Investors clamour for rare Chinese cement bond

West China Cement refinances outstanding notes with a $400 million bond, making use of the still-low interest rate environment and diversifying the property-heavy high-yield space.
The reconstruction of China’s shanty towns will benefit West China Cement
The reconstruction of China’s shanty towns will benefit West China Cement

West China Cement raised a $400 million five-year bond on Thursday, tapping the markets for refinancing purposes while the rates environment remains subdued.

The proceeds of the Reg S-registered offering, which is callable in year three, will be used to refinance a portion of the company’s $400 million bond maturing in January 2016 that has a yield of 7.5%, according to sources familiar with the matter.

At the same time, West China Cement’s new note offered investors sector diversification in the high-yield space, which is dominated by Chinese property companies.

“We still anticipate solid support given this bond’s scarcity value,” said a Hong Kong-based...

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