IFR International - 20.10.2018

is the issuer of the Reg S unrated notes and
:HEJIANGû'EELYûISûTHEûGUARANTOR
FOUNDER SECURITIES (HONG KONG) FINANCIAL
HOLDINGS hired banks to arrange investor
MEETINGSûINû3INGAPOREûANDû(ONGû+ONGû
which began on October 19.
Founder Securities (Hong Kong) Capital, Guotai
Junan International, BOC International, Natixis
and Industrial Bank Hong Kong branchûAREûJOINTû
GLOBALûCOORDINATORSû4HEYûAREûALSOûJOINTû
bookrunners with Haitong International,
Zhongrong PT Securities, Zhongtai International,
DBS, Orient Securities (Hong Kong) and
Oceanwide Securities.
A US dollar Reg S senior unsecured bond
offering may follow.
First FZ Bond will be issuer for the
proposed bond offering, which will have a
guarantee from Chinese brokerage Founder
3ECURITIESû(ONGû+ONG û&INANCIALû(OLDINGSû
and a keepwell deed from Founder
Securities.
The bonds are expected to be unrated.
LIUZHOU DONGTONG INVESTMENT & DEVELOPMENT
has hired Guotai Junan International and CCB
InternationalûASûJOINTûGLOBALûCOORDINATORSû
JOINTûBOOKRUNNERSûANDûJOINTûLEADûMANAGERSû
for a proposed offering of US dollar senior
unsecured bonds.
The state-owned integrated infrastructure
developer in Liuzhou, in the Guangxi
Zhuang Autonomous Region, met investors
INû(ONGû+ONGûANDû3INGAPOREûFROMû/CTOBERû

The proposed Reg S notes have an
expected BB rating from Fitch, in line with
the issuer.
ZHAOJIN MINING INDUSTRY,rated BB+/BB (S&P/
Fitch), has hired Credit Suisse as sole global
coordinator, bookrunner and lead manager
for a proposed offering of US dollar bonds.
The Chinese gold producer will meet
INVESTORSûINû(ONGû+ONGû3INGAPOREûANDû
London, starting on October 22.
The proposed Reg S bonds will be issued
BYûWHOLLYûOWNEDûSUBSIDIARYû:HAOJINû-ININGû
International Finance and guaranteed by the
(ONGû+ONG
LISTEDûPARENT
The notes have expected ratings of BB+/BB
(S&P/Fitch), in line with the guarantor.
0ROCEEDSûWILLûBEûUSEDûFORûDEBTûRElNANCINGû
and general corporate purposes.
:HAOJINû-ININGûSAIDûINû-ARCHûITûPLANNEDû
to issue up to US$300m in offshore bonds.

INDIA

STABILITY LURES BACK INDIAN ISSUERS

Top-rated Indian issuers such as RELIANCE
INDUSTRIES and HOUSING DEVELOPMENT FINANCE
CORP returned to the domestic bond market
this month, taking advantage of renewed
stability following coordinated efforts from

the government and central bank to settle

the market.

Investors had been on the sidelines since

Infrastructure Leasing and Financial Services

missed a string of debt payments beginning

in late August, but the dust has begun to

settle after the government took control of

the board and took action to support the

bond market.

Both Reliance and HDFC have come back

to the bond market nearly a year after their

last visits. The oil-to-telecoms conglomerate

RAISEDû2SBNû53M  ûFROMûTHEûSALEûOFû



YEARûBONDSûATûûAFTERû)NDIASûLARGESTû

PRIVATEûHOUSINGûlNANCEûCOMPANYûRAISEDû

2SBNûATûTHEûSAMEûTENORûANDûYIELD

HDFC priced its bonds at a 100bp spread

over 10-year government bonds, which is a

normal spread compared with the past few

years, said Conrad D’Souza, member of

executive management and chief investor

RELATIONSûOFlCERûFROMû($&#ûINûAûPANELû

discussion with S&P on October 11.

“The private placement of bonds has

resumed. Earlier, if 10 deals were happening

in a week, it had gone down to near zero in

the past few weeks and now we are seeing

DEALûmOWûPICKûUPvûSAIDû,AKSHMIû)YERûCHIEFû

INVESTMENTûOFlCERûOFûDEBTûANDûHEADûOFû

PRODUCTSûATû+OTAKû-UTUALû&UND

LIC HOUSING FINANCE also raised a total of

2SBNûFROMûTWOûTRANCHESûOFûDOMESTICû

bonds in the past week, while MAHINDRA

RURAL HOUSING FINANCE and RURAL

ELECTRIFICATION CORPûRAISEDû2SMûANDû

Rs21.71bn each from short-tenor bonds.

