India’s post-election europhia spilled onto the debt markets as Indian issuers capitalized on the momentum to return to the primary markets.

New Issue Weekly Monitor

For the week beginning 27th May 2019
Asia ex-Japan G3

Summary

For the week beginning 27th May 2019, USD 4.18bn of bonds was issued from 11 deals.

Breakdown: USD 1.7bn of Investment Grade, USD 2.23m of High Yield bonds, USD 250m of Non Rated bonds.

India’s post-election europhia spilled onto the debt markets as Indian issuers capitalized on the momentum to return to the primary markets. Delhi International Airport Limited and Adani Green Energy tapped the dollar bond market for USD 350m and USD 500m respectively. Demand for both deals were strong, especially from US based investors. Issuance from Indian issuers year-to-date(USD 10.72bn) has far exceeded that of full year 2018(USD 6.05bn) – a 77.2% increase in issuance volume.

In another notable theme, high yield issuers drove weekly debt issuance for the first time in 4 weeks. The sharp rally in US Treasuries and recent underperforming investment grade new issues, kept investment grade issuers and investors on the sidelines.

Delhi International Airport Limited priced USD 350m of 10 year bonds in the 144A/RegS format at 6.45% yield. The deal saw strong investor demand, with orders over USD 2.25bn from 236 accounts. Bonds were mostly placed into Asian fund managers and the strong investor momentum rode into the secondary market as bonds traded more than 1 point up on the break.

Adani Green Energy also saw strong demand from US investors for its new issue, pricing USD 500m of 5 year bonds at 6.25%. The new bonds were co-issued and jointly guaranteed by subsidiaries Adani Green Energy (UP) Limited, Parampujya Solar Energy Private Limited and Prayatna Developers Private Limited. US fund managers took majority of allocation.

For the week, 36 banks have been involved as Bookrunners or Lead Managers. Standard Chartered Bank was the most active Bookrunner during the week, participating in 4 out of the 11 deals that were priced.

The new issue pipeline remains healthy with 4 new mandates announced in the week. There are 6 outstanding mandates announced over the last 2 weeks yet to price.

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