Company News - 01 November 2017

AMTD completes debut US$500mm bond offering for Zhongrong Xinda

On 19 October, Zhongrong Xinda Group Co., Ltd., (“Zhongrong Xinda” or “the Company”) successfully priced its debut Reg S US$500mm 3-year senior bond offering (the “Transaction”), with AMTD acting as the Joint Bookrunner and Joint Lead Manager. The Transaction represents the inaugural offshore bond offering for Zhongrong Xinda, demonstrating AMTD’s leadership and influences in assisting Chinese enterprises to tap the international debt capital markets.

Issuer of the Transaction is Zhongrong International Resources Co., Ltd., a wholly owned SPV, with the Company and its offshore subsidiary providing guarantee. The Company is rated BB- stable and BB Stable by S&P and Fitch respectively, while the issue rating is expected to be BB- by S&P and BB by Fitch. The bonds will be listed on the Singapore Stock Exchange (SGX).

AMTD acted as the Joint Bookrunner and Joint Lead Manager of the Transaction. Benefiting from the comprehensive strategies and solid credit profile of Zhongrong Xinda, the Transaction was well-received by international capital markets and successfully outperformed other bond offerings announced on the same day. The final orderbook amounted to over US$1.7bn or over 3 times oversubscribed. Final pricing was set at 7.25% vs. the initial price guidance of 7.375% area. AMTD once again provided sizable price insensitive early anchor demand prior to the official deal announcement in order to ensure a successful execution for the Company.

AMTD has completed 53 and 33 offshore bond offerings since 2016 and year-to-date respectively, demonstrating AMTD’s influence and strong execution capability 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, Tewoo Group, a Fortune 500 company, 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.

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