SEVEN REGISTER FOR OFFSHORE ISSUESState-owned CHINA STATE SHIPBUILDING
CORPORATION and six other Chinese
companies have registered with the state
planning agency, the National Development
and Reform Commission, to issue offshore
bonds.
The other registrants are CHONGQING LIFAN
HOLDINGS, SHANXI MEIJIN ENERGY, WESTERN MINING
GROUP, SF HOLDING, SHAANXI HUANGHE MINING
INDUSTRY GROUP and ZHUHAI SINGYES GREEN
BUILDING TECHNOLOGY, the NDRC announced
last Tuesday.
The agency did not say when the
registrations were approved.
HONG KONG
HANG LUNG DEBUTS PANDA BONDSHANG LUNG PROPERTIES printed Rmb1bn
(US$150m) Green Panda bonds in China’s
INTERBANKûBONDûMARKETû
ûTHEûlRSTû0ANDAû
bonds from a developer in three months.
The three-year notes were priced at par to
yield 5.0%, within an indicative price range
of 4.90%–5.50%. The offering, also available
to offshore investors via the Bond Connect
link, was 1.95 times covered. Deal statistics
were unavailable.
The Hong Kong-incorporated and listed
developer intends to use the proceeds for a
sustainable commercial project in Wuhan,
in central China’s Hubei province.
Both the notes and the issuer are rated
!!!!!!û#HINAû#HENGXIN#HINAû,IANHE
4HISûWASûTHEûlRSTûISSUEûUNDERûTHEû
developer’s Rmb10bn Panda bond
programme with the National Association
of Financial Market Institutional Investors.
The last Panda bond offering from a
developer was launched in early April, when
China Jinmao Holdings Group printed
Rmb3bn three-year Panda notes at par to
yield 4.99%.
Since late May, the NAFMII has halted
Panda bond offerings from overseas-
incorporated mainland Chinese property
developers, or red chips, in the interbank
bond market as part of a nationwide effort
to rein in rising housing prices.
However, non-mainland property
DEVELOPERSûSUCHûASû(ANGû,UNGû0ROPERTIESûAREû
still allowed to issue Panda bonds in the
interbank bond market, according to
sources familiar with the matter.
Bank of China was lead underwriter on
(ANGû,UNGSûOFFERINGûWITHûChina Construction
Bank as joint lead underwriter.INDIA
ROLTA REVISES RESTRUCTURING OFFERROLTA INDIA has announced a revised
restructuring support agreement for its
outstanding dollar bonds after it was able to
get the necessary funds in an escrow
ACCOUNT ûACCORDINGûTOûAûlLINGûONûEXCHANGES
The Indian software company, which
defaulted on offshore bonds in June 2016, is
offering improved recoveries for
bondholders in the new RSA.
Rolta had won support for a restructuring
proposal this February from an ad hoc
committee of some of the holders of its
US$200m 10.75% senior notes due 2018 and
US$300m 8.875% senior notes due 2019. But,
in April, that RSA broke down after the
software company failed to transfer funds to
an escrow account by April 20.
Under the revised proposal, the existing
senior bonds would be exchanged for
US$53m of upfront cash compared with
US$50m under the initial proposal. About
US$4.2m of work fees will be paid to the ad
hoc committee members, and consent fees
will be paid to the senior note-holders who
sign and vote in favour of the agreement.
Under the offer, US$270m of 4%
unsecured one-year notes can be fully
redeemed prior to maturity for US$107.5m,
an improvement of US$7m from the initial
proposal. It also includes US$230m of 4%
lVE
YEARûNOTES ûWHICHûCANûBEûFULLYûREDEEMEDûprior to one year for US$113m or within two
years for US$156m.
4HEûINTERESTûONûONE
YEARûANDûlVE
YEARû
bonds will accrue from April 30 and will be
paid quarterly. In addition to one and two-
year redemption rights, Rolta has also given
ANûOPTIONûTOûFULLYûREDEEMûONE
YEARûANDûlVE
year notes via an additional payment of
US$152m within 90 days from the
restructuring date.
The restructuring proposal will halve
Rolta’s annual interest expenses and
strengthen its capital structure.
To pass, the proposal needs approval from
a majority of bond investors by number and
holders of two-thirds of the notes by value.
The restructuring is targeted to close by the
second half of this year.SINGAPORE
UOB TICKS SYDNEY BOXESUNITED OVERSEAS BANK (Aa1/AA–/AA–), acting
through its Sydney branch, achieved or
exceeded its size, pricing and distribution
targets with last Tuesday’s A$600m 3.5-year
mOATING
RATEûNOTEûSALEûARRANGEDûBYûJOINTû
leads ANZ, NAB, UBS and UOB.
The issuer’s largest domestic note priced
inside 83bp area guidance at three-month
BBSW plus 81bp. This is 6bp more than the
current 75bp clearing rate for Aa2/AA–/AA–
rated Aussie major bank three-year paper, or
BASICALLYûmATûTOûTHEûMAJORSûGIVENû5/"ûNOTESû
additional six-month tenor.
UOB was particularly pleased with the
high domestic participation rate, which
exceeded its previous deals in Australia.
Australian accounts bought 77% of the
new January 2022s with Asia taking the
REMAININGûû/FlCIALûINSTITUTIONSûWEREû
allotted 47%, asset managers 25%, banks
25%, middle market investors 2% and
others 1%.
4HEûNOTEûPRICEDûmATûORûJUSTûINSIDEûTHEû
issuer’s secondary curve before tightening
1bp post pricing.Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
Jul 16 2018 Bank Rakyat Indonesia US$500m Jul 20 2023 4.625 99.696 T+195 4.694Jul 16 2018 Angola US$500m incr
(US$1.75bn)May 8 2048 9.375 102.76 9.1Jul 17 2018 UOB (Sydney branch) A$600m Jan 24 2022 3mBBSW+81 100 3mBBSW+81 -
Jul 18 2018 Korea Hydro & Nuclear
PowerUS$600m Jul 25 2023 3.75 99.378 T+112.5 3.888Jul 19 2018 Agile Group US$200m incr
(US$600m)Jul 18 2021 8.5 100 - 8.498Jul 19 2018 SF Holding US$500m Jul 26 2023 4.125 99.785 T+140 4.173GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 20/7/2018
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)