CDB landmark bonds deepen CNH market

The offering of Rmb4.5 billion was met with strong investor interest and was overall 1.22 times covered.
The issue from CDB, the country’s policy bank, is rated Aa3 by Moody’s and AA- by S&P.
The issue from CDB, the country’s policy bank, is rated Aa3 by Moody’s and AA- by S&P.

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...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222