SF Holding Targets 10 Billion Yuan in First Dim Sum Bond Sale
SF Holding plans to raise up to 10 billion yuan in its first offshore bond offering. The logistics giant joins a record-breaking wave of issuers tapping the dim sum market for cheaper funding.
SF Holding Co aims to raise up to 10 billion yuan through its first offshore bond sale. The Chinese delivery firm will issue three-year and five-year dim sum bonds. This marks a return to the offshore market after nearly five years. The company has mandated banks for the transaction. Details may change as discussions continue.
The move aligns with a broader trend of issuers seeking cheaper funding in the offshore yuan market. Sovereign and corporate borrowers have sold 863 billion yuan in dim sum bonds this year. This represents a 35 percent increase from the same period last year. Data compiled by Bloomberg confirms this is a record high for the period.
Record issuance drives market growth
Low borrowing costs and Beijing policy support have expanded the channel for mainland capital. This has deepened the pool of demand in the dim sum market. Both first-time and returning issuers are participating. H World Group raised 3.35 billion yuan in its first dim sum bond offering earlier this month.
SF shifts from dollar to yuan
SF previously relied on the US dollar market for offshore financing. A successful deal would mark its first dim sum bond issuance. The company currently holds 800 million dollars in bonds due in November. The firm has a market capitalization of approximately 24.4 billion dollars.
Funding strategy for logistics giant
According to GN auto markets/bonds: debt markets, SF is tapping this specific debt segment. The transaction involves three-year and five-year tenors. Market conditions will determine the final structure. The company remains one of China's largest express delivery providers.
