By William Gullotti
Buffalo, N.Y., Jan. 19 – China’s Shaoxing Paojiang Venture Construction Development Co., Ltd. priced RMB 608 million of credit enhanced bonds due 2026 in two parts, according to listing notices and offering circulars on Thursday.
The first tranche, priced at par, totals RMB 508 million with a 3.95% coupon and is supported by an irrevocable standby letter of credit issued by Bank of Shanghai Co., Ltd., Hangzhou Branch.
The second tranche is for RMB 100 million of 4.3% bonds, also priced at par, and is supported by an irrevocable standby letter of credit issued by Bank of Shaoxing Co., Ltd.
The joint global coordinators, joint lead managers and joint bookrunners for both tranches of Regulation S bonds are China International Capital Corp., China Securities International, Guosen Securities (HK) and Sinolink Securities (HK).
Neither tranche is rated, although the issuer has a rating of “AA+” with a stable outlook by China’s Dagong Global.
Proceeds from the tandem offering will be used for project financing and supplementing working capital.
Listings for each tranche are expected on the Chongwa (Macao) Exchange effective Jan. 19.
The issuer is responsible for the investment and construction of major urban infrastructure projects in Shaoxing Paojiang Development Zone.
| Issuer: | Shaoxing Paojiang Venture Construction Development Co., Ltd.
|
| Amount: | RMB 608 million
|
| Issue: | Credit enhanced bonds
|
| Maturity: | Jan. 18, 2026
|
| Bookrunners: | China International Capital Corp., China Securities International, Guosen Securities (HK) and Sinolink Securities (HK)
|
| Trustee: | CMB Wing Lung (Trustee) Ltd.
|
| Counsel to issuer: | Freshfields Bruckhaus Deringer (England), Zhejiang Z&J Law Firm (China)
|
| Counsel to underwriters: | King & Wood Mallesons (England), Commerce & Finance Law Offices (China)
|
| Call option: | For taxation reasons at par plus interest
|
| Change of control: | At par plus interest
|
| Pricing date: | Jan. 13
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| Issue date: | Jan. 18
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| Listing date: | Jan. 19
|
| Distribution: | Regulation S
|
|
|
| 3.95% bonds
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| LoC issuer: | Bank of Shanghai Co., Ltd., Hangzhou Branch
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| Amount: | RMB 508 million
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| Coupon: | 3.95%
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| Price: | Par
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| Yield: | 3.95%
|
|
|
| 4.3% bonds
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| LoC issuer: | Bank of Shaoxing Co., Ltd.
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| Amount: | RMB 100 million
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| Coupon: | 4.3%
|
| Price: | Par
|
| Yield: | 4.3%
|
|
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