COUNTRY REPORT HONG KONGThe March 2016 deal, which has a
HK$3.84bn bullet term loan tranche A and
a HK$8.96bn revolving credit tranche B,
offered a top-level all-in pricing of 205bp
based on an interest margin of 190bp over
Hibor.
The mandated lead arrangers and
bookrunners were Bank of China (Hong
Kong), Bank of Communications Hong Kong
branch, China Merchants Bank Hong Kong
branch, HSBC, ICBC Asia, Shanghai Pudong
Development Bank Hong Kong branch,
Standard Chartered (Hong Kong) and Wing
Lung Bank. The MLABs brought in 28 banks
and increased the amount from the launch
size of HK$8bn.
Pricing has decreased for the borrower
since 2016 – the HK$11.8bn three-year club
loan and revolver it raised in March this
year offered a lower all-in pricing of 150bp
via a margin of 120bp over Hibor.
The borrower, rated Baa2/BBB
(Moody’s/S&P), provides services such as
investment banking and advisory, futures
trading, asset management, bond issuance,
securities custodial and leveraged foreign
exchange.
Hong Kong-listed Haitong Securities owns
about 62% of the company.
› CHINA OVERSEAS LAND SEEKS CLUB
CHINA OVERSEAS LAND & INVESTMENT is seeking an
unsecured HK$20bn five-year bullet term
loan.
Bank of China is the coordinator and
facility agent of the club financing, which
pays an interest margin of 125bp over
Hibor and an upfront fee of 100bp for an
all-in pricing of 145bp.
The Hong Kong-listed company is said
to be looking to close the deal in January.
Funds are for refinancing.
The borrower’s HK$18bn five-year club
loan signed in December 2017 pays a
higher margin of 138bp over Hibor and
attracted 15 banks.
The company, which develops
residential, retail and office properties in
China, is rated Baa1/BBB+/A–.
China Overseas Holdings, a unit of
state-owned China State Construction
Engineering Corp, is the borrower’s
controlling shareholder.› TIAN LUN GAS EXTENDS REFI DEADLINEThe commitment deadline for CHINA TIAN
LUN GAS HOLDINGS’ three-year facility of up to
HK$2bn has been extended to early next
year from December 7.
The deal for the Hong Kong-listed gas
distributor has a base size of HK$1.2bn and
can be increased to HK$1.5bn–$2bn.
Mandated lead arranger and bookrunner
Credit Suisse is expected to pre-fund part of
the facility before the close of syndication.
A bank presentation was held in Hong
Kong on December 3.
The term loan and revolving credit
facility is to refinance the portion of
the US$250m three-year loan raised in
December 2015 that is outstanding and was
not extended, as well as raise additional
capital.
Chang Hwa Commercial Bank, the
facility agent on the 2015 deal, helped
Tian Lun Gas exercise the two-year
extension option in October with consent
from 10 other existing lenders. The
remaining six lenders of the 2015 deal will
be repaid.
The latest facility pays a top-level all-in
pricing of 300bp based on an interest
margin of 270bp over Hibor and a blended
average life of 2.67 years.
The borrower’s chairman Zhang Yingcen
and two offshore subsidiaries – Tian Lun
New Energy and Upsky Holdings – are the
guarantors for both deals.› PRIMECREDIT INCREASES REFI
PRIMECREDIT has closed a 3.5-year club loan
at HK$2.2bn with five banks, slightly above
the original target of HK$2bn.
Four Chinese banks committed HK$500m
each, while CMB Wing Lung Bank committed
HK$200m. CMB Wing Lung is the facility
agent.
Funds will mainly refinance a HK$2bn
deal signed in December 2016, with
the remainder meeting working capital
requirements.
The latest borrowing is equally split into
a revolving credit facility (tranche A) and an
amortising term loan (tranche B).
The facility offered a top-level all-in
pricing of 253.85bp via an interest margin
of 220bp over Hibor for a blended average
life of 3.25 years.
Signing has not yet taken place.
PrimeCredit is a consumer finance
company founded in 1977 in Hong Kong.
China Travel Financial Holdings, Pepper
Group (formerly Pepper Australia) and
York Capital Management Global Advisors
bought the company in 2015.
For full allocations, see http://www.ifrasia.com.Top bookrunners of Hong Kong dollar bonds,
inc certificates of deposit, commercial paper
1/1/18 – 30/11/18
Amount
Name Issues HK$(m) %
1 HSBC 140 62,791.3 38.7
2 BoCom 17 31,825.0 19.6
3 Standard Chartered 53 24,888.5 15.3
4 Credit Agricole 18 6,382.7 3.9
5 Mizuho 9 4,801.4 3.0
6 Citigroup 10 4,432.6 2.7
7 BNP Paribas 14 3,246.0 2.0
8 Bank of China 3 2,900.0 1.8
9 Societe Generale 6 2,484.9 1.5
10 CBA 5 2,350.0 1.5
Total 289 162,454.4
*Market volume
Proportional credit
Source: Refinitiv data SDC Code: AS5a
Top bookrunners of Hong Kong dollar bonds,
ex-certificates of deposit, commercial paper
1/1/18 – 30/11/18
Amount
Name Issues HK$(m) %
1 HSBC 57 39,716.7 48.0
2 Standard Chartered 24 11,182.5 13.5
3 Credit Agricole 17 5,882.7 7.1
4 BNP Paribas 14 3,246.0 3.9
5 Citigroup 4 3,111.0 3.8
6 Bank of China 3 2,900.0 3.5
7 BoCom 2 2,125.0 2.6
8 Societe Generale 4 1,784.9 2.2
9 Mizuho 3 1,749.4 2.1
10 UBS 2 1,625.0 2.0
Total 128 82,822.2
*Market volume
Proportional credit
Source: Refinitiv data SDC Code: AS6Top bookrunners of Hong Kong syndicated loans
1/1/18 – 30/11/18
Amount
Name Deals US$(m) %
1 HSBC 28 6,885.6 12.8
2 ICBC 15 4,478.5 8.3
3 Standard Chartered 22 3,869.9 7.2
4 CCB 17 3,689.5 6.8
5 Bank of China 17 3,176.2 5.9
6 MUFG 10 2,454.0 4.6
7 CMB 9 2,147.0 4.0
8 Credit Agricole 3 1,672.8 3.1
9 Mizuho 12 1,656.1 3.1
10 ANZ 10 1,524.7 2.8
Total 104 53,912.0
* Based on market of syndication and market total
Proportional credit
Source: Refinitiv data SDC Code: S9bHong Kong global equity and equity-related
1/1/18 – 30/11/18
Amount
Name Issues US$(m) %
1 CICC 2 1,821.5 17.6
2 Goldman Sachs 7 1,111.2 10.7
3 UBS 4 1,061.3 10.3
4 Guotai Junan Sec 6 526.4 5.1
5 China Merchants Sec 5 448.5 4.3
6 BNP Paribas 2 429.8 4.2
7 Guoyuan Sec 1 350.0 3.4
8 Citic Sec 1 333.3 3.2
9 Kingston Sec 17 309.8 3.0
10 Haitong Sec 4 256.5 2.5
Total 203 10,347.0Source: Refinitiv data