COAMC Sets Up USD 2 Billion Overseas Medium Term Notes Scheme
COAMC Sets Up USD 2 Billion Overseas Medium Term Notes Scheme

Following the issuance of 5-year USD bonds (worth USD 600 million) and 3-year RMB bonds (RMB 2.5 billion) in September 2013 and January 2014 respectively, COAMC set up a USD 2 billion overseas Medium Term Notes scheme, of which USD 1 billion worth of bonds have completed pricing and already been issued.

COAMC became the first of the PRC’s four major public AMCs to successfully set up such Medium Term Notes scheme. The scheme marks a significant step forward towards COAMC’s goal of achieving more flexibility in its financing in the overseas bond market. Moody and Fitch gave the scheme the ratings of “AAA” and “A-“, respectively.  

Charming Light Investments Ltd., a company wholly-owned by COAMC’s subsidiary China Orient Asset Management (International) Holding Limited, issued the first batch of bonds for the scheme, including a 5-year bond (USD 600 million) and a 10-year bond (USD 400 million). BOC International was the global coordinator for the bonds. The joint book-runners included BOC International, Bank of Communication Hong Kong, ICBC Asia, Morgan Stanley, and Standard Chartered Bank.

The issuance took less than one day between announcement and pricing. The bonds were oversubscribed by 10 times. The popularity of the bonds among investors proved that COAMC has been well recognized by the overseas bond market for its credibility and good business performance.