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Investor ultimatum: stricter covenants or higher coupons on perps

May 08, 2012  


From Clare Hammond

As the perpetual bond market deepens, investors are growing increasingly stringent about demanding protective covenants. Issuers must comply or be prepared to pay out much higher coupons.

The perpetual bond market is taking off, predominantly in Singapore, but it is likely that corporations from other Asian countries will follow. As investors become increasingly familiar with the structure, the demand for protective covenants has increased to such an...


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SOUTHEAST ASIA DCM

Rank Bookrunner Parents Deal Value $ (Proceeds) (m) No. %share 2012 YTD Rank
1 Standard Chartered Bank 3,991 32 8.9 2
2 HSBC 3,710 35 8.3 4
3 Goldman Sachs 3,333 2 7.4 12
4 Deutsche Bank 2,895 14 6.4 8
5 Citi 2,774 9 6.2 5
6 JPMorgan 2,288 7 5.1 3
7 DBS 2,106 25 4.7 1
8 Siam Commercial Bank 1,835 16 4.1 21
9 Barclays 1,586 3 3.5 9
10 CIMB Group 1,523 27 3.4 13
Subtotal 26,040 123 57.9
Total 44,958 212 100.0



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