Chinese coal company sells $400 million of bonds

Hidili prices its five-year bond with an 8.625% coupon after the deal is four times subscribed. Another deal that priced late last week was Ching Hong Bank which raised $225 million from a lower tier-2 transaction.

The market last Friday welcomed a rare non-government-linked corporate bond to be issued by a Chinese company outside the property sector. Chinese coal and coke producer Hidili Industry International Development priced a $400 million bond with a coupon and yield of 8.625%. The senior unsecured five-non-call-three deal was reoffered at par and was issued under the Regulation S144A format. The bonds mature on November 4, 2014.

The issuer was pleased with the pricing, given the weaker markets last week. Some of the investment-grade trades that priced last week, such as Korea Gas and Axis Bank, cheapened aggressively on Wednesday and Thursday.

Therefore, to price at 8.625%, which was equal to the bookrunners'...

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