Lenovo’s four billion-yuan bonds snapped up; largest offshore RMB issue in 2015 to date

CHINA’s Lenovo Group has sold four billion-yuan (S$800 million) bonds, the biggest offshore RMB (renminbi) issue in 2015 to date.

The five-year benchmark deal which pays 4.95 per cent coupon is one of two biggest non-bank, corporate offshore RMB issues since the offshore RMB bond market opened in mid-2010, said DBS Bank on Thursday.

Demand for Lenovo’s first offshore RMB bond issue was strong, and orders exceeded 20 billion yuan.

Initial guidance for the deal was 5.375 per cent, said Clifford Lee, DBS Bank head of fixed income.

The oversubscription allowed pricing to tighten to a final guidance of around 5 per cent, before settling at 4.95 per cent, he said.

“And it tightened up after, it traded above 101,” said Mr Lee.

The bond – sold at par 100 – was quoted between 101.105 and 101.283 at 4.55pm, according to Bloomberg.

Joint global coordinators for Lenovo’s benchmark issue were Agricultural Bank of China, Citi and DBS Bank.

Joint lead managers and joint book runners were Agricultural Bank of China, Citi, DBS Bank, ANZ, Barclays, BNP Paribas, China Construction Bank (Asia), Credit Suisse, MUFG, Shanghai Pudong Development Bank Co, Ltd, Hong Kong Branch, and Standard Chartered Bank (Hong Kong) Limited.