Aluminum Corporation of China also known as Chalco has issued a $350 million senior perpetual with a callable option in the fifth year amid improved pricing conditions.
But domestic concerns circulating the sector have dampened investor appetite for the corporate hybrid offering the first from a Chinese corporate since May.
“The challenge here was the credit not the structure and people complained that the pricing is on the aggressive side,” said a source. “Doing a debut transaction in hybrid format is not a straightforward exercise and required a lot of work on accounts to get them involved in the transaction.”
“The problem is that...