China Development Bank has priced a Rmb4.5 billion three-tranche Reg S senior unsecured bond offering, setting a benchmark for upcoming CNH notes.
The deal comprised Rmb1.9 billion 2-year notes at 3-month Hibor plus 20bps, Rmb1.7 billion 5-year notes at 3.6% and Rmb900 million tranche at 4.5%.
Investors were enthusiastic, leading the bank to increase the size by 50% from the original Rmb3 billion. The coupons of the 2-year and 5-year tranches were both tightened by 5bps from initial 3-month Hibor plus 25bps and 3.65%, given the hefty demand. The upsized book was finally 1.22 times covered.
The issue from CDB, the country’s policy...