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
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