management disagrees and believes the risk-adjusted returns are attractive. [Extracted from the article]

Silver Lake Management is seeking a loan of around A$950 million ($624 million) from private credit funds for TEG, the owner of Ticketek, in order to give itself a payout. The loan would have a five-year tenor and would be arranged by Goldman Sachs. Talks to sell TEG earlier this year stalled, and Blackstone and KKR were among the interested bidders. The loan deal is expected to be signed in mid-December. [Extracted from the article]

Barings LLC, an investment company, is planning to launch an Australian private credit fund as an alternative to banks and the bond market. The fund aims to raise A$1.4 billion from institutional and high net-worth investors and will lend the money to Australian corporate borrowers. Private credit is a growing market worldwide, and while it is still emerging in the Asia Pacific region, some notable companies have recently tapped debt funds. Barings' new fund is offering investors net returns of five to six percentage points over the cash rate. [Extracted from the article]

Barings LLC, an investment company, is planning to launch an Australian private credit fund to provide an alternative funding source beyond banks and the bond market. The fund aims to raise A$1.4 billion from institutional and high net-worth investors in the next 12 to 18 months, which will be lent to Australian corporate borrowers. Private credit has become a $1.6 trillion market worldwide as banks become more cautious with risky lending. Barings' new fund is offering investors net returns of five to six percentage points over the cash rate. The company currently has about A$2.6 billion of loan assets in Australia, primarily in healthcare, education, and software. [Extracted from the article]

Australian authorities are investigating a cyber attack that has disrupted several ports operated by DP World Australia. The attack, which was detected on Friday, has led to limited access to four of Australia's largest ports and could last for several days. The disruption is expected to impact trade shipments and the movement of goods into and out of the country. DP World is working with authorities to resolve the incident and minimize the impact on employees, customers, and stakeholders. The Australian Cyber Security Center is providing technical advice and assistance, and the government has convened a crisis meeting to coordinate its response. [Extracted from the article]

A cyberattack has caused limited access to several ports across Australia, potentially disrupting supply chains for days. DP World Plc, one of the world's largest port operators, detected the hack and has restricted access to four major ports. The Australian government is coordinating a response and working with DP World to resume operations. It is unclear if ransomware was involved in the attack. The disruptions come at a time when supply chains are already recovering from the effects of the Covid-19 pandemic and during an ongoing strike by the Maritime Union of Australia. The Australian Cyber Security Center is providing technical advice and assistance, and the National Coordination Mechanism is working to address the impacts of the cyber incident. [Extracted from the article]

The Australian government has called a crisis meeting in response to a cyber attack on several ports operated by DP World Australia. The attack has led to the shutdown of four ports and is expected to impact the nation's supply chains, which are already recovering from the effects of the pandemic. The incident comes at a time when DP World is also facing an ongoing strike by the Maritime Union of Australia. The Australian Cyber Security Center is working with DP World to investigate the attack, and the National Coordination Mechanism is coordinating the government's response. [Extracted from the article]

Australian authorities are holding a meeting to address a cybersecurity incident that has impacted ports operated by DP World Australia. The company has shut down four ports in response to the incident, and its teams are currently working to contain the situation and assess the impact on their systems and data. The Australian government is coordinating its response to the incident, with the National Coordination Mechanism set to meet soon. DP World has restricted access to its Australian port operations as a precautionary measure. [Extracted from the article]

Private credit funds, supported by global investors, are entering Australia's property industry due to a chronic housing shortage and a decrease in real estate lending by banks. These funds are shifting their focus from commercial projects to residential developments, taking advantage of high returns on debt and strong housing demand. However, there are risks involved, such as building firms collapsing due to rising costs and delays in completing projects. Despite these risks, private credit funds are implementing risk management strategies and viewing apartment projects as an alternative to office investments. Australia's economic outlook and the appeal of inflation hedging are also attracting investors to the market. While banks remain dominant in commercial property loans, their market share has decreased, creating opportunities for alternative managers. Private credit funds, such as MaxCap Group Pty and Qualitas, have secured significant investments from global investors. Real estate debt margins have widened, offering attractive returns, but caution is necessary due to potential delays and builder failures. Lenders are conducting due diligence on builders and stress-testing projects to mitigate risks. Loan-to-cost ratios have also decreased in the past 18 months. Valuations in Australia's commercial property sector have held up better compared to the US and Europe, but some experts believe there is still downward pressure on asset prices due to interest rate increases. [Extracted from the article]

