BONDS: China Unicom (HK) books already over Rmb2bn

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Asia

China Unicom (Hong Kong) has already garnered orders of over Rmb2bn (US$323m) for its offering of new two-year offshore renminbi bonds.

Initial guidance was released at a yield in the area of 4% this morning. Pricing of a benchmark-sized issue will take place today.

Among comparable issues from state-owned enterprises are China Unicom’s 4% 2017s, quoted in the secondary market at 4.002%/3.902%, Sinochem’s 3.55% 2017s, quoted at 3.585%/3.509%, Baosteel’s 4.15%, quoted at 3.688%/3.288%, China Minmetals’ 3.65% 2016s, quoted at 4.044%/3.94%, and China Minmetals’ 4.25% 2017s, quoted at 4.207%/4.107%.

The issuance will be off the company’s medium-term notes programme.

Proceeds will be used for working capital and general corporate purposes.

Bank of China, ICBC (Asia), DBS Bank and CICC HK Securities, JP Morgan and Nomura are joint bookrunners and joint lead managers.