HONG KONG, Feb 15 (IFR) - Asian credits saw active trading
on Wednesday as Huawei's well-received new issue continued to
tighten in the secondary market.
The Chinese telecommunications company attracted more than
US$7.6bn of orders for a US$1.5bn unrated multi-tranche offering
The five-year and ten-year notes were 5bp-7bp tighter after
reoffer pricings on both tranches squeezed about 30bp from
initial price guidance.
"Undersubscribed fund managers and Chinese banks chased the
notes in the secondary market," said a Hong Kong-based credit
He said that tight pricing on the back of a massive order
book not only led to the repricing of Huawei's curve, but also
to that of Chinese internet companies such as Alibaba. He noted
that Alibaba's 2024 were spotted about 4bp tighter.
However, recent new Chinese bank issues underperformed on
heavy supply. Shanghai Pudong Development Bank's new 2020s were
bid at 103.7, according to Tradeweb.
The iTraxx Asia ex-Japan investment grade was 1.14bp wider
in the afternoon.
In the high-yield sector, Yingde Gas's US dollar notes were
among the biggest movers, falling 1-2 points in cash prices,
said another trader.
Air Products, which is in a potential takeover discussions
with Yinde Gas, issued a letter yesterday refuting that it has
received due diligence materials from Yingde Gas.
(Reporting by Ina Zhou; Editing by Vincent Baby)