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Cnooc sells record $4B debt amid high demand
By on May 3, 2013
Nathan Andrada – Fourth Estate Cooperative Contributor
Shanghai, China (4E) – Cnooc Ltd. set a record for the biggest bond offering by a Chinese company by selling $4bn of debt on Thursday, amid a debt boom in the Asia-Pacific region.
Investors worldwide rushed in to bid for about $23.8bn of notes especially asset managers, which became the biggest group of buyers for all four tenors, according to a source familiar with the matter although requested not to be identified because the details are private. Investors from the U.S. account for 79 percent of the 10-year issue, said the source.
Investor appetite for the bonds was high as they offer relatively high yields even as many see it as a safe investment since the company is owned by the Chinese government. But because of high demand, the yields were actually lower than most underwriters had initially estimated.
In a filing to the stock exchange dated Friday, Cnooc estimates that aggregate proceeds will be about $3.94bn for the four-part sale excluding commissions and fees.
The sale by the China-based oil and natural gas explorer is the biggest dollar-denominated offering in Asia outside Japan since Hutchison Whampoa Ltd.’s $5bn sale in November 2003, according to Bloomberg data.
In 2013, Asian governments and companies, excluding Japan, have already issued bonds of more than $74bn in U.S. dollars, yen and euros, according to Dealogic data.
So....why did these debentures sell so quickly..... Because investors know. china is a captive market sold into by Chinese government owned companies. The analysts will say what they need to to scare off investors.
lol... Your funny catchacold!