Asian G3 bond issuance catches light

Chinese toll road operator and Korean utility take advantage of strong credit markets to complete aggressively priced bonds.

Shenzhen Expressway, a Chinese toll road operator, and Korean natural gas company Korea Gas Kogas, pushed out aggressively priced bonds on Monday, taking advantage of buoyant credit conditions.

Sales desks reported secondary market spread tightening of about 6bp across most investment grade credits on Monday, although Morgan Stanley noted that much of the re-pricing came from brokers and was drawing out profit takers rather than new buyers.

But the favourable market backdrop enabled the two new credits entering the primary market to attract strong order books.

Shenzhen Expressway built up a peak order book of $3.5 billion and Kogas an even more impressive...

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