UBS

The Asian high yield market seemed to have finally got going in late January, with a parade of borrowers successfully pricing bonds. But the apparent failure of trades from two southeast Asian credits has taken its toll, shutting the market to further deals. With conditions already difficult, leads should act more responsibly — and say whether the bonds are going ahead or not.

Hong Kong’s second largest broadband internet provider, HKBN, has started gauging investors’ appetite for its IPO of around $600m, with the company’s strong credentials and large market share in the city expected to play a big role in wooing investors.

Indonesian hospital operator Mitra Keluarga has kicked off the pre-marketing stage of its $300m domestic IPO, with initial positive feedback from investors leading to plenty of anchor demand already in hand.

DFS, the UK furniture retailer known for its prolific television advertising and continual discount sales, announced its IPO on February 6, hoping to raise about £105m. Jefferies and UBS are global coordinators, with Numis Securities bookrunner.

Equity block trade activity picked up in Europe this week, though bankers still think it can get busier, as companies emerge from blackouts in the coming weeks.

The month-long gloom in Chinese property credits is finally dispersing after Shimao Property Holdings priced the sector’s first high yield bond of the year on February 3. Not only did the deal attract a huge order book but it also managed to attain solid pricing.

The Asian high yield market has finally opened up, with issuers pouring in to get a start on their backlogged funding. But as a pair of first-time southeast Asian companies were forced to extend bookbuilding after failing to gain sufficient appetite, bankers said the market was not yet ready to embrace untested and unknown issuers.

Three block trades are in the market, as secondary placement activity remains busy. The most exotic of the trades is for Sergey Galitsky, founder of the Russian retailer Magnit, who is selling up to 1m shares in the business – apparently to finance improvements to the stadium at his football team, FC Krasnodar.

The month-long gloom surrounding Chinese property credits looks to be finally dispersing after Shimao Property Holdings priced the sector’s first high yield bond of the year on February 3. Not only did the transaction attracted a huge order book, it also managed to attain solid pricing, which paves the way for its peers to follow.

Chinese technology giant Tencent has decided to go ahead with a Reg S/144A transaction while it was in the middle of non-deal roadshow after it wasencouraged by strong feedback from US investors and the recent robust trading sessions.

International bond investors welcomed back Tower Bersama for the first time in two years as the Indonesian telecoms tower operator priced a $350m seven year non-call four offering on February 3. On the back of strong demand, the issuer achieved the lowest ever yield for a seven or longer tenor offering from a private Indonesian company in the high yield market.

Clayton Dubilier & Rice launched a highly successful block trade in B&M Retail, the UK discount retailer, this evening. By 6.30pm the trade had been increased from 100m shares to 120m, and was set to be priced at the day’s closing price, making the block worth £384m.