The strong momentum in Asia primary market carried on last week, clocking the largest weekly issuance volume since April 2018.

New Issue Weekly Monitor

For the week beginning 18th Feb 2019
Asia ex-Japan G3

Summary

For the week beginning 18th Feb 2019, USD 9.71bn of bonds was issued from 19 deals.

Breakdown: USD 4.75bn of Investment Grade, USD 3.76bn of High Yield bonds and USD 1.2bn of Unrated Bonds.

The strong momentum in Asia primary market carried on last week, clocking the largest weekly issuance volume since April 2018. Investors’ demand for risk was strong with book coverage ratio averaging 6.79 times last week, up from 5.42 times the week before(deal statistics where available). The momentum was largely attributed to Asian fund managers, taking up majority of allocation across bond issuances. China Resource Land’s 5.5 year tranche recorded the highest book coverage of the year at 16.3 times. 

Ronshine China Holdings issued additional USD 207.76m of new bonds in conjunction with its exchange offer exercise. The 2.5 year bonds were issued at above par and traded more than 1 point up in the secondary market. 

China Resource Land priced a dual tranche deal issuing bonds in the 5.5 and 10 year tenor. The deal saw strong investor demand with order books over USD 10.1bn across both tranches. Both tranches priced 35bps tighter from initial price guidance. The 5.5 year tranche out performed the 10 year tranche in the secondary market, trading more than 10bps tighter.

SP Group Treasury issued USD 600m of 10 year bonds in the 144A/RegS/3c7 format at T+83bps. The utility company is the first Singapore corporate to tap the dollar bond market this year. In 2018, only three non-financial Singapore corporates tapped the dollar bond market. Bonds were mostly placed into Asian banks.

For the week, 48 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 12 out of the 19 deals that were priced. 

New issue pipeline continues to build, with 5 new mandates announced and yet to be priced.

Share on