IFR Asia – November 25, 2017

30 International Financing Review Asia November 25 2017

CICC was the sponsor and joint

bookrunner with Citic Securities, Guotai Junan

Securities, Credit Suisse Founder Securities and

First Capital Investment Banking.

Proceeds will be used for new energy

projects, plant and vehicle model projects

and auto parts projects.

HUNAN CORUN NEW ENERGY has raised

Rmb750m from a private placement of

78.62m shares to three investors, with

Goldman Sachs Gao Hua Securities as sole

bookrunner.

The price was set at Rmb9.54, a premium

of 3.8% to the pre-deal spot. The buyers

include an individual investor, a mutual

fund and a securities company.

The producer of electric vehicle

components plans to use the proceeds

mainly for battery production.

› SINOPEC OILFIELD FILES FOR PLACEMENT

The China Securities Regulatory

Commission has agreed to review the

A-share tranche of SINOPEC OILFIELD SERVICE’s

proposed Rmb8bn private placement of

A-shares and H-shares.

The oil-and-gas engineering services

company plans to raise up to Rmb4bn

from the placement of not more than

2.83bn new A-shares to shareholder China

Petrochemical Corp for Rmb3.94bn,

and a senior-executive share scheme for

Rmb60.65m. The placement price will be

set on the first day of issuance.

There is a 36-month lock-up for the

subscribers.

Sinopec Oilfield also plans to raise up

to Rmb4bn from a private placement of

H-shares to not more than 10 investors.

The company plans to offer up to 4.2bn

H-shares at HK$1.35 each. Century Bright, a

subsidiary of CPC, has agreed to subscribe

to at least 50% of the new H-shares, while

China Structural Reform Fund will take up

Rmb800m of the new shares.

There is a 36-month lock-up period on

Century Bright.

CICC is the lead on the transaction and

joint bookrunner with Guotai Junan Securities

and Deutsche Bank.

The CSRC has agreed to vet the H-share

tranche of CHINA SOUTHERN AIRLINES’ proposed

US$1.9bn private placement, moving the

deal a step closer to winning approval.

The carrier aims to sell up to 1.8bn

A-shares to raise as much as Rmb9.5bn

at a floor price to be set on the first

day of issuance. The CSRC accepted the

application for the A-share tranche earlier

this month.

Controlling shareholder China Southern

Air Holding (CSAH) has agreed to subscribe

to at least 31% of the placement shares,

through an asset swap and cash.

China Southern also plans to raise up

to HK$3.70bn from the sale of up to 601m

H-shares at HK$6.156 each to a wholly

owned unit of CSAH.

UBS Securities is working on the placement.

› BAOWU STEEL OFFERS RMB15BN EB

CHINA BAOWU STEEL GROUP has launched a public

offering of three-year bonds exchangeable

for the A-shares of BAOSHAN IRON AND STEEL to

raise up to Rmb15bn.

The initial conversion price has been set

at Rmb10, a premium of 12% to November

21 close of Rmb8.93.

The coupon is marketed at a guidance

range of 1.0%–1.5%.

Bookbuilding will close on November 28.

Both the issuer and the EBs are rated

AAA by China Chengxin Securities Rating.

The securities can be exchanged into

Baosteel’s shares after 12 months.

CICC, Citic Securities, China Securities,

Guotai Junan Securities, Credit Suisse Founder

Securities and Hwabao Securities are joint

bookrunners.

Baowu Steel, formerly Baosteel Group,

holds 145bn Baosteel A-shares, representing

about 65.6% of the Baoshan’s total issued

capital.

CHINA NATIONAL PETROLEUM CORP has received

approval from the China Securities

Regulatory Commission to issue five-year

exchangeable bonds of up to Rmb20bn

with the A-shares of PETROCHINA as

underlying.

The proposed EB will be the largest in

the domestic market, surpassing China

Communications Construction Group’s

Rmb16bn issue in the A-shares of China

Communications Construction.

CNPC holds 155bn Petrochina A-shares,

representing about 84.6% of the latter’s

total issued capital.

China Securities is the lead on the

transaction.

CNPC sold a Rmb10bn five-year EB

in July, with A-shares of Petrochina as

underlying.

Controlling shareholder ANSHAN IRON AND

STEEL GROUP has applied for approval to the

Shenzhen Stock Exchange to sell EBs of up

to Rmb4bn with A-shares of ANGANG STEEL as

underlying.

Anshan holds 4.87bn Angang A-shares,

representing over 67% of the company’s

total issued capital.

Guotai Junan Securities and Haitong Securities

are joint bookrunners.

› SPDB HIRES BOOKRUNNERS FOR CB

SHANGHAI PUDONG DEVELOPMENT BANK has

mandated Citic Securities and Guotai Junan

Securities as joint bookrunners for a

proposed issuance of six-year convertible

bonds to raise up to Rmb50bn.

This ties the record as the largest

proposed CB in China’s domestic market.

China Minsheng Banking said in April it

planned to raise a similar amount from a

CB issue.

SPDB will use the proceeds for Core Tier

1 capital. Shareholders have approved the

issue, but still needs regulatory clearance.

CHINA COMMUNICATIONS CONSTRUCTION has

obtained shareholder approval for a

proposed issue of six-year CBs of up to

Rmb20bn.

Proceeds will be used for infrastructure

investments and to purchase engineering

ships and mechanical equipment.

Citic Securities, China Securities and BOC

International (China) are joint bookrunners.

The issue is still pending regulatory

approval.

WUXI RURAL COMMERCIAL BANK has cleared a

China Securities Regulatory Commission

hearing for a proposed issue of six-year CBs

of up to Rmb3bn.

The Jiangsu-based lender plans to use the

proceeds to strengthen Core Tier 1 capital.

China Securities is the sponsor.

The issue still needs written CSRC

approval.

ZHONGSHAN BROAD-OCEAN MOTOR has cleared

a CSRC hearing for a proposal to issue six-

year CBs of up to Rmb1.8bn.

China Galaxy Securities is the sole

bookrunner. Proceeds will be used for

powertrain systems for new energy

vehicles, research and development, and

information technology upgrades.

The offering still needs written CSRC

approval.

JIANGSU WUJIANG RURAL COMMERCIAL BANK

has received China Banking Regulatory

Commission approval to issue six-year CBs

of up to Rmb2.5bn. Proceeds will be used

for Core Tier 1 capital.

Huatai United Securities is working on the

issue, which still needs CSRC approval.

HONG KONG

DEBT CAPITAL MARKETS

› SHANGHAI BANK SOURCES T2 CAPITAL

SHANGHAI COMMERCIAL BANK, rated A2/A–

(Moody’s/Fitch), has sold US$250m of

Tier 2 bonds at 3.8%, inside initial price

guidance in the 4% area, with HSBC as sole

bookrunner.

The 10-year non-call five subordinated

bonds attracted orders of over US$800m,

1019_06 Country01.indd 30 24/11/2017 21:56:01