Published on 9/25/2020 in the Prospect News Emerging Markets Daily.
New Issue: China Huarong Asset Management prices $1.2 billion of guaranteed notes in three parts
By Rebecca Melvin
New York, Sept. 25 – China Huarong Asset Management Co., Ltd. priced $1.2 billion in three tranches of notes, including notes due 2023 and 2030 (expected ratings: Baa1//A) and perpetual securities (expected rating: Baa1/A/A), which are all being issued under the company’s newly listed $5.9 billion medium-term note program.
Notes under the program will be issued through Huarong Finance 2019 Co., Ltd. and guaranteed by China Huarong International Holdings Ltd., according to a notice.
The $600 million tranche of 2 1/8% notes due Sept. 30, 2023 priced at 99.757, and the $350 million tranche of 3 5/8% notes due 2030 priced at 99.659. The $250 million tranche of perpetual securities priced at par with an initial distribution rate of 4¼%.
The perpetual securities are non-callable until Sept. 30, 2025, and have a rate reset date every five years.
The joint lead managers of the notes are ANZ Banking Group Ltd., Bank of China Ltd., Bank of Communications Co., Ltd. Hong Kong Branch, China Minsheng Banking Corp. Ltd., Hong Kong Branch, DBS Bank Ltd., Goldman Sachs (Asia) LLC., Guotai Junan Securities (Hong Kong) Ltd., Huarong International Securities Ltd., Mizuho Securities Asia Ltd., Standard Chartered Bank, ABCI Capital Ltd., CCB International Capital Ltd., China Citic Bank International Ltd., China Everbright Bank Co., Ltd., Hong Kong Branch, China International Capital Corp. Hong Kong Securities Ltd., China Securities (International) Corporate Finance Co. Ltd., Citigroup Global Markets Ltd., CMB International Capital Ltd., CMB Wing Lung Bank Ltd., CMBC Securities Co. Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Industrial Bank Co., Ltd. Hong Kong Branch, Merrill Lynch (Asia Pacific) Ltd., Nanyang Commercial Bank, Ltd., Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch, SPDB International Capital Ltd. and Zhongtai International Securities Ltd.
The proceeds from the issuance will be used for repaying the guarantor’s outstanding debts when due.
Application is being made to list the notes on the Hong Kong exchange.
The state-owned asset manager is based in Beijing.
| Issuer: | Huarong Finance 2019 Co., Ltd.
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| Guarantor: | China Huarong International Holdings Ltd.
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| Issue: | Guaranteed notes
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| Amount: | $950 million
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| Lead managers: | ANZ Banking Group Ltd., Bank of China Ltd., Bank of Communications Co., Ltd. Hong Kong Branch, China Minsheng Banking Corp. Ltd., Hong Kong Branch, DBS Bank Ltd., Goldman Sachs (Asia) LLC., Guotai Junan Securities (Hong Kong) Ltd., Huarong International Securities Ltd., Mizuho Securities Asia Ltd., Standard Chartered Bank, ABCI Capital Ltd., CCB International Capital Ltd., China Citic Bank International Ltd., China Everbright Bank Co., Ltd., Hong Kong Branch, China International Capital Corp. Hong Kong Securities Ltd., China Securities (International) Corporate Finance Co. Ltd., Citigroup Global Markets Ltd., CMB International Capital Ltd., CMB Wing Lung Bank Ltd., CMBC Securities Co. Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Industrial Bank Co., Ltd. Hong Kong Branch, Merrill Lynch (Asia Pacific) Ltd., Nanyang Commercial Bank, Ltd., Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch, SPDB International Capital Ltd. and Zhongtai International Securities Ltd.
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| Pricing date: | Sept. 24
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| Settlement date: | Sept. 30
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| Distribution: | Regulation S
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| 2023 notes
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| Amount: | $600 million
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| Maturity: | Sept. 30, 2023
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| Coupon: | 2 1/8%
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| Price: | 99.757
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| Ratings: | Moody’s: Baa1
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| Fitch: A
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| 2030 notes
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| Amount: | $350 million
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| Maturity: | Sept. 30, 2030
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| Coupon: | 3 5/8%
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| Price: | 99.659
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| Ratings: | Moody’s: Baa1
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| Fitch: A
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| Perpetual notes
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| Amount: | $250 million
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| Maturity: | Perpetual
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| Initial rate: | 4¼%, resettable every five years
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| Price: | Par
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| First call: | Sept. 30, 2025
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| Ratings: | Moody’s: Baa1
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| S&P: A
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| Fitch: A
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