Shanghai Electric debuts $500m bond

The Chinese state-owned power equipment supplier sells first dollar-denominated bond, raising funds to finance its offshore acquisition binge.
Shanghai Electric diversifies into wind and gas turbine products
Shanghai Electric diversifies into wind and gas turbine products

Shanghai Electric sold a capped $500 million five-year bond on Thursday, its first ever in the global debt markets, using the proceeds for offshore acquisitions and general corporate purposes.

The Reg S-registered offering priced 25bp tighter than its initial price offering of Treasuries plus 165bp area, indicating buoyant demand for high-quality names from China, according to sources close to the deal. Shanghai Electric is rated A2AA by Moody’s, Standard Poor’s and Fitch respectively.

The bond, which has a yield of 3.045% and coupon of 3%, launched upon the completion of its global roadshow in Hong Kong, Singapore and London, which began on Monday and...

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