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Asia ex-Japan G3 bond issue pipeline

Sept 2 (Reuters) - South Korea’s Daewoo International, a subsidiary of steelmaker Posco, yesterday (August 31) launched a USD200m three-year private-placement shogun bond. Samsung Securities is the sole lead arranger.

Shogun bonds are international bonds denominated in foreign currencies, as opposed to Samurai bonds, which are denominated in Japanese yen.

The terms, such as the coupon, of the deal are undisclosed. There is talk that the bonds have been placed with Japanese investors.

The PRC Ministry of Finance’s CNY5bn (USD775m) retail tranche of its CNY20bn renminbi-denominated and -settled bond in Hong Kong has attracted orders amounting to CNY20.176bn, representing coverage of four times.

The response has been far better than for the MoF’s December offering of CNY3bn, which saw demand of CNY7.11bn from over 25,000 applications.

Over 84,000 applications have been received for the latest retail offering, which features a two-year tenor and pays a coupon of 1.60%.

Agricultural Bank of China Hong Kong branch, Bank of China (Hong Kong), Bank of Communications Hong Kong branch, China Construction Bank Asia, HSBC, Industrial and Commercial Bank of China (Asia) and Standard Chartered are the joint leads and bookrunners. Bank of Communications Hong Kong Branch is again an issuance and depository agent. Settlement is on September 6.

Hainan Airlines’ wholly owned subsidiary Hainan Airlines (Hong Kong) has released guidance in the 6% area for its three-year renminbi-denominated and -settled bond.

Deutsche Bank and JP Morgan are the leads on the Reg S Dim Sum bond, which carries a guarantee from the parent and is this week?s business. The borrower met with investors in Hong Kong and Singapore on a two-day roadshow in mid-August.

Sumitomo Mitsui Finance and Leasing has released guidance for its Reg S Dim Sum bonds of CNY500m (USD77.5m). Indications have been heard at 2.5% for the 24-month tranche and 3.0% for the 36-month tranche. Goldman Sachs is the bookrunner and SMBC Nikko Securities (Hong Kong) is the co-lead. Pricing is likely to be this week.

Three tranches - CNY200m 24 months, CNY100m 30 months and CNY200m 36 months - have been proposed.

Hong Kong- and Shanghai-listed Aluminum Corp of China plans borrowings of up to CNY9bn (USD1.4bn) from public and private MTNs in the onshore market.

It is slated to price five-year non-put three public MTNs of CNY5bn on September 8. China Development Bank will lead the deal, which settles on September 9. Chengxin has assigned AAA ratings to the deal, which will use up its public MTN issuance quota with the NAFMII.

Chalco is also working on a private placement of MTNs of CNY4bn via Agricultural Bank of China and Bank of Communications. Tenors of three or five years are likely. Launch is expected in late September at the earliest.

In the offshore market, Chalco plans to raise USD1.2bn from US dollar bonds to fund its overseas expansion. Tenors of up to 10 years have been proposed. The proposal is subject to shareholders? approval at an EGM, the date for which has yet to be determined.

For a graphic on the issuance volume of dollar-, euro- and yen-denominated bonds from non-Japan Asia click on link.reuters.com/kux97r

For a table showing the pipeline of dollar-,yen- and euro-denominated issues from Asia please click here www.ifrmarkets.com

jonathan.rogers@thomsonreuters.com

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