(Yicai Global) Aug. 30 An affiliate of Great Wall Asset Management Corp., one of China's four major state-owned asset management companies, recently issued USD2 billion worth of bonds in Hong Kong.
China Great Wall International Holdings III Ltd., which is wholly-owned by Great Wall Asset Management's overseas affiliate China Great Wall AMC (International) Holdings Co., offered the bonds, Securities Daily reported. The funds raised will be used to back the foreign business expansion of China Great Wall AMC (International) and Great Wall Asset Management's internationalization strategy.
China Great Wall International Holdings III issued USD500 million of three-year bonds with a rate of 2.750 percent, USD1 billion of five-year bonds with a rate of 3.125 percent and USD500 million 10-year bonds with a rate of 3.875 percent.
Fitch Ratings Inc., Standard & Poor's Financial Services LLC and Moody's Investors Service gave the bonds, which are available on the Stock Exchange of Hong Kong, ratings of A, BBB+ and Baa1, respectively.
All the bonds were ordered within 45 minutes of the trading information disclosure and subscriptions reached the expected scale 30 minutes after trading started, a Great Wall Asset Management insider said. Prospective buyers placed more than USD15 billion worth of orders, making the issuance one of the year's most oversubscribed ones.
Traditional banks, sovereign wealth funds from other countries and regions, and investors from the Middle East, Asia and Europe bought the bonds, the insider said.