Country Garden approaching its default has limited impact on the market
On Tuesday (10/17), the 10-year US Treasury bond continued its overnight trend, rising to around 4.75% during the Asian session. The overall Asia bond market remained relatively stable, despite Country Garden facing its first default on the offshore bonds. In the primary market, Korea’s Hana Bank issued a new five-year US dollar bond. In the secondary market, Asia IG bonds narrowed by about 1-3bps, mainly due to real money investors’ buying. Among them, Japan IG bonds narrowed mostly by about 2-3bps, and Korea Development Bank’s fixed-rate new bonds narrowed further from the spread at issuance, all performing relatively better.
Important news
Country Garden had a coupon payment on a US dollar bond that was due on September 17, with a 30-day grace period expiring on October 17. If the company fails to pay its creditors about US$15.4 million in interest before the grace period ends, all its offshore bonds will be deemed in default. Country Garden announced on the Hong Kong Stock Exchange in early October that it expected to be unable to repay all its offshore debts on time and had commissioned consultants to review its capital structure and liquidity situation, in order to formulate a holistic solution.
Primary market
Hana Bank issued an USD-denominated senior unsecured bond
• Credit Rating：Moody’s Aa3 Stable / S&P A+ Stable / Fitch A Stable
• Tenor：5 year
• Initial Price Guidance：CT5 + 125bps area
Secondary market
• KDB 5.375% 2026 bonds traded near 5.43%
• KDB 5.375% 2028 bonds traded near 5.46%
• KDB 5.625% 2033 bonds traded near 5.67%
碧桂園違約疑慮對市場衝擊有限
週二（10/17）十年期美債於亞洲時段延續前一晚的趨勢，繼續走高至約4.75%附近，加上碧桂園面臨美元債券違約的疑慮，整體亞洲債市仍保持相對平穩。初級市場有韓亞銀行發行一筆五年期美元計價新券。次級市場方面，主因有實質資金投資人買盤，亞洲投資等級標的多收窄約1-3bps，其中日本投資等級標的多收窄約2-3bps，韓國產業銀行的固定利率新券較發行時的利差再收窄，表現皆相對較佳。
重要新聞
碧桂園有一筆於９月17日應支付之美元計價債券票息，其30日寬限期將於10月17日到期，若未能在寬限期前向債權人支付約1540萬美元之票息，將使其離岸債券全部被視作違約。碧桂園已於10月上旬在港交所公告指出，預期將無法及時履行所有境外債務的償付義務，並已委託顧問，審查其資本結構和流動性狀況，制定整體解決方案。
初級市場新券發行
韓亞銀行發行一筆美元計價主順位債券
• 信評：Moody’s Aa3 Stable / S&P A+ Stable / Fitch A Stable
• 天期：五年期
• 初始價格指引：約CT5 + 125bps附近
次級市場交易
• 韓國產業銀行（KDB）5.375% 2026年券收益率約5.43%
• 韓國產業銀行（KDB）5.375% 2028年券收益率約5.46%
• 韓國產業銀行（KDB）5.625% 2033年券收益率約5.67%