Company News - 20 March 2018

AMTD completes US$250mm 3yr bond offering for China South City

On 18 January 2018, China South City Holdings Ltd. (1668.HK, the “Company”) successfully priced its Reg-S US$250mm 3-year senior bond offering (the “Transaction” or the “Bond”), with AMTD acting as Joint Bookrunner and Joint Lead Manager. The Transaction represented the 3rd consecutive mandate from the Company. Following the 2 senior bond offerings in March and November 2017 for which AMTD also acted as Joint Bookrunner and Joint Lead Manager. AMTD has once again assisted the Company with another successful transaction, demonstrating AMTD’s leadership in the international debt capital markets and prominent execution capabilities to tap the offshore USD bond market, as well as ability to retain business relationships for repeat business.

The Transaction was directly issued by the Company with guarantees and share pledges from its certain non-PRC subsidiaries. The Bond will be listed on the Singapore Stock Exchange (SGX) while the proceeds will be used for refinancing the Company’s existing indebtedness on construction and development and general corporate purpose. The Company is rated B / B (S&P / Fitch), while the issue ratings are B- / B (S&P / Fitch). Benefiting from the Company’s unique flexible business model and solid credit profile, the Transaction was well-received by international capital markets. During the bookbuilding process, the final orderbook amounted to over US$800mm representing over 3x oversubscription to its offering size, allowing the Company to tighten the final yield to 7.625%. The Transaction attracted many institutional investors including asset managers, banks and PBs, which demonstrated the high recognition of the Company’s credit profile and its prudent business development by the international capital market. Similar to most of the transactions led by AMTD, AMTD once again contributed one of the largest price insensitivity lead orders and allocation in the Transaction.

The Transaction represents the 59th offshore bond offering completed by AMTD since 2016 and the 2nd deal this year, demonstrating AMTD’s credentials and strong execution capability in the international debt capital markets. Other than China South City, AMTD has successfully assisted multiple Chinese and Hong Kong property developers to access the international capital markets since 2016. 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. In addition to working with China South City, AMTD has repeatedly served multiple Chinese and Hong Kong property developers for their USD bond issuances, including Tahoe Group (000732.SZ), Yango Group (000671.SZ), China Aoyuan Property (3883.HK), China Logistics Property Holdings (1589.HK), Oceanwide Holdings (000046.SZ), Logan Property (3380.HK), Yida China (3639.HK), Fujian Yango Holdings, Yuzhou Properties (1628.HK), Guangzhou R&F (2777.HK), Ronshine China (3301.HK), Xihu Zhongbao ( 600208.CH), Jiayuan International (2768.HK), Regal Hotels (78.HK) and Far East Consortium International (35.HK) etc.

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