SBLC ramps up demand for Huatai’s debut

China flag resized 230px
By Rev Hui
30 Sep 2014

Huatai Securities completed its inaugural dollar issue on Thursday, September 25, selling a $400m credit enhanced five year bond. Despite less than ideal market conditions, the borrower’s decision to follow in the footsteps of other Chinese financial names that have debuted with a structure backed by a standby letter of credit (SBLC) helped it gain a strong following.

Earlier this year, industry peer Guotai Junan Securities also adopted an SBLC structure for its inaugural deal in the dollar market. That $500m 3.625% 2019 deal, which priced on May 16, resonated well with investors and was seven times subscribed.

Haitong International Securities followed the same route with ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial