year senior unsecured bonds at par to yield
4.37%, inside initial guidance of 4.70% area.
The deal came just a month after a
chunky US$800m US dollar bond issue.
Indirect majority-owned subsidiary
Hanhui International is the issuer of the
newly priced bonds with a guarantee from
Shandong Guohui. The Reg S notes have an
expected BBB+ rating from Fitch.
Proceeds will be used to refinance onshore
and offshore debt, for project construction
and general corporate purposes.
Central Wealth Securities Investment, Zhongtai
International and Bank of China were joint
global coordinators on the transaction.
They were also joint bookrunners and joint
lead managers with China Minsheng Banking
Corp Hong Kong branch, Industrial Bank Hong
Kong branch, China Citic Bank International,
BOC International, Bank of East Asia, Silk Road
International, Huatai Financial Holdings (Hong
Kong), Haitong International, CMB International,
Everbright Sun Hung Kai, ABC International,
Shanghai Pudong Development Bank Hong Kong
branch, China Everbright Bank Hong Kong
branch and CMBC Capital.
Established in 2016, Shandong Guohui
has a strategic role in the reform and
restructuring of SOEs in Shandong
province. It owns equity in SOEs involved in
transportation, engineering, and financial
and operating leasing.
In July, it priced a US$800m three-year
senior unsecured bond at par to yield
4.37%, 43bp tighter than initial 4.80% area
guidance.
Shandong Guohui has a US$1.5bn
offshore debt issuance quota from the
National Development and Reform
Commission. Following the latest bond
issues, it has an unused quota of US$400m.
› TIBET LEASING MAKES SMALL DEBUT
TIBET FINANCIAL LEASING, rated Ba2 by Moody’s,
on August 20 priced a tiny US$27m debut
bond issue through a private placement,
according to a person familiar with the
situation.
The three-year Reg S senior unsecured
bonds were priced at par to yield 7.8%.
The deal was far smaller than the up to
US$300m size indicated in an update sent
to investors on August 8.
“Demand for the deal was weak,” the
person said. He said he was not sure
whether the issuer would try a bigger size
later but had not yet heard of such a plan.
Tibet Financial Leasing on August
1 announced a plan to issue US dollar
bonds and hired seven banks as joint lead
managers and joint bookrunners. It held
roadshows in Singapore and Hong Kong
earlier this month.
China Securities International and BNP
Paribas were joint global coordinators
as well as joint lead managers and joint
bookrunners with Haitong International and
China Everbright Bank Hong Kong branch.
Tensant Securities, Tellimer and Soochow
CSSD Capital Markets (Asia) were listed in
the mandate but were not involved in the
private placement.
Established in May 2015, Tibet Financial
Leasing is 48.5%-owned by Tunghsu Group
and 29.3%-owned by the Government of
the Tibet Autonomous Region via the Tibet
Autonomous Region Investment Co, Bank
of Tibet, and Tibet Autonomous Region
State-owned Assets Management Co,
according to Moody’s.› ZHENRO SELLS MORE BONDSZHENRO PROPERTIES GROUP, rated B1/B/B, has
reopened its 9.15% senior notes due March
8 2022 for a tap of US$110m, bringing the
total outstanding to US$310m.
The additional notes were sold at 101.341
to yield 8.55%, inside initial guidance of
8.70% area.
The Hong Kong-listed Chinese real estate
company plans to use proceeds for debt
refinancing.
The original notes were priced on March
1 at 97.968 to yield 9.95%. The three-year
non-call two Reg S notes are rated B2/B–
(Moody’s/S&P).
Standard Chartered Bank, CMB International
and Haitong International were joint global
coordinators, joint lead managers and joint
bookrunners on the reopening.› CHINA ORIENT ISSUESCHINA ORIENT ASSET MANAGEMENT, one of China’s
big four asset management companies,
issued Rmb10bn dual-tranche financial
bonds on August 22, according to a public
filing.
A Rmb5bn three-year was priced at 3.4%,
near the tighter end of initial guidance area
of 3.1%–4.1%, while a Rmb5bn 10-year came
at 4.33%, near the middle of initial guidance
set at 3.9%–4.9%.
The three-year tranche was 3.43 times
oversubscribed and the 10-year tranche
received 2.65 oversubscription.
Dongxing Securities was the lead
underwriter and lead bookrunner. Bank of
China, Agricultural Bank of China, ICBC, Bank of
Communications, Postal Savings Bank of China,
China Merchants Bank, Industrial Bank, Citic
Securities, China Securities, CICC and Guotai
Junan Securities were joint underwriters.
Proceeds will be used to conduct debt-
to-equity swaps and disposals of non-
performing assets.
China Chengxin has assigned a AAA
rating to both the issuer and the bonds.› MENGNIU DAIRY ISSUES PANDA NOTESHong Kong-listed CHINA MENGNIU DAIRY has
issued Rmb1bn 180-day Panda notes at
2.96%, near the middle of initial guidance of
2.6%–3.2%, according to a public filing.
The issue is part of a Rmb10bn
programme the company registered with
financial regulators.
Bank of China was the lead underwriter
and lead bookrunner, while Pingan Bank was
the joint underwriter.
China Chengxin has assigned a AAA
rating to both the issuer and the bonds.
The company will use the proceeds to
replenish capital and for general corporate
purposes.SYNDICATED LOANS
› ASE TECHNOLOGY UNIT TAPS US$300MShanghai-listed Universal Scientific
Industrial (Shanghai) has launched a
US$300m-equivalent three-year term loan.
Standard Chartered (Hong Kong) is the
mandated lead arranger and bookrunner
of the financing, which is also available in
euros and has an average life of 2.6 years.
The interest margins are 95bp over Libor
and 115bp over Euribor.
Banks have been invited to join with
commitments of US$50m-equivalent for
the mandated lead arranger title and an
upfront fee of 27bp, tickets of US$30m–
$49m-equivalent for the lead arranger title
and a fee of 20bp and commitments of
US$15m–$29m for the arranger title and a
15bp fee.
The all-in pricing is 105.4bp, 102.7bp and
100.8bp for banks lending US dollars, and
125.4bp, 122.7bp and 120.8bp for lenders
providing euros at the three commitment
levels respectively.
USI is providing a letter of comfort, while
its Hong Kong-incorporated subsidiary,
UNIVERSAL GLOBAL TECHNOLOGY, is the borrower.
Funds are for general corporate
purposes including future investments and
acquisitions.
Taiwanese semiconductor packaging and
testing company ASE Technology Holding,
formerly ASE Industrial Holding, is the
ultimate parent company of USI.
A bank presentation will be held on
August 26 in Taipei. Commitments are due
by September 20.
USI provides manufacturing services for
electronic devices and modules.› BEIJING HAINACHUAN TO INCREASE LOANChinese state-owned Beijing Hainachuan
Automotive Parts is looking to increase