is the issuer of the Reg S unrated notes and
:HEJIANGû'EELYûISûTHEûGUARANTOR
FOUNDER SECURITIES (HONG KONG) FINANCIAL
HOLDINGS hired banks to arrange investor
MEETINGSûINû3INGAPOREûANDû(ONGû+ONG û
which began on October 19.
Founder Securities (Hong Kong) Capital, Guotai
Junan International, BOC International, Natixis
and Industrial Bank Hong Kong branchûAREûJOINTû
GLOBALûCOORDINATORSû4HEYûAREûALSOûJOINTû
bookrunners with Haitong International,
Zhongrong PT Securities, Zhongtai International,
DBS, Orient Securities (Hong Kong) and
Oceanwide Securities.
A US dollar Reg S senior unsecured bond
offering may follow.
First FZ Bond will be issuer for the
proposed bond offering, which will have a
guarantee from Chinese brokerage Founder
3ECURITIESû(ONGû+ONG û&INANCIALû(OLDINGSû
and a keepwell deed from Founder
Securities.
The bonds are expected to be unrated.
LIUZHOU DONGTONG INVESTMENT & DEVELOPMENT
has hired Guotai Junan International and CCB
InternationalûASûJOINTûGLOBALûCOORDINATORS û
JOINTûBOOKRUNNERSûANDûJOINTûLEADûMANAGERSû
for a proposed offering of US dollar senior
unsecured bonds.
The state-owned integrated infrastructure
developer in Liuzhou, in the Guangxi
Zhuang Autonomous Region, met investors
INû(ONGû+ONGûANDû3INGAPORE ûFROMû/CTOBERû
The proposed Reg S notes have an
expected BB rating from Fitch, in line with
the issuer.
ZHAOJIN MINING INDUSTRY,rated BB+/BB (S&P/
Fitch), has hired Credit Suisse as sole global
coordinator, bookrunner and lead manager
for a proposed offering of US dollar bonds.
The Chinese gold producer will meet
INVESTORSûINû(ONGû+ONG û3INGAPOREûANDû
London, starting on October 22.
The proposed Reg S bonds will be issued
BYûWHOLLYûOWNEDûSUBSIDIARYû:HAOJINû-ININGû
International Finance and guaranteed by the
(ONGû+ONG
LISTEDûPARENT
The notes have expected ratings of BB+/BB
(S&P/Fitch), in line with the guarantor.
0ROCEEDSûWILLûBEûUSEDûFORûDEBTûRElNANCINGû
and general corporate purposes.
:HAOJINû-ININGûSAIDûINû-ARCHûITûPLANNEDû
to issue up to US$300m in offshore bonds.
INDIA
STABILITY LURES BACK INDIAN ISSUERSTop-rated Indian issuers such as RELIANCE
INDUSTRIES and HOUSING DEVELOPMENT FINANCE
CORP returned to the domestic bond market
this month, taking advantage of renewed
stability following coordinated efforts from
the government and central bank to settle
the market.
Investors had been on the sidelines since
Infrastructure Leasing and Financial Services
missed a string of debt payments beginning
in late August, but the dust has begun to
settle after the government took control of
the board and took action to support the
bond market.
Both Reliance and HDFC have come back
to the bond market nearly a year after their
last visits. The oil-to-telecoms conglomerate
RAISEDû2SBNû53M ûFROMûTHEûSALEûOFû
YEARûBONDSûATû ûAFTERû)NDIASûLARGESTû
PRIVATEûHOUSINGûlNANCEûCOMPANYûRAISEDû
2SBNûATûTHEûSAMEûTENORûANDûYIELD
HDFC priced its bonds at a 100bp spread
over 10-year government bonds, which is a
normal spread compared with the past few
years, said Conrad D’Souza, member of
executive management and chief investor
RELATIONSûOFlCERûFROMû($&# ûINûAûPANELû
discussion with S&P on October 11.
“The private placement of bonds has
resumed. Earlier, if 10 deals were happening
in a week, it had gone down to near zero in
the past few weeks and now we are seeing
DEALûmOWûPICKûUP vûSAIDû,AKSHMIû)YER ûCHIEFû
INVESTMENTûOFlCERûOFûDEBTûANDûHEADûOFû
PRODUCTSûATû+OTAKû-UTUALû&UND
LIC HOUSING FINANCE also raised a total of
2SBNûFROMûTWOûTRANCHESûOFûDOMESTICû
bonds in the past week, while MAHINDRA
RURAL HOUSING FINANCE and RURAL
ELECTRIFICATION CORPûRAISEDû2SMûANDû
Rs21.71bn each from short-tenor bonds.
