The Chinese tourism and leisure group
attracted final orders in excess of €1.4bn
from over 80 accounts.
“Demand for the deal was very strong
with many big Europe institutional
investors participating,” a syndicate banker
from a Chinese bank on the deal said.
EMEA took 60% of the bonds and Asia
40%. In terms of investor types, 47% were
fund managers, 41% were bank treasuries,
a combined 10% were insurers, pension
funds and official institutions, and 2% were
private banks and others.
Wholly owned subsidiary Triceratops
Capital is the issuer of the Reg S notes,
which have a keepwell deed from Jinjiang
Internation. Payments of the principal and
the interest will be backed with a euro-
denominated standby letter of credit from
ICBC, Shanghai branch.
The notes have an expected A1 rating
from Moody’s.
Proceeds will be used for repayment
or refinancing of offshore debt and to
supplement working capital.
ICBC , BNP Paribas and Credit Agricole
were joint global coordinators and joint
bookrunners with HSBC , Standard Chartered
and Agricultural Bank of China Hong Kong
branch.
› TSINGHUA UNI GOES FOR DOLLARS
Chinese state-backed technology company
TSINGHUA UNIGROUP has hired three banks to
arrange investor meetings in Hong Kong,
Singapore and London from January 22
ahead of a proposed offering of unrated US
dollar notes.
Credit Suisse , Bank of China and Standard
Chartered Bank are joint global coordinators,
joint bookrunners and joint lead managers.
An offering of Reg S unrated senior
guaranteed notes offering may follow.
The notes will come with an
unconditional and irrevocable guarantee
from Tsinghua Unigroup and will be
issued in the name of offshore subsidiary
Tsinghua Unic.
› XIAMEN XIANGYU TARGETS DOLLARS
State-owned XIAMEN XIANGYU GROUP , with a BBB
(stable) rating from Fitch, hired banks to
arrange investor meetings in Hong Kong,
Singapore and London from January 18 for
a proposed offering of senior unsecured US
dollar notes.
Standard Chartered , ICBC International and
Bank of China are joint global coordinators,
as well as joint lead managers and joint
bookrunners with SPDB International and
SinoPac Securities (Asia).
The notes, with an unconditional
and irrevocable guarantee from Xiamen
Xiangyu, will be issued in the name of
subsidiary Hongkong Xiangyu Investment.
They have an expected rating of BBB from
Fitch.
Xiamen Xiangyu, based in the Xiangyu
Bonded Zone in China’s south-eastern
Fujian province, is a logistics and supply
chain services provider.› CORN-OIL MAKER SELLS THREE-YEARChinese edible corn-oil maker SHANDONG
SANXING GROUP , rated BB– (S&P), has raised
US$200m from the sale of three-year US
dollar bonds. The proceeds will be used for
refinancing and general working capital
purposes.
The 7.99% senior unsecured Reg S bonds
were priced at 98.674 to yield 8.50%, similar
to final guidance.
The issue drew final orders of over
US$400m from 41 accounts. Asia took 97%
of the notes and Europe took 3%. In terms
of investor types, 52% were funds, 40% were
private banks, 6% were banks, 2% were
corporate buyers and others.
Indirect wholly owned subsidiary Knight
Castle Investments is the issuer with
Sanxing Group as the guarantor.
The notes have an expected BB– rating
from S&P.
Huatai Financial Holdings (Hong Kong) ,
Shanxi Securities International and DBS Bank
were joint global coordinators as well as
joint lead managers and joint bookrunners
with CMBC Capital , BoCom International , VTB
Capital , Mizuho Securities , Cinda International
Securities and CNCB HK Capital.
Sanxing Group is also involved in making
lightweight aluminium alloy products, as
well as trade and micro credit.› FITCH DOWNGRADES IMHCDFitch Ratings has downgraded INNER
MONGOLIA HIGH-GRADE HIGHWAY CONSTRUCTION
AND DEVELOPMENT to BBB– from BBB after
the government there said its fiscal and
economic numbers for 2016 had been
overstated.
The agency said the action followed a
downgrade of its internal assessment of the
creditworthiness of China’s Inner Mongolia
Autonomous Region, while the linkage
between the company and the government
remained unchanged.
It also cut the rating on IMHCD’s
US$400m 4.375% senior unsecured bonds
due 2020 to BBB– from BBB.
Inner Mongolia lowered its industrial
output figure for 2016 40%, the official
Xinhua news agency reported on January 3.
It also said fiscal revenue for that year was
26% less than initially stated. It did not give
details.The government also cut by 17% its 2017
general public budget revenue guidance,
implying 15% year-over-year growth, based
on the restated 2016 numbers.
Fitch said the downgrade of its internal
assessment of the region’s creditworthiness
took into account the limited data
robustness and weak internal governance
in the region.
All ratings on IMHCD had been placed
on Rating Watch Negative, Fitch said,
reflecting expectations of more data
revisions from the government, including
past fiscal and economic figures.
IMHCD’s US$400m 4.375% senior notes
widened 19bp on Friday morning to 261bp
over Treasuries, according to Tradeweb.
More incidents of Chinese local
government data fraud have been exposed,
coinciding with a Beijing-led campaign to
crack down on risky lending, aimed partly
at curbing runaway local government debt,
Reuters has reported.
The 2016 GDP of Tianjin’s Binhai New
Area was actually about a third smaller
than previously announced, according to
the official People’s Daily on January 15.
Last January, the north-eastern province
of Liaoning said it had faked fiscal data
from 2011 to 2014, becoming the first
region to make such an admission.› HONG YANG TAPS 2018 LINEChinese developer HONG YANG GROUP , rated B/B
(S&P/Fitch), priced on Friday a US$125m tap
of its US$250m 8.5% notes due November
20 2018.
The notes were sold at a clean price of
100.05 to yield 8.411193%.
Hong Seng is the issuer and Hong Yang
the parent guarantor.
CICC and Orient Securities (Hong Kong) were
joint global coordinators. They were also
joint bookrunners with Huatai Financial
Holdings (Hong Kong).
Proceeds will be used to refinance debt
and meet general corporate needs.› GCL NEW ENERGY GOES FOR DOLLARSGCL NEW ENERGY HOLDINGS , rated Ba2/BB–
(Moody’s/S&P), has hired banks for a
proposed issue of US dollar Reg S senior
unsecured bonds.
Bank of America Merrill Lynch , Haitong
International , Credit Suisse , Standard Chartered
and CLSA are joint global coordinators on
the issue, as well as joint lead managers
and joint bookrunners with Orient
Securities (Hong Kong) , VTB Capital and SPDB
International.
The Chinese solar-power company began
meeting investors in Hong Kong, Singapore
and London from last Thursday.