20250430-招银国际-Fixed_Income_Daily_Market_Update_7页_933kb

Fixed Income Credit Commentary - 30 Apr 2025

Market Overview
Morning bond movements showed: KOBCOP462530 tightened 12bps from RO, STESP42530 widened 2bps. New PKX30s/35swidened 5-7bps. KBANKs/BBLTBs widened 4-8bps due to Moody's revised negative outlook on Thailand. BABA31-35swidened 3-5bps, MYLIFE/NIPLIF55s remained unchanged.

NWDEVL Analysis
New 3-year refinancing facilities of HKD634bn (7 tranches, HIBOR+105-130bps) secured by NWD, with BOC and HSBC as lead banks. Additional HKD156bn (cUSD2bn) loan for project developments and refinancing outstanding bonds. The refinancing of HKD582bn unsecured loans will alleviate refinancing pressure and enhance liquidity. NWD pledged K11 Musea as second-lien security and CTF Enterprises provided support. Cash yield for NWDEVL bonds increased, with 51/4 PERP (12.5%), 615 PERP (7.8%), and 41/8 PERP (10.9%) highlighted.

SJM HOL Development
SJM's Q125 revenue rose 8.1% YoY to HKD7.48bn, driven by inbound tourism recovery and GLP's operations. GLP's property visits hit 30k/day, up 8% QoQ. Adjusted EBITDA grew 10.9% YoY to HKD958mn. Net debt/adjusted EBITDA fell to 5.9x (from 6.3x in Dec24), targeting below 5.0x in 1.5-2 years. SJM plans to install smart gaming tables in GLP and Oceanus by end-2025, with upgrades to dining outlets and event spaces expected to boost GLP/ GL traffic in H225.

Key Market Events

• New Issues: Korea's Ocean Business issued a 5yr bond at T+92.5, 4.625% coupon (Aa2 rating); ST Engineering (Singapore) raised 750mn USD for 5yr bonds at 4.25% (AAA rating).
• Pipeline: Sihai International seeks 3yr USD530mn loan at 5.3%.
• Performance: Vanke's Q125 revenue dropped 38% YoY to RMB38bn (cUSD5.2bn) but secured a 36-month RMB33bn loan at 1yr LPR-76bps (2.34%). CNOOC/SINOPE's 505-2995 bonds traded 05-10pts higher.
• Maturity: BNKEA will call USD600mn in 405/29/30 bonds on 29 May25.
• Gaming Sector: SJMHOL (6.7-7.4% YTM) and STCITY/STDCTY (6.0-8.4%) are preferred. MGMCHIs and WYNMAC’27 show yield pickup opportunities.

Macro News
S&P 500 rose 0.58%, Dow 0.75%, Nasdaq 0.55%. US Apr25 Consumer Confidence at 860 (vs. expected 877). March 25 JOLTS job openings at 7.192mn (vs. expected 7.49mn). US Treasury yields retreated; 2/5/10/30 yields at 3.65%/3.77%/4.16%/4.64%.

News Highlights

• Indonesia likely to halt natural gas exports to Singapore by 2028 due to domestic shortages.
• Adani Green confirmed no irregularities in US indictment review.
• Vanke plans to sell 73mn A-shares for liquidity.
• Sihai International and Wuxi Hengting seek USD530mn investment in Indonesia.

Disclosures

• Author certification ensures independence; no compensation tied to report content.
• Report not liable for losses from reliance on information; past performance does not guarantee future results.
• Distribute only to authorized clients; restricted to "major US institutional investors" for US recipients.
• Singapore recipients must contact CMBISG for further details.

Summary
The report covers bond price changes, refinancing updates, and sector analysis. NWDEVL's new loans eased refinancing pressure, while SJM's growth metrics improved. Asian new issues include Korean and Singaporean bonds, with Vanke's liquidity measures noted. Macroeconomic data shows mixed performance. Key focus areas: refinancing dynamics, gaming sector opportunities, and market-specific events. Disclaimer emphasizes non-liability and restricted distribution.