Yum Brands serves up dim sum bond

While G3 bond issuance remains muted, Hong Kong’s dim sum bond market continues to attract a growing universe of borrowers. The latest addition is Yum Brands, a US-based fast-food company, which yesterday evening priced a Rmb350 million $55 million three-year bond, its debut foreign currency bond.

The small deal size reflected the issuer’s moderate funding requirements, with the target size said to be Rmb350 million. The bonds priced to yield 2.375%, inside initial price whispers of mid-2%. The books were three times covered.

Bank of China and HSBC were joint bookrunners. The deal is the first non-Asian BBB-rated corporate issue. The notes are expected to...