ICBC brings $2 billion issue amid slip in Chinese stocks; Korea Development, Swire firm

By Aleesia Forni

Virginia Beach, Sept. 15 – Industrial and Commercial Bank of China Ltd. priced $2 billion of tier 2 capital notes Tuesday amid another plunge in Chinese stocks on concerns of a slowdown in the economy.

ICBC’s new 10-year offering sold at the tight end of guidance and around 20 basis points inside initial price talk.

In other news from that region, Korea Development Bank’s $750 million issue of 3 3/8% 10-year notes, which sold at Treasuries plus 115 bps on Wednesday, was 2 bps tighter at 108 bps bid, according to a market source

The Asian secondary market also saw Hong Kong’s Swire Pacific MTN Financing’s newly priced $500 million 3 7/8% 10-year notes firm around 3 bps to 169 bps bid.

The notes sold at Treasuries plus 172.5 bps on Monday, with HSBC Securities and Morgan Stanley acting as the bookrunners.

In Latin American credits, Corporacion Nacional del Cobre de Chile’s (Codelco) recent $2 billion 4½% 10-year offering, which priced on Wednesday at Treasuries plus 250 bps, was around 1 bp wider in the secondary market at 253 bps bid.

In other secondary market news, Export-Import Bank of China saw both tranches of its 2.85% notes due 2020 (expected ratings: Aa3/AA-) trade wider on Tuesday, a market source said.

The $500 million 2.85% notes due 2020, which priced Treasuries plus 130 bps on Wednesday, weakened 3 bps to 147 bps bid.

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