Company News - 03 April 2017

AMTD completes US$500mm 3yr & 5yr bond offerings for Tewoo Group

On March 30, 2017, Tewoo Group Co., Ltd ( “Tewoo Group” or the “Company” ) successfully priced a Reg S US$500mm dual-tranche senior bond offering, comprised of US$300mm 3-year and US$200mn 5-year ( the “Transaction” ), with AMTD acting as the Joint Bookrunner and Joint Lead Manager. Following its US$300mm bond offering last December, the Transaction represents another overseas debt capital markets financing for Tewoo Group within 4 months, by which the Company has further expanded its presence in the global capital markets and broaden its investor base.

Tewoo Group is the largest state-owned material circulation enterprise in Tianjin and is the first one in Tianjin to enter the world’s top 500 enterprise list. Its business scope includes commodity trade, modern logistics, real estate development and financial services. Apart from a nationwide network, the Company also expands its global footprint by setting up 21 offices across the US, Germany, Japan, Singapore and Hong Kong, etc.

Issuer of the Transaction is Tewoo Group Finance No 3 Limited, a wholly owned SPV, with the Company providing direct offshore guarantee. Both the Company and the senior bonds are rated BBB- by Fitch and the bonds will be listed on the Singapore Stock Exchange (SGX).

Benefited from Tewoo Group’s strong financial and support from the local government, as well as its global footprint, coupled with top-class distribution capabilities of the syndicate banks including AMTD, the Transaction was well received by the international capital markets. The final orderbook amounted to over US$2.7bn or being over 5x oversubscribed as compared to its offering size of US$500mm. On the back of a high-quality orderbook, final pricing for the 3-year and 5-year bonds tightened by 25 bps and 10bps to T5+335bps and T10+375bps, respectively.

Once again, as the Joint Bookrunner and Joint Lead Manager in the Transaction, AMTD has demonstrated its excellent distribution capabilities and solid client base by contributing significant lead orders prior to the formal announcement of the Transaction. Other syndicate banks of the Transaction comprised of international and Chinese brokers and financial institutions including Barclays, China CITIC Bank International, Wing Lung Bank, Bank of China and Guotai Junan International.

The Transaction represents the 31st offshore fundraising transaction completed by AMTD over the past 12 months, and the 11th deal within the first quarter of the year, demonstrating AMTD’s leadership and influences in the international debt capital markets. Prior to the aforementioned transaction, AMTD has served multiple large Chinese enterprises and investment holdings companies in USD bond issuances, including 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, Fosun International (656.HK), one of the largest privately-owned enterprises in China, Yango Holdings, a leading privately-owned investment group in China and Yunnan Provincial Investment, the largest comprehensive investment holdings company in the Yunnan Province. In addition, AMTD has also assisted in a number of onshore and offshore developers’ overseas financing transactions, which include various Chinese leading property developers, namely Xinhu Zhongbao (600208.CH), China South City (1668.HK), Yuzhou Properties (1628.HK), Guangzhou R&F Properties (2777.HK), China Aoyuan Property Group (3883.HK) and Carnival Group (996.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.

About Tewoo Group

Tewoo Group is the largest state-owned material circulation enterprise in Tianjin. Its business scope includes commodity trade, modern logistics, real estate development, and financial services. The commodity trade business segment covers five major sections, including metals (ferrous metals, nonferrous metals), energy (coal, coke, fuel oil), minerals (iron ore, nonferrous ore, coal ore), chemical, automotive &electromechanical. Apart from a nationwide network, Tewoo has 21 offices across the US, Germany, Japan, Singapore and Hong Kong, etc. As the largest commodity trader in China, Tewoo Group has strategic significance for Tianjin.