By Editorial PortalPortuario.cl
@PortalPortuario
The Board of Directors China Merchants Port Holdings (CMPort) announced the successful issuance of covered bonds for USD 500 million with a coupon rate of 4% and due for 2027 by its subsidiary company on May 25, 2022. The proceeds will be used to support the daily operations of the company, including the payment of existing loans. They will be quoted in Hong Kong Stock Exchange from June 2, 2022 and Moody’s rates them as Baa1.
The interest rate of this issuance of notes is lower than the valuation of the secondary market of the notes in stock dollars of CMPort. It’s a rare case of senior dollar note issuance this year achieving a “negative new issue premium.”
The final order book exceeded $2.2 billion and is 4.4x oversubscribed. Investors covered various industries such as banks, funds, asset management institutions and companies, and investment channels covered many regions in Asia and Europe. Investors have broad coverage and a high degree of diversification.
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