The Reg S unrated bonds will be issued
in the name of wholly owned subsidiary
Tongfang Aqua 2017 and Tsinghua
Tongfang will be the guarantor.
The Shanghai-listed company plans
to use proceeds for general corporate
purposes.
UBS, DBS Bank and Bank of China were
joint global coordinators, as well as joint
bookrunners and joint lead managers
with Cinda International, China Industrial
Securities International and Orient Securities
(Hong Kong).
Tsinghua Tongfang, with China’s
Ministry of Education as the ultimate
controlling shareholder via Tsinghua
University, operates as an information,
security, and energy-saving technology
company.
› ORIENTSEC TAPS 2022 LINE
Hong Kong-listed Chinese brokerage
DFZQ, better known as ORIENT SECURITIES, on
Monday reopened its US$500m 3.625% US
dollar bonds due November 30 2022 for a
US$250m tap.
The tap, capped at US$300m, was priced
at 96.501 to yield 4.459%, equivalent
to Treasuries plus 180bp, inside earlier
guidance of 190bp area.
Wholly owned subsidiary Orient HuiZhi
is the issuer of the Reg S notes and Orient
Securities is the guarantor. The notes have
a Baa3 rating from Moody’s, on par with
the guarantor.
Ahead of the release of news of the tap,
the notes were trading at a spread of five-
year Treasuries plus 167bp in the secondary
market.
Proceeds will be used for offshore debt
refinancing, working capital and general
corporate purposes.
Orient Securities (Hong Kong), BOC
International, Citigroup and Shanghai Pudong
Development Bank, Hong Kong branch were
joint global coordinators. They were also
joint bookrunners and joint lead managers
with China Citic Bank International, China
Industrial Securities International, China
Minsheng Banking Corp, Hong Kong branch,
Haitong International, HSBC, Ping An of China
Securities (Hong Kong) and SPDB International.
› QPI SELLS US$250M NOTES
QINGHAI PROVINCIAL INVESTMENT GROUP, rated
BB– (S&P), has priced a US$250m three-
year senior unsecured bond at par to yield
7.875%, inside initial guidance of 8.00%
area.
The Reg S notes, also with an expected
BB–, are puttable and callable at the end of
year two.
The issue drew final orders of US$480m
from 44 accounts. Regionally, Asia took
94% of the notes and Europe 6%. In terms
of investor types, 53% were fund managers
and asset managers and 47% were banks.
The state-owned enterprise, based in
north-western Qinghai province, is an
aluminium and electricity producer and a
coal miner.
Proceeds will be used for debt
refinancing and general corporate
purposes.
Credit Suisse was sole global coordinator,
as well as joint bookrunner and joint lead
manager with GF Securities and Orient
Securities (Hong Kong).
Last December, Qinghai Provincial
Investment raised US$300m from 363-day
US dollar senior unsecured bonds priced at
par to yield 6.00%.› YANGO RAISES 1.5-YEAR FUNDSChinese property developer YANGO GROUP,
rated B2/B/B, sold US$200m of 1.5-year US
dollar senior unsecured bonds at par to
yield 9.5%.
The amount raised was short of its initial
target of up to US$250m and there was also
no tightening in the final price from initial
guidance of 9.5% area.
Yango Justice International is the issuer
and Shenzhen-listed parent is guarantor.
The Reg S notes are expected to score a B–
S&P rating.
Final orders were not disclosed, but
statistics showed that all the bonds were
allocated to Asian investors. In terms of
investor types, 63.1% were fund managers
and asset managers, 19.9% were private
banks and 17% were banks.
Proceeds will be used for debt
refinancing.
Haitong International was sole global
coordinator, as well as joint bookrunner
with CNCB HK Capital, China Citic Bank
International, Guotai Junan International, Huatai
Financial Holdings (Hong Kong), Oceanwide
Securities and Orient Securities (Hong Kong).
The latest issue was Yango Group’s
second attempt to sell dollar bonds in less
than three months.
In January, it pulled a US$250m three-
year offering that had been marketed at
initial price guidance of 8.875% area.› SHANDONG I&S PRINTS TWO-YEARSHANDONG IRON & STEEL GROUP priced US$150m
of 6.90% two-year US dollar senior
unsecured bonds at 99.816 to yield 7.00%, in
line with initial guidance of 7% area.
This was the Chinese state-owned
steelmaker’s second dollar offering in four
months after it sold US$200m 3.5-year
bonds at par to yield 6.50% in December.Despite two issues, the company has
not used up its entire US$800m offshore
debt-issuance quota from the National
Development and Reform Commission,
according to a banker on the deal. The
quota will expire at the end of this month.
“The market has been very weak recently
and an industrial name is not easy to sell,”
the banker said.
The issuer decided to issue two-year
bonds instead of three-year notes planned
initially as investors, especially Chinese
asset-management companies, wanted
shorter tenors to limit duration risk, he
pointed out.
Wholly owned subsidiary Shandong
Iron and Steel Xinheng International is
the issuer of the Reg S unrated bonds and
the state-owned parent company is the
guarantor.
Proceeds will be used to repay debt at the
guarantor’s offshore subsidiaries.
Zhongtai International, DBS Bank, CEB
International, Bank of China, Guotai Junan
International and Silk Road International were
joint global coordinators, joint bookrunners
and joint lead managers.› POLY LOOKS TO DOLLAR SENIORHong Kong-listed POLY PROPERTY GROUP has
hired banks for a proposed offering of US
dollar senior unsecured bonds.
BOC International has been hired as left-
lead global coordinator and DBS Bank as
joint global coordinator. The two are also
joint lead managers and joint bookrunners
with Guotai Junan International, Haitong
International, ICBC (Asia), UBS and Wing Lung
Bank. Bank of East Asia is co-manager.
The Chinese property developer has
held meetings with investors in Hong Kong
and Singapore, as well as conference calls
with international fixed-income investors,
starting March 22.
The Reg S unrated notes will be issued
through wholly owned BVI subsidiary Ease
Trade Global with Poly Property Group as
the guarantor. The notes will also have the
benefit of a keepwell deed, which ultimate
state-owned parent China Poly Group Corp
will provide.› ENVISION EYES DOLLAR GREENSENVISION ENERGY INTERNATIONAL, rated BBB–
(Fitch), has hired banks for a proposed
offering of US dollar senior Green bonds.
HSBC, Bank of America Merrill Lynch, CMB
International and China Citic Bank International
are joint global coordinators, as well as
joint bookrunners and joint lead managers
with SPD Bank Singapore.
The China-headquartered wind-turbine
maker and wind-farm specialist met