Germany closing factories at home, opening them in China – Asia Times

Germany’s biggest technological people are moving away from home to more positive circumstances in China as a result of its domestic energy guidelines and economic environment. Germany’s environment is increasingly hostile to business growth due to rising energy costs, high green energy subsidies, and strict regulations.

As a result, some of Germany’s most established companies are downsizing at house, shedding tens of work, while investing heavily in China. This change underlines the tremendous impact of existing policies on Germany’s professional scenery, with long-term implications for the local market and employment.

Here, Asia Times examines the main aspects and the businesses that are changing their business models worldwide.

Higher energy costs in Germany: The result of ideological laws

Germany’s energy policies have caused business energy prices to rise to amounts that are among the highest in the world, behind only the UK and the UK. Actually this high cost level, which has already reached unparalleled levels, cannot be sustained because the average cost for industrial users may have reached about US$ 250 per MWh by 2023.

Germany’s rely on renewable energy sources such as wind and solar, combined with the pulling out of nuclear energy, has increased the government’s reliance on imports and caused significant price fluctuation, eventually putting stress on both business and citizens. Due to rising costs, some businesses are considering reducing their businesses in Germany and starting new ones, especially in China.

Consumption of industrial strength has decreased by more than 16 % in the last two decades.

In 2023, power consumption in Germany’s business sector fell to 3, 282 petajoules, a decrease of 7.8 % compared to 2022. This drop followed an already significant reduction in 2022, when industrial energy use fell by 9.1 % year-on-year to 3, 558 petajoules. Taken together, these cuts represent an overall increases in industrial energy usage of about 16.3 % over the two-year time.

Graphic: Asia Times

Energy source in Germany: Increased trade dependence

German domestic energy production has also changed, with renewable energy sources generating a record 61 % of the country’s energy mix in the first half of 2024. In the first quarter of 2024, Germany’s reliance on foreign energy sources to complement its varying renewable production has increased by 23 % in this period.

Businesses that require steady, affordable electricity are at risk because of the variability of the supply of renewable energy, combined with rising home prices. Germany’s continued emphasis on solar is also expected to increase buy dependency, more discouraging companies from expanding internally.

Large subsidies for solar

In 2024 only, Germany will deliver 20 billion dollars in subsidies to alternative energy producers. Despite quickly falling market prices, these payments guarantee that solar energy suppliers receive set-assigned minimum prices.

The state budget has been burdened greatly by this centrally planned program, which allows the government to pay clean energy suppliers when wholesale prices drop.

In fact, the original budget for subsidies in 2024 was 10.6 billion euros ( US$ 21 billion ), but as energy prices have fallen, the projected need has doubled. Given the government’s commitment to follow the debt brake, these increasing subsidies are putting more pressure on the budget and making negotiations more difficult.

The Nord Stream pipelines and lost Russian gas played a significant role in Germany’s professional decrease.

Germany’s power landscape has been severely affected by the withdrawal of Russian gas imports, which has severely impacted its industrial base and increased energy costs. Russian natural gas was a core of Germany’s power source, providing reliable and affordable energy for years. However, this crucial strength link was cut short by the political effects of the Ukraine war and the Nord Stream pipeline sabotage in September 2022.

The problems rendered Nord Stream 1 entirely useless, and one of the two pipes of Nord Stream 2 was even damaged. Just one part of Nord Stream 2 is still in use and functional. If Germany was willing to engage with Russia politically and economically, President Vladimir Putin just reaffirmed that this operational pipeline was resume sales right away.

Putin and German Chancellor Olaf Scholz recently spoke in conversation, emphasizing that restarting oil travels through Nord Stream 2 was” a matter of pressing a box,” indicating that Russia was willing to provide fuel if Germany cooperated.

German gas had to be replaced by much more expensive liquefied natural gas ( LNG ) imports, primarily from the United States, after Russia’s abrupt loss of oil. These raised prices have undermined Germany’s international business competitiveness.

Putin’s suggestion to restart the last Nord Stream 2 pipeline highlights the corporate sway Russia also has over Europe’s energy source. By offering a possible crutch to Germany’s ailing business, Putin aims to control Germany’s social position on the Ukraine conflict. Germany has abstained from responding to the proposal despite the potential economic benefits of a resumed gas imports.

Falling domestic investment in Germany

Domestic investment has decreased significantly as a result of rising energy costs and regulatory challenges. Private gross fixed capital formation is about 10 % below pre-covid levels.

The situation is even worse for industrial production: Since 2021, Germany’s production level has fallen by more than 9 %. The decline has been even sharper in energy-intensive industries. In those areas, production levels have fallen by more than 18 % in less than two years, which indicates serious issues in industries that are heavily reliant on affordable energy.

Graphic: Asia Times

This decline may have had an impact on the cost structure of these industries because of rising energy costs and the ongoing shift toward renewable energy sources. The trend suggests potential deindustrialization pressures, particularly in sectors that are unable to adjust to rising operating costs.

Many businesses are cutting jobs at home while expanding in China as a result of Germany’s unsustainable cost environment.

The biggest German businesses are investing in China instead of reducing their workforce there.

    Volkswagen: Facing potential job cuts of up to 30, 000 in Germany, Volkswagen has made significant investments in China, including 2.5 billion euros ($ 2.6 billion ) to expand EV production in Hefei and a further 700 million euros in EV technology partnership with Xpeng.
  • Bosch: Announced plans to cut 7, 000 jobs in Germany as it increases investment in China’s e-mobility and automated driving sectors.
  • SAP: &nbsp, Plans to cut 9, 000 to 10, 000 jobs in Germany while reallocating resources to high-growth markets abroad.

As German businesses are putting more and more money under the belt, these cuts are a part of a wider trend. The Association of the Bavarian Economy (vbw ) estimates that the automotive sector in Bavaria alone could lose 106, 000 jobs by 2040, highlighting the far-reaching consequences of Germany’s industrial challenges.

Hildegard Müller, president of the German Association of the Automotive Industry (VDA ), warns that up to 190, 000 jobs across the sector could be at risk by 2035, reflecting the risks associated with Germany’s deindustrialization.

In response to these developments, Scholz’s government has initiated urgent talks with industry leaders. Industry experts contend that these discussions lack the long-term strategic vision required to address fundamental issues like high costs, regulatory pressures, and labor costs. Without significant structural reforms, the German automotive sector risks a further decline in global competitiveness.

Soaring German investment in China: Record levels

German companies continue to place record levels of investment in the nation despite pressure from German government officials and the EU to reduce their dependence on China. In recent years, German investment in China has increased to unheard levels, primarily in the chemicals and automotive industries.

In the first half of 2024 alone, German foreign direct investment ( FDI) in China reached 7.3 billion euros, surpassing the 6.5 billion euro total for the whole of 2023. German automakers and Germany are increasingly influencing Chinese foreign direct investment, accounting for 57 % of total EU investment in China in the first half of 2024, 62 % in 2023, and a record 71 % in 2022.

Key investment projects:

  • Volkswagen: In addition to its 2.5 billion euro investment in Hefei, Volkswagen has increased its joint venture stake in JAC Motor from 50 % to 75 %. This move underlines Volkswagen’s long-term commitment to local vehicle production in China, a market crucial to its growth in electric vehicles.
  • BMW: BMW’s investment in Shenyang not only expands its production, but also its research and development capabilities, aligning with local demand and avoiding the high energy costs in Germany.
  • BASF: The chemical company’s 10 billion euro plant in Guangdong is another example of large-scale localization. By operating in China, BASF lowers German regulations and energy costs while satisfying China’s growing demand for advanced chemical products, particularly in the automotive industry.

These initiatives are based on a localized production approach that helps businesses avoid the difficulties and costs of exporting from Germany and meet Chinese market demands.

Germany’s lead in expanding greenfield investments in the EU

The second quarter of 2024 saw the highest quarterly level to date for greenfield investment by the EU reach a record 3. 6 billion euros. German automakers have been a significant contributor to this growth, accounting for roughly half of all EU investments in China since 2022.

While average quarterly M&amp, A activity declines by 30 % between 2022 and the first half of 2024, greenfield investments by EU firms have steadily increased, with Germany’s automotive and chemicals sectors leading this trend.

Between 2022 and the first half of 2024, 65 % of all EU FDI in China will come from Germany, up from 48 % between 2019 and 2021. The top five European investors in China in 2023 were German companies, underlining Germany’s key role in EU-China investment.

Countries like France, the Netherlands, and Denmark, for example, will contribute only 7-8 % of EU FDI during this time, while the remaining 23 EU Member States will contribute only 12 % of that percentage.

Localizing supply chains and reducing geopolitical risks

German businesses are also restructuring their supply chains to reduce risk as a result of rising energy prices and regulatory uncertainty. Companies have been prompted to localize their operations in key markets as a result of events like the Covid-19 pandemic and the Suez Canal disruption, which have highlighted the fragility of global supply chains. German businesses are responding by increasing direct production in China, which reduces both the cost and the risk of global supply chain disruptions.

