BoCom breaks lull with $550m floater

China's fifth-largest lender sells an aggressively-priced floater after building a peak order book of $4.25 billion.

Bank of Communications, China's fifth-largest lender by assets, priced a $550 million three-year floating rate note on Wednesday, making the most of the summer lull to generate a strong order book from deal-starved investors.

The bank was the first Asian issuer to tap the dollar bond market this week. Given that limited supply, the Reg S deal generated more than $4.25 billion of bids before the release of final price guidance, bankers familiar with the deal said.

Floating rate issuance may, on the surface, not appear the obvious choice in the current environment, when base rates are razor-thin and fixed-rate issuers are getting away with uber-tight...

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