Kaisa Group Holdings returned to the USD bond market to price USD 300m of 1 year bonds, a significant reduction compared to a total of USD 6.1bn in 2017.

New Issue Weekly Monitor

For the week beginning 10th December 2018
Asia ex-Japan G3

Summary

For the week beginning 10th Dec 2018, USD 4.48bn of bonds was issued from 14 deals.

Breakdown: USD 3.36bn of Investment Grade, USD 820m of High Yield and USD 300m of Unrated bonds.

New issue activity slowed down as new issue volume almost halved from the previous week high. Shimao Property Holdings priced a USD 570m tap of its 6.375% Oct 2021 bonds, more than double that of the initial issue size, while Greenland Holdings priced 2 taps through Greenland Global Investment and Greenland Hong Kong Holdings. The week also saw Fantasia Holdings Group price a deal with the highest yield year-to-date.

Kaisa Group Holdings returned to the USD bond market for the first time this year to price USD 300m of 1 year bonds at yield of 12%. The Chinese property developer’s first USD bond issuance this year of USD 300m is a significant reduction compared to a total of USD 6.1bn issued in 2017. This bond comes with a unique feature – an above par redemption price of 101.50.

Fantasia Holdings Group priced USD 130m of 3 year bonds at a yield of 15% – the highest yielding new issue bond in 2018. The Chinese property developer last issued a USD150m tap of its 8.375% March 2021 bonds at a yield of 9.9% in May this year. The top 4 yielding new issues this year are all from Chinese property developers – Fantasia Holdings Group(15%), Hengda Real Estate Group(13.75%), Redsun Properties Group(13.5%) and Kaisa Group(13.5%).

For the week, 37 banks have been involved as Bookrunners or Lead Managers. Guotai Junan International was the most active Bookrunner during the week, participating in 8 out of the 17 deals that were priced.

New issue pipeline winds down with only 1 new mandates announced, yet to be priced.

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