The Hong Kong SAR government made its debut in the international bond market yesterday Thursday, pricing a $1.25 billion issue slightly through its initial indicative range of 75bp to 79bp over Treasuries.
The 10-year transaction was priced at 99.233% on a coupon of 5.125% to yield 5.224%. This equates to 74bp over Treasuries and 25.2bp over Libor. Lead managers were BOCI, Goldman Sachs, HSBC, Merrill Lynch and Morgan Stanley.
Pricing at this level was about 5bp wider than most debt specialists were anticipating at the beginning of roadshows. However, most believe Hong Kong has provided a rare example of an Asian sovereign prepared to...
