The Asia primary market kept pace to close out a strong month of issuance as Chinese issuers dominated the market last week.

New Issue Weekly Monitor

For the week beginning 25th Feb 2019
Asia ex-Japan G3

Summary

For the week beginning 25th Feb 2019, USD 7.85bn of bonds was issued from 17 deals.

Breakdown: USD 4.33bn of Investment Grade, USD 2.87bn of High Yield bonds and USD 650m of Unrated Bonds.

The Asia primary market kept pace to close out a strong month of issuance. Chinese issuers dominated the market last week, with Jubilant Pharma Limited the only non-Chinese issuer – 97.5% of last week’s primary volume were from Chinese issuers. For the month of February, issuers printed USD 25.03bn of bonds, a 45% increase year-on-year(USD 17.25bn in February 2018). Chinese issuers contributed most to this spike issuing USD 19.47bn(74% increase year-on-year) in February.

Ronshine China Holdings issued USD 300m of 3 year bonds at a yield of 10.5%. The deal saw strong investor demand, with the deal 9.3 times covered. The 3 year bonds priced 37.5bps tighter from initial price guidance and bonds were mostly placed into Asian fund managers.

Agile Group Holdings priced USD 500m of 3 year Non-Call 2 year bonds at a yield of 6.7%. The Chinese real estate developer last issued 2 year bonds in November 2018 at a yield of 9.5%. Fund managers took majority of bond allocation(59%), while Private banks took a more than a third of allocation(35%).

For the week, 47 banks have been involved as Bookrunners or Lead Managers. Haitong International was the most active Bookrunner during the week, participating in 9 out of the 17 deals that were priced.

New issue pipeline continues to build, with 6 new mandates announced and yet to be priced.

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