State-owned NATIONAL BANK FOR AGRICULTURE

AND RURAL DEVELOPMENT raised Rs12.89bn from

Aû

YEARûBONDûISSUEûANDûHOUSING AND URBAN

DEVELOPMENT COMPANY is in the market with a

government-serviced 10-year deal.

The offerings came as India’s 10-year AAA

RATEDûCORPORATEûBONDûYIELDSûEASEDûTOûû

LASTûWEEKûFROMûAûFOUR

YEARûHIGHûOFûûONû

/CTOBERûûACCORDINGûTOû2ElNITIVûDATA

This month, regulator National Housing

"ANKûINCREASEDûTHEûRElNANCINGûLIMITûFORûTHEû

NBFC sector, State Bank of India said it

would step up its target to buy good quality

NBFC assets, and Reserve Bank of India

allowed banks to lend more to NBFCs,

HELPINGûRESTOREûCONlDENCEûINûTHEûDEBTû

market.

These actions “lent a hand in restoring

temporary stability”, said Radhika Rao,

economist from DBS Bank in a note on

/CTOBERû

Separately, the central bank also kept

INTERESTûRATESûONûHOLDûONû/CTOBERûûDUEûTOû

BENIGNûFOODûINmATIONûFOLLOWINGûAûSLEWûOFû

liquidity measures to ease pressure on short-

term rates, although the local currency

continued to slide.

“In the past few weeks we have not

invested in bonds because we were

cautious,” said Aneesh Srivastava, chief

INVESTMENTûOFlCERûATû)$")û&EDERALû,IFEû

Insurance. “Our requirement is long-

maturity paper. Currently, we are selective

in terms of the quality of paper we invest

in.”

While AAA rated issuers are coming back,

demand for longer tenor bonds remains

cool, even from frequent issuers such as LIC

Housing Finance and REC. Both had to scrap

their 10-year bond offerings after they did

not get the desired demand.

INDONESIA

PLN TRIMS OFFSHORE PREMIUM

PERUSAHAAN LISTRIK NEGARA on Thursday priced

AROUNDû53BNûOFûSENIORûBONDSûINûDOLLARSû

and euros across three 144A/Reg S tranches,

leaving little on the table despite weak

market conditions.

!û53MûLONGû

YEARûDUEû*ANUARYû

ûTRANCHEûWASûPRICEDûATûAûYIELDûOFûû

FROMûINITIALûGUIDANCEûOFûûAREAûANDûAû

53MûLONGû

YEARûDUEû*ANUARYûû

TRANCHEûWASûPRICEDûATûûFROMûûAREA

A lead estimated the new issue concession

to be around 7bp for the 2029s and 9bp for

the 2049s. The concession had looked more

LIKEûBPûBASEDûONûTHEûPRICEûREFERENCESûATû

the start of the day, with PLN’s 2028s quoted

ATûûANDûITSûSûATûûBUTû

Indonesian bond yields widened in the

course of a weak trading session.

4HATûWASûFARûLESSûTHANûTHEûBPnBPû

premium PLN had to pay in its last visit to

the offshore market in May this year, when

it sold US$2bn of bonds across 10 and 30-

year tenors during a period of Treasury

volatility.

!ûõMû53M    ûSEVEN

YEARûBONDû

TRANCHEûWASûPRICEDûATûMID

SWAPSûPLUSûBPû

FROMûINITIALûPRICEûTHOUGHTSûOFûBPûAREA

The Indonesian state-owned power utility

attracted total orders of more than US$990m

from 87 accounts for the 2029s and

53BNûFROMûûACCOUNTSûFORûTHEûS

53ûINVESTORSûTOOKûûOFûTHEûSûûWHILEû

!SIAûTOOKûûANDû%UROPEû

Half of the 2049s also went to the US, with

%UROPEûANDû!SIAûTAKINGûûEACH

By investor type, fund managers booked

ûOFûTHEûSûINSURERSûANDûPENSIONû

FUNDSûûPUBLIC

SECTORûINVESTORSûû

BANKSûûANDûPRIVATEûBANKSû

&UNDûMANAGERSûBOUGHTûûOFûTHEûSû

insurers, pension funds and public-sector

INVESTORSûBOOKEDûAûCOMBINEDûûANDû

BANKSûANDûPRIVATEûBANKSûTOOKû

Deal statistics for the euro tranche have

yet to be released.

The bonds have expected ratings of Baa2/

BBB–/BBB, in line with the issuer. In August,