AMTD Completes CITIC Limited US$1bn Senior Bond Offering

On 18th Feb 2020, CITIC Limited (“CITIC” or the “Company”, 0267.HK) successfully priced its US$300m 5-year and US$700m 10-year senior fixed rate bond offering (the “Transaction”). AMTD acted as a Joint Bookrunner and Joint Lead Manager on the Transaction. It is the largest orderbook for a single USD bond transaction by a Chinese issuer in 2020.

This is CITIC’s first USD bond offering since 2018, with the lowest coupon and spread for both a 5-year and 10-year transaction every achieved by CITIC. Company undertook a two day execution, day one being investor phone calls followed by a one-day bookbuild and pricing. The Company announced the IPG at T5+150bps area and T10+170bps area. The strong orderbook allowed a price tightening of 40bps and 37.5bps from IPG to final pricing of T5+110bps and T10+132.5bps . The orderbook was of high quality and grew rapidly to US$10bn at the peak, and up to US$8.4bn at final pricing, amounting to an oversubscription of 8.4 times. It is the largest orderbook for a single USD bond transaction by a Chinese issuer in 2020. Importantly, the new issue repriced CITIC’s secondary yield curve helping to tighten the entire curve.

This is the first transaction completed by AMTD for CITIC and a ground-breaking achievement for AMTD to be able to break into a Central SOE transaction being the first HK-headquartered Investment Bank to act for CITIC, demonstrating AMTD’s ability to act for highest quality issuers and central government entities.