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Everbright Securities Co navigated cautious market on its first outing to the dollar bond market thanks to the presence of anchors orders and a standby letter of credit (SBLC) from China Merchants Bank's Shanghai branch. As the first BBB rated SBLC backed trade, it has set a benchmark for future issues.
The decision to open books for a Reg S three year bond at 210bp over Treasuries on August 20 came on the back of a three-day roadshow arranged by joint global co-ordinators Bank of China International, China Everbright Securities (HK), Standard Chartered and Wing Lung Bank.
"I think we surprised everyone by coming to the market solo that day because the markets were in such bad shape," said a Hong Kong based syndicate official on the deal.
Hong Kong's benchmark share index fell for a fifth day and ended at its lowest level in eight months on August 20, pulled down by sluggish global markets and pessimism over the Chinese mainland's economy.
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