Biggest week of the quarter despite heightened market volatility. USD 8.23b bonds issued across 14 deals

New Issue Weekly Monitor

For the week beginning 3rd December 2018
Asia ex-Japan G3

Summary

For the week beginning 3rd Dec 2018, USD 8.23bn of bonds was issued from 14 deals.

Breakdown: USD 7.37bn of Investment Grade, USD 520m of High Yield and USD 340m of Unrated bonds.

New issue activity continued at strong pace, clocking in the biggest week of the quarter despite heightened market volatility. The Republic of Indonesia priced USD 3bn multi-tranche deal early in the week while China Development Bank priced USD 2.4bn of bonds in EUR and USD. The week also saw 3 tap issues from Chinese issuers. This brings the number of tap deals priced YTD to 53, totaling USD 9.2bn.

China Vanke priced USD 630m of 5.25 year bonds at CT5+250bps. The Chinese property developer saw good investor demand as the bonds eventually priced 35bps tighter from initial price guidance and books were 2.4 times covered. Vanke has issued USD 2.25bn across 3 deals so far in 2018, more than doubling its 2017 total issuance of USD 1bn. The new issue caused a repricing of Vanke’s curve more than 10bps wider.

Baidu tapped its 4.375% May 2024 bonds for another USD 250m, bringing total outstanding issue size to USD 850m. The tap was issued at T+162.5bps, almost 30bps wider than the first issue a month ago. Bonds were placed mostly into US fund managers.

For the week, 43 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 7 out of the 14 deals that were priced.

New issue pipeline winds down with 3 new mandates announced, yet to be priced.

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