Through intense road shows in Hong Kong, Singapore and London for three days, Minmetals successfully issued 5-year overseas bonds worth USD 500 million and 10-year bonds worth USD 500 million respectively at T5+195 basis points and T10+245 basis points on July 23. These overseas bonds are issued after Minmetals obtained its first public international credit rating (Moody's A3/ Fitch BBB+). In the international capital market, Minmetals has successfully demonstrated its industry leadership and high-quality long-term credit to its investors.
During the offering, Minmetals seized favorable opportunities, especially an easing debt crisis in Greece and a stabilizing domestic stock market. The offering was also confronted with adverse situations, such as a sharp decline in international commodity prices, a decline in Minmetals’s business performance and a high financial leverage. Particularly, it faced competition of direct offering from central enterprises with a higher credit rating on the pricing date. However, thanks to our good road show effect and proper pricing strategy, our bonds have been highly favored by the investors, with a total of USD 2.833 billion worth of orders from over 160 investors obtained. The 5-year bonds were invested by fund investors (20%), banks (75%), and other investors (5%); Asian investors accounted for 96% and European investors accounted for 4%. The 10-year bond investors were invested by fund investors (42%), banks (27%), insurance companies (27%), and other investors (4%). Asian investors accounted for 87% and European investors accounted for 13%. Due to the active and extensive subscription, the prices of the bonds were finally narrowed to T5+195 basis points and T10+245 basis points from initially T5+215 basis points and T10+265 basis points.
The roadmap team was led by CFO Shen Ling. Yu Bo, General Manager of Finance Division; Mo Chunlei, General Manager of Risk Management Division; Chen Xingwu, Deputy General Manager of Finance Division; and Xu Jiqing, Executive Director of MMG; participated in the road shows and book building and pricing.
