Zhongrong International Trust, China's second largest trust company, has sold its first US dollar bond.
The inaugural US$225 million 3-year bond issue for Zhongrong International Trust pays 6 per cent coupon, said DBS Bank Tuesday. Huatai Financial Holdings (Hong Kong) Limited, Barclay, DBS and Haitong International are joint lead managers and book runners.
Orders for the deal exceeded US$575 million, allowing the pricing to tighten from initial guidance of 6.25 per cent to 6 per cent.
Asia investors accounted for the lion's share of 95 per cent of the issue with Europeans taking the remainder 5 per cent.
By investor type, private banks got 49 per cent, followed by asset and fund managers, 26 per cent, banks 24 per cent and pension/insurance one per cent.
The deal was structured with two features to provide comfort to investors: interest reserve account and change of control put.
An amount will be maintained in the interest reserve account of not less than the amount of interest for one interest period due in respect of the notes outstanding. On the change of control put feature, it means that in the event of a change of control, bondholders can put or have the right to sell back to the issuer at 101 per cent of the principal amount and accrued interest. The bonds are sold at 100 par.