ASIA-PACIFIC
CHINA
SHANDONG GUOHUI PRINTS CHUNKY
363-DAY ISSUE
SHANDONG GUOHUI INVESTMENT ûTHEûPROVINCIALû
state-owned investment company of China’s
EASTERNû3HANDONGûPROVINCE ûLASTû7EDNESDAYû
priced US$600m of 363-day notes at par to
YIELDû ûINûLINEûWITHûPRICEûGUIDANCE
The deal was sizeable for an unrated Reg S
ISSUE ûESPECIALLYûGIVENûTHEûWEAKûMARKETû4HEû
INITIALûFUNDRAISINGûTARGETûWASû53M ûBUTû
solid demand allowed the issuer to raise
MORE ûASûNOTESûOFûLESSûTHANûONEûYEARûAREûNOTû
SUBJECTûTOû#HINESEûREGULATORYûQUOTAS ûAû
banker on the deal said.
“The short tenor and high yield attracted
investors. The recent issues of new dollar
bonds of other provincial entities offered
AROUNDûûFORûTHREEûYEARS ûBUTûTHISûONEûGAVEû
vûANOTHERûBANKERûONûTHEûDEALûSAID
)NVESTORSûWEREûMOSTLYûONSHOREûBANKS ûBUTû
SOMEûINTERNATIONALûFUNDSûALSOûPARTICIPATED û
according to the banker.
The latest issue was Shandong Guohui’s
second offshore bond sale after it priced
US$188m of 363-day notes at 5.7% in
September.
The banker said Shandong Guohui wants
to expand its presence in offshore capital
MARKETS ûPARTLYûASûAûWAYûTOûPROMOTEû
investment in the province.
The company is in the process of getting
RATINGSûFROMûGLOBALûAGENCIES ûHEûADDED
%STABLISHEDûINû*ANUARYû û3HANDONGû
Guohui plays a strategic role in the reform
and restructuring of SOEs in Shandong
province. It owns equity in SOEs involved in
TRANSPORTATION ûENGINEERING ûANDûlNANCIALû
and operating leasing.
h)TSûDElNITELYûANû)'û;INVESTMENT
GRADE=û
name but it’s not clear just what ratings it
could get. It holds stakes in many big SOEs
in the province like Shandong Gold Mining
ANDû3HANDONGû)RONûANDû3TEELû'ROUP ûSOû
CREDITûFUNDAMENTALSûAREûNOTûAûCONCERN vûTHEû
lRSTûBANKERûONûTHEûDEALûSAID
.OûBOOKûSTATISTICSûWEREûPROVIDEDû"UTû
ORDERSûWEREûSAIDûTOûBEûOVERû53M û
INCLUDINGûINTERESTûFROMûLEADS ûATûTHEûTIMEûOFû
RELEASINGûlNALûGUIDANCE
3TILL ûITûISûMOREûCOSTLYûFORû3HANDONGû
Guohui to issue bonds offshore than
ONSHOREû&ORûCOMPARISON ûITûPRIVATELYûPLACEDû
Rmb3bn (US$430m) of three-year corporate
bonds at 5.68% on the Shanghai Stock
Exchange on October 26.
The newly issued 363-day notes were not
actively traded and were quoted at around
REOFFERûONû4HURSDAYûMORNING ûACCORDINGûTOûAû
trader.
/FFSHOREû"6)ûSUBSIDIARYû'UOHUIû
International is the issuer and Shandong
Guohui is the guarantor.
Central Wealth Securities Investment and Bank
of ChinaûWEREûJOINTûGLOBALûCOORDINATORS ûJOINTû
lead managers and joint bookrunners on its
latest transaction.
Zhongtai International ûCCB International û
Haitong International ûHuatai Financial Holdings
(Hong Kong) ûIndustrial Bank Hong Kong branch û
China Citic Bank International ûPing An of China
Securities (Hong Kong) and China Everbright Bank
Hong Kong branch were joint bookrunners.
Huaxia Bank Shanghai Pilot Free Trade Zone
branch was lead manager in relation to PRC
matters.OCEANWIDE SELLS US$215m BONDSChinese property developer OCEANWIDE
HOLDINGS ûRATEDû### ûNEGATIVE "nûSTABLE û
30&ITCH ûLASTû-ONDAYûSOLDû53MûOFû
three-year non-put 1.5 US dollar bonds to
RElNANCEûOFFSHOREûDEBT
4HEû2EGû3ûBONDSûWEREûSOLDûATûPAR ûWHICHûGAVEû
AûûYIELDûTOûMATURITY ûINûLINEûWITHûPRICEû
guidance. The bonds are puttable at 104.05 on
!PRILûû ûWITHûAûYIELDûTOûPUTûOFû û
which was higher than the 14.053% yield to put
offered by another Chinese developer JIAYUAN
INTERNATIONAL GROUP’s 12.00% US$225m two-
year non-put one bonds priced on October 12.
