will receive a top-level upfront fee of 50bp,
while arrangers with less than A$30m
receive a 45bp fee.
Bank presentations were slated to be held
in Sydney on March 13 with more to follow
in Hong Kong on March 14 and in Taipei on
March 15. The deadline for commitments
is April 6.
Proceeds are for refinancing.
The latest borrowing is not part of a
facility programme Qantas set up last
September to allow it to switch the types
of aircraft used as collateral in the world’s
first aviation financing of this type.
Qantas raised an eight-year loan of
A$350m, the first under the programme. BNP
Paribas and NAB were MLABs on that loan,
which refinanced part of secured aircraft and
other amortising debt of A$442m, maturing
in the financial year to June 30 2018.
EQUITY CAPITAL MARKETS
› WESFARMERS TO SPIN OFF COLES
Australian retail giant Wesfarmers plans
to spin off its supermarket chain COLES
on Australia’s stock exchange, as the
conglomerate looks to focus on growth
opportunities in its remaining businesses.
If the demerger is implemented,
Wesfarmers shareholders will receive
shares in Coles proportional to their
existing Wesfarmers holdings, after taking
into account any shares Wesfarmers would
retain, according to the company.
Wesfarmers proposes to retain up to 20%
interest in Coles after the demerger,
In May 2017, Wesfarmers pulled its plans
to list office products retailer OFFICEWORKS
in a A$1.4bn (US$1.1bn) IPO amid difficult
market conditions.
UBS, JP Morgan, Macquarie, Morgans and
Gresham Partners were working on the IPO.
CHINA
DEBT CAPITAL MARKETS
› QINGDAO SOE RAISES US$500M
QINGDAO CHINA PROSPERITY STATE-OWNED CAPITAL
OPERATION (GROUP) raised US$500m from dual-
tranche US dollar bonds for working capital
and refinancing.
It priced US$300m 4.50% three-year bonds
at 99.510 to yield 4.677%, or Treasuries plus
225bp, and US$200m 5.00% five-year bonds
at 98.978 to yield 5.235%, or Treasuries plus
260bp. The final pricings were inside initial
guidance of 250bp area and 280bp area,
respectively.
Huasing International Holdings is the
issuer of the Reg S notes and the state-
owned parent is the guarantor.
The senior unsecured bonds have
expected ratings of BBB–/BBB (S&P/Fitch),
on par with the guarantor.
Final deal statistics were not available at
the time of writing, but orders were said
to be over US$3bn, including interest from
leads, at the release of final price guidance.
Standard Chartered, CNCB HK Capital
and Cinda International were joint global
coordinators, as well as joint lead managers
and joint bookrunners with Bank of China,
Bank of Communications, HSBC, Industrial Bank,
Hong Kong branch, Wing Lung Bank and
Zhongtai International.
The guarantor is a state-owned entity
that the Qingdao municipal government
has commissioned to promote industrial
development and SOE reform.› WENS TARGETS US DOLLAR TRADEGUANGDONG WENS FOODSTUFF GROUP plans to
raise up to US$500m from an offering of
Reg S US dollar notes for onshore purposes,
including debt repayment.
The Chinese chicken breeder said in a
filing to the Shenzhen Stock Exchange that
it had hired CICC for the proposed offering
at a maturity of no more than five years.
The plan has received clearance from the
company board and is now subject to the
approval of shareholders and regulators.› YANGO GROUP TRIES AGAINProperty developer YANGO GROUP was
on Friday marketing a 1.5-year senior
unsecured US dollar bond at initial price
guidance of 9.5% area.
The size was capped at US$250m. The
Reg S issue had not priced when IFR went
to press.
Yango Justice International was the issuer
and Shenzhen-listed parent Yango Group,
rated B2/B/B, the guarantor. The notes were
expected to score a B– S&P rating.
Haitong International was sole global
coordinator, as well as joint bookrunner
with CNCB HK Capital, China Citic Bank
International, Guotai Junan International and
Huatai Financial Holdings (Hong Kong).
Proceeds were earmarked to refinance debt.
In January, Yango pulled a US$250m
three-year bond offering that had been
marketed at initial guidance of 8.875% area.› XINYUAN PAYS UP FOR TWO-YEARProperty developer XINYUAN REAL ESTATE, rated
B/B (S&P/Fitch), priced on Monday a cappedUS$200m 9.875% two-year Reg S note at
par, in line with guidance.
The fixed-rate notes have initial ratings
of B–/B (S&P/Fitch).
Haitong International, UBS, Guotai Junan
International, Morgan Stanley (B&D) and
Bank of America Merrill Lynch were joint
global coordinators. They were also joint
bookrunners with Orient Securities (Hong
Kong).› GANGTAI SELLS AT YEAR'S TOP YIELDChinese conglomerate GANGTAI GROUP, rated
B (Fitch), priced US$100m of 1.5-year US
dollar bonds, offering the highest yield in
the Asian G3 sector this year.
The Reg S bonds, carrying a coupon
of 9.75%, were priced at 98.648 to yield
10.75%, unchanged from guidance. The
senior unsecured bonds have an expected B
rating from Fitch.
The yield is the highest year to date in
the Asian G3 sector. The year’s previous
highest yield came from Guorui Properties,
rated B/B (S&P/Fitch), which on February 27,
priced a US$250m 364-day US dollar senior
unsecured note at par to yield 10.20%.
Gangtai Group is a jewellery retailer and
real-estate developer. It owns a 39.2% stake
in Shanghai-listed jewellery retailer Gansu
Gangtai Holding Group.
It had earlier sounded out the market for
a potential issue of three-year bonds, but
turned to a shorter tenor.
It plans to use proceeds for general
corporate purposes, including debt
repayment.
Haitong International was sole global
coordinator, sole bookrunner and sole lead
manager on the transaction.› HUAYANG E&T HIRES FOR DOLLARSCHINA HUAYANG ECONOMIC AND TRADE GROUP, rated
B+ (S&P), has hired banks for a proposed
offering of US dollar senior unsecured
bonds.
Tensant Securities, DBS Bank, OCBC Bank
and Natixis are joint global coordinators,
as well as joint lead managers and joint
bookrunners with China Goldjoy Securities
and Dongxing Securities (Hong Kong).
The Chinese trading company, which is
under the supervision of the China Council
for the Promotion of International Trade
(CCPIT), met investors in Hong Kong and
Singapore from March 13.
The proposed Reg S bonds have an
expected B+ rating from S&P.
The CCPIT is a national foreign trade
and investment promotion agency directly
under the State Council.
As of January 31 2018, the Asset
Management Centre of the CCPIT owned