Zhejiang Provincial Energy sold a $300 million three-year bond on Tuesday, raising it hot on the heels of China’s better-than-expected manufacturing numbers.
The offering, which is Zhejiang Provincial Energy’s inaugural issuance in international debt capital markets, was issued by its subsidiary Zhejiang Energy Group. The Reg S-registered bond was supported by keepwell and liquidity support deeds, and an equity interest purchase undertaking from the parent. As such, it has an expected ratings of A2 and A from Moody’s and Fitch respectively.
Given its state-owned status and relatively strong credit ratings, the borrower was able to tighten pricing by a hefty 30bp from an initial price guidance...
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