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ASIA CREDIT CLOSE: Asian credits just wider; mixed trade in new issues
November 7, 2017 / 8:13 AM / a month ago

ASIA CREDIT CLOSE: Asian credits just wider; mixed trade in new issues

HONG KONG, Nov 7 (IFR) - Asian credits were slightly wider on Tuesday, while there was mixed trading in new issues.

Investment-grade credits generally traded around 1bp wider, with Huarong’s bonds remaining under pressure as the curve widened 1bp-2bp, according to a Hong Kong-based trader.

The trader said he continued to see inflow into Korean credits as Kexim’s curve tightened a further 1bp-2bp.

China’s 2.125% 2022 and its 2.625% 2027 sovereign bonds issued late last month were flat at 16bp and 22bp, respectively.

The iTraxx Asia ex-Japan IG index was marginally wider at 75.5bp/76.0bp. New issues priced yesterday traded mix.

ANZ’s US$2.75bn four-part notes traded well with its 3-year tranche 1bp-2bp tighter and five-year piece 3bp-4bp tighter.

The Australian bank priced 3-year and 5-year fixed-rate notes 53bp and 65bp wide of Treasuries, respectively. Its 3-year and 5-year floating-rate notes had respective prices of 32bp and 58bp over three-month US Libor.

AVIC International Leasing’s US$300m 3.00% 2020s were 1bp tighter from reoffer of 137.5bp wide of Treasuries.

Far East Consortium International’s US$150m 4.50% 2023s fell 0.25 point to 99.75, while Guotai Junan International’s US$300m 2.80% 364-day notes were flat.

In the high-yield segment, Evergrande’s 7.50% 2023s rose 0.6 point to 102.1, while its 8.75% 2025s added 0.8 point to 105.1.

The company recently took in Rmb60bn (US$9.05bn) through a third round of fundraising for its property assets business, targeted for a back-door listing in Shenzhen.

Meanwhile, KWG’s 5.20% 2020s fell 0.05 point to 99.244 as the Chinese property developer marketed new 7-year non-call four US dollar senior bonds at initial price guidance of 6.20% area and later tightened to 5.875%-6.00%.

Reliance Communications’ 6.50% 2020s were flat, even though the Indian telecom operator said it had missed a coupon payment of about US$9.75m on the bonds.

The missed coupon was well expected and its bonds have fallen 15 points since October and were bid at 40.50 in late afternoon.

Reporting by Carol Chan; Editing by Dharsan Singh

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