The Asian conglomerate has target financial firms including private banks as part of its acquisition and diversification strategy.

Hong Kong-headquartered group, Fosun, which has bought European private banking assets and other financial bodies, is raising $300 million via the issue of a senior guaranteed bond with a three-year maturity. The bond has been priced, it said yesterday. 

The conglomerate said investor interest was “strong” with the order book reaching $300 million within the first two hours of book-building. Final orders reached $800 million. The original guidance price of 5.500 per cent was revised with the deal pricing at par at a coupon of 5.375 per cent.

Fosun said proceeds will be used to refinance some existing debts and for working capital and general corporate purposes.  It was assigned a credit rating of BB (stable) by S&P Global Ratings.

In recent years Fosun, along with other mainland China and Hong Kong-based groups, has sought to buy private banking assets as part of a diversification strategy. It has purchased Hauck & Aufhäuser, the venerable German private banking and financial firm, for example. Meanwhile, in 2015 Fosun launched a financial platform for its investment and asset management business in Russia and neighbouring countries.

Fosun was founded in 1992, and its activities span a variety of sectors, including financial services and wealth management. Not all of its bids have been successful; in 2015 it pulled out of an attempt to acquire BHF Kleinwort Benson. (See story here.)

Credit Suisse and Fosun Hani acted as global coordinators on the bond pricing. Credit Suisse, Fosun Hani, CITIC CLSA Securities and CNCB Hong Kong Capital acted as joint lead managers and joint book-runners, yesterday’s statement added.