US$25.893m with an issue price of 98.287
and a 12% coupon to yield 13%, in line with
guidance. Hydoo had previously announced
a minimum yield of 12% for the new US
dollar issue.
It ran alongside an exchange offer for
Hydoo’s US$160m 13.75% senior notes due
December 15 2018. Hydoo agreed to accept
US$98.4m of the 2018 notes and will issue
US$104.107m of new notes in exchange.
Under the exchange offer, holders will
receive US$1,040 of new notes for every
US$1,000 of principal in existing notes
tendered. The new Reg S notes are expected
to be rated B– by Fitch.
Proceeds from the new-money offering
will be used to refinance the old notes,
among other things.
Haitong International and Morgan Stanley
were dealer managers on the exchange
offer. They were also joint global
coordinators and bookrunners for the new
issue. Potomac Capital was joint bookrunner.
› R&F REDEEMS
GUANGZHOU R&F PROPERTIES, rated Ba3/B+/BB–,
has redeemed US$400m of its US$800m
5.25% notes due October 2018 via a tender
offer.
The amount was the maximum
under the tender from the Hong Kong-
listed Chinese real estate company. The
redemption price was 100.6 and settlement
took place on April 27.
Guangzhou R&F now has US$400m of the
2018s outstanding.
The company on April 17 priced
US$600m three-year non-call two US dollar
senior notes at par to yield 7.00% to fund
the tender offer and for general corporate
purposes.
Goldman Sachs was the dealer manager of
the tender offer.
› BUSAN BANK MARKETS DIM SUM NOTES
BUSAN BANK, a regional bank in South Korea,
rated A2/A– (Moody’s/S&P), was marketing
Reg S three-year Dim Sum bonds at final
price guidance of 4.85%–4.90% last Friday.
SG Securities (HK) Taipei branch and
Standard Chartered Bank (Taiwan) are joint
bookrunners.
The issue is expected to be rated A2 by
Moody’s.
› HSBC BANK (CHINA) PLANS COMEBACK
HSBC BANK (CHINA) is looking to come back to
China’s onshore bond market for funding
after its debut issue in September 2017.
The bank plans to issue Rmb3bn three-
year senior unsecured notes in China’s
interbank bond market as early as this
month, according to market sources.
It will be its second print under the
bank’s Rmb10bn bond programme
approved by the China Banking Regulatory
Commission and People’s Bank of China.
In September 2017, the lender printed
Rmb2bn three-year notes at par to yield
4.68%. The notes were rated AAA by China
Chengxin.› FIFTH PANDA FOR GLPGLOBAL LOGISTIC PROPERTIES has raised
Rmb1.5bn from its fifth offering of Panda
bonds this year.
The the nine-year notes, which come
with put options for investors at the end of
years three and six, priced at par to yield
5.09%, within the indicative price range of
4.5%–5.5%.
The proceeds from the the “Belt and
Road” bond, listed on the Shenzhen Stock
Exchange, 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). The bonds and the
issuer have AAA ratings from Shanghai
Brilliance Credit. China Merchants Securities
was sole lead on the issue.› CNNC PRINTS RMB3BN NOTESCHINA NATIONAL NUCLEAR CORPORATION has raised
Rmb3bn from an offering of three-year
notes in China’s interbank bond market.
The notes were priced at par to yield 4.65%,
within an indicative range of 4.0%–4.90%.
Both the notes and the issuer are AAA
rated by China Chengxin.
The proceeds will be used to refinance
debt and to replenish capital.
This is CNNC’s first bond issue this year.
The Export-Import Bank of China is lead
underwriter and bookrunner on the
offering with China Galaxy Securities as joint
lead underwriter. CNNC Finance is financial
adviser.› CEFC DOWNGRADED TO BBB–China Chengxin International Credit Rating
has downgraded a subsidiary of CEFC China
Energy for a third time since its chairman
Ye Jianming was reported in early March
to have come under investigation for
suspected economic crimes.
The agency cut the issuer’s rating of CEFC
SHANGHAI INTERNATIONAL GROUP on May 2 to
BBB– from AA–, citing concerns over CEFC
Shanghai’s ability to service debt after it
was revealed that one of its subsidiaries
had missed payment on some debt under
financial pressure.CEFC Anhui International Holding,
a Shenzhen-listed subsidiary of CEFC
Shanghai, was found to have overdue debt
of Rmb794m, including a trust loan of
Rmb294m, according to an audit report
with a disclaimer of opinion by Shanghai
Certified Public Accountants. The audit
report was filed to the Shenzhen Stock
Exchange on April 26.
Meanwhile, CEFC Shanghai has yet to
publish its annual report, which should
have been released by April 30. The delay
is “due to the great uncertainties the
company faces”, the company said in a
statement.
China Chengxin said it had
communicated with CEFC Shanghai with
regard to the recent development but failed
to get valid information.
The agency first downgraded CEFC
Shanghai to AA+ from AAA in March and
then cut the rating further to AA– in early
April.
CEFC Shanghai this month withdrew a
plan to issue up to Rmb5bn bonds on the
Shanghai Stock Exchange.
According to the preliminary prospectus
for the bond plan, CEFC Shanghai and its
subsidiaries have outstanding bonds of over
Rmb30bn. It faces imminent repayment
pressure on May 21, when its Rmb2bn 6.0%
short-term notes becomes due.
Reuters reported earlier this month
that CEFC China Energy was planning
asset sales to ease a financial crunch. Two
sources with knowledge of the matter told
Reuters that state-run conglomerate CITIC
Group was conducting due diligence on
CEFC China Energy’s stake in onshore oil
fields in Abu Dhabi to possibly take over
CEFC’s energy business.
CEFC Shanghai has been meeting
domestic bondholders since last Friday.
Bondholders, in proposals submitted to the
meetings, have asked the issuer to clarify
recent media reports and to provide more
credit enhancement measures to its bonds,
among other things.
CEFC’s US$250m 5.950% bonds due
November 2018 were quoted at 7.34%/7.25%
last Friday afternoon, according to
Thomson Reuters data.STRUCTURED FINANCE
› EVERGRANDE PLANS RENTAL ABSProperty developer EVERGRANDE GROUP
plans to raise up to Rmb10bn from a
securitisation of rental housing assets.
The securities will be privately placed
to institutional investors on the Shanghai
Stock Exchange, according to a preliminary
filing to the SSE.