HONG KONG, Jan 12 (IFR) - Asian credits were firm on Friday with new issues rallying despite heavy primary supply.
Tencent’s jumbo US$5bn four-tranche bond was one of the market focuses today with its new 5-year bonds trading 2bp tighter, the 10-year bonds 7bp tighter and the 20-year bonds 6bp tighter.
The Chinese internet giant priced a US$1bn 2.985% 5-year fixed-rate tranche at Treasuries plus 65bp and a US$500m floater at Libor plus 60.5bp.
A 3.595% US$2.5bn 10-year fixed-rate note priced at Treasuries plus 105bp, and a 3.925% US$1bn 20-year at Treasuries plus 105bp.
“Market sentiment was good and we continue to see inflow into credits,” said a Hong Kong-based trader.
The trader said investment-grade names, in general, were about 1bp-2bp tighter. He spotted buying into some Chinese bank AT1s such as those of China Construction Bank and Postal Savings Bank of China.
The iTraxx Asia ex-Japan IG index was 2bp tighter to 60.0bp/60.9bp.
Other new issues priced last night also traded well. State-owned Power Construction Corp of China’s US$500m 4.25% senior perpetuals rose 0.15 point to a bid of 100.15.
Philippine oil refiner Petron’s US$500m 4.6% senior perpetuals also rose 0.15 point to a bid of 100.15.
High-yield bonds also gained.
Yingde Gases’ newly priced US$500m 6.25% 5-year non-call 3 bonds were bid at 100.25, versus reoffer price of 99.788 or a reoffer yield of 6.30%.
Chinese property developer Golden Wheel Tiandi’s US$200m 7.00% 3-year bonds were bid at 99.75, versus reoffer price of 99.337 or reoffer yield of 7.25%.
Reporting by Carol Chan; Editing by Vincent Baby