The Asia primary market continues to ride on strong investor demand momentum, with a good diversification of Asian issuers tapping the bond market last week.

New Issue Weekly Monitor

For the week beginning 4th Mar 2019
Asia ex-Japan G3

Summary

For the week beginning 4th Mar 2019, USD 8.11bn of bonds was issued from 15 deals.

Breakdown: USD 3.65bn of Investment Grade, USD 3.7bn of High Yield bonds and USD 765m of Unrated Bonds.

The Asia primary market continues to ride on strong investor demand momentum, with a good diversification of Asian issuers tapping the bond market last week. The Democratic Socialist Republic of Sri Lanka priced a USD 2.4bn dual tranche deal while PT Delta Merlin Dunia Textile made its debut in the dollar high yield bond market.

Hon Hai Precision Industry returned to the dollar market to price USD 1bn across the 5 and 10 year tenor. The Taiwanese electronics manufacturer last tapped the dollar bond market in 2016 for a similar dual tranche deal. Taiwanese issuers did not tap the offshore dollar market in 2018, the rare deal by a Taiwanese issuer saw good investor demand across both tenors and bonds were mostly placed into Asian fund managers.

PT Delta Merlin Dunia Textile made its debut in the dollar bond market, pricing USD 300mm of 5 year non-call 3 year bonds in the 144A/RegS format at a yield of 8.625%. The deal was 3.3 times covered and bonds were mostly placed in Asian fund managers.

The Democratic Socialist Republic of Sri Lanka priced USD 2.4bn in the 144A/RegS format across the 5 and 10 year tenor at 6.85% and 7.85% yield respectively. The deal was well supported by US and Europe investors and investors showed a preference for the 10 year – 3.4 times over-subscribed from 252 accounts.

For the week, 49 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 7 out of the 15 deals that were priced.

New issue pipeline slowed down significantly, with only 1 new mandate announced and yet to be priced.

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