BOCI FIXED INCOME WEEKLY UPDATE 中银国际定 …

1 boci FIXED INCOME WEEKLY UPDATE Page 1 of 9 Asian new issue market saw 11 new G3 currency bond being issued for a total supply of billion. The CNH bond market saw no new issuances. 11 G3 In the USD currency space : Out of China/Hong Kong / : China National Bluestar Group (Baa2/BBB/A-) as a first-tier core subsidiary of China National Chemical Corporation Limited ( ChemChina ) which is under central SASAC s direct governance, priced USD300 million perpetual non-call 3-year senior notes, reoffered at , yielding The notes are expected to be rated Baa2 by Moody s and BBB+ by Fitch.

2 (Baa2/BBB/A-) 3 3 Baa2 BBB+ Evergrande Real Estate Group (B1/B+/B+) came to market with tri-tranche senior notes offering for a total issue size of billion. The 2-year tranche was priced as USD565 million notes, reoffered at par, yielding The 4-year non-call 2-year tranche was priced as USD645 million notes, reoffered at par, yielding The 5-year non-call 3-year tranche was priced as USD590 million notes, reoffered at par, yielding The notes are expected to be rated B2 by Moody s, B by S&P and B+ by Fitch.

3 (B1/B+/B+) 18 2 4 2 5 3 B2 B B+ Agricultural Development Bank of China Hong Kong Branch (A1/NR/NR) came to the market with dual-tranche senior notes with total issue size of USD800 million. The 3-year FRN tranche was priced as 3mL+74bps USD500 million notes, reoffered at par. The 5-year FRN tranche was priced as 3mL+85bps USD300 million notes, reoffered at par.

4 The notes are expected to be rated A1 by Moody s . (A1/ / ) 8 3 3mL+74 5 100% 5 3mL+85 3 100% A1 China CITIC Bank International Limited (A3/NR/BBB) priced a USD500 million perpetual non-call 5-year Basel-III Compliant Non-Cumulative Subordinated Additional Tier 1 Capital Securities, reoffered at par, yielding at a spread of T+ The notes are expected to be rated Ba2 by Moody s. (A3/ /BBB) 5 5 III 100% T+ Ba2 RECENT NEW ISSUES COMMENTARY boci FIXED INCOME WEEKLY UPDATE Week Ending November 2, 2018 boci FIXED INCOME WEEKLY UPDATE Page 2 of 9 AVIC International Leasing (NR/NR/A-) priced USD350 million 3-year senior notes, reoffered at , yielding at a spread of T+175bps.

5 ( / /A-) 3 T+175 Taizhou Infrastructure Construction Investment Group (NR/NR/BBB-) priced USD300 million 3-year senior notes, reoffered at par, yielding ( / /BBB-) 3 3 Changchun Urban Development & Investment (Baa1/NR/BBB) priced USD400 million 3-year senior notes, reoffered at par, yielding (Baa1/ /BBB) 4 3 Shandong Guohui Investment (NR/NR/NR) priced USD600 million 363-day senior notes, reoffered at par, yielding ( / / ) 6 363 Out of Korea : Shinhan Bank (Aa3/A+/A) priced USD500 million 5-year senior notes, reofferd at yielding at a spred of T+105bps.

6 The issue is expected to be rated Aa3 by Moody s and A+ by S&P. (Aa3/A+/A) 5 5 T+105 Aa3 A+ Mirae Asset Daewoo (Baa2/NR/NR) priced USD300 million 3-year senior notes, reofferd at yielding at a spred of T+135bps. Mirae Asset Daewoo (Baa2/ / ) 3 3 T+135 Out of Indonesia : PT Pertamina (Baa2/BBB-/BBB) priced USD750 million 30-year senior notes, reoffered at , yielding PT Pertamina (Baa2/BBB-/BBB) 30 RECENT NEW ISSUES COMMENTARY boci FIXED INCOME WEEKLY UPDATE Page 3 of 9 SECONDARY MARKET UPDATE US Market.

7 Stocks recorded solid gains for the week, helping the market regain ground lost over a period of prolonged weakness and bringing most of the major indexes back into positive territory for the year to date. DJIA and S&P 500 changed from 24,443 and 2,641 on Monday to 25,271 and 2,723 on Friday respectively. : 500 24,443 2,641 25,271 2,723 US Treasuries: The strong jobs data helped push up longer-term bond yields. The US Treasury yield curve shifts up with 2-year notes yield closing at on Friday, up from Monday s , the 5-year notes yield closing at on Friday, up from Monday s , the 10-year notes yield closing at on Friday, up from Monday s 2 5.

8 921% 10 In Asia credit, ITRAXX Asia Ex-Japan IG opened the week at 91/93bps on Monday and tightened 3/4bps to 88/89bps on Friday. ITRAXX 91/93 3/4 88/89 The IG space ended mixed: IG Bonds Tenor (year) ( ) Coupon Spread (Bid/Ask) Monday ( / ) Spread (Bid/Ask) Friday ( / ) Diff bps CHGRID 2022 (A1/AA-) 5 85/79 84/78 -1/-1 CHGRID 2027 (A1/AA-) 10 122/118 119/115 -3/-3 CHCONS 2022 (A2/A) 5 112/106 113/106 +1/0 CHCONS 2027 (A2/A) 10 161/154 161/154 0/0 CITLTD 2023 (A3/BBB+) 5 144/138 144/138 0/0 CITLTD 2028 (A3/BBB+) 10 185/178 185/178 0/0 COSL 2025 (Baa1/BBB)

9 5 171/164 172/165 +1/+1 HAOHUA 2022 (NR/BBB) 5 154/148 153/147 -1/-1 HAOHUA 2027 (NR/BBB) 10 202/197 200/194 -2/-3 Source: Bloomberg boci FIXED INCOME WEEKLY UPDATE Page 4 of 9 The HY price ended lowered: HY Bonds Tenor (year) ( ) Coupon Price (Bid/Ask) Monday ( / ) Price (Bid/Ask) Friday ( / ) Diff AGILE 2022 (B1/NR) 5 AGILE 2020 (B1/B+) 5 COGARD 2023 (Ba1/NR) 5 COGARD 2025 (Ba1/NR) 7 + + FTLNHD 2022 (Ba3/NR) 5 SHIMAO 2022 (BB/NR) 5 SHIMAO 2022 (Ba3/BB) 10 SUNAC 2022 (B3/B) 5 Source.

10 Bloomberg boci FIXED INCOME WEEKLY UPDATE Page 5 of 9 Source: Bloomberg G3 CURRENCIES RECENT NEW ISSUES ASIA (Ex. Japan) G3 Issuer Issuer Ticker Issue Ratings (Moody s/ S&P/Fitch) CCY Size (M) Pricing Date Maturity Coupon (%) Spread/ Yield / Changchun Urban CCUDIH Corp Baa1/NR/NR USD 400 01-Nov-18 08-Nov-21 China National Bluestar Group CNBG Corp Baa2/NR/BBB+ USD 300 31-Oct-18 Perpetual NC3 Agricultural Development Bank of China Hong Kong Branch AGRBK Corp A1/NR/NR USD 500 31-Oct-18 7-Nov-21 3mL+74bps 3mL+74bps 300 7-Nov-23 3mL+85bps 3mL+85bps Mirae Asset Daewoo DAESEC Corp Baa2/NR/NR USD 300 31-Oct-18 7-Nov-21 T3+135bps PT Pertamina PERTIJ Corp Baa2 /BBB- /BBB USD 750 31-Oct-18