legend-issues-domestic-bond-in-tough-conditions

Legend issues domestic bond in tough conditions

Conglomerate Legend Holdings raises $293 million through a seven-year renminbi-denominated bond, while a challenging market environment prompts the PBOC to cut rates again.

Mukul Munish

October 09, 2008

Chinese conglomerate Legend Holdings, the parent company of Hong Kong-listed computer manufacturer Lenovo, has sold Rmb2 billion $293 million worth of bonds with a seven-year maturity, says a source close to the deal. The issue, priced at par, has a coupon of 5.87%, which works out to 120bp over Shibor or the Shanghai interbank offered rate. It is denominated in renminbi and targeted at local investors only.

The deal was launched on Monday October 6 and by midday Tuesday was oversubscribed 16.5 times with Rmb32.9 billion worth of investorsÆ money pouring in û an impressive performance in a tough market environment. UBS acted as the sole bookrunner.

The source says a third of the...

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