According to Friedolin Strack of the Federation of German Industries ( BDI), businesses in China are increasingly “reorganizing their supply chains regionally.” In a world where Chinese EV manufacturers are gaining market share, German automakers like Volkswagen and BMW are focusing on localizing their EV supply chains to stay competitive. German businesses are reducing costs by investing in localized production as well as protecting themselves from global uncertainties.

reducing German exports to China through local production

In the first seven months of 2024, Germany and China’s bilateral trade decreased by 5.7 % as a result of the transition to localized production. German exports to China fell by 11.7 % year-on-year, as companies increasingly serve Chinese consumers directly through local production.

German automakers, which are producing cars directly in China rather than exporting them, are especially attracted to this decline in exports. As less of German-made goods are exported abroad while localized production in China is growing, this could have an impact on Germany’s trade balance.

China’s unique advantages for German companies

While the German government and the European Commission advocate diversification away from China, alternative markets lack China’s infrastructure, market scale and cost efficiency. Countries such as Vietnam and Thailand, while considered as diversification options, cannot match China’s industrial networks, skilled workforce and market size.

Since 2022, more than 50 % of all EU investment in China has come from German companies, mainly in the automotive and chemical sectors. Major projects, such as Volkswagen’s partnership with Xpeng and BASF’s production facility, underline Germany’s strategic focus on China as a key market for long-term growth and competitiveness.

Domestic policy and global competition fueled a strategic reorientation

German companies ‘ decision to restrict domestic investment and expand in China is a stark reflection of Germany’s current energy policy and regulatory pressures. High costs, variable energy supply and regulatory challenges have made Germany a difficult environment for large-scale industrial investment, while China offers stability, cost-efficiency and market growth potential.

These trends suggest that domestic structural issues must be addressed as Germany attempts to maintain its industrial base. Without reforms to lower energy costs and reduce regulatory burdens, the shift of German investment to China is likely to continue, with long-term implications for Germany’s trade balance, industrial output and economic resilience. Even the EU tariffs wo n’t play a significant role.

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FinanceAsia Achievement Awards 2024: the winners | FinanceAsia

FinanceAsia ‘s&nbsp, annual Achievement Awards recognise excellence across the divers financial markets of Asia Pacific ( Apac ) and the Middle East.

The Achievement Awards, which span five distinct categories, include Deal Honors for Apac and the Middle East, House Awards for Apac and the Middle East, and our Dealmaker Poll, show the achievements of major players in these areas as well as those who have shown commitment to their industry.

We’re pleased to announce that the judging process for this year’s awards has now come to an end after receiving almost 1, 000 submissions from our Advisory Board of external specialists and the help of our editorial staff.

Below are the types and winners’ respective links. &nbsp,

The logic behind success collection will get published in our upcoming&nbsp, FinanceAsia&nbsp, reports. Please call the&nbsp, FinanceAsia staff if you have any concerns. &nbsp,

You see all the winners below: &nbsp,

FinanceAsia Achievement Awards 2024: Apac’s best talks

FinanceAsia Achievement Awards 2024: Middle East’s best offers

FinanceAsia Achievement Awards 2024: Dealmaker Poll finalists

FinanceAsia&nbsp, Achievement Awards 2024: Apac’s best funding homes

FinanceAsia&nbsp, Achievement Awards 2024: Middle East’s best funding houses

¬ Capitol Media Limited. All rights reserved.

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FinanceAsia Achievement Awards 2024: Apac’s best deals revealed | FinanceAsia

Excellence in Asia’s financial markets is recognized annually with our Success Awards. Our Achievement Awards, which span two crucial categories– Package Awards and House Awards– emphasize the achievements of key players in the Asia-Pacific and Middle East who have demonstrated dedication to their industry.

We’re pleased to announce that the judging process for this year’s awards has now come to an end after receiving almost 1, 000 submissions from our Advisory Board of external specialists and the help of our editorial staff.

Please consider below a list of this week’s victors of the&nbsp, Deal Awards- Apac&nbsp, type.

The logic behind success collection will get published in our upcoming&nbsp, FinanceAsia reports. It is not a comprehensive list because we have listed the participants who participated based on research and awards entries. Please call the&nbsp, FinanceAsia group if you have any concerns. &nbsp,

North Asia = Japan, South Korea, Taiwan&nbsp,

South Asia = India, Pakistan, Bangladesh, Sri Lanka

Southeast Asia = Indonesia, Malaysia, Philippines, Thailand, Vietnam

 

&gt, BEST BOND DEALS &lt,

AUSTRALIA / NEW ZEALAND

CSL Financial’s$ 1.25 billion dual-tranche 144A/Reg S top giving

Members: Citi, Bank of America, JP Morgan, HSBC

Highly commended: AOFM’s invitational$ 7 billion efficient government bond

Members: &nbsp, Commonwealth Bank of Australia, Deutsche Bank, National Australia Bank, UBS, Australia Branch, Westpac Banking Corporation

Chinese- Abroad

3-year, responsible dim-sum bond issued by Jingzhou Municipal Urban Development Holding Group

Members: &nbsp, Bank of China, Caitong International, Industrial Securities, CSC Financial, CITIC Securities, CMB Wing Lung Bank, CMBC Capital, CNCB Investment, Guolian Securities, Guoyuan International, Haitong International, ICBC International, Shanghai Pudong Development Bank, Shenwan Hongyuan Securities, SPDB International, TF worldwide, CICC

Chinese- Inland

National Bank of Canada’s Rmb5 billion 2-year tiger relationship release

Members: Standard Chartered, Deutsche Bank, DBS, CITIC Securities, CMB Securities

Highly commended: China Baowu Steel Group’s Rmb10 billion business relationship release

Members: CITIC Securities, Guotai Junan Securities, Shenwan Hongyuan Securities, CICC

&nbsp, HONG KONG Radar / APAC

HKSAR’s USD&amp, EUR&amp, CNH multi-currency natural tie giving

Members: Crédit Agricole, HSBC, Citi, JP Morgan, BNP Paribas, BofA, Morgan Stanley, UBS, Mizuho, Bank of China Hong Kong, ICBC Asia, Bank of Communications, Standard Chartered

Highly commended: ILBS 2 by Bauhinia

Members: Hong Kong Mortgage Corporation, CICC, ING Bank, MUFG, Natixis, Standard Chartered

NORTH ASIA

LG Electronic’s$ 500 million 144A/Reg S 3-year and$ 300 million 5-year two round

Members: BNP Paribas, Citi, HSBC, JP Morgan, Korea Development Bank, Standard Chartered

SINGAPORE

Exams ‘$ 500 million unprotected fixed rate documents due 2029

Members: DBS, BNP Paribas, MUFG, OCBC, HSBC

Highly commended: Yinson Production’s$ 500 million older secured 5-year relationship release

Members: Standard Chartered, Holman Fenwick Willan, Stephenson Harwood, collaboration of 13 loans

SOUTH ASIA

Kashf’s PKR2.5 billion female connection release

Members: Infra Zamin Pakistan, Arif Habib, Pakistan Credit Rating Agency, Vellani &amp, Vellani, Pak Brunei Investment Company, Bank Alfalah, Bank of Pubjab, Standard Chartered Pakistan

SOUTHEAST ASIA

SOUTHEAST ASIA/ PHILIPPINES

Maynilad Water Services PHP15 billion orange ties

Members: BPI Capital, BDO Capital &amp, Investment, First Metro Investment, East West Banking

&nbsp, MALAYSIA / HIGHLY COMMENDED ( SOUTHEAST ASIA)

Asean Green moderate term papers under RM500 million Exio Logistics clean centers

Members: Hong Leong Investment Bank

HIGHLY RECOMMENDED ( SOUTHEAST ASIA) THAILAND

Minor International’s THB billion securities via private location

Members: Standard Chartered, Bangkok Bank, Bank of Ayudhya Public Company, Kasikornbank, Krungthai Bank, Kiatnakin Phatra Securities, The Siam Commercial Bank

INDONESIA

Republic of Indonesia$ 2.05 billion international bond giving

Participants: ANZ, BofA Securities, Deutsche Bank ( Singapore ), Morgan Stanley, UBS ( Singapore ), BRI Danereksa Sekuritas, Trimegah Sekuritas Indonesia, Mayer Brown

VIETNAM

Hai An Transport and Stevedoring JSC’s VND500 billion foldable relationship

Members: SSI Securities

 

&gt, BEST EQUITY DEALS &lt,

AUSTRALIA / NEW ZEALAND

A$ 1.435 billion block trade in Worley

Members: Citi, Goldman Sachs, Allens

Highly commended: Treasury Wine Estate’s A$ 825 million Paitreo to support get DAOU Vineyards

Members: UBS, Macquarie Capital

Chinese- Abroad / APAC

Alibaba’s$ 5 billion convertible bond &nbsp,$ 1.2 billion parallel stock purchase

