Citic issues tightly priced bond

China’s largest conglomerate disdains new issue premium despite a weakening Asian credit backdrop following last Friday's big Treasury move.
Sino Iron: a project in search of profits
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China's largest conglomerate, Citic Limited, sold a $1.25 billion dual-tranche bond on Monday disdaining a new issue premium despite Asia's weakening credit backdrop.

The state-owned company brought its five-and-a-half year and 10-year deal to market on a day when Asian investment grade credit spreads widened roughly 3bp in response to Friday’s big move in Treasuries.

Weaker than expected US jobs data prompted a 10bp rally in 10-year Treasuries last Friday and while Asian credits outperformed their underlying benchmark on Monday, one fund manager told FinanceAsia that Citic should have offered some concession to the market.

The A3A- group, nevertheless, managed to...

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