COUNTRY REPORT CHINA› CHINA FORTUNE LAND TAPS
Property developer CHINA FORTUNE LAND
DEVELOPMENT tapped its US$650m 6.5% 2020
bonds for a further US$70m, bringing the
total outstanding to US$720m.
The reopening priced at 95.098. Proceeds
will be used for refinancing and general
corporate purposes.
CFLD (Cayman) Investment is the issuer
and the notes have a guarantee from China
Fortune Land. The notes are expected to
be rated BB+ by Fitch, in line with the
guarantor.
CMB International was sole bookrunner.
The original US$500m issue printed in
December last year and was then tapped for
US$150m a week later.
› CHINA PROPERTIES PLACES BONDS
CHINA PROPERTIES GROUP has sold US$226m
of three-year senior unsecured Reg S
bonds at par to yield 15%, the highest
yield of the year for an Asian dollar
bond.
Investors can put the bonds at par after
two years.
Cheergain Group is the issuer, and Wong
Sai Chung, the managing director and
controlling shareholder of China Properties,
has given a personal guarantee for the
interest and principal payments.
If there is a change of control or the
company is delisted, investors can redeem
the bonds at 101% of face value.
Proceeds from the placement will be
used to refinance debt.
In a separate disclosure, ASIASEC
PROPERTIES said it had subscribed to
US$12.5m of the China Properties
bonds.
“The directors consider that the
subscription provides the group with an
opportunity to balance and diversify its
investment portfolio, as well as to generate
a stable return to the group,” said the
company in a filing to the Hong Kong
exchange.
› EVERBRIGHT SUN HUNG KAI HIRES BANKS
EVERBRIGHT SUN HUNG KAI, rated Baa3 by
Moody’s, has hired banks for a proposed
offering of three-year US dollar senior
unsecured notes under its US$1bn medium-
term note programme.
EBS International, China Everbright Bank
Hong Kong branch, ICBC International
and Standard Chartered Bank are joint
global coordinators. They are also joint
bookrunners and joint lead managers
with AMTD, BOC International, BNP Paribas,
CEB International, Cinda International,
China Minsheng Banking Corp Hong Kong
branch, DBS Bank, HSBC, Shanghai Pudong
Development Bank Hong Kong branch, SPDB
International and OCBC Bank.
Everbright Sun Hung Kai, which is 70%-
owned by Everbright Securities, started
meeting investors in Hong Kong and
Singapore on October 11.
The proposed Reg S notes will be issued
by Everbright SHK (BVI) and guaranteed by
Everbright Sun Hung Kai.
The notes have an expected Baa3 rating
from Moody’s.› MAOYE TAPS DOLLAR BONDSMAOYE INTERNATIONAL HOLDINGS, rated B3/B–
(Moody’s/S&P), last Tuesday raised
US$100m from a reopening of theUS$150m 13.25% senior notes due 2020
that it priced last month.
The price for the tap was 100, in line
with final guidance.
The bonds were quoted at 99.75/100.25
ahead of the announcement of the
reopening.
Guotai Junan International and UBS
were joint global coordinators on the
tap as well as joint lead managers and
joint bookrunners with AMTD and CMB
International.
The Hong Kong-listed Chinese
department store operator plans to use the
proceeds from the reopening for general
working capital and debt repayment.
The Reg S unrated two-year non-put non-
call one notes will mature on September 27Zijin attracts diverse investors
Bonds Issue is Chinese metals firm’s first US dollar bond on a standalone basisChinese metals producer ZIJIN MINING GROUP,
rated Baa3/BBB–/BBB–, last Wednesday
priced US$350m senior unsecured notes in its
first US dollar bond offering on a standalone
basis.
The three-year Reg S bonds were priced at
par to yield 5.282%, or Treasuries plus 230bp,
30bp tighter than initial 260bp guidance.
The issue size fell short of the up to
US$500m the company had indicated
earlier.
The deal drew over US$730m of final
orders from 39 accounts, far lower than peak
orders of over US$1.5bn, including interest
from joint lead managers, at the time of the
release of final guidance. Market volatility and
a sharp tightening of the price guidance were
blamed for the shrinkage.
“The issuer has been well supported by
banks. It was concerned about the pricing
related to the issue size and it is not keen to
use up the offshore debt quota,” a banker on
the deal said.
The banker said the issue has provided
an alternative for investors, which helped to
attract a more diversified investor base than
other new Chinese issues.
“Recent Chinese new issues were
concentrated on FIs (financial institutions),
LGFVs (local government financing vehicles)
and SOEs (state-owned enterprises), but Zijin
is different, it is a leading mining firm with
little support from the government. It has a
strong standalone credit rating based on its
own solid finances and business, rather than
any uplift due to the likelihood of government
support,” he said.
The newly priced notes traded slightlyweak in the aftermarket and were quoted
at 99.85/100.00 on Thursday afternoon,
according to a trader.
Of the notes, 97% went to Asia and 3% to
Europe. By investor type, 69% went to banks,
21% to fund managers, asset managers and
hedge funds, 6% to insurance, and 4% to
private banks.
The bonds will be issued by wholly owned
subsidiary Zijin International Capital, with
the Hong Kong and Shanghai-listed parent
company as guarantor.
The senior bonds have expected ratings of
Baa3/BBB– (Moody’s/S&P).
Proceeds will be used for overseas business
development and the repayment of offshore
debt.
Bank of China and Standard Chartered
Bank were joint global coordinators. The two
were also joint bookrunners and joint lead
managers with China Citic Bank International,
China Construction Bank, China Minsheng
Banking Corp Hong Kong branch, CMB
International, Essence International, ICBC
(Asia) and Industrial Bank Hong Kong branch.
OCBC Bank was on the list as joint
bookrunner at the time of marketing but was
dropped when the deal was priced.
Zijin in 2011 issued US$480m 4.25% five-
year US dollar bonds with an irrevocable
standby letter of credit from Bank of China,
Paris branch. The bonds matured in June
2016.
The company was 25.88%-owned and
controlled by Minxi Xinghang State-owned
Asset Investment, a local SOE in Shanghang
county, Fujian province, as of end-2017.
CAROL CHAN