Chinese duo tap dollar bond market

Yunnan's provincial government sells its first dollar-denominated bond, while Hong Kong Airlines returns to the offshore market less than three months since its last deal.

Two Chinese borrowers from either end of the credit spectrum executed international bond offerings on Wednesday, with a $300 million deal from the Yunnan provincial government and a $120 million issue by Hong Kong Airlines.

The two transactions end a recent drought in offshore offerings by Chinese corporates following the latter's recent migration to the domestic bond market where funding is generally cheaper. 

However, Yunnan's deal in particular is symbolic of the kind of the international brand building exercise bankers think China's provincial governments will increasingly engage in.

Its three-year Reg-S offering was initially marketed at 270bp over Treasuries before being tightened by...

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