No rating, no worries for Regal bond return

Hong Kong-listed Regal Hotels International issued a $350 million five-year bond on Wednesday, getting big demand from risk-averse investors despite coming to the market without a rating.

The company, majority-owned by property tycoon Lo Yuk-sui and his family, is well known by Hong Kong investors. This is partly because of the eight hotels the company runs in the special administrative region, but also because of its previous market activity. Regal is listed on the Hong Kong stock exchange, and has previously sold a real estate investment trust.

This familiarity helped Regal generate a huge orderbook despite turning to investors without a rating. The company attracted a peak...