The G3 bond market in Asia witnessed some of the busiest issuance activity in January in over two decades, posting the largest volume in the first three weeks of the month.

Figures supplied by Thomson Reuters show that there were 27 transactions priced in Asia-Pacific, outside of Australia and Japan, as of January 20 2017, raising a total of US$24.03 billion, exceeding the previous record of US$18.89 billion from 26 deals in the same period in 2014.

The biggest ever issuance for the whole month of January during the past eight years was recorded in 2013 when a total of 59 deals were priced with a total volume of US$24.90 billion.

The biggest deal in 2017 so far was printed by China Development Bank, when it priced on January 17 a dual-currency, multi-tranche offering totalling over US$4 billion equivalent. The policy bank tapped the euro bond market in two tranches for a total of 1.90 billion euro, and in the process extended its yield curve with a new seven-year offering.

The bank also tapped the US dollar bond market with a three-tranche issue totalling US$2 billion, including its first ever 20-year offering amounting to US$500 million. Incidentally, the seven-year euro and the 20-year US dollar are the longest tenor ever by any Chinese policy bank in the respective bond market.

Another significant deal in January was the US$2.6 billion issue in two tranches by China Huarong International Holdings, comprising of US$1.1 billion senior unsecured bond for three years and US$1.5 billion perpetual non-call five securities.

Both the senior unsecured bond and perpetual securities, issued through Huarong Finance 2017 Company, will be guaranteed by Huarong International and supported by a keepwell deed and a deed of equity interest purchase, an investment and liquidity support undertaking between Huarong Finance, Huarong International, Huarong Asset Management Company and the medium term note programme trustee.

Meanwhile, the Republic of Korea kick-started the G3 bond issuance among the sovereign in Asia, with a tightly priced US$1 billion global offering on January 12, and achieved its lowest coupon and spread ever.

It was followed on January 19 by the Republic of the Philippines which printed its first offshore bond under the new administration of President Rodrigo Duterte and simultaneously conducted its trademark liability management exercise.

Genting Group returned to the US dollar bond market for the first time since 2004 when it priced a US$1 billion issue for 10 years on January 17. The deal, which will also have the benefit of a keepwell deed, garnered an order book in excess of US$2.8 billion from 200 accounts.
Among the issuers from India are the State Bank India and Adani Ports and Special Economic Zone Limited, which both priced a US$500 million bond for five years.

In line with its strategy to diversify its funding sources and investor base, Singapore lender DBS tapped the covered bond market for the third time this January, tapping the euro bond market this time for a 750 million euro. It previously accessed the US dollar and the Australian dollar in its first two forays in the covered bond space.