Far East Horizon Successfully Issued 300 Million-US Dollar Senior Perpetual Bonds Overseas
June 7, 2017, Far East Horizon successfully issued 300 million-US dollar senior perpetual bonds at fixed prices overseas non-redeemable for the first five years. The bond rate is 4.35%, narrowed 40 basis points compared with the initial pricing interval.
This is the first extract issue for the Company's new and updated medium-term notes and the perpetual securities program, and is also its first time to returnto the overseas capital market by a two-year period. The investors actively subscribed and aroused a positive response.
The bond trading road show was held in Hong Kong and Singapore, where the Company met with about 90 investors in this two-day event, attracting high-quality investors’ pursuit of bond issuance. Subsequent bookings received from more than 230 investors, totaling over $ 5.4 billion in orders, over-subscribed exceeding 18 times. This issuance introduced 85 new investors, including sovereign funds, Chinese and foreign funds and other high-quality orders with a strong influence on the international market. In the final distribution, fund investors accounted for 63%, sovereign investors and insurance companies for 19%, private banks and corporate investors for 10%, and bank investors for 8%.
In addition to traditional Asian investors, the Company attracted a number of well-known offshore US, European and the Middle East investors, and established a long-term cooperation relation with international investors. Also, it was the first time for many well-known institutions to participate in and subscribe to the Company's bonds, which expanded a broader cooperation territory for Far East's global resources and enriched its investor groups.
The bonds gave a great performance on the first trading day after being priced, it quickly rose to 101, and maintained above 100.9 for the day, representing investors’ confidence in the Company's senior perpetual US dollar bond, and their recognition for Far East Horizon’s credit.
Adhering to the "resource globalization" financing strategy, Far East Horizon has spent a long time digging domestic and foreign capital markets, and reduced corporate financing costs through a variety of financing products providing a resource guarantee for the Company’s operation. The bond issuance has optimized the Company's financial structure, and laid a solid foundation for it to continue to expand overseas capital market.