While the US economy begins to open up and states loosen restrictions, the situation is quite the opposite in Asia as Covid-19 infection rates pick up and countries beginning to tighten restrictions again. Despite this, Asia G3 primary market started off the month of May strong with deal volume at US$4.235bn (+19.6% WoW). Average Initial Price Guidance Tightening rose 6.2bps to 38.9bps. The 10yr US Treasury yield retreated to 1.57%. Last week, US$4.235bn of bonds was issued from 10 deals. Breakdown: Investment Grade: US$2.45bn, High Yield: US$785mn. Non-Rated: US$1bn.
Singapore Press Holdings announced a plan to carve out its media business into a not-for-profit entity. Subject to shareholders’ approval, the media business will be transferred to a company limited by guarantee. SPH will make an upfront capitalisation of S$110mn to the new entity, in the form of a cash injection of S$80mn, and S$30mn worth of SPH shares and SPH Reit units. The bond desk saw buyers picking up SPH perpetual bonds following the announcement.
ESR-REIT is looking to raise about S$150mn via a private placement and preferential offering to fund its S$119.2mn acquisition of a Tanjong Penjuru logistics facility, as well as asset enhancement initiatives for properties in Tai Seng and Ang Mo Kio. ESR-REIT has also obtained a S$68.5mn unsecured loan to finance the acquisition of a 10% interest in a GIC-majority-owned Australian logistics investment for A$60.5mn (S$62.4mn).
4 outstanding mandates remain from the last two weeks