Members: Citi, JP Morgan, Morgan Stanley, Barclays, HSBC

Highly commended: &nbsp, Lotus Tech’s company mixture with L Catterton, people listing in the US through a De-SPAC design, approximately$ 880 million of personal investment in public equity funding and convertible information

Members: Han Kun Law, Skadden, Kirkland &amp, Ellis, Fangda Partners&nbsp,

Chinese- Inland 

Sinopec’s A-share personal position

Members: CICC, Guangfa Securities, CITIC Securities

HONG KONG Radar

Zhejiang Expressway’s HK$ 6.7 billion &nbsp, right issue

Members: BNP Paribas, DBS, CLSA, CICC, Zheshang International

Alibaba’s$ 5 billion convertible bond $ 1.2 billion parallel share buyback

 

Members: Citi, JP Morgan, Morgan Stanley, Barclays, HSBC

SINGAPORE

Personal position and preferred giving for CapitaLand Integrated Commercial REIT for S$ 1.1 billion

Members: United Overseas Bank, JP Morgan, Venture Law, Allen &amp, Gledhill

Highly commended: Reverse&nbsp, takover of 3Cnergy by DTP Inter Holdings Corporation for a consideration of approximately S$ 443.8 million &nbsp,

Members: PrimePartners Corporation Finance, Allen &amp, Gledhill LLP

SOUTH ASIA

JSW Energy’s$ 600 million qualified administrative position

Members: Jefferies India, Khaitan &amp, Co, Shardul Amarchand Mangaldas &amp, Co

Highly commended: &nbsp, Vodafone Idea’s$ 2.15 billion follow-on open offering of capital stock

Members: Axis Capital, Jefferies, SBI Capital, Sidley Austin, Cyril Amarchand Mangaldas &amp, Co, AZB &amp, Lovers

SOUTHEAST ASIA

Bursa Malaysia Offering for Johor Plantations Group

Members: RHB Investment Bank, AmInvestment Bank, CIMB Investment Bank, CLSA Singapore, CLSA Securities Malaysia, Affin Hwang Investment Bank

Highly commended: &nbsp, San Miguel Corporation’s PHP34 billion preferred shares&nbsp,

Members: &nbsp, SB Capital, Bank of Commerce, BDO Capital &amp, Investment, China Bank Capital, Asia United Bank, Bank of Commerce, BPI Capital, Land Bank of the Philippines, PNB Capital and Investment, RCBC Capital, Union Bank of the Philippines

 

&gt, BEST INFRASTRUCTURE DEALS &lt,

AUSTRALIA / NEW ZEALAND

Blackstone’s merger of Airtrunk

Members: Deutsche Bank, Morgan Stanley, RCBC Capital Markets, Macquarie Capital, Goldman Sachs

Highly commended: Contact Energy’s suggested merger of Manawa Energy

Members: UBS New Zealand, Cameron Partners/Rothschild &amp, Co, Lazard Australia, Bell Gully, Harmos Horton Lusk

Chinese- Inland

CAMC-China Resources TBEA Renewable Energy’s Closed-end Infrastructure Securities Investment Fund

Members: CITIC Securities, China Asset Management, Agricultural Bank of China, Zhong Lun Law Firm

HONG KONG Radar

ILBS 2 by Bauhinia

Members: CICC, ING Bank, MUFG, Natixis, Standard Chartered

SINGAPORE / APAC

Yinson Boronia Movie’s annual project relationship with a$ 1.035 billion Top Secured Notes expected 2042

Members: Santander, Citi, Norton Rose Fulrbright, Cescon Barrieu

Highly commended: Stonepeak’s very structured preferred corporate investment into AGP Sustainable Real Assets

Members: Sidley Austin, Clifford Chance, King &amp, Wood Mallesons, Shardul Amarchand Mangaldas &amp, Co, NautaDutilh, Burness Paull, WongPartnership, Setterwalls Advokatbyra&nbsp,

SOUTH ASIA

AdaniConneX’s$ 1.44 billion Sustainability-Linked Project Finance for an under-construction information centre investment in India

Members: ING Bank, Intesa Sanpaolo, KfW IPEX, MUFG, Natixis, Standard Chartered, Societe Generale, SMBC

SOUTHEAST ASIA

SOUTHEAST ASIA/ INDONESIA

ADIA and APG’s acquisition of a 53.5 % stake in Rafflesia Investasi&nbsp,

Members: Rothschild &amp, Co

&nbsp, PHILIPPINES / HIGHLY COMMENDED ( SOUTHEAST ASIA)

New NAIA Infrastructure Corporation’s PHP80 billion syndicated name loan service

Participants: Bank of Commerce, BDO Capital &amp, Investment, Asia United Bank, China Bank Capital, SB Capital Investment, BDO Unibank, China Banking, Development Bank of the Philippines, Security Bank

MALAYSIA

Worldwide Holdings ‘ RM999 million syndicated clean leasing facility

Members: Maybank Investment Bank

VIETNAM

Petrovietnam Power’s XNhon Trach 3&amp, 4 Energy Flower

Members: Citi, ING

 

&gt, BEST Offering &lt,

Chinese- Abroad

J&amp, T Express ‘$ 500 million identifying on HKEX

Participants: CICC, Morgan Stanley, Bank of America Securities, UBS AG ( HK), CCB International Capital, CMB International Capital, Huatai Financial, BOCI Asia, ABCI Capital

Chinese- Inland 

Grandtop Yongxing’s Rmb2.43 billion Offering

Members: CITIC Securities, Guotai Junan Securities

HONG KONG Radar /APAC

Super Hi’s double list on Nasdaq

Members: Kirkland &amp, Ellis, Skadden, Arendt, Loyens, Freshfields, Linklaters and Fried Frank, White &amp, Event

Highly commended: &nbsp, QuantumPharm’s identifying on HKEX

Members: CLSA, CITIC Securities, CICC, Jefferies, Deutsche Bank, CMB International, Sidley Austin, Fangda Partners, Herbert Smith Freehills, JunHe, PwC

NORTH ASIA

Kokusai Electric ‘s&nbsp, ¥124.5 billion ($ 831.7 million ) &nbsp, listing on Tokyo Stock Exchange

Participants: KKR ( GP), Mitsubishi UFJ Securities

SOUTH ASIA

NRB Bank’s BDT1 billion naming in Bangladesh

Members: UCB Investment, Shahjalal Equity Management

Highly commended: OLA Electronic’s list in India

Members: Kotak Mahindra Capital, Citi, BofA Securities, Goldman Sachs, Axis Capital, ICICI Securities, SBI Capital Markets, BOB Capital Markets

SOUTHEAST ASIA

Speed Mart Retail Holdings RM13.9 billion Investor on Bursa Malaysia

Members: CIMB, Affin Hwang Investment Bank, RHB Investment Bank, Lee Choon Wan &amp, Co

Highlgy commended: Johor Plantations Group’s RM735 million Offering on Bursa Malaysia

Members: RHB Investment Bank, Latham &amp, Watkins, AmInvestment Bank, CIMBC Investment Bank, CLSA Singapore, CLSA Securities Malaysia, Affin Hwang Investment Bank

 

&gt, BEST ISLAMIC FINANCE DEALS &lt,

SINGAPORE

Wealthy Pink’s S$ 2.7 billion normal expression product and Muslim Murabahah features

Members: DBS Bank, Malayan Banking Singapore branch, Sumitomo Mitsui Banking Corporation Singapore branch, United Overseas Bank ( UOB), Allen &amp, Gledhill

SOUTH ASIA

Islamic Bank Bangladesh ‘s&nbsp, BDT8 billion Mudaraba convertible, non-convertible, unsecured subordinated bond

Members: UCB Investment

SOUTHEAST ASIA

SOUTHEAST ASIA/ APAC / INDONESIA

Republic of Indonesia’s$ 2.35 billion 144A sukuk offering

Members: MUFG, Citi, Dubai Islamic Bank, HSBC, Mandiri Securities, BRI Danareksa Sekurta, PR Trimegah Sekuritas Indonesia

Extremely RECOMMENDED ( SOUTHEAST ASIA)/ MALAYSIA

Gold Formula ABS’s sukuk, up to RM94.81 million in differenent tranches

Members: New Paradigm Securities, Silver Formula Capital, Public Investment Bank, Adnan Sundra &amp, Low

PHILIPPINES

Republic of Philippines ‘ Sukuk Trust’s$ 1 billion issuing

Members: Citi, Deutsche Bank, Dubai Islamic Bank, HSBC, MUFG, Standard Chartered

 

&gt, BEST M&amp, A DEALS &lt,

AUSTRALIA / NEW ZEALAND / APAC

Obayashi Corporation acquires 50 % of Eastland Generation for a$ 503 million implied business benefit.

