AMTD completes the US$3bn bond offering for China Huarong

On 15 November, China Huarong Asset Management Co., Ltd. (2799.HK, “China Huarong”) announced the launch of a Reg S US$3bn senior unsecured bond offering (the “Transaction”), which comprised of three tranches: US$650mm 10-year bond, US$1.35bn 5-year bond and US$1bn 3-year bond. The issuer was Huarong Finance II Co., Ltd, with the support of the guarantor China Huarong International Holdings Limited, as well as a keepwell deed and a deed of equity interest purchase undertaking provided by China Huarong. AMTD acted as the Joint Bookrunner and Joint Lead Manager on the Transaction. This represents the 18th bond deal and the largest one completed by AMTD year-to-date.

Incorporated on 28 September, 2012 with the approval of the State Council, China Huarong Asset Management Co., Ltd. is a state-owned non-bank financial institution co-sponsored by the Ministry of Finance and China Life Insurance (Group). The Company was previously known as China Huarong Asset Management Corporation, which was established on 1 November, 1999 as one of China's four leading financial asset management companies. On 30 October, 2015, China Huarong was successfully listed on the Main Board of the Hong Kong Stock Exchange.

Benefited from China Huarong’s leading position, good credit quality and global ratings, as well as the efforts of the syndicate team including AMTD, the Transaction was extremely successful, despite volatile global capital market conditions following the recent US presidential election. The bond offering comprised of three tranches, with a total issue size of US$3bn, representing one of the largest issuances by a Chinese enterprise year-to-date. With overwhelming demand from high quality investors, the orderbook of all three tranches were oversubscribed, and the final prices were tightened from the initial price guidance, resulting in the successful completion of the bond offering.

AMTD has established a long-term cooperation relationship with China Huarong and its Hong Kong-based subsidiaries, including China Huarong International and Huarong International Financial Holdings (993.HK), and have jointly completed numerous capital markets transactions, including the US$500mm bond offering of China Minsheng Investment Group in 2016 and the global bond issuance of Sirius International Insurance Group.

The Transaction represents the 18th bond offering as well as the largest one completed by AMTD year-to-date. Some of the previous capital markets transactions completed by AMTD include: the US$500mm 3-year bond offering of China Minsheng Investment Group, the largest privately-owned investment company in China; the US$500mm bond offering for Zhongrong International Trust, one of the largest trust companies in China; the US$300mm bond offering for Yunnan Provincial Investment, the largest comprehensive holding company in the Yunnan Province; the debut US$180mm bond offering for Carnival Group (996.HK), China’s only publicly listed operator of large-scale integrated tourism, hospitality and retail attraction; the US$150mm bond offering for Fenghui Leasing, a leading leasing company in China; the US$362mm exchange offer and new 5-year bond offering for Sun Hung Kai & Co (86.HK), the largest listed non-bank financial institutions based in Hong Kong; the US$350mm bond offering for Regal Hotels (78.HK), one of the largest hotel operators in Hong Kong; the HK$500mm bond issuance for Emperor International Holdings Limited (163.HK), a famous Hong Kong-listed real estate company; AMTD Group’s debut US$110mm bond offering and subsequent US$50mm reopening at same terms, bringing the total size to US$160mm and representing the first ever USD bond offering from an unrated and unlisted financial services company from Asia; the US$300mm senior notes offering for Far East Consortium International Ltd. (35.HK), a diversified Hong Kong-listed property operator and developer founded by renowned businessman Mr. Deacon Chiu; the US$100mm bond offering for Jiayuan International (2768.HK), a leading property developer in Jiangsu Province, as well as the US$400mm global bond offering of Sirius International Insurance Group, a world-renowned insurance and reinsurance company.