New Issue: China’s Rizhao prices ¥5.66 billion 2.3% credit enhanced bonds due 2026 at par

By William Gullotti

Buffalo, N.Y., Sept. 5 – Rizhao Chengtou (BVI) Co., Ltd. priced ¥5.66 billion 2.3% credit enhanced bonds due 2026 at par, according to a listing notice and an offering circular on Tuesday.

The Regulation S bonds are guaranteed by Rizhao City Construction Investment Group Co., Ltd., including the benefit of a keepwell deed provided by Rizhao Chengtou Group Co., Ltd. They are further supported by an irrevocable standby letter of credit issued by Qilu Bank Co., Ltd.

The placement agents are Wilson Securities, Initial Capital Securities, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Industrial Bank Co., Ltd., Hong Kong Branch, Fosun International Securities, CEB International, Shenwan Hongyuan (H.K.) and Zhongtai International.

Proceeds from the offering will be used for project construction.

Listing for the bonds is expected on the Chongwa (Macao) Exchange effective Sept. 5.

The issuer is a wholly owned, BVI-incorporated subsidiary of Rizhao Chengtou International Investment Co., Ltd., a wholly owned, Hong Kong-incorporated subsidiary of the guarantor. The guarantor is an infrastructure construction and investment entity. The keepwell provider owns 90% of the guarantor and is a property/land developer based in Rizhao of China’s Shandong Province.

Issuer:	Rizhao Chengtou (BVI) Co., Ltd.
Guarantor:	Rizhao City Construction Investment Group Co., Ltd.
Keepwell:	Rizhao Chengtou Group Co., Ltd.
LoC issuer:	Qilu Bank Co., Ltd.
Issue:	Credit enhanced bonds
Amount:	¥5.66 billion
Maturity:	Sept. 4, 2026
Placing agents:	Wilson Securities, Initial Capital Securities, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Industrial Bank Co., Ltd., Hong Kong Branch, Fosun International Securities, CEB International, Shenwan Hongyuan (H.K.) and Zhongtai International
Trustee:	China Construction Bank (Asia) Corp., Ltd.
Counsel to placement agents:	Fangda Partners (Hong Kong), Jingtian & Gongcheng (China), Ogier (BVI)
Coupon:	2.3%
Price:	Par
Yield:	2.3%
Call:	For taxation reasons at par plus interest
Change-of-control put:	At par plus interest
Pricing date:	Aug. 30
Issue date:	Sept. 4
Listing date:	Sept. 5
Distribution:	Regulation S
ISIN:	XS2673420753

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