18 January 2019

LGFV sells US-dollar bond as RMB costs rise, Bloomberg says

Shanghai Chengtou Corp. sold the first onshore dollar-denominated bond by a local-government financing vehicle (LGFV) in China as yuan borrowing costs surge, Bloomberg News reported Thursday. The funding unit issued US$200 million of AAA rated notes with a 3.3494 percent coupon on Dec. 27, the report said, citing a statement posted on the website of the Shanghai Clearing House on Dec. 31. The bond was priced to yield 300 basis points more than six-month Libor, it said.

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