COUNTRY REPORT CHINA“The company wants to update its latest
operations and financial situation with the
investors,” said a source. “Whether a [bond]
deal will be launched is yet to be decided.”
Another source said Maoye had applied
to the National Development and Reform
Commission to issue offshore bonds, but
had not yet received approval. It is now
mulling whether or not to issue US dollar
bonds at a tenor of less than one year in the
near future since this kind of short-term
bonds does not need to be registered with
the country’s top economic planner.
The issue size might be around US$200m
if demand warranted, the source said.
Maoye refinanced US$300m 7.75% US
dollar senior notes in the second quarter of
this year and has no outstanding US dollar
bonds.
On September 6, Moody’s upgraded the
Hong Kong-listed company’s corporate
family rating to B3 from Caa1 and changed
the outlook to stable from negative.
“The upgrade reflects our expectation that
Maoye will be able to manage the refinancing
of its short-term debt, execute property sales
to raise operating cashflow, and slow its pace
of acquisitions,” Moody’s wrote.
Moody’s expects Maoye’s debt leverage,
based on its debt-to-Ebitda ratio, will
improve to around 6.5x–7.5x over the next
12–18 months, compared with 9.1x as at
end-December 2016.› HANG LUNG LOOKS TO PANDASHANG LUNG PROPERTIES plans to raise up to
Rmb10bn from Panda bonds in China’s
interbank bond market.
The Hong Kong-incorporated and listed
company has filed to register a Rmb10bn
Panda bonds programme with theNational Association of Financial Market
Institutional Investors.
The first issue under the programme
is involve Rmb2bn of three-year notes,
according to a preliminary filing.
Proceeds will be used to develop its
commercial real-estate projects in China.
Bank of China has been hired as lead
underwriter on the offering with China
Construction Bank as joint lead underwriter.› PHILIPPINES PITCHES PANDAS IN CHINAOfficials from the PHILIPPINES visited China
last week to pitch a planned offering of
renminbi Panda bonds and to discuss
investment opportunities in the country’s
infrastructure projects.
An economic team, led by Finance
Secretary Carlos Dominguez III, met
Chinese government officials lastARE YOUR COLLEAGUES AS
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