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 BONDSCHINA 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
DATAûWEREûAVAILABLEûFORûTHEûûSBOCOM TAPS SCARCITY DEMANDBANK 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 highALL 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