The notes have expected ratings of A1/A+
(Moody’s/S&P).
Southern Grid in April last year printed
its first international bond offering with
an issue size of US$1.5bn. The 144A/Reg S
deal comprised US$600m 2.75% five-year
and US$900m 3.50% 10-year notes priced at
100bp and 130bp wide of Treasuries.
› CHINESE ISSUERS PLAN OFFSHORES
Chinese property developers XINHU ZHONGBAO
and YANGO GROUP have registered plans
to sell offshore bonds with the National
Development and Reform Commission.
HAN TING STAR(SHANGHAI) HOTEL MANAGEMENT, a
subsidiary of Nasdaq-listed Huazhu Hotels
Group, has also registered, the agency said.
The NDRC did not say when the
registrations were approved.
Xinhu Zhongbao said in June that it
planned to raise up to US$1bn in the
offshore bond market.
› CICC HK NETS THREE-YEAR FUNDING
CHINA INTERNATIONAL CAPITAL CORPORATION (HONG
KONG) has priced a US$400m three-year
floating-rate note at three-month Libor plus
120bp, or 20bp inside initial guidance.
The Reg S notes will have initial ratings
of BBB/BBB+ (S&P/Fitch).
CICC Hong Kong Finance 2016 MTN will
issue the notes, with CICC HK as guarantor.
CICC is the keepwell provider.
China International Capital Corporation,
Citigroup and Standard Chartered Bank
were joint global coordinators, and joint
bookrunners and joint lead managers with
ABC International, Agricultural Bank of China
Hong Kong branch, Bank of Communications,
China Construction Bank (Asia), China Minsheng
Banking Corp Hong Kong branch, China
Securities International, Industrial Bank Hong
Kong branch, Orient Securities (Hong Kong),
OCBC Bank, Shanghai Pudong Development
Bank Hong Kong branch, China Citic Bank
International and China Everbright Hong Kong
branch.
› HUACHEN GIVES DEFAULT NOTICE
Citicorp International sent a notice of
default as trustee last week to investors
holding HUACHEN ENERGY’s 6.625% US$500m
notes due 2020.
According to the notice seen by
IFR, Citi said the issuer had defaulted
by failing to provide the trustee with
officers’ certificates stating the fixed
charge coverage ratio and the company’s
compliance with indentures in due time.
The company should have delivered the
certificates to the trustee on or before May
30 2018, or 150 days after the end of the
company’s fiscal year, but failed to do so,
said Citi.
“Holders have the right to notify the
company of the default and the company
will have 30-days to cure such default,” said
the trustee.
The notice, dated August 27, attaches
a letter by Huachen Energy, which the
company also filed to the Singapore
Exchange on August 27.
In the letter, Huachen said it had
engaged advisers for a review of the
potential impact on the company from the
financial difficulties of its parent company
Wintime Energy.
The company also said in the letter
it believes that the indicative strategic
restructuring co-operation agreement
between Wintime Holding and Beijing
Energy will likely help address any adverse
impact its parent’s difficulties may have on
the company and its obligations under the
notes.
Moody’s on July 7 cut Huachen’s B1
rating to Caa1 and its US dollar bonds to
Caa2 from B2 as a result of its parent’s
default.
Huachen is a wholly owned subsidiary
of Shanghai-listed coal company Wintime
Energy, which in turn is 32% owned by
Wintime Holding. Beijing Energy is wholly
owned by the Beijing government.› PING AN RE MANDATES FOR US$ PERPSPING AN REAL ESTATE has mandated Guotai Junan
International and Standard Chartered Bank as
joint global coordinators for an offering of
US dollar-denominated senior perpetual
securities.
The two JGCs will also be joint
bookrunners and joint lead managers
alongside Haitong International, Mizuho
Securities and MUFG.
Fixed income investor meetings in Hong
Kong, Singapore and London start on
Monday.
The unrated Reg S securities will be
issued by Fuqing Investment Management,
a wholly-owned subsidiary, and
unconditionally and irrevocably guaranteed
by Pingan Real Estate Capital.
The notes will also benefit from a
keepwell deed and a liquidity support
undertaking from Ping An Real Estate.› POLY REAL ESTATE HIRES FOR US$ BONDSChinese property developer POLY REAL ESTATE
GROUP (Baa2/BBB/BBB+) has hired banks to
arrange fixed income investor meetings
in Hong Kong and Singapore starting on
September 6.
HSBC, Bank of China and UBS are joint
global coordinators. They are also jointbookrunners and joint lead managers with
China Everbright Bank Hong Kong branch, ICBC
(Asia), Shanghai Pudong Development Bank Hong
Kong branch, Industrial Bank Hong Kong branch
and Guotai Junan International.
An offering of Reg S US dollar senior
unsecured notes may follow. The notes
would be issued by Poly Real Estate
Finance, a wholly owned BVI subsidiary
of Hengli (Hong Kong) Real Estate, the
guarantor of the notes.
Hengli (Hong Kong) Real Estate is a
wholly owned subsidiary of Poly Real Estate
Group. The notes would have the benefit
of a keepwell deed and a deed of equity
interest purchase undertaking from Poly
Real Estate Group.
The notes would be expected to be rated
Baa3/BBB-/BBB+.› SUNING NAILS THREE-YEAR FUNDINGSUNING APPLIANCE GROUP has priced a US$300m
three-year bond at par to yield 7.5%.
The unrated deal Reg S bond, which
offered a 25 cent rebate, will be issued by
Granda Century and guaranteed by Suning.
Proceeds will be used to refinance existing
debt and for general corporate purposes.
China Citic Bank International, CLSA,
HSBC and UBS (B&D) were joint global
coordinators, and joint bookrunners and
joint lead managers with China Everbright
Bank Hong Kong branch, China Minsheng Banking
Corp, Hong Kong branch, CMBC Capital, Guotai
Junan International and Shanghai Pudong
Development Bank Hong Kong branch.› DAIMLER PRINTS DIM SUM BONDS AGAINDAIMLER, rated A2/A/A–, has raised Rmb1bn
(US$146m) from an offering of three-year
Dim Sum bonds.
The notes were priced at par to yield
4.50%, flat to final guidance.
Daimler International Finance BV is the
issuer of the Reg S notes and Daimler AG is
the guarantor.
The senior unsecured notes have
expected ratings of A2/A/A–, in line with
the guarantor.
The German automaker plans to use the
proceeds for general corporate purposes.
HSBC is the arranger and manager of the
issue.
In March, Daimler printed Rmb1bn
three-year Dim Sum notes at par to yield
4.8%.› FADB SELLS DIM SUM NOTESFIRST ABU DHABI BANK has printed Rmb650m
three-year Dim Sum bonds at par to yield
4.50%, flat to final guidance.
The senior unsecured notes, issued off its