Three single-B rated Asian bond transactions were pulled this week, by B+/B/B2 rated Indonesian coal producer Geo Energy Resources, B+/B+ rated leasing company Lionbridge Capital China and India’s B1/B+ rated Continuum Energy, as they complained of higher than expected borrowing costs. Nevertheless, the failed issues hardly affected the rest of the Asian bond market, with another high-yield new issue completed on the same day trading higher on its debut. Investors viewed the cancelled deals as market indigestion following a series of very low-grade borrowers rushing to beat the impending summer lull. True enough, Asian companies have been borrowing record amounts this year, with dealogic figures at US$181.6 billion of G3 issuance as of 21 July 2017 year-to-date, as compared to US$193.4 billion sold over the whole of 2016.
