China Shanshui Cement Group Co Ltd has sold a US$400m five-year global dollar bond at par to yield 8.50%, the company said Thursday in a stock exchange announcement.
The yield was in line with final guidance. The company had earlier suggested a yield of 8.5% to 8.75%, and initially "mid-8%," people familiar with the deal said. The bond had been expected to be US$300m-$500m in size.
The bond is callable after three years, and has an expected rating of BB- by both Fitch Ratings and Standard & Poor’s Rating Services.
Barclays Capital, Credit Suisse, Deutsche Bank and Standard Chartered were joint lead managers and bookrunners for the Rule 144A/ Reg S offering.
The company said it will use the proceeds to refinance borrowings, expand capacity by building production lines or acquiring production facilities, and for general corporate purposes.