> **来源：[研报客](https://pc.yanbaoke.cn)** # CMBI Credit Commentary Summary ## Core Content Overview This document provides a comprehensive summary of the fixed income market update and credit commentary for the **The Asset G3 Bond Benchmark Review 2026**, focusing on key market movements, issuer performance, and macroeconomic developments. It also includes analyst insights on specific issuers, such as **UPLLIN**, and details on recent offshore bond issues and market activity. ## Key Market Movements - **BCHINA Float 05/28/31**: Widened by 2bps from RO at SOFR+38. - **Asian IG space**: Overall tightened by 1-3bps, led by **NIPLIF**, **LGENSO**, and **HYNMTR**. - **Asian AT1s**: Edged 0.3-0.5pt higher due to better buying and short covering. - **SOFTBK curve**: Rose by 0.5-1.0pt, influenced by reports that **SoftBank-backed OpenAI** plans to file for an IPO soon. - **Indonesian government**: Centralizing exports of strategic commodities to increase state revenue and control over natural resources. **INDYIJ 29** and **MEDCIJ 28-30s** were 0.2-0.5pt higher this morning. - **VNKRLE 27' and 29'**: Dropped 1.1-1.6pts, due to Vanke's asset pledge list for unsecured offshore loans. - **FUTLAN 28**, **FTLNHD 27-29**, **LNGFOR 27-32**: Unchanged to 0.2pt lower. - **WESCHI 28-29**: Leaked another 0.9-1.3pts. - **EHICAR 27-29**: Weaker by 0.8-1.4pts. - **MTRC Perps**: Lost 0.2-0.3pt. - **CNOOC 3.3 09/30/49** and **CNOOC 7 1/2 07/30/39**: Gained 1.0pt. - **ReNew Energy complex**: Unchanged to 0.1pt lower. - **PTTGC Perps**: Leaked 0.1-0.2pt. - **GLPSPs**: Unchanged to 0.3pt higher. - **RAKUTNs**: Closed 0.1-0.2pt lower. - **RESLIF 6.875 Perp/NOMURA 7 Perp**: Lowered by 0.2pt. - **Japanese and European AT1s**: Closed 0.2-0.3pt lower, except **LLOYDS 6 5/8 Perp**, which edged 1.0pt higher. - **LGFV space**: AMs and HFs sold higher-beta and USD issues. ## UPLLIN Credit Profile - **UPLLIN**: Earnings recovery in FY26 and proactive liability management support its credit profile. - **FY26 results**: Revenue increased by 11% yoy to **INR518.4bn**, driven by volume growth and favorable FX impact, partially offset by pricing headwinds. - **Contribution profit**: Grew by 17% yoy to **INR213.4bn**, with a margin expansion to **41.2%**. - **EBITDA**: Increased by 18% yoy to **INR95.9bn**, with a margin improvement to **18.5%**. - **Operating cash flow**: Declined by 23% yoy to **INR78.6bn**, due to longer receivables days and higher inventory build-up. - **Cash and bank balances**: Fell by 36% yoy to **INR60.9bn** due to weaker operating cash flow and higher capex. - **Debt reduction**: Total debt and net debt decreased by **USD850mn** and **USD400mn**, respectively. - **Net debt/EBITDA**: Improved to **1.8x** from **2.3x**, with a target of **1.2-1.5x** over the medium term. - **Rating outlook**: All three rating agencies revised the outlook for UPL to **stable** from **negative**. ## Offshore Asia New Issues ### Priced Issues: - **Alinma Bank**: Issued **USD500mn** PerpNC5.5 at **6.625%** coupon, unrated. - **Bank of China Limited Sydney Branch**: Issued **USD500mn** 5-year bond at **SOFR+38**, rated **A1/A/A**. - **Huzhou City Investment Development**: Issued **USD295mn** 3-year bond at **4.45%** coupon, rated **-/-/BBB**. ### Pipeline: - No offshore Asia new issues pipeline was reported for the day. ## News and Market Color - **Onshore primary issuances**: 106 credit bonds issued yesterday for **RMB101bn**, with **RMB843bn** raised this month, showing a **3.6% yoy decrease**. - **Fitch**: Withdrew **Chongqing Nan'an Urban Construction & Development's BBB rating** due to insufficient information. - **CSI Properties**: Tapped **USD50mn** in **CSIPRO 10.5 05/21/28** to refinance or repay debts. - **Fitch upgraded MIND ID**: To **BBB** from **BBB-** with a negative outlook, aligning with Indonesia's sovereign rating. - **Sammaan Capital**: Interest income fell 22.2% yoy to **INR55.9bn**. - **Indika Energy**: 1Q26 revenue increased by **0.7% yoy** to **USD493.2mn**. - **Meituan**: Faces a lawsuit from Brazilian rival over corporate espionage allegations. - **Petron**: Plans to redeem **series 3B preferred shares** on **25 Jun'26**. - **Rakuten Group**: Expected to achieve **JPY33bn** ordinary profit in **FY28** from fintech business reorganization. - **Vanke**: Provided lenders with a list of **RMB39.4bn** assets for unsecured offshore loans. - **SoftBank**: USD40bn bridge facilities at **SOFR+250bps**, with **OpenAI** planning an IPO soon. ## Author Certification - The author certifies that the views expressed accurately reflect personal opinions and are not influenced by compensation. - No trading or dealing in the covered stocks within 30 days prior to the report. - No financial interests in the companies covered. - No conflicts of interest that could affect the objectivity of the report. ## Important Disclosures - **Investment Risks**: Transactions in securities involve risks, and past performance does not guarantee future results. - **No Investment Advice**: This report is for informational purposes only and does not provide tailored advice. - **Disclaimer**: CMBIGM is not liable for any losses or damages arising from reliance on the report. - **Legal Restrictions**: The report is intended solely for the use of the intended recipients and may not be reproduced or distributed without consent. - **Jurisdictional Restrictions**: - **UK**: Only for persons under Article 19(5) or Article 49(2) of the Financial Promotion Order. - **US**: Intended for "major US institutional investors" only, and must be used through a U.S.-registered broker-dealer. - **Singapore**: Distributed by **CMBISG**, an Exempt Financial Adviser, and may be subject to legal responsibility only to the extent required by law. ## Contact Information - **Fixed Income Department**: Tel: 852 3657 6235 / 852 3900 0801 Email: fis@cmbi.com.hk - **Analysts**: - **Glenn Ko, CFA**: (852) 3657 6235 | glennko@cmbi.com.hk - **Cyrena Ng, CPA**: (852) 3900 0801 | cyrenang@cmbi.com.hk - **Yujing Zhang**: (852) 3900 0830 | zhangyujing@cmbi.com.hk