Published on 12/7/2023 in the Prospect News Emerging Markets Daily.
New Issue: China’s Rizhao prices RMB 492 million credit enhanced bonds in two parts due 2026
By William Gullotti
Buffalo, N.Y., Dec. 7 – Rizhao Chengtou (BVI) Co., Ltd. priced a two-part offering of credit enhanced bonds due 2026 at par totaling RMB 492 million, according to multiple listing documents on Thursday.
Both tranches of Regulation S bonds are guaranteed by Rizhao City Construction Investment Group Co., Ltd.
The RMB 300 million tranche, carrying a 4.7% coupon, includes the benefit of a keepwell deed provided by Rizhao Chengtou Group Co., Ltd. and is supported by an irrevocable standby letter of credit issued by Bank of Qingdao Co., Ltd., Rizhao Branch.
The RMB 192 million tranche has a 3.9% coupon, is supported by an irrevocable standby letter of credit issued by Postal Savings Bank of China Co., Ltd., Rizhao Branch, and does not include a matching keepwell deed.
The placing agents for the 4.7% bonds are Wilson Securities, Initial Capital Securities, Fosun International Securities, Citic Securities, CEB International, China Citic Bank International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, China Zheshang Bank Co., Ltd. (Hong Kong Branch), CNCB Capital, Industrial Bank Co., Ltd., Hong Kong Branch and Shenwan Hongyuan (H.K.).
Wilson Securities, Initial Capital Securities, Fosun International Securities, Citic Securities, CEB International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, China Zheshang Bank Co., Ltd. (Hong Kong Branch), CNCB Capital, Industrial Bank Co., Ltd., Hong Kong Branch and Shenwan Hongyuan (H.K.) are the placing agents for the 3.9% bonds.
Proceeds from the 3.9% tranche will be used for project construction, with proceeds from the 4.7% tranche used to replenish working capital.
Listings for both tranches are expected on the Chongwa (Macao) Exchange effective Dec. 7.
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.
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| Guarantor: | Rizhao City Construction Investment Group Co., Ltd.
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| Amount: | RMB 492 million
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| Issue: | Credit enhanced bonds
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| Maturity: | Dec. 6, 2026
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| Trustee: | China Construction Bank (Asia) Corp., Ltd.
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| Counsel to placing agents: | Fangda Partners (Hong Kong), Jingtian & Gongcheng (China), Ogier (BVI)
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| Call: | For taxation reasons at par plus interest
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| Change-of-control put: | At par plus interest
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| Issue date: | Dec. 6
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| Listing date: | Dec. 7
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| Distribution: | Regulation S
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| 4.7% bonds
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| Keepwell: | Rizhao Chengtou Group Co., Ltd.
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| LoC issuer: | Bank of Qingdao Co., Ltd., Rizhao Branch
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| Amount: | RMB 300 million
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| Placing agents: | Wilson Securities, Initial Capital Securities, Fosun International Securities, Citic Securities, CEB International, China Citic Bank International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, China Zheshang Bank Co., Ltd. (Hong Kong Branch), CNCB Capital, Industrial Bank Co., Ltd., Hong Kong Branch and Shenwan Hongyuan (H.K.)
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| Coupon: | 4.7%
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| Price: | Par
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| Yield: | 4.7%
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| Pricing date: | Nov. 29
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| ISIN: | HK0000968609
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| 3.9% bonds
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| LoC issuer: | Postal Savings Bank of China Co., Ltd.
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| Amount: | RMB 192 million
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| Placing agents: | Wilson Securities, Initial Capital Securities, Fosun International Securities, Citic Securities, CEB International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, China Zheshang Bank Co., Ltd. (Hong Kong Branch), CNCB Capital, Industrial Bank Co., Ltd., Hong Kong Branch and Shenwan Hongyuan (H.K.)
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| Coupon: | 3.9%
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| Price: | Par
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| Yield: | 3.9%
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| Pricing date: | Nov. 28
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| ISIN: | HK0000968641
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