International Financing Review Asia February 10 2018 21COUNTRY REPORT CHINAThe issuer did not fully exercise an over-
allotment option. It initially intended to
raise Rmb1bn from the offering with an
over-allotment option of Rmb5bn.
The proceeds will be used to repay debt
linked to GLP’s acquisition of logistics
assets in Europe.
The notes were issued in the name
of GLP subsidiary Iowa China Offshore
Holdings (Hong Kong).
Both GLP and the notes have AAA ratings
from Shanghai Brilliance Credit Rating.
China Merchants Securities was sole lead on
the offering.
With the new issue, GLP has sold notes
in three venues of China’s domestic bond
market.
In October 2017, GLP printed Rmb1bn
five-year notes in China’s interbank bond
market at par to yield 4.99%.
In July 2016, it launched debut Rmb1.5bn
Panda bonds on the Shanghai Stock
Exchange.› LEGEND RAISES FIVE-YEAR FUNDSLEGEND HOLDINGS, the controlling shareholder
of computer maker Lenovo, has printed
Rmb1bn five-year notes at par to yield 6.0%
on the Shanghai Stock Exchange.The proceeds are intended to repay bank
loans.
United Ratings sees both the issuer and
the notes as AAA.
China Galaxy Securities is sole lead on the
offering.› CMP PRINTS RMB500M PANDA NOTESHong Kong-incorporated CHINA MERCHANTS
PORT HOLDINGS has raised Rmb500m from an
offering of Belt and Road Panda bonds on
the Shenzhen Stock Exchange.
The issuer priced the three-year notes at
par to yield 5.15%. Investors have the right
to sell them back at the end of years one
and two.
CMP intends to use the proceeds to pay
for a 99-year lease on Hambantota port in
Sri Lanka.
Sri Lanka signed a US$1.1bn deal last July
to lease its southern Hambantota port to
China Merchants Port Holdings. The port is
near the main shipping route from Asia to
Europe and likely to play a role in China’s
Belt and Road initiative.
China Merchants Securities was lead
underwriter on the offering.
China Chengxin has assigned ratings of
AAA to CMP and its notes.SYNDICATED LOANS
› BOCOM UNIT INCREASES LOAN SIZEBANK OF COMMUNICATIONS FINANCIAL LEASING has
signed a bigger-sized three-year onshore
loan of US$430m, following commitments
from six banks in general syndication.
Mandated lead arrangers and
bookrunners DBS Bank, HSBC, SMBC and
Westpac each committed US$75m. The four
launched the loan at a size of US$300m in
early November, offering a top-level all-in
pricing of 120bp, via an interest margin of
108bp over Libor and an average life of 2.76
years.
On November 14, the borrower signed
the US$300m loan with the four MLABs and
drew down later that month.
Six other banks joining in general
syndication were transferred into the
facility on January 15.
In China’s syndicated loan market,
banks are not allowed to sell down partial
commitments. They can either sell down
their entire exposure or hold on to it until
maturity.
BoCom Financial Leasing, rated A3/
A–/A, is a wholly owned unit of Bank of
Communications, China’s fifth-largest listed
bank in asset terms.
For full allocations, see http://www.ifrasia.com.› HUARONG SHIFTS FOCUS ONSHOREState-owned China Huarong Asset
Management is seeking a Rmb1bn
(US$159m) two-year term loan through a
subsidiary in its first syndicated borrowing
in the onshore market.
Hana Bank (China) is sole mandated lead
arranger and bookrunner on the loan, with
an average life of 1.8 years and paying an
interest margin of 118% of the PBoC rate.
The benchmark PBoC lending rate for
tenors longer than one year and up to five
years now stands at 4.75%.
MLAs with Rmb150m earn a top-level
all-in pricing of 121.51% of the PBoC
rate, via a participation fee of 30bp, lead
arrangers with Rmb100m–Rmb149m earn
an all-in of 120.34% of the PBoC rate, via a
20bp fee, while arrangers with Rmb50m–
Rmb99m earn an all-in of 119.17% of the
PBoC rate, via a 10bp fee.
HUARONG TIANZE INVESTMENT, a unit of
Huarong AMC, is borrower on the new
onshore amortising loan, while the parent
is guarantor.
Funds are for refinancing and working
capital. The deadline for commitments is
end-March.
The country’s biggest distressed-debt
manager was very active in the offshore
loan markets last year, borrowing US$1.9bnJoyson to fund Takata buy
Loans Deutsche Bank and ICBC arranging two separate facilitiesDeutsche Bank and Industrial and Commercial
Bank of China are arranging two separate
loans totalling US$1bn to help NINGBO JOYSON
ELECTRONICS fund its US$1.6bn purchase of
Japan’s Takata.
Both loans, likely to have five-year
maturities, are expected to be signed in the
next few weeks as the acquisition is expected
to be completed before the end of the first
quarter.
Joyson, a Shanghai-listed auto parts
supplier, signed a definitive asset-purchase
agreement with Takata on November 21 2017.
Takata will use the proceeds to
compensate automakers, injured people and
relatives of people, who died because of the
Japanese company’s defective airbags.
Takata filed for bankruptcy last June after
more than 100m of its airbags were recalled
because they could inflate explosively and
spray metal fragments.
The transaction still needs approval from
Takata’s creditors’ committee, courts in the
US and Japan, as well as regulators in the two
countries and China.
Joyson is acquiring Takata’s viableoperations through Luxembourg-registered
Joyson KSS Auto Safety, which owns 100%
of Michigan-based parts supplier Key Safety
Systems.
The Chinese company acquired KSS in a
US$920m deal in 2016 and raised US$554m-
equivalent through a five-year term loan in
May that year to finance the acquisition. The
Ningbo branch of Bank of China and ICBC
were co-lead arrangers on the loan, split into
a Rmb2.983bn (US$454m then) tranche
A paying an interest margin of 100% of the
PBoC rate and a US$100m tranche B with a
margin of 150bp over three-month Libor.
Ningbo-based Joyson set up fully owned
subsidiary Joyson KSS Auto Safety Holdings
on November 17 2017 and plans to sell
a 15.15% stake for US$150m to Chinese
state-backed private equity SDIC Fund
Management. Joyson, meanwhile, will further
inject US$250m to hold an eventual 84.85%
stake in Joyson KSS Auto Safety Holdings,
which owns 100% of Joyson KSS Auto Safety,
according to a company stock filing on
January 3.
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