Bright Food has successfully priced €800 million in five-year bonds for negative new issue premium

Publisher:Xu Jing 、 Kay     views:

Bright Food successfully issued 800 million euros of five-year bonds on July 22nd.


This deal is Bright Food’s fifth overseas bonds issuance, and the fourth euro-denominated bonds issuance. As the first Eurobond issued by a Chinese non-financial institution in 2020, this transaction has opened the euro-bond market for Chinese enterprises in 2020.


Bright Food successfully priced a five-year €800 million high-grade unsecured bonds with fixed rate, as Mid Swap (benchmark mid-swap rate) +215 basis points (1.75% coupon rate), which was significantly narrower than the initial price guidance and achieved a negative new issue premium. The order book peaked at 3.3 billion euros, more than four times of the total issuance, attracting over hundred quality investors from Europe and Asia, some of whom subscribed for multiple times.


In order to ensure the smooth issuance, Bright Food made adequate preparations in the early stage of the project. Due to the COVID-19 pandemic, the Group communicated with investors in the early stage of new bonds issuance in the form of “teleconference roadshow”, which was highly recognized.


The negative new issue premium of Bright Food is beyond expectation, which reflects investors’ recognition of its healthy and steady main business development, credit fundamentals and brand influence in recent years.


Bright Food has also received investment-grade recognition and stable outlook from three international rating agencies thanks to the high defensiveness of food sector and its stability of crossing business cycle.


Through this issue, Bright Food has further expanded its international financing channels, as well as improved its debt structure and international image.



Previous:World Integration, Cooperation Delivery, Win-Win Future Next:Seeking Opportunities in Crisis and Acting as Goalkeeper against Overseas Risks