State-owned NATIONAL BANK FOR AGRICULTURE
AND RURAL DEVELOPMENT raised Rs12.89bn from
Aû
YEARûBONDûISSUEûANDûHOUSING AND URBAN
DEVELOPMENT COMPANY is in the market with a
government-serviced 10-year deal.
The offerings came as India’s 10-year AAA
RATEDûCORPORATEûBONDûYIELDSûEASEDûTOûû
LASTûWEEKûFROMûAûFOUR
YEARûHIGHûOFûûONû
/CTOBERû ûACCORDINGûTOû2ElNITIVûDATA
This month, regulator National Housing
"ANKûINCREASEDûTHEûRElNANCINGûLIMITûFORûTHEû
NBFC sector, State Bank of India said it
would step up its target to buy good quality
NBFC assets, and Reserve Bank of India
allowed banks to lend more to NBFCs,
HELPINGûRESTOREûCONlDENCEûINûTHEûDEBTû
market.
These actions “lent a hand in restoring
temporary stability”, said Radhika Rao,
economist from DBS Bank in a note on
/CTOBERû
Separately, the central bank also kept
INTERESTûRATESûONûHOLDûONû/CTOBERûûDUEûTOû
BENIGNûFOODûINmATIONûFOLLOWINGûAûSLEWûOFû
liquidity measures to ease pressure on short-
term rates, although the local currency
continued to slide.
“In the past few weeks we have not
invested in bonds because we werecautious,” said Aneesh Srivastava, chief
INVESTMENTûOFlCERûATû)$")û&EDERALû,IFEû
Insurance. “Our requirement is long-
maturity paper. Currently, we are selective
in terms of the quality of paper we invest
in.”
While AAA rated issuers are coming back,
demand for longer tenor bonds remains
cool, even from frequent issuers such as LIC
Housing Finance and REC. Both had to scrap
their 10-year bond offerings after they did
not get the desired demand.INDONESIA
PLN TRIMS OFFSHORE PREMIUMPERUSAHAAN LISTRIK NEGARA on Thursday priced
AROUNDû53BNûOFûSENIORûBONDSûINûDOLLARSû
and euros across three 144A/Reg S tranches,
leaving little on the table despite weak
market conditions.
!û53MûLONGû
YEAR ûDUEû*ANUARYû
ûTRANCHEûWASûPRICEDûATûAûYIELDûOFû û
FROMûINITIALûGUIDANCEûOFûûAREAûANDûAû
53MûLONGû
YEAR ûDUEû*ANUARYû û
TRANCHEûWASûPRICEDûATû ûFROMûûAREA
A lead estimated the new issue concession
to be around 7bp for the 2029s and 9bp for
the 2049s. The concession had looked more
LIKEûBPûBASEDûONûTHEûPRICEûREFERENCESûATû
the start of the day, with PLN’s 2028s quoted
ATûûANDûITSûSûATû ûBUTû
Indonesian bond yields widened in the
course of a weak trading session.
4HATûWASûFARûLESSûTHANûTHEûBPnBPû
premium PLN had to pay in its last visit to
the offshore market in May this year, when
it sold US$2bn of bonds across 10 and 30-
year tenors during a period of Treasury
volatility.
!ûõMû53M ûSEVEN
YEARûBONDû
TRANCHEûWASûPRICEDûATûMID
SWAPSûPLUSûBP û
FROMûINITIALûPRICEûTHOUGHTSûOFûBPûAREA
The Indonesian state-owned power utility
attracted total orders of more than US$990m
from 87 accounts for the 2029s and
53BNûFROMûûACCOUNTSûFORûTHEûS
53ûINVESTORSûTOOKûûOFûTHEûSû ûWHILEû
!SIAûTOOKûûANDû%UROPEû
Half of the 2049s also went to the US, with
%UROPEûANDû!SIAûTAKINGûûEACH
By investor type, fund managers booked
ûOFûTHEûS ûINSURERSûANDûPENSIONû
FUNDSû ûPUBLIC
SECTORûINVESTORSû û
BANKSûûANDûPRIVATEûBANKSû
&UNDûMANAGERSûBOUGHTûûOFûTHEûS û
insurers, pension funds and public-sector
INVESTORSûBOOKEDûAûCOMBINEDû ûANDû
BANKSûANDûPRIVATEûBANKSûTOOKû
Deal statistics for the euro tranche have
yet to be released.
The bonds have expected ratings of Baa2/
BBB–/BBB, in line with the issuer. In August,