China last week sold a 1 billion tranche--the largest ever euro-denominated Asian offering--that was priced three basis points tighter than initial guidance.
The investment-grade, 10-year transaction is twice the size of China's 2003 Eurobond offering. It is noteworthy because it "attracted a large number of real money investors," said Robert Whichello, official on the emerging market syndicate desk at BNP Paribas, which was joint lead on the deal with Deutsche Bank and UBS. He said 82% of the euro-denominated part was purchased by European investors, which he called a significant level. China also sold a $500 million class as part of the overall $1.7 billion offering.
Whichello added 70% of the book was made up by real money accounts with more than half of the bonds going to pension funds, insurance companies, central banks and asset managers. London-based investors noted that the benchmark size of the transaction, along with its 10-year maturity, was a key selling point.
The deal was priced last week at mid-swaps plus 40bps, versus price guidance of 43bps.