Members: Forsyth Barr, Chapman Tripp

Highly commended: PSP Consortium’s A$ 2.5 billion merger of Costa Group

Members: Citi, JP Morgan, Allen &amp, Gledhill, Kirkland &amp, Ellis

Chinese- Abroad

Grifols ‘ Sale of 20 % stake in Shanghai RAAS to Haier for$ 1.8 billion

Members: Nomura Securties, CICC, Osborne Clarke, JunHe, Clifford Chance, King &amp, Wood Mallesons

Highly commended: &nbsp, Royal Golden Eagle’s CNH15 billion syndicated payment for the acquisition of Vinda International Holdings

Participants: Bank of China Macau, BNP Paribas, CICC, Linklaters

Chinese- Inland 

$ 8.3 billion sale of 60 % stake in Zhuhai Wanda to PAG-led consortium

Members: Deutsche Bank

Highly commended: &nbsp, NISCO merger by CITIC Pacific&nbsp,

Members: CITIC Securities

HONG KONG Radar

Asia Pacific Resources International’s HK$ 21.6 billion volunteer public present for Vinda International Holdings

Members: HSBC, Norton Rose Fulbright, Bank of America, BNP Paribas, CICC

Highly commended: &nbsp, HKT price of 40 % stake in its silent community resources to China Merchants Capital

Members: Deutsche Bank, Clifford Chance

NORTH ASIA

Renesas Electronics ‘ 100 % merger of Altium

Members: &nbsp, Deutsche Bank, JP Morgan, King &amp, Wood Mallesons, Reed Smith, DLA Piper, Covington &amp, Burling, Nagashima Ohno &amp, Tsunematsu&nbsp,

Highly commended: &nbsp, WT Microelectronics ‘$ 3.8 billion merger of Future Electronics&nbsp,

Members: &nbsp, Citi, Canaccord Genuity Corp., Skadden, Arps, Slate, Meagher &amp, Flom, Osler, Hoskin &amp, Harcourt, Tsar &amp, Tsai Law Firm, Mintz, Levin, Cohn, Ferris, Glocsky and Popeo, P. C.

SINGAPORE

Purchase of Eu Yan Sang to a consortium led by Mitsui & Co. and Rohto Pharmaceutical

Members: Deutsche Bank, UBS, Wong Partnership

SOUTH ASIA

MHIL’s consolidation of Sahara Hospital

Members: Standard Chartered

Highly commended: &nbsp, Acquisition by Saudi Aramco Oil Company of a 40 % stake in Gas and Oil Pakistan&nbsp,

Members: Standard Chartered

SOUTHEAST ASIA

SOUTHEAST ASIA/ THAILAND

Acquisition of 65.99 % shares in Esso ( Thailand ) Public Company by Bangchak Corporation Public Company

Members: Kiatnakin Phatra Securities, JP Morgan, DLA Piper

Highly commended: ThaiBev return from home business via promote transfer

Members: DBS, WongPartnership

INDONESIA 

&nbsp, Medco Energi Internasional’s$ 713 million acquisition of a 20 % interest in each of Block 60 and Block 48

Members: Standard Chartered

MALAYSIA 

Purchase of Ramsay Sime Darby Health CA by Columbia Asset Healthcate and Sime Darby Healthcare

Members: Deutsche Bank

PHILIPPINES 

Merger between Robinsons Bank and Bank of the Philippine Islands

Members: BPI Corporation

VIETNAM

Thomson Medical Group’s merger of FV Hospital

Members: Maybank Investment Bank

 

&gt, BEST PRIVATE EQUITY DEALS &lt,

AUSTRALIA / NEW ZEALAND / APAC

Blackstone’s merger of Airtrunk

 Members: Deutsche Bank, Morgan Stanley, RCBC Capital Markets, Macquarie Capital, Goldman Sachs

Chinese- Abroad

Carlyle on sales of curiosity in McDonald’s China to McDonald’s Company

Members: &nbsp, Kirkland &amp, Ellis, JunHe, Jones Day

Highly commended: &nbsp, Advent International’s acquisition of a 29 % interest in Seek Pet Food

Participants: Boyu Capital ( investor )

HONG KONG Radar

PAG’s$ 8.3 billion Joint Investment in Newland Commercial Management

Members: Simpson Thacher &amp, Bartlett, A&amp, O Shearman

NORTH ASIA

Carlyle Group’s merger of KFC Holdings Japan

Members: Kirkland &amp, Ellis, Nishimura &amp, Asahi, Linklaters, Mori Hamada &amp, Matsumoto, Nagashima Ohno &amp, Tsunematsu&nbsp,

Highly commended: &nbsp, Blackstone’s sales of Geo-Young to MBK lovers

Members: &nbsp, Deutsche Bank, Morgan Stanley, Goldman Sachs, Samsung Securities, K&amp, C Cleary Gottlieb, Steen &amp, Hamilton LLP, Ropes &amp, Gray

SOUTH ASIA

ani’s Ispahani’s acquisition of a small interest in Tampaco Sheets

Members: UCB Investment, Farooq & Associates

SOUTHEAST ASIA

Asia Pacific Education Holdings ‘ sale of the APIIT Education Group to TPG’s The Rise Funds ( stake sold by KV Asia Capital )

Members: Rahmat Lim &amp, Partners, &nbsp,

Highly commended: BlackRock’s Climate Finance Partnership’s funding in Ditrolic Energy

Members: Clifford Chance

 

&gt, BEST PROJECT FINANCE DEALS &lt,

AUSTRALIA / NEW ZEALAND

MREH’s A$ 400 million debt funding

Members: &nbsp, Société Générale, Westpac, Standard Chartered, Export Development Canada, White &amp, Case, Ashurst

Chinese- Inland 

CSPC’s$ 5.5 billion term loan and a$ 450 million working capital facility

Members: CNOOC Finance Corporation, Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, Zhong Lun Law Company

NORTH ASIA

&nbsp, ARE’s 20-year c. TWD8.25 billion job financing

Members: CTBC Bank, MUFG, E. SUN Bank, SMBC, Standard Chartered, KGI

SINGAPORE / APAC

BIC V investment size of approximately$ 508.3 million

Members: Citi, Standard Chartered, MUFG, Natixis, Overseas-Chinese Banking Corporation, &nbsp, Société Générale

SOUTH ASIA

Serentica’s venture funding of 200 MW RTC

Members: Société Générale, Cooperative Rabobank U. A., Export-Import Bank of India, India Infrastructure Finance Company, MUFG, YES Bank, KKR, Twinstar Overseas, Dentons, Luthra &amp, Luthra, Norton Rose Fulbright

SOUTHEAST ASIA

SOUTHEAST ASIA/ INDONESIA

Climmangis Citibung Tollways CDS hospital

Members: Indonesia Infrastructure Fund, BNI, &nbsp, Siahaan Indarmis, Andarumi &amp, Partners

Extremely RECOMMENDED ( SOUTHEAST ASIA)/ MALAYSIA

World Holdings ‘ spare to power project

Participants: Bank

HIGHLY RECOMMENDED ( SOUTHEAST ASIA ) PHILIPPINES

AltEnergy’s PHP8 billion top safe word product

Members: BPI Capital, Security Bank

VIETNAM 

Petrovietnam Power Company’s Nohn Trach 3&amp, 4 Energy Flower

Members: Citi, ING

 

&gt, BEST PROPERTY DEALS &lt,

AUSTRALIA / NEW ZEALAND

Blackstone’s merger of Airtrunk

Members: Deutsche Bank, Morgan Stanley, RCBC Capital Markets, Macquarie Capital, Goldman Sachs

Chinese- Abroad

Bain Capital’s$ 250 million cooperative venture with DNE for China New Economy Network

Participants ( legal advisors ): Kirkland &amp, Ellis, King &amp, Wood Mallesons&nbsp,

Chinese- Inland

Link REIT’s acquisition of China Vanke’s 50 % stake in Link Plaza Qibao

Participants ( legal advisors ): Zhong Lun Law Firm, Cushman &amp, Wakefield

HONG KONG Radar

HK$ 14.438 billion sustainability-linked syndicated term and revolving loan facilities for 16 borrowers, sponsored by Gateway Real Estate Fund V L. P., Gateway V Co-Investment ( Doris ), L. P. (” Gaw” ), Great Wall Pan Asia Holdings Limited (” Great Wall” ) and GLQ Broad Street Holdings Ltd

Members: ANZ, Standard Chartered, UOB

SINGAPORE

Supreme JV Holding Pte Ltd | Lendlease &amp, Warburg Pincus ‘ S$ 1.065 billion top secured term loan and lender ensure features

Members: DBS, HSBC, UOB

Highly commended: &nbsp, Digital Core REIT’s$ 120 million personal location

Members: DBS, Citi, Bank of America, BNP Paribas, OCBC, UOB

SOUTHEAST ASIA

 SOUTHEAST ASIA/ APAC / THAILAND

 ThaiBev’s exit from the property business via a share swap with its parent for majority ownership in F&N

Members: DBS

&nbsp, INDONESIA / HIGHLY COMMENDED ( SOUTHEAST ASIA )

PT Putragaya Wahana has a top secured alternative payment service worth IDR 3.7 trillion and a term loan facility.

