- The issuer can call the bonds at 101%
at any time from September 27 2019 while
investors have a put option at 100% on
September 27 2019.
› JIAYUAN INTL MARKETS US$ 2NP1
JIAYUAN INTERNATIONAL GROUP, rated B2 by
Moody’s, was marketing two-year non-put
one bonds at final price guidance of a 12%
yield to maturity last Friday afternoon.
The Chinese property developer is selling
the senior notes with a coupon rate that
has been set at 12%.
The Reg S notes originally had an
investor put option at par, but the price
was revised to 102.125. The notes are
puttable on October 22 2019 at a yield-to-
put of 14.053%.
Guotai Junan International is sole global
coordinator, and also joint bookrunner
and joint lead manager with AMTD, CEB
International, Haitong International and
Southwest Securities International.
Jiayuan issued US$100m in April from
a tap of its US$250m 8.125% 364-day US
dollar bonds due 2019.
› CHINA SELLS DOLLAR, DIM SUM BONDS
The PEOPLE’S REPUBLIC OF CHINA, rated A1/A+/A+,
acting through the Ministry of Finance, last
week sold bonds denominated in US dollars
and offshore renminbi to international
investors.
The MoF on Wednesday sold Rmb5bn
(US$723m) of Dim Sum bonds in a
reopening tender through the Hong
Kong Monetary Authority’s Central
Moneymarkets Unit platform.
It sold an additional Rmb3.3bn of
the 3.65% bonds due July 9 2020 and an
additional Rmb1.7bn of the 3.8% bonds due
July 9 2023, bringing the totals outstanding
to Rmb6.6bn and Rmb3.4bn, respectively.
Both taps were priced at par.
Bank of Communications is the sole issuing
and lodging agent.
Then, on Thursday, the MoF issued
US$3bn Reg S unrated sovereign bond
in three tranches, comprising US$1.5bn
3.25% five-year, US$1bn 3.5% 10-year and
US$500m 4.0% 30-year notes. Final orders
reached US$13.2bn, or 4.4 times the issue
size.
The five-year tranche attracted final
orders of US$6.3bn from 115 accounts. Of
the notes, 77% went to Asia, 21% to Europe,
and 2% to US offshore. By investor type,
24% went to fund managers, 49% to banks,
25% to public sector, and 2% to insurance,
provident funds and private banks.
Final orders for the 10-year tranche
stood at US$4.9bn from 108 accounts.
Of the notes, 67% went to Asia, 29% to
Europe, and 4% to US offshore. By investor
type, 41% went to fund managers, 48% to
banks, 7% to public sector, 3% to insurance
and provident funds, and 1% to private
banks.
For the 30-year tranche, final orders were
US$2bn from 111 accounts. Of the notes,
59% went to Asia, 35% to Europe, and 6%
to US offshore. By investor type, 65% went
to fund managers, 25% to banks, 6% to
insurance and provident funds, and 4% to
private banks and others.
Bank of China, Bank of Communications,
China Construction Bank, China International
Capital Corporation, Credit Agricole, CTBC
Bank, Deutsche Bank, Goldman Sachs, HSBC,
JP Morgan, Mizuho Securities and Standard
Chartered Bank were joint lead managers
and joint bookrunners.
Although China’s US dollar bonds are
unrated, Pengyuan International has
assigned unsolicited ratings of AA to the
bonds, the same the Chinese rating agency
assigns to the long-term foreign currency
sovereign issuer credit rating of China
based on its global scale.› BOC PRINTS RMB40BN T2BANK OF CHINA has raised Rmb40bn from
an offering of onshore Tier two notes in
China’s interbank bond market to replenish
capital.
The 10-year non-call five notes were
priced at par to yield 4.84%, or 85bp
over the yield of China Development
Bank’s five-year notes, which was 3.99%,
according to a filing on Chinamoney.
com. The indicative price range was 60bp-
120bp.
The bonds were also available to offshore
investors via the Bond Connect scheme.
Both the issuer and the notes are rated
AAA by Golden Credit Rating International.
BOC International (China) is lead
underwriter and bookrunner on the
offering with Citic Securities, China Securities
and China Merchants Securities as joint lead
underwriters.
The Chinese lender last month printed
Rmb40bn 10-year non-call five Tier two
notes at par to yield 4.86%.› CHINA POWER PLANS RMB2BN PANDAHong Kong-incorporated CHINA POWER
INTERNATIONAL DEVELOPMENT plans to issue
Rmb2bn three-year Panda bonds in China’s
interbank bond market.
Books opened on October 11 with
settlement due on October 15, according to
filings on the Shanghai Clearing House.
The issuer and the bonds have ratings of
AAA from China Chengxin International
Credit Rating and China Lianhe Credit Rating.Proceeds will be mainly used for loan
repayments.
Bank of Communications is lead underwriter
and bookrunner on the offering and China
Minsheng Bank is joint lead underwriter.› HUAYE FACES DIFFICULTIES ON PAYMENTBEIJING HUAYE CAPITAL HOLDINGS has warned of
uncertainty over whether it can meet its
obligation to repay Rmb500m 7.20% 365-
day notes due October 13, according to a
filing on Chinamoney.com.
The Shanghai-listed company, formerly
Beijing Homyear Real Estate, said it does
not have the money prepared to repay the
Rmb500m principal as well as a coupon
payment of Rmb36m because it was unable
to collect some account receivables as
scheduled.
As October 13 is not a working day, the
due date of the notes will be deferred to
October 15, according to the statement.› R&F GETS NOD FOR RMB13BN NOTESGUANGZHOU R&F PROPERTIES has received
approval from the China Securities
Regulatory Commission to issue up to
Rmb13bn of corporate bonds via public
offerings.
The corporate bonds will be issued in
tranches within 24 months of the approval
date, according to a stock exchange filing.
The Hong Kong-listed Chinese real estate
company is an active issuer in both the
onshore and offshore bond market.› TRAFIGURA TAPS PANDA BONDS AGAINCommodities trader TRAFIGURA GROUP has
raised Rmb700m from an offering of three-
year Panda bonds in China’s interbank
market through a private placement.
The issue was the company’s third Panda
bond issuance since its debut issue in April,
it said in a press release last Wednesday.
Trafigura did not disclose the yield of the
three-year bonds, but according to a market
source the bonds were priced at a yield of 6.2%.
The issuer is rated AAA/AAA (China
Chengxin/China Lianhe).
The company said the issue has attracted
significant interest from domestic Chinese
investors, including commercial banks,
asset managers, insurance companies and
securities firms.
Trafigura, headquartered in Singapore,
has registered a Rmb2.35bn Panda bond
programme with the National Association
of Financial Market Institutional
Investors.
The company in April placed debut
Rmb500m three-year Panda notes with
a yield of 6.50% and then issued another