APAC (ex-Japan) HY USD bonds’ average size in February lowest since April 2020

Data Insight DebtDynamics 10 March

APAC (ex-Japan) HY USD bonds’ average size in February lowest since April 2020

By Jason Huang-Jones

The average deal size of Asia Pacific (ex-Japan) USD high-yield bonds in February fell to the lowest monthly level since April 2020, in line with a decline in the overall volumes.

Average deal size was USD 168.4m in February this year, halved from the USD 335.2m recorded in February last year. Overall volume during the month was down 85.2% YoY to USD 842m across five deals from USD 5.7bn via 17 deals in February 2021. In April 2020, the average deal size was USD 148.75m, based on a total volume of USD 595m from four transactions.

Greentown China was the only Chinese real-estate company to issue HY bonds last month with a USD 150m tap of its original USD 300m 4.7% due-2025 notes. Other HY deals comprised Yunnan Provincial Investment Holdings Group’s USD 200m 6.5% three-year bonds and Xinjiang Financial Investment’s USD 67m 5.6% due-2025 notes. Outside China, Macau casino-operator Studio City priced USD 350m 7% 5NC2 bonds, while Hong Kong financial-services company Sun Hung Kai & Co priced a USD 75m reopening of its original USD 375m 5% due-2026s.

Xinjiang Financial Investment separately sold two credit-enhanced bonds in February: USD 28m 2.7% notes with a standby letter of credit (SBLC) from Industrial and Commercial Bank of China Xinjiang branch (bank rated A1 by Moody’s/A by S&P/A by Fitch) and USD 20m 2.7% notes backed by Bank of China Xinjiang Branch (bank rated A1 by Moody’s/A by S&P/A by Fitch).

Last Friday (4 March), the issuer priced another two SBLC-backed deals: USD 70m 2.88% notes backed by Bank of Beijing Urumqi Branch (bank rated BB+ by Fitch) and USD 15m 2.7% notes backed by Postal Savings Bank of China Urumqi Branch (bank rated A1 by Moody’s/A by S&P/A+ by Fitch).

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