Greenland Holding bonds ‘hold firm’ following ratings revision; China’s Tewoo issues bonds

By Aleesia Forni

Virginia Beach, July 31 – Asian credit spreads closed mostly unchanged on Friday, while Chinese property names “held firm” following Moody’s revised outlook on Greenland Holding Group Co. Ltd. to negative, “sending the curve 25 basis points to 30 bps wider on the day,” a trader said.

In other trading from that region, Korea Gas Corp.’s bonds due 2025 were quoted tighter at 118 bps bid, 115 bps offered.

“Malaysia was the underperformer today,” a trader said, with bonds from that region trading 5 bps to 10 bps wider on Friday.

Malaysia’s five-year CDS swaps widened 6 bps on the day to 146 bps bid, 152 bps offered.

In the primary sphere, China’s Tewoo (H.K.) Ltd. was in the market with a new $300 million offering of 12-year bonds.

Tewoo new issue prices

Tianjin, China-based Tewoo sold a $300 million offering of 6% 12-year notes (A1) at par during the session on Friday.

ANZ was the bookrunner.

The company focuses on commodity trade, logistics, real estate development and other businesses.

Korea National Oil eyes deal

In forward calendar news, Korea National Oil Corp. (KNOC) is planning to price a dollar-denominated offering of bonds (Aa3/AA-), a market source said Friday.

The Anyang, South Korea-based company has tapped Barclays, Citigroup, Goldman Sachs, HSBC, Korea Development Bank and UBS Securities as the bookrunners.

Korea National Oil is an oil and gas production and exploration company.

DBS Bank widens

DBS Bank Ltd.’s $1 billion 1 5/8% covered bonds due 2018 that priced Wednesday were quoted around 2 bps wider on Friday, a market source said.

The notes traded at 61 bps bid, 59 bps offered over the session.

Pricing was at 99.948 to yield 1.643% with a spread of mid-swaps plus 37 bps, or Treasuries plus 59.6 bps.

DBS, Deutsche Bank AG, Singapore Branch, J.P. Morgan Securities plc and Societe Generale were the joint global coordinators, joint lead managers and joint bookrunners for the Rule 144A deal. Barclays Bank plc, Singapore Branch and Citigroup Global Markets Singapore Pte. Ltd. are joint lead managers and joint bookrunners.

The proceeds will be used for general business purposes.

Ukraine bonds see support

In other news, sovereign bonds from Ukraine lifted to close the week, a market source said, and the curve was stronger by a ˝ point.

He noted better bids in DTEK and MHP SA over the session, with a focus on DTEK following news that a court had reversed the company’s ownership of a 25% stake in thermal power generator Dniproenergo.

Christine Van Dusen contributed to this review

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.