Road King issues 2.2 billion yuan dim sum bond
Road King Infrastructure has priced a 2.2 billion yuan (HK$2.8 billion) dim sum bond. The three-year bond has a yield of 6 per cent.
The issuer develops property and owns toll roads on the mainland. It is rated B1 by Moody’s and BB- by Standard & Poor’s.
Kaiser Choi, an analyst with the brokerage South China Research, said the firm is raising money to boost its land bank for property developments.
Choi said the firm issued a US$350 million bond in September last year, a five-year deal with a coupon of 9.88 per cent. He said the issuer is taking advantage of the relatively low funding costs in yuan that the market now offers.
DBS Bank, HSBC and JPMorgan are leading the offer.