IFR Asia – May 05, 2018

COUNTRY REPORT CHINA

› HONG YANG NOT LONG

Chinese property developer HONG YANG
GROUP, rated B/B (S&P/Fitch), on April 27
priced US$250m 363-day US dollar senior
unsecured notes at par to yield 8.50%,
tightening from initial guidance of 8.75%
area.
Wholly owned subsidiary Hong Seng
is the issuer of the Reg S notes and Hong
Yang Group is the guarantor.
Proceeds will be used for debt
refinancing and general corporate
purposes.
CICC and Huatai Finance Holdings (Hong
Kong) were joint global coordinators as
well as joint bookrunners and joint lead
managers with ABC International, Orient
Securities (Hong Kog) and VTB Capital.

› YUZHOU DIPS INTO OFFSHORE QUOTA

YUZHOU PROPERTIES, rated Ba3/BB–/BB–, raised
US$200m from a bond offering to refinance
debt and for general working capital
purposes.
The Hong Kong-listed Chinese real estate
company on Thursday priced the three-year
non-call two US dollar senior notes at par to
yield 7.90%, slightly tighter initial guidance
of 7.95% area.
Final statistics of the Reg S issue were not
available at the time of writing. But orders
were said to be only US$450m, including
interest from leads, at the time of final
guidance.
The notes have expected ratings of B+/
BB– (S&P/Moody’s).
The newly priced notes were under water
in the secondary market and quoted at
99.000/99.200 on Friday morning, according
to Tradeweb.
BOC International, Haitong International,
Credit Suisse, HSBC, Guotai Junan International,
Deutsche Bank, Industrial Bank Hong Kong
branch, Orient Securities (Hong Kong) and
Yuzhou Financial Holdings were joint global
coordinators, joint lead managers and joint
bookrunners.
Yuzhou has a total US$1bn offshore debt
issuance quota expiring by the end of this
year. The company on February 27 priced
US$375m of three-year non-call two US
dollar senior bonds at par to yield 6.375%.
Hence, after these two issues, it still has
US$425m of quota left.
According to research firm Lucror
Analytics, Yuzhou has also obtained
approval to issue onshore bonds with a
quota of Rmb3bn (US$473m) and plans
to use the proceeds to pay for Rmb2bn
onshore bonds due in October.
Lucror noted that Yuzhou will likely
have to renegotiate the coupon on the
other three tranches of onshore bonds

that become puttable in the second half of

this year, as these coupons are below the

company’s average financial cost.

› CHINA AOYUAN SELLS US$200M BOND

CHINA AOYUAN PROPERTY GROUP, rated B1/B+/BB–,

priced US$200m three-year non-call two

US dollar senior notes at par to yield 7.50%,

inside initial 7.80% area guidance.

The Reg S notes have expected ratings of

B2/B/BB–.

The Hong Kong-listed Chinese real estate

company intends to use the proceeds to

refinance offshore debt.

AMTD, Bank of America Merrill Lynch, China

Citic Bank International, China Industrial

Securities International, China Minsheng Banking

Corp Hong Kong branch, China Merchants

Securities (HK), CEB International Capital,

Deutsche Bank, Guotai Junan International,

Haitong International and UBS were joint lead

managers and joint bookrunners.

› MORE FOR POLY

Hong Kong-listed POLY PROPERTY GROUP

reopened the 5.20% three-year US dollar

senior unsecured bonds due 2021 it priced

in March for US$150m, bringing the total

outstanding to US$500m.

The company sold the additional bonds

at 99.996 on April 27. Settlement will be on

May 7.

Proceeds from the tap will be used to

refinance offshore debt.

Wholly owned BVI subsidiary Ease Trade

Global is the issuer of the Reg S unrated

bonds and Poly Property Group is the

guarantor. The notes have the benefit of a

keepwell deed from ultimate state-owned

parent China Poly Group Corp.

DBS Bank, Guotai Junan International

and BOC International were joint global

coordinators as well as joint lead managers

and joint bookrunners with Haitong

International.

Poly Property is the sole offshore-listed

property flagship of China Poly Group.

› FANTASIA TAPS 2021S

FANTASIA HOLDINGS GROUP, rated B2/B (Moody’s/

S&P), has reopened the 8.375% US dollar

senior bonds due March 8 2021 it priced

earlier this year for US$150m.

The additional bonds were sold at 96.285

or a yield of 9.90%, equal to final guidance.

The outstanding size of the 2021s has

been increased to US$600m following

the tap. The Reg S notes are rated B3/B

(Moody’s/S&P).

The Hong Kong-listed Chinese property

developer plans to use proceeds from the

tap for debt refinancing.

Haitong International, UBS, Guotai Junan

International and Oceanwide Securities were

joint global coordinators, joint lead

managers and joint bookrunners.

S&P on April 19 downgraded Fantasia’s

rating to B from B+ with stable outlook, as

it expects the company’s financial leverage

to remain high over the next 12-24 months.

S&P believes the company may face

growing execution risks in expanding its

operating scale amid increased competition

in the property management segment.

› RED STAR MACALLINE HIRES BANKS

RED STAR MACALLINE HOLDING GROUP has hired

banks for a proposed offering of US dollar

senior notes.

CICC, Goldman Sachs, Haitong International,

Morgan Stanley and Standard Chartered Bank

are joint global coordinators as well as joint

bookrunners and joint lead managers with

BNP Paribas.

The company has started to meet

investors in Hong Kong and Singapore from

May 3.

Wholly owned subsidiary StarTai HK

will be the issuer of the Reg S unrated

notes and Red Star Macalline Holding is the

guarantor.

Red Star Macalline Holding has

businesses in home furnishings, real estate,

commercial property management and

cinema. It holds a 68.4% stake in Shanghai

and Hong Kong-listed Red Star Macalline

Group Corporation.

› MINMETALS LAND EYES PERPETUAL

MINMETALS LAND has hired banks for a

proposed offering of US dollar senior

perpetual capital securities.

Deutsche Bank, UBS, Morgan Stanley, BOC

International, Haitong International are joint

global coordinators as well as joint lead

managers and joint bookrunners with CLSA

and United Overseas Bank.

The company, the Hong Kong-listed

real estate flagship of state-owned China

Minmetals, will meet investors in Hong Kong,

Singapore and London, starting Monday.

Wholly owned subsidiary Excel Capital

Global is the issuer of the proposed unrated

Reg S perpetual notes and Minmetals Land

is the guarantor. The notes will also have

the benefit of a keepwell deed provided by

China Minmetals.

› HYDOO WRAPS UP EXCHANGE OFFER

Trade centre developer HYDOO INTERNATIONAL

HOLDING (B3/B–/B–) priced US$130m of new

two-year bonds as part of a new-money

issue and exchange offer for its old bonds.

The new-money offering was sized at