Private credit funds, supported by global investors, are entering Australia's property industry due to a chronic housing shortage and a decrease in real estate lending by banks. However, there are risks involved, such as building firms collapsing and material shortages. Despite these risks, private credit funds are taking advantage of the opportunity, implementing risk management strategies to hedge against delays and cost overruns. The debt offers a natural hedge against inflation and attractive returns, with funds citing an average of 5%-6% over the cash rate. Australia's banks have become more risk-averse in real estate lending, creating an opportunity for alternative managers. [Extracted from the article]

The frantic pace of privatisation activity in Australia for the most part of the 1990s is finally starting to slow down, While some states such as Western Australia and South [...]

China Unicom's US$4,92bn IPO in June was a welcome boost for the flagging Chinese privatisation programme, The deal is the largest privatisation offering from the mainland, indeed Asia, excluding Japan, [...]

Indonesia raised US$114.9m last month when it listed Bank Central Asia, The sale was the first public offer by the Indonesian Bank Restructuring Agency (Ibra), as well as the first [...]

Mobile telephony operator China Unicom looks Set to hit the market in June with an IPO of up to US$4bn. The Chinese authorities are hoping the offering will revive investor [...]

PetroChina, the listing vehicle of oil giant China National Petroleum Corp, completed its IPO late in March, raising a total of US$2,89bn (of a possible US$2,8bn-$3,5bn), The muted results reflect [...]

PetroChina, China's second privatisation offering in 2000, officially launched its global offering on March 3. The Chinese government has scaled down the deal size to between US$2.8bn and US$3.5bn (from [...]

South Australia's electricity privatisation programme moves into its next phase with the sale of its generation assets, following the completion of the privatisation of ETSA Power and ETSA Utilities at [...]

China Telecom (Hong Kong) is China's most successful overseas listing to date, The company has raised a total of US$6bn in two forays into the international markets, Investors continue to [...]

China has launched the public offer of Beijing Capital International Airport (BCIA), which may raise up to HK$3.61bn (US$466m), making it the largest public offer of an airport in Asia, [...]

The Hong Kong government is preparing to float shares in railway operator Mass Transit Railway Corporation, in what is being touted as one of the largest privatisations in the country. [...]

With 1999 proving to be a record-breaking year for many countries in their undertaking of privatisation programmes, the global challenge over the next 12 months is for the competitive pace [...]

Hong Kong Electric (HKE) and Cheung Kong Infrastructure (CKI) have clinched South Australia's ETSA Utilities and ETSA Power for A$3.5bn (US$2.2bn) beating competition from Edison Mission Energy and UtiliCorp. The [...]

Japan successfully sold US$15bn worth of Nippon Telegraph and Telephone shares in November. The global co-ordinators reported that demand for the stock was very strong in all tranches, driven by [...]

The Australian government raised more than A$16bn from the secondary offering of telecommunications company Telstra, buoyed by a very strong retail response. The government closed the 16.6% offering on October [...]

Korea has taken the initial steps in the privatization of Korea Electric Power Corp (Kepco) with a preliminary plan to split the generation assets into six generations companies. By Sharon [...]

Victoria's government has raised A$5.3bn through sale of its gas transmission/retail companies, and it has also sold V-line Freight to a group headed by RailAmerica. Yet to be sold are the public transportation assets and Transmission Pipelines Australia. Utiliti Corp/AMP bought Ikon Energy/Multinet for A$1.67bn and Boral/Envestra purchased Energy 21/Stratus for A$1.97bn. The sale prices represented a price/earnings multiple of 16.2., The government of Victoria has raised A$5.3bn (US$3.4bn) with the completion of the sale of its gas transmission/retail companies. It has also sold off V-line Freight to a group led [...]

