ASIA-PACIFIC
CHINA
SPIC PRINTS US$800m DUAL-TRANCHERSTATE POWER INVESTMENT CORP, rated A2/A–/A,
ONEûOFûTHEûlVEûLARGESTûSTATE
OWNEDû
electricity producers in China, has drawn
lNALûORDERSûOFû53BNûFORûAû53MûTWO
tranche bond issue.
A US$300m 4.25% three-year tranche was
priced at Treasuries plus 135bp and a
53MûûlVE
YEARûTRANCHEûWASûPRICEDû
at Treasuries plus 170bp, well inside initial
guidance of the 165bp area and 190bp area,
respectively.
4HEûTHREE
YEARûBONDSûDREWûlNALûORDERSûINû
excess of US$493m from 48 accounts. Asia
0ACIlCûTOOKûûOFûTHEûNOTESûANDû%-%!ûû
By investor type, 34% went to asset managers,
30% to banks and insurance, 22% to sovereign,
and 14% to private banks and others.
&INALûORDERSûFORûTHEûlVE
YEARûTRANCHEû
exceeded US$1bn from 75 accounts. Asia
0ACIlCûTOOKûûOFûTHEûNOTESûANDû%-%!ûû
By investor type, 65% went to asset managers,
13% to banks and insurance, 7% to sovereign,
and 15% to private banks and others.
The senior unsecured Reg S bonds will be
issued by SPIC Luxembourg Latin America
Renewable Energy Investment Company
and guaranteed by SPIC Luxembourg Energy
Investment Company, a wholly owned
subsidiary of the state-owned parent.
The bonds, with an expected rating of A–
BYû&ITCH ûWILLûALSOûHAVEûTHEûBENElTûOFûAû
keepwell and equity interest purchase
undertakings to be provided by State Power
Investment Corp.
0ROCEEDSûWILLûBEûUSEDûFORûDEBTûRElNANCINGû
and general corporate purposes.
JP Morgan, Bank of America Merrill Lynch, BOC
International and ICBC were joint global
coordinators as well as joint bookrunners
and joint lead managers with BoCom
International.
HAINAN AIRLINES PAYS OVER 13%HAINAN AIRLINES (HONG KONG) priced a US$100m
two-year non-put US dollar bond at a 13.17%
yield to maturity.
The coupon is 12%. The notes were issued
at a discounted cash price of 98.
The unrated notes have an investor put
option in October 2019 at par to yield
14.216%.
Hainan Airlines Holding, a unit of debt-
laden HNA Group, is the guarantor.
The company has a US$300m 6.35% 364-
day note due on October 31. That deal was
Hainan Airlines’ second sale of US dollar
notes with a maturity of less than one year
in 2017.
Guotai Junan International was sole global
coordinator and joint bookrunner, and was
also joint lead manager with GPB Financial
Services Hong Kong.
!ûSIMILARûMANDATEûWASûlRSTûANNOUNCEDûINû
May through Guotai Junan, but a deal did
not materialise then. Last month, the
mandate was announced with Guotai Junan
ANDû$"3û"ANK ûANDûlXEDûINCOMEûINVESTORû
meetings followed.
In the onshore market, HAINAN AIRLINES
HOLDING, another unit of HNA Group, raised
Rmb1.5bn (US$216m) from onshore
perpetual non-call three bonds on the
Shanghai Stock Exchange.
The notes, priced at par to yield 7.45%,
will have a 300bp step-up if not called after
three years.
Both the issuer and the notes have AAA
ratings from China Chengxin.
The issuer intends to use the proceeds for
DEBTûRElNANCINGûANDûWORKINGûCAPITAL
Huajing Securities was lead underwriter on
the offering with Huafu Securities as joint lead
underwriter.
Hainan Airlines received approval to issue
up to Rmb5bn perps on the SSE. It issued
Rmb500m on September 14 and Rmb800m
on September 27.
The company on October 12 said it had
decided not to call Rmb2.5bn onshore perps
issued in the China’s interbank bond
market, reversing a September 21
announcement. It cited the uncertainty
facing the airline industry amid intensifying
global trade tensions, China’s economic
slowdown, the oil prices surge and the US
dollar’s appreciation.GANSU HIGHWAY TAPS DOLLAR BONDSGANSU PROVINCIAL HIGHWAY AVIATION TOURISM
INVESTMENT GROUP tapped its US$350m 6.25%senior unsecured notes due August 2 2021
for US$150m, bringing the total outstanding
to US$500m.
The reopening priced at a cash price of
100.413, implying a yield of around 6.08%.
4HISûWASûATûTHEûTIGHTûENDûOFûlNALûGUIDANCEûOFû
100.363–100.413, which translated to a yield
of around 6.08%–6.10%. Marketing began at
the 100.238 area, translating to a yield of
around 6.15%.
/RDERSûHADûEXCEEDEDû53MûWHENûlNALû
guidance was announced.
The Reg S bonds are rated BBB–/BBB (S&P/
Fitch), in line with the issuer.
Bank of China, Barclays and Citigroup were
joint global coordinators. They were also
joint bookrunners with Shanghai Pudong
Development Bank Hong Kong branch, Industrial
Bank Hong Kong branch, Guotai Junan
International and Orient Securities (Hong Kong).
Industrial Bank was added to the
syndicate midway through bookbuilding.
Gansu Highway is the only enterprise
authorised by the provincial government of
Gansu, a north-central Chinese province, to
manage and operate transportation
infrastructure projects there.
The original US$350m issue priced in July
ATûûTOûYIELDû ûINûTHEûlRSTû
benchmark-sized US dollar bond from a
LOCALûGOVERNMENTûlNANCINGûVEHICLEûINû
months.SINOPEC PRINTS DUAL-CURRENCY BONDSCHINA PETROCHEMICAL CORPORATION, known as
Sinopec Group, priced US$297m-equivalent
of dual-currency Reg S senior notes
denominated in offshore renminbi and
Hong Kong dollars.
Through SINOPEC CENTURY BRIGHT CAPITAL
INVESTMENT, rated A2/A (Moody’s/S&P), the
Chinese state-owned oil company sold
2MBBNû53M ûOFûTHREE
YEARû$IMû3UMû
bonds at par to yield 4.50%, 20bp tighter
than initial 4.70% area guidance.ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Asia-Pacific
Managing No of Total Share
bank or group issues US$(m) (%)
1 HSBC 188 19,674.98 8.1
2 Citigroup 103 13,960.02 5.7
3 Bank of China 131 11,670.07 4.8
4 Standard Chartered 111 10,526.45 4.3
5 Morgan Stanley 58 9,741.49 4.0
6 BNP Paribas 79 9,118.36 3.7
7 BAML 54 7,984.24 3.3
8 Goldman Sachs 44 7,635.51 3.1
9 Credit Suisse 52 6,846.32 2.8
10 JP Morgan 48 6,755.48 2.8
Total 549 243,673.91
Excluding equity-related debt.
Source: Refinitiv SDC code: L4ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 204 45,298.01 9.5
2 HSBC 258 39,329.41 8.2
3 JP Morgan 133 29,940.81 6.3
4 Standard Chartered 170 25,127.98 5.3
5 Deutsche Bank 94 23,259.36 4.9
6 BNP Paribas 116 17,893.90 3.7
7 Goldman Sachs 60 14,885.40 3.1
8 BAML 80 14,618.37 3.1
9 Morgan Stanley 75 13,639.07 2.9
10 Bank of China 135 13,208.57 2.8
Total 829 478,156.23
Excluding equity-related debt.Source: Refinitiv SDC code: L1