PowerChina grabs $500m from perp return

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By Morgan Davis
26 Mar 2021

Power Construction Corp of China priced its $500m bond 20bp inside of fair value this week, taking advantage of the rarity value of perpetual notes from the country’s state-owned companies.

PowerChina, which is rated Baa1/BBB+/BBB+, sold a similar $300m perpetual bond in September 2020. That trade received $1.3bn of orders, including $702m from the leads. The borrower regularly uses a perpetual tenor for its dollar bonds.

Investors were eager to buy a perpetual bond from the state-owned enterprise ...

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