26 International Financing Review Asia November 25 2017conditions. Both the company and the
bonds are unrated.
The company operates mainly in the
steel and carbon businesses, but also has
interests in iron ore and coking, real estate
and the medical industries.› FEH HIRES FOR DOLLAR PERPFAR EAST HORIZON, rated BBB–/BBB– (S&P/
Fitch), has hired banks to arrange investor
meetings in Hong Kong and Singapore for
a proposed offering of US dollar perpetual
securities.
HSBC, Standard Chartered and UBS have
been named joint global coordinators,
joint bookrunners and joint lead managers.
Haitong Bank is also joint bookrunner.
An offering of Reg S US dollar
subordinated perpetual capital securities is
expected to follow.
Wholly owned subsidiary King Talent
Management will issue the securities,
while Far East Horizon will provide an
unconditional and irrevocable guarantee.
The securities are expected to be rated
BB (Fitch).
Far East Horizon is a Hong Kong-
headquartered financial services provider
and also has investments in industries like
healthcare and education.› GANSU HIGHWAY READIES EURO ISSUEGANSU PROVINCIAL HIGHWAY AVIATION TOURISM
INVESTMENT GROUP, rated BBB–/BBB– (S&P/
Fitch), has hired banks for a proposed
Reg S offering of three-year euro senior
unsecured bonds.
Bank of China, Barclays and Citigroup are
joint global coordinators, as well as joint
bookrunners and joint lead managers with
CCB International, Industrial Bank Hong Kong
branch, and Societe Generale.
The state-owned transportation
infrastructure company, under the control
of the Gansu provincial government,
started to meet fixed-income investors in
Hong Kong, London and Frankfurt from
Friday.
The proposed notes are expected to be
rated BBB–/BBB– (S&P/Fitch).› FORESTRY WORKS ON DOLLAR PERPState-owned CHINA FORESTRY GROUP CORP has
hired banks for a proposed Reg S offering
of US dollar senior guaranteed perpetual
capital securities.
CCB International, CCB Singapore and
Bank of China are joint global coordinators,
as well as joint lead managers and joint
bookrunners with Bank of Communications,
China Citic Bank International, China Merchants
Securities (HK) and Guosen Securities (HK).The only forestry corporation, the
State-owned Assets Supervision and
Administration Commission of the State
Council owns and control, met fixed-
income investors in Hong Kong last Friday.
The proposed perpetual notes will be
issued in the name of Overseas Forestry
and carry an unconditional and irrevocable
guaranteed from China Forestry Group.
Both China Forestry Group and the
proposed notes are unrated.
The company met investors in September
during a non-deal roadshow.› BLUEFOCUS READIES DOLLAR ISSUEChinese advertising agency BLUEFOCUS
COMMUNICATION hired Deutsche Bank and
HSBC as joint global coordinators and
bookrunners to arrange investor meetings
in Hong Kong and Singapore last week.
An offering of US dollar Reg S senior
bonds may follow, subject to market
conditions.
The notes are expected to be rated B1/B+
(Moody’s/Fitch), in line with the issuer.› NANJING YANGZI DOES DOUBLENANJING YANGZI STATE-OWNED ASSETS INVESTMENT
GROUP, rated Baa1/BBB+/A–, marketed on
Friday US dollar senior unsecured notes in
two tranches.
A five-year was indicated at initial price
guidance of US Treasuries plus 215bp area
and a 10-year at Treasuries plus 265bp area.
Final pricing had not been announced at
time of going to press.
The benchmark Reg S bonds are expected
to be rated in line with the issuer.
CICC, Bank of China and Standard Chartered
were joint global coordinators, as well as
joint bookrunners with CCB International
and Wing Lung Bank.
Nanjing Yangzi State-owned Assets
Investment Group is one of the largest local
government-owned entities in Nanjing,
capital of China’s eastern Jiangsu province.› CHINA UNVEILS DIM SUM TENORSCHINA will sell Rmb7bn (US$1.05bn) of Dim
Sum bonds in Hong Kong next Thursday in
its second such offering of the year.
The Ministry of Finance intends to issue
to institutional investors Rmb4bn of two-
year bonds, Rmb2bn of five-year notes and
Rmb500m of 10-year paper, according to a
statement from the Hong Kong Monetary
Authority.
An additional batch of Rmb500m notes
will be sold to central banks.
In June, the MoF sold Rmb7bn of dual-
tranche Dim Sum bonds in Hong Kong. A
Rmb5bn three-year was priced at par toyield 3.99% and a Rmb2bn five-year was
sold at 4.10%.› BRITISH COLUMBIA RETURNS TO PANDASTHE PROVINCE OF BRITISH COLUMBIA (Aaa/AAA/AAA)
has priced Rmb1bn of three-year Panda
notes at par to yield 4.8%, within an initial
guidance range of 4.4%–5.0%.
The pricing was at a 11bp premium
over China Development Bank’s three-year
notes, which were quoted on Wednesday at
around 4.69%.
A banker close to the offering said over
30% of the notes were allocated to offshore
accounts via the Bond Connect, which gives
offshore investors direct access to China’s
interbank bond market from Hong Kong.
The proceeds can be used to invest
in China’s interbank bond market or
provide loans to government agencies of
British Columbia, according to the bond
prospectus.
Bank of China was joint lead underwriter
and sole bookrunner on the offering. HSBC
was also joint lead underwriter.
The issuer has been exempted from
getting a Chinese domestic rating for its
Panda bonds.
This is British Columbia’ second offering
in China’s interbank bond market. In
January last year, the Canadian province
issued Rmb3bn of three-year debut Panda
bonds at 2.95%.› CDB GOES GREEN VIA BOND CONNECTCHINA DEVELOPMENT BANK (A1/A+) has sold
Rmb4.4bn of Green bonds under the Bond
Connect scheme.
The offering was a reopening of
Rmb10bn 4.19% Green notes due
September 15 2020, which CBD issued
earlier this year solely in China’s interbank
bond market.
The tap priced on Tuesday at par to
yield 4.5071%. The notes were sold both in
the interbank bond market and through
the new trading link that gives offshore
investors direct access to China’s interbank
bond market from Hong Kong.
The proceeds will be used for four clean-
transportation urban rail transit projects in
the Guangdong-Hong Kong-Macau Greater
Bay Area which covers 11 cities in southern
Guangdong province, plus Hong Kong and
Macau, located in the Pearl River Delta.
The four projects comply with
China Green Bond Endorsed Project
Catalogue (2015 Edition), as verified by
PricewaterhouseCoopers, CDB says in a
bond prospectus.
Last week, AGRICULTURAL DEVELOPMENT BANK OF
CHINA sold Rmb3bn of two-year Green notes
via the Bond Connect scheme. The notes1019_06 Country01.indd 26 24/11/2017 21:56:01