Sea, Xinda (HK) Trading and Al Composites
Materials FZE were the guarantors.
China XD manages more than 10
operating subsidiaries in Dubai, Hong Kong,
Heilongjiang and Sichuan through Xinda
Holding (HK). The company makes modified
plastics for automotive applications in
China and Dubai.
› YONGDA DEBUTS FOR RMB800M
Car dealership China Yongda Automobiles
Services Holdings has launched a maiden
three-year term loan of Rmb800m
(US$124m).
Mandated lead arrangers and
bookrunners DBS Bank and Hang Seng Bank
launched the loan eary last week. The
facility offers an interest margin of 105%
of the PBoC rate and has an average life of
2.825 years.
Banks committing Rmb300m or more
get the MLA title and all-in pricing of 112%
of the PBoC rate, via an upfront fee of
70bp, those joining with Rmb200m–299m
get the lead arranger title and an all-in of
111%, via a fee of 57bp, while those in with
Rmb100m–199m get the arranger title and
an all-in pricing of 110%, via a 44bp fee.
The all-in pricing includes an early-bird
fee of 23bp for commitments on or before
November 10.
The borrower is SHANGHAI YONGDA INVESTMENT
HOLDING GROUP, a subsidiary of China Yonga.
The parent is the guarantor.
Repayment will be in four semi-annual
instalments after an 18-month grace period:
5% (1–2), 10% (3) and 80% (4).
Hong Kong-listed China Yongda is mainly
engaged in auto sales, auto financing and
auto leasing.
› PAIFL SEEKS RMB600M FINANCING
PING AN INTERNATIONAL FINANCIAL LEASING (PAIFL)
is seeking a Rmb600m three-year term loan
for working capital, while a subsidiary is
raising US$300m offshore.
Standard Chartered is the mandated lead
arranger and bookrunner on the Rmb600m
loan, with an interest margin of 105% of
the PBoC rate.
Banks are invited to join the onshore
loan as MLAs with Rmb200m or above for
an all-in pricing of 112% of the PBoC rate, or
as lead arrangers with Rmb130m-Rmb199m
for an all-in of 111%, or as arrangers with
Rmb80m-Rmb129m for an all-in of 110%,
or as senior managers with Rmb30m-
Rmb79m for all-in of 109%. The due date for
commitments is October 29.
Receivables will serve as security for the
loan. Repayment will be in semi-annual
instalments after a 12-month grace period:
15% (1–4) and 40% (5).
Meanwhile, Deutsche Bank is the MLAB of
the US$300m three-year offshore loan for
Ping An Leasing Hong Kong Holdings, a
wholly owned unit of PAIFL. The parent is
the guarantor.
The facility offers a top-level all-in of
161.67bp over Libor, based on an interest
margin of 135bp. It has an unspecified
greenshoe option.
PAIFL last raised a Rmb4.2bn three-year
loan in the onshore market in April from
two Chinese banks at an interest margin of
90% of PBoC rate. The company is a wholly
owned subsidiary of Ping An Insurance
(Group) of China.EQUITY CAPITAL MARKETS
› QUDIAN TO CLOSE BOOKS EARLYChinese online microlender QUDIAN will
close books a day early for its NYSE IPO
of up to US$825m due to strong demand,
according to people close to the deal.
Books will now close on Monday instead
of Tuesday as originally planned. The
IPO will price after US market closes on
Tuesday.
The IPO, which is set to be the biggest
Chinese financial technology listing in the
US, comprises 37.5m American depositary
shares (95% primary/5% secondary) at an
indicative price range of US$19–$22 each.
Phoenix Entities, Kunlun Group, Source
Code Accelerate and Blue Run Entities are
the selling shareholders.
Qudian’s price range represents a 2018
P/E of 10.9–12.6. Smaller US-listed rival
Yirendai changes hands at a 2018 P/E of
about 12.7.
Qudian operates a website that allows
college students and young white-collar
workers to buy laptops, smartphones and
other consumer electronics on monthly
instalments.
Credit Suisse, CICC, Citigroup, Morgan Stanley
and UBS are joint bookrunners on the IPO.› CSPC PHARMA BUILDS WAR CHESTCSPC PHARMACEUTICAL GROUP has raised
HK$2.35bn (US$301m) from a placement
after pricing the shares at the lower half of
the indicative range.
The placement was launched with a base
size of 157m shares and an upsize option
of 32m at a price range of HK$12.38–$12.65
each. The size was fully increased as
189m shares were sold at HK$12.44 each,
representing a discount of 6.04% to the pre-
deal spot.
There is a 90-day lock-up on the
company.
HSBC was the sole bookrunner.› RISE EDUCATION LAUNCHES IPORISE EDUCATION has started bookbuilding for a
Nasdaq IPO of up to US$154m, with Credit
Suisse, Morgan Stanley and UBS as the joint
bookrunners.
The IPO, involving 11m American
Depositary Shares (45% primary/ 55%
secondary), is being marketed at an
indicative price range of US$12–$14.
The selling shareholders are Bain Capital
and Multi Union Resources.
The shares will be priced on October 19.
The Chinese education company’s
net income jumped 217% to Rmb58m
(US$8.8m) in the first six months of this
year from a year earlier, according to a
regulatory filing.
Rise provides after-school English
language programmes for students in China
aged between three and 18 years.› GF SECURITIES CONSIDERS SPIN-OFFChinese brokerage GF SECURITIES is
considering a spin-off of its Hong Kong
unit next year through an IPO of up to
US$300m, according to people close to the
plan.
The plan is at a preliminary stage and no
final decision has been made on whether
or not the spin-off will proceed, say the
people.
If the IPO proceeded, the firm could raise
about US$250m–$300m, one of the people
said.
It is understood that no banks has been
mandated at this stage.
A day after IFR’s report, GF Securities
said in an announcement that it had not
studied the possibilities to spin off its Hong
Kong business for listing and promised not
to make such listing plans for at least three
months.
Several Chinese brokerages have already
listed their Hong Kong operations. In
September 2016, Shanghai-listed Industrial
Securities listed Hong Kong business China
Industrial Securities International Financial
Group on Hong Kong’s Growth Enterprise
Market, the city’s second board, in a
HK$1.33bn IPO.
Haitong International Securities,
part of Haitong Securities, and Guotai
Junan International, under Guotai Junan
Securities, are both listed in Hong Kong.
According to the 2017 interim report
from Hong Kong-listed and Shenzhen-
listed GF Securities, GF Hong Kong
posted a net profit of Rmb194m for the
first six months of this year. The Hong
Kong arm earned Rmb127m in 2016.
GF Securities did not reply to emails from
IFR seeking confirmation of the potential
spin-off.