EMERGING MARKETS ASIA-PACIFICmunicipal road and infrastructure
construction, and property management
and services.
TAIZHOU INFRASTRUCTURE HIRES BANKSTAIZHOU INFRASTRUCTURE CONSTRUCTION
INVESTMENT GROUP, rated BBB– by Fitch, has
hired banks for a proposed offering of US
dollar senior unsecured notes.
Citigroup, Orient Securities (Hong Kong) and
Industrial Bank Hong Kong branch are joint
global coordinators, as well as joint lead
managers and joint bookrunners with Silk
Road International and ICBC Asia.
4HEû#HINESEûLOCALûGOVERNMENTûlNANCIALû
vehicle in Taizhou, Zhejiang province,
started to meet investors in Singapore and
Hong Kong on Friday.
The proposed Reg S notes have an
expected BBB– rating from Fitch.
SICHUAN TRANSPORTATION HIRES
BANKS
SICHUAN TRANSPORTATION INVESTMENT GROUP
CORPORATION, rated A– (stable) by Fitch, has
mandated Standard Chartered Bank, China
International Capital Corporation, Citigroup and
Industrial Bank Hong Kong branch as joint
global coordinators for a US dollar bond.
The JGCs are also joint bookrunners, and
joint lead managers with BNP Paribas, CMB
International, CMBC Capital, ICBC (Asia) and
Shanghai Pudong Development Bank Hong Kong
branch.
Fixed income investor meetings in Hong
Kong, Singapore and London began last
week for the proposed Reg S senior
unsecured notes, subject to market
conditions.
The bonds will be issued by Sichuan
#OMMUNICATIONSû/VERSEASû$EVELOPMENT ûAû
wholly owned offshore subsidiary of
Sichuan Transportation, which will also
guarantee the notes.
The bonds are expected to be rated A– by
Fitch.
INDIA
REC APPOINTS BANKS FOR
DOLLAR SENIOR
REC LIMITED, rated Baa3/BBB– (Moody’s/Fitch),
has been meeting investors about a senior
US dollar bond in Asia, Europe and the US.
The roadshow ends on Monday.
IFR reported in September that the Indian
utility had mandated Barclays, Citigroup,
HSBC, JP Morgan, MUFG and Standard
CharteredBank.
A benchmark 144A/Reg S bond issue with
TENORSûOFûlVEûANDORûûYEARSûWILLûBEûDRAWNû
down under its US$5bn global medium-term
note programme, subject to market
conditions.
REC last visited the dollar market in
March, pricing a US$300m of 4.625% 10-year
bonds at Treasuries plus 200bp.INDONESIA
PERTAMINA POSTPONES NEW ISSUEPERTAMINA (Baa2/BBB–/BBB) has postponed a
proposed new US dollar bond issue and
called off a tender offer for some of its
existing paper.
The Indonesian state-owned oil and gas
company visited Asia, London and the US
last week ahead of a potential 144A/Reg S
bond issue via joint bookrunners BNP
Paribas, Deutsche Bank, HSBC, Standard
Chartered and Mandiri. Investor meetings
ended on October 24.
Pertamina announced that the bond
offering would not go ahead at the moment,
but a lead said the issuer might look at
another window later.
The new issue would have funded a
tender offer for Pertamina’s US$1bn 5.25%
senior notes due 2021 and its US$1.242bn
4.875% senior notes due 2022.
It had offered US$1,034.50 per US$1,000
in principal amount of the 2021s, and
US$1,022.50 per US$1,000 of the 2022s.
The offer ended on October 25, and was
dependent on completing a new issue large
enough to fund the tender offer and leave at
least US$500m for general corporate
purposes.
That meant that the tender offer was
dependent on Pertamina being able to price
a new bond on Thursday, which turned out
to be an extremely weak session for Asian
credit, following drops of 2.4% and 3.1% in
THEû$OWû*ONESûANDû30ûSTOCKûINDICESûINû
Wednesday’s US trading session.
The same banks were dealer-managers for
the tender offer.PAN BROTHERS BUYS BACK BONDSPAN BROTHERS will repurchase US$28.922m of
its US$200m of 7.625% bonds due 2022,
following a tender offer.
The purchase price was set at 95% of face
value.
The Indonesian apparel supplier had
offered to pay 92%–95% of face value, and
buy up to US$40m of bonds, with the price
DECIDEDûBYûAûMODIlEDû$UTCHûAUCTION
Netherlands-incorporated subsidiary PB
International issued the bonds in January
2017 with a guarantee from Pan Brothers and
its subsidiaries. It was a debut offshore issue.
ANZ was dealer manager for the offer.SMI EYES DUAL-TRANCHE BONDSSARANA MULTI INFRASTRUKTUR is planning to
raise Rp1trn (US$66m) from dual-tranche
bonds, according to an offer document.
4HEû)NDONESIANûINFRASTRUCTUREûlNANCINGû
lRMûHASûPUTûOUTûINDICATIVEûYIELDSûINûTHEû
range of 7.75%–8.50% for a 370-day tranche
and 8.25%–9.00% for a three-year portion.
The books opened on October 23 and will
close on November 2.
4HEûNOTESûAREûRATEDû!!!ûBYû0ElNDO
Bahana, CGS-CIMB, Danareksa, Indo Premier,
Mandiri and Trimegah Sekuritas are lead
arrangers.INALUM HIRES FOR DOLLAR BONDSIndonesian state-owned aluminium
producer INDONESIA ASAHAN ALUMINIUM (Inalum)
has hired banks to arrange investor
meetings ahead of a potential US dollar
bond offering, after it agreed to buy a
majority stake in the world’s second-biggest
copper mine.
BNP Paribas, Citigroup and MUFG are joint
global coordinators. They are also joint
bookrunners with CIMB, Maybank, SMBC
Nikko and Standard Chartered.
The issuer is expected to be rated Baa2/
BBB– (Moody’s/Fitch).
It will visit Singapore on October 29,
followed by Hong Kong, Los Angeles, Boston
and New York, ending in London on
November 5. An offering of 144A/Reg S
bonds may follow, subject to market
conditions.
Last month, Inalum agreed to acquire
shares from Rio Tinto and Freeport-
McMoRan for US$3.85bn to give it a 51.23%
stake in Freeport Indonesia, which operates
the Grasberg copper mine in Papua
province. The transaction is expected to
CLOSEûBYûTHEûlRSTûQUARTERûOFûSINGAPORE
CITIC ENV TO MAKE CALLCITIC ENVIROTECH (CEL) will redeem its
US$355m 5.45% senior perpetual notes on
THEûlRSTûCALLûDATEûOFû.OVEMBERû
The announcement on SGX last Friday
cleared any lingering doubts over the
water and wastewater treatment
company’s ability to repay the perpetual
bond.
#%,SûlNANCIALûPOSITIONûWASûBOOSTEDûBYû
the availability of loan facilities
denominated in renminbi and US dollars
from Citic Finance. CEL obtained
shareholder approval on October 12 to tap
the Rmb10bn (US$1.47bn) facilities as well
as a US dollar loan for up to US$240m.