New issue market is back in full swing with diverse variety of issuers from South Korea, Indonesia, India and Hong Kong. The first deal in 144A/RegS format for 2019 was priced by the State Bank of India.

New Issue Weekly Monitor

For the week beginning 14th January 2019
Asia ex-Japan G3

Summary

For the week beginning 14th Jan 2019, USD 8.64bn of bonds was issued from 16 deals.

Breakdown: USD 6.01bn of Investment Grade and USD 2.63bn of High Yield bonds.

New issue market is back in full swing with diverse variety of issuers from South Korea, Indonesia, India and Hong Kong. State Bank of India priced the first deal in 144A/RegS format of 2019 while Country Garden priced USD 1bn of bonds. The week also saw Guangzhou R&F price its second bond deal of 2019.

State Bank of India priced a USD 1.25bn dual tranche deal, issuing 3 year and 5 year bonds at spreads of 157.5bps and 185bps respectively. The first deal in 144A/RegS format of 2019 was well received by investors, with US investors taking majority of the 3 year bonds(45%) while Asia investors took majority of the 5 year bonds(46%). The 3 year bonds performed better in the secondary market, trading more than 10bps tighter.

PT Alam Sutera Realty issued USD 175m of 2.25 Non-Call 1.25 year bonds at a yield of 11.75%. The Indonesian real estate issuer ignited demand in a sector barely tapped in 2018 – Only 2 Indonesian Real Estate developers issued offshore bonds in 2018(PT Bumi Serpong Damai & PT Modernland Realty). Bonds were mostly placed into Asian fund managers and performed well in the secondary market, trading more than 2.5points above reoffer.

Guangzhou R&F Properties was quick to execute its fund raising plans as it priced its second bond deal of 2019. The Chinese real estate developer issued USD 500m 2yr bond at 8.875% on 3rd January and followed up with USD 300m of 3.5 Non-Call 2 year bonds at a yield of 9.25% last week. For FY 2018, USD 1.1bn of bonds was issued by Guangzhou R&F properties.

For the week, 42 banks have been involved as Bookrunners or Lead Managers. Citibank was the most active Bookrunner during the week, participating in 7 out of the 16 deals that were priced.

New issue pipeline continues to build with 3 new mandates announced, yet to be priced.

Share on