Baosteel and Mitsui beat the dim sum bond crowd

Dim sum deals by Baosteel and Mitsui & Co reflect growing investor appetite for five-year bonds.

Baosteel and Mitsui beat the dim sum bond crowd
Coils of rolled steel at a Baosteel plant in Shanghai (Imaginechina)

In the past, investors have mainly bought dim sum bonds for the prospects of renminbi appreciation and hence demand for short tenors has typically been the strongest. But the dim sum bonds from Japanese trading firm Mitsui Co and Chinese steelmaker Baosteel reflect a growing investor appetite for the five-year tenor.

Mitsui yesterday evening priced a Rmb500 million $79 million five-year dim sum, or offshore renminbi bond, at a coupon of 4.25%, at the tight...

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