margin of 130bp over Hibor or Libor, lenders
are being offered a top-level all-in pricing of
155bp via a participation fee of 75bp.
For full allocations, see http://www.ifrasia.com.
› DONG YIN SIGNS US$100M LOAN
DONG YIN DEVELOPMENT (HOLDINGS), the parent
of China Orient Asset Management
(International) Holding, has signed a
US$100m three-year term loan.
Taipei Fubon Commercial Bank was the
mandated lead arranger and bookrunner of
the transaction, which offered an interest
margin of 215bp over Libor and has an
average life of 2.75 years.
Lenders were offered a top-level all-in
pricing of 230bp over Libor via a 40bp
management fee. Signing was on April 27.
Funds are for general corporate purposes.
Dong Yin Development is a unit of state-
owned China Orient Asset Management.
For full allocations, see http://www.ifrasia.com.
› POWERLONG FUNDS NINGBO PROJECT
Hong Kong-listed developer Powerlong Real
Estate Holdings has signed a Rmb700m
three-year term loan with two banks to
finance a project in Ningbo city.
Bank of East Asia provided Rmb400m, split
equally between its Shanghai and Ningbo
branches. China Everbright Bank Ningbo
branch committed Rmb300m.
The borrower is NINGBO YUAN DA INDUSTRY
INVESTMENT. The parent company is the
guarantor.The secured loan, signed on April
26, will be repaid via six unequal, semi-
annual installments.
The project, under construction at the
Ningbo High-tech Zone, will have flats
and retail space, with an estimated total
investment of Rmb2.5bn.
Powerlong signed a US$120m three-year
term loan with Bank of China (Hong Kong),
BEA and Wing Lung Bank in May 2016 to
refinance Rmb800m 9.5% senior notes. That
deal paid a margin of 400bp over Libor.
The company, rated B+ by S&P, is majority
owned by its founder and chairman Hoi Kin
Hong and his son Hoi Wa Fong.
EQUITY CAPITAL MARKETS
› BANKS PITCH FOR TENCENT MUSIC GIG
Banks are set to pitch TENCENT MUSIC
ENTERTAINMENT, China’s largest music-streaming
company, this week for a US IPO which could
raise about US$3bn–$4bn, according to people
familiar with the situation.
The entertainment and music arm of tech
giant Tencent plans to wrap up the float by
the end of the year, according to the people.
A spokesperson from Tencent said the
company would not comment on market
speculation or rumours.
Tencent Music was valued at around
US$12.3bn in late 2017 when Europe’s
Spotify Technology swapped a stake with
it. Under the agreement, Spotify owns
about 9% of Tencent Music while Tencent
Holdings owns a 7.5% stake in Spotify.
Existing shares of Tencent Music were
reportedly changing hands at a valuation
of about US$25bn in March. People close
to the deal said the company is expected to
seek an IPO valuation at around that level.
As of last Wednesday, Spotify had a
market capitalisation of US$30bn.
Tencent Music first started discussions
with banks for an IPO late last year.
Progress was slow, however, as the
company was busy with the Spotify
transaction. The group considered a Hong
Kong listing at one point after the city
decided to amend its listing rules to attract
more listings from Chinese technology
companies, say the people.
Tencent Music, however, decided to go
for a US listing as its comparable Spotify is
listed there and the Hong Kong Exchanges
and Clearing’s newly introduced rules
do not allow corporate entities to hold
weighted voting rights for now, according
to the people. The stock exchange will
launch a separate consultation by 31 July
2018 to explore such an option.› GAME ON FOR STREAMING IPOHUYA, the game-streaming unit of Nasdaq-
listed YY, has launched a NYSE IPO of up to
US$180m.
The company, which is also backed by
Chinese internet giant Tencent Holdings, is
selling 15m primary American depositary
shares at an indicative price range of
US$10–$12 each.
The range represents a 2019 P/E of
17.4–21.0 and a 2019 P/S of 2.0–2.4. It
also implies a market capitalisation of
US$2.18bn–$2.63bn before the greenshoe
is exercised. There is a greenshoe of 15% of
the base deal.
The deal will price on May 10.
Credit Suisse, Goldman Sachs and UBS are
joint bookrunners.
After the offering, YY will own 44.5% in
Huya while Tencent will own 32%.
Huya is one of China’s biggest live-
streaming platforms for online gaming,
with 86.7m monthly active users in the
fourth quarter, up 17.2% from a year
earlier, according to a regulatory filing.
The company posted a 2017 net loss of
Rmb81m (US$12.4m), from a 2016 loss of
Rmb625.6m. Revenues nearly tripled to
Rmb2.18bn.› HAIER D-SHARE SALE APPROVED
Shareholders of Shanghai-listed QINGDAO
HAIER have approved the company’s plan
to issue D-shares in Frankfurt, the first
of a new class of equities for Chinese
companies.
The home appliances manufacturer plans
to issue not more than 400m D-shares.
There is a greenshoe option of 15% of the
base size.
The Frankfurt listing could raise around
US$1bn.
D-shares, similar to Hong Kong-listed
H-shares, are new instruments being
touted by the China Europe International
Exchange (CEINEX), a joint-venture
trading platform that the Shanghai
Stock Exchange, China Financial Futures
Exchange and Deutsche Boerse created in
November 2015.
CEINEX markets itself as a gateway for
Chinese firms looking to access European
investors, offering renminbi-denominated
products, including stocks, bonds and
exchange-traded funds on the Frankfurt
Stock Exchange’s existing infrastructure
and under German regulations.› KEPEI EDUCATION FILES FOR IPOCHINA KEPEI EDUCATION GROUP has filed an
application to the Stock Exchange of Hong
Kong for a proposed IPO.
The provider of private higher vocational
education in south China plans to raise
about US$200m, according to people close
to the deal.
The company posted 2017 profit of
Rmb230.9m (US$36m) on revenue of
Rmb455.4m.
Citigroup and CCB International are joint
sponsors.› TWO FIRMS TO SELL RIGHTSSDIC POWER has applied to the China
Securities Regulatory Commission for a
proposed rights issue of up to Rmb7bn
(US$1.1bn).
The power producer plans to offer up to
1.49bn rights shares on a 2.2-for-10 basis.
Proceeds will be used for construction of
two hydropower plants.
Credit Suisse Founder Securities is working
on the transaction.
YIHUA HEALTHCARE has secured board
approval for a proposed rights issue of
up to Rmb3bn. The company plans to
offer up to 134m right shares on a 3-for-
10 basis. Proceeds will be used to fund
a hospital construction project, repay
debts and replenish working capital.
Shareholders will review the proposal on
May 18.