STRUCTURED FINANCE
› RESIMAC MARKETS NON-CON RMBS
Non-bank lender RESIMAC has mandated
Deutsche Bank , CBA , Macquarie and NAB
for a potential issue off its Bastille non-
conforming RMBS programme.
Resimac sold its previous and fifth
offering of non-conforming RMBS on
August 5 last year via the A$750m Resimac
Bastille Trust Series 2016-1NC.
Its last prime RMBS was printed in late
July 2017, a A$750m trade through Resimac
Premier Trust 2017–2.
CHINA
DEBT CAPITAL MARKETS
› PSBC RELIES ON PRC INVESTORS
POSTAL SAVINGS BANK OF CHINA (A2/A/A+) relied
heavily on mainland investors for its
jumbo US$7.25bn offering of Additional
Tier 1 non-cumulative perpetual offshore
preference shares.
Geographically, 70% of the bonds
went to investors in China, 27% went to
Asia ex-China and 3% went to European
accounts. As for investor types, 52% were
banks, a combined 19% were corporate
investors and others, 17% were fund
managers, 8% were private banks and 4%
were insurers.
Final orders were not made known, but
the last update prior to the release of final
guidance had demand of over US$13bn.
The state-run bank, China’s sixth-largest
lender in asset terms, priced the perpetual
non-call five notes at par to yield 4.50%,
the tight end of final guidance of 4.55%
area (plus or minus 5bp), and 35bp tighter
than the initial 4.85% area.
Hong Kong-listed China Oceanwide
International Financial said it had bought
US$50m of the AT1s, while Huarong
International Financial Holdings disclosed
that it had purchased US$90m worth.
CICC HK Securities , Goldman Sachs , JP
Morgan , UBS , Morgan Stanley , Bank of
America Merrill Lynch , ICBC (Asia) , Haitong
International , HSBC and DBS Bank were
joint global coordinators on the AT1
offering.
The 10 banks were also joint
bookrunners and joint lead managers
with CCB International , Citic CLSA Securities ,
Ping An of China Securities (Hong Kong) ,
Standard Chartered Bank , Huarong Financial ,
BOC International , China Merchants Securities
(HK) , Credit Agricole , Deutsche Bank , ABC
International , SinoPac Securities (Asia) and
ICBC International.› ZHENGZHOU LENDER GETS AT1 OKAYSBANK OF ZHENGZHOU said last Tuesday both the
China Banking Regulatory Commission’s
Henan office and the China Securities
Regulatory Commission had approved
its proposal to issue Additional Tier 1
capital non-cumulative perpetual offshore
preference shares of up to Rmb8bn
(US$1.2bn).
The CBRC and CSRC approvals took
the regional joint-stock commercial bank,
based in central Henan province, one step
closer to launching the issue.
According to a stock exchange filing,
the approval from the CSRC was dated
September 25 and Bank of Zhengzhou
received it a day later.
Earlier, sources familiar with the deal
said Bank of Zhengzhou initially wanted
to launch the AT1 offering as early
as September 22, the day after Postal
Savings Bank of China completed its mega
US$7.25bn print, if it could got the CSRC
approval earlier.
The Hong Kong-listed Chinese bank was
now likely to launch the offering after the
mainland’s week-long national holiday in
October, sources said.
The initial list of banks and brokerages
likely to be on Bank of Zhengzhou’s
issue include CMB International , UBS , Citic
CLSA Securities , BOC , Industrial Securities
International , SPDB International , CCB
International , Haitong International , ICBC ,
Zhongtai International , CICC HK Securities ,
Yue Xiu Securities , Orient Securities Hong Kong ,
Southwest Securities , Central China International ,
Shanghai Pudong Development Bank’s Hong Kong
branch , China Merchants Securities (HK) , BNP
Paribas and Shangrong Financial , according to
the sources.
The list is not final and may change.
As of end-June, Bank of Zhengzhou’s
Core Tier 1 capital adequacy ratio stood at
8.59%.› OCT DRAWS FOUR TIMES AS MUCHOVERSEAS CHINESE TOWN ENTERPRISES drew an
order book of US$3.3bn from 118 accounts
for US$800m of perpetual notes.
The unrated Reg S securities priced at
4.30%, inside final guidance of 4.35%, plus
or minus 5bp. Initial guidance was in the
4.75% area. Orders, including interest from
lead managers, had reached US$3.7bn in
the afternoon in Hong Kong.
The majority of the notes was allocated
to Asia, with only 4% distributed to non-
Asian investors.In terms of investor types, 50% were
funds and insurers, 45% were banks and the
rest were private banks, corporations and
others.
The senior unsecured perpetual bonds
come with a call option after three years.
Overseas Chinese Town (Asia) Holdings
will issue the bonds, which have a
guarantee from Overseas Chinese Town
and are unrated.
The bonds reset every three years to the
initial spread over Treasuries. The coupon
will step up by 500bp if the bonds are not
called after three years.
China Everbright Bank Hong Kong branch ,
ICBC International and DBS were joint
global coordinators. They were also joint
bookrunners with China Industrial Securities
International , China Merchants Securities (HK) ,
Guotai Junan International , Industrial Bank ,
Hong Kong branch , and OCBC.
The company, which has businesses that
include travel and paper packaging, has
said it is also exploring opportunities to
invest in industrial funds.
The guarantor is an entity directly
under the supervision of the State-owned
Assets Supervision and Administration
Commission of the State Council.› SHOUGANG MEETS WITH SURE DEMANDSHOUGANG GROUP , rated A–/A (Fitch/Dagong
HK), drew final orders of over US$2.8bn
from 145 accounts for US$400m of US
dollar bonds.
The Chinese steelmaker priced the
five-year notes, with a coupon of 3.375%,
at 99.531 to yield 3.478%, translating to a
spread of 162.5bp wide of Treasuries, the
tight end of final guidance of 165bp (plus
or minus 2.5bp) and well inside the initial
195bp area.
Geographically, Singapore took 35% of
the notes, Hong Kong got 35%, rest of Asia
got 20% and EMEA got 10%. In terms of
investor types, 57% were fund managers,
26% were banks, a combined 7% were
agencies and insurers, while 10% were
private banks and others.
Wholly owned subsidiary Voyage Bonds
is the issuer and Shougang, a company
under the control of the Beijing municipal
government, is the guarantor. The Reg S
senior unsecured bonds are expected to
have a Fitch rating of A–.
Proceeds will be used for overseas
business development.
DBS , Bank of China , BNP Paribas and China
Merchants Securities (HK) were joint global
coordinators and bookrunners.
Shougang is active in the reform of
China’s iron and steel industry, the
development of city infrastructure and
provision of public services. It is closely