International Financing Review Asia November 25 2017 31COUNTRY REPORT HONG KONG92% of which came from Asia and the rest
from Europe and offshore US investors.
In terms of investor types, 73% were asset
and fund managers, 12% were insurers, 6%
each were public sector buyers and private
banks and 3% were banks.
The Hong Kong lender’s proposed Reg S
notes have expected ratings of Baa1/BBB+
(Moody’s/Fitch).› CHIYU PRINTS US$250M OF AT1SHong Kong’s CHIYU BANKING CORP on Tuesday
priced US$250m of Additional Tier 1
securities at par to yield 5.25%, unchanged
from initial guidance of 5.25% area.
Final distribution figures were not
disclosed, but orders were earlier heard to
be over US$500m, including interest from
the leads.
The perpetual non-call five securities
reset to the initial spread over Treasuries of
315bp, if not called.
BOC International, UBS, OCBC Bank and
China Industrial Securities International were
joint global coordinators on the perpetual
non-call five issue, which comes with a 25-
cent rebate for private banks.
The four JGCs were also joint
bookrunners with ABC International, ANZ,
BNP Paribas, China Galaxy International
Securities (Hong Kong), China Merchants
Securities (HK), Cinda International, Citigroup,
Citic CLSA, CMB International, Guotai Junan
International, Morgan Stanley, Shanghai Pudong
Development Bank, Hong Kong branch, and
UOB.
The bank has a Baa1 Moody’s rating, but
the Reg S AT1 securities are unrated.
China’s Xiamen International Bank owns
a 64.3% stake in Chiyu Banking Corp, while
the Committee of Jimei Schools owns
31.8%.› LIFESTYLE CANCELS DOLLAR BOND PLANSLIFESTYLE INTERNATIONAL HOLDINGS has decided
not to proceed with its proposed offering of
US dollar bonds announced on August 22,
according to a stock exchange filing.
The Hong Kong-listed company cited
“current market conditions” and “expected
funding requirements of the group” as
reasons for the decision.
However, the retail operator, which owns
Hong Kong’s SOGO department stores, said
it “will continue to monitor the market
conditions and to review the group’s
funding need and capital structuring from
time to time”.
In August, Lifestyle International
mandated JP Morgan and UBS as joint global
coordinators, as well as joint bookrunners
and joint lead managers with Bank of China
(Hong Kong) for the proposed issue.SYNDICATED LOANS
› SHIMAO CLUBS US$1.435BN REFIHong Kong-listed SHIMAO PROPERTY HOLDINGS
has wrapped up a US$1.435bn-equivalent
four-year term loan with a dozen banks.
HSBC was the facility agency of the club
loan, comprising US$680m and HK$5.89bn
(US$755m) tranches, the Chinese developer
sad in a stock exchange statement on
October 30, when the facility was signed.
Funds will be used for debt refinancing
and general corporate purposes.
The amortising loan pays an all-in pricing
in the low 300s for an average life of 3.5
years.
Five of the 12 banks on the latest loan
clubbed a separate HK$10bn five-year three-
tranche bullet for Shimao in May. Hang
Seng Bank was the facility agent on the
bullet, paying an interest margin of 135bp
over Hibor.
For full allocations, see http://www.ifrasia.com.› KINGBOARD CHEMICAL LURES 16Hong Kong-listed KINGBOARD CHEMICAL HOLDINGS
made an impressive return to the loan
markets after two years to increasing
a four-year capital-expenditure loan
to HK$5.5bn from HK$5bn, following
commitments from 16 banks.
Hang Seng Bank and Standard Chartered
were mandated lead arrangers and
bookrunners on the financing, split into a
term loan tranche A and a revolving credit
tranche B.
The facility paid a top-level all-in pricing of
123bp, based on an interest margin of 100bp
over Hibor and an average life of 3.5 years.
Pricing was significantly lower than that
on the borrower’s previous visit to the loan
markets in September 2015 for a HK$6bn
five-year refinancing. That loan paid a top-
level all-in pricing of 191bp, based on an
interest margin of 175bp over Hibor and a
blended average life of 4.25 years.
Funds from the latest loan are for capex
and corporate funding requirements of
the borrower’s core business other than
property development and/or investment.
Separately, subsidiary Kingboard
Laminates Holdings signed a HK$6bn five-
year borrowing in March, paying a top-level
all-in pricing of 116bp, based on an interest
margin of 102bp over Hibor and an average
life of 4.25 years.
For full allocations, see http://www.ifrasia.com.› COGARD UNIT SEEKS PROPERTY BULLETA unit of Chinese property developer
COUNTRY GARDEN is clubbing a HK$2.917bn
three-year bullet term loan for a propertyproject in Hong Kong’s New Territories.
HSBC is the sole mandated lead arranger
and bookrunner on the loan, which
comprises a HK$1.381bn tranche A to
finance land acquisition and a HK$1.536bn
tranche B to cover construction costs.
Banks are invited to join at a minimum
ticket of HK$600m for the MLA title and a
52.5bp upfront fee for an all-in pricing of
157.5bp, based on an interest margin of
140bp over Hibor.
The borrower is Loyal Pioneer and the
land in Ma On Shan serves as security for
the facility.
Country Garden, via its offshore vehicles,
acquired 60% of the project from Hong
Kong developer Wang On Properties in
September for HK$2.441bn, based on a
project size of 387,500 square feet in gross
floor area and a price of HK$10,500 per
square foot, according to a stock filing from
the latter.
Construction will begin some time in this
quarter with completion slated for 2020,
according to the same filing.
Hong Kong-listed Country Garden
signed a US$1.249bn-equivalent four-year
amortising term loan with 15 lenders last
month.
The unsecured loan, in US and HK
dollars, offered a top-level all-in pricing
of 300bp, based on an interest margin of
249bp and a 191bp fee for an average life of
3.75 years.› AGILE BORROWING ATTRACTS EIGHTChinese developer AGILE GROUP HOLDINGS
has attracted eight banks in general
syndication of its HK$3.519bn three-year
term loan.
Original mandated lead arranger and
bookrunner Standard Chartered underwrote
and prefunded the loan in July. Hang Seng
Bank joined earlier as the other MLAB.
The others joining StanChart in general
syndication are Bank of East Asia, China
Minsheng Banking Corp, Shanghai Pudong
Development Bank, Tai Fung Bank, Nanyang
Commercial Bank, Taiwan Cooperative Bank and
EnTie Commercial Bank.
The amortising loan offers a top-level
all-in pricing of 473bp, based on an interest
margin of 389bp over Hibor and 180bp
management fee.
Funds will back the acquisition of a 30%
stake for US$900m in Hainan Clearwater
Bay, a tourism development project on the
Chinese island province. Agile already owns
the other 70%.› HUARONG IFH SIGNS HK$1.1BN CLUBHUARONG INTERNATIONAL FINANCIAL HOLDINGS has
signed with four lenders a HK$1.1bn club loan,1019_06 Country01.indd 31 24/11/2017 21:56:01