Bank of America

Telecommunications infrastructure giant China Tower found huge demand for its multi-billion-dollar IPO this week as it kicked off bookbuilding in Hong Kong. The deal is a counter-balance to a flood of technology listings in the market this year. Jonathan Breen reports.

Pinduoduo, one of China’s hottest technology start-ups, sealed its $1.6bn IPO at the top end as expected, but not all American Depository Share (ADS) listings were so lucky this week as investors remained on edge.

South Korea’s steel company Posco returned to the dollar bond market on Wednesday, breaking a seven year hiatus. It easily locked up a $500m trade after investors lapped up the rare notes.

Nonghyup Bank returned to the dollar market on Monday, making the most of an improvement in investor sentiment. The South Korean bank was able to price its new bond with little to no new issue premium.

Mainland telecommunications infrastructure giant China Tower hit the road on Monday to start drumming up interest in its HK$68.1bn ($8.7bn) IPO, according to a senior banker on the deal.

Management at Goldman Sachs and Morgan Stanley used second quarter earnings calls to reassure investors about their exposure to leveraged loans, under questioning from RBC Capital Markets’ Gerard Cassidy, as fears grow about leverage levels and weak covenants.

IHS Markit exploited the lull in high-grade supply to grab investor attention with its investment grade debut.

Rating: Aaa/AAA

The World Bank is keen to bring a euro benchmark this year, having been absent from that segment for nearly two years. The supranational this week made a triumphant return to dollars, setting a 2018 record for the tightest swap spread on a three year dollar benchmark so far.

Electricity network operator Terna has sold the first investment grade corporate bond from an Italian issuer since the formation of the country’s new government and was rewarded with an order book that was more than 5.5 times subscribed, demonstrating an investor base that is open to Italy risk once more. Nigel Owen reports.

Korea Hydro & Nuclear Power (KHNP) raised $600m with a green bond on Wednesday, offering no new issue premium to an investor base desperate for environmentally friendly assets.

Bankers marketing the latest crop of IPOs from China’s technology sector got their game face on this week amid escalating fears of a trade war with the US.