Chinese issuers opt for keepwell structures

Agriculatural Bank
By Morgan Davis
19 Jan 2018

Peking University Founder Group Company and Bank of Communications Financial Leasing Co used keepwell deeds for their dollar bond sales on Thursday, paying a bit of premium for the structure.

While weaker, investors proved receptive to the keepwell structure of the new notes.

“It’s become a lot more acceptable to use keepwell deeds,” said a head of fixed income on the Founder Group trade. Investors will put more weight on the quality of the company, he said. ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial