IFR International - 20.10.2018

ASIA-PACIFIC

CHINA

SHANDONG GOLD SMASHES SYNDICATE
RECORD

SHANDONG GOLD GROUP, rated BBB– (S&P), on
-ONDAYûPRINTEDû53MûOFûSENIORû
UNSECUREDûNOTESûINûITSûlRSTû53ûDOLLARûBONDû
offering on a standalone basis, with the
support from a big syndicate helping it
across the line.
4HEûTHREE
YEARûû2EGû3ûBONDSûWEREû
PRICEDûATûûTOûYIELDûûORû
4REASURIESûPLUSûBPûTHEûTIGHTûENDûOFûlNALû
GUIDANCEûOFûBPnBPûANDûWELLûINSIDEû
initial 280bp area guidance.
The issue size was one of the largest
among recent new issues from a BBB–
Chinese credit.
“For a BBB– name and a provincial
government-owned entity, such an issue
size was not easy to achieve as market
sentiment remained weak,” a banker on the
deal said.
&INALûORDERSûOFûMOREûTHANû53MûFROMû
ûACCOUNTSûWEREûNOTûPARTICULARûSTRONGû
DESPITEûHAVINGûûJOINTûBOOKRUNNERSûONûTHEû
deal – the most for any Asian bond issue from
AûNON
lNANCIALûISSUERû/RDERSûHADûPEAKEDûATû
OVERû53BNûINCLUDINGûINTERESTûFROMûLEADSû
ATûTHEûTIMEûOFûTHEûRELEASEûOFûlNALûGUIDANCE
/FûTHEûNOTESûûWENTûTOû!SIAûANDûûTOû
%UROPEû"YûINVESTORûTYPEûûWENTûTOûBANKSû
ûTOûFUNDûMANAGERSûANDûINSURERSûANDûû
to private banks.
Shandong Gold Group paid more
generous terms than similar credit ZIJIN
MINING GROUP (rated Baa3/BBB–/BBB–), which
LASTûWEEKûPRICEDû53MûOFûTHREE
YEARû
NOTESûATûPARûTOûYIELDûûORû4REASURIESû
plus 230bp.

:IJINSûûSûWEREûQUOTEDûATûATû

ûORûBPûWIDEûOFû4REASURIESûBEFOREû

Shandong Gold announced initial guidance.

Nomura’s trading desk had suggested that

INVESTORSûPARTICIPATEûINûTHEûDEALûWITHûlNALû

GUIDANCEûOFûNOûLESSûTHANûnûORû

4REASURIESûPLUSûBPnBPûAFTERûADDINGû

BPnBPûOFûNEWûISSUEûPREMIUM

The newly priced notes traded 1bp–2bp

wider on Tuesday morning, according to a

trader.

SDG Finance I Limited is the issuer and

Shandong Gold Group is guarantor. The notes

have an expected BBB– rating from S&P.

The Chinese gold producer plans to use

PROCEEDSûFORûDEBTûRElNANCINGûANDûGENERALû

corporate purposes.

LARGE SYNDICATE

ABC International, ANZ, Bank of China and

Haitong InternationalûWEREûJOINTûGLOBALû

COORDINATORSûJOINTûBOOKRUNNERSûANDûJOINTû

lead managers. DBS Bank and SDG Securities

(HK) were active bookrunners.

Agricultural Bank of China Singapore branch,

BNP Paribas, BOC International, CCB

International, CMB International, CMB Wing

Lung Bank, China Citic Bank International, China

Everbright Bank Hong Kong branch, China

Minsheng Banking Corp Hong Kong branch, China

Securities International, ICBC (Asia), Industrial

Bank Hong Kong branch, JP Morgan, Morgan

Stanley, Ping An of China Securities (Hong Kong),

UBS and Zhongtai InternationalûWEREûJOINTû

BOOKRUNNERSûANDûJOINTûLEADûMANAGERS

CEB International and SPDB International

were not on the deal at the time of

MARKETINGûBUTûWEREûADDEDûASûJOINTû

BOOKRUNNERSûANDûJOINTûLEADûMANAGERSûWHENû

the deal was launched.

The banker on the deal said part of the

reason for the size of the syndicate was that

Shandong Gold Group, as one of the top

state-owned enterprises in eastern

Shandong province, has strong banking

relationships and wanted to honour those.

