Thailand’s Ananda Development Pcl is planning the Dim Sum market’s first sale of notes without a fixed maturity.
The Thai builder, which hasn’t previously issued foreign-currency bonds, expects to sell the yuan-denominated notes offshore in the near future, subject to market conditions, a person familiar with the matter said, asking not to be identified because the details are private.
Issuers from outside China and Hong Kong cut sales of Dim Sum bonds this year, offering 23.6 billion yuan ($3.9 billion) since December, 29 percent less than issuance in the first 10 months of 2012, data compiled by Bloomberg show. The Chinese sovereign sold securities due 2043 in June, the longest-dated notes in the market so far, paying 3.95 percent, the data show.
“The market is actually quite keen to see new bonds these days,” said Becky Liu, a Hong Kong-based senior rates strategist at Standard Chartered Plc. “Anything higher yielding would be interesting. Private banks would be likely to get a good, if not a majority, share.”
Private banks bought 47 percent of Aluminum Corp of China Ltd.’s dollar-denominated perpetual bonds at 6.625 percent last week, a person familiar with the matter said at the time. By contrast, China Petrochemical Corp. allocated 7 percent of its 30-year notes which offered a 5.417 percent yield to the wealth managers.
Dim Sum bonds yield an average 4.17 percent, 15 basis points less than Asian issuers pay for debt in the U.S. currency, HSBC Holdings Plc indexes show.