China Resources Enterprise launches CB

The issuer has agreed to a three-year call but thereafter the bond is subject to a130% hurdle. This implies that the bond would have a credit spread assumption of 230bp over the relevant Treasury. Investors have been further tempted by a dividend yield of 1.2%, The issue has a theoretical value of 101.2% and a bond floor 82.7%. Standard & Poor’s - the credit rating agency - has assigned the issue a rating of BBB-.