Jardine Strategic sets record for debut 144a bond

The conglomerate has managed to secure the lowest outstanding coupon in the Hong Kong credit universe.

Priced Friday lunchtime GMT, the Baa1BBB rated credit launched a maiden $300 million ten year bond offering at 99.099% with a coupon of 6.375% and yield of 6.499%, equating to 225bp over Treasuries.

At these levels, Jardine Strategic's deal breaks the existing record held by Castle Peak Power, whose $172.5 million transaction due August 2003 has a coupon of 6.870%. It also easily surpasses all Hong Kong borrowers that have accessed the market this year including its own higher rated subsidiary Hongkong Land and Hutchison Whampoa, both of whom got 7% coupons for their respective 10-year deals earlier in the year.

Bankers say that the low absolute borrowing cost Jardine's has been able...

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