Peregrine Investments Holdings
Encyclopedia
Peregrine was an investment company based in Hong Kong
. It was liquidated following the downturn of the Indonesian economy
during the Asian financial crisis, and was acquired by BNP Paribas
.
and Larry Yung. The company's goal was to profit from the expanding Asian economy by underwriting stocks and bonds to provide capital for the Asian countries, especially the East Asian Tigers
.
, Leung said, "These events were just a hiccup. We decided we wanted to take advantage of depressed market conditions at the time". In 1994, to create an Asian bond market, they hired Andre Lee from Lehman Brothers
to head their fixed income department. http://www.pathfinder.com/asiaweek/98/0123/cs7.html Lee, a French Canadian-Korean who grew up within the American military presence in Seoul
, was described as a "wild man" and "a salesman who could 'sell snow to the Eskimos.'" By 1996, Lee's operations provided one half of Peregrine's profits. In 1997, Lee stated that infrastructure deals will be "the real phenomena that will create Asian bond markets. http://www.findarticles.com/p/articles/mi_qa3715/is_199709/ai_n8778883. Almost single handedly, Lee created the Asian junk bond market.
. The deal was undersubscribed, and Peregrine was left with the remaining bonds as the underwriter. Following the collapse of Steady Safe along with several other losses during the Asian financial crisis, the company lost all liquidity and after unsuccessful negotiations with would-be suitors and white knights, and closed in January 1998. The Greater China team stumbled into the arms of BNP Paribas
, while a substantial portion of the Asia team (ex-China) was hired by Banco Santander.
. It delivers integrated investment banking services covering primary and seconding equity fund raising, underwriting and securities brokerages, corporate finance, financial advisory, mergers and acquisitions. At the end of 2006, BNP announced it was aligning its branding throughout Asia, and the Peregrine name was dropped.
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. It was liquidated following the downturn of the Indonesian economy
Economy of Indonesia
Indonesia is the largest economy in Southeast Asia and is one of the emerging market economies of the world. The country is also a member of G-20 major economies. It has a market economy in which the government plays a significant role by owning more than 164 enterprises and administers prices on...
during the Asian financial crisis, and was acquired by BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
.
The Founding of the Company
Peregrine was founded in 1988 with an initial investment of $38 million by former race car driver Philip Tose and Francis Leung. They had both worked with Citibank in the past and had a large number of connections to Hong Kong's business elite including Li Ka-shing, Gordon WuGordon Wu
Sir Gordon Ying Sheung Wu, GBS, KCMG, FICE is the chairman of the board of Hong Kong-listed Asian infrastructure firm Hopewell Holdings Ltd.Born in Hong Kong in 1935, Wu has been an advocate for more than two decades for the construction of Asia's largest bridge project linking Hong Kong, Macau...
and Larry Yung. The company's goal was to profit from the expanding Asian economy by underwriting stocks and bonds to provide capital for the Asian countries, especially the East Asian Tigers
East Asian Tigers
The Four Asian Tigers or Asian Dragons is a term used in reference to the highly developed economies of Hong Kong, Singapore, South Korea and Taiwan. These nations and areas were notable for maintaining exceptionally high growth rates and rapid industrialization between the early 1960s and 1990s...
.
Culture
The company was characterised as "arrogant", and thrived on taking risks. Commenting on their investing during the Tiananmen Square protests of 1989Tiananmen Square protests of 1989
The Tiananmen Square protests of 1989, also known as the June Fourth Incident in Chinese , were a series of demonstrations in and near Tiananmen Square in Beijing in the People's Republic of China beginning on 15 April 1989...
, Leung said, "These events were just a hiccup. We decided we wanted to take advantage of depressed market conditions at the time". In 1994, to create an Asian bond market, they hired Andre Lee from Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
to head their fixed income department. http://www.pathfinder.com/asiaweek/98/0123/cs7.html Lee, a French Canadian-Korean who grew up within the American military presence in Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
, was described as a "wild man" and "a salesman who could 'sell snow to the Eskimos.'" By 1996, Lee's operations provided one half of Peregrine's profits. In 1997, Lee stated that infrastructure deals will be "the real phenomena that will create Asian bond markets. http://www.findarticles.com/p/articles/mi_qa3715/is_199709/ai_n8778883. Almost single handedly, Lee created the Asian junk bond market.
Financial Collapse
In 1998, financial markets were changing. Peregrine underwrote the bond issue by Steady Safe, an Indonesian transportation company of $265 million dollars, half of Peregrine's capital On the surface, the deal looked secure, although repayment would be in Indonesian rupiahIndonesian rupiah
The rupiah is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. Informally, Indonesians also use the word "perak" in referring to rupiah...
. The deal was undersubscribed, and Peregrine was left with the remaining bonds as the underwriter. Following the collapse of Steady Safe along with several other losses during the Asian financial crisis, the company lost all liquidity and after unsuccessful negotiations with would-be suitors and white knights, and closed in January 1998. The Greater China team stumbled into the arms of BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
, while a substantial portion of the Asia team (ex-China) was hired by Banco Santander.
Current operations
BNP Paribas Peregrine is now the investment banking arm of BNP Paribas in AsiaAsia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
. It delivers integrated investment banking services covering primary and seconding equity fund raising, underwriting and securities brokerages, corporate finance, financial advisory, mergers and acquisitions. At the end of 2006, BNP announced it was aligning its branding throughout Asia, and the Peregrine name was dropped.