hkmcs-500-million-issue-draws-a-crowd

HKMC's $500 million issue draws a crowd

The scarcity of high-grade Hong Kong issues allows the Hong Kong Mortgage Corp to price at a tight spread.

Asian investors in particular flocked to the Hong Kong Mortgage Corporation's $500 million five-year bond that was priced on Friday evening Hong Kong time, resulting in $4.5 billion worth of demand and a tight spread of 110 basis points over Treasuries.

The unwillingness among investors to let an opportunity to buy high-quality investment grade paper out of Hong Kong pass them by was obvious and even though the price guidance was tightened during the two-day bookbuilding, not a single investor dropped out. That turned out to be the right decision since the bonds continued to tighten in the secondary market yesterday, ending the session at a spread of 97bp.

The bookbuilding started on Thursday morning...

¬ Haymarket Media Limited. All rights reserved.

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