BANK OF CHINA MULTI TRANCHE – USD, SGD, CNH

Issuer  : Bank of China Limited, acting through its Abu Dhabi, HK and  Singapore branches
Issuer Rating : A1 (stable) by Moody’s, A (stable) by S&P, A (stable) by Fitch
Expected Issue Ratings : A1 by Moody’s and A by Fitch
Format : Reg S, Registered form
Issue Type : Senior, unsecured

BANK OF CHINA USD/CNH/SGD MULTI-TRANCHE

MULTI-TRANCHE REG S REGISTERED TRANSATION ANNOUNCED IN USD/CNH/SGD
PRICE GUIDANCE:
USD:     3YR:   T3+140BPS AREA (approx 2.46%)
5YR:   T5+150BPS AREA (approx 3.2%)
10YR:   T10+180BPS AREA (4.2%)
CNH:     2YR:   3.75% AREA
SGD:     4YR    3.00% AREA
SIZE: BENCHMARK IN EACH TRANCHE
TIMING: TODAY’S BUSINESS
EURO ON REVERSE ENQUIRY

4 year SGD deposit at 3% !!! Paying up for SGD cash when even the UOB SGD perpetual bond callable in 11/2019 is yielding 3.62% !

4 year govt bond 1.54%
4 year interest rates 2%

What do you think ?  Senior or Perpetual ?

I am guessing you can leverage alot more off this senior paper too, if you want.

And as for the USD, I believe a >4% coupon would be the highest we have seen for a 10Y senior note this year (but I could be wrong). Still, it would be a good 1% over the Singtel USD 10Y last night.

Aren’t we lucky ?