Company News - 20 February 2017

AMTD completes US$225mm bond upsizing for Ronshine China

On 14 February, Ronshine China Holdings Limited (3301.HK, “Ronshine China” or “the Company”), successfully priced a US$225mm re-opening of its Regulation S 3-year senior bond offering (“the Transaction”), with AMTD acting as the Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager. The issuer is Ronshine China Holdings, with its offshore subsidiaries providing guarantees, and the bonds will be listed on the Singapore Stock Exchange. The Transaction is to be consolidated and formed a single series with the US$175mm 3-year USD bond issued in December 2016, upsizing the total outstanding amount to US$400mm. Ronshine China is rated B+/B2/B (Fitch/Moody’s/S&P), while the issue standalone rating is B+/B3/B- (Fitch/ Moody’s/S&P). Following its debut issuance in the international bond market last December, Ronshine China once again accessed the offshore USD bond market in less than three months’ time by taking advantage of constructive market conditions and on the back of reverse enquiry interest.

The Transaction represents the 10th offshore fundraising transaction in the property sector completed by AMTD over the past 12 months, demonstrating AMTD’s leadership and influences in high-yield property bond market. Apart from Ronshine China’s debut bond offering in December last year, AMTD has assisted in a number of onshore and offshore developers’ overseas financing transactions, which include various Chinese leading property developers, namely Yuzhou Properties (1628.HK), Guangzhou R&F Properties (2777.HK), China Aoyuan Property Group (3883.HK), Carnival Group (996.HK) and Jiayuan International (2768.HK); as well as Regal Hotels (78.HK), one of the largest hotel operators in Hong Kong; Emperor International Holdings Limited (163.HK), a famous Hong Kong-listed real estate company; Far East Consortium International Limited (35.HK), a diversified Hong Kong-listed property operator and developer founded by renowned businessman Mr. Deacon Chiu.

Benefitted from the Company’s strong credit profile, flexible business model, excellent sales execution capabilities, robust growth rate in both contracted sales and revenue, and on the back of precise market timing and strong distribution capabilities of AMTD and other syndicate banks, the Transaction drew significant investor interest with final orderbook amounting to over US$450mm or nearly 2x oversubscription. As a result, the Transaction was priced at 98.258 or 8% reoffer yield, tightened from the initial pricing guidance of 8.125% area.

AMTD acted as the Joint Global Coordinator, Bookrunner and Lead Manager on both Ronshine's debut issuance in December 2016 and this Transaction, assisting the Company in the successful completion of the two transactions and effectively manage its funding cost. AMTD once again contributed one of the largest anchor orders and final allocation. Other syndicate banks in the deal include UBS, Haitong International, Guotai Junan International, SPDB International, Orient Securities (Hong Kong) and China Industrial Securities International.

The Transaction represents the fifth bond offering successfully completed by AMTD in one and a half months since the beginning of 2017. In the past 12 months, AMTD has completed 25 bond transactions for various companies, serving leading Chinese and Hong Kong property developers; large enterprises namely China Huarong Asset Management (2799.HK) , one of China's four leading financial asset management companies, China Minsheng Investment Group, the largest privately-owned investment company in China, Yunnan Provincial Investment, the largest comprehensive holding company in the Yunnan Province; onshore and offshore financial institutions such as Sirius International Insurance Group, a world-renowned insurance and reinsurance group and Zhongrong International Trust, one of the largest trust companies in China.

About Ronshine China Holdings

Founded in 2003, Ronshine China Holdings is a mid to high-end residential property developer based in Fujian province of China. Through years of cultivation and excellent sales execution, Ronshine China has realized steady improvement in business performance. In January 2016, the company was successfully listed on the Hong Kong Stock Exchange.

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