Chinese state-owned steel company Shougang Corp priced a Rmb1 billion $157 million two-year dim sum bond at 4.875% on Thursday.
The unrated bonds were issued through British Virgin Islands-incorporated Shougang Holdings Bonds. The guarantor is Shougang Holdings Hong Kong, a holding company with no significant assets aside from equity interests in various companies, which has paid dividends of roughly HK$45 million $5.7 million during the past year.
Investors bought the bonds for exposure to the onshore parent company, Shougang Corp, which is owned by the State-owned Assets Supervision and Administration Commission.
However, the bonds are not guaranteed by Shougang and, apart from...