China Glass Holdings says it should price its BB1-rated Reg-S senior guaranteed 5-year bond in the mid- to high-9% range. The pricing announcement comes after significant market volatility last week which caused Malaysia International Shipping Corporation MISC and Korea's Kia Motors to pull their deals - worth a combined $1.25 billion - from the market.
Much of the volatility was due to renewed concerns about the depth of the subprime loan problem in the US. And while some investors believe these problems will have little direct impact on Asia, they still expect a risk premium to compensate for recent market moves. The buy-side clearly has more bargaining power now.
Meanwhile, the appetite for...
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