Mainland firms top dollar debt market
Updated: 2013-01-25 06:44
By Bloomberg(HK Edition)
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Cosco Pacific Ltd, Future Land Development Holdings Ltd and Mingfa Group International Co are marketing dollar-denominated debt as mainland companies dominate regional issuance in the US currency.
Cosco Pacific, the Hong Kong-listed container terminal operator, is offering 10-year notes to yield about 285 basis points more than Treasuries, according to a person familiar with the matter who asked not to be identified because the terms aren't set. Future Land, the Shanghai-based developer active in the Yangtze River delta, plans to sell five-year notes as does Mingfa, a real estate company that focuses on shopping malls, a separate person said.
Mainland issuers have sold 58 percent of the $2.95 billion of bonds offered by issuers from the Asia-Pacific region this week, according to data compiled by Bloomberg. Yields on Asian notes fell 1.4 basis points to 4.08 percent on Wednesday, 14 basis points more than a record low of 3.94 percent reached at the end of November, according to JPMorgan Chase & Co indexes.
"The pace of issuance will remain solid for the next two weeks, but then quieten down a bit heading into Chinese New Year," said Mark Reade, a Hong Kong-based credit desk analyst at Credit Agricole SA. The city's markets are closed for the holidays from Feb 11 to Feb 13 while markets in China are shut the five business days that week.
Future Land plans to sell its debut notes at about 10.25 percent, a person familiar with the matter said. Mingfa will pay about 13.25 percent, another person with knowledge of that sale said.
Fosun International Ltd, based in Shanghai, was the only company in Asia to sell dollar notes yesterday, raising $400 million through seven-year 6.875 percent securities, according to data compiled by Bloomberg. The bonds, which priced at par, rose as high as 100.4 cents on the dollar as of 9:45 am in Hong Kong, prices quoted by BNP Paribas SA show.
DBA Telecommunication (Asia) Holdings Ltd remains in the market with a five-year bond it is offering to investors at a yield of about 12 percent, a person familiar with that matter said on Thursday.
Cosco Pacific, selling its notes through unit Cosco Pacific Finance Company Ltd, last issued dollar securities in September 2003 when it raised $300 million selling 5.875 percent notes due October, Bloomberg data show.
(HK Edition 01/25/2013 page2)