AMTD completes debut US$300mm 3yr bond offering for Yida China
On 11th April 2017, Yida China Holdings Limited (3639.HK, “Yida China” or the “Company”) successfully priced a debut Regulation S US$300mm 3-year senior bond offering (the “Transaction”), with AMTD acting as the Lead-Left Global Coordinator, Lead Bookrunner and Lead Manager. This is the inaugural issuance for Yida China in the international debt capital markets, as well as the first offshore fundraising transaction of the Company following China Minsheng Investment Group (“CMIG”) became its controlling shareholder. The Transaction allows the Company to wide open its financing channels both onshore and offshore and facilitates the Company’s future overseas expansion and developments.
Yida China is an integrated enterprise principally engaged in the development and operation of business parks, and professional property management services, etc. Accounting for its completed overall floorage, Yida China is the largest operator of business parks in China. In November 2016, CMIG invested through its subsidiary CMI Jiaye and became the controlling shareholder of Yida China. With the vision of growing into the “expert business park operator” in China and beyond, Yida China is speeding up horizontal integration and vertical expansion of business parks by leveraging the strong capital, industry and finance integration capabilities of CMIG.
Issuer of the Transaction is Yida China, with its offshore subsidiaries providing guarantees, and the bonds will be listed on the Hong Kong Stock Exchange. Yida China is rated B2 Stable/B Stable/B Positive (Moody’s/S & P/Fitch), while the issue ratings are B3/B-/B (Moody’s/S & P/Fitch).
Benefited from Yida China’s strong integration ability in urban and industrial planning, quality tenants with high stickiness and diversity, extraordinary project execution capability, as well as stable revenue growth, coupled with the efforts of the syndicate group led by AMTD, the Transaction was extremely successful and well received by the international capital markets. The final orderbook eventually recorded 7.88x oversubscription or more than USD$2.1bn of orders, with AMTD contributing significant and high-quality anchor orders. The reoffer yield was 7.5%, which tightened by 25 bps from the initial pricing guidance of 7.75% area, with a 6.95% coupon rate.
As the overall lead bank in the Transaction, AMTD demonstrated its excellent distribution capabilities and solid client base by once again contributing high-quality orders. In terms of marketing strategy, AMTD successfully set up a series of non-deal roadshow meetings in Hong Kong and Singapore prior to an official mandate announcement, enabling international investors to gain a better understanding of the Company’s business model and strategies. In addition, AMTD also organized investor site visit in Dalian based on investor reverse enquiries. As a result, AMTD contributed the largest overall amount of orders while also obtained the largest single allocation in the Transaction. Other banks in the syndicate also included UBS, BofA Merrill Lynch, China Securities International, CITIC CLSA Securities, CMBC International, Deutsche Bank, GF Securities, Haitong International, Sun Hung Kai Financials, Zhongtai International and Bali Securities.
As the designated house bank of CMIG, the largest privately-owned investment company in China, AMTD is committed to providing top-tier capital market services to CMIG and its related group companies, including its shareholders and investees. Apart from Yida China, AMTD has consecutively acted as the lead bank in the past 2 years, to complete CMIG’s inaugural US$300mm 5-year senior bond offering in July 2015, the setup and establishment of CMIG’s US$1bn Medium Term Notes (“MTN”) program and the subsequent US$500mm 3-year senior bond drawdown in August 2016, the US$ 300mm debut bond issuance of Yango Holdings, one of the shareholders of CMIG in March 2017, as well as the US$400mm 10-year senior bond offering of Sirius International Insurance Group, a global insurance and reinsurance group backed by CMIG in October 2016.
The Transaction represents the 33rd offshore bond offering completed by AMTD in the past 12 months, as well as the 13th deal this year, demonstrating AMTD’s leadership and influences in the international debt capital markets. Prior to the aforementioned transactions, AMTD has served multiple large Chinese enterprises and investment holdings companies in USD bond issuances, including China Huarong Asset Management (2799.HK), one of the four leading PRC asset management companies, Fosun International (656.HK), one of the largest privately owned enterprises in China, HNA Group (International), a leading privately-owned investment group in China and Tewoo Group, the first Tianjin-based company to enter into the world’s top 500 enterprise list. 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), Carnival Group (996.HK); 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; and Far East Consortium International Limited (35.HK), a diversified Hong Kong-listed property operator and developer founded by renowned businessman Mr. Deacon Chiu.
About Yida China Holdings
Yida China Holdings Limited (3639.HK) is a leading operator of business parks in China, which has successfully listed on the Main Board of Hong Kong Stock Exchange on 27th June, 2014. It is an integrated enterprise principally engaged in development and operation of business parks, property management services, etc. Accounting for its completed overall floorage, Yida China is the largest operator of business parks in China and has accumulated extensive experience in developing and operating business parks forming the distinct business model and industrial advantages. In November 2016, China Minsheng Investment Group invested through its subsidiary CMI Jiaye and became the controlling shareholder of Yida China.