Books on Sinopec's five tranche USD bond around USD20bn -sources

Wed Apr 2, 2014 12:43pm EDT

NEW YORK, April 2 (IFR) - China Petrochemical Corp, or Sinopec, is well on its way to pricing one of the biggest ever dollar bonds issued by an Asian corporate with books for the five-tranche transaction already around USD20bn, banking sources said on Wednesday.

The company is looking to issue three-, five- and 10-year fixed rate bonds, and three- and five-year floating rate notes that are all expected to be benchmark in size.

Guidance on the three-year fixed is Treasuries plus 95bp area, on the five-year fixed plus 105bp area and on the 10-year plus 160bp area. Area means plus or minus 5bp.

The guidance levels seem to carry only a few basis points in terms of new issue concessions compared to Sinopec's own outstanding issues.

Its USD1bn 2.75% May 2017 note is quoted to yield 150bp over 2-year US Treasuries, or a G-spread of 98bp, a USD750m 2.5% October 2018 bond is quoted to yield 82bp over Treasuries, or a G-spread of 101bp, and a USD1.5bn 4.375% October 2023 bond is quoted to yield 160bp over Treasuries, or a G-spread of 165bp.

The notes, expected to price later on Wednesday, are guaranteed by China Petrochemical Corporation. Sinopec has hired Citigroup, HSBC, Goldman Sachs, CCB International and JP Morgan as joint global coordinators as well as joint bookrunners and joint lead managers alongside BOC International, Morgan Stanley, UOB, Scotiabank, CBA, SG CIB, RBS and CMS (HK). (Reporting by Shankar Ramakrishnan; Editing by Natalie Harrison)

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