China

HSBC’s five year Samurai deal looks set to reach over ¥100bn ($1.2bn) at the tightest ever spread for the bank, on the back of thin supply in the market and a building cash pile. At the time of writing, the deal was set to close in Japanese trading hours on Friday. SBAB has also filed documentation for a five year Samurai.

HSBC’s five year Samurai deal looks set to reach over ¥100bn at the tightest ever spread for the bank, on the back of thin supply in the market and a building cash pile.

India’s Tata Steel opened the domestic market for corporate hybrid bonds last month. But not content to stop there, this week the company reopened the market, finding a handful of investors eager to buy a Rp7.75bn ($172.74m) bond.

HSBC’s third post-crisis Samurai looks set to be tightest ever for the British bank, with spread guidance of 31bp-33bp over offer-side yen swaps on the fixed rate tranche and 46bp-48bp over yen Libor for the FRN tranche.

Global Logistics Properties (GLP) became the first company to sell a seven year bond in the fast-growing dim sum market this week, pushing out the maturity of a market that is dominated by shorter dated issues.

Macau casino operator Melco Crown Entertainment is planning to make its debut in the fast-growing dim sum bond market, becoming the first Macanese borrower to test demand for offshore renminbi bonds this year — and only the second ever, after local rival Galaxy Entertainment sold its own deal at the end of last year.

United Overseas Bank’s Sydney branch launched and priced the Singaporean lender’s inaugural Australian dollar deal on Wednesday — a A$350m three year FRN that beat market expectations. Pricing was revised downwards twice during the deal’s execution and lead managers Australia and New Zealand Banking Group, HSBC, Macquarie Bank and UOB took A$1bn worth of orders.

Guangzhou R&F Properties was preparing to price a dual tranche renminbi and dollar bond on Wednesday evening after sounding out investors in Asia and Europe.

Offshore renminbi bonds continued to find appetite this week as investors rushed to put their deposits into high yielding securities. Guangzhou R&F Properties pitched investors with the largest deal, which featured renminbi and dollar tranches (see separate story), but several other issuers sought investors for their own pure renminbi deals.