Citic Ka Wah perps up investors

The Hong Kong bank offers yield-starved investors the attractive combination of spread and rating.

Breaking new ground for the Hong Kong credit markets, the bank successfully priced Asia ex-Japan's first upper tier 2 debt issue with a perpetual structure yesterday Thursday.

The $250 million offering, which secured a Baa3BB rating, was priced at 99.726% on a coupon of 9.125% to yield 8.967% or 385bp over Treasuries. Callable annually after 10-years, the bond steps up at the same date by either 100bp or 1.5 times the launch spread, calculated as 501bp over Libor....

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