New Issue: China Huarong prices $700 million 4% perpetual securities at par

By Marisa Wong

Morgantown, W.Va., Nov. 1 – China Huarong Asset Management Co., Ltd. priced a $700 million offering of 4% unsubordinated guaranteed perpetual securities (Baa1//A-) on Tuesday, according to a company announcement.

The notes will be issued through wholly owned subsidiary Huarong Finance 2017 Co., Ltd. and guaranteed by another wholly owned subsidiary, China Huarong International Holdings Ltd.

The distribution rate will reset on Nov. 7, 2022 and every five years after that at Treasuries plus 670.9 basis points.

The notes are callable at par on Nov. 7, 2022 and every semiannual distribution payment date after that.

Australia and New Zealand Banking Group Ltd., Bank of China Ltd., Bank of Communications Co., Ltd. Hong Kong Branch, CLSA Ltd., DBS Bank Ltd., Goldman Sachs (Asia) LLC, Huarong International Securities Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Morgan Stanley & Co. International plc, Standard Chartered Bank, ABCI Capital Ltd., BOCI Asia Ltd., CCB International Capital Ltd., China Citic Bank International Ltd., China International Capital Corp. Hong Kong Securities Ltd., China Minsheng Banking Corp., Ltd., Hong Kong Branch, CMB International Capital Ltd., Commonwealth Bank of Australia, First Abu Dhabi Bank PJSC, Hongkong and Shanghai Banking Corp. Ltd., Industrial Bank Co., Ltd. Hong Kong Branch, Nomura International (Hong Kong) Ltd., Oversea-Chinese Banking Corp. Ltd., Shanghai Pudong Development Bank Co., Ltd. Hong Kong Branch, SPDB International Capital Ltd. and United Overseas Bank Ltd. are the joint lead managers for the Regulation S deal.

The securities will be issued under the company’s $10 billion medium-term note program.

Proceeds will be used for working capital and general corporate purposes.

The state-owned asset manager is based in Beijing.

Issuer:	Huarong Finance 2017 Co., Ltd.
Guarantor:	China Huarong International Holdings Ltd.
Issue:	Unsubordinated guaranteed securities
Amount:	$700 million
Maturity:	Perpetual
Lead managers:	Australia and New Zealand Banking Group Ltd., Bank of China Ltd., Bank of Communications Co., Ltd. Hong Kong Branch, CLSA Ltd., DBS Bank Ltd., Goldman Sachs (Asia) LLC, Huarong International Securities Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Morgan Stanley & Co. International plc, Standard Chartered Bank, ABCI Capital Ltd., BOCI Asia Ltd., CCB International Capital Ltd., China Citic Bank International Ltd., China International Capital Corp. Hong Kong Securities Ltd., China Minsheng Banking Corp., Ltd., Hong Kong Branch, CMB International Capital Ltd., Commonwealth Bank of Australia, First Abu Dhabi Bank PJSC, Hongkong and Shanghai Banking Corp. Ltd., Industrial Bank Co., Ltd. Hong Kong Branch, Nomura International (Hong Kong) Ltd., Oversea-Chinese Banking Corp. Ltd., Shanghai Pudong Development Bank Co., Ltd. Hong Kong Branch, SPDB International Capital Ltd. and United Overseas Bank Ltd.
Coupon:	4% initially, resets on Nov. 7, 2022 and every five years after that at Treasuries plus 698.3 bps
Price:	Par
Call option:	Starting Nov. 7, 2022 and then on every subsequent semiannual distribution date at par
Pricing date:	Oct. 31
Settlement date:	Nov. 7
Ratings:	Moody’s: Baa1
	Fitch: A-
Distribution:	Regulation S

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