ASIA CREDIT CLOSE: New issues shine, while Zoomlion, Agile weaken

Last Updated: Tue, Jan 08, 2013 09:40 hrs

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 yesterday.

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 indecent assault.

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.

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