COUNTRY REPORT CHINA› YUZHOU SELLS ADDITIONAL BONDS
YUZHOU PROPERTIES, rated Ba3/BB–/BB–/BB
(Moody’s/S&P/Fitch/ Lianhe Global), has
reopened its 6.00% senior notes due October
25 2023 for a tap of US$400m, bringing the
total outstanding to US$650m.
The Hong Kong-listed Chinese real
estate company sold the additional bonds
at 93.872 to yield 7.70%, well inside initial
guidance of 8.20% area.
The deal drew final orders of over
US$3.3bn from 202 accounts. Asia took
81% of the bonds, Europe 18% and offshore
US 1%. By investor type, 81% went to asset
managers and fund managers, 10% to banks
and securities, 8% to private banks, and 1%
to corporates and insurers.
It will use the proceeds primarily for
debt refinancing, and also for business
development in China.
The seven-year non-call four notes were
originally issued in October 2016. The Reg S
notes are rated B1/BB– (Moody’s/Fitch).
BOC International, HSBC, JP Morgan
and Yuzhou Financial were joint global
coordinators as well as joint lead managers
and joint bookrunners with Barclays, Guotai
Junan International and Haitong International.
› BANK OF HANGZHOU PRINTS
BANK OF HANGZHOU has printed Rmb10bn
three-year financial bonds at 3.6%, in the
lower half of initial guidance at 3.2%–4.2%.
Proceeds will be used to replenish the
bank’s capital.
ICBC is the lead bookrunner and
lead underwriter. Citic Securities, Bank of
Communications and China Merchants Bank are
joint underwriters.
China Chengxin rates both the issuer and
the bonds AAA.
Bank of Hangzhou has outstanding debt
of Rmb157.8bn, according to Refinitiv data.› CHINA ORIENT AM GETS CBIRC NODCHINA ORIENT ASSET MANAGEMENT, one of
China’s big four bad-debt management
companies, has received approval from the
China Banking and Insurance Regulatory
Commission to issue up to Rmb30bn
financial bonds.
Proceeds will be used to trade non-
performing assets and debt-to-equity swaps
programmes.
The issuer has an expected rating of AAA
by China Chengxin.
On January 17, the CBIRC authorised
Great Wall Asset Management to issue up
to Rmb30bn bonds, with proceeds used for
trading of non-performing assets.› CR LAND EYES RMB1BN NOTESCHINA RESOURCES LAND plans to issue Rmb1bn
medium term notes in two tranches off of
a Rmb8bn quota it registered with financial
regulators.
The property developer will split the
bonds equally into three and five year
tranches.
Agricultural Bank of China is the lead
underwriter and lead bookrunner. ICBC is
joint underwriter.
Bookbuilding opened last Friday and the
settlement date is July 9.
The developer will use the proceeds to
repay bank loans and replenish capital at
its subsidiaries.
China Chengxin has assigned a AAA
rating to both the issuer and the bonds.› THREE GORGES FUNDS GREEN PROJECTSState-owned power company CHINA THREE
GORGES CORPORATION has printed Rmb3.5bn
five-year Green notes at 3.85%, within
guidance of 3.2%–4.2%.
China Construction Bank is the lead
underwriter and lead bookrunner. China
Minsheng Bank is the joint underwriter.
Proceeds will be used for hydropower
projects meeting the standards of qualified
Green bond projects of the National
Development and Reform Commission.
The issuer has expected AAA ratings
from China Chengxin.
Its outstanding debt totals Rmb189.7bn,
according to Refinitiv data.› XINJIANG LGFV PRINTS NOTESXINJIANG INVESTMENT DEVELOPMENT GROUP issued
Rmb500m of three-year notes at 4.85%
last Wednesday, within initial guidance of
4.2%–5.2%.The offering drew orders from six
qualified institutional investors.
The issuer is a local government
financing vehicle backed by the Xinjiang
Uygur Autonomous Region.
China Development Bank was the lead
underwriter and Industrial Bank was the
joint underwriter.
Proceeds will be used to replenish capital.
China Chengxin assigned AA+ ratings to
both the issuer and the bonds.SYNDICATED LOANS
› CTRIP.COM UPS LOAN AFTER BOOKING 14CTRIP.COM INTERNATIONAL has increased a
three-year term loan to US$2bn from
€600m-equivalent (then US$675m-
equivalent).
The loan was launched as a dual-currency
loan available in US dollars and euros.
During syndication, the Nasdaq-listed
borrower asked all banks to lend only US
dollars.
Mandated lead arrangers and
bookrunners Bank of Communications
Hong Kong branch, Bank of East Asia, China
Construction Bank (Asia), HSBC and Korea
Development Bank have brought in 14 banks,
including Bank of China that joined as an
MLAB.
The bullet financing pays a top-level
all-in pricing of 141.67bp based on an
interest margin of 135bp over Libor.
For full allocations, see http://www.ifrasia.com.› LEGEND SETS PRICING IN STONELEGEND FINANCIAL LEASING (SHANGHAI), a unit of
state-owned Guangzhou Finance Holdings
Group, has finalised the terms of a HK$1bn
(US$128m) three-year term loan.
According to the draft terms sent earlier
by mandated lead arranger and bookrunner
Luso International Banking, the deal was
initially a dual-currency bullet loan
available in both US and HK dollars.
The final terms now state that the deal is
solely a HK dollar amortising loan.
The interest margin of 220bp over Hibor
and the all-in pricing remain the same, but
all-ins are now based on an average life of
2.625 years and lower arrangement fees, for
which payment is tied to drawdown.
Banks are now invited to join as MLABs
with commitments of HK$200m or more
for a top-level all-in of 300bp based on
an arrangement fee of 210bp. MLAs with
tickets of HK$120m–$199m earn an all-in
pricing of 280bp through a fee of 158bp,
while lead arrangers committing HK$80m–
$119m receive an all-in of 260bp based on
a 105bp fee.Top bookrunners of China equity and
convertible offerings
1/1/19 – 30/6/19
Amount
Name Issues US$(m) %
1 Citic 31 7,703.5 11.6
2 Goldman Sachs 22 6,158.5 9.3
3 CICC 31 5,434.9 8.2
4 Morgan Stanley 30 3,848.3 5.8
5 China Sec 28 3,839.7 5.8
6 Bank of China 12 2,733.3 4.1
7 UBS 16 2,715.3 4.1
8 Haitong Sec 29 2,344.3 3.5
9 Citigroup 23 2,276.1 3.4
10 Credit Suisse 19 2,126.7 3.2
Total 278 66,592.8
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Refinitiv data SDC Code: C1m