CNPC underwhelms with $1.85 billion debut bond

CNPC (HK) Overseas’ $1.85 billion bond falls short of the $3 billion expected, while its 30-year bonds rally sharply, prompting criticism of mispricing.
<div class="ArticleImageCaption" style="text-align: left;"> CNPC's headquarters in Beijing</div>
<div class="ArticleImageCaption" style="text-align: left;"> CNPC's headquarters in Beijing</div>
April 25, 2011

CNPC HK Overseas Capital priced a $1.85 billion triple-tranche deal early last Thursday morning, marking its debut international dollar bond.

The bonds are guaranteed by CNPC Finance HK, the subsidiary and sole offshore treasury centre for China National Petroleum Corp CNPC. The company issued a $700 million five-year bond, a $650 million 10-year bond and a $500 million 30-year bond.

Citi, Standard Chartered Bank and ICBC were joint global coordinators and bookrunners. BOC International, Bank of America Merrill Lynch, Deutsche Bank and HSBC were also joint bookrunners.

The $1.85 billion size fell far short of the maximum $3 billion deal that the...

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