› GEELY CANCELS ONSHORE PERPS
Chinese automaker ZHEJIANG GEELY HOLDING
GROUP has cancelled an offering of perpetual
non-call three securities “due to changes
in [its] fundraising plan”, according to a
company statement.
Geely intended to raise Rmb2bn from the
offering planned to launch last week.
Both the issuer and the notes are rated
AAA/AAA (Shanghai Brilliance Credit/
Golden Credit).
Industrial Bank is lead underwriter on the
offering with Shanghai Development Bank as
joint lead underwriter.
In February, Geely announced it had
bought a stake of almost 10% in Daimler in
a US$9bn deal for access to the Mercedes-
Benz owner’s technology, Reuters reported.
Last month, Geely printed debut asset-
backed securities on the Shanghai Stock
Exchange to raise Rmb1.98bn.
› GLP MARKETS PANDA BONDS
GLOBAL LOGISTIC PROPERTIES was back in the
Panda bond market last Friday with a deal
on the Shenzhen Stock Exchange, its fifth
onshore renminbi offering of the year.
The base issue size of the “Belt and
Road” bond is Rmb1bn and there is an
overallotment option of Rmb3bn.
The indicative price range is 4.5%–5.5%
for the nine-year notes, which come with
put options for investors at the end of years
three and six.
The proceeds will be used to repay debt
linked to GLP’s acquisition of logistics
assets in Europe.
The notes will be issued in the name
of GLP subsidiary Iowa China Offshore
Holdings (Hong Kong). The bonds and the
issuer have AAA ratings from Shanghai
Brilliance Credit.
China Merchants Securities is sole lead on
the issue.
GLP printed its last Panda bond offering
less than two weeks ago in the interbank
bond market. The Rmb1.2bn three-year
notes were priced at par to yield 5.15%.› COFCO PRINTS ONSHORE NOTESProperty developer COFCO PROPERTY (GROUP) has
raised Rmb1.5bn from an offering of three-
year notes.
The notes were priced at par to yield 4.99%,
within an indicative range of 4.60%–5.60%.
It was COFCO Property’s first issue this
year in China’s interbank bond market.
Both the issuer and the notes are rated
AA+ by China Chengxin.
The proceeds are intended to repay debt
and to replenish capital.
CCB is lead underwriter on the
offering with China Citic Bank as joint lead
underwriter.STRUCTURED FINANCE
› CCB FINDS FEW OFFSHORE BUYERSCHINA CONSTRUCTION BANK printed two
residential mortgage-backed securities
trades last week via the Bond Connect link,
but found little offshore appetite.
China’s largest mortgage lender sold the
two offerings totalling around Rmb20bn
(US$3.17bn) in China’s interbank bond
market last Monday and Thursday.
A source familiar with the matter saidoffshore investors were allocated less than
Rmb100m in total on the two deals.
The trades came after the lender printed
Rmb10bn RMBS on April 20. That deal was
also available via Bond Connect, but it was
not sold to any offshore accounts at final
allocation. None of the three offerings has
international ratings.
Sources familiar with the matter said
the issuer hoped to bring down the cost by
exploring the Bond Connect route as it is
planning to issue massive amounts of RMBS
this year.
CCB has conducted three RMBS offerings
each month since March. The latest two
were its sixth and seventh RMBS trades
year to date.
The pace has been particularly intense
in the past two weeks as CCB was taking
advantage of conducive market conditions
after the central bank’s unexpected
decision to cut the reserve requirement
ratio by 100bp on April 16.
The bank’s outstanding individual
mortgage loans grew 17.5% year on year to
Rmb4.21trn at the end of 2017.
In November, CCB unveiled a credit loan
product for home renters, the first of its
kind, as the government looks to develop
the rental housing market, according to the
People’s Daily.SYNDICATED LOANS
› TIANSHAN RETURNS FOR RMB700M LOANTIANSHAN ALUMINUM is seeking a Rmb700m
(US$111m) two-year pre-delivery term
loan, returning five months after closing a
similar borrowing.MAKE THE MOST OF
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