Baosteel ends market hiatus with $500m bond

China’s second-largest steelmaker prices Asia’s first dollar bond in nearly a week, paying up some premium as market volatility continues to dampen sentiment.

Baosteel Resources sold a $500 million five-year bond on Wednesday, helping to break the week-long silence that descended on Asia’s debt capital markets.

The Reg S-only debt offering priced at US Treasuries plus 270 basis points, which is around 20bp tighter than the initial price guidance area of Treasuries plus 290bp, according to a term sheet seen by FinanceAsia.

But the borrower still ended up paying a slight premium to its peers as heightened global market worries continued to gnaw away at investor confidence.

“Investors are still cash-rich but it’s still very restricted as to who can come...

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