Participants: UOB

MALAYSIA

ESIM Capital’s green SRI sukuk

Participants: New Paradigm, UOB ( Malaysia )

PHILIPPINES

Vista Land’s$ 300million 9.375 % senior unsecured fixed rate notes due 2029

Members: DBS, HSBC, Union Bank of the Philippines

 

&gt, BEST STRUCTURED FINANCE DEAL &lt,

Chinese- Abroad

The acquisition of Hollysys Automation Technologies Ltd. by Ascendent Capital Partners&nbsp,

Participants: Industrial Bank HK

Chinese- Inland 

CMB Financial Leasing Co., Ltd’s ( CMBFL ) Rmb1.6 billion Sustainable Development Loan&nbsp,

Participants: MUFG, SMBC, Fubon, Bank of China, Bank of Shanghai

Highly commended: &nbsp, Xinyue’s Rmb600 million Micro Business Loan ABN from Qifu Technology,

Participants: HSBC

HONG KONG Radar / APAC

ILBS 2 by Bauhinia

Members: CICC, ING Bank, MUFG, Natixis, Standard Chartered

Highly commended: The acquisition of Hollysys Automation Technologies Ltd. by Ascendent Capital Partners&nbsp,

Participants: Industrial Bank HK

NORTH ASIA

WT Microelectronics and Morrihan International Corp’s$ 3.8 billion Bridge Facility

Participants: Citi

Highly commended: &nbsp, Korean Airline’s$ 208 million-equivalent Samurai Sustainability-Linked Loan

Participants: MUFG, SMBC

SINGAPORE

CIS ‘ Senior Secured S$ 300 million Bridge S$ 280 million Take Out Term Loan Facility

Members: DBS, Deutsche Bank, UOB KayHian

Highly commended: &nbsp, The government of Singapore’s S$ 2.5 billion green bonds

Members: DBS, Deutsche Bank, UOB KayHian

SOUTH ASIA

Fund raise of Rs4.65 billion ($ 56 million ) for Aliens Developers Private Ltd&nbsp,

Participants: Azalea Capital Partners

SOUTHEAST ASIA&nbsp,

Ayala Land’s PHP6 billion Asean sustainability linked bond

Participants: BDO Capital, BPI Capital, China Bank Capital, Land Bank of the Phiippines, SB Capital, RCBC Capital )

Highly commended: &nbsp, Exsim Capital Resources ‘ tranche 5 Asean green SRI sukuk

Participants: New Paradigm

 

&gt, BEST SUSTAINABLE FINANCE DEALS &lt,

AUSTRALIA / NEW ZEALAND

Cromwell Property Group’s A$ 1.2 billion Green and Sustainability-Linked Loan&nbsp,

Participants: ANZ, Bank of China Sydney, Clean Energy Finance Corporation, CBA, Credit Agricole, ING Bank, NAB, Societe Generale

Highly commended: &nbsp, MCP Wholesale Investment Trust’s A$ 500 million Sustainability-Linked Revolving Credit Facility

Members: Standard Chartered

Chinese- Abroad

Bank of China’s CNH and USD multi-tranche BRI-partner sustainability notes

Participants: HSBC

Highly commended: &nbsp, China Construction Bank Financial Leasing’s$ 150 million Long Term Transition Shipping Finance

Members: Standard Chartered

HONG KONG Radar

West Kowloon Cultural District Authority’s HK$ 5 billion sustainability-linked term and revolving facilities

Members: Standard Chartered

NORTH ASIA

Posco’s$ 500 million 3-year Green 144A/Reg S senior unsecured bond

Participants: HSBC

Highly commended: Far Eastern New Century’s NTD2.5 billion Corporate Sustainable Exchangeable Bond

Participants: KGI Securities, SinoPac Bank, Oriental Securities

SINGAPORE

Impact Investment Exchange’s$ 88 million 4-year Women’s Livelihood Bond

Participants: ANZ, Standard Chartered

Highly commended: EJA’s$ 500 million Revolving Credit Facility

Members: Standard Chartered

SOUTH ASIA

AdaniConneX’s$ 875 million syndicated sustainability-linked loan

Members: ING Bank, Intesa Sanpaolo, KfW IPEX, MUFG, Natixis, Standard Chartered, Societe Generale, SMBC

Highly commended: Kashf’s PKR2.5 billion female connection release

Participants: &nbsp, Infra Zamin Pakistan, Arif Habib, Pakistan Credit Rating Agency, Vellani &amp, Vellani, Pak Brunei Investment Company, Bank Alfalah, Bank of Pubjab, Standard Chartered Pakistan

 SOUTHEAST ASIA/ APAC / MALAYSIA

Exism Capital Resources ‘ special purpose funding vehicle ( RM3 billion )

Participants: NewParadigm Securities, United Overseas Bank ( UOB ) Malaysia, Adnan Sundra &amp, Lo

HIGHLY RECOMMENDED ( SOUTHEAST ASIA ) PHILIPPINES

partnership between Rizal Commercial Banking and Citicore Renewable Energy Corporation ( CREC )

Participants: Rizal Commercial Banking

INDONESIA 

Republic of Indonesia$ 2 billion dual-tranche trust certificates

Participants: CIMB, Citigroup Global Markets, Dubai Islamic Bank, Mandiri Securities, Standard Chartered, White &amp, Case, Trimegah Sekuritas, BRI Danareksa Sekuritas, Thamrin &amp, Rekan

THAILAND 

Thai Union Group’s Thb11.5 billion sustainability-linked loan

Participants: MUFG

 

&gt, BEST SYNDICATED LOAN DEALS &lt,

AUSTRALIA / NEW ZEALAND

Orora’s acquisition of Saverglass SAS

Participants: AFRY Capital, Citi, Macquarie Capital

Highly commended: &nbsp, Viva Energy A$ 1 billion Term Loan Facilities

Members: DBS, ANZ, Mizuho, MUFG, NAB, UOB, WBC, plus consortium of 22 lenders

Chinese- Abroad

Royal Golden Eagle’s CNH15 billion syndicated loan for the acquisition of Vinda International Holdings

Participants: Bank of China Macau Branch, BNP Paribas, CICC, Linklaters

Highly commended: Kuaishou’s 3-year CNH9 billion syndicated term loan facility

Participants: China Merchants Bank, Pudong Development Bank, CITIC Bank, Industrial Bank, Ping An Bank, HSBC China, Minsheng Bank, Bank of Beijing, Hang Seng Bank, Bank of Faba-Pakistan China, Standard Chartered China, Jiangsu Bank

HONG KONG Radar

United Asia Finance’s HK$ 3.9 million syndicated term loan and revolving credit facility

Members: Standard Chartered, China Zheshang Bank, KGI Bank, Bank Singpac, Nanyang Commercial Bank

Highly commended: &nbsp, ICBCIL Finance Company Limited’s$ 1 billion term loan facility

Participants: Industrial and Commercial Bank of China ( Asia ), Agricultural Bank of China Hong Kong, OCBC, Ping An Bank, Nanyang Commercial Bank, China Guangfa Bank, Bank of Communications, China CITIC Bank, Dah Sing Bank, DBS Bank, The Norinchukin Bank, The Korea Development Bank, Bank of China Frankfurt Branch, Chiyu Banking Corporation, Tai Fung Bank, Bank of China Rotterdam Branch, Banque Internationale a Luxembourg

SINGAPORE

Seatrium’s S$ 1.1 billion committed syndicated bank guarantee facility

Participants: Simmons &amp, Simmons, Standard Chartered, &nbsp, DBS Bank, Shanghai Pudong Development Bank, Mizuho Bank, Emirates NBD Bank, First Abu Dhabi Bank, Malayan Banking Berhad, Clifford Capital

Highly commended: &nbsp, Aircastle’s$ 600 million syndicated revolving credit facility

Participants: Bank of China, Caixa, CBA, SMTB, CUB, Taishin, plus lending consortium of 15 banks

SOUTH ASIA

JSW Steel Limited’s$ 900 million syndicated term loan facility

Members: DBS, BNP Paribas, CTBC, FAB, HSBC, Mashreq, Standard Chartered, SMBC, Intesa Sanpaolo, APICORP, CBD, DZ, BOT, CHCB, TIB, TBB, FCB, SBI Shinsei, BOK, LBT, TW Shin Kong, Taichung Commercial, TCB, San-in-Good, Hyakugo Bank

Highly commended: &nbsp, Beacon Pharmaceutical’s BDT3.768.8 billion syndicated term loan facility

Members: UCB Investment, Eastern Bank, Janata Bank, United Commercial Bank, Bank Asia, Jamuna Bank, ONE Bank, Rupali Bank

SOUTHEAST ASIA

SOUTHEAST ASIA/ APAC / INDONESIA 

PT Mineral Industri Indonesia ( Persero )$ 1.5 billion senior unsecured term loan and revolving credit facilities

Members: DBS, Bank of China (Hong Kong), BNP Paribas, BNI, Citi, Maybank, Mizuho, MUFG, OCBC, SCB, SMBC, UOB

 HIGHLY RECOMMENDED ( SOUTHEAST ASIA) THAILAND

Syndicated financing of Thb7.6 billion for Italian-Thai Development Public Company

Participants: Weerawong C&P, Bangkok Bank, Kasikornbank, Siam Commercial Bank, Krung Thai Bank

 MALAYSIA 

LQ Retail and LQ Hotel have secured green term loans worth MR2 billion.

