International Financing Review Asia November 25 2017 23COUNTRY REPORT CHINArelationship banks of Alinta’s Hong Kong
parent, Chow Tai Fook Enterprises.
Alinta is paying over A$1.1bn for the
power plant, with the gearing at around
70%. Financial close is expected before
Christmas.
The 953MW Loy Yang B power plant is
the newest and most efficient coal-fired
generator in Victoria state. The acquisition
will give Alinta a reliable source of power
generation on the east coast of Australia to
supply to its energy retail customers.CHINA
DEBT CAPITAL MARKETS
› CHINA REFORM MEETING INVESTORSState-owned CHINA REFORM HOLDINGS
CORPORATION has hired four banks to arrange
meetings with fixed-income investors in
Hong Kong, starting Monday.
The four banks are CCB International, Citic
CLSA Securities, Guotai Junan International and
ICBC (Asia).
China Reform aims to issue US$500m of
Reg S US dollar bonds on receiving approval
from the National Development and
Reform Commission, according to market
source.
China Reform is one of China’s two
pilot central government-owned asset
management and investment companies.
The other one is China Chengtong Holdings
Group.
China Reform is mainly engaged
in promoting the central state-owned
enterprise’s reform and restructuring
process, assisting in enhancing their core
competences and participating in their IPOs
or non-public joint stock reforms, according
to the company’s website. It also makes
strategic investments in new emerging
industries, as well as other sectors related
to national security and economic lifelines.
In August, China Chengtong priced
US$500m 3.625% of five-year US dollar
senior unsecured notes at Treasuries plus
182.5bp.› QDCCI COMPLETES US$800M PRINTQINGDAO CITY CONSTRUCTION INVESTMENT (GROUP),
rated BBB/BBB+ (S&P/Fitch), has drawn final
orders of over US$1.475bn for US$800m
of US dollar senior unsecured notes in two
tranches.
The investment and financing arm of
the eastern coastal city of Qingdao priced
a US$300m 3.75% three-year tranche at99.843 to yield 3.806% and a US$500m
4.25% five-year tranche at 99.844 to yield
4.285%. The prices translate to spreads of
195bp and 220bp wide of Treasuries, well
inside initial guidance of 215bp area and
240bp area, respectively.
The three-year notes drew final orders of
over US$650m across 75 accounts. Asia took
97% of the notes and EMEA got 3%. In terms
of investor types, 46% were fund managers,
42% were banks, 8% were insurers and the
rest were private banks.
Final orders of the five-year notes came
in at US$825m from over 70 accounts.
Asia took 87% of the notes and EMEA took
13%. In terms of investor types, 64% were
fund managers, 26% were banks, 8% were
insurers, and 2% were private banks.
Hongkong International (Qingdao) is the
issuer of the Reg S notes and Qingdao City
Construction Investment is the provider
of keepwell deed, deed of equity interest
purchase undertaking and standby facility
agreement.
The notes are expected to score a
BBB+ Fitch rating. Proceeds will be used
for financing the development of group
projects and investments, debt refinancing
and working capital.
ANZ, Industrial Bank Hong Kong branch,
and Zhongtai International were joint global
coordinators on the issue, as well as joint
bookrunners with Bank of China and BNP
Paribas.› CSCI PRINTS US$800M TWO-TRANCHERCHINA STATE CONSTRUCTION INTERNATIONAL HOLDINGS
has drawn final orders of over US$1.4bn
for US$800m of US dollar senior unsecured
notes in two tranches.
The Hong Kong-listed company priced
US$550m of 3.375% five-year notes at
99.982 to yield 3.379% and US$250m of
3.875% 10-year paper at 99.688 to yield
3.913%. The prices translate to respective
spreads of 128bp and 155bp wide of
Treasuries, well inside initial guidance of
150bp area and 170bp area.
The five-year notes drew final orders
of over US$950m across 75 accounts. Asia
Pacific took 94% of the notes and EMEA 6%.
In terms of investor types, 51% were banks,
41% were fund managers, 5% were private
banks and 3% were others.
The 10-year notes compiled orders of
over US$450m from 40 accounts. Asia
Pacific took 92% of the notes and EMEA
8%. In terms of investor types, 41% were
fund managers, 32% were banks, 25% were
insurers and 2% were others.
Wholly owned subsidiary China State
Construction Finance (Cayman) II is the
issuer and China State Construction
International is the parent guarantor.The Reg S notes are expected to be rated
Baa2/BBB+ (Moody’s/Fitch), on par with the
guarantor.
The Chinese building construction and
civil engineering operations company plans
to use proceeds to repay or refinance debt,
for new and existing projects, as well as for
general corporate purposes.
Bank of America Merrill Lynch, Bank of China
(Hong Kong) and CCB International were joint
global coordinators. They were also joint
bookrunners with Credit Suisse.› AGILE WINS AMENDMENT APPROVALAGILE GROUP HOLDINGS won approval from
bondholders to amend certain terms on its
US$500m 9.00% notes due 2020 to make
them consistent with the terms of the
paper it printed earlier this year.
Holders of the 2015-issued 2020s,
agreeing to the changes, will receive US$2
per US$1,000 in principal amount. Standard
Chartered Bank and HSBC were consent
solicitation agents for the amendment.
In August this year, the Chinese property
developer issued US$200m 5.125% five-year
non-call three senior notes.› TEWOO BACKS NOTES WITH SBLCTEWOO GROUP put out price guidance in the
155bp area over US Treasuries on Friday
for US dollar three-year senior unsecured
bonds backed against a standby letter of
credit from the Tianjin branch of ICBC.
The size of the Reg S issue is capped at
US$500m. Wholly owned special-purpose
vehicle Tewoo Group No 4 will issue the
notes, which will come with a keepwell
deed from the company. The bonds are
expected to score a A1 rating from Moody’s.
ICBC (Asia) and Barclays were joint global
coordinators and bookrunners.
Final pricing of the notes had not been
announced at time of writing.› ORIENTSEC MAKES DOLLAR DEBUTHong Kong-listed Chinese brokerage DFZQ,
better known as ORIENT SECURITIES, priced last
Wednesday US$500m of maiden US dollar
bonds, attracting final orders of US$1.145bn
from 35 accounts.
The five-year bonds, carrying a coupon
of 3.625%, were priced at 99.187 to yield
3.805%, or 170bp wide of Treasuries. That
was the tight end of final guidance and
20bp inside from the initial 190bp area.
Of the notes, 99% went to Asia and 1% to
EMEA. In terms of investor types, 90% were
banks and 10% were asset managers.
Wholly owned subsidiary Orient HuiZhi
is the issuer of the notes and Orient
Securities is the guarantor.1019_06 Country01.indd 23 24/11/2017 21:56:01