ASIA-PACIFIC

摘要

Power Construction Corporation of China (pccc) seized the window ahead of Bank of China's jumbo Addition Tier 1 offering to print a maiden US$500m perpetual non-call five-year bond. The Reg S trade managed to price at a tight yield of 4.05%, the lower end of the final guidance and an impressive 32.5bp inside initial thoughts. Books built steadily, despite a volatile market. Orders in Asia quickly hit US$1bn and passed the US$3bn mark later in the day, which allowed the leads to pull in the final guidance 27.5bp from the initial level. Books eventually reached US$3.3bn, featuring 150 accounts. At the reoffer yield of 4.05%, the offering left hardly any new-issue premium. Nomura analysts compared PCCC's perp to that of China Railway Construction, indicated at a yield-to-call of 3.95%. By applying CRC's perp-senior multiple of around 1.7× to PCCC's theoretical senior paper to come up with a Z-spread of 140bp, the analysts put the fair value for PCCC's perp at 4.05%.