China National Chemical Corporation (ChemChina) priced a 6-tranche transaction yesterday, comprising of US dollar-denominated bonds in 5 tenors as well as a Euro-denominated bond. Leading up to the sale, the state-owned company’s US dollar curve sold off as investors let go of their holdings to made way for the new issue. The US$1 billion 4.125% bonds due 2027 dropped 1% to a cash price of 93.9/94.2, the US$1.5 billion 3.5% bonds due 2022 were off by half a point to 96.4/96.6, while the US$500 million 3.0% bonds due 2020 were four-tenths of a point lower. The SOE’s €700 million bonds due 2021 saw the least volatility among its most recent issues, trading steady at MS+177bp/166bp.
With an order book in excess of US$4.5 billion, including interest from the joint lead managers, ChemChina was able to tighten pricing from guidance of T+200bp area, T+220bp area, T+235bp area and T+250bp area for the marketed 3-year, 5-year, 7-year and 10-year notes, respectively. The long 4-year euro bond was indicated at MS+165bp area. US$1 billion of 3-year bonds were priced at T+182.5bp, US$1.3 billion of 5-year bonds were priced at T+202.5bp, US$800 million of 7-year bonds were priced at T+220bp, US$1.75 billion of 10-year bonds were priced at T+235bp and €1.2 billion of 4-year bonds were priced at MS+150bp. The chemicals company also priced a small US$100 million tranche of 30-years bonds at 5.5% and contemplated issuing a 8-year eur-denominated benchmark, which ultimately did not materialise.
The issuer is rated Baa2 (Negative) by Moody’s, BBB (Stable) by S&P and A- (Stable) by Fitch.