Uni-President China Holdings Ltd (統一中國控股), a China-based subsidiary of Taiwanese food maker Uni-President Enterprises Corp (統一企業) — has issued 1 billion Chinese yuan (US$161 million) of bonds, known as “dim sum bonds,” in Hong Kong, DBS Group said on Saturday.
DBS, a global coordinator of the deal, said it was the biggest yuan-denominated bond sale by any Taiwanese firm in an offshore market.
The issuance attracted subscriptions from about 65 international institutional investors, which meant the bond sale was three times oversubscribed, DBS said.
Bonds with a maturity of three years carried a coupon rate of 3.5 percent, it said.
Market analysts said Uni-President China is expected to use the funds as working capital for business expansion in China.
The bond sale was aimed at lowering the company’s US dollar liability and raising its yuan position at a time when yuan demand is on the rise, market analysts said.
Uni-President China, launched in 1992, is one of the biggest suppliers of instant noodles and beverages in the Chinese market.
DBS said the bond issuance was well-received by the market because investors have significant confidence in Uni-President China’s potential to grow in the Chinese market, where the firm has a broad production base of 23 plants and a comprehensive sales distribution network.
In the first quarter of the year, Uni-President China posted 316 million yuan in net profit, up 26 percent from a year earlier.
Last year, the company recorded 856 million yuan in net profit, up from 312 million yuan in 2011.
Uni-President China has been listed on the Hong Kong stock exchange since December 2007.
Uni-President Enterprise holds a 70.5 percent stake in Uni-President China.