New Issue Weekly Monitor
For the week beginning 8th Apr 2019
Asia ex-Japan G3
For the week beginning 8th April 2019, USD 14.08bn of bonds was issued from 25 deals.
Breakdown: USD 7.93bn of Investment Grade, USD 5.2bn of High Yield bonds and USD 950m of Unrated Bonds.
The hot streak in Asia G3 primary bond issuance continued into the second week of April with another USD 14.08bn issued last week. Total bond issuance for the first 2 weeks of April(USD 26.1bn) surpassed monthly total of February(USD 24.9bn) and March(USD 23.9bn). It was a bumper week for jumbo deals. Bank of China issued the biggest multi-currency deal of the year while China Evergrande Group, LG Chem, CK Hutchison Holdings and Vedanta Resources priced jumbo multi-tranche USD deals.
China Evergrande Group priced a USD 2bn multi-tranche deal early in the week. China Evergrande Group has now issued the 2 largest HY corporate deals of 2019 so far, making the Chinese real estate developer the largest high yield issuer this year(USD 5.6bn issued in 2019).
CK Hutchison Holdings priced USD1.5bn of bonds in the 144A/RegS format across 5 and 10 year tenors at T+95bps and T+120bps respectively. The deal saw strong US investor participation, with a slight skew towards the 5 year tranche.
21Vianet Group issued USD 300mm of 2.5 year bonds at at yield of 8%. Order books were 4.7x covered and eventually priced 50bps tighter from initial price guidance. Bonds were mostly placed into Asian fund managers and performed well in the secondary market, trading as much as 1 point above reoffer. The Chinese data center service provider last tapped USD 100m of its 7% Aug 2020 bonds back in September 2017 at 6.98%.
Korea Resources Corporation priced USD 400m of 5 year bonds at spread of T+102.5bps. The Korean state-owned mining company saw strong demand for the deal as order books were 7.1x covered. Bonds were mostly placed into Asian fund managers.
For the week, 55 banks have been involved as Bookrunners or Lead Managers. Citibank was the most active Bookrunner during the week, participating in 10 out of the 25 deals that were priced.
New issue pipeline continues to build, announcing 5 new mandates yet to be priced.