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Thames's troubles are contained for now, but risk of contagion remains
Proceeds earmarked to refinance upcoming maturity
◆ Strong demand for first sterling bond under Andy Burnham's government ◆ Deal navigates market vol ◆ Concession small, but investors attracted to spread
◆ French real estate group prints seven year bond ◆ Covivio skips guidance and tightens spread sharply ◆ Investor selectivity returns as orders fall
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Asia’s dollar bond market finally sprang to life this week with a trio of investment grade names successfully pricing deals. Participants are now hoping that the market is open for business, but lingering volatility means trades will come with a bigger price tag, write Narae Kim and Rashmi Kumar.
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China Securities (International) Finance Holding Company has opened books for its debut offshore bond, while Qingdao City Construction Investment (QCCI) is planning to issue a senior perp for its second international outing this year.
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BMW continued a recent strong showing for auto issuers on Wednesday, attracting a strong order book for a dual tranche deal at a minimal new issue premium.
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UK packaging company DS Smith revived its debut euro deal on Wednesday, finally selling the seven year deal six months after originally mandating lead managers.
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German investment company JAB Holding sold its third bond on Thursday, also its third in less than 12 months. Despite the repeated issuance, the issuer was still able to rack up over €2bn of orders.
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Bankers had predicted a splurge of corporate bond issuance for this week, but as of Tuesday primary market activity was quiet. A pair of Spanish issuers made up the sole supply on Monday, with Iberdrola and Telefonica selling benchmark trades. They were followed on Tuesday by a benchmark from Swisscom, and a smaller trade from Finnish real estate company Citycon.