The Asia G3 primary bond market clocked the largest week of issuance since April 2018 with 3 jumbo deals priced last week.

New Issue Weekly Monitor

For the week beginning 1st Apr 2019
Asia ex-Japan G3

Summary

For the week beginning 1st April 2019, USD 12.1bn of bonds was issued from 15 deals.

Breakdown: USD 9.8bn of Investment Grade, USD 1.69bn of High Yield bonds and USD 610m of Unrated Bonds.

The Asia G3 primary bond market clocked the largest week of issuance since April 2018 with 3 jumbo deals priced last week. Resorts World Las Vegas and AIA Group both priced USD 1bn of bonds each while Tencent Holdings priced a mammoth USD 6bn 5-tranche deal.

Resorts World Las Vegas made its debut in the dollar bond market, pricing USD 1bn of 10 year bonds at the spread of T+222.5bps. The deal was well covered with the order book at USD 3.8bn from 182 accounts. The deal was mostly placed into Asian fund managers.

Tencent Holdings priced the biggest deal of the year, issuing USD 6bn across the 5 tranche deal. Strong investor demand drove orderbooks over USD 27bn and the issuance was skewed towards the 10 year tranche. The 7 year and 30 year tranches traded well on the break, tightening as much as 8bps and 4bps respectively in the secondary market.

Mongolian Mining Corporation priced USD 440m of 5 year bonds at 9.25%. Mongolian issuers have been active this year, having priced 3 deals so far, as compared to only 1 deal in 2018. The Mongolian coal producer’s new 5 year bonds were placed mainly into Asian fund managers and performed on the secondary market.

For the week, 44 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 6 out of the 15 deals that were priced.

New issue pipeline continues to build with a good diversification of issuers, announcing 4 new mandates yet to be priced.

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