Power Construction Corporation of China raised $500mn via a Perpetual non-call 5Y (perpNC5) bond at a yield of 3.08%, 47bp inside initial guidance of 3.55% area. The bonds have an expected rating of BBB and received orders over $2.4bn, 4.8x issue size. Asia bought 89% and EMEA and offshore US 11%. Fund/asset managers received 34%, banks and financial institutions 32%, corporates 25%, and insurers/sovereign wealth funds/private banks 9%. The perps have a coupon reset at the 5Y US Treasury yield plus 225.6bp plus a 300bp step-up if not called on the first call date. The perps will be issued by Powerchina Roadbridge Group and guaranteed by Power Construction Corporation of China. The newly issued perps were priced flat as compared to their 3.45% Perps callable in September 2025 (issued by Dianjian Haiyu) which currently yield 3.07%.

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