COUNTRY REPORT CHINA› HAITONG SEC TACKLES DUAL CURRENCIES
HAITONG SECURITIES, rated BBB (stable) by S&P,
has priced two five-year bonds in US dollars
and euros.
A US$300m fixed-rate note priced at
Treasuries plus 185bp, or 15bp inside initial
guidance, while a €230m floater priced at
three-month Euribor plus 165bp, which
was in line with final guidance.
Haitong International, Haitong Bank, Bank
of China, Bank of Communications, ICBC, BOSC
International and Ping An of China Securities (Hong
Kong) Company were joint global coordinators,
together with China Citic Bank International,
HSBC, Shanghai Pudong Development Bank Hong
Kong branch and Standard Chartered Bank as
joint lead managers and joint bookrunners
for the Reg S bonds.
The notes will be sold directly by Haitong
and have the same ratings as the securities
firm.
› ICBC HK BRANCH SETS UP MTN
INDUSTRIAL AND COMMERCIAL BANK OF CHINA HONG
KONG BRANCH has set up a US$6bn medium-
term note programme with ICBC Asia and
HSBC as joint lead arrangers.
The banks are also dealers with BNP
Paribas, ICBC International, JP Morgan, Bank of
America Merrill Lynch, Mizuho Securities, National
Australia Bank and Standard Chartered Bank.
The MTN programme is listed on the
Stock Exchange of Hong Kong.› JIAYUAN SELLS ADDITIONAL BONDSJIAYUAN INTERNATIONAL GROUP, rated B2 by
Moody’s, has reopened its 12.00% senior
notes due October 22 2020 for US$80m,
bringing the total outstanding to US$375m.
The Hong Kong-listed Chinese property
developer sold the additional bonds at par,
flat with price guidance.
Proceeds will be used for debt
refinancing.
The original notes were priced on
October 12 with an issue size of US$225m.
The company then reopened the notes for
US$70m on November 6.
The two-year non-put one notes are rated
B3 by Moody’s. Investors can put the notes
at 102.125 on October 22 2019.
Guotai Junan International and Haitong
International were joint global coordinators
as well as joint bookrunners with China Citic
Bank International on the tap.› JINAN HI-TECH RAISES US$250MLocal government financing vehicle JINAN
HI-TECH HOLDING GROUP has priced US$250m
three-year US dollar senior unsecured notes
at par to yield 6.40%, in line with price
guidance.The issuer is the primary entity for
the infrastructure development of Jinan
Innovation Zone, a national level high-
tech development zone located in Jinan,
Shandong province.
It has businesses in industrial park
development, residential development,
infrastructure development, primary land
development, IT hardware and services.
Proceeds from the Reg S unrated issue
will primarily be for the group’s onshore
projects.
China International Capital Corp, Industrial
Bank Hong Kong branch, Zhongtai International
and Guotai Junan International were joint
global coordinators as well as joint lead
managers and joint bookrunners with
Silk Road International, Shanghai Pudong
Development Bank Hong Kong branch, China
Everbright Bank Hong Kong branch, BoCom
International, Central Wealth Securities
Investment and Southwest Securities
International.
China Citic Bank International and SSIF
Securities were no longer leads at the time
of pricing.› LSID HIRES GUOTAI JUNANLIANGSHAN STATE-OWNED INVESTMENT & DEVELOPMENT
has mandated Guotai Junan International as
sole global coordinator, sole bookrunner
and sole lead manager for a proposedLogan builds on Double B rebound
Bonds Biggest oversubscription for months shows recovery in property sectorLOGAN PROPERTY HOLDINGS, rated Ba3/BB–/
BB–, received strong demand for a US$370m
bond that traded well in the aftermarket,
underlining a recovery in demand for Double
B rated Chinese developers.
The Hong Kong-listed Chinese real estate
company on Thursday priced the two-year
senior unsecured notes at par to yield 8.75%,
tightening from initial 9% area guidance.
The Reg S issue drew final orders of over
US$2.2bn from 112 accounts. Of the notes,
94% went to Asia and 6% to Europe. By
investor type, 66% went to fund managers,
27% to banks and financial institutions, and
7% to private banks.
The newly priced notes were quoted at
101.1/101.3 or a yield of 8.143%/8.033% on
Friday morning, according to Tradeweb.
“It was very inspired in terms of both the
book size and aftermarket performance,
compared with recent new issues,” a trader
said.
A banker on the deal said there was onlyaround 20bp new issue premium at final
pricing.
“Double B rated property bonds were in
demand recently and we’ve seen the bonds
trading up in the past two weeks,” the banker
said. “Many of these bonds have been sold
off in the past year and their valuations have
now returned to levels that were seen three
or four years ago. Many real money players
think the valuation is attractive, although
they are still selective on names.”
Logan’s yield was 75bp below that on Agile
Group Holdings’ US$400m 9.50% two-year
senior notes priced on November 15, which
are rated one notch higher than Logan’s.
Agile is rated Ba2/BB (Moody’s/S&P) and
its notes are rated Ba3/BB (Moody’s/S&P)
while Logan’s notes have an expected BB–
rating from Fitch.
Agile’s 9.50% 2020s were quoted at
103.00/103.45 or a yield of 7.807%/7.560%
on Friday morning, reflecting the recent gains
in the sector.The banker said other developers may
come to market later this month before
the new issue window closes for the festive
period.
Research firm Lucror Analytics said its
fundamental credit bias on Logan remained
“stable”, supported by the company’s
robust contracted sales growth and
strong margins, and underpinned by its
geographical focus in the Greater Bay Area
of Guangdong, Hong Kong and Macau.
It maintains a “buy” recommendation on
Logan’s bonds.
Logan plans to use proceeds from the
latest bond for debt refinancing.
HSBC, BOC International, Deutsche
Bank, China Citic Bank International, CEB
International, Silk Road International, Haitong
International and Guotai Junan International
were joint global coordinators, joint lead
managers and joint lead bookrunners on the
transactions.
CAROL CHAN