HONG KONG, Sept 18 (IFR) - Beijing Enterprises has raised €500m (US$590m) from a five-year guaranteed green bond offering on the back of a strong bid from domestic investors.
The 1% unsecured Reg S bonds priced at 99.637 to yield 1.075%, or mid-swaps plus 150bp, inside initial price guidance of plus 190bp area.
Orders peaked at €1.8bn, including €1.195bn from the leads. The final order size and distribution statistics were not available at the time of writing.
"There was decent interest from Chinese banks although the euro, which was specifically requested by the borrower, is a less preferred currency than US dollars," a lead said.
Beijing Enterprises' existing euro-denominated 2022s were seen at mid-swaps plus 120bp, so the pricing for the new bonds looks fair considering the three-year extension, the lead said.
China National Chemical Corp also priced a €500m four-year bond at mid-swaps plus 168bp earlier this week. The notes, however, are rated a notch lower at Baa2 by Moody's compared to Beijing Enterprises' Baa1.
Beijing Enterprises' new notes were trading 3bp tighter in secondary on their first trading day.
The bonds are the state-controlled beer-to-energy conglomerate's third euro-denominated issue. The company previously visited the international bond market to print euro bonds in April 2017 when it raised €800m.
Although demand was driven by local investors, the company's history in euros helped gain support from Europe, said the banker on the deal.
Talent Yield (Euro) is the issuer and Beijing Enterprises Holdings is the guarantor.
The bonds have expected ratings of Baa1/BBB+ (Moody’s/S&P), in line with the guarantor.
Proceeds will be used to refinance existing offshore debt incurred in connection with the funding of the eligible green assets as described under the guarantor’s green finance framework.
ANZ, HSBC, ICBC (Asia) and Natixis were joint global coordinators as well as joint bookrunners and joint lead managers with Agricultural Bank of ChinaHong Kong branch, Bank of China (Hong Kong), Bank of Communications, CCB International, China Citic Bank International, China International Capital Corporation, DBS Bank and ICBC International.
ANZ and Natixis were joint green structuring advisers.
Beijing Enterprises is 62.14%-controlled by BE Group, which in turn is wholly owned by the Beijing municipal government and supervised by the Beijing State-owned Assets Supervision and Administration Commission.
(Reporting by Jihye Hwang; Editing by David Holland)
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