SYNDICATED LOANS
› CROSS RIVER RAIL PLAN SELL-DOWN
Banks providing a A$2.3bn (US$1.62bn) loan
for the Brisbane-based CROSS RIVER RAIL public-
private partnership project are planning a
limited sell-down.
Eleven banks provided the loan, which is
expected to launch soon. The lenders are:
BBVA, Credit Agricole CIB, Intesa Sanpaolo, Kfw
IPEX-Bank, MUFG, Norinchukin Bank, Societe
Generale, Standard Chartered, Sumitomo Mitsui
Banking Corp, Sumitomo Mitsui Trust Bank and
HSBC, according to LPC data. The financing
was signed on June 30.
A consortium comprising Australia-listed
construction company CIMIC Group and its
units Pacific Partnerships, CPB Contractors
and UGL, as well as independent fund
manager DIF, Dutch contractor BAM
International and Italian construction
company Ghella won the bid for the
Tunnel, Stations and Development PPP of
the Cross River Rail project in April.
The project also includes a Rail,
Integration and Systems package, which
will be developed by a separate consortium,
but not under a PPP framework.
The entire Cross River Rail project will
cost A$5.4bn to develop and is expected to
start operating in 2024. Once completed,
the 10.2-kilometre railway line will run
from Dutton Park to Bowel Hills and
include a 5.9-kilometre twin tunnel
running under the Brisbane River and the
central business district.
› CROMWELL PROPERTY SEEKS €225M
Real estate company CROMWELL PROPERTY GROUP is
seeking a €225m (US$254m) three-year loan.
Coordinator Goldman Sachs has invited
lenders to submit indicative pricings.
Funds are for general corporate purposes.
In September 2018, Cromwell Seven
Hills, a unit of Cromwell Property, raised a
A$233.935m 15-month senior loan. Credit
Agricole CIB, Shinsei Bank and Westpac
Banking Corp were the lenders on that
transaction, according to LPC data.
As at December 31 2018, ASX-listed
Cromwell had a direct property investment
portfolio in Australia valued at US$2.5bn
and total assets under management of
US$11.5bn across Australia, New Zealand
and Europe.CHINA
DEBT CAPITAL MARKETS
› BIG BOOK FOR GUANGZHOU R&FGUANGZHOU R&F PROPERTIES (Ba3/B+/BB–) last
Thursday priced a US$450m five-year non-
call three senior notes offering at par to
yield 8.125%, inside initial guidance of
8.625% area.
Orders were over US$3.6bn from more
than 190 accounts. Asia took 95% of the Reg
S bonds and EMEA 5%.
By investor type, fund managers booked
60%, private banks and corporates a
combined 39%, and banks and insurers 1%.
Easy Tactic will issue the notes, while
R&F Properties (HK) and certain offshore
subsidiaries of Guangzhou R&F Properties
will guarantee them. Guangzhou R&F
Properties is providing a keepwell deed
and deed of equity interest purchase
undertaking.
The bonds have an expected rating of
BB– by Fitch.
Proceeds will be used mainly to finance
offshore debt, including the redemption of
the Chinese property developer’s US$300m
bonds due on October 8.
Goldman Sachs, Heungkong Financial, Credit
Suisse, Bank of America Merrill Lynch and JP
Morgan were joint global coordinators and
bookrunners.› BLUESTAR HOLDS MEETINGSCHINA NATIONAL BLUESTAR (GROUP), rated Baa2/
BBB/A–, has mandated BNP Paribas, BOC
International, Credit Agricole and Morgan
Stanley as joint global coordinators and,
together with Industrial Bank, Hong Kong
branch and Standard Chartered, joint
bookrunners to arrange investor meetings
in Hong Kong, Singapore and London.
Meetings began on July 4.
A Reg S offering of US dollar seniorunsecured fixed-rate notes may follow,
subject to market conditions.
Bluestar Finance Holdings will issue the
proposed bonds with a guarantee from
China National Bluestar (Group). The notes
are expected to be rated BBB/A– (S&P/Fitch).
State-owned China National Chemical
Corp (ChemChina) owns a 79.5% stake
in specialty chemicals and materials
manufacturer Bluestar, and Shandong
International Trust owns the remainder.› DAFA PROPERTIES PAYS 14%DAFA PROPERTIES GROUP, rated B2/B (Moody’s/
S&P), priced US$180m 12.875% two-year
bonds at 98.095 to yield 14%, unchanged
from initial guidance.
The Reg S senior unsecured bonds have
expected ratings of B3/B– (Moody’s/S&P).
Proceeds will be used primarily to refinance
debt.
Barclays, BOC International, CCBInternational,
CLSA, CMB International, Credit Suisse, Deutsche
Bank, Haitong International, Heungkong
Financial and Natixis were joint global
coordinators and bookrunners.
Shanghai-based residential property
developer Dafa listed in Hong Kong in
October 2018.› FOSUN WRAPS UP TENDERChinese conglomerate FOSUN INTERNATIONAL
has agreed to buy back US$233.6m in
principal amount of its offshore bonds
under a cash tender offer that was funded
by last month’s US$700m four-year non-call
three senior bond offering.
Fosun will repurchase US$129.625m of
the US$550m 5.375% senior notes due 2020
and US$103.996m of the US$590m 5.50%
senior notes due 2023. It had earlier said it
would accept up to US$350m of each set of
notes in the tender.
Fosun will pay US$1,011.5 per US$1,000
in principal amount of the 5.375% 2020s
and par for the 5.50% 2023s.
Credit Suisse, BOC International, HSBC
and Standard Chartered Bank were dealer
managers for the tender offer. DF King was
the information and tender agent.
The company said it might launch
further liability management exercises,
depending on market conditions.› GUANGZHOU STATE FIRM READIES DEBUTGUANGZHOU DEVELOPMENT DISTRICT FINANCIAL
HOLDINGS GROUP, rated Baa1/BBB+ (Moody’s/
Fitch), has hired banks for a proposed debut
offering of US dollar senior unsecured
bonds, subject to market conditions.
Guotai Junan International, Bank of China
and CMB Wing Lung Bank are joint globalTop bookrunners of Australian equity
1/1/19 – 30/6/19
Amount
Name Issues US$(m) %
1 UBS 15 2,788.1 23.8
2 Citigroup 6 2,064.6 17.7
3 Macquarie 10 1,458.7 12.5
4 JP Morgan 11 1,431.2 12.2
5 Bell Financial 31 588.0 5.0
6 Deutsche 2 540.3 4.6
7 Goldman Sachs 2 337.5 2.9
8 BAML 1 300.0 2.6
9 Morgan Stanley 3 284.9 2.4
10 Morgans Financial 14 180.8 1.6
Total 294 11,693.6
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Refinitiv data SDC Code: AK2