FinanceAsia reports that China's state-owned Longyung Power, the country's biggest producer of wind power, has issued a 3 year, $300m bond, with a yield of 3.43%. The bond was under-subscribed; they had targeted $350m.
Buyers were 43% banks, 45% fund managers, 6% central banks and sovereign wealth funds and insurance funds, private banks 4% and insurance and pension funds only 2%. Goldmans Sachs and Wing Lung were the joint global coordinators, with Agriculture Bank of China, Citic Securities, Morgan Stanley and UBS all involved in the sale.
The bonds were actually issued by an arms-length special purpose company named Hero Asia Investment; Longyung Power has a "contractual obligation to keep the bond solvent" but this is not quite a full guarantee. Longyung Power is rated BBB+ by S&P, but the bond itself is expected to be rated BBB-.
