June 21, 2017 / 9:16 AM / 5 months ago

ASIA CREDIT CLOSE: Credit under pressure from falling oil prices

HONG KONG, June 21 (IFR) - Falling oil prices weighed down on demand for Chinese industrial and oil and gas credits.

Asian oil and gas names like Sinopec’s 2026s were 2bp-3bp wider on profit taking, while Indonesia’s state-owned energy company Pertamina was down 50 cents on a cash price basis, according to a Singapore-based trader.

Weaker sentiment in the sector also put pressure on Hilong Holding’s 7.25% 2020s, which were trading around a bid/ask of 95.50/97, according to Thomson Reuters data.

The broader sentiment was not conducive for Chinese oil and gas company Brightoil Petroleum (Holdings), which had to postpone a US dollar bond offering.

Sole global coordinator and bookrunner ANZ was marketing the 3-year non-call 2 senior unsecured notes yesterday at around 9%.

The Asia ex-Japan iTraxx investment-grade index was 2bp wider at 86bp/87bp.

Asia’s high-yield property sector saw more attention as China Evergrande Group began marketing the new-money component of its exchange offer.

While Evergrande’s 2024s were down three-quarters of a point, traders cited private bank demand for Country Garden and Fantasia.

Reporting by Frances Yoon; Editing by Vincent Baby

Our Standards:The Thomson Reuters Trust Principles.
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