Participants: UOB&nbsp,

PHILIPPINES

San Miguel Corporation’s$ 2 billion five-year syndicated term loan facility

Participants ( according to sources cited by Bloomberg ): Standard Chartered, ANZ, Bank of China ( Hong Kong ), CTBC Bank, ING, Maybank Kim Eng Securities, Mitisubishi Financial Group, Mizuho Bank, Rabobank, Sumitomo Mitsui Banking&nbsp,

VIETNAM 

Techcom Securities ‘$ 175 million syndicated loan facility

Members: Standard Chartered, CTCB Bank, Taipei Fubon Commercial Bank, Taishin International Bank, KGI Bank

 

&gt, BEST VENTURE CAPITAL DEALS &lt,

SINGAPORE

YouTrip’s$ 50 million Series B fundraising

Participants: Lightspeed Ventures ( lead investor ), Allen &amp, Gledhill

SOUTHEAST ASIA/ APAC 

Fano Labs investment by Openspace Ventures

Participants: Openspace Ventures ( lead investor )

 

&gt, MOST INNOVATIVE DEALS &lt,

AUSTRALIA / NEW ZEALAND

&nbsp, Alcoa’s$ 3 billion acquisition of Alumina

Participants: BofA Securities, Flagstaff Partners, JP Morgan, UBS

Highly commended: &nbsp, CRH’s A$ 2.9 billion acquisition of Adbr

Participants: UBS, Macquarie, Barrenjoey, Morgan Stanley, Gilbert &amp, Tobin, HSF

Chinese- Abroad

The acquisition of Hollysys Automation Technologies Ltd. by Ascendent Capital Partners&nbsp,

Participant ( s ): Industrial Bank Hong Kong

Highly commended: Alibaba’s$ 5 billion convertible bond &nbsp,$ 1.2 billion parallel stock purchase

Members: Citi, JP Morgan, Morgan Stanley, Barclays, HSBC

Chinese- Inland

Nanjing Iron and Steel Group’s acquisition by CITIC Pacific&nbsp,

Members: CITIC Securities

Highly commended: State Grid Overseas Investment’s Rmb1 billion panda bond issuance

Members: CITIC Securities, ICBC, Bank of China

HONG KONG Radar / APAC

Privatisation of L’Occitane

Participants ( legal advisors ): Kirkland &amp, Ellis, Skadden, Arendt, Loyens, Freshfields, Linklaters and Fried Frank, White &amp, Case&nbsp,

Highly commended: Super Hi’s double list on Nasdaq

Participants ( legal advisors ): Kirkland &amp, Ellis, Skadden, Arendt, Loyens, Freshfields, Linklaters and Fried Frank, White &amp, Case

Highly commended: HKSAR Government’s$ 750 million equivalent digital green bonds

Participants: Bank of China Hong Kong, Credit Agricole CIB, Goldman Sachs, ICBC Asia, UBS, HSBC

NORTH ASIA

SK Bioscience’s acquisition of 60 % stake in IDT group

Participants: Deutshce Bank, Commerzbank, Norddeutsche Landesbank, Sullivan &amp, Cromwell&nbsp,

SINGAPORE

STT GDC’s issuance of S$ 450 million 5.70 % sustainability-linked perpetual securities

Members: Standard Chartered

SOUTH ASIA

Refinancing for East India’s LNG Regasification Terminal Project in Dhamra, Odisha

Members: Standard Chartered

Highly commended: Kashf’s PKR2.5 billion female connection release

Members: Infra Zamin Pakistan, Arif Habib, Pakistan Credit Rating Agency, Vellani &amp, Vellani, Pak Brunei Investment Company, Bank Alfalah, Bank of Pubjab, Standard Chartered Pakistan

SOUTHEAST ASIA

SOUTHEAST ASIA/ THAILAND

ThaiBev’s property exit and share swap

Members: DBS, WongPartnership

Highly recommended: the Filipino Aquino International Airport’s rehabilitation project, which offers PHP 80 billion syndicated term loans.

Participants: BDO Capital

HIGHLY RECOMMENDED ( SOUTHEAST ASIA ) PHILIPPINES

Ayala Land’s PHP6 billion sustainability-linked bonds

Participants: BDO Capital, BPI Capital, China Bank Capital, Land Bank of the Philippines, RCBC Capital, SB Capital Investment

INDONESIA

PT Charoen’s$ 200 million and IDR7.5 trillion senior revolving credit facilities&nbsp,

Participants: Citi, DBS, plus consortium of other banks

MALAYSIA

Bursa Malaysia Offering for Johor Plantations Group

Participants: CIMB, AM Investment Bank, Affin Hwang Investment Bank, CLSA Singapore, CLSA Securities Malaysia

 

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CBRE hires Hugh Macdonald as Apac head of capital advisers | FinanceAsia

CBRE, a US real estate and investment firm, has appointed veteran investment banker Hugh Macdonald as head of capital advisers for Asia Pacific.

Starting his role in Sydney on November 18, Macdonald will relocate to Singapore in the first quarter of 2025, according to a company media release. 

Macdonald (pictured) is joining CBRE from Deutsche Bank, where he was most recently head of investment banking coverage and advisory for Australia and New Zealand. He was at the German bank for over 16 years, according to his LinkedIn profile. 

He has previoulsy worked at Citi, Morgan Stanley and Bankers Trust, and has experience in real estate, gaming, leisure, and lodging sectors across M&A, financing, and capital markets.  

Macdonald has originated and executed many large transactions across Apac and will report to Leo van den Thillart, global head of investment banking, and Greg Hyland, head of capital markets, Apac.

Commenting in a media release, Hyland said: “Our capital advisors business has experienced exceptional growth in Apac, raising over $3.5 billion of capital in the past 18 months. With Hugh’s established relationships, we are confident in expanding our investment banking services across the region, providing top-tier capital markets, M&A, and strategic solutions to our clients.”

Macdonald added: “I’m eager to collaborate with my new colleagues to enhance the value we provide to our clients, meeting their diverse capital requirements and driving business growth throughout the Apac region.”

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Starbucks, Tetley, Jaguar Land Rover: Remembering Ratan Tata’s global ambitions

Getty Images Ratan Tata, chairman emeritus of Tata Sons, speaks during a session advising Singapore startups in Singapore, on Tuesday, March 29, 2016. Tata stepped down as the chairman of the $100 billion Tata Group in 2012.Getty Images

Ratan Tata, the billionaire and former chairman of Tata Group, who passed away at the age of 86, played a significant role in the modernization and globalization of one of India’s oldest company buildings.

His ability to take strong, daring business risks served as the foundation of the salt-to-steel conglomerate, which his forefathers founded 155 years previously, despite India’s liberalization of its economy in the 1990s.

At the turn of the millennium, Tata executed the biggest cross-border merger in American business record- getting Tetley Tea, the country’s second largest maker of teabags. The little Tata party firm that had purchased the classic British brand was three times the size of it.

His party swallowed up big American business giants like the shipbuilder Corus and the luxury car manufacturer Jaguar Land Rover as his ambitions grew just bigger in the years that followed.

Although the acquisitions were n’t always successful, Corus was purchased just before the 2007 global financial crisis, which hampered Tata Steel’s performance for years.

They also had a great symbolic impact, says Mircea Raianu, writer and creator of Tata: The Global Corporation That Built Indian Capitalism. He goes on to say that they “represented the kingdom striking up” when a company from a former colony seized the motherland’s prized possessions, reversing the sneering approach American businessmen had toward the Tata Group a decade before.

Getty Images The blast furnaces, that are scheduled to be closed, at the Port Talbot Steelworks, operated by Tata Steel Ltd., beyond the River Afan in Port Talbot, UK, on Tuesday, June 25, 2024. Getty Images

International interests

The Tata Group’s view had been “outward-oriented” from the very end, according to Andrea Goldstein, an analyst who published a study in 2008 on the internationalisation of American companies, with a special emphasis on Tata.

As early as in the 1950s, Tata companies operated with foreign partners.

But Ratan Tata was keen to “internationalise in giant strides, not in token, incremental steps”, Ms Goldstein pointed out.

