Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The Asset G3 Bond Benchmark Review 2026 Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk We hope you found our commentaries and ideas helpful. Weseek to elevate ourefforts and value-add further in the coming year. We highly appreciate yoursupport to us in Sell-Side Analysts of the polls of “The AssetG3 Bond BenchmarkReview 2026”.Thankyou for your support! This morning, we saw better selling in Australian T2s and TW lifers, versussmall better buying in Chinese TMTs and JP FRNs, but the space was largelyunchanged in spreads. GLPSP 4.6 Perp rose another 1.8pts. NWDEVL 6.25Perp was 0.5pt higher. ACPM 4.85 Perp/ACENPM 4 Perp were 0.7-1.1ptslower. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk HKTGHD:FV of the new HKTGHD 36 to be T+70bps vs IPTof T+110bps.HKTGHDs were unchanged this morning. See below. SMCGL:San Miguel Global Power launched exchange and tender offer forany and all of the USD683.548mn SMCGL 5.45 Perp at par, andconcurrentnew USD perp issuance. SMCGL 5.45 Perp was 0.1pt higher this morning,while the other SMCGL Perps were unchanged. Trading desk comments交易台市场观点 Yesterday,GLPSPs/GLPCHI 29 led the space and rose up to 2.6pts. Mediareported GLP seeks to raise up to USD3bn from an IPO in Hong Kong by4Q26. For the rest of the SE Asian space, SMCGL 5.45 Perp lost 0.1pt, whiletheother SMCGL Perps were unchanged.San Miguel Global Powerannounced issuance of new USD Perp and launched concurrent tender offerfor SMCGL 5.45 Perp. In JP space, SOFTBKs gained another 0.9pt. InChinese IG space, MEITUA/XIAOMI traded 1-3bps tighter on Meituan’sbetter-than-expected 1Q26 results. See our comments on Meituan 1Q26resultsyesterdayand on Xiaomilast Friday. WESCHI 28-29 edged 0.1pthigher. In Macau gaming, MGMCHI 31-33s lost0.4-0.5pt, while MGMCHI 27was 0.1pt higher. MGM Resorts received takeover offer valued at cUSD18bnfrom U.S. media and internet conglomerate People Inc. The rest of theMacau gaming complexes were unchanged to 0.2pt lower. The Macaugaming revenue in May’26 rose 6.7% yoy to MOP22.6bn. In HK, HYSANswere unchanged to 0.1pt higher. Hysan had repurchased USD21.021mnHYSAN 4.85 Perp since Sep’22, and the outstanding amount reduced toUSD424.136mn. Elsewhere, European AT1s had a weaker session led byUBS Perps, which closed up to 0.7pt weaker. UBS priced its new USD1.5bnPerpNC6.5 AT1 at 6.875%. CNH papers rallied by up to 1.0pt amid betterbuying from Chinese AMs and international accounts across TMT, property,and non-Chinese names.In LGFV space,higher-yielding CNH issuesremained sought after but their USD counterparts continued to experienceselling pressure. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.13%), Dow (+0.45%) and Nasdaq (+0.03%) were higher on Tuesday. US Apr’26 JOLTS JobOpenings was 7.618mn, higher than the market expectation of +6.860mn. 5/10/30 yearUST yield were lower onTuesday. 2/5/10/30 year yield was at 4.05%/4.17%/4.46%/4.97%. Desk Analyst Comments分析员市场观点 HKTGHD:FV of the new HKTGHD 36 to be T+70bps vs IPT of T+110bps HKT Capital plans to issue10-year USD senior unsecured bond (Baa2/BBB/-). We view the FV of the newHKTGHD 36 to be T+70bps vs IPT of T+110bps, taking cues from the valuations of existing HKTGHDs and itspeer. See Table 1. The proceeds from the new issue will be used for generalcorporate purposes, including repayment of existingdebts. HKT Capital's next bond maturity is USD750mn HKTGHD 3 07/14/26. The new HKTGHD 36 will sharethe same structure as existing HKTGHDs, guaranteed by parent HKT Group Holdings Limited (HKTGH) andimmediate holding company Hong Kong Telecommunications (HKT) Limited (HKTHK, Baa2/BBB/-). HKTGH operates telecommunications services mainly through HKTHK, as well as mobile and other businessesthrough other group entities. In FY25, HKTGH’s revenue rose 5% yoy to USD4.7bn and EBITDA grew 4% yoyto USD1.8bn. Its EBITDA margin contracted modestly to 39% from 40% in FY24, partly reflecting marginpressure at the mobile segment.That said, the margin pressure was somewhat tempered by 4% yoy declinein opex to USD407mn, driven by AI-led efficiency gains in workflows and network management.Its profitattributable to holder of share stapled units and adjusted fund flow both increased 4% yoy to USD678mn andUSD795mn, respectively. In FY25, HKTGH’s capex declined5% yoy to USD270mn from disciplined investments and efficiency gainsfrom capacity upgrades and network maintenance following the completion of territory-wide 5G coverage. Asof Dec’25, HKTGH held cash of USD312mn and undrawn facilities of USD2.3bn, totaled USD2.6bn, compared to net debt of USD5.4bn. The company’s total debt/EBITDA and net debt/EBITDA was 3.1x and 2.9x,respectively, as of Dec’25, broadly stable yoy, and would further improve to 3.0x and 2.9x assuming passivenetwork disposal proceeds are applied to repay debts.HKTGH’s credit profile remai