HONG KONG Jan 4 HSBC Bank (China) Company
Limited has priced its 1 billion yuan ($160.5 million) two-year
floating-rate dim sum bond at three-month Shanghai Interbank
Offered Rate (SHIBOR)-60bps (basis points), two sources close to
the deal said on Friday.
The initial price guidance of the senior unsecured bond was
fixed at three-month SHIBOR-45bps and feedback from investors
was quite positive, sources told Reuters earlier.
"The books surpassed 3 billion yuan with over 50 orders, and
fund managers and banks have taken up a big part," said one of
The three-month SHIBOR was last quoted at
3.8996 percent, which will translate to a yield of around 3.3
percent for HSBC's rare floating-rate bond.
Fund managers and hedge funds comprised 50 percent of the
transaction, followed by banks at 33 percent, private banks 16
percent and corporates 1 percent, one of the sources said.
Hong Kong investors accounted for 52 percent and the rest of
Asia made up 32 percent. Europe and other countries 16 percent.
China has been actively promoting wider use of its yuan
currency, also known as the renminbi, internationally and the
offshore yuan bond market has been developing rapidly since the
first dim sum bond was issued in July, 2007.
Total issuance volume in 2012 was 148.5 billion yuan,
Thomson Reuters statistics showed.
HSBC (China) is rated A2 by Moody's and the dim sum bond
will not be rated. The coupons will be paid quarterly on Jan.
10, Apr. 10, July 10 and Oct. 10 of each year.
Before this bond, HSBC (China) sold a 1 billion yuan
two-year dim sum bond priced at SHIBOR+38bps in June 2009.
HSBC is the sole global coordinator for
Joint lead managers and bookrunners include HSBC, Bank of
Communications Hong Kong Branch, China Construction Bank
International, Citic Securities International, Industrial and
Commercial Bank of China (Asia), and ICBC International.