*IAYUANûISûRATEDû"ûANDûITSûNOTESû"ûBYû
Moody’s.
A similar structure with much higher
yields to put than yield to maturity have
been offered by Chinese high-yield issuers
to lure investors recently.
)NûADDITIONûTOû/CEANWIDEûANDû*IAYUAN û
unrated HAINAN AIRLINES HOLDING on October
24 priced US$100m of 12.00% two-year non-
put one bonds with a yield to put of 14.216%.
Haitong International was the sole global
COORDINATOR ûSOLEûBOOKRUNNERûANDûSOLEûLEADûmanager on Oceanwide’s transaction.
Oceanwide Securities was co-manager.
Admiralty Harbour ûGuotai Junan International
and Oceanwide Securities had been listed as
JOINTûGLOBALûCOORDINATORS ûJOINTûBOOKRUNNERSû
and joint lead managers at the beginning of
MARKETING ûBUTûNOTûWHENûTHEûDEALûWASûPRICED
Oceanwide Holdings International
Development III is the issuer and the
Shenzhen-listed parent company is the PRC
parent guarantor. China Oceanwide Group
will be Hong Kong parent guarantor and
Oceanwide Real Estate International the
subsidiary guarantor.
4HEûBONDSûHAVEûANûEXPECTEDûRATINGûOFû"nû
from Fitch.
Rating agencies in late May downgraded
Oceanwide’s ratings and its bonds on its
HIGHûLEVERAGEûANDûSIGNIlCANTûUNCERTAINTIESû
OVERûRElNANCINGûITSûLARGEûOUTSTANDINGûDEBTû
maturities.
Fitch on May 28 downgraded Oceanwide’s
RATINGûANDûITSûSENIORûBONDSûRATINGSûTOû"nû
FROMû"û30ûONû-AYûûLOWEREDû/CEANWIDESû
RATINGûTOû###ûFROMû"nûANDûITSûSENIORûBONDSû
TOû###nûFROMû### BLUESTAR PRINTS US$300m PERPCHINA NATIONAL BLUESTAR (GROUP) ûRATEDû"AA
"""!n ûHASûPRICEDû53MûOFûSENIORû
perpetual non-call securities after drawing
53MûOFûlNALûORDERSûFROMûûACCOUNTS
The 6.250% Reg S notes were priced at
ûTOûYIELDû ûINSIDEûINITIALûû
area guidance.
)FûNOTûCALLED ûTHEûDISTRIBUTIONûRATEûOFûTHEû
notes would be reset to the initial spread of
BPûOVERûTHREE
YEARû4REASURIES ûPLUSûAû
400bp step-up.
/FûTHEûNOTES ûûWENTûTOû!SIAûANDûûTOû
%UROPEû"YûINVESTORûTYPE ûûWENTûTOûFUNDû
MANAGERSûANDûASSETûMANAGERS ûûTOûBANKS û
8% to private banks and 4% to insurance
companies.
4HEûCHEMICALûPRODUCER ûWHICHûISû
owned by state-owned China National
#HEMICALû#ORPû#HEM#HINA ûPLANSûTOûUSEû
THEûPROCEEDSûFORûDEBTûRElNANCING ûWORKINGû
capital and general corporate purposes.
"LUESTARû&INANCEû(OLDINGSûISûTHEûISSUERû
ANDû#HINAû.ATIONALû"LUESTARûISûTHEû
guarantor.
4HEûNOTESûHAVEûEXPECTEDûRATINGSûOFû"AA
""" û-OODYS&ITCH
BNP Paribas ûBOC International ûCredit
Agricole and Morgan Stanley were joint global
COORDINATORS ûJOINTûLEADûMANAGERSûANDûJOINTû
bookrunners.
Moody’s on October 15 changed China
.ATIONALû"LUESTARSû"AAûRATINGûOUTLOOKûTOû
STABLEûFROMûNEGATIVE ûCITINGûEXPECTATIONSû
THATûTHEûCOMPANYSûIMPROVEDûCREDITûPROlLEû
will be sustained over the next 12–18
months.ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Asia-Pacific
Managing No of Total Share
bank or group issues US$(m) (%)
1 HSBC 195 20,237.80 8.1
2 Citigroup 109 14,589.01 5.8
3 Bank of China 134 11,833.26 4.7
4 Standard Chartered 116 10,946.65 4.4
5 Morgan Stanley 59 9,816.24 3.9
6 BNP Paribas 83 9,482.82 3.8
7 BAML 55 8,067.11 3.2
8 Goldman Sachs 44 7,635.51 3.0
9 Credit Suisse 53 7,206.32 2.9
10 UBS 78 7,040.65 2.8
Total 564 251,209.03
Excluding equity-related debt.
Source: Refinitiv SDC code: L4