IFR Asia – February 10, 2018

24 International Financing Review Asia February 10 2018

The coupon of the EB was set at the

bottom of the guidance range of 1.4%–2.0%.

The initial conversion price is Rmb9.38,

a premium of 0.9% to PetroChina’s pre-deal

spot. The initial conversion premium is the

lowest of any public EB issue since at least

the start of last year.

For comparison, CNPC priced its debut

Rmb10bn EB last July, with the same

underlying stock, at a coupon of 1%. The

initial conversion price was set at Rmb9,

a premium of 15.5% to PetroChina’s pre-

deal spot.

Both CNPC and its latest EB received AAA

ratings from China Chengxin.

China Securities, Goldman Sachs Gao Hua

Securities and CICC were joint leads on the

offering.

The three banks were also joint

bookrunners with China Galaxy Securities,

China Merchants Securities, Citic Securities and

BOC International (China).

Proceeds will be used for working capital.

› HAN'S LASER CB RAISES RMB2.3BN

HAN’S LASER TECHNOLOGY INDUSTRY GROUP has

raised Rmb2.3bn from an offering of six-

year convertible bonds, with the public

tranche 511 times covered.

Existing shareholders took about 50.92%

of the CBs, while the rest went to retail

investors.

The coupon for the CB is 0.20% in year

one, stepping up to 2.00% in year six. The

initial conversion price is Rmb52.70, or a

premium of 7.6% to the pre-deal spot.

The unsecured bonds received a AA+

rating from Dagong Global.

The Chinese manufacturer will use the

proceeds for production projects.

Industrial Securities was the sponsor and

joint bookrunner with Goldman Sachs Gao

Hua Securities.

› TWO BANKS MULL CB OFFERINGS

BANK OF JIANGSU has obtained board approval

to sell six-year convertible bonds to raise up

to Rmb20bn, with Citic Securities and CICC as

joint sponsors..

Proceeds will be used to strengthen the

lender’s Core Tier 1 capital. The issue still

needs approval from shareholders and

regulators.

CHINA CITIC BANK shareholders have

agreed to extend the approval period for

a proposed issue of six-year CBs of up to

Rmb40bn. The approval will now expire on

February 6 2019.

The lender will use the proceeds to

strengthen its CT1 capital. Existing holders

of the company’s A-shares will have priority

to subscribe to the CBs.

The issue still needs regulatory approval.

› TWO FILE FOR EB ISSUES

ORIENT GROUP has applied for Shanghai Stock

Exchange approval for a proposed private

placement of three-year exchangeable

bonds in JINZHOU PORT to raise up to

Rmb1.2bn.

Shanghai-listed Orient, mainly engaged

in buying and selling grain and oil, holds

308m Jinzhou Port shares, or about 15.39%

of the company’s total issued capital.

Southwest Securities is the sole bookrunner.

Proceeds will be used to repay debt and for

working capital.

XIAMEN CONTEMPORARY CULTURE DEVELOPMENT

has applied for approval to the Shenzhen

Stock Exchange for a proposed private

placement of three-year EBs in CONTEMPORARY

EASTERN INVESTMENT to raise up to Rmb1.2bn.

Xiamen Contemporary holds 188m

Contemporary Eastern shares, representing

about 23.72% of the company’s total issued

capital.

First Capital Investment Banking is the sole

bookrunner.

Contemporary Eastern is mainly engaged

in the distribution of TV programmes.

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