The bond will list in Singapore. Apart from helping its parent, the proceeds are expected to be used for capital expenditure, general corporate purposes and possible acquisition of other tyre businesses.
The final yield is 12.5 basis points inside the final guidance figure of 12.5%, according to specialists, and the issue reportedly saw demand just in excess of $1 billion from 125 accounts. Finance Asia quoted one sourced as that the GITI issue is at the higher end of the yield scale.
GITI Tire’s revenue has grown by an impressive 29% CAGR 2003 to 2006, according to Moody’s. Total sales in 2005 amounted to Rmb 9.5 billion ($1.23 billion, £619 million).
34.45% of the investment came from Europe, 45.75% from Asia and 19.8% from offshore U.S. accounts. The latter were reportedly mainly hedge funds.
In terms of investor types, the breakdown came in at 17.15% to banks, 73.85% to funds and 9% to private bankers.