COUNTRY REPORT CHINA› HEALTHY ORDERS FOR SINOPEC
CHINA PETROCHEMICAL CORPORATION (Sinopec
Group) drew final orders of over
US$3.725bn for its US$2.4bn four-part 144A/
Reg S US dollar bond offering.
Asia’s largest refiner, rated A1/A+
(Moody’s/S&P), last Wednesday priced
US$750m 3.75% five-year, US$500m 4.125%
seven-year and US$750m 4.25% 10-year
notes at 110bp, 135bp and 145bp over
Treasuries, respectively, inside initial
guidance of 125bp area, 145bp area and
160bp area. A US$400m 4.60% 30-year
tranche priced 5bp tighter than 4.65% area
guidance.
Orders for the five-year tranche were
over US$1.5bn from 55 accounts. Of the
notes, 47% went to Asia, 21% to EMEA and
32% to the US. In terms of investor type,
21% went to banks, 48% to fund managers,
26% to sovereign wealth funds, and 5% to
private banks and others.
For the seven-year tranche, orders were
over US$625m from 46 accounts. Asia took
47%, EMEA 8% and the US 45%. By investor
type, 20% went to banks, 55% to fund
managers, 22% to sovereign wealth funds,
and 3% to private banks and others.
The 10-year tranche attracted final orders
of over US$1.1bn from 65 accounts. Asia
took 62%, EMEA 13% and the US 25%. By
investor type, 36% went to insurance and
pension funds, 40% to asset managers and
fund managers, 13% to sovereign wealth
funds and central banks, 9% to banks, and
2% to private banks and others.
For the 30-year tranche, final orders
were over US$500m from 25 accounts.
Asia took 96% of the notes and the US 4%.
By investor type, 74% went to insurance
and pension funds, 23% to asset managers
and fund managers, 1% to sovereign
wealth funds and central banks, and 2%
to banks.
Wholly owned subsidiary Sinopec
Group Overseas Development (2018) is the
issuer and the state-owned parent is the
guarantor. The senior unsecured bonds
have expected ratings of A1/A+ (Moody’s/
S&P), in line with the guarantor.
Citigroup, Goldman Sachs, Bank of China,
HSBC, ICBC International and Mizuho Securities
were joint global coordinators. They were
also joint bookrunners with Agricultural
Bank of China Hong Kong branch, Bank of
America Merrill Lynch, Bank of Communications,
CCB International, Credit Agricole, DBS Bank,
JP Morgan, Morgan Stanley, Societe Generale,
Standard Chartered Bank, UBS and UOB.
› HELENBERGH LOOKS TO US$ BOND
GUANGDONG HELENBERGH REAL ESTATE GROUP,
rated B2/B/B+, has hired banks for a
proposed debut offering of US dollar senior
unsecured notes.
Guotai Junan International, Barclays, Haitong
International, CCB International and CEB
International are joint global coordinators
as well as joint lead managers and
joint bookrunners with Shanxi Securities
International and Yue Xiu Securities.
The Guangdong-based privately owned
property developer had met investors
and held investor call in Hong Kong on
September 4.
Wholly owned subsidiary Assure Rise
Investments will be the issuer of the Reg
S notes and Guangdong Helenbergh is the
guarantor. The notes have an expected B+
rating from Fitch.
Guangdong Helenbergh in mid-May held
a non-deal fixed income roadshow in Hong
Kong via Guotai Junan International and
Barclays.› JIANYIN HIRES BANKS FOR US$ SENIORCHINA JIANYIN INVESTMENT (A2/A/A+), an
investment arm of sovereign wealth fund
China Investment Corp, has hired banks
for a proposed offering of US dollar senior
bonds.
Bank of China, HSBC and Cinda International
are joint global coordinators as well as joint
bookrunners and joint lead managers with
ICBC International, Bank of Communications,
China Everbright Bank Hong Kong branch, DBS
Bank, OCBC Bank, China Citic Bank International
and CICC.
Jianyin will meet investors in Singapore
and Hong Kong, starting Monday.
The proposed Reg S notes will be issued
by Xingsheng (BVI) and guaranteed by JIC
Leasing Company, a subsidiary of Jianyin.
The bonds will also have the benefit of a
keepwell deed to be provided by Jianyin
and are expected to be rated A+ by Fitch.
Jianyin is the sole and wholly owned
industrial business investment platform of
Central Huijin Investment, which is directly
managed by CIC. It is also one of the 24
state-owned financial institutions directly
supervised by the Ministry of Finance.
Jianyin in November last year printed its
debut US$1.49bn-equivalent dual-currency
bond offering in the international bond
market.› MINMETALS LAND PLANS OFFERINGMINMETALS LAND has hired banks for a
proposed offering of US dollar senior bonds
with the proceeds to be used to refinance
debt.
BOC International, DBS Bank, Haitong
International and HSBC are joint global
coordinators as well as joint lead managers
and joint bookrunners with China EverbrightBank Hong Kong branch, CLSA, Industrial
Bank Hong Kong branch, Shanghai Pudong
Development Bank Hong Kong branch and
Silk Road International Capital on the Reg S
unrated issue.
Wholly owned subsidiary Expand Lead
is the issuer and the Hong Kong-listed
company is the guarantor. The notes will
also have the benefit of a keepwell deed
from ultimate controlling shareholder
China Minmetals Corporation (Baa1/BBB+/
BBB+).
Minmetals Land started to meet investors
in Hong Kong last Friday.› SHIPBUILDER EYES US$/EURO BONDSCHINA STATE SHIPBUILDING CORPORATION has
hired banks for a proposed offering of
credit-enhanced senior unsecured bonds
denominated in US dollars and euros.
ICBC, Barclays and CCB International are
joint global coordinators, as well as joint
bookrunners with Bank of China, Bank of
Communications, BOSC International, Industrial
Bank Hong Kong branch and Societe Generale on
the Reg S issue.
The state-owned shipbuilder will meet
investors in Singapore, Hong Kong,
Frankfurt and London, starting Monday.
An offering of three-year US dollar bonds
and five-year euro bonds may follow,
subject to market conditions.
The US dollar bonds will be issued by
CSSC Capital One and the euro bonds by
CSSC Capital Two, both wholly owned
special-purpose vehicles of China State
Shipbuilding.
The proposed bonds will be credit-
enhanced by a standby letter of credit
provided by ICBC Shanghai branch and will
benefit from a keepwell deed provided by
China State Shipbuilding.
The bonds have an expected rating of A1
from Moody’s.› SOUTHERN GRID PLANS DOLLAR RETURNCHINA SOUTHERN POWER GRID, rated A1/A+/A+,
has hired banks for a proposed offering of
US dollar senior notes.
Bank of China, Citigroup and JP Morgan are
joint global coordinators as well as joint
bookrunners and joint lead managers with
China Construction Bank, Mizuho Securities and
CICC.
The monopoly power-grid operator in
China’s five southern provinces started to
meet investors in Hong Kong, Singapore
and London last Thursday.
Wholly owned offshore subsidiary China
Southern Power Grid International Finance
(BVI 2018) is the issuer of the proposed
Reg S notes, and the state-owned parent
company is the guarantor.