High Yield issuers leading the primary market last week as China Evergrande becomes the largest dollar bond issuer of the year.

New Issue Weekly Monitor

For the week beginning 15th Apr 2019
Asia ex-Japan G3

Summary

For the week beginning 15th April 2019, USD 6.8bn of bonds was issued from 14 deals.

Breakdown: USD 2.7bn of Investment Grade, USD 3.3bn of High Yield bonds and USD 800m of Unrated Bonds.

Issuance volume in April crosses USD 33bn with high yield issuers leading the primary market last week, accounting for 60.9% of issuance volume. China Evergrande Group kickstarted the week with a USD 1bn tap deal to become the largest dollar bond issuer of the year (USD 6.7bn issued Year-to-date).

Shinhan Bank priced USD 400mm of 10 year bonds at a spread of T+157.5bps. There was good demand for the from investors with the deal 5 times covered and eventually priced 27.5bps tighter from Initial Price Guidance. Shinhan Bank last priced USD 400mm of 10 year bonds in March last year at the spread of T+165bps.

Shriram Transport Finance priced USD 500m of 3.5 year bonds in the 144A/RegS format at 5.95% yield on the back of strong demand from US investors. The Indian transport company last priced USD 400m of 3 year bonds in February this year at the yield of 5.7%. US fund managers took majority of allocation.

For the week, 43 banks have been involved as Bookrunners or Lead Managers. Credit Suisse was the most active Bookrunner during the week, participating in 6 out of the 14 deals that were priced.

New issue pipeline continues to build, announcing 4 new mandates yet to be priced.

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