The issuance momentum in Asia primary bond market continues unabated, fueled by the mid-week comments from the Federal Reserve towards a July rate cut. The market saw a new high-water mark achieved for the highest weekly issuance year-to-date.

New Issue Weekly Monitor

For the week beginning 8th Jul 2019
Asia ex-Japan G3

Summary

Asia G3 Year-to-date issuance: USD 196.6bn

For the week beginning 8th Jul 2019, USD 15.95bn of bonds was issued from 26 deals.

Breakdown: USD 10.1bn of Investment Grade, USD 4.25bn of High Yield bonds, USD 1.6bn of Non Rated bonds. 

The issuance momentum in Asia primary bond market continues unabated, fueled by the mid-week comments from the Federal Reserve towards a July rate cut. The market saw a new high-water mark achieved for the highest weekly issuance year-to-date. The last high-water mark was achieved on the 2nd week of June – USD 14.8bn.  Last week, issuers from Hong Kong, Vietnam, India, Indonesia and South Korea tapped the markets to provide investors much welcomed diversification opportunities. There was significant investor demand for duration with all new long bonds issued last week performing well on the break.

Vietnam Prosperity Joint Stock Commercial Bank priced USD 300m of 3 year bonds at 6.5% yield. The rare Vietnam corporate dollar bond issue saw good investor demand from both Asia and EMEA investors, allowing the deal to eventually price 50bps tighter from initial price guidance and to lock in the lowest coupon for a Vietnamese corporate issue. 

Perusahaan Listrik Negara(PLN) priced a dual tranche USD 1.4bn jumbo deal across 10 year and 30 year tranches at 3.95% and 4.95%. The Indonesian state-owned utility company capitalized on strong investor demand for duration to price the deal inside its curve. PLN last priced 10.25 year and 30.25 year bonds in October last year at 5.5% and 6.3% respectively. Both tranches were mostly placed into Asian fund managers and bonds continued to trade up 0.5 point and 1 point on the secondary market respectively. 

For the week, 53 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 14 out of the 26 deals that were priced.

The new issue pipeline remains healthy with 4 new mandates announced in the week, yet to price. 

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