Asia Pacific Bond Issuance Reaches Record Volume, says Thomson Reuters Review

SINGAPORE, June 29 (Bernama) -- Total proceeds from bond offerings by Asia Pacific issuers started strong this year with a 4.1 per cent increase from the first half of 2011 to US$356.3 billion. This is the highest semi-annual volume on record, despite the 19.0 per cent decline in new issues to 1,425 from 1,760. According to Thomson Reuters Asia Pacific (excluding Japan) Debt Capital Markets Preliminary Financial Advisory Review, Chinese borrowers accounted for 27.8 per cent of the region’s primary issuance with US$98.9 billion, down 12.0 per cent from the first half of 2011, and bringing North Asia’s bond offerings to US$193.8 billion (down 1.9 per cent) thus far. The report said notably, Southeast Asian borrowings grew significantly to reach US$57.6 billion, up 26.3 per cent from the first six months last year, driven by a significant increase in issuance from Singapore with US$14.4 billion (up 68.2 per cent), Indonesia (US$10.8 billion, up 95.5 per cent) and Thailand (US$6.5 billion, up 56.4 per cent). Asia Pacific corporate borrowers raised US$316.2 billion in proceeds, the highest semi-annual start on record, up 8.1 per cent from the first half of 2011. China National Petroleum Corp (CNPC) stepped up its issuance this year as the second issuer with the highest proceeds among Asian borrowers with five primary bond offerings worth US$13.8 billion, up 353 per cent compared to the same period in 2011. This pushed the Energy & Power sector bond proceeds up 90.8 per cent to US$54.2 billion, from US$28.4 billion in the first half of 2011. The Financial sector dominated with US$203.6 billion, capturing 57.2 per cent of the region’s debt offering, with Commonwealth Bank of Australia (excluding issuance from subsidiaries) at the forefront raising US$17.5 billion this year from 28 new issues. -- BERNAMA