COUNTRY REPORT CHINAcommitments of US$30m or more earn an
all-in pricing of 195bp via an upfront fee of
60bp, while lead arrangers with US$15m-
$29m commitments get an all-in pricing of
188.33bp via a 40bp fee.
Unis Leasing is the borrower and
Unisplendour is the guarantor.
Funds are for general corporate purposes
and refinancing. Commitments are due on
October 31.
In March, Unis Leasing’s ultimate parent
- state-owned Tsinghua Unigroup – more
than doubled its maiden offshore deal to
US$701m via an offshore subsidiary. Bank
of China, Credit Suisse and StanChart were
the MLABs of that transaction, which paid a
top-level all-in pricing of 263.33bp based on
a margin of 220bp.
› HNA SIGNS ADBC CREDIT LINE
HNA GROUP , one of the most acquisitive
Chinese buyers of overseas assets, signed
a Rmb30bn (US$4.5bn) credit line with
Agricultural Development Bank of China on
Wednesday, according to a company press
release.
The Chinese policy bank’s Hainan branch
is lending five-year money to fund HNA’s
development of infrastructure and logistics
projects in China, the press release said.
HNA CEO Adam Tan said on Tuesday
the company would keep investing in the
United States, one of its major overseas
markets, Reuters reported. HNA has been in
the spotlight together with other Chinese
conglomerates for the billions of dollars
splashed on marquee real estate properties
and global brands, as Beijing cracks downs
on what it deems excessive deals.
ADBC is the country’s major lender for
agri-business.› MUCF DRAWS DOZEN FOR DEBUTMERCHANTS UNION CONSUMER FINANCE is expected
to double the size of its maiden loan to
Rmb1.2bn from an initial Rmb600m on
heavy oversubscription.
A dozen banks have committed over
Rmb1bn combined in general syndication.
Fubon Bank (China) is the sole mandated
lead arranger and bookrunner.
The loan offered a top-level all-in pricing
of 115bp, based on an interest margin
of 100bp over the one-year Shanghai
interbank offered rate (Shibor), the first
time a Chinese borrower has used it to
target foreign lenders.
The facility s expected to be signed next
month. Funds are for working capital and
refinancing.The borrower is a 50–50 joint venture
between Wing Lung Bank, part of China
Merchants Bank, and telecom giant China
United Network Communications Group, or
China Unicom.› FAF (CHINA) BACK FOR RMB1.5BNFORD AUTOMOTIVE FINANCE (CHINA) is returning
to the onshore market for a Rmb1.5bn
three-year revolving credit facility, three
years after completing a Rmb2bn onshore
borrowing.
DBS Bank (China) , Standard Chartered and
Sumitomo Mitsui Banking Corp (China) are
mandated lead arrangers and bookrunners
on the latest financing, which pays an
interest margin of 108% of the one-year
PBoC rate.
MLAs joining with Rmb250m or more
will receive an all-in pricing of 113.5% of
the PBoC rate, via a 71.77bp participation
fee, lead arrangers with Rmb150m–
Rmb240m will earn an all-in of 112.5%
of the PBoC rate through a 58.72bp fee,
arrangers with Rmb100m–Rmb140m will
get an all-in of 111% of the PBoC rate based
on a 39.15bp fee, while managers with
Rmb50m–Rmb90m will earn an all-in of
110% of the PBoC rate via a 26.1bp fee.
A bank meeting will be held on
Wednesday in Shanghai. Commitments are
due on October 31.
Funds are for general corporate purposes.
The borrower obtained a Rmb2bn three-
year onshore term loan in September
2014 with MLABs Credit Agricole, DBS and
StanChart. That loan paid a top-level all-in
pricing of 110% of the PBoC rate via an
interest margin of 105% of the three-year
PBoC rate and a 90bp fee.
The borrower, a wholly owned unit of
Ford Motor Credit, provides auto loans
to consumers and car dealers to back the
purchase of cars that Ford Motor and its
affiliates make.EQUITY CAPITAL MARKETS
› RYB EDUCATION SEALS US LISTINGThe NYSE IPO of RYB EDUCATION , a provider of
pre-school education in China, has raised
US$144m.
The float, involving 7.8m American
depositary shares (5.5m primary), was
priced at US$18.50, slightly above the top
end of the indicative price range of US$16–
$18. Private equity firm Ascendent was the
selling shareholder.
The final price represents a 2018 P/E of
24.3.
The Beijing-based company, established
in 1998, runs learning centres andGoho AMC plans IPO in HK
Equities Local company meets banks listing plans to raise US$200m–$300mANHUI GOHO FINANCIAL ASSET MANAGEMENT plans
to list in Hong Kong next year, according to
people close to the process.
Goho, one of the first five local asset
management companies in China, met banks
last week to discuss its IPO plans, which could
raise about US$200m–$300m, according to
the people.
If it goes through, it will be the first float of
a Chinese AMC in the city.
Founded in 2014, Anhui-based Goho is one
of the first five local AMCs set up in China to
broaden efforts to manage corporate debts
and reduce the growing volume of bad loans
that pose a risk to the economy. The other
four local AMCs are in Jiangsu, Zhejiang,
Guangdong and Shanghai.
Prior to that, only four nationwide AMCs
were set up in 1999 to purchase non-
performing loans from the four biggest
state-owned banks. They are China Huarong
Asset Management, China Orient Asset
Management, China Cinda Asset Management
and China Great Wall Asset Management.
In response to growing concerns overmounting debts, the China Banking
Regulatory Commission late last year relaxed
the rules allowing just one local AMC per
province. The regulator also allowed local
AMCs to sell non-performing assets to
others and there are now no geographical
restrictions on the buyer.
With the set-up of a growing number of
AMCs, the intense competition in the industry
has prompted market players to look for
cheap funding. Going public is one way of
doing it.
“The (Goho) deal is not big, but, if it could
be done, more fund-hungry local AMCs
would look at Hong Kong as a possible listing
venue,” said a banker pitching for the deal.
There are currently more than 40 local
AMCs in China. So far, only Cinda AMC and
Huarong AMC are listed in Hong Kong. Orient
AMC and Great Wall AMC are sealing pre-IPO
investments before going public in 2018.
Orient AMC established GoHo AMC. The
company also has the backing of private
capital, including China Poly Group.
FIONA LAU