COUNTRY REPORT CHINAStandard Chartered Bank and HSBC are
consent solicitation agents for the offer,
which ends on November 17.
The Chinese property developer in
August this year issued US$200m 5.125%
five-year non-call three senior notes.
› KDB PRINTS RMB1.4BN THREE-YEAR
KOREA DEVELOPMENT BANK (Aa2/AA/AA–) has
raised Rmb1.4bn (US$211m) from three-
year Reg S bonds denominated in offshore
renminbi.
The notes were priced at par to yield 4.5%
on October 27.
They will be listed on the Taipei
Exchange and the Singapore Exchange.
The Taipei branches of BNP Paribas and
SG Securities (HK) were bookrunners on the
offering.
The notes are expected to be rated Aa2/
AA (Moody’s/S&P).
› HITACHI CAP TUCKS INTO DIM SUM
HITACHI CAPITAL (UK) has priced Rmb500m
three-year Dim Sum bonds at 4.50%, flat to
final guidance.
Hitachi Capital Corp, rated A– (S&P), is
the guarantor. The issue is expected to have
a similar rating from S&P.
Standard Chartered Bank is the arranger
and lead manager.
› RUSAL MULLS MOSCOW DIM SUM
RUSAL has registered on the Moscow
Exchange an exchange-traded bonds
programme in foreign currencies, including
renminbi, Russian news agency TASS has
reported.
The Russian aluminium producer’s
department director, Elena Ivanova, told
TASS: “We have registered the exchange
bonds programme on the Moscow
Exchange. They can be denominated
in different currencies, including yuan.
Therefore, we are ready to look in this
direction if Chinese investors show interest
in particular.”
So far this year, Hong-Kong listed Rusal,
the world’s second-largest aluminium
producer behind China’s Hongqiao, has
privately placed two Panda bonds in China
to raise a total of Rmb1.5bn in the Shanghai
Stock Exchange.› ICBC TO SELL T2S OF RMB44BNICBC is preparing to sell Rmb44bn of Tier 2
notes in China’s interbank bond market.
Books will open on Monday for the
10-year non-call five notes, which China
Chengxin rates AAA.
China Securities is the lead underwriter on
the offering with BOC International (China),
Citic Securities, GF Securities and CICC as joint
lead underwriters.
Bank of China has raised a combined
Rmb60bn from two T2 notes in the
past two months. The bank priced both
offerings of the 10-year non-call five notes
at par to yield 4.45%.› CENTRAL HUIJIN PLANS 270-DAY NOTESState-owned Chinese investment company
CENTRAL HUIJIN INVESTMENT plans to raise
Rmb99.9bn from the sale of short-term
notes in the country’s interbank bond
market.
Central Huijin, which operates under
sovereign wealth fund China Investment
Corp, intends to issue 270-day short-term
notes, according to a preliminary filing
to the National Association of Financial
Market Institutional Investors.
Both the notes and the issuer have AAA
ratings from Lianhe Credit. Proceeds will be
used to optimise the issuer’s debt structure
and to replenish capital.
ICBC and Citic Securities are lead arrangers
on the proposed issue.
When the issue hits the market, it will
be the first time that Central Huijin has
offered rated bonds under the NAFMII
regime.
Central Huijin has outstanding
Rmb109bn of the so-called government-
supported agency bonds, which have a zero
risk-weighting treatment from the People’s
Bank of China and are exempt from credit
rating.
Central Huijin, set up in 2003, invests in
state-owned financial enterprises on behalf
of the country. As of the end of 2016, it
held stakes in 19 financial institutions,
including China Construction Bank andIndustrial and Commercial Bank of China.› CEA READIES SINGAPORE ISSUECHINA EASTERN AIRLINES has mandated four
banks as joint global coordinators for a
potential offering of senior Singapore dollar
bonds.
The four are DBS Bank, Standard Chartered
Bank, China Construction Bank, Singapore,
and Shanghai Pudong Development Bank.
They will also be joint lead managers and
bookrunners with ICBC Singapore, Bank of
China, ABC International, Agricultural Bank
of China Singapore, Bank of Communications,
HSBC, ANZ, CMBC Capital and Haitong
International.
Meetings with fixed-income investors
will be held in Singapore on Monday, after
which an unsecured guaranteed Reg S
bond may be launched pending market
conditions.
The unrated notes, which will be issued
in the name of Eastern Air Overseas Hong
Kong, will carry an unconditional and
irrevocable guarantee from the parent.SYNDICATED LOANS
› HUAWEI RFP OUT FOR US$1.2BNHUAWEI TECHNOLOGIES has sent requests for
proposals to relationship banks for a five-
year loan of about US$1.2bn.
The telecom equipment and smartphone
maker will use the funds for general
corporate purposes.
It last tapped the syndicated loan market
in June 2015 for a US$1.5bn five-year bullet
facility, which paid a top-level all-in pricing
of 140bp, based on an interest margin
of 115bp over Libor for mandated lead
arrangers and bookrunners.
The loan’s initial target size was
US$1.2bn. The borrowers were Huawei
Tech Investment and a Dutch unit of
Huawei.› BOCOM UNIT LAUNCHES FACILITYBANK OF COMMUNICATIONS FINANCIAL LEASING has
launched a US$300m three-year onshore
loan after sending out requests for
proposals in July.
DBS Bank, HSBC, Sumitomo Mitsui Banking
Corp and Westpac are the mandated lead
arrangers and bookrunners and have
committed to US$75m apiece, meaning
the borrower is likely to increase the size
of the financing if others join in general
syndication.
The amortising facility has an interest
margin of 108bp over Libor and an average
life of 2.76 years.Top bookrunners of China equity and
convertible offerings
1/1/17 – 31/10/17
Amount
Name Issues US$(m) %
1 Citic 48 7,766.4 8.1
2 Goldman Sachs 21 5,585.5 5.9
3 Guotai Junan Sec 33 5,438.7 5.7
4 China Sec 32 4,689.7 4.9
5 CICC 27 4,613.9 4.8
6 Morgan Stanley 26 4,095.5 4.3
7 GF Sec 44 3,547.2 3.7
8 Essence Sec 23 3,353.3 3.5
9 Haitong Sec 45 3,112.2 3.3
10 China Merchants Sec 28 3,047.0 3.2
Total 661 95,461.2
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Thomson Reuters SDC Code: C1m