The borrower mainly develops properties
in Xiamen and other cities in China’s Fujian
province. It also owns 60% of a project in
Sydney.
XIAMEN C&D, which is owned by the Xiamen
city government, holds around 61% of C&D
International Investment.
› SHAGANG LAUNCHES US$180M REFI
Steel producer JIANGSU SHAGANG GROUP has
launched a US$180m three-year bullet loan.
Standard Chartered (Hong Kong) is the sole
mandated lead arranger and bookrunner of
the deal, which pays an interest margin of
190bp over Libor.
The borrower is SHAGANG SOUTH-ASIA (HONG
KONG) TRADING, a Jiangsu Shagang wholly
owned subsidiary, while the parent
company is the guarantor.
MLAs committing US$25m–$39m will
earn a fee of 75bp for a top-level all-in
pricing of 215bp, while lead arrangers
committing US$15m–$24m will receive a
45bp fee to give an all-in pricing of 205bp.
The availability period is six months and
a commitment fee of 35bp applies in the
fifth and sixth months.
Financial covenants on the guarantor
require tangible net worth at a minimum
of Rmb50bn, the ratio of Ebitda to interest
expense at a minimum of four times and
a ratio of net debt to tangible net worth
of 0.85x. The borrower must maintain a
minimum unconsolidated tangible net
worth of US$300m.
A site visit to the guarantor’s factory in
Zhangjiagang will be held from October
23 to 24 and commitments are due by
November 16.
Funds are for refinancing and general
corporate purposes.
Jiangsu Shagang Group makes steel
plates and wires, hot and cold rolled coils,
and ribbed steel bars.
› NETEASE SIGNS US$500M MAIDEN LOAN
Nasdaq-listed technology company
NETEASE has signed a US$500m debut loan
following commitments from nine lenders
in general syndication.
Mandated lead arrangers, bookrunners
and underwriters ANZ, Citigroup, DBS and
HSBC pre-funded the three-year revolving
credit facility.
Five banks came in as MLAs.
Commitments were scaled back as the
transaction was oversubscribed.
The deal offered a top-level all-in pricing
of 113bp based on an interest margin of
95bp over Libor and a 54bp fee.
Signing was on October 3.
Funds are for working capital and
refinancing purposes.
The borrower is a China-based provider
of online games and internet media.EQUITY CAPITAL MARKETS
› SHENWAN HONGYUAN PLANS HK IPOChinese brokerage SHENWAN HONGYUAN is
planning to list in Hong Kong in 2019 to
raise about US$1bn–$1.5bn, according to
people with knowledge of the matter.
The Shenzhen-listed company has
invited banks to pitch for a role for the
proposed Hong Kong share sale, said the
people.
A-shares of Shenwan Hongyuan closed at
Rmb4.36 last Tuesday, giving the company
a market capitalisation of Rmb98.3bn
(US$14.2bn). The stock has dropped 18.6%
so far this year as of last Tuesday.
Shenwan Hongyuan was formed in 2015
when Shenyin Wanguo Securities merged
with Hongyuan Securities.
For the first nine months of 2018,
Shenwan Hongyuan ranked 17th in the
China equity and equity-linked league
table, according to Refinitiv data.
Shenwan Hongyuan raised Rmb12bn
from an A-share private placement in
January to fund Shenwan Hongyuan
Securities and for working capital for its
asset management and investment arms.
Its Hong Kong operation Shenwan
Hongyuan HK is listed on the Hong Kong
stock exchange.› TENCENT MUSIC EYES NOVEMBER IPOTENCENT MUSIC ENTERTAINMENT, China’s largest
music-streaming company, is looking to
open books in November for its US IPO,
according to people close to the deal.
The online music entertainment unit
of internet giant Tencent Holdings made
a public filing of the proposed IPO on
October 2. Pre-marketing started on
October 3.
Market conditions have been challenging
amid the escalating trade tension between
China and the US and higher US interest
rates. Asian stocks tumbled last Thursday
following a sell-off in the US market the
previous day, with the S&P 500 plunging
3.3% and the Nasdaq Composite Index
down 4.1%.
The Hong Kong-listed shares of Tencent
Holdings fell 6.8% on Thursday, bringing
their year-to-date fall to 34.2%.
Shares of Spotify Technology, seen as
having a comparable business to Tencent
Music, fell 7.5% to US$149.48 for a market
capitalisation of US$26.6bn last Wednesday.
Weak markets have dented investor
interest in IPOs. Shenzhen-listed GanfengLithium, which raised HK$3.3bn (US$421m)
from its Hong Kong listing, saw its Hong
Kong shares plummet 29% below the IPO
price on their trading debut last Thursday.
“It’s really hard to get an IPO done
now. If the issuers are not desperate for
funds, they should wait until the markets
stabilise,” said an ECM banker.
Tencent Music declined to comment on
the November listing timetable.
Tencent Music put an offering size of
US$1bn in the filing, but the amount is a
placeholder and may change.
Sources close to the deal told IFR earlier
the IPO would raise about US$2bn at a
valuation of about US$30bn.
The float will comprise both primary
and secondary shares, though the sellers
were not disclosed in the filing. Tencent
Holdings is Tencent Music’s biggest
stakeholder with 58.1%, followed by PAG
Capital (9.8%), Spotify (9.1%) and China
Investment Financial (7.2%).
Bank of America Merrill Lynch, Deutsche Bank,
Goldman Sachs, JP Morgan and Morgan Stanley
are leading the transaction.› SOYOUNG TO LAUNCH US IPOSOYOUNG TECHNOLOGY, a Chinese plastic
surgery social network, is planning a US
IPO in 2019 which could value the company
at US$2bn–$3bn, according to people close
to the deal.
The Beijing-based company is in
discussion with banks for the planned
share sale, said the people.
Founded in 2013, SoYoung allows
customers through its app and websites
to share and rate their cosmetic surgeries
and to select cosmetic surgeons to book
procedures.
The company said last month it has
raised US$70m from a private financing
round led by private equity firm Orchid
Asia Group. BOC International, Russia-
China Investment Fund and existing
investor Matrix Partners China also
participated in the fundraising.
SoYoung raised a total of about US$160m
in the past nine months, according to the
company statement on September 4.
The statement also said SoYoung
recorded 114 million visitors to its app and
websites in 2017.
SoYoung also counts Tencent Holdings,
CDH Investments, Trustbridge Partners and
Apax Partners among its shareholders.
SoYoung declined to comment when
contacted by IFR.› NIU OPENS BOOKS FOR US IPOChinese electric scooter maker NIU
TECHNOLOGIES has started bookbuilding for a