COUNTRY REPORT HONG KONGThe borrower is Full Asset Enterprises,
while parent NWD is the guarantor.
› HUI XIAN UNIT CLUBS HK$5BN REFI
Hui Xian Investment, a wholly owned
subsidiary of Hong Kong-listed HUI XIAN REIT,
has closed a HK$5bn three-year refinancing
with six banks.
Bank of China (Hong Kong), China
Construction Bank (Asia), Hang Seng Bank and
Shanghai Pudong Development Bank, Hong
Kong branch, committed HK$1bn each,
while DBS Bank and HSBC came up with
HK$500m apiece.
The unsecured bullet loan pays an all-in
pricing of 125bp, via an interest margin of
105bp over Hibor.
Funds will refinance a loan of a similar
size the company signed with the same six
banks in December 2014. That three-year
loan paid a margin of 215bp.
The new loan was signed on February 23
and drawn in early March.
Hui Xian Investment’s previous visit to
the loan market was in December for a
HK$1.2bn unsecured two-year term loan
with BoC HK, DBS and HSBC to refinance a
similar-sized facility from the same lenders
three years earlier.
› YUE XIU RETURNS FOR HK$3BN LOAN
YUE XIU ENTERPRISES (HOLDINGS) is returning
after two years for a HK3bn three-year
transferable term loan, while its real
estate subsidiary is wrapping up a smaller
borrowing.
Bank of Communications, Hong Kong
branch, Bank of East Asia, Nanyang Commercial
Bank and Taipei Fubon Commercial Bank are
the mandated lead arrangers, bookrunners
and underwriters of the loan, which pays
an interest margin of 140bp over Hibor.
Lenders are being offered a top-level
all-in pricing of 153.33bp and the senior
arranger title for HK$150m or more, via
a participation fee of 40bp, or an all-in of
150bp and the arranger title for HK$70m–
$149m, via a fee of 30bp.
Responses are due on April 18.
Funds will be used for refinancing,
general corporate purpose and working
capital.
The borrower last tapped the market
in January 2016 for a US$400m three-year
bullet term loan. DBS Bank was the MLAB
on that loan, which offered a top-level all-in
of 206bp, based on a margin of 196bp over
Libor.
Meanwhile, Yuexiu Property, a subsidiary
of Yue Xiu Enterprises, is slated to close
general syndication of its HK$1.5bn three-
year term loan. Wing Lung Bank is the
MLAB on that loan, which has attracted
commitments from Bank of East Asia, China
Minsheng Banking Corp, Chong Hing Bank and
OCBC Wing Hang.
The bullet offered a top-level all-in
pricing of 140bp, based on a margin of
120bp over Hibor and a 60bp participation
fee. Yuexiu Property is the guarantor and
wholly owned subsidiary Leading Affluence
is the borrower.
Yue Xiu Enterprises itself is a wholly
owned subsidiary of the Yue Xiu Group,a major state-owned enterprise with
the Guangzhou government as its main
shareholder.EQUITY CAPITAL MARKETS
› QIA SELLS STAKES IN LIFESTYLEQatar Investment Authority has raised
a combined HK$5.2bn (US$663m) from
the sale of its shares in Hong Kong-listed
LIFESTYLE INTERNATIONAL HOLDINGS and LIFESTYLE
CHINA GROUP.
QIA sold 371m shares in Lifestyle
International at a fixed price of HK$12
each, a discount of 3.8% to the pre-deal spot.
It also sold 371m shares in Lifestyle China
at a fixed price of HK$2.03 each, a discount
of 4.7% to the pre-deal spot.
For Lifestyle International’s HK$4.45bn
block, Lau Luen Hung, the controlling
shareholder of the company, has
irrevocably undertaken to purchase 280m
shares.
For Lifestyle China’s HK$753m block,
Lau has also irrevocably undertaken to
purchase 186m shares.
The remaining shares of both blocks
have been fully taken up by other investors,
according to a company filing.
There were 50 investors across both
blocks and the top 10 got 80% of the deals.
Demand came from existing institutional
investors and wealth management clients.
QIA sold the shares in clean-up trades
through subsidiary Bellshill Investment.
UBS was the sole bookrunner.ARE YOUR COLLEAGUES AS
WELL-INFORMED AS YOU?
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