Fan, who previously worked at Morgan
Stanley and Credit Suisse, is one of the
country’s most famed rainmakers in the
technology sector.
China Renaissance posted a loss of
US$66m for the three months ended March
31 2018, compared with a loss of US$2.5m
over the same period in 2017. It lost
US$13.5m in 2017.
Goldman Sachs and ICBC International are
the joint sponsors. They are also joint
global coordinators and joint bookrunners
with ABC International and China Renaissance.
There are five other bookrunners.
› ALPHA SMART FILES US$200M HK IPO
Chinese menswear company ALPHA SMART
has filed for a Hong Kong IPO of about
US$200m, people with knowledge of the
deal said.
Citigroup, CMB International and Credit
Suisse are joint sponsors for the float.
Great World Glory, controlled by
Singapore-based private equity firm L
Catterton Asia, holds a 73% stake in Alpha
Smart. Singaporean private equity firm
Crescent Glory owns the other 27%.
Proceeds from the IPO will be used to
acquire brands or strike strategic alliances,
upgrade retail stores and establish a
logistics centre.
Alpha Smart owns brands such as GXG,
Yatlas and 2XU. It runs 708 self-owned
stores, 538 partnership stores and 967
distributor stores in China.
The company posted a profit of
Rmb107m (US$15.6m) for the first half
of this year, down from Rmb144m a
year earlier. It made an annual profit of
Rmb422m in 2017 and Rmb400m in 2016.
› CHINA HUARONG CANCELS A-SHARE IPO
Hong Kong-listed CHINA HUARONG ASSET
MANAGEMENT has decided to withdraw its
application for an A-share listing, according
to a company announcement.
The company first proposed an A-share
offering in June 2016 and has been waiting
for regulatory approval since.
In the announcement, the company said
the marked decrease in the interim results
of 2018 compared to a year ago and the
investigation of a former chairman by the
authorities may affect the review of the
A-share offering and hence it had decided
to withdraw the application.
Huarong reported a net profit of
Rmb684m for the first half of 2018, down
95% year on year.
In April, Huarong’s former chairman Lai
Xiaomin, who is under investigation for
alleged corruption, stepped down.
The bad-debt asset manager planned to
sell up to 6.89bn A-shares, or about 15% of
its enlarged capital.
CICC and Huarong Securities were joint
sponsors on the listing.
Proceeds were to be used for working
capital and to develop the company’s major
businesses.› JP MORGAN REOPENS PING AN EBJP Morgan has raised US$100m from a tap of
a 2.5-year cash-settled exchangeable bond,
with the H-shares of Ping An Insurance
(Group) Company of China as the reference
shares.
The funds raised were double the size
of the US$50m target when JP Morgan
reopened the deal last Monday. The
reference issue price was set at 103.25%.
Investors will receive cash upon
conversion of the EBs, rather than shares in
Ping An.
The share price of Ping An has been
strong since JP Morgan sold the EB on July
17 and the EB has also been trading well in
the secondary market.
Last week’s tap was mainly sold to
investors that wanted more exposure to
the EB.
JP Morgan was the issuer and also the
sole bookrunner.
The net proceeds will be used for general
corporate purposes, including hedging
arrangements.
On July 17, JP Morgan raised US$350m
from the Ping An-linked EB. The EB carried
a zero coupon and zero yield-to-maturity.
The exchange premium was set at 16%,
versus the marketed range of 15%–20%.HONG KONG
DEBT CAPITAL MARKETS
› AIA GROUP PRINTS FLOATERInsurer AIA GROUP (A2/A/AA–) last Wednesday
priced a US$500m three-year floating-rate
senior unsecured note offering at par to
yield three-month Libor plus 52bp, from a
guidance range of 52bp–55bp and initial
thoughts of 60bp area.
Goldman Sachs and JP Morgan were joint
global coordinators for the 144A/Reg S
trade. They were also joint bookrunners
with Citigroup and Morgan Stanley.› SHUI ON LAND SEEKS AMENDMENTSSHUI ON LAND is seeking approval from
bondholders to amend certain terms ofthree of its outstanding bonds to gain
greater flexibility to pay dividends, to
redeem, repurchase or acquire its shares,
and to make other investments.
The Hong Kong-listed Chinese property
company aims to modify the provisions
of the indentures relating to the covenant
entitled “Limitation on Restricted
Payments” and the definition of “Permitted
Investment”.
The three bonds involved are US$250m
4.375% notes due 2019, US$500m 5.70%
notes due 2021 and Rmb2.2bn 6.875% notes
due 2021.
Holders of the 4.375% 2019s and 5.70%
2021s will receive US$5.00 per US$1,000 in
principal amount, while those of the 6.875%
2021s will receive Rmb50 per Rmb10,000
in principal amount, if they agree to the
changes.
The deadline for the consent solicitation
is September 21.
Standard Chartered Bank is the sole
solicitation agent and DF King is the
tabulation and information agent.SYNDICATED LOANS
› FAR EAST HORIZON IN FAST RETURNFinancial services company FAR EAST HORIZON
is talking to relationship banks for a return
to the loan market, six months after it
closed two borrowings totalling US$1.3bn.
The borrower held meetings with banks
to gauge appetite for the new loan, details
of which are yet to be finalised.
Hong Kong-listed Far East Horizon, a
unit of state-owned Sinochem Group, is
a frequent visitor to the loan market. In
March, it signed a US$1.12bn-equivalent
three-year offshore bullet facility with 17
banks and a Rmb1.23bn (US$194m then)
three-year onshore amortising term loan
with six lenders.
The former paid a top-level all-in pricing
of 155bp via an interest margin of 130bp
over Libor/Hibor, while the latter offered a
top-level all-in of 112.8% of the PBoC rate
based on a margin of 105% of the PBoC rate.› FIRST PACIFIC CLOSES US$200M LOANHong Kong-listed First Pacific has closed
a US$200m six-year term loan following
commitments from six lenders in general
syndication.
Mizuho Bank was the sole mandated lead
arranger, bookrunner and underwriter, and
partially pre-funded the deal in May.
The loan offered a top level all-in pricing
of 130.35bp via an interest margin of 120bp
over Libor and an average life of 4.83 years.
The borrower is FP TREASURY (2018), a British