March 30, 2017 / 10:46 AM / 6 months ago

ASIA CREDIT CLOSE: Credits stable with active new issues

HONG KONG, March 30 (IFR) - New issues dominated Asian credit markets on Thursday as at least eight issuers were marketing US dollar bonds in the region.

“Market sentiment remained constructive and stable since a US rate hike earlier this month, though market participants are expecting another increase in June,” said a Hong Kong-based investment-grade credit trader.

Asian credit spreads were almost flat. The iTraxx Asia IG index, which has rolled into Series 27, was quoted less than 1bp tighter at 93.4/94.6bp.

Trading was more concentrated on newly issued bonds.

ICBC Financial Leasing’s US$2bn two-tranche notes were mixed with its 3-year tranche 2bp wider and its 5-year piece 5bp tighter.

Trader said the weakness of the 3-year tranche was mainly due to the relatively larger issue size.

The US$1.15bn three-year tranche was reoffered at 150bp over US Treasuries, while the US$850m five-year tranche was reoffered at 152.5bp over.

Hyundai Capital America’s US$1.1bn three-tranche notes were also traded mixed. Its 3-year floaters and 5-year fixed-rate notes were flat, while its 3-year fixed-rate notes traded 6bp tighter.

Swiss private-banking group EFG International’s newly priced US$400m 5.00% 10-year non-call 5 notes gained 0.35pt to 100.35.

Reporting by Carol Chan; editing by Dharsan Singh

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