ASIA-PACIFIC
CHINA
JIANGXI COPPER PLANS DOLLAR BONDSChina’s largest copper producer JIANGXI
COPPER plans to issue US dollar bonds to raise
up to US$1bn, according to an exchange
lLING
The issuer of the proposed bonds will be
either the company itself or a special
purpose vehicle established in Hong Kong.
Jiangxi also announced that it would offer
a guarantee on up to US$1.8bn of credit
facilities for its wholly owned subsidiaries,
Jiangxi Copper Hong Kong Company and
Jiangxi Copper (Hong Kong) Investment
Company. The former will be assigned
US$200m and the latter the remainder.
Jiangxi Copper, listed in Hong Kong and
Shanghai, will seek approval for the plan
at its annual meeting, which is scheduled
FORû*UNEû ûACCORDINGûTOû2ElNITIVûDATADAZHONG PLANS ONSHORE,
OFFSHORE BONDSSHANGHAI DAZHONG PUBLIC UTILITIES (GROUP) plans
to issue onshore and offshore bonds with a
tenor of no more than 10 years to raise up to
Rmb9bn (US$1.27bn).
Proceeds will be used to fund business
operations or construction projects, or both,
repay debt and supplement working capital.
The plan is subject to shareholder and
regulatory approvals.
Shanghai Dazhong, which is listed in
Hong Kong and Shanghai, is primarily
engaged in urban transport, city gas, and
environmental and municipal businesses.
It has a AAA domestic rating from China
Chengxin.CHINA SINGYES REPURCHASES 2022SCHINA SINGYES SOLAR TECHNOLOGIES HOLDINGS has
repurchased US$18.4m of senior notes in
the open market that were issued after a
debt restructuring which it completed in
December.
The company also received US$240,125
of unclaimed senior notes from the
clearing system, bringing the total amount
it will write down to US$18.64m.
The notes were issued as part of a
restructuring plan that was conducted
with help from state-owned Shuifa Group
after Singyes defaulted on its offshore
bonds in October 2018. Creditors have
received a combination of cash and new
bonds under the scheme.
The total issue size of the bonds with a
three-year tenor was US$414.9m. The
bonds pay a cash coupon of 2% and
payment-in-kind interest of 4%.
The workout came after Water
Development Holding, a subsidiary of
Shuifa Group, agreed to subscribe to
HK$1.6bn (US$206.3m) of shares in
Singyes, giving it a 66.92% stake in the
Hong Kong-listed curtain wall installation
and solar engineering company.
The Shandong Provincial State-owned
Assets Supervision and Administration
Commission controls Shuifa Group, which
is involved in water projects,
environmental and renewable energy.HONG KONG
CHINA STRATEGIC TAKES LOSS
ON LOGANCHINA STRATEGIC HOLDINGS expects to take a
loss of about US$231,000 on a recent
disposal of part of its holdings in Logan
Property Holdings’ US dollar bonds,
ACCORDINGûTOûAûSTOCKûEXCHANGEûlLINGThe Hong Kong-listed investment
holding company on April 2 sold US$2m of
Logan’s 5.25% February 23 2023 notes and
US$1m of its 6.50% July 16 2023 notes in
the secondary market for US$2.790m and
US$952,000, respectively.
In light of volatile market conditions,
the company said the disposal could
“provide immediate liquidity to
improve its cash positions” and “reduce
ITSûEXPOSUREûTOûlNANCIALûMARKETû
mUCTUATIONSv
Proceeds will be used as general working
capital.
Post disposal, the company still
holds US$9m in face value of the
5.25% 2023s, but no longer any of
the 6.50% 2023s.INDIA
FUTURE RETAIL FACES MOUNTING
COC RISKFitch has followed in S&P’s footsteps by
downgrading India’s FUTURE RETAIL and its
debut US dollar bond on heightened
change- of-control event risks.
The ratings of both the retailer and the
bonds were cut to B– from BB and placed
on Negative Watch due to liquidity risks
stemming from loans backed against
pledged shares taken by its controlling
shareholders.
Future Retail’s US$500m 5.6% note due
2025 requires the company’s controlling
shareholders – Future Corporate Resources
and Future Coupons – to maintain a
combined 26% stake. Future Corporate
Resources owns 41.1% of Future Retail
directly and 9.8% via a joint venture with
Amazon, Future Coupons.
The sharp decline in Future Retail’s
share price, however, has prompted
lenders to the controlling shareholders to
demand more shares as collateral,
according to Fitch.
The ratings agency said certain
lenders were attempting to invoke pledges
equal to 8% of Future Retail’s total share
capital, while nearly all of Future
Corporate Resources’ 41.1% stake has been
pledged.
A change of control is triggered
when promoter ownership falls below
26% and there is also a ratings
downgrade.
S&P downgraded the company and the
bonds to B– from BB– in late March.
Future Retail’s share price has dropped
almost 80% this year, with most of the
losses posted in March. As of April 2,
Future Retail’s market capitalisation stood
at Rs39bn (US$513.8m), meaning FutureInternational Financing Review April 4 202068ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues US$(m) (%)Note: all deals submitted as of 2pm GMT as of Mar 31 2020
Excluding equity-related debt.
Source: Refinitiv SDC code: L11 JP Morgan 70 13,237.63 7.1
2 Citigroup 61 12,414.00 6.6
3 HSBC 93 10,903.76 5.8
4 Standard Chartered 59 10,672.53 5.7
5 Deutsche Bank 39 8,615.69 4.6
6 BNP Paribas 37 8,013.53 4.3
7 BofA Securities 35 7,440.72 4.0
8 Goldman Sachs 35 7,174.29 3.8
9 Credit Suisse 47 7,145.47 3.8
10 Morgan Stanley 28 7,006.11 3.7
Total 332 187,745.05ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2020–31/3/2020
Asia-Pacific
Managing No of Total Share
bank or group issues US$(m) (%)Excluding equity-related debt.
Source: Refinitiv SDC code: L41 HSBC 74 7,006.38 7.7
2 Standard Chartered 45 4,565.02 5.0
3 Credit Suisse 39 4,211.06 4.6
4 Citigroup 34 3,934.96 4.3
5 UBS 33 3,805.60 4.2
6 Bank of China 46 3,430.72 3.8
7 Credit Agricole 29 3,115.40 3.4
8 DBS Group 34 2,916.80 3.2
9 JP Morgan 30 2,877.98 3.2
10 Citic 46 2,767.54 3.0
Total 208 91,140.898 IFR Emerging 2327 p 67 - XX.indd 68 03 / 04 / 2020 19 : 21 : 02