Company News - 27 April 2017

AMTD completes US$600mm 5yr senior bond offering for Fosun Int'l

On April 21, 2017, Fosun International (“Fosun” or the “Company”, 656.HK) successfully priced a US$600mm re-opening of its Regulation S 5-year senior bond offering (the “Transaction”), with AMTD acting as the Joint Bookrunner and Joint Lead Manager. Following its original US$800mm issue in March, AMTD has once again assisted Fosun to tap the offshore USD bond market (with AMTD acting as the Joint Bookrunner and Joint Lead Manager) in one month’s time by taking advantage of constructive market conditions and strong secondary market performance of the bonds.

Fosun is one of the largest privately owned enterprises in China, with diversified business lines across healthcare, property, consumer services, strategic investment, and other multi-service areas. Including Fosun International, AMTD has successfully assisted a number of large-scale Chinese enterprises tapping the international capital markets through the issuance of USD bonds over the past 12 months, these include China Minsheng Investment Group, China Huarong (2799.HK), HNA Group, Jiuding Investment, Tewoo Group and Yunnan Provincial Investment etc.

Issuer of the Transaction is Fortune Star (BVI) Limited, a wholly owned SPV, with the Company providing direct guarantee, and the bonds will be listed on the Singapore Stock Exchange. The upsized amount will be fungible with the existing 5.25% senior note due 2022 after 40 days, forming a single series of US$1.4bn. Fosun is rated Ba3/BB (Moody’s/S&P), while issue rating is BB (S&P).

Benefited from Fosun’s solid credit profile including its prudent financial management, comprehensive overseas strategic layout, proactive and innovative management model and effective corporate governance practice, coupled with strong distribution capabilities of the syndicate banks including AMTD, the Transaction was extremely well-received by international capital markets, following its highly successful bond issuance in mid-March. The orderbook recorded over US$1.5bn orders from more than 110 institutional investors, of which 93% are from Asia and 75% are from hedge funds, representing around 3x oversubscribed compared to its offering size of US$600mm. The final pricing was tightened to 4.95% from the initial pricing guidance of 5.125%.

AMTD acted as the Joint Bookrunner and Joint Lead Manager of the Transaction and assisted the issuer to tap the dollar bond market, with one of the largest anchor orders, leading to the successful outcome of the Transaction. At the end, AMTD was awarded the second largest single allocation. Other syndicate banks in the Transaction included Credit Suisse, Fosun Hani Securities, Haitong International and Credit Agricole CIB.

The Transaction represents the 34th offshore bond offering completed by AMTD in the past 12 months, as well as the 14th deal this year, demonstrating AMTD’s leadership and influences in the international debt capital markets. In particular, AMTD has maintained a long-term relationship with various bond issuers and has repeatedly assisted them to tap the most constructive window in the international debt capital markets. Prior to this transaction, AMTD has led USD bond issuances for Chinese and Hong Kong-based enterprises repeatedly, including China Minsheng Investment Group, China Huarong Asset Management, HNA Group, Ronshine China (3301.HK), Regal Hotels (78.HK) and Emperor International (163.HK).

About Fosun International

Fosun was founded in 1992 in Shanghai. FosunInternational (656.HK) was listed on the Main Board of the Hong Kong Stock Exchange on July 16, 2007. Fosun is dedicated to making a major stride towards becoming a world-class investment group underpinned by the twin drivers of "insurance-oriented comprehensive financial capability" and "global industrial integration capability taking roots in China". Fosun persistently focused on B2F (Business to Family) in 2015 and invested in wealth, health and happiness segments.

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