IFR 02.29.2020

42 International Financing Review February 29 2020

This tranche has AAA ratings from both

China Bond and China Chengxin.

A Rmb1.24bn unrated subordinated

tranche, scheduled to mature on September

26 2022 and with a weighted average life of

2.6 years, was retained by the originator.

4HEûlNALûPRICINGûOFûTHEûSENIORûTRANCHEûWASû

within the indicative range of 2.75%–3.75%

and 35bp lower than the previous deal in

November, backed by strong demand from

investors despite the coronavirus crisis, with

liquidity getting a boost from the latest

policy moves by the People’s Bank of China.

Lai said some consideration had been

given to postponing the deal due to the

outbreak, and the target pricing date was

delayed by a week to give investors more

time to look at the offering and go through

their internal processes. The outcome

showed that demand was still robust.

MARKET REMAINS LIQUID

“It took more time to get investors to engage

and give a response as some of them were

still working from home when we marketed

the deal,” he said. “But overall, the market

remains very strong and liquid. Investors are

looking for a safe haven to invest.”

He said investors were not overly concerned

that the epidemic would potentially lead to an

increase of delinquencies and defaults of the

underlying loans in the ABS, even though

ratings agencies have called for more details

on the portfolio, such as the proportion of

loans in Wuhan city and Hubei province, to

conduct more stress analysis.

SSAR

US DOLLARS

Feb 26 2020 CPPIB US$1 bn Mar 4 2025 1.25 99.513 MS+16 / T+16.35 1.351

Feb 27 2020 EIB US$1bn Mar 5 2024 Sofr+28 100 Sofr+28 -

EUROS

Feb 25 2020 ESM €2bn Mar 4 2030 0.01 102.297 MS-8 / B+28.7 -0.217

Feb 25 2020 Spain €5bn Oct 31 2050 1 98.154 MS+86 / B+108.4 1.071

Feb 27 2020 Thuringia €250m Mar 5 2040 0.25 99.495 MS+7 / B+51.6 0.276

Feb 27 2020 Unedic €1.25bn Mar 5 2030 0 100.894 OATs +14 /

~MS+5.7

-0.089

NON CORE

Feb 26 2020 EIB DKr400m Feb 28 2025 3mC+250 114.463 - -

Feb 26 2020 Queensland A$1.25bn Jul 20 2034 1.75 99.872 EFP+85 /

ACGB+64.9

1.76

Feb 27 2020 New South Wales A$1bn Mar 8 2033 2 105.097 EFP+70 /

ACGB+61.75

1.565

CORPORATES

EUROS

Feb 25 2020 Paccar €300m Mar 3 2023 0 100.361 MS+27 / B+57.3 -0.12

SWISS FRANCS

Feb 25 2020 Syngenta SFr200m Dec 9 2022 0.125 100.033 MS+90 /

Eidg+98.3

0.113

Feb 25 2020 Syngenta SFr140m Dec 9 2026 0.7 100.276 MS+130 /

Eidg+150.5

0.658

NON CORE

Feb 27 2020 Toyota Australia A$75m incr

(A$400m)

Feb 17 2023 1.3 100.21 ASW+65 1.293

Feb 25 2020 Castellum SKr250m Mar 6 2023 3mS+61 100 3mS+61 -

FINANCIALS

US DOLLARS

Feb 24 2020 ING Groep US$750m Perpetual (Nov 2029) 4.875 100 T+350.6 4.876

NON CORE

Feb 25 2020 NAB Capital Notes 4 AT1 A$1.95bn Perpetual (Sep 17 2027) 100 3M BBSW+295 -

Feb 26 2020 Resurs Bank SKr700m Feb 28 2023 3mS+128 100 3mS+128 -

COVERED BONDS

No deals in the

week

HIGH YIELD

No deals in the

week

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 28/2/2020

Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

6 IFR Bonds 2322 p 25 - 43 .indd 42 28 / 02 / 2020 19 : 15 : 33