Asia Markets - Halftime Report

ASIA MARKETS – HALFTIME REPORT
It’s a beautiful summer here in Hong Kong, with the monsoons (winds) blowing all of the nasty pollution away from city’s skies and upward into southern China. This weather pattern generally means that Hong Kong summer skies will often be a clear robin’s egg blue, even if the heat and humidity make outdoor activity, such as hiking, a rather steamy adventure. Fortunately, many of Hong Kong’s great hikes, such as the hike to Sai Wan beach in the New Territories, end at some body of water where you can cool off in a clean, clear sea under a blue sky.

But, are the skies in the economic universe as clear as those in the meteorological one? The answer is, as always, ‘It Depends’.

INVESTMENT GRADE DEBT
The main pockets of debt capital markets activity involve investment-grade debt offerings. These are not your high-yield (read: high-risk) offerings of 2007-2008 with 10%+ yields. In these uncertain times, investors are seeking to find the optimum point between yield and safety. They want to invest in debt securities which will offer more yield than, say, a treasury bond, but they want to minimize some degree of risk.

What this means for Asia debt capital markets is that many of the bond deals which are going through right now involve issuers with a heavy degree of state ownership, or some other factor which makes them a less risky investment. One lawyer at a top US firm here in Asia mentioned to me that bond issuers are scrambling to find any tie to, say, state ownership to increase the perceived safety of the investment in their securities. While the sovereign relationship tie with some issuers is as obvious as a ‘Luke, I Am Your Father’,with other issuers it’s more of an ‘I am your father’s brother’s nephew’s cousin’s former roommate’. Which should make the relationship to a sovereign entity absolutely nothing, yet into the prospectus it goes!

SOUTHEAST ASIA AND OTHER DEVELOPING ECONOMIES
Southeast Asia, heralded earlier in July as the ‘engine for economic growth in the world’ by British Foreign Office Minister Jeremy Browne, is a bright spot in a world of economic uncertainty. Hillary Clinton’s trip to Asia earlier in the month was just as focused on economic issues as it was on security concerns, if not more so, as she promoted US investment in Southeast Asia. And it is Malaysia – not Hong Kong or Singapore – who is in position to take the crown of Asia’s top IPO market in 2012. Robust domestic demand, coupled with a steady stream of investment, is helping to keep the regional 2012 GDP growth forecast of ASEAN economies at a modest, but resilient 5%.

A+ PE / M&A Opportunity in Hong Kong at Top 10 US Firm – 2nd to 4th Year US Associate (Mandarin Fluency and Top Firm M&A Experience Required)

We are working on a number of openings at present in HK / China, Tokyo and Singapore, but one in particular is impressive and urgent enough that we thought we should mention here (something that we rarely do in this column). The position is a Private Equity / M&A focused spot at a top US firm in HK. The ideal candidate will be coming from a top 15 US firm in NYC, other major US markets, or already in HK / China. This top 10 US firm is very selective regarding current firm and JD academics. Mandarin fluency is needed for this role. This is by any measure a top 5 Private Equity practice in Asia and the firm globally is considered on of the best PE practices among all major international law firms. The firm also has offices in mainland China. We have placed a number of lateral US associates at this firm in HK / China over the years and these associates (one of them now a partner) have had very positive experiences there. Further, we have been close for years with a number of partners at this firm in Asia and they are amongst our most favorite hiring partner clients, due mainly to our own high opinions of them and their reputation in the market, including feedback from our many associates placed on their teams over the years.

Should Legal Professionals Use Social Media?

With the social media boom that's been flooding the internet over the past few years, it's easy to find someone who is not only heavily involved with a social media network, but who also uses their account for professional means. Our attorney headhunters at Kinney Recruiting have some tips on how lawyers can use social media to their advantages.

Andrews Kurth LLP is pleased to announce that noted Houston attorney J. Todd Culwell has returned to the firm as a Partner, focusing on various types of transactions in the energy industry.

In its latest major financings in Latin America, Milbank, Tweed, Hadley & McCloy has advised underwriters in a pair of Costa Rican debt issuances, by the central government and the country’s largest electrical utility. The offerings raised a total of $1.5 billion.

Clyde & Co is delighted to announce that its first Spanish office in Madrid will be opening on 27 May 2013.

A team of Dechert LLP lawyers is representing B&G Foods, Inc. (NYSE: BGS) in its pricing of a registered public offering of $700 million aggregate principal amount of 4.625% senior notes due in 2021 at a price to the public of 100% of their face value. The notes will be guaranteed on a senior unsecured basis by certain subsidiaries of B&G Foods. The offering is expected to close on June 4, 2013, subject to customary closing conditions.

Seyfarth Shaw LLP announced today the arrival of partner Steven R. Meier to the firm’s Corporate department in Chicago. Meier joins Seyfarth from Jenner & Block LLP, where he was the co-chair of the Real Estate Securities practice and a member of its Tax department.

Leading international law firm Clifford Chance has advised the 21 joint bookrunners* on China Galaxy Securities US$1.07 billion IPO on the Hong Kong Stock Exchange. Joint global coordinators for the deal were Goldman Sachs, JP Morgan, China Galaxy International Securities Hong Kong Limited, ABCI Capital Limited and Nomura. The company sold approximately 1.6 billion H shares at HK$5.30 each.

Michael Duffy has rejoined Baker & McKenzie's renowned Dispute Resolution Practice as a partner, adding 12 years of experience in a range of dispute resolution matters.

Simpson Thacher represented the underwriters, led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets Inc., in connection with a registered public offering of 21,850,000 shares of common stock of Apollo Investment Corporation (“Apollo”). The offering resulted in gross proceeds to Apollo of approximately $187.9 million.