China's No. 2 carrier China Eastern Airlines is raising as much as 50 billion yen ($453 million) via a bond offering in Tokyo in a move that reflects warming relations between Beijing and Tokyo.
China Eastern will issue the debt on the Tokyo Stock Exchange's professionally oriented Pro-Bond market, according to an announcement from the Shanghai-based carrier, becoming the first Chinese commercial enterprise to do so. The float will come in multiple tranches.
Japanese megabank Sumitomo Mitsui Banking Corp. as well as two state-owned Chinese banks will provide credit support.
DBJ Securities, a group company of the state-owned Development Bank of Japan, is serving as one of the joint lead managers. China Eastern, SMBC and other participants anticipate demand from asset managers ahead of the March-end book closings.
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