China Cinda Holdings aims to raise $400 mln in dollar bond - sources (updated)

China Cinda Asset Management

31/07/2023 05:17

(Adds initial investors' demand for the deal)
    By Georgina Lee and Scott Murdoch
       HONG KONG, July 31 (Reuters) - Financial services firm
China Cinda (HK) Holdings is aiming to raise $400 million in a
3-1/2-year U.S. dollar bond, according to a term sheet and two
sources with direct knowledge of the transaction. 
    The wholly owned subsidiary of China Cinda Asset Management
 1359.HK  has launched the deal at an initial price guidance of
175 basis points above three-year U.S. Treasuries  US3YT=RR ,
the term sheet showed.
    The sources could not be named as they were not permitted to
speak to media. China Cinda did not immediately respond to a
request for comment.
    Investors have already lodged bids worth more than $2.2
billion for the deal, according to a term sheet seen by Reuters.
    The deal is issued by China Cinda (2020) I Management, and
the bond is expected to be rated at BBB+ by S&P Global Ratings. 
    China Cinda (HK) will use the proceeds to refinance existing
debt, according to the term sheet. The company is primarily
involved in financial services and non-performing assets
acquisition, according to its website. 
    The last time the issuer tapped the bond market was in May,
when it issued a 1.5 billion yuan ($210.03 million) offshore
yuan bond that matures in May 2026 and pays a 3.7% coupon, data
from Refinitiv shows. 

 (Reporting by Georgina Lee and Scott Murdoch; Editing by
Jacqueline Wong and Himani Sarkar)
 ((Scott.Murdoch@thomsonreuters.com;))