Sanctioned Avic pays premium for bond

US China conflict_575px_adobe_3July20
By Morgan Davis
25 Jan 2021

China's Avic International Holding Corp had to offer investors a premium for its latest dollar bond, to compensate them for the risk associated with its inclusion on a US sanctions list.

The state-owned borrower, which is rated BBB- by S&P Global Ratings and A- by Fitch, is under the control of the Aviation Industry Corporation of China. That landed Avic on the US list of sanctioned Chinese entities with alleged military ties.

Despite investor concern around the sanctioned ...

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