global coordinators, as well as joint lead
managers and joint bookrunners with Silk
Road International and ICBC Asia.
The Chinese local government financial
vehicle in Taizhou, Zhejiang province,
started to meet investors in Singapore and
Hong Kong on Friday.
The proposed Reg S notes have an
expected BBB– rating from Fitch.
› XIANGJIANG GROUP EYES BOND ISSUE
HUNAN XIANGJIANG NEW AREA DEVELOPMENT GROUP,
rated Baa3/BBB (Moody’s/Fitch), has hired
three banks for a proposed offering of US
dollar senior bonds.
Standard Chartered Bank and CEB
International are joint global coordinators,
as well as joint bookrunners and joint
lead managers with Industrial Bank Hong
Kong branch.
The company, a local government
financial vehicle of Changsha municipal
government, has started to meet investors
in Singapore and Hong Kong on Friday.
The proposed Reg S bonds have expected
ratings of Baa3/BBB (Moody’s/Fitch), in line
with the issuer.
The issuer’s main mandate is to promote
the development of the Xiangjiang New
Area of Changsha city in Hunan province
through primary land development,
municipal road and infrastructure
construction, and property management
and services.
› XINJIANG ZHONGTAI MEETS INVESTORS
Chemical producer XINJIANG ZHONGTAI GROUP is
set to hold fixed income investor meetings
in Hong Kong and Singapore this week via
CICC, according to a market source.
The company will meet investors in
Hong Kong on October 31 and November 1
and in Singapore on November 2, according
to the source.
The company is a state-owned company
of the Xinjiang Uyghur Autonomous Region
provincial government.
› SZ INV BOND TO BACK A-SHARE FIRMS
SHENZHEN INVESTMENT HOLDINGS is set to issue
Rmb1bn of bonds to provide liquidity to the
A-shares of private companies, and hence
reduce the risks related to pledged shares,
the company said in a stock exchange
statement.
Proceeds from the proposed issue will
be used to set up an equity investment
fund. The fund will provide liquidity to
Shenzhen-based listed private companies
that are operating normally but face
temporary liquidity difficulties due
to shares pledged by their controlling
shareholders as collateral for loans.
The planned Rmb1bn bond issuance by
the wholly state-owned investment holding
company of the Shenzhen municipal
government is part of China’s recent
initiatives to support private companies as
economic growth slows.
Books for the five-year non-call three
bonds has been opened on Friday with
an indicative range of 3.60%–4.60%. Final
pricing will be announced on October 29.
Shenzhen Investment Holdings will
also sell Rmb2bn three-year bonds at the
same indicative price range. Proceeds
for this tranche will be used for debt
repayment.
Both the issuer and the notes are rated
AAA by China Chengxin. The bonds will be
listed on the Shenzhen Stock Exchange.
Guosen Securities is lead underwriter on
the offering and China Galaxy Securities is
joint lead underwriter.
Established in 2004, Shenzhen
Investment Holdings is mainly involved in
tech finance, science and technology parks,
and industrial investments.
The company is rated A2/A/A+ by the
three global rating agencies. It issued
US$700m offshore bonds in two tranches
last month.› CHINA GAS SELLS RMB2BN PANDA BONDSBermuda-incorporated CHINA GAS HOLDINGS has
raised Rmb2bn from an offering of Panda
bonds in China’s interbank bond market,
according to a stock exchange filing late
Thursday.
The issue size was at the high end of
the indicative range of Rmb1bn–Rmb2bn
given by the Hong Kong-listed company on
October 18.
The five-year non-put three notes were
priced at par to yield 4.38%.
The issuer and the bonds are rated AAA
by China Chengxin and Lianhe.
Proceeds will be used for debt repayment.
Citic Securities was lead underwriter and
bookrunner on the offering. ICBC was joint
lead underwriter.
The issuer is primarily engaged in the
construction and operation of city gas
pipelines in the PRC.› SINOPEC PRINTS DUAL-CURRENCY BONDSCHINA PETROCHEMICAL CORPORATION, known
as Sinopec Group, priced US$297m-
equivalent dual-currency Reg S senior notes
denominated in offshore renminbi and
Hong Kong dollars.
Through SINOPEC CENTURY BRIGHT CAPITAL
INVESTMENT, rated A2/A (Moody’s/S&P), the
Chinese state-owned oil company sold
Rmb1bn three-year Dim Sum bonds at parto yield 4.50%, 20bp tighter than initial
4.70% area guidance.
It also sold HK$1.2bn (US$153m) two-
year Hong Kong dollar bonds at par to yield
3.15%, the tight end of final guidance of
3.15%–3.20%, and 35bp tighter than initial
3.50% area guidance.
The bonds will be issued off a US$3bn
medium-term note programme and
guaranteed by Sinopec Group. The notes
have expected ratings of A1/A+ (Moody’s/
S&P), in line with the guarantor.
Proceeds will be used for general
corporate purposes.
The Dim Sum tranche drew final orders
of over Rmb1.3bn from more than 40
accounts. Of the notes, 92% went to Asia
and 8% to Europe. By investor type, 45%
went to banks, 52% went to fund managers
and insurance, and 3% to private banks.
The Hong Kong dollar tranche attracted
final orders of over HK$2.9bn from 35
accounts. Of the notes, 97% went to Asia
and 3% to Europe. By investor type, 34%
went to banks, 63% went to fund managers
and insurance, and 3% to private banks.
DBS Bank and HSBC were joint global
coordinators, joint bookrunners and joint
lead managers.SYNDICATED LOANS
› ADVENT SEEKS FUNDS FOR MATTRESSUS private equity firm Advent International
is seeking a US$330m five-year loan
that will fund its leveraged buyout of a
premium mattress maker, distributor and
exclusive licensee of US mattress brand
Serta in China.
Cathay United Bank, CTBC Bank and
Taipei Fubon Commercial Bank are the
mandated lead arrangers, bookrunners
and underwriters of the transaction, which
offers an interest margin of 225bp over
Libor.
Banks joining as MLAs with
commitments of US$35m or more are
offered a participation fee of 105bp, while
lead arrangers with US$20m–$34m receive
a 75bp fee. The loan represents a leverage
multiple of around 4x–5x.
AL DREAM 3 (CAYMAN) is the borrower on the
loan.
In July, Advent entered into a share
purchase agreement to acquire a 100%
equity interest in “Sky”, which is the
exclusive licensee of mattress brand Serta
in China, for around US$380m.
The buyout will further expand Advent’s
footprint in the premium mattress market
in China following the acquisition of a
peer in October 2016. Advent acquired a
majority interest in King Koil Shanghai