Loans and High Yield

T-Mobile US has lined up $38bn of fully committed loans to finance its $26bn purchase of US telecommunications company Sprint.

Indonesian property company Bumi Serpong Damai returned to the debt market on Monday for a quick $50m tap to its $250m 7.25% 2021 bond that was sold last week.

Poly Property Group and Hong Yang Group Co raised funds from the dollar bond market last Friday, with the former opting for a tap of its outstanding paper and the latter going down the short-term note route.

Hong Kong-listed real estate company Agile Property Holdings launched a HK$6bn ($765m) deal to the market last week, wooing lenders with a juicy margin and all-in pricing.

The debt market in Asia ended the week on a muted note, with both investment grade and high yield dollar spreads widening amid a rise in US Treasury yields. The primary bond market was also quiet with no international issuance on Thursday and a lone Chinese issuer collecting bids on Friday.

Two issuers with double-B ratings, Darling Ingredients and Avast, achieved substantial financial cost savings with repricings this week, as pricing for top rated paper still looked attractive despite a recent uptick in spreads.

The benchmark US Treasury 10 year yield moved through the 3% level this week, creating what some say was unnecessary panic in the market. That was clearly reflected in the dollar bond issuance in Asia, with some borrowers ploughing ahead with well-received 10 year transactions and others ditching the tenor altogether. Addison Gong reports.

Dan Cohen has left his job as head of high yield trading at HSBC to work for Nomura in the same position.

Europe’s supply and demand in primary markets for corporate high yield debt has eased and fund managers like the new climate. Lower supply would afford debt buyers a better opportunity to check on deals and push back when needed, some said this week.

One piece of information all parties focus on for new corporate bonds is the premium the issuer pays. For much of last year and the early part of this, the premium at any given time was broadly applied across all new issues, but investors have forced syndicates to be more precise in what over what individual issuers pay.

Beijing Enterprises Water Group (BEWG) raised $500m on Tuesday to retire a bond maturing in May, finding support from investors despite the numerous unrated state-owned options available to them.

Central China Real Estate was back in the offshore debt market on Tuesday with a Singapore dollar deal, just a week after sealing a US dollar bond.