CNPC saves with three year dollar floating rate note

By Virginia Furness
08 May 2014

CNPC General Capital, a subsidiary of China National Petroleum Corporation, on Wednesday priced a dual tranche bond that included a three year floating rate note. While the vast levels of subscription seen by previous state-owned enterprises were not repeated, the issuer was able to get a significant saving over where a three year fixed rate note would have come. The five year priced just wide, however.

“The borrower wanted an issue to reduce the cost of its financing, which is why it went for the three year floating rate note,” said a senior syndicate banker on the deal. “It was also keen to tap into investor demand for three year floaters.”

Joint global co-ordinators ...

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