Loans and High Yield

China Grand Automotive Services Co and Poly Property Group raised $300m and $350m, respectively, on Tuesday, squeezing through a narrow window before the Hong Kong market closes for a four-day break.

Hong Kong-listed conglomerate Fosun International launched a $500m loan into general syndication this week, according to bankers close to the deal.

Asian bond issuers drew mixed responses this week as they pushed out last minute deals before regulatory funding quotas expire at the end of the month. As new issue premium demands and small fundraising sizes continue to hinder borrowers, attention has turned to whether the forthcoming holidays will bring a market reset. Morgan Davis reports.

This week has not looked like anyone’s ideal opportunity for issuing corporate bonds in Europe, especially a challenging debut hybrid with a speculative grade rating. But Akelius, the Swedish housing company, saw a chance and pushed ahead.

European levfin investors are optimistic as the market heads into the Easter break, with buyers enjoying better pricing and terms even as issuers prepare to launch a fresh bout of speculative grade paper over the next few weeks.

China’s Zhengzhou Zhongrui Industrial Group has sold a two year bond, making the unusual move of tightening pricing after releasing guidance at a fixed level. The issuer raised a small $85m, but still outdid some of its peers.

Chinese auto rental company Car made its debut in the offshore renminbi bond market on Monday, but had to settle for a modest deal size in exchange for an aggressive price.

China’s Agile Group Holdings and Taizhou Huaxin Pharmaceutical Investment Co reopened their old bonds on the back of some anchor orders on Monday, in an attempt to use as much of their fundraising quotas as possible before the end of the month.

The pipeline of high yield deals from German real estate borrowers is finally building up after more than two years of work with underwriters and lawyers. A new €300m bond from Corestate should pave the way for more players to shift their funding from bank loans to bonds, said market participants.

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Four Chinese issuers hit the market with new transactions on Monday, despite the credit market ending on a weak note last week. As the companies try to make use of their remaining fundraising quotas, the focus remains on new issue premiums.

Personal computer maker Lenovo priced a $750m deal on Thursday as part of a liability management exercise, switching some investors out of an old bond that will mature next year. But like others in the market, the borrower had to pay a double-digit new issue premium to ensure success.