COUNTRY REPORT CHINAperps issued in the China’s interbank
bond market, reversing a September 21
announcement. It faulted the uncertainty
facing the airline industry amid
intensifying global trade tensions, China’s
economic slowdown, the oil prices surge
and the US dollar’s appreciation.
› SICHUAN TRANSPORTATION HIRES
SICHUAN TRANSPORTATION INVESTMENT GROUP
CORPORATION, rated A– (stable) by Fitch, has
mandated Standard Chartered Bank, China
International Capital Corporation, Citigroup
and Industrial Bank Hong Kong branch as joint
global coordinators for a US dollar bond.
The JGCs are also joint bookrunners and
joint lead managers with BNP Paribas, CMB
International, CMBC Capital, ICBC (Asia) and
Shanghai Pudong Development Bank Hong Kong
branch.
Fixed income investor meetings in
Hong Kong, Singapore and London began
last week for the proposed Reg S senior
unsecured notes, subject to market
conditions.
The bonds will be issued by Sichuan
Communications Overseas Development,
a wholly owned offshore subsidiary of
Sichuan Transportation, which will also
guarantee the notes.
The bonds are expected to be rated A– by
Fitch.
› AVIC INTL LEASING MEETS INVESTORS
AVIC INTERNATIONAL LEASING, rated A– by Fitch,
has hired banks for a proposed offering of
US dollar senior unsecured bonds.
Bank of China, Barclays, CICC, DBS Bank
and Haitong International are joint global
coordinators as well as joint bookrunners
and joint lead managers with Agricultural
Bank of China Hong Kong branch, China Citic
Bank International, First Abu Dhabi Bank, ICBC
Asia and Mizuho Securities.
The Chinese leasing firm has started to
meet investors in Hong Kong, Singapore
and London from October 24.
The proposed Reg S notes, to be
issued under a US$1bn medium-term
note programme, will be issued by
wholly owned subsidiary Soar Wise and
guaranteed by AVIC International Leasing.
The notes have an expected A– rating
from Fitch, in line with the guarantor.
› BLUESTAR EYES US DOLLAR PERPS
CHINA NATIONAL BLUESTAR (GROUP), rated Baa2/
BBB/A–, has hired four banks for a proposed
offering of US dollar-denominated senior
guaranteed perpetual securities.
BNP Paribas, BOC International, Credit
Agricole and Morgan Stanley are joint global
coordinators, joint lead managers and joint
bookrunners on the Reg S issue.
The chemical producer, which is 63.6%
owned by state-owned China National
Chemical Corp (ChemChina), has started
to meet investors in Hong Kong, Singapore
and London, from October 25.
Bluestar Finance Holdings is the issuer
of the proposed notes and China National
Bluestar is the guarantor.
The notes have expected ratings of Baa2/
BBB+ (Moody’s/Fitch).
Moody’s on October 15 changed China
National Bluestar’s Baa2 rating outlook to
stable from negative, citing expectations
that the company’s improved credit profile
will be sustained over the next 12-18
months.› GANSU HIGHWAY TAPS BONDSGANSU PROVINCIAL HIGHWAY AVIATION TOURISM
INVESTMENT GROUP tapped its US$350m
6.25% senior unsecured notes due August
2 2021 for US$150m, bringing the total
outstanding to US$500m.
The reopening priced at a cash price of
100.413, implying a yield of around 6.08%.
This was at the tight end of final guidance
of 100.363–100.413, which translated to
a yield of around 6.08%–6.10%. Marketing
began at 100.238 area, translating to a yield
of around 6.15%.
Orders were over US$250m when final
guidance was announced.
The Reg S bonds are rated BBB–/BBB (S&P/
Fitch), in line with the issuer.
Bank of China, Barclays and Citigroup
were joint global coordinators. They were
also joint bookrunners with Shanghai
Pudong Development Bank Hong Kong branch,
Industrial Bank Hong Kong branch, Guotai Junan
International and Orient Securities (Hong Kong).
Industrial Bank was added to the
syndicate midway through bookbuilding.
Gansu Highway is the only enterprise
authorised by the provincial government
of Gansu, a north-central Chinese province,
to manage and operate transportation
infrastructure projects there.
The original US$350m issue priced in
July at 99.328 to yield 6.5%, in the first
benchmark-sized US dollar bond from
a local government financing vehicle in
months.› JJRCB NEEDS MORE TIME FOR AT1 ISSUEJILIN JIUTAI RURAL COMMERCIAL BANK said it needs
more time to prepare an up to Rmb5bn
Additional Tier 1 securities offering in the
offshore market.
The Hong Kong-listed Chinese lender will
seek shareholder approval to extend the
validity period of the authorisation for theissuance plan by 12 months, according to a
stock exchange filing last Monday.
The bank first disclosed the plan to
issue offshore preference shares in August
2017 and obtained the authorisation of
shareholders on November 8 2017.
It did not disclose in which currency the
AT1s will be denominated.› SPIC PRINTS US$800M DUAL-TRANCHERSTATE POWER INVESTMENT CORP, rated A2/A–/A,
one of the five largest state-owned
electricity producers in China, has drawn
final orders of US$1.5bn for a US$800m
two-tranche bond issue.
A US$300m 4.25% three-year tranche
was priced at Treasuries plus 135bp and
a US$500m 4.65% five-year tranche was
priced at Treasuries plus 170bp, well inside
initial guidance of 165bp area and 190bp
area, respectively.
The three-year bonds drew final orders
of over US$493m from 48 accounts. Asia
Pacific took 88% of the notes and EMEA
12%. By investor type, 34% went to asset
managers, 30% to banks and insurance, 22%
to sovereign, and 14% to private banks and
others.
Final orders for the five-year tranche
were over US$1bn from 75 accounts. Asia
Pacific took 86% of the notes and EMEA
14%. By investor type, 65% went to asset
managers, 13% to banks and insurance, 7%
to sovereign, and 15% to private banks and
others.
The senior unsecured Reg S bonds will be
issued by SPIC Luxembourg Latin America
Renewable Energy Investment Company
and guaranteed by SPIC Luxembourg
Energy Investment Company, a wholly
owned subsidiary of the state-owned
parent.
The bonds, with an expected rating of
A– by Fitch, will also have the benefit of
a keepwell and equity interest purchase
undertakings to be provided by State Power
Investment Corp.
Proceeds will be used for debt
refinancing and general corporate
purposes.
JP Morgan, Bank of America Merrill Lynch,
BOC International and ICBC were joint global
coordinators as well as joint bookrunners
and joint lead managers with BoCom
International.› TAIZHOU INFRASTRUCTURE HIRES BANKSTAIZHOU INFRASTRUCTURE CONSTRUCTION INVESTMENT
GROUP, rated BBB– by Fitch, has hired banks
for a proposed offering of US dollar senior
unsecured notes.
Citigroup, Orient Securities (Hong Kong) and
Industrial Bank Hong Kong branch are joint