The issuance momentum in Asia primary bond market slowed significantly last week with negative headlines in Indonesian HY sector dampening investors' appetites.

New Issue Weekly Monitor

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

Summary

Asia G3 Year-to-date issuance: USD 202.4bn

Key Market Data
CT10 @ 2.057% (-6bps Week-on-Week)
S&P 500 @ 2976.61 (-1.23% Week-on-Week)
HSI @ 28,765.4 (+1.03% Week-on-Week)
JACI Index @ 236.61 (+0.38% Week-on-Week)

For the week beginning 15th Jul 2019, USD 5.77bn of bonds was issued from 18 deals.

Breakdown: USD 2.8bn of Investment Grade, USD 1.92bn of High Yield bonds, USD 1.05bn of Non Rated bonds. 

The issuance momentum in Asia primary bond market slowed significantly last week with negative headlines in Indonesian HY sector dampening investors’ appetites. Averages of both book coverage ratio and price tightening(from IPT) fell across both IG and HY issues last week. Indian issuers accounted for over 20% of total issuance volume.

China Jinmao Holdings Group Limited issued USD 500mm of 10 year bonds at T+220bps. The Chinese real estate developer tapped the dollar bond market last month for USD 250mm of 5 year bonds at T+185bps. Investor momentum was strong as order books were 6.5x covered, with orders from over 170 accounts, allowing the deal to price 30bps tighter from initial price guidance. Bonds were mostly placed into Asian fund managers and traded tighter on the secondary market.

New World Development Company Limited tapped USD 400mm of its Perpetual Non-Call 4.6 year bonds at 5.9% yield. The Hong Kong conglomerate has been active in the dollar bond market this year,

  • Issued USD 500mm of the original Perpetual Non-Call 5 year notes on 4th March at 6.25%.
  • Issued USD 950mm of 10 year bonds on 11th July at T+220bps.

The tap deal saw strong investor demand from the private banks and priced 35bps tighter from initial price guidance. 

For the week, 43 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 8 out of the 18 deals that were priced.

The new issue pipeline remains healthy with 6 new mandates announced in the week, yet to price. 

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