BONDS: CCB Asia US$200m tap attracts US$1.6bn book
China Construction Bank (Asia) has reopened its existing US$400m 3.25% due July 2019 Reg S bond for a US$200m tap. It priced the addition last night at 100.891 to yield 3.054%, or 135bp over five-year US Treasuries.
The pricing was at the low-end of the final guidance of 140bp over five-year US Treasuries, plus or minus 5bp, released yesterday afternoon.
Initial guidance yesterday morning was for a yield in the 155bp area over five-year Treasuries.
The size of the order book reached US$1.6bn, with 129 accounts participating. In terms of regional distribution, Asian investors took 93% of the deal with 5% going to Europe and 2% to the US. As for investor types, banks bought 68%, fund managers bought 20%, insurance companies bought 6% and private banks bought 6%.
The outstanding 2019s were quoted in the market at 3.041%/3.01%, around 136bp over five-year Treasuries this morning. That spread was 5bp tighter compared to 141bp over at the time of announcement yesterday.
The addition, which will settle on July 23, will be consolidated and form a single series with the existing notes. Listing will be in Hong Kong.
The senior unsecured issue is expected to receive an A2 rating from Moody’s. The agency rates the issuer A2 (stable).
Joint bookrunners are Bank of China (Hong Kong), Bank of America Merrill Lynch, CCB International, HSBC and Standard Chartered Bank (B&D).