Ocean Grand sets price for bonds

Mainland-based Ocean Grand Holdings has fixed the price of its US$125 million, five-year bond offering to yield 9.375 per cent, the mid-point of its adjusted indicative range, underwriter ABN Amro said.

The coupon was set at 9.25 per cent and the price was 99.51 per cent of face value.

The deal was the first to price among seven high-yield Asian offerings in the market, and while the final order value - at two times the offered amount - was decent, the adjusted price range showed that investors are selective.

Ocean Grand, which is active in aluminium production, initially marketed the deal at a yield of 9 to 9.25 per cent, but this was adjusted to 9.25 to 9.5 per cent.

'Investors told us that fair pricing doesn't work [with so many deals to choose from] and argued that they needed a little incentive,' said Herman van den Wall Bake of ABN's debt syndicate.