COUNTRY REPORT CHINAEMTN programme, have expected ratings
of Aa3/AA–/AA–, in line with the issuer.
Standard Chartered Bank is the sole lead
manager.
› BELARUS EYES PANDA BONDS
THE REPUBLIC OF BELARUS (B3/B/B) has obtained
a Chinese domestic rating, paving the
way for its debut Panda bond issue in the
country’s interbank bond market.
China Chengxin has assigned a domestic
rating of AA+ to the sovereign and a global
rating of BBg to Belarus, according to a
press release published on the official
website of the Belarusian Embassy in China
on September 3.
“Obtaining a credit rating that meets
Chinese standards is part of Belarus’
preparations to issue sovereign bonds in
China’s domestic market,” it said.
In January 2017, Belarus conducted a
non-deal roadshow via Bank of China and
ICBC International in Hong Kong, but it has
not proceeded with an issue.
› UOB PLANS PANDA BONDS
UNITED OVERSEAS BANK is planning to issue
Panda bonds in China’s interbank bond
market after its Chinese unit launched a
maiden print of renminbi bonds in April.
China Chengxin has assigned a rating to
United Overseas Bank for a proposed bond
offering in the interbank market, according
to a filing by the Chinese agency. It did not
disclose the rating.
In April, United Overseas Bank (China)
printed Rmb1bn three-year notes at par to
yield 4.93%.› CHINA CITIC READIES ONSHORE T2 NOTESCHINA CITIC BANK is set to raise up to Rmb30bn
from its first offering of onshore tier-two
notes in four years.
Books open on September 11 in China’s
interbank bond market for the 10-year non-
call five notes.
China Securities is joint lead underwriter
and bookrunner on the offering, with Citic
Securities, Bank of China and CICC as joint lead
underwriters.
Dagong Global Credit Rating assigned
ratings of AAA to both the issuer and the
notes in May.
In August 2014, the Chinese lender
printed Rmb37bn of 10-year non-call five T2
notes at par to yield 6.13%.› CHINA GAS RETURNS TO PANDA BONDSCHINA GAS HOLDINGS is set to raise up to
Rmb2.5bn from a dual-tranche offering
of Panda bonds on the Shanghai Stock
Exchange.
The issuer, rated AAA by China
Chengxin, is looking at five-year non-put
three notes and seven-year non-put five
notes. Books open on September 10.
The proceeds will be used to repay debt.
Goldman Sachs Gao Hua Securities is lead
underwriter and bookrunner on the
offering. HSBC Qianhai Securities is syndicate
member.
The company, incorporated in Bermuda,is primarily engaged in the construction
and operation of city gas pipelines in the
PRC.› FANTASIA CLEARED FOR ONSHORE NOTESChinese property developer FANTASIA
HOLDINGS GROUP has won regulatory approval
to issue up to Rmb2.9bn of onshore bonds.
Fantasia Group (China), an onshore
subsidiary of the Hong Kong-listed
developer, has been approved by the
Shanghai Stock Exchange to go ahead with
the public bond offering, according to a
preliminary filing to the SSE.
The issuer, rated AA+ by China
Chengxin, intends to use the proceeds to
meet a redemption of onshore bonds. It
has Rmb3.1bn of onshore bonds that are
puttable for the remainder of this year.
Huatai United Securities is sole lead on the
offering.SYNDICATED LOANS
› SHANGHAI PHARMA LOAN FOR STAKEShanghai Pharmaceuticals Holding has
closed a US$153m three-year bullet loan to
fund the acquisition of an additional 26.3%
stake in Chinese drug company Techpool
Bio-pharma from a Swiss subsidiary of
Japan’s Takeda Pharmaceutical.
Sole underwriter Standard Chartered pre-
funded the facility before launching it into
limited syndication. Four other lenders joined.
SHANGHAI PHARMACEUTICALS (HK) INVESTMENT, aVanke’s group closes financing to buy malls
Loans Consortium taps onshore-offshore borrowing for purchase from CapitaLandCHINA VANKE has closed a Rmb4.26bn-
equivalent (US$620m) loan to finance the
acquisition of shopping malls in China from
Singapore’s CapitaLand.
DBS Bank and Maybank were the
mandated lead arrangers, bookrunners and
underwriters of the three-year multi-currency
borrowing, which has a US$513.56m offshore
tranche and a Rmb764.82m onshore portion.
The offshore tranche, which will be drawn
this week, comprises a US$257m piece and a
S$350.36m (US$256m) portion.
The onshore tranche, which was drawn at
the end of May, was reduced from an original
size of Rmb781.8m as the borrower did not
need to raise as much as initially planned.
Proceeds from this tranche were used for
refinancing debt, some of which was repaidduring the syndication process.
China Merchants Bank participated in both
tranches, while China Minsheng Banking Corp
and Mega International Commercial Bank
joined the offshore portion.
The entire financing comes with an inter-
creditor agreement.
SWIFT ASTUTE is the borrower of the offshore
portion, which paid a top-level all-in pricing
of 289bp based on an interest margin of
275bp over Libor. The onshore piece paid
an all-in pricing of around 115% of the PBoC
rate.
Proceeds of the offshore tranche back the
Vanke-led consortium’s proposed purchase
of 20 shopping malls with a total gross floor
area of around 950,000 square metres,
located in core areas in 19 cities in China.The members of the consortium include
Chogori Investment (Hong Kong), SCPG
Holdings and Triwater Asset Management
Holdings. The first two entities are a wholly
owned subsidiary and a commercial unit
of Vanke, respectively, while the third is a
subsidiary of Chinese private equity fund
Hopu Investment Management.
On January 5, SCPG Holdings said that
it had teamed up with Vanke and Triwater
to reach an agreement with CapitaLand
Mall Asia, a wholly owned subsidiary of
CapitaLand, to jointly acquire 100% equity
and undertake corresponding loans of
20 shopping mall holding companies for
Rmb8.365bn.
For full allocations, see http://www.ifrasia.com.
CHIEN MI WONG, EVELYNN LIN, YAN JIANG