ICBC brings $2 billion issue amid slip in Chinese stocks; Korea Development, Swire firm

By Aleesia Forni

Virginia Beach, Sept. 15 – Industrial and Commercial Bank of China Ltd. priced $2 billion of tier 2 capital notes Tuesday amid another plunge in Chinese stocks on concerns of a slowdown in the economy.

ICBC’s new 10-year offering sold at the tight end of guidance and around 20 basis points inside initial price talk.

In other news from that region, Korea Development Bank’s $750 million issue of 3 3/8% 10-year notes, which sold at Treasuries plus 115 bps on Wednesday, was 2 bps tighter at 108 bps bid, according to a market source

BNP Paribas, BofA Merrill Lynch, Credit Agricole CIB, JPMorgan, KDB Asia, Standard Chartered Bank and UBS were the bookrunners.

The Asian secondary market also saw Hong Kong’s Swire Pacific MTN Financing’s newly priced $500 million 3 7/8% 10-year notes firm around 3 bps to 169 bps bid.

The notes sold at Treasuries plus 172.5 bps on Monday, with HSBC Securities and Morgan Stanley acting as the bookrunners.

Swire is a commercial, retail and residential property developer and manager.

ICBC prices

The primary hosted ICBC on Tuesday, which sold $2 billion of 4.875% 10-year tier 2 capital notes at Treasuries plus 275 bps, a market source said.

The issue priced at 99.189 to yield 4.979%.

Guidance was set in the area of Treasuries plus 280 bps following talk in the 295-bps area over Treasuries.

Proceeds from the Rule 144A and Regulation S offering (Baa3/BBB+) will be used to replenish the bank’s tier 2 capital.

Bookrunners are BofA Merrill Lynch, ICBC, Goldman Sachs & Co., HSBC Securities and UBS Securities LLC.

The bank is based in Beijing.

Codelco widens

In Latin American credits, Corporacion Nacional del Cobre de Chile’s (Codelco) recent $2 billion 4½% 10-year offering, which priced on Wednesday at Treasuries plus 250 bps, was around 1 bp wider in the secondary market at 253 bps bid.

BofA Merrill Lynch, HSBC and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes, including capital expenditures and to refinance debt.

Codelco is a Santiago, Chile-based copper mining company.

Chexim notes weaken

In other secondary market news, Export-Import Bank of China saw both tranches of its 2.85% notes due 2020 (expected ratings: Aa3/AA-) trade wider on Tuesday, a market source said.

The $500 million 2.85% notes due 2020, which priced Treasuries plus 130 bps on Wednesday, weakened 3 bps to 147 bps bid.

The sale also included a $500 million 3.8% note due 2025 sold at Treasuries plus 160 bps via coordinators Bank of China, Barclays, Bocom HK Branch, HSBC, JPMorgan and MUFG were the joint global coordinators.

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