International Financing Review Asia February 10 2018 25COUNTRY REPORT HONG KONGHONG KONG
DEBT CAPITAL MARKETS
› ZH INTERNATIONAL PLANS US$200M NOTESZH INTERNATIONAL HOLDINGS plans to raise
US$200m from the sale of US dollar short-
term notes to meet general corporate
needs.
The Reg S notes, with a coupon of 7.50%,
will be sold at par. The notes, expected to
be issued on February 12, will mature on
January 31 2019.
Ever Diamond Global, the controlling
shareholder of the Hong Kong-listed
company, will be the guarantor on the
notes. AMTD is the placing agent.
ZH International is a Hong Kong-based
investment holding firm involved in
security investment, property investment
and management, as well as hotels.SYNDICATED LOANS
› ZHONGYU GAS DOUBLES LOAN SIZEZHONGYU GAS HOLDINGS has doubled a three-
year term loan to US$400m-equivalent from
the US$200m-equivalent target.
Bank of China (Hong Kong) was the
mandated lead arranger and bookrunner of
the financing, which comprises tranches of
US$236.5m and HK$1.2753bn (US$163m).
The loan pays an interest margin of
210bp over Libor or Hibor and has an
average life of 2.675 years. Banks were
invited to commit in either US or Hong
Kong dollars for an all-in pricing of 250bp,
based on an upfront fee of 107bp.
Funds are for refinancing and working
capital. Signing was on January 29.
The Hong Kong-listed borrower, a unit
of China Gas Holdings, builds and manages
gas pipelines and distributes natural gas in
China.
For full allocations, see http://www.ifrasia.com.› AKBANK SEEKS ASIA BORROWINGAKBANK, rated Ba1/BB+ (Moody’s/Fitch), is in
the Asian market for a new loan through
three lead banks after having raised a
US$1.15bn-equivalent facility last August.
Bank of America Merrill Lynch, First Abu Dhabi
Bank and Industrial and Commercial Bank of
China are arranging the latest financing,
which will comprise a one-year US dollar
tranche A, a one-year euro tranche B and a
two-year US dollar tranche C.
The interest margins on tranches A andC are expected to be 100bp and 180bp over
Libor, respectively, while tranche B will
offer a margin of 90bp over Euribor.
Last August, Akbank raised the
US$1.15bn-equivalent loan from 38 banks.
Emirates NBD Capital, ICBC Turkey
and Standard Chartered were the joint
coordinators and bookrunners of the
transaction, which comprised US$543m
and €515m tranches, of which US$945m-
equivalent is for one year and US$205m is
for two years. The one-year money offered a
total cost of 135bp over Libor for US dollar
drawings and 125bp over Euribor for euro
drawings, while the two-year money pays a
total cost of 220bp over Libor.
Akbank is one of the largest private-
sector lenders in Turkey.› COGARD RESURFACES FOR HK$1.781BNCOUNTRY GARDEN HOLDINGS has launched a
HK$1.781bn three-year term loan, barely
four months after the real-estate developer
signed a US$1.25bn facility.
BNP Paribas is mandated lead arranger
and bookrunner on the latest financing,
which pays an interest margin of 230bp
over Hibor and has a 2.5-year average life.
MLAs joining with HK$200m or more
get an all-in pricing of 290bp over Hibor,
via a 150bp participation fee, while
lead arrangers with HK$160m–$199m
get an all-in of 284bp, via a 135bp fee,
and arrangers with HK$80m–$159m get
an all-in of 278bp, via a 120bp fee. The
deadline for commitments is March 8.
Funds are for the acquisition of a 15%
stake in real-estate services provider
E-House (China) Enterprise Holding. The
target’s shares will be pledged as part of the
security package.
Last October, CoGard raised a
US$1.249bn-equivalent four-year loan from
15 lenders. Bank of China (Hong Kong),
China Construction Bank, Hong Kong, Hang
Seng Bank, HSBC, ICBC (Asia), Shanghai
Pudong Development Bank, Hong Kong and
Standard Chartered were MLABs on that
loan, denominated in US and HK dollars.
Based on a margin of 249bp over Libor or
Hibor and a 3.75-year average life, banks
were offered a top-level all-in of 300bp via
a 191bp fee.› IT CLUBS HK$800M BORROWINGFashion apparel and accessories retailer IT
has signed with four banks a four-year club
loan of HK$800m.
BNP Paribas, CTBC Bank, Hang Seng Bank
and MUFG committed HK$200m each.
The amortising loan, which has semi-
annual repayments starting after an 18-
month grace period, paid an all-in pricingin the high 100s over Hibor.
IT FINANCE is the borrower, while Hong
Kong-listed IT and three indirectly wholly
owned subsidiaries are guarantors, the
company says in a stock filing on January
31, the day of signing.
Funds will refinance a Rmb894m
(US$142m) 6.25% five-year bond due on
May 15 2018 and also fund working capital
requirements.› UA FINANCE OPTS FOR MOREUNITED ASIA FINANCE has increased its four-year
loan to HK$850m from HK$800m originally
after commitments from three banks.
Mandated lead arrangers and
bookrunners Taipei Fubon Commercial Bank
and Taishin International Bank launched the
dual-tranche loan in early January at a top-
level all-in pricing of 222.9bp, based on an
interest margin of 200bp over Hibor and a
blended average life of 3.5 years.
Funds are for refinancing and working
capital purposes. Signing was scheduled to
take place last Thursday.
The latest borrowing follows a HK$1.6bn
four-year facility UA Finance closed in
February 2017. That loan paid a top-level
all-in of 245bp, based on a margin of 215bp
over Hibor and an average life of three
years, according to Thomson Reuters LPC
data.
For full allocations, see http://www.ifrasia.com.INDIA
DEBT CAPITAL MARKETS
› RAJASTHAN POWER TRIO PLANS BONDSThree Rajasthan state-owned power
companies aim to raise up to Rs122bn
(US$1.9bn) combined from rupee bonds and
have sent requests for proposals to bankers,
according to a source.
Care has assigned A+ (structured
obligation, stable) ratings to the long-
term bonds of Rs40.13bn, Rs41.63bn and
Rs40.3bn of JAIPUR VIDYUT VITRAN NIGAM, AJMER
VIDYUT VITRAN NIGAM and JODHPUR VIDYUT VITRAN
NIGAM, respectively.
The notes will have credit enhancement
in the form of a guarantee from the state
government. There will be a trustee-
monitored escrow account and structured
payment mechanism, whereby half a
year’s total debt-repayment obligation will
be maintained in a debt-service-reserve
account.
Last December, UTTAR PRADESH POWER CORP1028_07 Country02.indd 25 09/02/2018 22:00:43