Asian Credit Market Developments

Mitsubishi UFJ Lease & Finance,In the international local currency bond market, Mitsubishi UFJ Lease & Finance has priced a debut RMB200mn two-year Dim Sum bond at 1.65%. The deal follows the first Dim Sum bond issuance out of Japan from Orix Corp and was executed after a roadshow in Hong Kong from last Wednesday.

In the pipeline, Woori Bank has wrapped up investor meetings on April 1. A potential subordinated deal could emerge subject to market conditions. Hana Bank is slated to commence investor meetings for a USD bond next week from April 4 in New York and London before proceeding to Boston on April 5, Los Angeles and Singapore on April 6 and wrap up in Hong Kong on April 7. Uniflora Prima, one of the biggest cocoa processors in Indonesia, commenced a roadshow for a debut five-year USD bond on March 31 in Hong Kong and Singapore on April 1, and to be carried on in Los Angeles on April 4, Boston on April 5, New York on April 6 and London on April 7.

Hong Kong/China Market Update

Hong Kong shares were higher on Monday in brisk trade, largely supported by financial majors as news of impending high-profile listings boosted investors bullishness on Hong Kong Exchanges and Clearing Ltd (HKEx), extending a two-session winning streak. The benchmark Hang Seng Index had gained 1.09% to 24,061.27. Hong Kong's main stock index gained 2.8% last week and finished the first quarter up 2.1%.

Lotte Shopping, South Korea's second-largest retailer, raised US$400m on Thursday by selling 5-year bonds in Hong Kong. The bonds carry an interest rate of 180 basis points above U.S. government debts. Further, Century Tokyo Leasing Corp. plans to sell about RMB300m (US$45m) of three-year Dim Sum bonds in Hong Kong this month. The company will transfer the proceeds of these bonds to mainland China, for use by its unit there.

Further, the week also saw Bright Food Group Co., a food and dairy company, indicating its plans to raise as much as RMB6bn (US$916m) this year by selling bonds and listing a unit to fund acquisitions and boost production capacity. Bright Food may also list its food assets as a group in Hong Kong in three years as it seeks to buy overseas companies in industries including sugar, dairy, and food production and distribution.

The HKD primary bond market had seen stronger momentum last week along with the broader market, with total pricing of over HKD 2 billion from 10 transaction. Notably, Barclays Capital led SingTel’s first HKD notes offering and priced the HKD 620 million transaction at 3.32%