Volvo issues 1 bln yuan 3-yr dim sum bond at 3.8 pct-term sheet

HONG KONG Thu Nov 15, 2012 8:34pm EST

HONG KONG Nov 16 (Reuters) - Volvo AB, the world's No.2 truck maker, completed its sale of a 1 billion yuan ($160 million) three-year offshore yuan bond at a coupon of 3.8 percent, according to a term sheet seen by Reuters.

The senior unsecured bond is expected to be rated BBB/Baa2 (S&P/Moody's) and will be listed on the Luxembourg Stock Exchange, the term sheet showed.

The order books of the bond exceeded 2.4 billion yuan with orders from 73 accounts. Hong Kong and Singapore investors comprised 52 percent and 24 percent, respectively, while Europe-based buyers took 10 percent.

Fund and asset managers accounted for the biggest part with 63 percent, followed by private banks at 21 percent and banks at 13 percent.

BNP Paribas and HSBC are the arrangers of the deal.

The offshore yuan bond market has been steady after recent volatility, attracting some foreign issuers to the fledgling market.

Indian lender ICICI Bank and French automaker Renault S.A both re-tapped their dim sum bonds with new issues of 500 million yuan in the past week. ($1 = 6.2334 Chinese yuan) (Reporting by Michelle Chen)