COUNTRY REPORT CHINAChina’s interbank bond market,
according to a filing on Shanghai Clearing
House.
The books were opened on December 5
for the five-year non-put three notes. Final
pricing had not been disclosed at the time
of writing.
The proceeds will be used to repay debt.
The issuer and the bonds are rated AAA
by China Chengxin and Lianhe.
Citic Securities is lead underwriter and
bookrunner on the offering. ICBC is joint
lead underwriter.
The issuer is primarily engaged in the
construction and operation of city gas
pipelines in the PRC. It issued Rmb2bn five-
year non-put three Panda bonds in China’s
interbank bond market at par to yield 4.38%
in October.
› EVERBRIGHT GREENTECH EYES ISSUE
CHINA EVERBRIGHT GREENTECH said it plans to
issue up to Rmb3bn corporate bonds on the
Shenzhen Stock Exchange.
It has hired Everbright Securities as
underwriter for the proposed offering,
which needs the approval from the China
Securities Regulatory Commission and the
Shenzhen Stock Exchange.
Proceeds will be used for working
capital, debt repayment, and green projects
investment.
The Hong Kong-listed company
engages in biomass integrated utilisation,
hazardous waste treatment, environmental
remediation, solar energy and wind power
in China.
› JINMAO RECEIVES REGULATORY OK
Property developer CHINA JINMAO HOLDINGS
GROUP said a subsidiary has received
approval to issue up to Rmb10bn medium-
term notes in China’s interbank bond
market.
The approval from the National
Association of Financial Market
Institutional Investors is valid for two years,
the Hong Kong-listed company said.
Wholly owned subsidiary Jinmao
Investment Management (Shanghai) will be
the issuer, it said.› XINJIANG GOLDWIND GETS APPROVALXINJIANG GOLDWIND SCIENCE & TECHNOLOGY
said it has received approval from the
National Association of Financial Market
Institutional Investors to issue up to
Rmb2bn medium-term notes in China’s
interbank bond market.
The approval is valid for two years and
the Chinese wind turbines manufacturer
can issue the bonds in tranches.
ICBC and China Construction Bank will be
the underwriters of the proposed bond
offering.SYNDICATED LOANS
› SIX ON AMER SPORTS ACQUISITION LOANSix banks are expected to underwrite a
€2.2bn (US$2.5bn) five-year recourse loan
to back a Chinese consortium’s proposedtakeover of Finland’s AMER SPORTS for €4.6bn.
The consortium, led by China’s Anta
Sports and buyout firm FountainVest
Partners, is being advised by Citigroup.
The six lenders are: Bank of China, Bank of
America Merrill Lynch, Citigroup, Credit Suisse,
JP Morgan and Standard Chartered.
JP Morgan and StanChart will underwrite
€440m each, while BOC, BAML, Citi and
Credit Suisse will take €330m apiece. The
six banks will likely sign the deal later this
month.
Pricing is expected to be above 200bp,
with the upfront fee over 100bp.
There is also a non-recourse seven-year
term loan B at the target level in Europe,
the size of which will depends on Amer’s
financials.
Amer’s net debt/Ebitda ratio soared to
3.17x at the end of September, from 2.29x
a year earlier, after its acquisition of Peak
Performance in June. The company said in
a quarterly report that it aims to keep the
ratio below 3x by the end of this year.
Meanwhile, its net debt/equity ratio also
increased to 1.03x at the end of September,
versus 0.71x a year earlier.
Amer also said it had interest-bearing
liabilities of €1.15bn as of the end of
September, and its Ebitda in the first nine
months was €177.4m, versus €234.8m in all
of 2017.
Anta, China’s biggest sportswear
retailer by market value, and FountainVest
submitted a non-binding preliminary
indication of interest to buy the entire
share capital of Amer for €40 apiece in cash
in September.Baoxin Auto signs US$358m refinancing
Loans Dual-tranche borrowing attracts 11 lendersHong Kong-listed auto dealership GRAND
BAOXIN AUTO GROUP signed a US$358m three-
year term loan on November 30 with 12 banks.
The deal comprises a US$167.5m tranche
A and a US$190.5m tranche B. Special-
purpose vehicle BAOXIN AUTO FINANCE I is the
borrower on tranche A, while Grand Baoxin
Auto Group is the borrower on tranche B.
Shanghai-listed China Grand Automotive
Services is providing a joint and several
guarantee for both portions.
Financial covenants require Grand Baoxin
Auto Group’s total tangible net worth at a
minimum of Rmb3.8bn (US$552m), the ratio
of net debt to Ebitda capped at 4x and Ebitda
to interest expense at a minimum of 3x, the
guarantor’s current ratio at a minimum of
0.95x, total tangible net worth at a minimumof Rmb7bn, Ebitda to interest expense at a
minimum of 2.75x and total debt plus bills
payable minus cash pledge against bills
payable to total tangible assets minus cash
pledge against bills payable capped at 0.8x.
Repayments will take place in four
quarterly instalments after a 2.25-year grace
period: 5% (27th, 30th and 33rd months) and
85% (36th month).
A commitment fee of 30bp applies during
the nine-month availability period.
Mandated lead arranger and bookrunner
Standard Chartered brought in 11 banks,
including three as MLABs.
Standard Chartered (Hong Kong) is the
security and facility agent. A charge over an
interest reserve account is included in the
collateral.Change-of-control covenants require the
guarantor to remain Grand Baoxin Auto
Group’s largest controlling shareholder and
to continue to control and wholly own China
Grand Automotive Services (Hong Kong),
and Grand Baoxin Auto Group to continue to
be consolidated in the parent’s audited and
consolidated financial statements. China
Grand Automotive Services (Hong Kong)
owns 100% of the borrower on tranche A.
The interest margin is 308bp over Libor
and the deal offered a top-level all-in pricing
of 349bp for an average life of 2.925 years.
The loan has a greenshoe limit of
US$800m.
Funds are for refinancing and general
corporate purposes.
APPLE LAM