Clifford Chance has advised China Minmetals Corp on its sale of a 2.5 billion yuan ($402 million) three-year dim sum bond.
The senior unsecured offshore yuan bond was finally priced at 3.65 percent, and the proceeds will be used for general corporate use.
Hong Kong partner Connie Heng and Shanghai-based Jean Thio led the Clifford Chance team on the transaction.
Linklaters advised the joint lead managers and bookrunners – HSBC, DBS Bank, Industrial and Commercial Bank of China (Asia), Agricultural Bank of China International and Standard Chartered Bank.
China Minmetals was the fourth company to tap the 25 billion yuan quota granted by China’s National Development and Reform Commission to five mainland companies last year to issue yuan bonds offshore.
The latest comparable issue to China Minmetals’ bond is Huaneng Power International’s three-year dim sum bond sold in January with a coupon of 3.85 percent, Reuters reports.
Analysts say lack of supply and relatively higher yields in the dim sum bond market will continue to attract more investors, especially as confidence in China’s economy has improved, supporting the yuan currency.
Dim sum bond issuance has amounted to 46.5 billion yuan in the year to date, up about 30 percent from the same period last year, according to Thomson Reuters statistics.
Kanishk Verghese is North Asia journalist at ALB. Follow us on Twitter: @ALB_Magazine.
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