New Issue Weekly Monitor
For the week beginning 26th November 2018
Asia ex-Japan G3
For the week beginning 26th Nov 2018, USD 5.48bn of bonds was issued from 19 deals.
Breakdown: USD 2.83bn of Investment Grade, USD 740m of High Yield and USD 1.91bn of Unrated bonds.
New issue activity ramped up with a total of 19 deals priced in the week. Chinese issuers dominated activities into the month end, accounting for 89% of last week’s new issues. Redsun Properties Group made its debut in the USD bond market while Power Finance Corporation leveraged strong US investor demand to price the only RegS/144A deal of the week. Minor International made history with the first bank guaranteed hybrid perpetual security.
Thai hospitality company Minor International priced USD 300m of senior perpetual non-call 3 year bonds at a spread of CT3+180bps. The bonds are guaranteed by Bangkok Bank in event of a default or if Minor International does not call the bonds in 2021. This is the first bank guaranteed hybrid perpetual security in South-East Asia. It has been a busy month for Thai issuers. New bonds from Thailand reached USD 1.6bn in November, almost doubling the USD 2bn supply from January-October 2018.
Power Finance Corporation made its debut in RegS/144a format, pricing USD 500m of 10 year bonds at CT10+310bps on the back of strong US investor demand. The bonds priced 15bps tighter from initial price guidance and continued to perform in the secondary market, trading as much as 22bps tighter.
For the week, 53 banks have been involved as Bookrunners or Lead Managers. Haitong International was the most active Bookrunner during the week, participating in 8 out of the 19 deals that were priced.
Chinese issuers continue to drive the new issue pipeline with 5 new mandates announced, yet to be priced.