FRNs capture issuers’ fancy as rate hike looms
China Development Bank jumped on the floating rate note (FRN) bandwagon this week, bagging $3bn equivalent and adding its name to a list of issuers that recently sold bonds in the format. With demand rather than supply driving deals, and with interest rate hikes looming, the stage is nicely set for more FRN trades, writes Addison Gong.
The Chinese policy bank was last out in the international market in mid-January with a $4bn equivalent dual-currency, five tranche outing. And a little more than a month later, it returned with a floating rate-only transaction divided into three tranches and denominated in US and Hong Kong dollars.
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