return while utilising its capital resources
with commensurate risk.
Fujian Yango Group, rated B/B (S&P/
Fitch), has businesses in property
development, education services,
commodities trading and environmental
services, and also has investments in
financial services companies.
› CMIG BONDHOLDERS AGREE
BOOM UP INVESTMENTS, a subsidiary of cash-
strapped China Minsheng Investment
Group, has received investors’ consent for
a one-year extension to its US$500m 3.8%
2019 notes, according to a public filing.
The bonds were issued in August 2016
and were originally due to mature on
August 2.
CMIG, which provided a keepwell deed
for the notes, is planning to sell some
offshore assets to repay the outstanding
principal.
Admiralty Harbour Capital is solicitation
agent and Kirkland & Ellis is the company’s
legal adviser.
CMIG triggered a cross-default on
its offshore bonds in April after a late
repayment on onshore debt.
China Construction Bank was then forced
to repay a US$300m bond that matured in
June under the terms of a standby letter
of credit after Boom Up failed to make the
payment.
CMIG continues to struggle to meet its
repayment deadlines. It repaid the principal
and interest on Rmb1.46bn (US$212m) of
6.5% 210-day onshore notes four days after
the bonds matured on July 18.
› EVER DRAGON HOLDS NON-DEAL SHOW
EVER DRAGON INVESTMENTS GROUP, a wholly
owned subsidiary of APP China Group,
held a non-deal roadshow in Hong Kong on
August 22 via China Citic Bank International,
according to a market source.
The company’s deputy CEO Zhai Jingli
and other senior management have met
fixed income investors.
Hong Kong-incorporated Ever Dragon
in September 2017 issued US$150m 8.75%
two-year Reg S unrated notes at 99.552
to yield 9% via British Virgin Islands-
incorporated Green Fortune Capital. The
notes will due next month.
The deal was APP China’s first US dollar
bond since 2001, when it was embroiled in
Asia’s biggest corporate default alongside its
former parent company Asia Pulp & Paper.
› EXCELLENCE RAISES US$150M
EXCELLENCE COMMERCIAL PROPERTIES on August
9 priced US$150m three-year senior
unsecured bonds at par to yield 6.8%, inside
initial guidance of 7.2% area.
CHINA MINSHENG FINANCIAL HOLDING CORP
has subscribed to US$20m of the bonds,
according to a stock exchange filing.
Excellence Commercial Management is
the issuer of the Reg S unrated notes and
Excellence Commercial Properties is the
guarantor.
The Chinese property developer plans to
use the proceeds for debt refinancing.
Guotai Junan International and Haitong
International were joint global coordinators
as well as joint bookrunners and joint lead
managers with Bank of East Asia, CM Financial,
ABC International and China Minsheng Banking
Corp Hong Kong branch.
China Minsheng Financial Holding said
the subscription will enhance its income
stream and provide a stable investment
return while utilising its idle cash resources
with commensurate risk.› FUJIAN ZHANGLONG SELLS US$500MFUJIAN ZHANGLONG GROUP on August 16
priced US$500m 5.875% three-year senior
unsecured notes at 99.257 to yield 6.15%,
well inside initial guidance of 6.50% area.
The notes have an expected BB+ rating
from Fitch, on par with the issuer.
The Reg S issue drew final orders of over
US$1.19bn from 31 accounts, including
US$794m interest from the leads.
All the notes were allocated to Asian
investors. By investor type, 50% went asset
managers and fund managers, 49% to banks
and financial institutions, and 1% to private
banks.
Zhanglong Group, a local government
financing vehicle in Zhangzhou, Fujian
province, is active in trading, water supply,
real estate and construction.
It plans to use the proceeds for offshore
debt refinancing.
Guotai Junan International and Industrial
Bank Hong Kong branch were joint global
coordinators as well as joint bookrunners
and joint lead managers with BoCom
International, China Citic Bank International,
China Industrial Securities International, Chiyu
Banking Corp, Haitong International, Orient
Securities (Hong Kong) and TF International.› ORIENT SEC GOES DUAL-CURRENCYORIENT SECURITIES, also known as DFZQ, has
priced US$523m-equivalent dual-currency
senior unsecured bonds which will
primarily be used to refinance onshore
debt.
The Shanghai and Hong Kong-listed
Chinese brokerage priced a US$300m
three-year floating-rate US dollar tranche at
six-month Libor plus 125bp, inside initialguidance of 165bp area. It also priced a
€200m (US$223m) 0.625% three-year fixed-
rate euro tranche at mid-swaps plus 125bp,
inside 160bp area guidance.
Final statistics were not available at the
time of writing, but orders were said to be
more than US$2.3bn ahead of the release
of final guidance, including US$1.3bn of
demand from the leads.
The Reg S notes have expected ratings of
Baa3 by Moody’s, on par with the company.
Orient Securities (Hong Kong), Citigroup,
ICBC, CMB Wing Lung Bank, Shanghai Pudong
Development Bank and China Citic Bank
International were joint global coordinators
as well as joint bookrunners and joint
lead managers with Nomura, Industrial Bank
Hong Kong branch, ABC International, Bank of
Communications and Bank of China for both
tranches.› PSBC PLANS ONSHORE, OFFSHORE PERPPOSTAL SAVINGS BANK OF CHINA’s board has
approved a plan to issue up to Rmb80bn of
undated capital bonds in both the onshore
and overseas markets, according to a stock
exchange filing on August 20.
Proceeds from the proposed capital bond
issue will be used to replenish additional
Tier 1 capital.
The Chinese lender will seek shareholder
approval for the plan.› QINGDAO JIMO DISTRICT MAKES DEBUTQINGDAO JIMO DISTRICT URBAN DEVELOPMENT
INVESTMENT has priced a debut US$300m
three-year senior unsecured bond at par to
yield 4.9%, well inside initial guidance of
5.5% area.
The issuer, a local government financing
vehicle for urban development and affordable
housing projects in the Jimo district of
Qingdao, Shandong province, plans to use the
proceeds from the Reg S unrated issue mainly
to refinance onshore debts.
Final statistics were not available at the
time of writing but orders were said to be
over US$740m ahead of the release of final
guidance, including US$670m interest from
the leads.
China International Capital Corp, Bank
of China, Industrial Bank Hong Kong branch
and CEB International are joint global
coordinators as well as joint lead
managers and joint bookrunners with
China Industrial Securities International,
China Securities International, China Minsheng
Banking Corp Hong Kong branch and BoCom
International. Shanghai Pudong Development
Bank Hong Kong branch and CNCB HK
Capital were listed as JBRs at the time of
marketing but not when the deal was
priced.