China deals raise concerns over guarantee structure

29 Nov 2012

China Cosco Holdings and China Development Bank’s Amber Circle Funding received a combined $27bn in orders for their respective dollar deals this week.

The guarantee structure in both transactions offered investors rare exposure to mainland banks at an attractive concession. But they also highlighted the difficulty of finding agreement over how guarantees should be priced.

CDB raised $1.5bn for its offshore leasing business through Amber Circle, a Cayman Islands-registered SPV, and guaranteed ...

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