Kunming Rail debuts strong with dual-tranche bonds

By Addison Gong
06 Dec 2019

Chinese local government financing vehicle (LGFV) Kunming Rail Transit Group Co made its inaugural appearance in the dollar market on Thursday, raising $500m after a large price tightening.

Global co-ordinators Bank of China, CEB International and China International Capital Corp priced the $300m 2022 bond at 3.5% and the $200m 2024 tranche at 3.9%, following initial price guidance at 4.1% area and 4.35% area, respectively. The peak order book exceeded $4.6bn.

The LGFV, rated Baa1/—/BBB+, ...

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