28 International Financing Review Asia April 4 2020Webjet’s shares resumed trading last
Thursday and closed at A$2.78, up 1.83%. The
stock was down 70.6% in the year to date.
Proceeds are expected to cover
operational costs and capital spending until
the end of 2020 even if uncertainty created
by the Covid-19 pandemic and severe travel
restrictions continue, Webjet said in a
statement.
Credit Suisse, Goldman Sachs and Ord Minnett
are the lead managers.CHINA
DEBT CAPITAL MARKETS
› SINOPHARM UNVEILS RMB15BN PLANPharmaceutical company SINOPHARM GROUP
has announced a proposed onshorebond offering of up to Rmb15bn
(US$2.11bn) with a tenor of no more than
10 years, according to a stock exchange
filing.
The unsecured bonds are expected to be
issued in tranches and will be listed on the
Shanghai Stock Exchange.
Proceeds will be used for debt
repayment, working capital and compliance
purposes.› SHUANGLONG AIRPORT SEALS CLUB DEALGUIZHOU SHUANGLONG AIRPORT DEVELOPMENT &
INVESTMENT (GROUP) on Tuesday priced a
US$26m two-year 354-day note at par to
yield 4%, in line with final guidance, in a
club deal.
The unrated Reg S bonds are backed by
a standby letter of credit from HUA XIA BANK,
GUIZHOU BRANCH.
Proceeds will be used for business
development within China and to refinance
onshore debt.Central Wealth Securities Investment was
sole global coordinator. It was also joint
bookrunner with Zhongtai International,
CMB Wing Lung, Shun Heng Securities, Lion
International Securities Group and Po Tai
Securities (Hong Kong).› RONSHINE CHINA BUYS BACK BONDSRONSHINE CHINA HOLDINGS has repurchased
US$66m in principal amount of its
outstanding US dollar senior bonds in the
open market, according to a stock exchange
filing.
The buyback was spread across five
notes, comprising US$1m of 11.5% notes
due July 2020, US$40m of 11.25% notes due
August 2021, US$12m of 10.5% notes due
March 2022, US$5m of 8.95% notes due
January 2023, and US$8m 8.1% notes due
June 2023.
The Hong Kong-listed Chinese real estate
company said it will cancel the repurchased
bonds.Panda bonds aid in virus fight
Bonds NDB prints first coronavirus-themed Panda bond from a multilateral financial institutionChina’s Panda bond market has emerged as
an alternative venue for public sector issuers
and companies raising funds to respond to
the coronavirus pandemic.
Last week, NEW DEVELOPMENT BANK, the
multilateral development bank created
by the BRICS countries, raised Rmb5bn
(US$705m) from a Panda bond public
offering to help fund a Rmb7bn emergency
assistance programme loan to the Chinese
provinces of Hubei, Guangdong and Henan,
which will help finance increased expenditure
on public health.
Meanwhile Hong Kong-listed smartphone
maker XIAOMI issued Rmb1bn Panda bonds
in a private placement, with part of the
proceeds to be set aside for expenses related
to epidemic control.
“China’s domestic bond market has
been relatively shielded this time around
compared with the global market, and we’ve
seen a window available for issuers,” a banker
on NDB’s deal said. Bonds that raise funds to
combat the coronavirus have received robust
demand from domestic financial institutions
because of the government’s support
measures, the banker said.
NDB’s deal was the first coronavirus-
themed Panda bond from a multilateral
financial institution, although other
multilateral institutions such as the African
Development Bank and the Inter-AmericanDevelopment Bank have recently issued
coronavirus-themed US dollar bonds.
The offering attracted strong demand from
both onshore and offshore investors, which
allowed it to price the bonds at a tighter yield
than its previous issues, the banker said. “As
a high credit quality multilateral issuer, it
has won support from high-quality offshore
investors including central banks and
sovereign wealth funds.”
The three-year Panda bonds were priced at
par to yield 2.43%, near the tight end of the
indicative range of 2.37%–2.97%.ROBUST DEMAND
The pricing translated to 4bp tighter than
China Development Bank’s three-year
benchmark curve. Most of the bonds in its
previous issue were priced flat to CDB’s curve,
according to the banker.
NDB is rated AA+ by both S&P and Fitch,
while the Panda bonds are unrated. CDB is
rated A1 by Moody’s and A+ by S&P.
Total subscriptions stood at 2.99 times the
issue size. If only orders with a yield of 2.43%
or tighter are included, the deal was covered
twice.
The bonds were issued off a Rmb10bn
programme that NDB has registered with
regulators. It still has Rmb2bn remaining
following the latest issue.
Headquartered in Shanghai, NDB wasestablished by Brazil, Russia, India, China
and South Africa to mobilise resources
for infrastructure and sustainable
development projects in BRICS and other
emerging economies and developing
countries.
For Hong Kong-listed Xiaomi, its Rmb1bn
365-day Panda bonds were priced at 2.78%,
inside the indicative range of 2.6%–3.4%.
The deal, the Cayman Islands-incorporated
company’s first onshore issue, was 2.2 times
subscribed. It was also the first Panda bond
issue from the technology sector.
The bonds were the first tranche under
a Rmb8bn debt programme that it has
registered with regulators.
Xiaomi also plans to use the proceeds for
loan repayments and working capital.
Industrial and Commercial Bank of China
was the lead underwriter and bookrunner on
NDB’s deal. Bank of China, Agricultural Bank
of China and China Construction Bank were
joint underwriters.
For Xiaomi’s deal, BOC was the lead
underwriter and ICBC was joint underwriter.
Earlier this year, sanitary napkins and
baby diapers maker HENGAN INTERNATIONAL
GROUP and gas distribution company CHINA GAS
HOLDINGS issued Panda bonds, with part of the
proceeds slated for working capital related to
epidemic prevention and control.
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