Company News - 05/10/2020

AMTD completes Zensun US$200m Senior Bond Offering

Zensun Group Limited (“Zensun” or the “Company”) successfully priced its US$200m 13.00% 2.5 year senior fixed rate bond offering (the “Transaction”). AMTD acted as a Joint Bookrunner and Joint Lead Manager on the Transaction.

Zensun successfully completed the transaction achieving its target size and yield despite extremely volatile market conditions with US Treasury yields trading at near historical lows following an emergency 50 bps rate cut by the Fed and global equity markets slump due to heightened market uncertainties relating to the coronavirus.

After securing significant anchor orders, Zensun decided on an intra-day bookbuilding, announcing initial price guidance at 13.375% area for a new 2.5-year issue. The security of the anchor orders in place allowed Zensun to tighten final price guidance to 13.00% and price the full target size of USD200m. Importantly, the new issue was priced substantially inside where the secondary yield of its existing 2021 bonds, helping the Company to reprice its secondary yield curve.

This is the second transaction completed by AMTD for Zensun after its US$200m 7.500% 353-day private placement in Feb 2018. AMTD has executed both unrated private placement and rated public bond offerings for the Company, demonstrating AMTD's strong commitment in assisting its clients completing debt capital markets transactions under all market conditions.

Founded in Zhengzhou in 1995, the Company has grown into a renowned multinational group with integrated real estate businesses. Now with the Company’s footprint across Henan Province, Beijing, Hubei, Shandong and Hainan Provinces, Hong Kong, as well as Japan, Singapore and other countries and regions, the Company is the largest residential property developer in Zhengzhou in terms of both contracted sales and GFA sold from 2012 to 2018, according to China Real Estate Association and China Real Estate Appraisal, and has established a strong presence in Henan Province. The Company ranked the 49th among “China Top 500 Real Estate Developers” in 2018, according to the Top 500 China Real Estate Developers Research Report published by CREA and CRA in March 2019.