3HANDONGû'OLDû'ROUPûISûOWNEDûûBYû

the Shandong provincial State-owned Assets

Supervision and Administration

#OMMISSIONûANDûûBYûTHEû3HANDONGû

Provincial Council for Social Security Fund.

)NûûTHEûCOMPANYûISSUEDû53MûOFû

ûTHREE

YEARûBONDSûWITHûANûIRREVOCABLEû

standby letter of credit from Bank of China,

Shandong branch. The bonds will mature on

November 13.

SINGYES DEFAULTS ON OFFSHORE BONDS

CHINA SINGYES SOLAR TECHNOLOGIES HOLDINGS has

added to the growing list of defaults on

offshore US dollar bonds from China, after it

failed to meet a bond payment due on

October 17.

)NûAûSTOCKûEXCHANGEûlLINGûLATEûONû

4HURSDAYû3INGYESûCONlRMEDûTHATûITûHADû

FAILEDûTOûREPAYûTHEû53MûOFûû

day senior unrated notes due October 17.

The missed payment has also triggered an

EVENTûOFûDEFAULTûONûITSû2MBMûOFûû

convertible bonds due August 8 2019 and

53MûOFûûNOTESûDUEûûTHEûlLINGû

said.

4HEû(ONGû+ONG

LISTEDûCURTAINûWALLû

installation and solar engineering company

said it had also triggered cross-defaults

under certain bank facilities.

Singyes has appointed Admiralty Harbour

CapitalûASûlNANCIALûADVISERûANDûKirkland & Ellis

as legal adviser to identify and implement a

consensual resolution with its creditors.

It said its senior management was

reviewing the situation and considering a

range of solutions, including possible

disposals of some of its solar farms and

other assets. Other solutions may include

NEWûDEBTûORûEQUITYûlNANCINGûANDûDEBTû

RESTRUCTURINGûACCORDINGûTOûTHEûlLING

Prices on the company’s offshore bonds

SLUMPEDûFROMû-ONDAYû4HEûûSû

WEREûQUOTEDûATûAûBIDûPRICEûOFûûONû

&RIDAYûMORNINGûDOWNûFROMûûONû

/CTOBERûûACCORDINGûTOû2ElNITIVûDATAû.Oû

DATAûWEREûAVAILABLEûFORûTHEûûS

BOCOM TAPS SCARCITY DEMAND

BANK OF COMMUNICATIONS, SYDNEY BRANCH, rated

!!n!ûRAISEDû!Mû53M ûFROMûTHEû

lRSTû!USTRALIANûDOLLARûBONDûISSUANCEûBYûAû

Chinese bank in six months.

Last Tuesday’s three-year senior unsecured

mOATING

RATEûNOTEûOFFERINGûATTRACTEDûAûlNALû

ORDERûBOOKûINûEXCESSûOFû!M

4HEûLEVELûOFûDEMANDûENABLEDûJOINTûLEADû

managers ANZ, CBA, HSBC and NAB to price

the deal at the tight end of three-month

""37ûPLUSûBPnBPûAREAûGUIDANCEûANDû

ALMOSTûmATûTOû"O#OMSû53ûDOLLARûCURVE

.EARLYûTWO

THIRDSû   ûWASûBOUGHTûBYû

Australian investors, a record high

ALL 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 182 18,924.07 8.0
2 Citigroup 98 12,919.98 5.5
3 Bank of China  129 11,448.42 4.8
4 Standard Chartered 106 9,858.39 4.2
5 Morgan Stanley 58 9,743.16 4.1
6 BNP Paribas 76 8,697.88 3.7
7 BAML 53 7,784.33 3.3
8 Goldman Sachs 44 7,635.51 3.2
9 Credit Suisse 52 6,846.32 2.9
10 UBS 77 6,680.65 2.8
Total 533 236,321.59
Excluding equity-related debt.
Source: Refinitiv 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 198 44,117.24 9.4

2 HSBC 251 38,278.49 8.2

3 JP Morgan 129 29,176.85 6.2

4 Standard Chartered 164 24,159.92 5.2

5 Deutsche Bank 92 23,101.46 4.9

6 BNP Paribas 113 17,473.42 3.7

7 Goldman Sachs 60 14,885.40 3.2

8 BAML 79 14,418.45 3.1

9 Morgan Stanley 75 13,640.74 2.9

10 Bank of China  133 12,986.92 2.8

Total 809 467,744.44

Excluding equity-related debt.

Source: Refinitiv SDC code: L1