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. 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.
BAIC MOTOR has picked banks for a
proposed offering of US dollar senior
unsecured fixed-rate notes.HSBC, Bank of Communications, China
Everbright Bank Hong Kong branch and CEB
International are joint global coordinators, as
well as joint lead managers and joint
bookrunners with CICC, Guotai Junan
International, Haitong International and
Standard Chartered Bank.
The Chinese carmaker started to meet
investors in Hong Kong, Singapore and
London on September 5.
The proposed Reg S unrated notes will be
issued by wholly owned BVI subsidiary BAIC
Finance Investment and guaranteed by BAIC
Motor.
PING 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.
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 joint
bookrunners 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+.
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$1bn in the
offshore bond market.INDIA
REC, PFC MANDATES FOR US$ BONDSRURAL ELECTRIFICATION CORP and POWER FINANCE
CORP have mandated banks for potential
offerings of US dollar bonds in 144A
format, according to a source close to the
plans.
PFC has mandated Barclays, MUFG and
Standard Charted. REC has appointed
Barclays, Citigroup, HSBC, JP Morgan, MUFG
and Standard Chartered.
The state-owned issuers had recently
sent out requests for proposals for dollar
bonds.
Separately, in the onshore market, PFC
scrapped a sale of 10-year bonds on
September 4 after failing to achieve the
desired price, according to a market
source.
The state-owned company received the
lowest bid at 8.57% compared with
expectations of 8.35%, the source said.
It was planning to raise Rs5bn (US$70m),
plus a greenshoe option of Rs20bn.
REC and PFC are yet to make official
announcements on the dollar mandates.PAPUA NEW GUINEA
PNG COURTS GLOBAL INVESTORS
FOR DOLLAR NOTESTHE INDEPENDENT STATE OF PAPUA NEW GUINEA,
rated B2/B (Moody’s/S&P), has mandated
Credit Suisse as the global coordinator and
Credit Suisse and Citigroup as joint lead
managers and bookrunners to arrange a
series of fixed income investor meetings in
Singapore, Hong Kong, London and the US.
Meetings started last Wednesday.
Five-year and/or 10-year 144A/Reg S
notes will follow and are expected to be
rated on par with the issuer.SINGAPORE
UOB MAKES EURO COVERED RETURNUNITED OVERSEAS BANK last Monday returned
to the offshore covered bond market,
locking in tight pricing for a €500m
(US$580m) five-year offering.
The bonds were priced at 99.52 with a
coupon of 0.25%, yielding 0.347% or mid-62 International Financing Review September 8 2018EXOTIC DEBT PRICES: 6/9/2018
Bid Offer
Americas
Cuba (€) 19 .00 2 0.00
Cuba (¥) 18. 00 2 0.00
Guyana/PD–trade 80 .00 90.00
Honduras trade 30 .00 40 .00
Nicaragua/Loans 16. 00 19.00
Suriname trade 12. 00 14 .00
Africa
Angola 9 9.00 100 .00
Benin 10 .00 15. 00
Burkina-Faso 8. 00 10.00
Cameroon trade 22. 00 32. 00
Cape Verde trade 75. 00 85. 00
Central African Rep trade 0 .50 1.50
Congo/trade 25. 00 30.00
Congo (Dem Rep) 3. 75 6. 75
Cote d’Ivoire 10 1.00 103. 00
Equatorial Guinea trade 85. 00 90 .00
Ethiopia 2. 00 4.00
Gabon PD-Trade 7 2.00 82. 00
Ghana 88. 00 92.00
Guinea-Bissau trade 7 .00 10 .00
Guinea 8. 00 13.00
Kenya trade 4 5.00 55. 00
Liberia PD trade 9 .00 12. 00
Madagascar (trade) 27 .00 3 4.00
Mali PD trade 2. 00 6. 00
Mozambique (trade) 6. 00 12. 00
Senegal 2 4.00 26.00
Sierra Leone PD-trade 1. 00 5. 00
Tanzania 12. 00 16.00
Uganda trade 16. 00 18. 00
Zambia PD-trade 15. 00 22. 00
Asia
Bangladesh 7 0.00 80.00
Cambodia trade 6. 00 12. 00
Mongolia 27 .00 38.00
Myanmar trade 27 .00 32. 00
Nepal trade 13. 00 16. 00
North Korea/Loans 0 .50 2. 00
Papua New Guinea 85. 00 95. 00
Vietnam 9 9.00 99.50
Source: Wesbruin Capital8 Emerging 2250 p57-66.indd 62 07/09/2018 18:54:48