Sands China raised $1.95bn via a three-tranche deal. It raised:
- $700mn via a 5Y bond at a yield of 2.343%, 35bp inside initial guidance of T+190bp area
- $650mn via a 7Y bond at a yield of 2.888%, 35bp inside initial guidance of T+215bp area
- $600mn via a 10Y bond at a yield of 3.259%, 35bp inside initial guidance of T+230bp area
The bonds have expected ratings of Baa2/BBB- (Moody’s/S&P). The bonds have a 25bp coupon step-up for each one-notch downgrade below investment grade, up to a maximum of 200bp. Investors have a put option at par if Sands China loses its gaming licence in Macau. The new 5Y bonds are priced 11.7bp tighter to its older 3.8% 2026s that yield 2.46%. The new 7Y bonds are priced 15.2bp tighter to its older 5.4% 2028s that yield 3.04%. The new 10Y bonds are priced 7.9bp wider to its older 4.375% 2030s that yield 3.18%. The pricing on the new 5Y and 7Y bonds is tighter likely as none of the older bonds have a coupon step-up contingent on rating downgrades.
National Bank of Kuwait (NBK) raised $1bn via a 6NC5 bond at a yield of 1.74%, 20bp inside initial guidance of T+115bp area. The bonds have expected ratings of A1/AA- (Moody’s/Fitch). The bonds will be issued by NBK SPC and guaranteed by National Bank of Kuwait. The bonds are callable on and anytime after September 15, 2026, and if not called, will reset to the prevailing SOFR rate plus 105bp. Proceeds will be used for general corporate purposes.
Vakifbank raised $500mn via a 5Y sustainability bond at a yield of 5.625%, ~56.25bp inside initial guidance of 6.125-6.25%. The bonds have expected ratings of B+ (Fitch). The new bonds are priced 26.5bp wider to its existing 6.5% sustainability bond due 2026 that currently yield 5.36%.
CMB Financial Leasing raised $900mn via a two-tranche dollar carbon neutrality-themed green deal. It raised $600mn via a 3Y bond at a yield of 1.313%, 42bp inside initial guidance of T+130bp area, and $300mn via a 5Y bond at a yield of 1.84%, 45bp inside initial guidance of T+150bp area. It also raised €100mn via a 3Y green bond at a yield of 0.581%, 25bp inside initial guidance of MS+125bp area. The bonds have expected ratings of BBB+ (S&P). The dollar tranche received combined orders of over $5.4bn, 6x issue size, while the Euro tranche orders are not available yet. The bonds will be issued by wholly and indirectly owned subsidiary CMB International Leasing Management. CMB Financial Leasing has provided a keepwell, and will also provide liquidity support deed and a deed of asset purchase undertaking.
China Merchants Securities International raised $500mn via a 3Y bond at a yield of 1.295%, 44bp inside the initial guidance of T+130bp area. The bonds have expected ratings of Baa2 (Moody’s), and received orders over $3.9bn, 7.8x issue size. Proceeds will be used for supporting business development, optimizing debt structure and improving operational liquidity. The bonds will be issued by CMS International Gemstone and guaranteed by China Merchants Securities International.
Kuveyt Türk raised $350mn via a 10.25NC5.25 sustainability tier 2 sukuk at a yield of 6.125%, 50-62.5bp inside the initial guidance of 6.625-6.75%. The sukuk has expected ratings of B (Fitch) and will be issued by KT21 T2 Co. Proceeds will be used to finance and/or refinance eligible green and/or social projects in accordance with the bank’s sustainable finance framework. The sukuk are callable on September 16, 2026, and if not called, the coupon will reset to 5Y Treasury plus 533.2bp. Kuveyt Türk is the largest Islamic bank in Turkey by total assets and is 62.2%-owned by Kuwait Finance House.
Nippon Life raised $900mn via a 30NC10 Yankee bond at a yield of 2.9%, 35bp inside the initial guidance of 3.25% area. The bonds have expected ratings of A3/A– (Moody’s/S&P). The bond has a first call date on September 16, 2031, and if not called, the coupon resets every five years starting on the call date to US 5Y Treasury plus initial spread of 260bp and a step-up of 100bp.
Denso raised $500mn via a 5Y sustainability bond at a yield of 1.239%, 25bp inside the initial guidance of T+70bp area. The bonds have expected ratings of A2/A+ (Moody’s/S&P). Proceeds will be used for eligible social and green projects. Toyota Motor owns 24.38% stake in Denso as of March 31.
Anji Qicai Lingfeng Rural Tourism raised $50mn via a 3Y bond at a yield of 4.8%. The bonds are unrated and guaranteed by Zhejiang Anji State-controlled Construction and Development. The issuer is a state-owned company ultimately controlled by the finance bureau of Anji county in China’s Zhejiang province. It mainly engages in the construction business within the Lingfeng Tourist Resort.
New Bonds Pipeline