It was another big week for Asia primary bond market with issuers pricing 27 deals last week. Last week marks the highest number of deals priced Year-to-Date.

New Issue Weekly Monitor

For the week beginning 17th Jun 2019
Asia ex-Japan G3

Summary

For the week beginning 17th June 2019, USD 10.4bn of bonds was issued from 27 deals.

Breakdown: USD 5.8bn of Investment Grade, USD 3.0bn of High Yield bonds, USD 1.6bn of Non Rated bonds.

It was another big week for Asia primary bond market with issuers pricing 27 deals last week. Last week marks the highest number of deals priced Year-to-Date. Despite the busy week, only China Railway Construction Corporation and Export-Import Bank of Korea priced jumbo deals. SriLankan Airlines priced the first Sri Lanka dollar corporate bond for 2019 and Philippine National Bank priced the largest Philippine dollar corporate bond year-to-date. Average book coverage for investment grade issues edges up to 6.6x, up 10% from the week before.

Sichuan Railway Investment Group made a strong debut in the dollar bond market, issuing USD 300m of 3 year bonds at 3.80% yield. Final orders crossed USD 3.8bn from 168 accounts, allowing the deal to price 45bps tighter from initial price guidance. China Railway Construction Corporation saw a similar order book build for its USD 1bn Perpetual Non-Call 5 year deal which priced at 3.97% yield. Asian fund managers took majority of allocation for both deals. Sichuan Railway’s 3 year bonds performed better on the secondary market, trading more than 0.5pts up on the break.

SriLankan Airlines priced USD 175m of 5 year government guaranteed bonds at 7% yield. The Democratic Socialist Republic of Sri Lanka last issued 5 year bonds in March this year at 6.85% yield. The Sri Lankan carrier saw strong investor demand for the new issue as orders were over 5.7x covered and priced 50bps tighter from initial price guidance. Bonds were mostly placed into Asian fund managers.

For the week, 46 banks have been involved as Bookrunners or Lead Managers. Bank of China was the most active Bookrunner during the week, participating in 9 out of the 27 deals that were priced.

The new issue pipeline continues to flow with 7 new mandates announced in the week. There are 9 outstanding mandates announced over the last 2 weeks yet to price.

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