Chalco steps up with $500m perpetual

The state-owned aluminum giant pulls off an aggressive price after including a coupon step in its perpetual.

Chalco steps up with $500m perpetual

State-owned aluminum giant Chalco, rated BBBBBB-, raised $500 million of capital this week, selling a perpetual bond that becomes callable after five years.

The company became only the latest Asian corporation to issue perpetual bonds amid the tight interest rate environment.

The bond was priced at par to yield 4.25%, at the tight end of final guidance of between 4.25% and 4.375% and inside initial price talk circulated of the...

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