CDB prices new $1 billion benchmark

Huge order book helps equally huge arranger group price CDB at tight end of target.

In an attempt to disprove the adage that too many chefs in one kitchen make a poor stew, the eight strong arranger group for China Development Bank CDB have priced the government-owned bank's $1 billion 10-year bond at the aggressive end of revised price guidance.

Initially marketed to investors at around 90bp over 10-year Treasuries, the arrangers - Barclays, BNP Paribas, Citigroup, Goldman Sachs, HSBC, JPMorgan, Merrill Lynch and UBS - tightened guidance to 86bp to 89bp over after gathering strong momentum early on in the roadshow schedule. The leads finalized guidance at 86bp over as the book size edge toward the $6 billion mark.

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