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Bifurcation is emerging in how investors treat the hyperscalers
◆ Japanese financial services group's UK arm prints three year bond ◆ Orderbook falls as issuer prices 'very tightly' ◆ Week front-loaded ahead of ECB meeting
◆ Only euro IG corporate deal on Monday ◆ Issuer slashes the spread and increases size ◆ Single digit concession spotted
High yields are keeping investors interested for now
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Chinese property developers are rushing to sell dollar bonds as momentum picks up and the market stabilises. While heavy supply is weighing on investors’ minds, their familiarity with the sector and issuers’ willingness to pay up may be able to safeguard the deals.
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Yuexiu Property Company priced a two-tranche dollar bond on Thursday but decided to ditch a potential offshore renminbi deal. Separately, Peking University Founder Group Co returned with another bond with a keepwell structure for $425m.
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In an action not seen for years, a would-be Schuldschein issuer has been forced to withdraw its transaction because investors refused to participate, even after the lead bank offered much more attractive pricing terms.
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Some US private placement investors in London are investing more time and resources on bilateral US PP transactions that do not involve either syndication or agent banks, so as to gain full allocations and originate their own business.
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Fully investment grade rated China Vanke Co had a good run in the international debt market on Wednesday when compared to its real estate peers this week, raising $971m from a five year bond.
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Korea Resources Corp (KoRes) navigated a number of hurdles to complete its $500m bond on Tuesday to imminently refinance maturing notes. The company found plenty of support for its annual issuance, but only after it offered a juicy premium to investors.