Svenska Handelsbanken's dim sum bond 5 times oversubscribed -term sheet

HONG KONG Tue Jan 8, 2013 8:59pm EST

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HONG KONG Jan 9 (Reuters) - Swedish lender Svenska Handelsbanken AB completed the sale of a 400 million yuan ($64.3 million) three-year dim sum bond, in which the order book reached 2.5 billion yuan, according to a term sheet seen by Reuters.

The bond, with initial price guidance around the mid-3 percent range, was finally priced at 3 percent due to positive feedback from investors.

Fund and asset managers accounted for 35 percent of the deal, followed by the public sector at 20 percent, banks at 19 percent, corporates at 14 percent, private banks at 8 percent and others at 4 percent.

Hong Kong investors comprised 54 percent of the transaction, while the rest of Asia took 37 percent and Europe contributed 9 percent, the term sheet showed.

The senior unsecured bond is expected to be rated Aa3/AA- (Moody's/S&P), the same as the issuer's rating.

Svenska Handelsbanken AB sold a 170 million yuan two-year dim sum bond priced at 1.4 percent in 2011.

HSBC is the sole bookrunner of the transaction.

The dim sum bond market has been very active since the New Year's holiday, with HSBC Bank (China) Co Ltd and China Guangdong Nuclear Power Holding tapping the market, seeing strong demand from investors. ($1 = 6.2241 Chinese yuan) (Reporting by Michelle Chen; Editing by Edmund Klamann)

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