24 International Financing Review Asia November 25 2017The Reg S notes have an expected
rating of Baa3 from Moody’s, on par with
Orient Securities. Proceeds will be used for
offshore debt refinancing, working capital
and general corporate purposes.
Orient Securities (Hong Kong), BOC
International, Citigroup, China Minsheng
Banking, Hong Kong branch, and Ping An of
China Securities (Hong Kong) were joint global
coordinators.
They were also joint bookrunners and
joint lead managers with China Citic Bank
International, China Industrial Securities
International, ICBC International, Haitong
International, Nomura, Shanghai Pudong
Development Bank, Hong Kong branch, SPDB
International and Zhongtai International.
Orient Securities first tapped the
international bond market in November
2014, raising Rmb900m from the sale of
6.50% three-year Dim Sums via an offshore
unit.› TIMES PROPERTY PRICES NOTESTIMES PROPERTY (B1/B+/B+) on Wednesday
priced US$300m of 5.25-year non-call threebonds at 99.9 with a coupon of 6.600% to
yield 6.625%.
This was the tight end of the final
guidance of 6.625%–6.750%, and inside the
initial 6.875% area.
Final distribution figures were not
disclosed, but orders were heard to be over
US$1.07bn, including interest from the
joint lead managers, when final guidance
was announced. The issue size was capped
at US$300m.
The notes are expected to be rated B2/B/
B+.
Deutsche Bank, UBS, Citigroup, China
Industrial Securities International, Guotai Junan
International, Haitong International, ICBC
International and SPDB International were
joint bookrunners.
Proceeds will be used to refinance
some of the Chinese property developer’s
existing debt.› BINHAI RAISES THREE-YEAR FUNDSBINHAI INVESTMENT, rated Ba1/BBB– (Moody’s/
Fitch), priced US$300m of three-year
senior unsecured bonds at par to yield4.45%, after attracting orders of more
than US$1.2bn from 81 accounts.
Pricing was at the tight end of final
guidance of 4.45%–4.50%, and well inside
the initial 4.7% area.
The bonds, expected to be rated BBB–
(Fitch), will carry a letter of support from
Tianjin Teda Investment Holding, the
issuer’s controlling shareholder.
Comparable credits Lianyungang Port
Group and Zhuzhou City Construction
Development Group, rated BBB– (S&P) and
Baa3/BBB– (Moody’s/Fitch), had October
2019s and April 2020s, respectively, both
seen at yields of around 3.9%.
Asia bought 97% of the Reg S bonds and
European accounts purchased 3%. In terms
of investor types, a combined 50% were
fund managers, asset managers and hedge
funds, a total of 35% were banks, sovereign
investors and insurers and 15% were
private banks.
Guotai Junan International and Standard
Chartered were joint global coordinators and
bookrunners on the Reg S offering.
Hong Kong-listed Binhai is mainly
involved in the city gas distribution andChexim extends curve with dual benchmark
Bonds Chinese policy bank adds longer dollar tranche on strong demandEXPORT-IMPORT BANK OF CHINA (A1/A+/A+)
priced around US$3.3bn of bonds across two
currencies and four tenors on Tuesday, taking
its curve out to 30 years.
A US$750m five-year tranche priced at US
Treasuries plus 80bp, from initial thoughts of
100bp area, while a US$600m 10-year priced
at Treasuries plus 100bp, from 120bp area.
When the mandate was announced on
Monday, Chexim was set on five and 10-year
dollar tenors, but was open to adding a 30-
year tranche.
On the back of significant expressions
of interest from investors, it came out with
all three tranches. The US$750m 30-
year tranche priced at par to yield 4.0%,
tightening from initial thoughts of 4.2% area.
One of the leads estimated that the five-
year had priced flat to the curve, while the
10-year had paid at most a couple of basis
points concession.
Notably, Chexim managed to maintain
the shape of its curve during bookbuilding,
keeping a 20bp gap between the 5s and
10s. In some other recent deals, the two
have moved apart as bond prices moved in
secondary trading. For instance, in China
State Construction’s deal on Tuesday, initial
guidance for the 5 and 10-year tranchesstarted at Treasuries plus 150bp area and
170bp area, respectively, 20bp apart, before
pricing at 128bp and 155bp, 27bp apart.
Orders totalled over US$1.6bn for the
five-year from 63 accounts. Asian investors
bought 73% of the Reg S notes, EMEA
accounts bought 26% and offshore US
investors took 1%. By investor type, banks
bought 60%, fund managers and asset
managers booked a combined 13%, central
banks, sovereigns, supranationals and
agencies took a combined 21%, corporate
investors bought 3%, and private banks and
others took 3% in total.
Orders topped US$1.2bn for the 10-year
from 65 accounts. Asia bought 68%, EMEA
31% and offshore US 1%. By investor type,
banks bought 54%, fund managers and asset
managers booked a combined 24%, central
banks and SSAs took a combined 14%, life
insurers bought 7%, and private banks and
others booked a combined 1%.
The 30-year attracted orders of over
US$900m from 49 accounts. Asia bought
89% of the notes and EMEA investors took
11%. By investor type, life insurers bought
53%, fund managers and asset managers
booked a combined 31%, banks took 6%, and
others bought 10%.A €1bn (US$1.2bn) 5.5-year euro tranche
priced at mid-swaps plus 60bp, from initial
thoughts of plus 75bp–80bp, drawing orders
of over €1.4bn (US$1.7bn) from 78 accounts.
Europeans bought 52% of the notes, Asians
purchased 35% and offshore US investors
took 13%. In terms of investor type, 41% were
banks, a combined 23% were central banks,
sovereigns, supranationals and agencies, 7%
were corporate investors, a total of 28% were
fund managers, pension funds and insurers,
and 1% were private banks and others.
Bank of China, Barclays, Bank of
Communications, Credit Agricole, CCB Europe,
DBS Bank, ING, KGI Asia, Mizuho Securities,
MUFG, and Westpac Banking Corp were joint
bookrunners on the US dollar five and 10-
year tranches. Bank of China, Barclays, Bank
of Communications, Credit Agricole, ING,
KGI Asia, Mizuho Securities and MUFG were
bookrunners for the 30-year.
Bank of China, Barclays, Bank of
Communications, Credit Agricole, China
Construction Bank Europe, Commerzbank,
HSBC, ING and MUFG were joint bookrunners
and joint lead managers on the euro tranche.
The notes have expected ratings of A1/A+
(Moody’s/S&P).
DANIEL STANTON1019_06 Country01.indd 24 24/11/2017 21:56:01