Chillin' out till it needs to be funded
Even as American investors got most of the paper at the DBS bond auction that netted $1 bln this week, even property company Sun Hung Kai and the Swire Grp added another $1 bln in debt from investors. Olam International sold $230 mln of debt.
The second Hang seng IPO of Xiwang Steel though lost $32 mln in opening day trades even as ndonesian Sinar Mas withdrew their IPO on expectations of firmer pricing than available in equities. dimsum bonds continued to attract investors with Mitsui of Japan and Baosteel of China both raising RMB 3.4 bln or $ 540 mln in Dimsum bonds at the tighter end of the price range, Mitsui’s mini issue going thru at 4.25%
Goldman Sachs though may have turned out the biggest winner choosing to invest $50 mln worth of direct equity under the radar at 4.8% of the Mongolian Trade and Development Bank. Trade and Development Bank was Central Asia’s first lending bank with financing from IFC and
Any stake of more than 4.9% requires special approvals from the Fed under the new Dodd Frank Act. Mongolia grew 9.8% by GDP in 2011 after a 6% 2010 having suffered in 2008-09 at the bottom of the commodity cycle, 3Q 2011 growth topped 20.8% Goldman Sachs is working directly with ths stae in investing on the mining developments around the Capital Ulaanbataar ( the only urban settlement in the desert nation)
More than $68 bln in FDI is expected in the next 4 years according to a AFP/Y!/Zachs report in Mongolia
Mongolian mining interest Erdenes Tavan Togloi gets Deutsche Bank and Goldman Sachs shortlisted for its IPO leads too , the IPO due in june 2012. Mongolia has been shipping Coal to china’s Chalco and will likely get a $3 bln crisis loan from China too. Double digit inflation and liquidity constraints have struck lending in the Central Asian Republic
ING, DB and HSBC are supporting a State Bond offering n Singapore worth $600 mln