International Financing Review Asia November 25 2017 25COUNTRY REPORT CHINAgas pipe connection businesses in China.
Tianjin Teda is a wholly owned unit of
the State-owned Assets Supervision and
Administration Commission of Tianjin
Municipality.› TIANQI LITHIUM PRINTS DOLLARSTIANQI LITHIUM, rated Baa3 (Moody’s), priced
US$300m of five-year US dollar senior
unsecured bonds at 99.527 with a coupon
of 3.750% to yield 3.855%.
That was equivalent to US Treasuries
plus 180bp, in line with final guidance and
inside the initial plus 210bp area.
The issue drew total orders of over
US$1.9bn from more than 142 accounts.
The size of the Reg S issue was capped at
US$300m.
Asian accounts bought 70% of the Reg
S notes and EU investors purchased 30%.
In terms of investor types, 81% were fund
managers, 16% were banks and 3% were
private banks.
Wholly owned offshore subsidiary Tianqi
Finco is the issuer of the notes and Tianqi
Lithium is the guarantor.
The bonds have expected rating of Baa3
from Moody’s.
The Shenzhen-listed company plans
to use proceeds for offshore projects and
general corporate purposes.
Citigroup and UBS were joint global
coordinators and joint bookrunners.
The Chinese company supplies lithium
products and is also involved in the
exploration and trade of the mineral. It
controls the world’s largest and highest-
grade spodumene reserves in Greenbushes,
Western Australia.› SIH PRINTS US$300M OF PERPETUALSSHENZHEN INTERNATIONAL HOLDINGS, rated
Baa2/BBB/BBB, has sold US$300m of US
dollar senior perpetual notes to invest in
integrated logistic hubs.
The Reg S perpetual non-call five notes
were priced at par to yield 3.95%, the tight
end of final guidance of 3.95%–4.00%; and
35bp below initial guidance in the 4.3%
area.
If the notes are not called after five
years, the distribution rate will reset to
the original spread of 185bp over five-year
Treasuries and step up by 500bp.
The notes have an expected rating of
Baa2 from Moody’s.
SIH is the logistic infrastructure
investment platform of the Shenzhen
state-owned Assets Supervision and
Administration Commission.
The Hong Kong-listed company will also
use proceeds for debt repayment and to
meet general working capital needs.HSBC, ING, MUFG, DBS Bank, Morgan Stanley
and UBS were joint lead managers and joint
bookrunners on the sale.› ANTON SETS MINIMUM YIELDANTON OILFIELD SERVICES has set a minimum
yield of 10% for its proposed issue of
new US dollar 2020 bonds, alongside an
exchange offer.
Holders of its existing US$243.25m
7.5% 2018 notes are eligible to exchange
them for new Reg S bonds at a rate of
US$1,018.75 in principal amount of new
paper for every US$1,000 of old notes. The
exchange offer ends on Monday.
The Chinese oilfield services provider
also aims to raise new money from a
concurrent offering of an additional
tranche of the bonds.
Nomura is dealer manager for the
exchange and sole global coordinator for
the new issue.› OCEANWIDE PLANS MORE ISSUANCEChinese property developer OCEANWIDE
HOLDINGS, with ratings of B– (negative) from
S&P and B (negative) from Fitch, priced
US$300m of 1.5-year US dollar senior bonds
last Tuesday at par to yield 8.50% for a
private placement.
An Oceanwide official told IFR Asia the
company still had some offshore debt
issuance quota after the latest trade and
would look into opportunities to issue more
offshore bonds this year, subject to market
conditions.
The offshore bond quota the company
got from the National Development and
Reform Commission will expire at the end
of this year. The official did not disclose the
exact number of the quota.
The latest Reg S issue has B rating from
Fitch.
The notes are issued in the name of
Oceanwide Holdings International 2017,
a wholly owned offshore subsidiary, with
the Shenzhen-listed parent company
providing an unconditional and irrevocable
guarantee.
Proceeds will be used for offshore debt
refinancing.
Haitong International and Oceanwide
Securities were joint global coordinators, as
well as joint bookrunners and joint lead
managers with Orient Securities (Hong Kong).
Fitch said Oceanwide’s rating was
constrained due to a rapid increase in
leverage, which was likely to remain high
for the next 18–24 months as the company
“ramps up development expenditure to
support sales growth and continues to
invest in its finance business”.
Oceanwide’s leverage, as measured bynet debt to adjusted inventory and after
deconsolidating debt from the financial
business, reached 92% in 2016 (versus 86%
in 2015), higher than that of its B rated
peers, according to Fitch.› YIWU SCO HIRES FOR DOLLAR ISSUEYIWU STATE-OWNED CAPITAL OPERATION, rated Baa3/
BBB (Moody’s/Fitch), has hired Standard
Chartered and Guosen Securities (HK) as joint
global coordinators for an offering of US
dollar bonds.
The JGCs also serve as joint lead
managers and bookrunners with Bank of
China.
Meetings with fixed-income investors in
Hong Kong, Singapore and London took
place last week for senior unsecured Reg S
bonds.
The bonds, to be issued in the name of
wholly owned BVI subsidiary Chouzhou
International Investment, will have the
benefit of a guarantee from Yiwu.
The proposed issue has initial ratings on
par with the those on the issuer.› CGN MANDATES BANKS FOR DOUBLECHINA GENERAL NUCLEAR POWER CORP, rated
A3/A–/A+, has mandated Bank of China, BNP
Paribas, Credit Agricole and ICBC as joint
global coordinators for US dollar and euro
offerings.
Agricultural Bank of China, Hong Kong branch,
China Construction Bank (Asia) and Societe
Generale are joint lead managers and joint
bookrunners.
CGN will meet fixed-income investors
in Asia and Europe from Monday for a
proposed offering of five-year and/or 10-year
US dollar senior unsecured notes and five-
year to seven-year euro Green bonds, both of
which will be issued in the Reg S format.
Credit Agricole is the Green structuring
adviser on the euro senior unsecured Green
notes.
The State-Owned Assets Supervision and
Administration Commission (SASAC) has
jurisdiction over CGN.› LIAONING FANGDA READIES OFFERINGLIAONING FANGDA GROUP INDUSTRIAL held investor
meetings and calls last week, ahead of a
proposed offering of US dollar bonds.
It hired China Everbright Bank, Hong Kong
branch, Wing Lung Bank, BOC International
and Guotai Junan International as joint global
coordinators.
The JGCs are also joint bookrunners
with China Merchants Securities (HK), Guoyuan
Capital (HK) and Fortune Securities.
An offering of US dollar senior unsecured
Reg S bonds may follow, subject to market1019_06 Country01.indd 25 24/11/2017 21:56:01