Cofco Land builds bond reputation

The Hong Kong-listed property company’s debut $800 million five-year bond was six times oversubscribed, offering investors a good pickup over similar rated credits.

Property Company Cofco Land raised a $800 million five-year bond on Monday night, achieving overwhelming demand from investors that were looking for good yield pickup in the investment-grade space.

The A- rated offering comes with a keepwell deed and equity interest purchase undertaking from its parent, Cofco Hong Kong. These forms of credit enhancement allowed the issuer to tighten the pricing of the bond by 22.5bp from an initial price guidance area of 237.5bp over Treasuries, according to a term sheet seen by FinanceAsia.

“Cofco Land had good support from the parent,” said the source close to the deal. “It priced through some of its...

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