HONG KONG, Jan 8 (IFR) - Asian credit markets were buzzing
with activity across the credit spectrum, with the two new
investment grade issues performing well in the secondary market.
Sun Hung Kai Properties' bonds rallied in the secondary
market, despite a tight pricing, in a show that investors had
shrugged off an ongoing legal action against the company's
founders and the impact on its operations. The bonds traded
tighter to around T+175-T+173bp after pricing at T+180bp
Export-Import Bank of India's 2022 bonds rallied as well,
pulling up other Indian credits along the way. The new Exim 2023
bonds narrowed to T+217bp/T+213bp after pricing at T+220bp.
Exim Bank's own 2017s, used as a comp for the trade, also
gained in the wake of the strong demand. These bonds were
trading at T+230bp before the new deal was announced yesterday
morning, but they tightened to T+225bp after the announcement
and rode on the new bonds to T+215bp this morning.
The strong demand for India Exim also tightened other
credits from the sub-continent. ICICI Bank 2018s were 10bp
tighter at T+265bp, SBI 2017s were about 3bps tighter at
T+240bp, and NTPC 2022s were 5bp tighter at T+220bp.
However, Agile's 2017s weakened 0.25 points at 107/108 after
the company announced that the Hong Kong police formally charged
its chairman Chen Zhuo Lin on 8 January 2013, with two counts of
Bonds from another Chinese borrower, Zoomlion, weakened on
reports from a local newspaper that an anonymous letter was sent
to the Hong Kong Securities and Futures Commission indicating
that Zoomlion's sales have been inflated.
Zoomlion's due 2022 bonds dropped 2-3 points to 99-99.25.
The iTraxx IG index was quoted around 104bp.