Haitong International Securities Group on September 3 priced the first US dollar bond offering for a Chinese BBB-rated brokerage as it raised US$600 million in a well-supported transaction.

The Reg S five-year deal was priced at 98.809% with a coupon of 3.99% to offer a yield of 4.257%, representing a spread of 255bp over the US treasuries.

The ability of the offshore entity to access the bond market on a standalone basis makes the company in good stead with overseas investors and clients.

The bonds were issued through Haitong International Finance 2014, a direct wholly-owned subsidiary of Haitong International Securities, which guaranteed the transaction. They carried a keepwell deed provided by Haitong Securities Company, enabling the deal to price about 5bp tighter.

Haitong’s previous issuance in October 2013 amounting to US$900 million was backed by a standby letter of credit from Bank of China (BOC), making it a BOC risk versus the standalone credit. That five-year deal also had a keepwell deed from Haitong Securities, a coupon of 3.95% and a re-offer yield of 4.045%. The latest issuance offers diversification away from banks, though it capitalized on the robust demand for China/Hong Kong banks as it garnered an order book in excess of US$4.4 billion from more than 240 accounts.

Proceeds from the transaction will be used for general corporate purposes. Deutsche Bank and Haitong International were the joint global coordinators for the transaction, as well as the joint bookrunners, along with KGI Asia.