Company News - 14 December 2016

AMTD successfully completes L.R. Capital Group’s US$150mm 3yr senior bond offering

On 13th December 2016, L.R. Capital Group (“L.R. Capital” or the “Company”) announced the successful issue of a Reg S 3-year 5% US$150mm bond (the “Transaction”) through the first drawn down under its newly-established US$500mm MTN Programme. The bond is listed on the Singapore Exchange (SGX). Not only was this issue the first USD bond offered by L.R. Capital in Asia, but also one of the few public offerings by family offices in the global markets. AMTD acted as lead arranger for the set-up of the Company’s MTN Programme, as well as the Joint Global Coordinator, Joint Lead Bookrunner and Joint Lead Manager in this transaction. AMTD remains very active in the international debt capital markets and has successfully completed 20 transactions so far this year.

L.R. Capital Group is a global investment company and a multi-family office, with a network across Asia, Europe and North America. The Company acts as a linkage for resources and capital by connecting China and the international capital markets, focusing on a wide range of sectors in both the developed and developing economies, including financial services, new energy, technology and healthcare.

Acting as lead arranger for the set-up of the Company’s MTN Program, as well as the Joint Global Coordinator, Joint Lead Bookrunner and Joint Lead Manager in this transaction, the excellent distribution and execution ability of AMTD significantly contributed to the successful outcome of the Transaction, by bringing in the largest anchor investor demand. Other syndicate banks in the Transaction were UBS AG Hong Kong Branch, GF Securities (Hong Kong) Brokerage Limited, China Everbright Securities (HK) Limited, China Merchants Securities (HK) Co., Ltd., Sun Hung Kai Investment Services Limited, Zhongtai International Securities Limited, Huarong International Securities Limited, ABCI Capital Limited, Guotai Junan Securities (Hong Kong) Limited, Ping An of China Securities (Hong Kong) Company Limited, Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch, Winsome Capital Limited and Bali Securities Co. Limited, etc.

Ahead of the Federal Reserve (FOMC) meeting, of which a rate hike of 25 bps has been widely expected by the markets, along with the rallying U.S. Treasury yields, volatility and uncertainties remain as a cause of grave concern in global capital markets. Despite all the unfavoured market conditions, on the back of the strong credit quality of the Company, under the lead of AMTD, the Transaction was met with overwhelming demand by investors. AMTD efficiently arranged non-deal roadshows in both Hong Kong and Singapore for the Company, especially targeting the Asia investors before the deal announcement, which helped to secure a lot of anchor orders. The Transaction was oversubscribed by 2 times, allowing the Company successfully priced the Transaction at 5% versus the initial pricing guidance at 5.25% area.

The Transaction represents the 20th bond offering successfully completed by AMTD this year. Also, not only was this issue the first USD bond offered by L.R. Capital in Asia, but also one of the few public offerings by family offices in the global markets. The issuer of this Transaction was one of the L.R. Group’s investment platforms in Asia. Despite the unrated nature, on the back of the Company’s credit strength, the strong background of its shareholders, sound financial foundation and a reputable branding, the Transaction was completed with less than 2 full fiscal years of financials, of which is indeed a rare case in the market. Some of the previous capital markets transactions completed by AMTD include: the US$500mm 3-year bond offering of China Minsheng Investment Group, the largest privately-owned investment company in China; US$3bn bond offering for China Huarong, one of the China's four major asset management companies; the US$400mm global bond offering of Sirius International Insurance Group, a world-renowned insurance and reinsurance company; the US$500mm bond offering for Zhongrong International Trust, one of the largest trust companies in China; the US$362mm exchange offer and new 5-year bond offering for Sun Hung Kai & Co (86.HK), the largest listed non-bank financial institutions based in Hong Kong; the US$350mm bond offering for Regal Hotels (78.HK), one of the largest hotel operators in Hong Kong; as well as the US$300mm senior notes offering for Far East Consortium International Ltd. (35.HK), a diversified Hong Kong-listed property operator and developer founded by renowned businessman Mr. Deacon Chiu.

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