Two Chinese state-owned enterprises executed international dollar bonds on Tuesday, adding to a market, which shows signs of struggling to digest the recent flood of paper.
Monday’s issue by Citic Ltd provided a particularly poor backdrop for a $500 million transaction by Tianjin Infrastructure Construction and Investment TJII and a $1 billion offering by China State Construction Engineering Corp CSCEC.
Citic’s dual tranche five- and 10-year transaction widened by 5bp and 7bp during Asian hours on Tuesday after failing to offer a new issue premium. Of the two new deals, only TJII made any concession to the market.
Both deals came off the...