The privatization of Australian sewage and water treatment plants involves several political issues. Most of these plants are owned by local or state governments rather than the federal government. There are also environmental considerations, Aboriginal rights and tax issues to consider. These issues will cause privatization to take a long time., While a few states, including New South Wales, Queensland and Victoria, have awarded short-term management concessions for water treatment and sewerage plants to private investors, the privatisation of the water [...]

The A$700 million bank loan is split into an amortizing tranche and a term loan tranche. (Bloomberg) -- PAG Asia Capital has lined up A$900 million ($577 million) worth of senior-debt financing for the purchase of bar owner Australian Venue Co., according to people familiar with the matter. [Extracted from the article]

The lender group also includes Barings, KKR & Co., Macquarie Group Ltd., Nomura Holdings Inc., Partners Group, and Pierfront Capital, according to the people. (Bloomberg) -- TPG Inc. has lined up a group of private credit funds led by Ares Management Corp. to help finance its acquisition of Australian funeral home operator InvoCare Ltd., according to people with knowledge of the matter. [Extracted from the article]

(Bloomberg) -- TPG Inc. has lined up a group of private credit funds led by Ares Management Corp. to help finance its acquisition of Australian funeral home operator InvoCare Ltd., according to people with knowledge of the matter. The lender group also includes KKR & Co., Macquarie Group Ltd., Nomura Holdings Inc., Partners Group, and Pierfront Capital, according to the people. [Extracted from the article]

The lender group also includes BPEA EQT, KKR & Co., Macquarie Group Ltd., Nomura Holdings Inc., Partners Group, and Pierfront Capital, according to the people. (Bloomberg) -- TPG Inc. has lined up a group of private credit funds led by Ares Management Corp. to help finance its acquisition of Australian funeral home operator InvoCare Ltd., according to people with knowledge of the matter. [Extracted from the article]

(Bloomberg) -- Australia's two biggest states will struggle to return their budgets to surplus as the economy sags under central bank rate hikes that also sent government borrowing costs soaring, according to ratings agency Moody's Investors Service. New South Wales and Victoria account for just over half of Australia's economy between them. [Extracted from the article]

Private equity fundraising in Asia Pacific remained weak at $5.6 billion in the second quarter, although the figure was more than double the $2.7 billion raised in the previous three months. (Bloomberg) -- Private capital fundraising in Asia Pacific may hit a decade low this year, as investors shift away from China-focused funds, according to London-based research firm Preqin Ltd. Funds raised in the region in the first half of 2023 accounted for 22% of last year's total, Preqin analysts wrote in a quarterly report. [Extracted from the article]

(Bloomberg) -- Private capital fundraising in Asia Pacific may hit a decade low this year, as investors shift away from China-focused funds including private equity, according to London-based research firm Preqin Ltd. Funds raised in the region in the first half of 2023 accounted for 22% of last year's total, Preqin analysts wrote in a quarterly report. Private equity fundraising in Asia Pacific remained weak at $5.6 billion in the second quarter, although the figure was more than double the $2.7 billion raised in the previous three months. [Extracted from the article]

Shares in Japanese cellular telephone concern NTT DoCoMo were listed on the Tokyo Stock Exchange on Oct 22, 1998. The opening price was Y4.6 million per share, an 18% premium to the issue price. The initial public offering raised a total of $18.4 billion, and the overall book was subscribed around 2.5 times, generating demand of around $46 billion. Almost all the highest quality investors from around the world participated in the offering, which was the largest initial public offering so far., Shares in Japanese mobile telephone provider NTT DoCoMo enjoyed a euphoric rise in first day trading on October 22, giving relief to traders and investors who had been worried that [...]

Indonesia continues to experience economic instability, but its privatization programme is progressing gradually. The government has stated that it will consider selling a majority stake in PT Indosat if it receives an attractive offer, and more than 10 expressions of interest have been received from international investors wishing to purchase a stake in plantation concern PT Perkebunan Nusantara IV. It is also thought that port concern Pelabuhan Indonesia II will be put up for sale soon., Indonesia's privatisation programme is moving ahead slowly, despite the volatile investment climate in the country, Although the government has just concluded the sale of a 14% stake in state cement [...]

THE INDONESIAN government has announced a new agreement with Mexico's Cemex to buy a 14% stake in Semen Gresik, with an option to purchase 6% more via a public tender [...]