TOKYO: The Export-Import Bank of Korea has reopened the new issue markets for Asian borrowers in US dollars with an USD1bn 10-year Global that printed overnight. Underlining the spot on pricing and the new issue concession, the newly sold bonds are trading tighter by 2bp-3bp from the 245bp over Treasuries print.
The deal drew demand of USD3bn from 210 investors, more than half of which were from the US (54pc). Asia accounted for 36pc and Europe for 10pc of the deal.
Funds and asset managers took 62pc, while insurers and pension funds came in for 21pc. Commercial banks took 6pc, while central banks came in for 5pc.
Private banks and other investors took 3pc each. The strong demand reflected the fair pricing on the transaction, which priced at the low-end of final guidance of 245bp-250bp over.
The bond printed at 99.456 and a coupon of 4.375pc for a yield of 4.443pc.
It came at a decent new issue premium to the USD1bn 10.25-year due January 2021 bond, which was trading at 207bp-202bp over UST when the new deal was announced, but widened thereafter by about 10bp. On a curve adjusted basis that worked out to 228bp over meaning that the new bond offered a new issue premium of 18bp to the 2021s, which is in line with other trades globally.
Bank of America Merrill Lynch, Credit Suisse, Daiwa Capital Markets. Goldman Sachs, HSBC and JP Morgan were the joint bookrunners on the deal with Woori Investment & Securities as joint lead.
Kexim's last foray in the G3 currency bond markets was in early July when it raised JPY80bn (USD1.03bn) through a three-part Samurai bond - its first borrowing in the public wholesale yen market since June 2007 and also the largest-ever Samurai out of South Korea.
Prior to that Kexim raised USD700m via a 5.5-year bond that priced at 170bp over UST in mid-April.
Kexim's new deal is rated A1/A (Moody's/S&P) - same as the borrower, which is also rated A+ by Fitch. The new bond settles on September 15.
Export-Import Bank of Korea (A1/A/A+) raised AUD200m (USD212m) from a 2-year fixed rate Eurobond that priced on Wednesday in a deal arranged by Goldman Sachs. The new 5.35pc September 19 2013s, which printed at par, was issued out of Hong Kong and targeted European investors.
KEXIM priced overnight an USD1.0bn 4.375pc 10-year Global bond at a yield of 4.43pc, 245bp over Treasuries in a deal arranged by joint bookrunners Bank of America Merrill Lynch, Credit Suisse, Daiwa Capital Markets. Goldman Sachs, HSBC and JP Morgan.
Lafarge Shui On, a joint venture between Lafarge Group and Hong Kong-based Shui On Construction & Materials Co, has mandated Citigroup, HSBC, Mitsubishi UFJ Securities and Standard Chartered for a series of investor meetings that could potentially lead to a renminbi-denominated and -settled bond in Hong Kong.
The company will hit the road in Singapore on September 13 followed by Hong Kong a day later. Should a deal materialise, it will be in the Reg S format and will feature an irrevocable guarantee from Lafarge. The French cement giant is rated Ba1/BB+ (Moody's/S&P) and has a stable outlook from both agencies.
French gas provider Air Liquide has raised CNY1.75bn (USD271m) from its debut 5-year offshore renminbi bond priced at 3pc, in line with the guidance yesterday.
This deal marks the first ever French Dim Sum bond issue and the largest 5-year transaction from a Western corporate issuer. The world's largest industrial gas company has also reopened issuance in the 5-year maturity for Western corporates, which had not printed in that tenor since before the recent bout of volatility began.
This transaction follows very well-attended investor meetings in Hong Kong and Singapore in late August. On the back of a positive market backdrop in the renminbi market, the strong investor reception for this trade led to a total order book in excess of CNY3bn from 68 accounts.
The issuer received all required approvals to raise and remit the funds onshore ahead of launch. Proceeds will be used for Air Liquide's growing activities in mainland China.
Hong Kong investors booked 52pc of the deal, followed by Singapore at 33pc, Europe at 12pc and others at 3pc. In terms of investors, fund managers took 74pc, banks 10pc, and private banks at 12pc and others at 4pc.
Bank of China (Hong Kong), HSBC, ICBC International and Standard Chartered led the deal.
Comments
Comments are closed.