New issue activity picked up a notch from the previous week's low to print USD 4.95bn of bonds as The Export Import Bank of Korea priced EUR 750m of bonds on the back of strong demand from European investors.

New Issue Weekly Monitor

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

Summary

For the week beginning 18th Mar 2019, USD 4.95bn of bonds was issued from 13 deals.

Breakdown: USD 3.09bn of Investment Grade, USD 1.66bn of High Yield bonds and USD 200m of Unrated Bonds.

New issue activity picked up a notch from the previous week’s low to print USD 4.95bn of bonds. The Export Import Bank of Korea priced EUR 750m of bonds on the back of strong demand from European investors while Canara Bank returned to the dollar bond market to price USD 400m of 5 year bonds.

Yunnan Provincial Energy Investment priced a USD 400m tap of its 6.25% Nov 2021 bonds to bring total issue size to USD 600m. The deal saw strong investor demand with the orderbook reaching USD 5.3bn from 159 accounts. The deal was mostly placed into Asian fund managers and the bond performed on the secondary market.

Canara Bank issued USD 400m of 5 year bonds at T+170bps. Asian banks took majority of allocation and bonds traded as much as 5bps tighter on the break. Indian issuers have been more active in the offshore bond market this year as issuance volume increased by 30.1% year-on-year in the first quarter. Similar rated State Bank of India issued USD 800m of 5 year bonds in January this year at spread of T+185bps.

PT Bank Rakyat Indonesia (Persero) priced USD 500m of 5 year bonds at T+168bps. The Indonesian bank last priced USD 500m of 5 year bonds in July 2018 at a spread of T+195bps. The oderbook was well supported by 199 accounts, reaching over 8.2 times book coverage. The deal was placed mainly into Asian fund managers and performed on the secondary market.

For the week, 36 banks have been involved as Bookrunners or Lead Managers. UBS, HSBC, Guotai Junan International & Haitong International were the most active Bookrunners during the week, participating in 5 out of the 13 deals that were priced.

New issue pipeline builds up with a good diversification of issuers, announcing 5 new mandates yet to be priced

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