Insurer FWD raises profile with $325m bond

Richard Li’s insurance company establishes its footprint in the debt world with a debut 10-year bond, targeting investors with appetite for longer tenor notes.
FWD is Hong Kong's ninth-biggest insurer
FWD is Hong Kong's ninth-biggest insurer

FWD sold a $325 million 10-year bond on Wednesday, targeting investors with a strong appetite for longer tenor notes amid a rising interest rate environment.

The Reg S-only registered note priced at Treasuries plus 250bp, which is 15bp tighter than its initial price guidance of Treasuries plus 265bp, according to a term sheet seen by FinanceAsia. It has a yield of 5.063% and coupon of 5%. 

Ranked ninth in Hong Kong in terms of annualised premiums, the insurer will use the proceeds to repay its total outstanding borrowings under a $500 million facility agreement dated February 21, 2013, according to a source close to...

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