Economy
Hungary 3-yr Panda bonds price guidance at 4.60%-5.20%
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Books will open tomorrow in China's interbank bond market. The notes, rated AAA by China Lianhe Credit Rating, will also be available to offshore institutional investors via Bond Connect.
China Development Bank's three-year notes, which are quoted at 4.01%, are being used as the onshore comparable for Hungary's Panda bonds.
Hungary will be the first sovereign issuer of Panda bonds this year and the third after Poland and South Korea.
It intends to use the proceeds offshore, converting them into euros to repay debt. It will also use the proceeds to support China's Belt and Road initiative, it says in the prospectus.
Hungary has been looking to do a Panda bond deal since April 2016 when it printed Rmb 1 bn 3-year Dim Sum bonds at par to yield 6.25%.The country has set up a Rmb 3 bn Panda bond programme.
Bank of China is joint lead underwriter and lead bookrunner on the offering with HSBC as joint lead underwriter and joint bookrunner.
China Development Bank's three-year notes, which are quoted at 4.01%, are being used as the onshore comparable for Hungary's Panda bonds.
Hungary will be the first sovereign issuer of Panda bonds this year and the third after Poland and South Korea.
It intends to use the proceeds offshore, converting them into euros to repay debt. It will also use the proceeds to support China's Belt and Road initiative, it says in the prospectus.
Hungary has been looking to do a Panda bond deal since April 2016 when it printed Rmb 1 bn 3-year Dim Sum bonds at par to yield 6.25%.The country has set up a Rmb 3 bn Panda bond programme.
Bank of China is joint lead underwriter and lead bookrunner on the offering with HSBC as joint lead underwriter and joint bookrunner.
