China CITIC Bank International raises US$400 million, 1.33 billion yuan via perpetual bonds

China CITIC Bank International has raised US$400 million and 1.33 billion yuan (US$196.5 million) through a sale of perpetual bonds, according to two term sheets reviewed by Reuters on Wednesday.

• The Hong Kong-based bank sold the US dollar bond at a yield of 5.00 percent and the offshore yuan bond at 2.30 percent, the term sheets showed.
• That compared with initial price guidance of around 5.45 percent for the dollar bond and around 2.90 percent for the offshore yuan bond, according to earlier term sheets.
• Orders topped US$2.9 billion for the dollar bond and 16.3 billion yuan for the offshore yuan bond before pricing, according to a deal update seen by Reuters.
• The securities are additional tier 1 bonds, which are a type of bank debt that helps strengthen a lender's capital base and can absorb losses if the bank runs into serious trouble.
• Moody's is expected to rate the bonds Ba2. China CITIC Bank International is rated A3 with a stable outlook by Moody's and A- with a stable outlook by Fitch, the term sheets showed.
• The bonds can be redeemed by the bank after five years, on July 22, 2031. The proceeds will be used for funding and general corporate purposes.
• China CITIC Bank International did not respond to an emailed request for comment.

Reuters

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