Swire to sell $300m bonds

A unit of Swire Pacific is selling $300 million in 10-year bonds, a source close to the deal said yesterday, the latest signal of a potential revival in dollar-denominated bond deals from Asian issuers.

Swire Pacific MTN Financing has provided initial guidance of 230-240 basis points (bps) over mid-swaps, and the sale is expected to price early in the week, the source said.

HSBC and JPMorgan Chase are the underwriters for the deal.

The deal follows in the heels of last week's sale of $300 million in five-year bonds by similarly-rated Korea Southern Power Co, which priced its transaction at 208 basis points over mid-swaps, at the tight end of a revised guidance of 208-212 bps.

Datang to set up $2.7b JV

Datang International Power Generation Co Ltd, the mainland's second-largest listed electricity producer, said it has agreed with three partners to set up an 18.78 billion yuan coal-based gas project in Inner Mongolia.

The joint venture (JV) project, due for completion by 2012, will use coal from nearby Shengli to produce natural gas for shipment via pipeling to Beijing, Datang said in a statement late on Friday.

It will produce 4 billion cubic meters of natural gas and other by-products annually and is part of a drive to develop clean energy sources.

Datang will provide 51 percent of the 100 million yuan in initial registered capital of the venture, Keqi Coal-based Gas Co.

Hong Kong dollar lowers

The Hong Kong dollar edged lower against the US dollar yesterday, undermined by interest rate arbitrage. Sentiment was also dampened by a sell-off in the stock market.

The local currency fell as low as 7.7925 per dollar before recovering slightly to 7.7919/20 at 0844 GMT, but still down about 0.03 percent from late Friday trade in Asia.

One dealer said short-dated Hong Kong dollar forwards were trading at a discount of 3 pips per day, which attracted some carry trades.

Arbitrage traders took advantage of the interest rate differential by selling Hong Kong dollars for the US currency.

The Hong Kong currency is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85.

Land auction triggered

A lot of residential land in Sai Kung was successfully triggered for sale yesterday with the bottom price set at HK$10 million.

The land will be put up for auction on May 9 at Tsuen Wan Town Hall. It will be the first land sale in the 2008-09 financial year.

The land is located at Pak Sha Wan, Sai Kung, with a minimum gross profit area (GFA) of 68.9 sq m.

SK Pang Surveyor Company Managing Director Pang Shiu-kee said the land lot will be used to build low-rise residential properties.

He evaluated that the final bidding price will be several times higher than the opening price.

But Pang said size of the land is too small that it could not be used as a barometer to mirror the market sentiment.

China Daily - Reuters

(HK Edition 04/15/2008 page4)