New Issue Weekly Monitor
For the week beginning 11th Feb 2019
Asia ex-Japan G3
For the week beginning 11th Feb 2019, USD 8.2bn of bonds was issued from 13 deals.
Breakdown: USD 6.1bn of Investment Grade, USD 2.05bn of High Yield bonds and USD 50m of Unrated Bonds.
Issuers took advantage of the strong appetite for risk to price 13 deals last week, 3 of which were jumbo deals of more than USD 1bn in issuance size. Airport Authority Hong Kong and Jiangxi Railway Investment Group made their debut in the offshore dollar bond market as well. Investor momentum was strong with book coverage ratio averaging 5.42 times last week(deal statistics where available). The strong investor demand was reflected in the secondary market performance of the bonds as well, with most bonds trading above reoffer at close of the week.
The Republic of Indonesia cut short planned roadshows to issue USD 2bn of sukuk bonds in the 144A/RegS format. Investor preference was skewed towards the longer dated tranche, with orderbook for the 10 year more than twice greater than the 5 year tranche.
Shimao Property Holdings issued USD 1bn of 5 year bonds at 6.125% yield. The Chinese real estate developer last tapped USD 570m of its 6.375% Oct 2021 bonds in December at a yield of 7.125%. Bonds were mostly placed into Asian fund managers and bonds traded well on the secondary market.
China Cinda Asset Management priced USD 1bn of bonds across three tranches on the back of a mammoth orderbook. Investor appetite for duration was significant as issuance volume was skewed towards the longer dated 10 year tranche. Bonds performed in the secondary trading, with the 5 & 10 year bonds trading more than 10bps tighter.
For the week, 45 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 9 out of the 13 deals that were priced.
New issue pipeline gathers pace post festive season, with 7 new mandates announced and yet to be priced.