S&P closed 0.1% lower and Nasdaq 0.3% lower. The FOMC maintained its dovish stance with Chairman Jerome Powell saying that it was “not time yet” and that the Fed were a long way from reducing support to the economy. US 10Y Treasury yields dipped on the back of the dovish Fed before ending almost unchanged. European indices were higher with bank stocks benefitting after their results – the FTSE and DAX closed up ~0.3% each and CAC up 0.5%. US IG CDS spreads were 0.7bp tighter and HY tightened 3.6bp. EU main CDS spreads were flat and crossover spreads widened 0.5bp. Asian equity markets are trading higher by 0.3% today and Asia ex-Japan CDS spreads were 1.3bp tighter.
New Bond Issues
- Nanjing Jiangbei New Area Industrial Investment 364-day $ notes at 3.1% area; books over $750mn
- XiAn Qujiang Cultural Industry Investment $ 3Y at 5.5%
- Guangzhou Finance Holdings Group $ 3Y at 2.75% area
Beijing Enterprise raised $700mn via a two-trancher. It raised $300mn via a 5Y bond at a yield of 2.107%, 50bp inside initial guidance of T+175bp. It also raised $400mn via a 10Y bond at a yield of 3.279%, 45bp inside initial guidance of T+210bp area. The bonds have expected ratings of Baa1/BBB+ and received orders over $4.6bn, ~6.5x issue size. Asia took 97% and EMEA 3%. Asset/fund managers received 29%, banks and financial institutions 68%, and private banks and others 3%. Proceeds will be used for offshore debt refinancing.
BIM Land raised $200mn via its debut dollar bond, a senior green bond at a yield of 7.75%, 12.5bp inside initial guidance of 7.875% area. The bonds have expected ratings of B2/B, and received orders over $625mn, ~3x issue size. Asia bought 58%, EMEA 41% and the rest went to offshore US investors. Fund/asset managers took 92% and private banks 8%. The Vietnamese property developer plans to use the proceeds to fund eligible green projects as well as for working capital and general corporate purposes.
Kookmin Bank raised $500mn via a 5Y Sustainability bond at a yield of 1.406%, 30bp inside initial guidance of T+85bp area. The bonds have expected ratings of Aa3/A+ and received orders over $2.1bn, 4.2x issue size. Asia took 73%, Europe 16% and the US 11%. Asset managers and insurers bought 47%, banks 33%, central banks and sovereigns, supranationals and agencies 19% and others 1%. Proceeds will be used for eligible projects under the Korean bank’s sustainable financing framework.
New Bond Pipeline
- Khazanah Nasional Berhad $ 5Y/10Y Sukuk
- KB Kookmin Card $ Sustainability bond
China Water Affairs Group $ green bond
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