COUNTRY REPORT CHINAThe notes are expected to be rated Ba3/
B+ (Moody’s/S&P).
Proceeds will be used for business
development, repay financial borrowings,
including a Credit Suisse term loan, and
other general corporate purposes.
› JUYANG HIRES FOR DOLLAR ISSUE
SI CHUAN PROVINCE JUYANG GROUP , rated B2/B
(Moody’s/Fitch), has mandated three banks
to arrange investor meetings and a call
in Hong Kong from January 17 ahead of a
proposed offering of US dollar notes.
CCB International and Guotai Junan
International have been hired as joint global
coordinators. They are joint lead managers
and joint bookrunners with Oceanwide
Securities.
A proposed Reg S-only offering of senior
unsecured US dollar notes may follow.
The notes will be issued in the name of
Zhong Yi Holdings with a guarantee from Si
Chuan Province JuYang Group.
The notes are expected to score ratings of
B3 from Moody’s and B from Fitch.
Si Chuan Province JuYang Group is a
Chinese developer and owner of hotels and
real-estate properties in southern Sichuan
province.
› CINDA PLANS 10-YEAR NOTES
CHINA CINDA ASSET MANAGEMENT is preparing
to sell Rmb15bn (US$2.3bn) of 10-year
financial notes in the country’s interbank
bond market.
Books will open on January 23 for the
offering. Both the issuer and the notes have
AAA scores from United Ratings.
China Cinda will use the proceeds mostly
to develop its distressed-debt business.
Cinda Securities is lead underwriter
on the offering with China Construction
Bank , Industrial and Commercial Bank of
China , Agricultural Bank of China , Bank of
Communications , Bank of China and China
Merchants Bank as joint lead underwriters.
Late last year, China Cinda privately
placed US$545m of 4.75% 20-year US dollar
senior guaranteed bonds, according to a
filing to the Stock Exchange of Hong Kong.
› COGARD RETURNING TO PANDAS
COUNTRY GARDEN HOLDINGS is returning to
China’s Panda bond market 16 months
after its last visit in September 2016.
The Cayman Islands-incorporated
property developer is set to sell Rmb1.8bn
of three-year Panda notes in China’s
interbank bond market. Books are open
until Monday.
Both the issuer and the notes are rated
AAA/AAA (China Chengxin/United Ratings).
The proceeds will be used to repay
onshore bank loans and to replenish capital.
ICBC is lead underwriter on the offering
with Agricultural Bank of China as joint lead
underwriter.
In September 2016, CoGard privately
placed Rmb10bn of Panda bonds on the
Shanghai Stock Exchange before Chinese
regulators tightened scrutiny over
developers’ debt financing onshore against
a backdrop of surging land and house
prices.
Last week, the company raised US$850m
from dual-tranche US dollar senior notes in
the offshore market.
It priced US$250m 4.75% five-year non-
call three notes at par and US$600m 5.125%
seven-year non-call four notes at 99.565 to
yield 5.20%.› BOHAICAP GETS 270-DAY FUNDSHNA Group subsidiary BOHAI CAPITAL HOLDING
has raised Rmb1bn from an offering of
270-day notes in China’s interbank bond
market.
The notes were priced at par to yield
6.50%. The issuer is a AAA credit to United
Ratings. The proceeds are intended to
replace debt.
China Merchants Bank was sole lead
underwriter and bookrunner on the
offering.
In January 2016, Bohai Capital acquired
aircraft-leasing company Avolon Holdings
for US$7.6bn.› SHENGJING BANK MULLS ISSUESHENGJING BANK , based in Shenyang in China’s
north-east Liaoning province, plans to sell
financial bonds of up to Rmb30bn in the
country’s interbank bond market.
The proposed bonds will have a maturity
of no longer than five years, the Hong
Kong-listed city commercial bank has said.
Proceeds will be used to increase and
stabilise the sources of the bank’s medium
and long-term liabilities.
The issue still needs the approval
of shareholders, the China Banking
Regulatory Commission and other relevant
authorities.› SHANGHAI FOSUN CUTS ISSUE SIZESHANGHAI FOSUN HIGH-TECHNOLOGY (GROUP) raised
Rmb1.2bn from the sale of five-year non-
put three notes priced at 6.48%.
The onshore unit of Fosun International
marketed the notes on January 11
and January 12 on the Shanghai Stock
Exchange.
Shanghai Fosun’s first offering of
the year was downsized from an initialRmb1.5bn due to poor market conditions.
China’s domestic bond market fell in the
second week of January amid concerns of
weaker demand after regulators issued new
rules to step up supervision of leveraged
bond trading, as well as the shadow
banking sector.
On January 12, China’s 10-year treasury
notes were traded at 3.93%, up 4bp from
January 9.
Both the issuer and the notes have
ratings of AAA from Dagong Global.
At the end of the third year, the issuer
will have an option to raise the coupon and
investors will be allowed to sell back the
notes.
The proceeds will be used for debt
repayment.
Haitong Securities was lead underwriter
on the offering, with Zhongshan Securities as
joint lead underwriter.› SINO-OCEAN READIES PANDA NOTESState-owned property developer SINO-OCEAN
GROUP HOLDING is returning to the Panda bond
market ten months after its first visit in
March 2017.
It is looking to raise Rmb3bn from an
offering of three-year notes in China’s
interbank bond market this week. Books
will open on January 23 and 24.
This will be the second issue under Sino-
Ocean’s Rmb10bn Panda bond programme.
Both the notes and the issuer are rated
AAA by China Chengxin.
China Citic Bank is lead underwriter and
bookrunner for the offering with ICBC as
joint lead underwriter.
In March 2017, the company raised
Rmb4bn from a dual-tranche Panda bond
offering.› SIHL PRICES DEBUT PANDASSHENZHEN INTERNATIONAL HOLDINGS (SIHL) has set
the price for five-year non-put three Panda
bonds at par to yield 5.20%.
The Bermuda-incorporated company
intends to raise Rmb300m from a debut
Panda offering on the Shenzhen Stock
Exchange, with an overallotment option of
Rmb500m.
Books are open for the notes until
January 22.
A banker familiar with the deal said the
issuer was unlikely to fully exercise the
overallotment option. “It does not have big
funding needs for now, besides the onshore
market condition are very volatile,” said the
banker.
Both the issuer, an operator of logistic
infrastructure facilities, and the unsecured
notes are rated AAA/AAA (United Ratings/
Pengyuan Credit Rating).