International Financing Review Asia November 25 2017 27COUNTRY REPORT CHINAwere priced at par to yield 4.48%.
Bank of Ningbo, Citic Securities, Orient
Securities, GF Securities, and Shengjing Bank
are main lead underwriters on the CDB
offering.
Jiangnan Rural Commercial Bank, Bank
of Hangzhou, Guotai Junan Securities, China
Minsheng Bank Corp, China Merchants Securities,
Bank of Zhengzhou, Shanghai Rural Commercial
Bank, Shunde Rural Commercial Bank, Bank
of Nanjing, Zhongyuan Bank were lead
underwriters.
Agricultural Bank of China, Hong Kong branch,
Bank of China, Bank of China (Hong Kong), BNP
Paribas, BOCI Asia, China Construction Bank
(Asia), Credit Agricole, DBS Bank, Deutsche Bank
(China), MUFG Securities Asia, Mizuho Securities
Asia, Standard Chartered Bank (Hong Kong),
HSBC and ICBC (Asia) were international
coordinators.› SOHO CHINA EYES RMB10BN PANDASSOHO CHINA plans to raise up to Rmb10bn
from an offering of Panda notes in China’s
interbank bond market.
The Cayman Islands-incorporated
Chinese developer’s first issue under
the programme is expected to involve
Rmb3bn of five-year notes, according
to a preliminary filing to the National
Association of Financial Market
Institutional Investors.
The Panda sale is still subject to
regulatory approvals.
Both the issuer and the notes have AAA
ratings from China Chengxin and China
Lianhe.
CICC is lead underwriter on the
offering with Industrial Bank as joint lead
underwriter.› CHEXIM POSTPONES RS10BN OFFERINGEXPORT-IMPORT BANK OF CHINA postponed a
Rmb10bn bond offering last week as
onshore yields jumped amid intensified
worries over year-end liquidity conditions.
The policy bank initially planned to sell
up to Rmb10bn of notes on Thursday, but
announced late Wednesday its intention to
drop the offering after heavy sell-offs in the
domestic bond market on the day.
At one point on Wednesday, yields on
China’s 10-year treasury notes touched
4.02%. Meanwhile yields on Chexim’s 10-
year notes jumped 13bp to 5.00%, their
highest since 2014.
Analysts said China’s draft guidelines to
revamp the asset-management business
had intensified worries over the liquidity
condition at the year-end.
The People’s Bank of China last Friday
issued sweeping guidelines to tighten rules
on the AM business, in the government’slatest effort to rein in the risky shadow
banking sector, which had been
channelling money into Chinese stocks,
bonds and property.
The draft guidelines, which unify rules
on AM products that all types of financial
institutions put out and set leverage
ceilings on such products, will not have
an immediate impact. There will be a
transition period lasting until June 30 2019.
“With detailed rules on how to regulate
the asset-management products to be
introduced and implemented over time,
they will continue to weigh on the bond
market,” said Xiangcai Securities in a note.
In the corporate sector, at least four
issuers, including Changde Economic
Development Investment Group, have
already postponed their bond offerings,
according to the Shanghai Clearing
House.› CENTRAL HUIJIN RAISES RMB15BNState-owned Chinese company CENTRAL HUIJIN
INVESTMENT has priced Rmb15bn of three-
year notes at par to yield 4.98% in China’s
interbank bond market.
The issue was launched on Thursday
when Export-Import Bank of China
postponed a Rmb10bn offering of bonds
after onshore yields surged amid concerns
over liquidity conditions at the year-end.
China Development Bank’s three-year
notes were quoted at 4.69% on Thursday.
“Huijin has stakes in many banks,
insurance firms and asset managers. With
their support, it was not that hard to sell
the notes even when the market was
tough,” said a banker familiar with the
issue.
Central Huijin, set up in 2003, invests in
state-owned financial enterprises on behalf
of the country. As of the end of 2016, it
held stakes in 19 financial institutions,
including China Construction Bank and
Industrial and Commercial Bank of China.
The offering also marks the first
time that Central Huijin has offered
rated bonds under the regime of the
National Association of Financial Market
Institutional Investors, the main regulator
of corporate bonds in the interbank
market.
The issuer, which operates under
sovereign wealth fund China Investment
Corp, and the notes have AAA ratings from
Lianhe Credit. Proceeds will be used to
optimise the issuer’s debt structure and to
replenish capital.
ICBC and Citic Securities are lead arrangers
on the offering.
Central Huijin has Rmb109bn
outstanding of so-called government-
supported agency bonds, which have a zerorisk-weighting from the People’s Bank of
China and are exempt from credit rating.› DAIMLER PRINTS RMB4BN PANDASDAIMLER printed Rmb4bn of Panda bonds in
China, despite rising yields in the country’s
interbank bond market.
The German car manufacturer privately
placed the three-year Panda bonds at par to
yield 5.45%, above the 5.0%–5.3% soundings
to investors last month.
A source close to the issue said pricing
reflected rising yields in the onshore
market. Institutional investors were said to
have sold off liquid securities to strengthen
their cash positions amid worsening
market sentiment.
ICBC and Bank of China are lead
underwriters on the placement
This is Daimler’s fourth Panda issue of
the year after its last trade in August. At the
time, it privately placed Rmb5bn of three-
year Panda notes at par to yield 5.12%.› PHILIPPINES HIRES BOC FOR PANDASTHE REPUBLIC OF THE PHILIPPINES signed an
agreement with Bank of China for a
planned Rmb1.4bn offering of Panda notes
in the mainland’s interbank bond market.
Bank of China has been appointed lead
underwriter and sole bookrunner on the
proposed offering, according to a press
release from the Chinese lead.
The agreement was signed during Chinese
Premier Li Keqiang’s visit to Manila after he
attended a series of meetings, including the
12th East Asia Summit two weeks ago.
In late September, Philippine officials
visited China to pitch a planned offering
of Panda bonds and to discuss investment
opportunities in their country’s
infrastructure projects.
Standard Chartered Bank has also been
hired as joint lead arranger on the Panda
offering, according to market sources.STRUCTURED FINANCE
› ALIBABA READIES SMALL LOAN ABSALIBABA GROUP is preparing to raise Rmb3bn
(US$453m) next week from a public
offering of securities, backed against small
loans, in China’s interbank bond market.
The offering is split into Rmb2.544bn of
senior Class A notes, Rmb231m of Class B
notes and an unrated subordinated tranche
of Rmb225m.
The Class As, with a AAA rating from
Shanghai Brilliance and Class Bs, with a AA
rating from the same agency, have expected
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