Cinda IPO receives US$1.1 b share pledge

A group of 10 investors, including Norway's sovereign wealth fund and Och-Ziff Capital Management Group, have committed to buy about US$1.1 billion into China Cinda Asset Management as part of its Hong Kong initial public offering, people familiar with the matter said yesterday.

Cinda is one of two flotations to be launched today seeking US$2.7 billion between them. The other, Spring Reit - a real estate investment trust whose portfolio includes two office buildings in Beijing's China Central Place - seeks to raise US$229 million.

Cinda, one of China's four managers of bad debt, is seeking to raise US$2.5 billion and has attracted interest from distressed debt investors, hedge funds to China's insurance giants. Together, the so-called cornerstone investors would buy about 45 per cent of the offering, which is set to be Hong Kong's biggest this year.

Norges Bank Investment Management, the world's biggest sovereign wealth fund, has pledged about US$150 million to the offering, its biggest cornerstone commitment, one person familiar with the matter said.

The offer has generated an additional US$5 billion from anchor investors, the person added. Pricing of the Cinda offer is set for December 4.

China Life Insurance and Och-Ziff Capital are each committing US$200 million, while Temasek Holdings' unit Farallon Capital Management has agreed to buy US$100 million, people familiar with the matter said. Oak Tree, the world's largest investor in distressed debt, is pledging about US$53 million, while Ping An Insurance is committing US$75 million to the IPO, they added.