MCC repeats success with second SBLC-backed issue

metal and steel 230x150
By Isabella Zhong
28 Aug 2014

China Metallurgical Group Corporation (MCC) priced its second dollar bond of the year on August 21. The borrower again opted for a standby letter of credit (SBLC) backed three year issue after seeing striking success in its first outing with the structure.

MCC printed a $500m 2.625% 2017 bond on June 9, relying on an SBLC provided by Bank of China London Branch. The notes attracted over $2bn of bids and priced 50bp back of where the Chinese lender’s 2.125% 2017s were trading.  

Although issuers are charged a running fee ...

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