HONG KONG, Oct 7 (IFR) - JD.com's bonds jumped this week
after Wal-Mart Stores raised its passive stake in the company to
10.8%, rescuing them from a poor secondary performance after the
Chinese e-commerce company priced the notes in April.
The US$500m 3.125% 2021s and US$500m 3.875% 2026s tightened
about 5bp-7bp this week, driving the bonds close to the
respective T+190bp and T+220bp level they priced at.
Both tranches were battered in the aftermarket after Nomura
and Fitch Ratings published reports saying China's largest
direct sales online retailer did not have an investment-grade
credit profile due to its low profits and weak cash generation.
The bonds were rated Baa3/BBB- (Moody's/S&P), on par with
Spreads on JD.com's 10-year tranche blew out more than 40bp
after pricing, while the 5-year notes over 25bp wider. Recently
the bonds have been steadily tightening, thanks to a global bid
for emerging-markets bonds.
Elsewhere in Asian credit, a Singapore-based trader said
strong bidding was spotted in the short-end of curves as
investors were seen shorting duration.
On the sovereign front, Vietnam's US$1bn 4.8% 2024s dropped
about a third of a point in the past two days to yield around
3.92%, while Indonesia's US$2.25bn 4.75% 2026s dropped by a
similar amount to 110.86/111.12, according to Tradeweb.
(Reporting by Frances Yoon; Editing by Vincent Baby)