COUNTRY REPORT CHINAcoordinators on the Reg S issue. They
are also joint bookrunners and joint lead
managers with ABC International, Bank of
Communications, Barclays, China Industrial
Securities International, DBS Bank, Haitong
International, Industrial Bank Hong Kong branch
and OCBC Bank.
The state-owned financial service and
investment vehicle started to meet investors
in Hong Kong last week and will meet
investors London and Singapore this week.
Wholly owned subsidiary GET
International Investment Holdings will be
the issuer and GZDDFH is the guarantor.
The proposed bonds have expected
ratings of Baa1/BBB+ (Moody’s/Fitch).
GZDDFH manages state capital and
industrial facilities in the Guangzhou
Development District economic zone. Its
main businesses include heat and power
supplies, science park construction and
management, technology investment, real
estate development and financial services.
› JIAYUAN EXCHANGE OFFER CLOSES
JIAYUAN INTERNATIONAL on Friday announced
the result of an exchange offer for its
US$400m 12.0% senior bonds due October
22 2020, while conducting a concurrent
new money issue.
The Hong Kong-listed real estate
company said US$191.1m of the 2020s had
been validly tendered but that it would
only accept US$150m of the tendered notes.
It also said that the aggregate principal
amount of the new notes to be issued under
the exchange offer and the concurrent new
money issuance was expected to be US$225m.
Under the exchange offer, for each
US$1,000 in principal amount of the
validly tendered 2020s, holders will receive
US$1,000 in aggregate principal amount of
the new notes, accrued interest, cash in lieu
of any fractional amount of new notes, plus
a cash consideration of US$26.25.
Final price guidance for the additional new
notes, which have a tenor of two years and
eight months with a put option after one year
and eight months, was set at 13.75%.
There is an investor put option to sell the
bonds at 102.402 on March 11 2021, or a
yield to put of 15.00%.
Proceeds from the new money part will
be used for debt refinancing.
Jiayuan has a Caa1 rating (on review for
upgrade) by Moody’s and the Reg S issue is
unrated. The deal has not yet priced at the
time of writing.
The settlement date for the new notes is
expected to be on July 11.
Guotai Junan International, CLSA, China
Investment Securities International, China Citic
Bank International, Morgan Fuel Go Securities and
CCB International are joint global coordinators,
lead managers and bookrunners.› MACROLINK HOLDING TAPS 2021SMACROLINK HOLDING on June 28 reopened its
US$168m 9.5% senior notes due January 4
2021 for a further US$40.4m.
The tap priced at 99.998 to yield 9.5%, in
line with final price guidance.
Macrolink Global Development is
the issuer and Macrolink Holding is the
guarantor.
Proceeds will be used for general
corporate purposes.
The original notes were priced at par
on December 28 2018. The two-year Reg S
notes are unrated.
Silk Road International, CMBC Capital
and CCB International were joint global
coordinators as well as joint lead managers
and joint bookrunners with CM Financial on
the reopening.
Macrolink Holding is involved in cultural
tourism real estate development, chemical
engineering, petroleum trading, and non-
ferrous metals in China.› NEW TOWN BUILDS CAPITALNEW TOWN CONSTRUCTION INVESTMENT (JIZHOU,
TIANJIN) on June 28 priced a US$70m three-
year credit-enhanced bond offering at par
to yield 4.80%, inside initial price guidance
of 4.95% area.
The Reg S bonds are supported by anShandong Guohui swoops at dawn
Bonds Issuer still has large unfulfilled offshore quotaSHANDONG GUOHUI INVESTMENT, rated Baa2/
BBB+ (Moody’s/Fitch), priced a chunky
US$800m three-year senior unsecured bond
at par to yield 4.37%, 43bp tighter than initial
4.80% area guidance.
The new issue priced on July 3 around 3am
Hong Kong time, which is unusual for a Reg
S issue. But two bankers on the deal said this
was mainly due to “discussion of allocations”
and insisted there was nothing unusual.
The deal was mainly supported by the
leads, one of the bankers on the deal
acknowledged, although some foreign
investors also took part.
Final statistics were not available at the
time of writing but orders were said to be
over US$3.3bn, including US$2bn demand
from the leads, ahead of the release of final
guidance.
The issue was Shandong Guohui’s first
offshore bond issue after it received first-
time issuer ratings from Moody’s and Fitch
in April. Prior to that, it had printed twounrated issues last year with tenors of less
than one year in the international market,
for which it did not need an issuance quota
from the National Development and Reform
Commission. It sold US$188m 363-day notes
at 5.7% in September and US$600m 363-
day notes at 5.7% in November.
Despite the massive size of the latest
offering, Shandong Guohui is likely to revisit
the offshore bond market as it has a total
US$1.5bn NDRC quota, according to a note
from Nomura’s trading desk.
Nomura has suggested investors
participate in the deal with final guidance at
no less than 4.4%.
Indirectly wholly owned subsidiary Guohui
International (BVI) is the issuer of the bonds
with a guarantee from Shandong Guohui.
The bonds have an expected rating of
BBB+ from Fitch. The bonds traded up 0.375
points in cash price in the aftermarket.
Proceeds will be used for refinancing
of the group’s onshore and offshore debt,project construction and general corporate
purposes.
Central Wealth Securities Investment,
Zhongtai International, Bank of China,
China International Capital Corp and
Standard Chartered Bank were joint global
coordinators. They were also joint lead
managers and joint bookrunners with BoCom
International, CMB Wing Lung Bank, China
Minsheng Banking Corp Hong Kong branch,
Industrial Bank Hong Kong branch, China
Citic Bank International, China Everbright
Bank Hong Kong branch, ABC International,
Silk Road International, Haitong International,
Huatai Financial Holdings (Hong Kong), Bank
of East Asia and China Securities International.
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.
CAROL CHAN