Citic's first deutschemark-denominated eurobond met with poor demand yesterday.
Lead manager Commerzbank had to buy back 15 million deutschemarks (about HK$63.91 million) of the 200 million-mark five-year issue after failing to place it all in one day.
Dealers said there was still cautious sentiment regarding all emerging market issues, after recent Asian currency turmoil.
The issue, initially priced to yield 62 basis points over the five-year bund, or German government debt, immediately widened to 66 basis points, Commerzbank syndicate officials said yesterday.
It was the first to be launched by the mainland since it established a benchmark in marks last month with a sovereign five-year issue. The 55 basis points launch spread of the sovereign issue was out to about 59 basis points yesterday.
'The demand has been a little bit smaller than we expected . . . but we are still confident,' Commerzbank syndicate official Carsten Samush said.
