China Cinda sells blockbuster $3b bond

China Cinda Asset Management topped up its capital with a $3.2 billion alternative tier one bond, generating blow-out demand despite an aggressive approach.

A potent brew of volatile markets, inexperienced issuers and increasing competition among banks and brokerages has led to a marked deterioration in G3 bond market practices out of Hong Kong. Calls for change are growing louder.

China Cinda garnered an impressive order book of $19 billion for a four-part deal, while China Re received $2.3 billion of orders for its debut.

With investors starved of yield, China Orient could have sold the bonds 10-times over, enabling the state-owned enterprise to price the deal aggressively.

Chinese offshore property bond issuance has more than doubled this year, while the average yield-to-maturity for non-investment grade bonds in the sector has risen to its highest level ever.

As part of the latest sale, the oil giant added a 30-year maturity after demand from investors during bookbuilding.