Franshion Properties, Sinochem Group’s flagship real estate developer, closed a $500 million 10-year bond late Friday night. The senior unsecured notes priced at a yield of 6.75% or a spread of 316.1bp over US Treasuries. Deutsche Bank, HSBC, Nomura and Royal Bank of Scotland were joint bookrunners.
The deal gathered an order book of $2.9 billion from more than 200 accounts. Investors in Asia bought 47%, Europe 39% and the US 14%. The notes were priced at par.
Hong Kong-listed Franshion is a 62.87%-owned subsidiary of Sinochem Hong Kong, which is 98%-owned by Sinochem Group, one of China’s key state-owned enterprises.