Company News - 22 March 2018

AMTD completes US$450mm senior perpectual bond for Tewoo Group. Senior Management from Tewoo visits AMTD for further strategic partnerhsip and coordination

On March 8, 2018, Tewoo Group Co., Ltd (“Tewoo Group” or the “Company”), a Fortune 150 company, successfully priced a Reg S US$450mm senior perpetual non-call 3-year bond offering (the “Transaction” ), with AMTD acting as the Joint Bookrunner and Joint Lead Manager. Following its US$500mm 3-year and 5-year dual-tranche bond offerings and US$500mm 359-day short-term senior bond offering in March and October 2017, AMTD has once again played a leading role in assisting the Company to tap the best issuance window and complete the debut perpetual bond offering, further expanding the Company’s presence in the offshore capital markets and enhancing its brand awareness globally, while also enhancing its capital structure.

Recently, senior management representatives of Tewoo Group, visited the Hong Kong headquarters of AMTD Group. The team met with Mr. Calvin Choi, Chairman and President of AMTD Group and senior management of the Group and identified areas of collaborations between both parties on a long-term basis.

Tewoo Group is the largest state-owned material circulation enterprise in Tianjin and is the first company in Tianjin to enter the world’s top 150 enterprise list. Its business scope includes commodity trade, modern logistics, real estate development and financial services. Issuer of the Transaction is Tewoo Group No. 5 Limited, a wholly owned SPV, with the Company providing guarantee. The Company is rated BBB by Fitch, while the issue rating is BBB- by Fitch and the bonds will be listed on the Singapore Stock Exchange (SGX).

Benefiting from Tewoo Group’s strong financial and support from the local government, as well as its global footprint, the Transaction was well received by the international capital markets. On the back of a final orderbook which amounted to over US$1.3bn, final pricing was tightened to 5.8% from 6% initial pricing guidance. AMTD once again provided price-insensitive lead anchor orders and was awarded one of the largest allocations, outperformed other joint bookrunners in the deal.

Following the issuance of Tewoo’s US$500mm offshore bond offering and US$500mm 359-day short-term senior bond offering in March and October 2017, AMTD has once again assisted the Company to complete another well-received US$450mm bond offering. This Transaction presents the third international USD bond for which AMTD acted as joint bookrunner. The successful Transaction is an excellent illustration of how AMTD connect clients to international capital markets, as well as grow together with our clients by providing total solutions to them and establish a win-win relationship.

AMTD has maintained a long-term relationship with Tewoo. On 14 March, 2018, Mr. Liu Lu, Deputy General Manager of Tewoo visited the Hong Kong headquarters of AMTD Group, together with Mr. Qiang Jun, Chairman of Tianjin Products & Energy Resources Development Co., Ltd; Ms. Li Ling, Vice General Manager of Tewoo Group (HK) Ltd and Mr. Song Ke, Project Manager of Tewoo General (Tianjin) International Trade Co., Ltd. The team has engaged in discussion with Mr. Calvin Choi, Chairman & President of AMTD Group on the areas of potential collaboration between AMTD Group and Tewoo going forward. Senior management of AMTD Group, include Mr. Wayne Liu, President Special Assistant;Ms. Angie Lin, Head of Asset Management; Ms. Emily Shi, Head of Capital Markets & Advisory; Mr. William Fung, Managing Director of Chief Investment Office and Head of Debt Capital Market and Distribution; Ms. April He, Executive Director of President Office, as well as Ms. Hannah Liu, Senior Consultant of Corporate Insurance Brokerage & Risk Solutions have attended the meeting.

Mr. Calvin Choi (right), Chairman & President of AMTD Group hoped that AMTD can collaborate with Tewoo Group in the future.

Mr. Calvin Choi, Chairman & President of AMTD Group said, AMTD is committed to maintain long-term relationship with clients and act as their connection to global capital markets. Over the past one year, AMTD is glad to assist Tewoo to complete three overseas bond offerings. In January 2018, AMTD signed a collaboration agreement with Tianjin Municipal Government and he hopes that in the future, AMTD can join hand with Tianjin municipal city and Tewoo, to collaborate and develop in various aspects including insurance brokerage, innovative economy, technology advancement, talent cultivation as well as international capital markets.

Mr. Liu Lu, Deputy General Manager of Tewoo Group said, AMTD has assisted Tewoo to complete three overseas bond offering in the past one year. He hopes that going forward AMTD and Tewoo can make use of its own resources and advantages, and enhance further cooperation opportunities.

Mr. Liu Lu, Deputy General Manager of Tewoo Group said, AMTD is a leading and diversified financial services group in Hong Kong and has been expanding quickly and developing fast over the recent years. In addition, AMTD has also assisted Tewoo to complete three overseas bond offering since last year. He hopes that going forward AMTD and Tewoo can make well use of each other's resources and network, and enhance further cooperation opportunities under a win-win partnership.

AMTD has completed 63 and 6 offshore bond offerings since 2016 and year-to-date, 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.

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