Published on 12/28/2023 in the Prospect News Emerging Markets Daily.
New Issue: Longchuan prices RMB 350 million 3¾% credit enhanced bonds due 2026
By William Gullotti
Buffalo, N.Y., Dec. 28 – Longchuan Overseas Investment Co., Ltd. sold RMB 350 million of 3¾% credit enhanced guaranteed bonds due 2026 at par, according to a listing notice with an appended offering circular on Thursday.
The bonds will be guaranteed by Yangzhou Jianghuai Construction Development Co., Ltd. and further supported by an irrevocable letter of credit issued by Bank of Nanjing, Yangzhou Branch.
Guotai Junan International, Haitong International, Citic Securities, China Securities International, Industrial Bank Co., Ltd., Hong Kong Branch, CEB International, China Industrial Securities International, CNCB Capital, Huatai International, Zhongtai International and Bowlea Securities are the joint lead managers and joint bookrunners, with Guotai Junan, Haitong and Citic also acting as joint global coordinators.
Proceeds will be used for project construction and to replenish working capital.
Listing for the Regulation S bonds is expected on the Hong Kong Exchange effective Dec. 28.
The issuer is a special purpose entity and a wholly owned subsidiary of the guarantor. The guarantor is the largest state-owned assets management and infrastructure construction platform in Jiangdu District of China’s Jiangsu Province.
| Issuer: | Longchuan Overseas Investment Co., Ltd.
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| Guarantor: | Yangzhou Jianghuai Construction Development Co., Ltd.
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| LoC issuer: | Bank of Nanjing, Yangzhou Branch
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| Amount: | RMB 350 million
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| Issue: | Credit enhanced guaranteed bonds
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| Maturity: | Dec. 27, 2026
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| Bookrunners: | Guotai Junan International, Haitong International, Citic Securities, China Securities International, Industrial Bank Co., Ltd., Hong Kong Branch, CEB International, China Industrial Securities International, CNCB Capital, Huatai International, Zhongtai International and Bowlea Securities
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| Trustee: | China Construction Bank (Asia) Corp., Ltd.
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| Counsel to issuer: | Jun He Law Offices (England), Beijing DeHeng Law Offices (China), Ogier (BVI)
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| Counsel to underwriters: | Deacons (England), Jingtian & Gongcheng (China)
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| Coupon: | 3¾%
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| Price: | Par
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| Yield: | 3¾%
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| Call: | For taxation reason at par
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| Change-of-control put: | At par
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| Pricing date: | Dec. 18
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| Issue date: | Dec. 27
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| Listing date: | Dec. 28
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| Distribution: | Regulation S
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| ISIN: | HK0000963691
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