Greenland braves price discovery for guarantee

By Virginia Furness
26 Jun 2014

Greenland Global Investment on Wednesday became the first issuer to price a bond with a cross border guarantee under China’s recently revised rules. But discrepancies over the most relevant comparables meant that not everyone was confident that pricing came at the right level.

China’s State Administration of Foreign Exchange (Safe) recently eased administrative requirements for borrowers wanting to make use of cross border guarantees. The revised rules, which came into effect on June 1, allow borrowers to deploy the credit enhancement feature without having to obtain ...

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