ADBC relies on anchor bids to control dim sum price

21 Jun 2012

Agricultural Development Bank of China raised Rmb3bn ($471m) from a three-tranche offshore renminbi bond last week, using strong anchor demand to price the deal estimated to have been either inside or at least flat to its existing curve.

But some investors complained about the tight pricing, and pulled their orders.

The state-owned bank sold Rmb1.5bn of two year notes with a yield of 2.98%, which was inside initial price guidance, as well as Rmb1bn of three year bonds paying 3.20% and Rmb500m of five year notes ...

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