YHID is an infrastructure investment
platform of the Yichang municipal
government. It invests in and builds
public works, such as land and urban
development, industrial parks and social
housing, in the Yichang High-Tech
Development Zone in Hubei province.
› CHINA MERCHANTS BANK HK GOES DUAL
CHINA MERCHANTS BANK HONG KONG BRANCH has
priced a US$800m bond equally split
between a three-year floating-rate note and
five-year fixed bond.
The three-year floaters priced at three-
month Libor plus 77.5bp, inside guidance
of L+100bp area, while the five-year notes
priced at Treasuries plus 115bp, inside
initial indications of T+130bp area.
The dual-tranche notes have expected
ratings of A3 by Moody’s. China Merchants
Bank Hong Kong shares the same rating,
and also has ratings of BBB+ by S&P and
BBB by Fitch.
The senior unsecured notes will be
drawn off an MTN programme.
Citigroup (B&D), CMB International and
JP Morgan were joint global coordinators.
They were also joint bookrunners and joint
lead managers with Bank of China, Bank of
America Merrill Lynch, Credit Agricole, HSBC
and Standard Chartered. The other joint
bookrunners are OCBC Bank, Wing Lung Bank,
ANZ, China Minsheng Banking Corp Hong Kong
branch and KGI Asia.› SHENZHEN INVESTMENT SELLS DUALSHENZHEN INVESTMENT HOLDINGS, rated A2/A/
A+, has priced a US$700m bond across
three and five-year US dollar notes. Orders
reached over US$1.8bn from 90 accounts.
The US$400m three-year bond priced at
Treasuries plus 135bp, and the US$300m
five-year at Treasuries plus 155bp.
Asia accounted for the majority of the
deal, buying 89% of the three-year notes
and 95% of the five-year bonds. EMEA
accounted for 11% and 5% respectively.
Fund managers and banks/financial
institutions bought the largest portions
on the 3.95% 2021s, taking 48% and 43%respectively. The remainder was taken up
by insurers, which purchased 7% of those
notes, and private banks which bought 2%.
Fund managers accounted for 54% of the
4.35% 2023s, followed by banks/financial
institutions at 27%, insurers/sovereigns with
18% and private banks 1%.
Both tranches priced inside initial
indications of Treasuries plus 160bp area
and 180bp area.
SIHC International Capital is the issuer
and Shenzhen Investment Holdings is the
guarantor. The benchmark Reg S issue has
expected ratings of A2/A/A+.
Proceeds are to refinance offshore debt
and for general corporate purposes.
HSBC, Goldman Sachs, CICC, ICBC and
Guosen Securities (HK) were joint global
coordinators. They were also joint lead
managers and joint bookrunners with
Morgan Stanley, DBS Bank, CMB International,
China Minsheng Banking Corp Hong Kong
branch, OCBC Bank, CLSA, Guotai Junan
International, and China Securities International.
Shenzhen Investment Holdings is
100% owned by the Shenzhen municipal
government. It has investments in financial
services, transportation and logistics,
industrial parks, real estate, construction,
manufacturing, education, culture and
human resources services.› SICHUAN PROVINCIAL PRICES BONDSICHUAN PROVINCIAL INVESTMENT GROUP, rated
Baa1/A- by Moody’s/Fitch, has priced a
US$300m three-year bond at 4.88%, inside
initial indications of 5.3% area. Orders
reached US$1.6bn.
Asia accounted for 99% of the notes,
followed by EMEA at 1%. Banks accounted
for 64% of the Reg S bonds, followed by
fund managers at 34%, with the rest going
to private banks and other investors.
SCIG International Financial will issue
the notes, which will be guaranteed
by Sichuan Provincial. The bonds have
expected ratings on par with the guarantor.
Proceeds will be used for project
investments and general corporate purposes.
Citigroup (B&D) and ICBC International
were joint global coordinators, and joint
bookrunners and joint lead managers
with Bank of China, CCB International, CMB
International, China Citic Bank International,
Guotai Junan International and Shanghai
Pudong Development Bank Hong Kong branch.› WHARF PRINTS TWO-YEAR PANDA BONDSHong Kong conglomerate WHARF (HOLDINGS)
has printed Rmb2bn (US$292m) two-year
Panda bonds at 4.48% in China’s interbank
bond market, according to a source close to
the deal.Tewoo postpones dollar bond
Bonds Deal fails to price, despite US$150m anchor ordersTEWOO GROUP postponed a two-year US dollar
bond after it failed to draw sufficient offshore
demand, adding to the list of pulled deals
from Asia this year.
Tewoo Group No 5 had announced final
guidance of 8.25% last Tuesday morning,
with an official term-sheet highlighting that
the transaction had already received strong
anchor interest.
But the deal failed to garner enough orders
despite a banker on the deal saying there
were about US$150m in anchors at the start.
Tewoo was said to be eyeing proceeds of
around US$200m–$300m.
Lower-rated ZHENRO PROPERTIES GROUP and
MAOYE INTERNATIONAL HOLDINGS, which both have
Single B ratings, still managed to price deals
their deals at double-digit yields of 13.7% and
13.25% respectively on the same day. (See
News.)
A second banker said Tewoo offered a
“generous” premium over secondary levels,
but the lack of demand and unreliable orders
were to blame.
“We had a problem with banks promising
the company that they had sufficient orders,
but that did not come through in the end,”
said a third banker. “We agreed to go ahead
with the deal because other banks said
there was enough demand. We saw Tewoo’scomparables widen amid rising US-China
trade tensions, and were not comfortable
going ahead to price this.”
The Chinese state-owned commodities
trading and logistics company has a
US$550m offshore issuance quota from
the National Development and Reform
Commission.
Tewoo’s outstanding 5.8% perps have been
under pressure this year and were spotted
towards the end of last week at a cash price of
87.5/89.0, according to Tradeweb.
Those perps plunged in May after
negative headlines related to the default of a
property firm owned by the Tianjin municipal
government, which is Tewoo’s parent.
Tewoo Group No 5 was expected to issue the
bonds with a guarantee from Tewoo Group.
The Reg S senior unsecured bonds were
expected to be rated BBB by Fitch, in line with
the guarantor.
Barclays, CCB International and DBS
were joint global coordinators. They were
also joint bookrunners with China Citic
Bank International, AMTD, Guotai Junan
International and BoCom International.
The issuer planned to use the proceeds for
working capital, to repay debt and for general
corporate purposes.
FRANCES YOON