Books closed on January 19 and
subscription results will be announced on
Monday.
The coupon on the CB is 0.30% in year
one, stepping up to 1.80% in year six. The
initial conversion price has been set at
Rmb7.61, or at a discount of 0.7% to the
January 16 close of Rmb7.66. The unsecured
CB received a AA+ rating from China
Chengxin Securities.
China Securities is the sponsor.
SHANGHAI ELECTRIC GROUP has applied for
Shanghai Stock Exchange approval for a
public offering of six-year exchangeable
bonds of up to Rmb3bn in A-shares of
SHANGHAI MECHANICAL AND ELECTRICAL INDUSTRY.
Shanghai Electric holds 484m Shanghai
Mechanical A-shares, representing about
47.35% of the total issued capital.
Credit Suisse Founder Securities is the sole
bookrunner.
The China Securities Regulatory
Commission has agreed to suspend the
review of CENTRAL CHINA SECURITIES ’ application
for a proposed issuance of six-year CBs of
up to Rmb2.55bn.
Last month, CCS applied to the CSRC
for a suspension of its CB application after
the regulator carried out an investigation
into the company for alleged inadequate
due diligence as the financial adviser on
Tianjin Fengli Innovation Investment’s
acquisition of Xuzhou Jieneng Technology
Development.
Changjiang Financing Services was sponsor
on the CB issue.
WUHU SHUNRONG SANQI INTERACTIVE
ENTERTAINMENT NETWORK TECHNOLOGY failed
to get approval from the CSRC for a
proposed issuance of six-year CBs of up to
Rmb2.1bn.
During the hearing, the CSRC
questioned the company about the
rationality and necessity of its plans to use
the proceeds.
The games developer had planned to
use the proceeds for distribution and
operation of network games, as well as
for acquisitions. GF Securities was the sole
bookrunner.HONG KONG
DEBT CAPITAL MARKETS
› FWD HIRES TRIO FOR DOLLAR PERPSFWD , rated Baa3/BBB (Moody’s/Fitch), has
mandated HSBC , Citigroup and Standard
Chartered as joint lead managers and joint
bookrunners for an offering of US dollar
perpetual securities.
The insurance company will meet fixed-
income investors in Hong Kong, Singapore
and London, starting Monday, for the
proposed Reg S subordinated perps, which
have initial ratings of Ba2/BB+ (Moody’s/
Fitch). HSBC is sole structuring adviser.› UNION MEDICAL HEALTHCARE HIRESUNION MEDICAL HEALTHCARE has hired banks
for a proposed offering of US dollar bonds
under Reg S.The bonds are expected to be rated B1 by
Moody’s, in line with the issuer.
Investor meetings are scheduled to be
held in Hong Kong and Singapore from
January 22.
CMB International Capital is sole global
coordinator and joint bookrunner with UBS
and Haitong International.
UMH is an aesthetic medical service
provider headquartered in Hong Kong, with
clinics in Hong Kong, mainland China and
Macau.
The company intends to use the proceeds
for working capital and general corporate
purposes.SYNDICATED LOANS
› BEIJINGCAP LIFTS LOAN SIZEState-owned Beijing Capital has increased
its latest three-year term loan to HK$3.2bn
(US$409m), following commitments from
13 banks in general syndication.
Bank of China (Hong Kong) and China
Construction Bank (Asia) were the mandated
lead arrangers and bookrunners of the loan,
which was launched in late November at
HK$2bn.
The bullet loan offered a top-level all-in
pricing of 165bp, via an interest margin of
150bp over Hibor.
BEIJING CAPITAL (HONG KONG) is the borrower
and Beijing Capital is the guarantor.
Shanghai-listed Beijing Capital is
engaged in water supply, environmental
remediation and solid-waste treatment.
For full allocations, see http://www.ifrasia.com.HNA wins extension of second bridge
Loans Debt-laden conglomerate stretches for six months maturing facility used to buy land in Hong KongHNA GROUP has obtained an extension for a
HK$2.5bn (US$320m) bridge loan taken
to back a land purchase in Hong Kong, as
concerns grow about the conglomerate’s
debt burden.
A six-month extension to July 15 has
been negotiated for the bridge loan due
on Monday, said HNA unit Hong Kong
International Investment Group early last
week.
The loan from Industrial Bank backed
HNA’s purchase of a land parcel in Hong
Kong’s Kai Tak area in December 2016 for
HK$5.41bn.
“Since extra time is needed to complete
arrangement of the development loan in
relation to the 6562 land parcel, the bridgeloan is extended for six months,” the group
said in a statement on Monday.
This follows an earlier extension of a
HK$2.8bn portion of another HK$3.5bn one-
year bridge loan that was due last November.
The extended portion comes due in February.
That loan funded the group’s first acquisition
of a land plot in Kai Tak for HK$8.84bn in
November 2016.
Beside the two extended loans, HNA has
two other bridge facilities – a HK$2.6bn
borrowing due next month and a HK$2.22bn
financing due in June this year – used to
purchase two more plots of land in the same
area.
HNA is in talks with Hong Kong
developers and real estate funds, includingSun Hung Kai Properties, to refinance these
loans and fund the development of the four
plots.
The aviation-to-financial services
conglomerate came under growing financing
pressure after Chinese authorities ordered
major banks in June 2017 to review their
credit exposure to HNA and a handful of
other private enterprises that had been on
aggressive overseas acquisition binges.
Reuters reported on Monday that some
airlines affiliated with HNA were delaying
aircraft lease payments to lessors, and
Export-Import Bank of China, a long-term
financier of the group, had formed a team to
handle the conglomerate’s liquidity issues.
YAN JIANG