› QINGHAI GROUP SELLING AT 8.00% AREA
QINGHAI PROVINCIAL INVESTMENT GROUP, rated BB–
(S&P), on Friday was marketing three-year
senior unsecured US dollar bonds at initial
price guidance in the 8.00% area.
The Reg S notes, also with an expected
rating of BB–, are puttable and callable at
the end of year two.
The state-owned enterprise, based in
north-western Qinghai province, is involved
in aluminium production, electricity
generation and coal mining.
Proceeds will be used for debt
refinancing and general corporate
purposes.
Credit Suisse is sole global coordinator,
as well as joint bookrunners and joint
lead managers with GF Securities and Orient
Securities (Hong Kong).
The issue was not yet priced at the
timing of writing.
› GREENLAND SELLS DIM SUM NOTES
Chinese property developer GREENLAND
HOLDING GROUP (Ba1/BB/BB–) has raised
Rmb1.5bn (US$237m) from an offering of
three-year Dim Sum bonds.
The notes, expected to receive a Ba2
Moody’s rating, were reoffered at 99.80,
or a yield of 7.20%. The coupon is 7.125%.
Initial price guidance was in the 7.375%
area.
Greenland Global Investment is the
issuer and Greenland Holding Group is
guarantor.
Proceeds are meant for debt refinancing
and general corporate purposes.
BOC International and HSBC were joint
global coordinators, joint bookrunners and
joint lead managers.
› FIRST ABU DHABI MARKETS DIM SUM
FIRST ABU DHABI BANK PJSC was marketing three-
year Dim Sum bonds on Friday at final
price guidance of 4.80%.
The offering stemmed from a reverse
enquiry with strong Taiwanese anchors.
Credit Agricole, Taipei branch, and
Standard Chartered Bank (Taiwan) are joint
bookrunners on the offering.
The bonds are expected to be rated Aa3/
AA–/AA–, on par with the issuer.
› LONGFOR EYES DEBUT RENTAL ISSUE
LONGFOR CHONGQING ENTERPRISE DEVELOPMENT is
set to issue the first special rental housing
bonds this week on the Shanghai Stock
Exchange.
The company, an onshore subsidiary
of Hong Kong-listed Longfor Properties,
intends to raise up to Rmb3bn from a
dual-tranche offering to fund seven rental
housing projects.
The base issue size is Rmb1.5bn with an
overallotment option of another Rmb1.5bn.
Books will open on March 20 for the five-
year non-call three notes and seven-year
non-call five notes.
Both the property developer and the
notes have AAA ratings from China
Chengxin.
Citic Securities is lead underwriter on the
offering with China Securities as joint lead
underwriter.
China last year launched a pilot
programme in 13 major cities, including
Beijing and Shanghai, to build rental
housing projects as part of efforts to ease a
housing supply shortage.
Rental housing bonds are regular notes
whose proceeds must be mainly used to
fund such housing schemes.
At least four other developers have
applied to the SSE to issue rental housing
bonds, including GREENTOWN GROUP’s Rmb4bn
scheme and HOPSON DEVELOPMENT HOLDINGS’
Rmb10bn plan, according to preliminary
filings to the bourse.› PHILIPPINES SET FOR PANDA ISSUETHE REPUBLIC OF THE PHILIPPINES (Baa2/BBB/
BBB) is set to be the first South-East Asian
sovereign to issue Panda bonds in China.
The sovereign will launch this week a
maiden offering of three-year Panda bonds
to raise Rmb1.46bn.
Books will open on Tuesday in China’s
interbank bond market. The notes will
also be available under Bond Connect,
which gives international investors direct
access to China’s domestic market from
Hong Kong.
Proceeds will be remitted offshore as part
of the Philippines’ international reserves.
The proceeds, when converted to peso, can
be used for budget spending and to support
Belt and Road initiative, according to the
bond prospectus.
Bank of China is lead underwriter on the
offering with Standard Chartered Bank (China)
as joint lead underwriter.
The Philippines and the notes have AAA
ratings from China Lianhe Credit.› SHENWU DEFAULTS ON ONSHORE NOTESSHENWU ENVIRONMENTAL TECHNOLOGY said it had
failed to redeem Rmb450m of onshore
notes due to liquidity stress.
The Chinese company, listed on the
Nasdaq-style ChiNext board, privately
placed the 8% three-year non-put two
notes at par to qualified investors on the
Shenzhen Stock Exchange in March 2016.
The issuer has the option to raise thecoupon at the end of the second year and
investors have the right to sell back the
notes at the end of the second year.
Shenwu Environmental announced on
February 6 that it would raise the coupon to
9%, but that failed to reassure bondholders,
who registered all the notes for redemption
by February 13, according to a company
filing to the SZSE.
As of the March 14 due date, Shenwu
was not able to pay a combined
Rmb486m in principal and interest on
the notes.
The manufacturer of acetylene and coal
chemical products said in the filing that it
was in talks to introduce strategic investors
and that a big state-owned company had
completed a due-diligence check on the
firm.
Meanwhile, Shenwu would be actively
seeking to mitigate financial pressure by
way of collecting receivables and external
financing, it said.› TRAFIGURA PLANS PANDA DEBUTCommodities trader TRAFIGURA GROUP plans
to issue debut Panda bonds in China as
early as next month, according to market
sources.
The company, headquartered in
Singapore, has registered a Rmb2.35bn
Panda bond programme with the
National Association of Financial Market
Institutional Investors, the sources have
said.
The first issue off the programme will
be privately placed in China’s interbank
bond market as early as next month, they
said. The tenor is likely to be three years.
Bank of China is lead underwriter on
the offering with ICBC as joint lead
underwriter. Standard Chartered Bank (China)
is financial adviser.
Trafigura raised US$400m from five-year
US dollar bonds last week.› CINDA PRINTS JUMBO ONSHORE DEALCHINA CINDA ASSET MANAGEMENT has raised
Rmb11bn from a second offering of
onshore 10-year notes in less than two
months.
The notes were priced at par to yield 5.5%
in the country’s interbank bond market,
or 70bp over the yield of 10-year China
Development Bank notes.
Both the issuer and the notes have AAA
scores from China Lianhe Credit Rating.
China Cinda will use the proceeds
mostly to develop its distressed-debt
business.
In late January, China Cinda printed
Rmb15bn 10-year notes at par to yield 5.5%.
Cinda Securities was lead underwriter