20260625-招银国际-Fixed_Income_Daily_Market_Update_6页_927kb

CMBI Credit Commentary Summary

Core Content Overview

This document provides a detailed summary of the fixed income market updates and analyst comments from CMBI Fixed Income Department, covering new bond issues, pricing movements, macroeconomic developments, and market color for the day. It also includes information on the latest offshore Asia new issues and relevant disclosures.

Market Updates

Fixed Income Daily Market Update

• NTT FRNs: New NTT 28-31 FRNs showed little change in spreads from ROs, with fixed-rate NTT 28-38s trading unchanged to 2bps wider.
• New Issues:
  • NOMURA 31/HDFCB 31/POINTL 31 and TENCNT 36/46 widened by 2-3bps.
  • SNE 31-36 widened by 1-2bps.
• Perps and AT1s: Marked 0.3pt higher.
• DBMMN: Development Bank of Mongolia proposes to issue a 5yr USD bond to fund a tender offer for DBMMN 28. The FV of the new DBMMN 31 is estimated at low-to-mid 7% vs IPT at 7.6%.

Trading Desk Comments

• NOMURA Float 29-31: Tightened 2-7bps from ROs.
• AXSBIN 6.875 Perp: Closed 0.4pt higher from RO at par.
• Existing AT1s: Edged 0.1pt higher with small better buying from AMs.
• Insurance Subs: Largely unchanged with two-way flows skewed to small better buying among RMs.
• SNE 31-36: Widened 2-3bps from RO at T+40 and T+60, with tight pricing noted.
• SKONKRs and POINTL: Traded 2-3bps tighter.
• HYUELE: Existing front-end papers held unchanged, while belly and long-end bonds widened 1-3bps.
• TENCNT 36/46: Tightened 1-2bps amidst mixed flows.
• Greater China High-Yield Issues:
  • EHICAR 29 lost 0.6pt.
  • EHICAR 26-27 gained 0.5-1.0pt.
  • NWDEVL/VDNWDL complexes: Up to 1.0pt firmer.
  • Chinese Properties:
    • LNGFOR 28-32: Traded 0.1-0.3pt higher.
    • VNKRLE 27-29/FUTLAN 28/FTLNHD 27-29: Closed 0.3pt lower to 0.1pt higher.
  • LGFV Space: AMs and PBs sold lower-yielding USD IG issues, while higher-yielding names showed balanced two-way flows across USD and CNH issues.
• CNH Space: Overall well bid, with new CNH SIASP 31 trading 0.8pt higher from RO at par due to PB buying.

Key Market Movers

Macro News Recap

• S&P 500: -0.10%
• Dow Jones: +0.35%
• Nasdaq: -0.43%
• US May 2026 New Home Sales: 580k, below market expectation of 638k.
• US Crude Oil Inventories: Declined 6.088mn to 412.1mn barrels, below market expectation of -3.9mn.
• UST Yields: Lower on Wednesday, with 2yr at 4.11%, 5yr at 4.17%, 10yr at 4.41%, and 30yr at 4.86%.

Desk Analyst Comments

VEDLN (Vedanta Resources)

• New Bond Issuance: Vedanta Resources (VRL) proposes to issue USD 144A/Reg S bonds (Ba3/BB-/BB) in three tranches (6-, 8-, and 11yr) to fund tender offers for '30-33s.
• FV Estimation:
  • VEDLN 32: Low-7% (vs. IPT 7.25%)
  • VEDLN 34: Mid-7% (vs. IPT 7.625%)
  • VEDLN 37: ~8% (IPT at 8.0%)
• Amortizing Structure: Key differentiator, with effective tenors of ~5.25yrs, ~7.1yrs, and ~9.75yrs.
• Credit Implications: The amortizing structure supports a smoother deleveraging path. The new bonds are guaranteed by VRL, Twin Star Holdings, Welter Trading, and Vedanta Holdings Mauritius II.
• Covenants: FCCR ≥ 2.25x (until 31 March 2027), then ≥ 2.50x. Debt cap excluding inter-company loans is US$5.6bn. Restricted payments capped at 50% of net income, increasing to 100% if FCCR ≥ 3.5x.
• Optional Redemption: Up to 10% of outstanding amount per bond per year at 103.
• Ranking and Security: Bonds rank pari passu and are secured by first-ranking charge over receivables and rights under Brand Fee Agreements and the Receivables Account.

Offshore Asia New Issues (Priced)

Offshore Asia New Issues (Pipeline)

News and Market Color

• Onshore Primary Issuances: 196 credit bonds issued with RMB168bn, representing a 18.9% yoy increase month-to-date.
• [FAEACO]: Far East Consortium International delayed circular on UK office, hotel, town hall disposal.
• [HUANEN]: Moody's upgraded China Huaneng to A1 from A2, reflecting its strategic importance; outlook stable.
• [HYUELE]: SK Hynix plans to raise KRW45.5tn (~USD29.4bn) via Nasdaq depositary receipts, starting on 10 Jul'26. Plans to build NAND flash memory plant in South Korea.
• [NICAU]: Nickel Industries to buy minority stake in two HPAL projects in Central Sulawesi.
• [RAKUTN]: Rakuten seeks JPY150bn (~USD927.7mn) Japanese subsidy for satellite network.
• [SOFTBK]: SoftBank seeks to acquire Japanese utility Tepco to support AI data centers.
• [VEDLN]: Vedanta Ltd listed four demerged companies (Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Iron & Steel, Vedanta Power) on BSE and NSE.

Important Disclosures

• CMBIGM or its affiliates have investment banking relationships with the issuers in the report.
• The author certifies that all views reflect personal opinions and are not influenced by compensation.
• No trading or dealing in the stocks covered in the past 30 days, and no plans to do so in the next 3 business days.
• The report is for information only and does not constitute an offer or solicitation to buy or sell securities.
• CMBIGM is not liable for any losses or damages arising from reliance on the report.
• The report may be distributed only to certain investors as per legal requirements in the UK, US, and Singapore.

Disclaimer

• UK: Report is only for persons falling within Article 19(5) or Article 49(2) of the Financial Services and Markets Act 2000.
• US: CMBIGM is not a registered broker-dealer. Report is for "major US institutional investors" only.
• Singapore: Distributed by CMBISG, an exempt financial adviser. Legal responsibility is limited to law requirements.