Spreads on Hutchison's 6.95 percent 07 issue have tightened by up to 15 bps to about 187 bps over Treasuries over the past week although they are 11 bps wider than three months ago. Analysts say it is now one of the most attractive high-grade issues and offers better value than Hong Kong Land. Unlike European telecom companies it has increased the value of its assets by trading one asset for another so it has not substantially increased its liabilities. Market speculation is rife about who they are likely to be. But those with longer-term plans may decide to get funding while rates are low.
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Two Singapore companies are in line to be the next major Asian issuers in the dollar bond market. Hong Kong's Dao Heng Bank Ltd. The debt issue will also allow DBS to maintain its minimum capital adequacy ratio, which will come under pressure as a result of the acquisition. DBS President and Chief Executive Officer Jackson Thai laid out the bank's borrowing plans during a recent conference call with industry analysts. Another issuer preparing to tap the dollar market is Malaysia's YTL Power International Bhd. May. Analysts said market conditions will likely be better then.