ASIA-PACIFIC
CHINA
AGILE PRICES US$400m TAPAGILE GROUP HOLDINGS, rated Ba2/BB (Moody’s/
S&P), on Thursday tapped its 8.50% July 18
2021 senior notes for US$400m to bring the
total issue size to US$600m.
The additional Reg S notes were sold at
PAR ûUNCHANGEDûFROMûlNALûGUIDANCEûANDûTHEû
same as when the original US$200m notes
were priced on July 11.
The three-year non-call two notes are
rated Ba3/BB (Moody’s/S&P).
After the latest tap, the Hong Kong-listed
Chinese real estate company has used up
the entire offshore debt issuance quota that
it received earlier this year.
Proceeds from the tap will be used to
RElNANCEûOFFSHOREûDEBT
BNP Paribas, BOC International, BoCom
International, CEB International, CICC, CMB
International, Guotai Junan International, HSBC,
Standard Chartered and UBS were joint
coordinators, lead managers and
bookrunners on the reopening.
4HEûTAPûDREWûlNALûORDERSûOFûMOREûTHANû
US$1bn, including interest from leads, from
127 accounts. Of the notes, 90% went to Asia
and 10% to Europe. By investor type, 58%
were fund managers and asset managers,
24% were private banks, and 18% were
banks.
Agile’s 8.50% 2021s were quoted at
100.337/100.645 on Friday afternoon,
according to Tradeweb.
Agile struggled to complete a modest
US$200m new issue in a weak market on
July 11 as its existing bonds plunged during
the bookbuilding and because of reports of
US-China trade tensions.
Investor demand was much stronger
this time as market sentiment has
improved.
Moreover, high-yield US dollar bonds
have attracted buying interest and
TRADEDûnûPOINTSûlRMERûLASTû
Thursday after media reported that
China’s central bank plans to introduce
incentives to increase the liquidity of
commercial banks, helping them to
expand lending and increase investment
in bonds issued by lower-rated companies
onshore.WEIFANG URBAN MANDATES
FOR DOLLARSWEIFANG URBAN CONSTRUCTION AND DEVELOPMENT
INVESTMENT GROUP, rated BBB– by Fitch, has
mandated CEB International and Guotai Junan
International as joint global coordinators for a
US dollar bond issue.
They are also joint bookrunners and joint
lead managers of the senior unsecured
bonds with Zhongtai International.
Fixed income investor meetings in Hong
Kong and Singapore start on Monday. The
proposed Reg S only offering is expected to
be rated on par with the issuer.
Weifang Urban is a state-owned company
wholly owned by the Weifang State-owned
Assets Supervision and Administration
Commission, according to a deal prospectus.
The issuer is one of the primary entities
involved in the development and
construction of urban infrastructure in
Weifang, a city in central-eastern Shandong
province.DEVELOPERS TURN TO BUYBACKSWhile many high-yield Chinese property
developers are battling to maintain their
access to the international capital markets,
others are buying back their securities in an
UNUSUALûBIDûTOûBOLSTERûINVESTORûCONlDENCECHINA EVERGRANDE GROUP (B1/B/B+), COUNTRY
GARDEN HOLDINGS (Ba1/BB+/BBB–) and SHIMAO
PROPERTY HOLDINGS (Ba2/BB+/BBB–) have all
bought back their shares since the start of
July.
CHINA SOUTH CITY, which develops and runs
logistics and trade centres, has bought back
US$16.5m of its US dollar bonds, according
TOûAûSTOCKûEXCHANGEûlLINGûONû*ULYûû4HEû""û
(S&P/Fitch) rated issuer has US$1.43bn of US
dollar bonds outstanding, according to
Thomson Reuters data.
“Our bond prices have slumped amid
recent market volatility to levels which we
THINKûDOûNOTûREASONABLYûREmECTûTHEû
company’s credit fundamentals. The
repurchase [of bonds] would help to
ENHANCEûINVESTORSûCONlDENCEûTOWARDSûOURû
bonds,” said Ryan Hui, China South City’s
CHIEFûlNANCIALûOFlCER
Hui stressed that the company’s
OPERATIONSûANDûCASHmOWûWEREûNORMALûANDû
said it might also consider buying back
shares if appropriate.
While it is common for companies to
repurchase shares to support their stock
price, a similar strategy in bonds is rare,
especially in the capital-intensive property
industry.
A banker at a Chinese investment bank
said he had suggested to some developers
that they could consider repurchasing part
of their dollar debt as some bonds were
obviously oversold. However, he thought
not many would do so.
“Many of them are already short of
funding, especially Single B credits. It is
impossible for them to put money for bond
repurchases. Moreover, even with abundant
liquidity, it is also not easy for them to move
money offshore,” the banker said.
2ESEARCHûlRMû,UCRORû!NALYTICSûVIEWEDûTHEû
repurchase positively, saying it may support
China South City’s bond prices and reduce
ITSûlNANCINGûCOSTS
It may also support future US dollar bond
ISSUANCE û,UCRORûADDED
China South City, which issued US$250m
of 10.875% 2020 bonds as recently as May
still has an unutilised offshore debt issuance
quota from the National Development and
Reform Commission that expires at the end
OFûTHEûYEAR ûACCORDINGûTOû,UCRORWINTIME SECURES AGREEMENT
WITH BANKSShanghai-listed coal company WINTIME ENERGY
said its parent company had secured
AGREEMENTSûWITHûlVEû#HINESEûBANKSûUNDERû
which the lenders will provide credit lines
to the company.
Wintime Group signed strategic
cooperation agreements with China
Development Bank, China Citic Bank, ChinaALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Asia-Pacific
Managing No of Total Share
bank or group issues US$(m) (%)
1 HSBC 131 14,337.24 8.1
2 Citigroup 68 8,974.46 5.1
3 Bank of China 95 8,581.46 4.9
4 Standard Chartered 80 7,864.96 4.5
5 Morgan Stanley 37 7,280.94 4.1
6 BNP Paribas 59 6,998.87 4.0
7 Credit Suisse 45 5,832.84 3.3
8 Citic 57 5,274.65 3.0
9 UBS 55 5,104.87 2.9
10 Deutsche Bank 45 4,835.59 2.7
Total 387 175,947.16
Excluding equity-related debt.
Source: Thomson Reuters SDC code: L4
ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 146 35,204.66 9.6
2 HSBC 184 30,463.25 8.3
3 JP Morgan 94 22,893.66 6.3
4 Deutsche Bank 74 20,523.99 5.6
5 Standard Chartered 121 19,517.81 5.3
6 BNP Paribas 89 14,167.79 3.9
7 BAML 66 11,084.48 3.0
8 Morgan Stanley 51 10,484.70 2.9
9 Credit Suisse 63 10,274.82 2.8
10 Bank of China 99 10,041.35 2.7
Total 595 365,283.93
Excluding equity-related debt.Source: Thomson Reuters SDC code: L1