By William Gullotti
Buffalo, N.Y., Feb. 5 – China’s Dongying Oil City International Co., Ltd. sold RMB 286 million of 4.6% credit enhanced bonds due 2027 at par, according to a listing notice and an offering circular on Tuesday.
The bonds have the benefit of a keepwell deed provided by indirect parent company Dongying District Municipal Holding Group Co., Ltd. and are further supported by an irrevocable standby letter of credit issued by Bank of Qingdao Co., Ltd., Dongying Branch.
Harmonia Capital, China Galaxy International, China Zheshang Bank Co., Ltd. (Hong Kong Branch), JA Securities and Shenwan Hongyuan (H.K.) are the joint lead managers and joint bookrunners for the Regulation S offering, with Harmonia also serving as sole global coordinator.
Proceeds will be used for project construction and replenishing working capital.
Listing for the bonds is expected on the Chongwa (Macao) Exchange effective Feb. 6.
The issuer was incorporated in the British Virgin Islands on Nov. 28, 2023 and is a wholly owned, indirect subsidiary of the keepwell provider. The keepwell provider is based and operates in Dongying City of China’s Shandong Province, providing municipal services that include heat supply, leasing, municipal sanitation, street lamp maintenance and engineering construction.
| Issuer: | Dongying Oil City International Co., Ltd.
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| Keepwell: | Dongying District Municipal Holding Group Co., Ltd.
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| LoC issuer: | Bank of Qingdao Co., Ltd., Dongying Branch
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| Amount: | RMB 286 million
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| Issue: | Credit enhanced bonds
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| Maturity: | Feb. 5, 2027
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| Bookrunners: | Harmonia Capital, China Galaxy International, China Zheshang Bank Co., Ltd. (Hong Kong Branch), JA Securities and Shenwan Hongyuan (H.K.)
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| Trustee: | Bank of New York Mellon, London Branch
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| Counsel to issuer: | Rowdget W. Young & Co. (England, Hong Kong), Walkers (Hong Kong) (BVI)
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| Counsel to underwriters: | Tian Yuan Law Firm LLP (England, Hong Kong), Hiways Law Firm (China)
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| Coupon: | 4.6%
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| Price: | Par
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| Yield: | 4.6%
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| Call: | For taxation reasons at par
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| Change of control: | At par
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| Pricing date: | Jan. 31
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| Issue date: | Feb. 5
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| Listing date: | Feb. 6
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| Distribution: | Regulation S
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| ISIN: | XS2758728492
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