Weichai Power, a Chinese diesel engine and forklift truck manufacturer, executed its debut international bond on Wednesday in the face of a deteriorating backdrop for China credits.
The fall in Caixin's Purchasing Managers Index to a new six-and-a-half year low prompted a sell-off in Chinese equities and credit that left investment grade spreads about 5bp wider on the day.
It made for a slow build up for Weichai's orderbook, which closed around the $700 million mark. This led the BBBBBB rated group to size its five-year Reg S deal at $400 million.
After initially marketing the transaction at 285bp over Treasuries, the syndicate...