According to Mr. Raianu, his unconventional education in architecture and a ringside view of his family group companies may have contributed to how he considered expanding. But it was the” structural transformation of the group” he steered, that allowed him to execute his vision for a global footprint.

Tata had to fight an extraordinary corporate feud when he assumed the position of chairman of Tata Sons in 1991, which happened to coincide with India’s decision to open up its economy.

By opening the door to a number of” satraps” ( a Persian term for an imperial governor ) at Tata Steel, Tata Motors, and the Taj Group of Hotels, which operated with little corporate oversight from the holding company, he began centralizing increasingly decentralized, domestic-focused operations.

By doing this, he prevented the Tata Group, which had been shielded from foreign competition, from fading into irrelevance as India opened up, as well as enabling him to surround himself with people who could assist him in carrying out his global vision.

He appointed foreigners, non-resident Indians, and executives with connections and networks throughout the management team at both Tata Sons, the holding company, and individual groups within it.

He established the Group Corporate Center ( GCC ) to provide group companies with strategic direction. It provided” M&amp, A]mergers and acquisitions ] advisory support, helped the group companies to mobilise capital and assessed whether the target company would fit into the Tata’s values”, researchers at the Indian Institute of Management in Bangalore wrote in a 2016 paper.

The GCC also provided funding for Tata Motors ‘ well-known acquisitions, including Jaguar Land Rover, which had a significant impact on how the world saw a business that was essentially a tractor manufacturer.

The JLR takeover was widely regarded as “revengeance” on Ford, which mocked Tata Motors in the early 1990s and then received a beating on the deal by Tata Motors. Together, these acquisitions suggested that Indian corporations were “arrived” on the global stage as economic growth rates increased and liberalization reforms were taking off, according to Mr. Raianu.

The$ 12 billion group currently has operations in 100 different nations, with non-Indians making a sizable portion of its total revenues.

Getty Images Tata Sons Chairman - Ratan Tata poses alongside the Tata Nano at its launch in Mumbai on Monday.Getty Images

The misses

While the Tata Group made significant strides overseas in the early 2000s, domestically the failure of the Tata Nano – launched and marketed as the world’s cheapest car – was a setback for Tata.

This was his most ambitious project, but he had clearly misread India’s consumer market this time.

Brand experts claim that an aspirational India did n’t want to associate with the affordable car tag. And Tata himself eventually admitted that the “poor man’s car” tag was a” stigma” that needed to be undone.

He thought that his company might be able to revive its product, but the Tata Nano was eventually discontinued after sales dropped year over year.

The Tata Group’s succession became a contentious topic as well.

Mr Tata remained far too involved in running the conglomerate after his retirement in 2012, through the “backdoor” of the Tata Trust which owns two-thirds of the stock holding of Tata Sons, the holding company, say experts.

Ratan Tata’s involvement in the succession dispute with [Cyrus ] Mistry undoubtedly tarnished the reputation of the group, according to Mr. Rainu, without blaming him for it.

Following a boardroom coup that sparked a long-running legal battle that the Tatas eventually won, Mistry, who died in a car crash in 2022, was ousted as chairman of Tata in 2016.

Getty Images Ratan Tata, Chairman Tata Group, at Jaguar Pavilion during 11th Auto Expo held at Pragati Maidan on January 5, 2012 in New Delhi, India. Tata Motors-owned Jaguar showcased two new models, C-X16 and C-X75 here at Auto Expo 2012.Getty Images

A lasting legacy

Tata left his vast empire in a much stronger position both domestically and internationally in spite of the numerous missteps he took in 2012, leaving it much more financially stable.

Along with making significant acquisitions, his effort to modernize the company with a sharp focus on IT has been successful over the years.

When many of his big bets went sour, one high-performing firm, Tata Consultancy Services (TCS), along with JLR carried the “dead weight of other ailing companies”, Mr Raianu says.

TCS is today India’s largest IT services company and the cash cow of the Tata Group, contributing to three-quarters of its revenue.

Around 69 years after the government took control of the airline, the Tata Group also brought back India’s flagship carrier Air India in 2022. Given how expensive it is to operate an airline, Ratan Tata, a trained pilot himself, was a dream come true.

However, the Tatas appear to be more in a position to place significant bets on everything from semiconductor manufacturing to airlines.

Under Prime Minister Narendra Modi, it appears that India has clearly adopted a “national champions” policy, which requires a few large conglomerates to be built up and promoted in order to achieve rapid economic growth that spans priority sectors.

The odds are clearly stacked in favor of the Tata Group from this, along with younger industrial groups like Adani.

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IHH Healthcare snaps up Malaysia’s Island Hospital for 6m | FinanceAsia

A consortium led by previate equity player Affinity Equity Partners has sold its 100% stake in Malaysia’s Island Hospital to IHH Healthcare (IHH), a Kuala Lumpur-headquartered international healthcare group.

The 100% sale at a value of RM4.2 billion ($966 million) includes Affinity’s 78% stake, with the remainder of the shares belonging to the founder & CEO, Mark Wee, and senior doctors of the hospital.

Founded in 1996, Island Hospital (pictured) is a leading 600-bed healthcare provider in Penang, Malaysia, with 119 specialists across 40 medical and surgical specialties. Island Hospital attracts around one in three inbound foreign patients to Malaysia, according to a statement from Affinity. Medical tourism is one of the fastest growing parts of the Malaysian private healthcare market.

Under Affinity’s ownership, Island Hospital expanded its original 300-bed facility, through the development of the adjoining Peel Wing during the pandemic. Additional land has been acquired with approvals secured for future development, a media announcement said. 

Since Affinity bought the hospital in 2015 for an undisclosed amount, Island Hospital expanded its medical and surgical offerings through recruitment and investments in medical infrastructure, resulting in a tripling of foreign patient volumes. During this period, profitability more than tripled, driven by mofd complex cases, and higher operating efficiency from the doubling of bed capacity, according to the announcement. 

Island Hospital also invested in its core specialties of orthopaedics, gastroenterology and general surgery, and established new centres of excellence in cardiology and cancer.

Rippledot Capital Advisors acted as the sole financial advisor to the Affinity-led consortium on this transaction.

“Island Hospital’s evolution into a leading healthcare institution that positively impacts the community, stakeholders, and serves as a beacon of medical excellence in Malaysia and beyond . . .  I’m confident that Island Hospital will continue to thrive under the IHH platform,” said Tang Kok Yew, founding chairman and managing partner, Affinity Equity Partners, in a statement.

Affinity Equity Partners is one of the largest independent private equity firms in Asia Pacific (Apac), investing in Asia Private Equity since 1998. Affinity has $14 billion of assets and funds under management, and is currently investing out of Fund V, a $6 billion fund. Affinity’s investment focus includes Korea, Australia, New Zealand, Southeast Asia, and Greater China. 

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Blackstone and CPP Investments agree Abn AirTrunk acquisition | FinanceAsia

Blackstone Real Estate Partners, Blackstone Infrastructure Partners, Blackstone Tactical Opportunities, and Blackstone’s private equity strategy for individual investors, along with the Canada Pension Plan Investment Board ( CPP Investments ), have agreed to acquire AirTrunk, an Asia Pacific ( Apac ) data center firm, in a deal worth around A$ 24 billion ($ 16 billion ).

The sum includes both capital expenditures for devoted projects and debt. &nbsp,

The sellers are Macquarie Asset Management ( MAM ), Canada’s Public Sector Pension Investment Board ( PSP Investments ) and other investors. In April 2020, a MAM consortium purchased an 88 % stake in AirTrunk for about A$ 3 billion. &nbsp,

While a spokeswoman for Blackstone told&nbsp, FinanceAsia it is not providing&nbsp, a malfunction of the collateral percent, CPP Investments said in a company statement that it would be acquiring 12 % of AirTrunk. CPP Investments said it has info center joint ventures and opportunities in Australia, Hong Kong, Japan, Korea, Malaysia and Singapore, in addition to the US.

The package, if completed, may be Blackstone’s largest expense in Apac. The Australian Foreign Investment Review Board has approved the exchange.

AirTrunk is the largest information centre program in Apac, with a reputation across Australia, Japan, Malaysia, Hong Kong, and Singapore. According to a statement from Blackstone, it has more than 800 megawatts ( MW) of customer commitments and is the owner of land that can support over 1GW of regional growth. AirTrunk agreed a record sustainability-linked loan ( SLL ) of A$ 4.6 billion last year. &nbsp,

Jon Gray, president and chief operating officer of Blackstone, said:” AirTrunk is another important step as Blackstone seeks to be the top digital infrastructure investment in the world across the ecology, including data centers, strength and associated services” .&nbsp,

” Digital system is experiencing unprecedented demand driven by the Artificial revolution as well as the broader digitization of the business,” said Nadeem Meghji, world co-head of Blackstone Real Estate.

