New Issue Weekly Monitor
For the week beginning 29th Apr 2019
Asia ex-Japan G3
For the week beginning 29th April 2019, USD 1.875bn of bonds was issued from 5 deals.
Breakdown: USD 600m of Investment Grade, USD 1.275bn of High Yield bonds.
The Asia G3 bond market remains muted last week with good diversity of issuers from South Korea, Indonesia and Malaysia. Oil and Gas High Yield was the most active segment last week with new bonds from PT Medco Energi and Serba Dinamik Holdings. As of year-to-date April, issuance volume reached USD 116.2bn(USD 114.7bn in 2018). High yield issuers contributed a greater portion this year, accounting for 42.5% of total issuance volume(vs 30.1% in YTD April 2018).
Mirae Asset Daewoo priced a USD 600m dual-tranche deal across the 3 year and 5 year tenor at T+95bps and T+112.5bps respectively. Investor demand leaned towards the 5 year tranche as Book coverage for the 3 & 5 year tranche was 5.8x and 7.5x respectively. Both tranches were mostly placed into Asian fund mangers.
PT Medco Energi Internasional Tbk priced USD 650m of 7 year non-call 4 year bonds at 7.70% yield. US investors took a quarter of allocation and the bonds performed on the secondary market, ending the week up 50 cents. The Indonesian oil & gas company last priced similar 7 year non-call 4 year bonds in January 2018 at 6.90% yield.
For the week, 14 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 2 out of the 5 deals that were priced.
New issue pipeline builds with majority of mandates for deals looking to tap on US investor demand. 8 new mandates were announced in the week, 5 of which were for deals to be priced in the 144A/RegS format.