(Bloomberg) -- China Hongqiao Group Ltd., the country’s largest private aluminum producer, sold its first three-year dollar bond since 2021 amid rising demand for Chinese notes issued in the US currency.
The firm priced $330 million of debt guaranteed by several subsidiaries at 7.05%, according to a person familiar with the matter who asked not to be identified. That’s 45 basis points tighter than initial price talk. The order book topped $3.6 billion before 5 p.m. in Shanghai. Proceeds are intended to refinance offshore debt and for general corporate purposes.
Bloomberg News reported in November that Hongqiao was considering a dollar-bond sale in early 2025 at it has a $300 million note due in March. That 364-day 7.75% issue was the company’s most-recent sale in greenbacks. Before that, it priced a three-year bond in 2021.
Investors have shown stronger appetite for Chinese issuers’ dollar bonds of late. Such borrowers in November on average received orders 10.89 times the amount of notes they sold, according to data compiled by Bloomberg, as yields on government debt hit record lows. Big issuers like Alibaba Group Holding Ltd. and Fosun International Ltd. priced dollar notes that month.
--With assistance from Winnie Zhu.
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