China Zhengtong Auto and PTTEP wade into bond market

Chinese issue is first from the auto sector in the country, while PTTEP move benefits from the dearth of issuance out of Thailand.
For Bank of China, offering a letter of support requires less capital to be set aside compared to lending to the company.
For Bank of China, offering a letter of support requires less capital to be set aside compared to lending to the company.

The Asia dollar bond drought has officially ended. On Monday, China Zhengtong Auto and PTT Exploration Production both waded into the dollar bond market and, on Tuesday, the Republic of Indonesia and KDB both started marketing dollar bonds. 

“We are seeing issuers return and the new issue premium seems to be returning to markets, so there is some demand provided issuers pay up,” said one Singapore-based fund manager on Monday.

China Zhengtong Auto offered a new issue premium over its peers. The company had attempted to tap the market last year and had gone out with guidance of about 11%. It returned this time with a...

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