Volkswagen answers insurers with smooth five year
Insurance companies in search of longer-dated dim sum bonds convinced Volkswagen International Finance to launch a five year renminbi deal last week, and reverse enquiry from Asian investors — as well as obvious name recognition from buyers in Europe — ensured a smooth execution for the issuer. But the five year tenor is still unlikely to become a typical choice for issuers, said bankers.
Bookrunners China Construction Bank, Commerzbank and HSBC priced a Rmb1bn ($159m) November 2017 transaction at 3.75% on Thursday. The bookrunners initially set guidance in the 4% area, but managed to price the deal tighter after receiving over Rmb5bn of orders from 111 accounts.
We had a lot reverse enquiry from
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