Citic Pacific closes heavily subscribed $1.25 billion bond

Citic Pacific returns to the debt capital markets after a decade with a $750 million hybrid supported by private banks and a $500 million senior bond.
Chang Zhenming, chairman of Citic Pacific
Chang Zhenming, chairman of Citic Pacific

Hong Kong-listed conglomerate Citic Pacific successfully priced a heavily subscribed dual-tranche $750 million hybrid and $500 million 10-year senior note on Friday night. The deal marked Citic Pacific’s return to the public debt capital markets after a decade-long absence.

It was also the first dollar-denominated corporate hybrid this year and, depending on how it fares in secondary trading, could re-open the market after a hiatus of sorts. Corporate hybrid issuance came to a halt last year after perpetual bonds from Noble Group and Cheung Kong Infrastructure traded poorly in the aftermarket and investors lost money.

“It’s tough to say whether the market for perpetual bonds is...

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