BoCom HK rides wave of bond issuance

Bank of Communications Hong Kong branch raises a $700 million three-year senior unsecured note, becoming the first Asian financial institution to issue in 2014. But it has been a busy week for debt markets.

Bank of Communications BoCom Hong Kong branch raised a $700 million three-year senior unsecured note on Wednesday, smartly riding the wave of other bond issuance that has hit the debt markets in the first week of the new year.

The bank’s debut Reg S-registered paper had an initial guidance of 170bp over Treasuries and ended up pricing 25bp tighter at 145bp over Treasuries, according to a term sheet.

Sources note that BoCom’s note priced much tighter than its comparables, including Agricultural Bank of China’s ABC $500 million three-year bond that got issued in December, and which was trading at Treasuries plus 159bp or a G-spread...

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