HONG KONG, Sept 22 (IFR) - Asia credit markets saw active trading activities on Friday, when Postal Savings Bank of China made a debut with the region’s largest bank capital offering.
PSBC’s US$7.25bn Additional Tier 1 notes were bid at 99.0/99.3 early Friday morning and rebounded to 99.6/99.7, after being priced at par yesterday to yield 4.5%.
The Chinese lender did not use up its quota of up to Rmb50bn (US$7.6bn) US dollar-equivalent.
A Hong Kong-based credit trader said the smaller-than-targeted issue size and inflated orders meant some investors were allocated more than they wanted, which prompted them to sell the notes in the secondary market.
Meanwhile, China investment-grade names were spotted 1bp wider after S&P cut the sovereign rating to A+ from AA- yesterday. China five-year sovereign CDS widened about 1bp to 58/59.
The iTraxx Asia IG index was 0.1bp tighter at 71/72. Beijing Infrastructure Investment’s new 2022s traded up, bid at 99.9 in cash price.
Chinese developer Country Garden’s 4.75% 2022s were firmer at 102.08 after Fitch yesterday upgraded its rating on the company to BBB- from BB+.
Kaisa Group’s 7.25%2020s, 8.5%2022s and 9.375% 2024s gained 0.2-0.4 point after the developer tapped the three notes for a further US$805m in total principal amount.
Reporting by Ina Zhou; Editing by Dharsan Singh