Swire re-opens bond deal to raise another $100 million

Swire Pacific responds to a handful of reverse enquiries from Asian accounts and re-opens its bond, bringing the total size of deal to $500 million.
Swire Pacific, one of Hong KongÆs leading listed companies, has sold another $100 million worth of bonds, re-opening last weekÆs $400 million transaction as a result of reverse enquiries from a ôhandfulö of Asian accounts. The total size of the deal is now $500 million.

The deal was the first transaction from a non-government linked company this year.

The new bonds priced at 260bp over 10-year Treasuries, versus 293.6bp in the initial deal. The bonds were trading on Monday at a bid of 248bp over Treasuries.

The bonds, rated A3/A-/A, came at a price of 99.246, a coupon of 6.25% and a yield of 6.353%.

ôThe initial issue was well received by investors. The bonds rallied strongly and as the market has continued to improve, we saw some follow-up demand from real money accounts wanting to place some pretty sizeable orders,ö says a source close to the deal.

Demand amounted to slightly more than $100 million.

Swire adopted a conservative approach last week in terms of size and pricing of the deal. ôIt was a pretty choppy market and equities were down quite significantly so they played it safe,ö says the source. ôBut this was the opportunity to raise an extra $100 million of bonds without any impact on secondaries.ö

ôIn theory, investors would be rattled by an unexpected tap,ö says a source on the buy-side. ôHowever, the deal came at a much tighter level on a spread basis and was well absorbed.ö
¬ Haymarket Media Limited. All rights reserved.
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