Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 This morning, the new NTT 28-31 FRNs were largelyunchanged in spreadsfrom ROs amid active two-way flows. The new fixed-rate NTT 28-38s tradedunchangedto 2bps wider from ROs.Recent new issues NOMURA31/HDFCB 31/POINTL 31 and TENCNT 36/46 were 2-3bps wider. SNE 31-36 widened 1-2bps. Perps and AT1s weremarked 0.3pt higher. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk Jerry Wang王世超(852) 3761 8919jerrywang@cmbi.com.hk VEDLN:FV of the new ’32, ’34 and ’37 to be low-7%, mid-7% and c8%,respectively. See below. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk DBMMN:Development Bank of Mongolia proposes to issue 5yr USD bondto fund the concurrent tender offer for any and all of the DBMMN 28. Weviewthe FV of the new DBMMN 31 to be low-to-mid 7% vs IPT at 7.6%. See ourcomments in our daily on22 Jun’26. Trading desk comments交易台市场观点 Yesterdayin financials,the new NOMURA Float 29-31 tightened 2-7bps fromROs, while fixed-rate NOMURA 29-36s were unchanged from ROs.The newAXSBIN 6.875 Perp closed 0.4pt higher from RO at par. The other existingAT1s edged 0.1pt higher amid small better buying in the front endof the curvefrom AMs. Insurance subs were largely unchanged amid two-way flowsskewed to small better buying among RMs.The new SNE 31-36 widened 2-3bps from RO at T+40 and T+60, respectively. We consider the pricing of thenew SNE 31-36 to be tight. See our commentsyesterday. The recent newissuesSKONKRs and POINTL traded 2-3bps tighter. Existing front-endHYUELEpapers held unchanged,while the belly and long-end bondswidened 1-3bps. TENCNT 36/46 tightened 1-2bps amidst mixed, two-wayflows.As for higher-yielding issues in Greater China, EHICAR 29 lost 0.6pt,while EHICAR 26-27 gained 0.5-1.0pt. The NWDEVL/VDNWDL complexeswere up to 1.0pt firmer. In Chinese properties, LNGFOR 28-32 traded 0.1-0.3pt higher. VNKRLE 27-29/FUTLAN 28/FTLNHD 27-29 closed 0.3pt lowerto 0.1pt higher.In LGFV space, we continued to see AMs and PBs sellinglower-yielding USD IG issues, whilst we saw balanced two-way flows inhigher-yielding names across USD and CNH issues. In SE Asia, VEDLN 28-33s were 0.2pt lower to 0.1pt higher. VedantaResources circulated IPTs for proposed USD bonds. See comments below.Meanwhile,Vedanta Ltd completed demerger and listed four spun-offcompanies on BSE and NSE. GLPSPs/GLPCHI closed 0.4pt lower to 0.4pthigher. PTTGC Perps edged 0.1pt higher. SMCGL Perps were up to 0.2pthigher.The CNH space overall remained well bid despite occasional AMselling. The new CNH SIASP31 traded 0.8pt higher from RO at par thanksto PB buying. See our comments on23 Jun’26. CMBI Fixed Incomefis@cmbi.com.hk Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-0.10%), Dow (+0.35%) and Nasdaq (-0.43%) were mixed on Wednesday. US May’26 New HomeSales were 580k, lower than the market expectation of 638k. USlatest Crude Oil Inventories declined 6.088mnto 412.1mn barrels, compared to the market expectation of-3.9mn.UST yield were lower on Wednesday.2/5/10/30 year yield was at 4.11%/4.17%/4.41%/4.86%. Desk Analyst Comments分析员市场观点 VEDLN:FV of the new ’32, ’34 and ’37 to be low-7%, mid-7% and c8%, respectively Vedanta Resources (VRL) proposes to issue USD 144A/Reg S bonds (Ba3/BB-/BB) in three tranches,comprising 6-, 8-and 11yr tenors to fund concurrent tender offersfor ’30-33s.We view the FV of the newVEDLN 32 to be low-7% (vs. IPT 7.25%), VEDLN 34 to be mid-7% (vs. IPT 7.625%), and VEDLN 37 to be c8%(IPT at 8.0%), taking cues of the valuations of the existing VEDLN curve and adjusted for the amortizingstructure. The new bonds will be issued by Vedanta Resources Finance II PLC, the same issuing vehicles as the existingVEDLNs, and will be guaranteed by the same entities, VRL, Twin Star Holdings, Welter Trading and VedantaHoldings Mauritius II.The amortizingprofile is a key differentiator compared to the existing VEDLNs, withestimated effective tenors of c5.25yrs for VEDLN 32, c7.1yrs for VEDLN 34 and c9.75yrs for VEDLN 37. Weview the structures improve recovery visibility. Covenants are broadly aligned with the existing VEDLNs. Thenew bonds contain a clause such that VRL will not permit Vedanta Resources Investments Limited to use thecollateral as backing for any new loans or debts, unless those debts are explicitly allowed. As per media report, VRL targets to raise totaled USD2.0-2.5bn across three tranches. The combined effect ofthe new issuance, concurrent tender offers for ’30-33s, and the early redemption of ’28-29s should reduce itsnear-term refinancing pressure and extend VRL’s maturity profile.We view the LME as credit positive, theamortizing structure further supports a smoother deleveraging path by spreading repayment obligations overtime. See our comment on VRL’s concurrent tender offer in our daily on10 Jun’26. The recent demerger simplify the group structure and improve funding visibility are constructive to the creditprofile of VRL and V