The Asset writes Wednesday that April and early May have seen a surge in bond issuance from Chinese firms.
- State Grid of China US$5 billion multi-tranche offering was largest dollar bond offering in Asia this year
- China Southern Power sold US$1.5 billion of bonds in two tranches
- China Huarong Asset Management sold US$2.97 in multi-tranche deal
- “Chinese supply has been substantial and well absorbed, which shows the positive sentiment of international investors towards China risk,” says capital markets banker
- Strong response in early April to US$3.4 billion benchmark bond offering from China Petroleum Corporation (Sinopec) – other oil company offering will likely follow in coming months
- Moody’s assigned a Aa3 rating to senior unsecured notes issued by Sinopec Group Overseas Development
- Sinopec offering drew final orders of over US$5.4 billion from across Asia, US and EMEA
- International demand for bank issuers also strong – Bank of China issues a six-tranche, four-currency deal with equivalent total of US$3.1 billion
- Asia Infrastructure Investment Bank Treasurer Soren Elbech said the Bank would likely make its debut on the bond markets this year