Loans and High Yield

Chinese issuers are storming the debt market this week, with Tuesday seeing the Export-Import Bank of China (Chexim), Shanghai Commercial Bank and Oceanwide Holdings Co among the borrowers enticing investors.

China State Construction International Holdings and Shenzhen International Holdings are taking bids for dollar bonds, while Yiwu State-owned Capital Operation Co has mandated banks for a Reg S deal. On the other hand, Lifestyle International Holdings has decided not to pursue its fundraising for the time being.

The euro high yield market woke up to a thin bond pipeline this week after suffering the largest weekly retail fund outflow since 2015. But this is not the end of trading for the year, said bankers and investors.

The European Commission’s Expert Group on corporate bond markets has recommended reforming the Market Abuse Regulation to ease market soundings rules. But it also plans to toughen up standards in high yield markets, supporting ‘transparent and fair’ allocation methods, and to work on ways to cut order inflation.

Deals topping €1bn are becoming more common in the European leveraged loan market, pushing gross issuance to annual record levels. CeramTec announced the latest, with a €1.1bn leveraged buyout.

China’s Liaoning Fangda Group Industrial Co and BlueFocus Communication Group Co are meeting investors this week for their first international bond offerings. Huarong Real Estate Co, meanwhile, will hit the road for a euro deal.

Sino Horizon Holdings, a Chinese property developer, has opened a $600m refinancing into general syndication with retail banks.

Indonesian energy company ABM Investama reopened its five non call three year bond from July on Monday, looking to add to the original $300m print.

Centratama Telekomunikasi Indonesia, an IT and internet services provider, is in the market with a triple-tranche $390m loan tied to its M&A plans.

Philippine homebuilder Vista Land & Lifescapes is back in the offshore debt market after a near two year break, and is taking bids for a new transaction.

Home Credit Vietnam has put together a $80m borrowing with four banks. The deal marks the firm’s second loan in the international market.

Government-backed Inner Mongolia Baotou Steel Union Co has become the latest issuer in Asia to pull a dollar bond, faced with a market overloaded with supply.