DBS

Chinese real estate companies Zhenro Properties and China Aoyuan Group reopened the Asian offshore bond market with a bang, as cash rich investors flocked to their transactions.

Singapore-listed Mapletree Industrial Trust (MIT) has bagged S$201m ($147.9m) after upsizing an overnight unit placement on the back of strong early demand.

Chinese property issuers led the reopening of Asia’s offshore bond market following a week-long holiday in the Mainland to celebrate the Lunar New Year. Investors responded to the new deals with enthusiasm.

Chengdu Economic and Technological Development Zone State-Owned Assets Investment, a Chinese local government financing vehicle (LGFV), raised a larger-than-expected $250m from its inaugural appearance in the offshore market that was over two months in the making.

There was a wall of supply from Chinese property companies at the start of the week. Road King Infrastructure and Yuzhou Properties brought a pair of callable four year bonds, but Jingrui Holdings and Fantasia Holdings Group both stuck to the very short-end of the curve.

Singapore’s Interplex Holdings has returned for a $400m five year loan to refinance a 2016 borrowing that supported its acquisition by Baring Private Equity Asia.

Logistics real estate developer ESR Cayman turned to the Singapore dollar market this week to bring down its cost of funding, adding S$150m ($110m) to its coffers.

Hong Kong-listed Wharf Holdings, whose operations span property development and investment, is seeking a HK$8bn ($1bn) borrowing at tight levels.

Bharat Petroleum Corp (BPCL) took advantage of the new guidelines from India’s central bank to roll out a three year bond, opting for a maturity it was previously blocked from tapping.

BOC Aviation took advantage of upbeat market conditions to raise $500m from a quick drive-by transaction.

Hong Kong-listed Lenovo Group has given Asia its first real taste of equity-linked issuance for the year. The firm raked in $675m from its debut convertible bond (CB) after a flood of investors turned out for the deal, and as bankers gear up for more issuance. Jonathan Breen reports.

Indian bond issuers have started 2019 with a bang, enjoying the benefits of an optimistic dollar debt market. But with a national election looming — and with no guarantees that credit markets will not take a turn for the worse — it will be far from plain sailing. Morgan Davis reports.