HONG KONG, Sept 7 (IFR) - Asian credits were solid on Thursday with most of the new issues performing well, except Sinopec.
Investment-grade credits, in general, were 1bp-2bp tighter, according to a Hong Kong-based trader.
“The market tone is generally supportive today,” the trader said, adding that any news relating to geopolitical tensions on the Korean Peninsula, however, will continue to affect market sentiment.
The iTraxx Asia IG index tightened marginally to 78.4bp/79.1bp.
New issues priced last night performed well, Sinopec excepted, according to the trader.
Sinopec’s US$3.25bn four-part US dollar bonds traded 2bp-3bp wider.
The Chinese state-owned oil giant priced US$700m 2.25% three-year, US$1.4bn 2.5% five-year, US$750m 3.25% 10-year and US$400m 4.0% 30-year notes at Treasuries plus 87.5bp, 97.5bp, 120bp and 128.4bp, respectively.
Woodside’s US$800m 3.7% 10.5-year bond traded around 3bp tighter versus reoffer of 160bp wide of Treasuries.
Philippine conglomerate Ayala’s US$400m 5.125% fixed-for-life perpetual non-call five notes, priced at par, traded up to 102.
China Aoyuan Property’s US$250m 5.375% 5-year non-call three notes, priced at par, were bid at 100.3.
Lai Sun Development’s US$400m 4.60% 5-year notes, priced at par, were hovering at reoffer.
Reporting by Carol Chan; Editing by Vincent Baby