KCRC sets guidance in 10-yr dollar bond sale-source

HONG KONG May 11 (Reuters) - Kowloon-Canton Railway Corp (KCRC), a Hong Kong-based railway operator, set guidance for its sale of up to $700 million in 10-year bonds at around 195-205 basis points over equivalent U.S. Treasuries, a source familiar with the deal said on Monday.

The pricing for the deal, which is due to raise $500-$700 million, is in line with earlier unofficial guidance of low 200 basis points over equivalent U.S. Treasuries provided to investors earlier in the day.

The sale could be priced as early as later on Monday, the source added, declining to be identified because he is not authorised to speak to the media about an ongoing sale.

Citigroup (C.N), Deutsche Bank (DBKGn.DE) and HSBC (0005.HK) (HSBA.L) are the lead underwriters for the transaction.

KCRC's debt is rated "Aa3" by Moody's and "AA-plus" by Standard & Poors. (Reporting by Rafael Nam and Umesh Desai; Editing by Jacqueline Wong)