their entitlements. The retail offer runs on
October 16-25.
UBS is lead manager on the issue.
› AOF COMPLETES INSTO RIGHTS OFFER
AUSTRALIAN UNITY OFFICE FUND (AOF) has
completed the institutional portion of
its A$50m rights offer, according to a
statement from the REIT.
The institutional portion raised half the
total amount, with proceeds slated to part-
fund the purchase of a new property in
Brisbane.
The 1-for-6.25 non-renounceable offer is
priced at A$2.23 per unit, which represents
a 1.8% discount to the October 9 close.
Affiliates of AOF’s largest unit-holder,
Australian Unity, which have roughly 13.8%
of units on issue, committed to maintain
their pro-rata holding. The institutional
raising had a 90% take-up rate.
The purchase of 150 Charlotte Street in
Brisbane will cost roughly A$105m and be
funded with proceeds from the rights issue
and a A$70m debt extension. The retail
offer runs on October 16–30.
Credit Suisse and UBS are underwriting the
offer.
CHINA
DEBT CAPITAL MARKETS
› CHINA UNVEILS TENORS FOR DOLLARS
The PEOPLE’S REPUBLIC OF CHINA will issue soon
in Hong Kong US$2bn of dual-tranche
sovereign bonds in its first US dollar
offering since 2004.
The issue would be split into US$1bn
of five-year and US$1bn of 10-year notes,
the Ministry of Finance said last week in a
statement on its official website.
It did not specify the timing for the
offering, but said the notes would be issued
and listed in Hong Kong.
Last month, S&P cut China’s long-term
sovereign credit ratings one notch to A+
from AA–, saying its prolonged period
of strong credit growth had increased
economic and financial risks.
The move put S&P’s ratings in line with
those from Fitch and Moody’s.
› SINGYES RAISES 364-DAY FUNDS
CHINA SINGYES SOLAR TECHNOLOGIES HOLDINGS has
priced US$160m 364-day US dollar senior
unrated notes at par to yield 6.75%.
Pricing was at the tight end of final
guidance of 6.75%–6.875%, and below the
initial low 7%.
The Reg S issue attracted final orders of
US$380m from 33 accounts. Asian investors
bought 99% of the notes and European
accounts purchased 1%. Asset managers and
fund managers bought a combined 70%,
banks took 15% and private banks were
allocated 15%.
BOC International, HSBC and Guotai Junan
International were joint global coordinators,
lead managers and bookrunners.
Hong Kong-listed China Singyes Solar
operates solar power farms.
Proceeds from the issue will be used for
debt refinancing and working capital.› YOUYUAN SELLS US$50M FLOATERSYOUYUAN INTERNATIONAL HOLDINGS said last
Thursday it had agreed to issue to CCB
International (Holdings) US dollar floating-
rate notes due 2019 to raise up to US$50m.
The notes would pay an interest rate of
one-year Hibor plus 3.62% per annum, the
Hong Kong-listed Chinese wrapping tissue
paper manufacturer said in a statement.
The company intends to use the proceeds
to acquire equity interest in wallpaper
maker Xin Wing Enterprises, as announced
in May, and for general working capital.› APPROVAL FOR LENDER'S OFFSHORE AT1BANK OF JINZHOU, a Chinese city commercial
bank, has registered with the National
Development and Reform Commission to
issue offshore bonds.
China’s state planning agency announced
the approval for the lender’s planned
issuance last Monday without specifying
the currency.
The bank said in March that it planned
to raise up to Rmb10bn (US$1.45bn) from
an offshore preference shares offering to
replenish its Additional Tier 1 capital.
Apart from Bank of Jinzhou, the NDRC
said it also accepted the registration of five
other Chinese firms for offshore bonds.
The five are CHINA EASTERN AIRLINES GROUP,
GANSU PROVINCIAL HIGHWAY AVIATION TOURISM
INVESTMENT GROUP, BLACK PEONY (GROUP), SICHUAN
TIANQI LITHIUM INDUSTRIES and ZUNYI TOURISM
DEVELOPMENT & INVESTMENT GROUP.› YIHUA MEETS INVESTORS FOR DOLLARSChinese home-furnishings manufacturer
YIHUA ENTERPRISE (GROUP), rated B2/B (Moody’s/
S&P), met investors in Singapore on
October 6 and Hong Kong on October 9
for a proposed Reg S offering of US dollar
senior unsecured notes.
The privately owned company has
received a US$250m offshore bond quotafrom the National Development and
Reform Commission, according to a source
close to the process.
The notes have expected ratings of
B3/B– (Moody’s/S&P). The issuer will be
wholly owned subsidiary Yihua Overseas
Investment and Yihua Group will be the
guarantor.
Proceeds will be used for debt
refinancing, working capital and general
corporate purposes.
BoCom International is sole global
coordinator and sole lead manager on the
issue. It will also act as joint bookrunner
with Industrial Bank, Hong Kong branch.
Yihua Group, based at Shantou, in
southern Guangdong province, also
has businesses in healthcare, property
development and financial investments. It
owns 29% of Shanghai-listed Yihua Lifestyle
Technology and 37% of Shenzhen-listed
Yihua Healthcare.› CDBL HIRES FOR DOLLAR SENIORCHINA DEVELOPMENT BANK FINANCIAL LEASING (A1/A/
A+) has hired banks for a proposed offering
of US dollar senior notes under it newly
established US$3bn medium-term notes
programme.
Goldman Sachs, HSBC and Standard
Chartered Bank are joint global coordinators,
as well as joint bookrunners and joint lead
managers with Bank of China, Bank of China
(Hong Kong), BoCom HK branch, Credit Agricole,
Citigroup, Natixis, JP Morgan and Westpac
Banking Corp.
CDB Financial Leasing met investors in
Hong Kong, Singapore and London, starting
last Thursday.
CDBL Funding 1 will be issuer of the Reg
S notes, with guarantees from CDB Aviation
Lease Finance Designated Activity. Both the
issuer and the guarantor are wholly owned
subsidiaries of CDB Financial Leasing.
The notes will have the benefit of a
keepwell and asset purchase deed from
CDB Financial Leasing.
The notes have expected ratings of A2/A+
(Moody’s/Fitch).› TEWOO READIES 359-DAY DOLLAR NOTESTEWOO GROUP, rated BBB– (Fitch), has hired
banks for a proposed offering of 359-day US
dollar senior unsecured notes.
Barclays, ICBC (Asia), Bank of China and
China Citic Bank International are joint global
coordinators, as well as joint bookrunners
and joint lead managers with DBS Bank, UBS,
AMTD and CCB Singapore.
The Tianjin-based commodities trading and
logistics group met investors in Singapore
and Hong Kong from last Thursday.
The unrated Reg S notes will be issued