Chalco debuts $350m senior hybrid

The Chinese aluminum company sold its first senior perpetual note amid increased market scrutiny towards the sector, with some experts commenting that it priced too aggressively.
Chalco’s perpetual received an order book of $600 million from approximately 70 accounts.
Chalco’s perpetual received an order book of $600 million from approximately 70 accounts.

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...

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