New Issue: Xianning Urban Development sells $70.5 million 4½% credit enhanced bonds due 2025

By William Gullotti

Buffalo, N.Y., June 2 – China’s Xianning Urban Development (Group) Co., Ltd. announced it priced $70.5 million 4½% credit enhanced bonds due 2025 at par, according to a listing notice with an appended offering circular on Thursday.

The Regulation S bonds are supported by an irrevocable standby letter of credit issued by China Bohai Bank Co., Ltd., Wuhan Branch. The bank is also the onshore coordinator for the offering.

The issuer may redeem the notes early for taxation reasons at par plus interest. Bondholders will also be able to put the notes at par plus interest if a change of control occurs.

Tensant Securities is the global coordinator for the offering, also serving as a joint lead manager and joint bookrunner with DBS Bank Ltd., CNCB Capital, Huatai International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, Guoyuan Securities (Hong Kong), China Galaxy International, Haitong International, Central Wealth Securities Investment Ltd., China International Capital Corp. and Guotai Junan International.

Proceeds from the offering will be used to replenish working capital.

Listings for the bonds is expected on the Hong Kong Exchange effective June 2.

Based in Xianning, China, the issuer is the largest investment, financing and infrastructure construction platform under the municipal government’s control.

Issuer:	Xianning Urban Development (Group) Co., Ltd.
LoC issuer:	China Bohai Bank Co., Ltd., Wuhan Branch
Amount:	$70.5 million
Issue:	Credit enhanced bonds
Maturity:	June 1, 2025
Bookrunners:	Tensant Securities, DBS Bank Ltd., CNCB Capital, Huatai International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, Guoyuan Securities (Hong Kong), China Galaxy International, Haitong International, Central Wealth Securities Investment Ltd., China International Capital Corp. and Guotai Junan International
Onshore coordinator:	China Bohai Bank Co., Ltd., Wuhan Branch
Trustee:	China Construction Bank (Asia) Corp. Ltd.
Counsel to issuer:	Morrison & Foerster (England), Deheng Law Offices (China)
Counsel to underwriters:	Linklaters (England), GF Law Firm (China)
Coupon:	4½%
Price:	Par
Yield:	4½%
Call:	For taxation reasons at par plus interest
Change of control:	At par plus interest
Pricing date:	May 25
Issue date:	June 1
Listing date:	June 2
Distribution:	Regulation S
ISIN:	XS2473680788

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