September 14, 2017 / 8:04 AM / 10 months ago

ASIA CREDIT CLOSE: New issues gain amid busy primary market

SINGAPORE, Sept 14 (IFR) - Newly priced bonds were firmer today amid constructive markets, though weaker Chinese economic data dampened equity markets in the region.

China’s fixed-asset investment, factory output and retail sales grew at a slower-than-expected pace, adding to concerns over an economy beginning to lose steam. The MSCI Asia-Pacific Index was 0.1% lower.

Asian credits shrugged off the gloomy data with the iTraxx Asia investment-grade index flat at 73bp/74bp.

Cash bonds put in stronger performances with Wynn Macau’s 10NC5 notes, priced yesterday at par, rallying to 101.3/101.6. The shorter-dated 2024s were seen at 100.75/101.125 against reoffer at par.

Korean bonds were still in demand with Shinhan Bank’s newly priced Tier 2 notes quoted at 166bp/163bp over US Treasuries, after opening slightly tighter at 167bp from reoffer spread of 167.5bp.

High-yield CSI Properties, which priced a small print of perpetual notes yesterday at par, saw its new paper at 99.80/100.10.

The stable environment has encouraged KNOC and China’s Red Star Macalline to market respective bonds today.

Elsewhere, Reliance Communications’ bonds were dampened on news that the Ericsson’s Indian arm had filed a petition to drag the debt-laden telecom company into insolvency for unpaid dues.

The 6.5% 2020s slipped from 57.00/62.00 in early trading to 57.00/60.00.

Reporting by Kit Yin Boey; Editing by Dharsan Singh

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