They added:” Prior to AirTrunk, Blackstone’s portfolio consisted of$ 55 billion of data centers including facilities under construction, along with over$ 70 billion in prospective pipeline development. To more accede to its progress, we look forward to working with the top management team at AirTrunk.

As we get the next wave of progress from cloud providers and AI and support the energy transition in Apac, Robin Khuda, chairman and chief executive officer of AirTrunk, stated:” This deal shows the strength of the AirTrunk system in a strong performing business.”

We look forward to working with Blackstone and CPP Investments, gaining from their size money, industry experience, and extensive network across the various local markets, which will help assist AirTrunk’s expansion, Khuda continued.

This investment marks yet another milestone in our broader data center approach, according to Max Biagosch, top managing director, global head of Real Property, and nose of Europe for CPP Investments, in a speech from CPP Investments. Our infrastructure and real estate teams seamlessly collaborated to underwrite this investment, which is a great example of close collaboration across the fund.

According to a statement from Blackstone, approximately$ 1 trillion in US capital expenditures will be expected over the next five years to be made to build and facilitate new data centers, and another$ 1 trillion in US capital expenditures will be made, according to a statement from the company. &nbsp,

Blackstone has invested in both the debt and equity of other data center companies, including&nbsp, QTS, Coreweave and Digital Realty. &nbsp,

The Hanam Data Center was acquired by Macquarie Asset Management via Macquarie Korea Infrastructure Fund earlier this year in the Greater Seoul Area of South Korea. The sale price was KRW734 billion ($ 530 million ), however, including the transaction cost and additional capital required to complete the remaining mechanical, electrical and plumbing works at Hanam IDC, the total sale size was KRW918 billion.

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Blackstone and Canada Pension Plan Investment Board agree bn AirTrunk deal | FinanceAsia

Blackstone Real Estate Partners, Blackstone Infrastructure Partners, Blackstone Tactical Opportunities, and Blackstone’s private equity strategy for individual investors, along with the Canada Pension Plan Investment Board, have agreed to acquire AirTrunk, an Asia Pacific ( Apac ) data center firm, in a deal worth around A$ 24 billion ($ 16 billion ).

The sellers are Macquarie Asset Management ( MAM ) and Canada’s Public Sector Pension Investment Board ( CPP Investments ). MAM bought a 88 % stake in AirTrunk in April 2020 for a valuation of around A$ 3 billion. &nbsp,

A spokeswoman for Blackstone told&nbsp, FinanceAsia it is not providing&nbsp, a collapse of the equity ratios. The AirTrunk will remain 12 % owned by CPP Investments, according to the statement. CPP Investments said it has information center joint ventures and assets in major centers in Apac, including Australia, Hong Kong, Japan, Korea, Malaysia and Singapore, and the US.

The package, if completed, may be Blackstone’s largest expense in Apac. The Australian Foreign Investment Review Board has approved the deal.

AirTrunk is the largest information centre program in Apac, with a reputation across Australia, Japan, Malaysia, Hong Kong, and Singapore. It owns property that will allow for over 1GW of regional development and has more than 800MW of customer commitments.

This is Blackstone at its best, according to Jon Gray, president and CEO of Blackstone.” We are using our international platform to capitalize on our highest faith design. Another significant development comes as Blackstone strives to be the world’s largest buyer in modern infrastructure, including power, data centers, and related services.

” Digital system is experiencing unprecedented demand driven by the Artificial revolution as well as the broader digitization of the business,” said Nadeem Meghji, world co-head of Blackstone Real Estate.

They added:” Prior to AirTrunk, Blackstone’s portfolio consisted of$ 55 billion of data centers including facilities under construction, along with over$ 70 billion in prospective pipeline development. To further accede to AirTrunk’s progress, we look forward to working with its top-notch management team.

The deal, according to Robin Khuda, founder and CEO of AirTrunk, demonstrates the strength of the AirTrunk program in a strong-performing field as we prepare for the upcoming wave of development from cloud services and AI and aid the transition to energy in Apac.

We look forward to working with Blackstone and CPP Investments, gaining from their size money, industry experience, and extensive network across the various local markets, Khuda continued,” We look forward to working with them.”

In a statement from CPP, senior managing director, global head of Real Property, and head of Europe, Max Biagosch, stated:” This investment adds another step to our broader data center plan, further expanding our footprints in the region for the benefit of CPP donors and beneficiaries. It is also a fantastic illustration of close collaboration between the fund’s infrastructure and actual estate teams working smoothly up to underwrite this investment.

According to a speech from Blackstone, approximately$ 1 trillion in US capital expenditures will be expected over the next five years to be made to build and promote new data centers, and another$ 1 trillion in US funds expenditures will be made, according to a declaration from the company. &nbsp,

Blackstone has invested in the debt and equity of several other data centre firms, including Coreweave and Digital Realty, the fastest-growing data center company in the world, and QTS. &nbsp,

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Baker McKenzie Wong & Leow to add team from Morrison Foerster | FinanceAsia

According to a business press release, Baker McKenzie Wong &amp, Leow, a representative firm of Baker McKenzie in Singapore, is adding a group led by leaders Shirin Tang and Lip Kian Ang. &nbsp,

Tang previously served as the Singapore office’s handling partner and on the agency’s global executive committee. He will visit Morrison Foerster as its foreign partner.

FinanceAsia&nbsp, understands from a top business supply that the group will begin in the “next some weeks” and that a deeper two non-partner lawyers, from the same team, will also be joining Baker McKenzie Wong &amp, Leow from Morrison Foerster. &nbsp,

Tang will meet as co-head of the Singapore M&amp, A process, simultaneously with Boo Bee Chun. Tang has over 20 years of experience in cross-border mergers and acquisitions ( M&amp, A) and private equity transactions across Asia and the US, with a focus on complex and innovative transactions, including capital raising platforms, joint ventures and club deals, portfolio restructuring and exits.

Her exercise spans the administrative real property, technology/e-commerce, life sciences and customer industries. Over the past” several” years, Tang has led transactions worth over$ 35 billion in aggregate, according to the media release. &nbsp,

Ang has experience with foreign cash, multinational companies and financial organizations in large cross-border personal capital, venture capital, M&amp, A, real estate, and finance purchases.

Commenting on the move, Boo Bee Chun, director and co-head of the Singapore M&amp, A process, Baker McKenzie Wong &amp, Leow, said in a declaration:” We are thrilled to welcome Shirin, Lip Kian and crew to our M&amp, A / private equity team, to which they will add more depth. The wealth of experience and strong business skills that they bring will be of substantial value to our clients given that Singapore and Southeast Asia have strong deals and development potential.

James Huang, managing director of Baker McKenzie Wong &amp, Leow, states:” Their joining is more information of our commitment to more expanding our bench strength in Singapore, whose status as a leading international financial and business hub is anticipated to continue to grow substantially in upcoming years.”

Click here for more FinanceAsia people moves. &nbsp,

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Adani Ports and SEZ buys 80% of Singapore’s Astro | FinanceAsia

Adani Ports and Special Economic Zone (APSEZ), India’s largest ports and logistics company, has agreed to acquire a 80% stake in Singapore’s Astro, in an all-cash deal for $185 million, implying an enterprise value of $235 million, according to an August 30 company media release.

Incorporated in 2009, Astro is a leading global offshore support vessel (OSV) operator in the Middle East, India, Far East Asia and Africa.

The Singapore firm owns a fleet of 26 OSVs including anchor handling tugs (AHTs), flat top barges, multipurpose support vessels (MPSVs) and workboats and provides vessel management and complementary services. During the year ending 3April 30, 2024, Astro posted $95 million revenue and $41 million earnings, before, interest, tax , depreciation and amortisation (EBITDA). As of April 30, 2024, Astro was net cash positive.

Astro’s customers include NMDC, McDermott, COOEC, Larsen & Toubro and Saipem, and is a key player in the offshore construction & fabrication and offshore transportation markets, including oil & gas. 

Astro also helps support the construction and maintenance of offshore platforms, oil & gas fields and subsea facilities allowing it to service the offshore exploration & drilling markets.

Astro’s vessels also support leading international dredging companies, including large offshore construction and land reclamation projects.

In the statement, Ashwani Gupta, whole-time director & CEO, APSEZ, said: “Astro’s acquisition is part of our roadmap to becoming one of the world’s largest marine operators. Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, taking the total count to 168.”

He added: “The acquisition will also give us access to an impressive roster of tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent and Far East Asia. We look forward to working closely with Astro’s leadership team and scaling up the current platform.”

Mark Humphreys, managing director, Astro Offshore, said: “Over the past 15 years, we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers.”

Humphreys added: “This partnership with APSEZ represents a critical inflection point for us. Together, we can accelerate growth to add further scale and diversity to our fleet mix, expand our geographical footprint and deliver more end-to-end solutions to our customers.”

There are no regulatory approvals required and the transaction is expected to close within a month, subject to fulfilment of operational conditions precedent.

The transaction is expected to be value accretive from the first year, the statement said. 

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