China Evergrande Group took the spotlight last week, pricing a USD 3bn tap deal across 3 bonds - Chinese real estate issuers made up almost 59% of total issuance for the week.

New Issue Weekly Monitor

For the week beginning 21st January 2019
Asia ex-Japan G3

Summary

For the week beginning 21th Jan 2019, USD 6.94bn of bonds was issued from 12 deals.

Breakdown: USD 1.7bn of Investment Grade, USD 3.865bn of High Yield bonds and USD 1.375bn of Unrated Bonds.

New issue market continues its strong momentum ahead of the Lunar New Year festivities. China Evergrande Group took the spotlight last week, pricing a USD 3bn tap deal across 3 bonds – Chinese real estate issuers made up almost 59% of total issuance for the week. The week also saw Mongolian Mortgage issue USD 250m of 3 year bonds at a yield of 9.75%.

China Evergrande Group tapped USD 3bn across 3 bonds – 7% Mar 2020s, 6.25% Jun 2021s and 8.25% Mar 2022s. The Chinese real estate issuer issued USD 2.8bn of bonds in 2018 through its subsidiary Hengda Real Estate Group. Despite the large size of the tap deal, there was minimal pressure on the front end of the credit curve and the bonds traded up in the secondary.

NWS Holdings priced USD 800m of Perpetual Non-Call 5 year bonds at a yield of 5.75%. The deal saw strong investor demand as books were 5x covered and bonds eventually priced 55bps tighter from initial price guidance. Bonds were mostly placed into Asian private banks and performed in the secondary market.

AC Energy made its debut in the offshore bond market, issuing USD 225m of 5 year Green bonds at a yield of 4.875%. Bonds were mostly placed into local investors, with bank treasuries taking 77% of total allocation. In 2018, only 8 deals(totaling USD 2.675bn) were priced by Philippine corporate issuers in the Asia G3 bond market.

For the week, 24 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 7 out of the 12 deals that were priced.

New issue pipeline slows down ahead of the festive season, with 5 new mandates announced and yet to be priced.

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