AMTD completes US$300mm 3yr bond offering for Yango Holdings

On March 28, 2017, Fujian Yango Group Co., Ltd (“Yango Holdings” or the “Company”) successfully priced its debut Reg S US$300mm 3-year senior bond offering (the “Transaction”), with AMTD acting as the Lead Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager. The Transaction marks as the debut issuance by the Company in the international capital markets, through this highly successful Transaction, the Company achieved an important milestone by broadening its investor base through offshore financing channels and establishing its brand name in the international capital markets to go along with the Company’s global expansion strategy.

Yango Holdings is a leading privately-owned investment group in China. The company engages in five key industries which include Yango Finance Group (banking, insurance, and securities), Yango Education Group (kindergarten and K12 schools chains and undergraduate university), Yango Healthcare Group (general hospitals and specialized hospitals), Yango International Trade Group (energy and bulk commodities), as well as Yango City Group (Top 20 Real Estate Company in China). Yango Holdings is also one of the founding shareholders of China Minsheng Investment Group. In January 2016, AMTD and Yango Holdings signed a long-term strategic cooperation agreement, aiming to achieve comprehensive and in-depth cooperation in various areas in investment banking and capital markets, as well as actively explore new business cooperation in other fields including wealth management, insurance, Internet Finance and etc. The issuance of the USD bond has well- demonstrated the deepening and implementation of the strategic partnership between the two parties.

Issuer of the Transaction is Yango (Cayman) Investment Ltd., a wholly owned SPV with the Company providing direct offshore guarantee. The bonds (issuer non-callable and investors non-puttable in the first 2 years) will be unrated and listed on the Hong Kong Stock Exchange.

As the Lead Joint Global Coordinator and Bookrunner, AMTD took the leading role in the overall execution of the Transaction, in particular AMTD designed a well-planned investor education and marketing process for this Transaction, whereby AMTD organized a series of non-deal investor meetings, reverse roadshows and onsite visits to the Company’s various projects in mainland China, starting in November of last year, enabling international institutional investors to gain a better understanding of the Company’s different businesses as well as its promising growth potential ahead of the formal announcement of the Transaction.

Benefited from Yango Holdings’ strong financial and execution capabilities, synergy among its five major business segments, as well as a comprehensive global footprint, coupled with the efforts of the intermediaries led by AMTD, the Transaction was extremely successful and well received by the international capital markets. The orderbook recorded over US$1.6bn orders from more than 90 institutional investors at its highest point, representing over 5x oversubscription as compared to its offering size of US$300mm. On the back of a high-quality orderbook, final pricing was tightened significantly by 40 bps to 6.85% from the initial pricing guidance of 7.25%.

In line with AMTD’s execution standards, strong distribution capabilities and high-quality investor base, AMTD once again contributed the largest orders in the orderbook and also received the largest allocation. Other syndicate banks in the Transaction included UBS, China CITIC Bank International and China Minsheng Bank, Hong Kong Branch.

The Transaction represents the 30th offshore bond offering completed by AMTD in the past 12 months, as well as the 10th deal in the first quarter 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 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, Yunnan Provincial Investment, the largest comprehensive holding company in the Yunnan Province. 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) and Carnival Group (996.HK); as well as 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; Far East Consortium International Limited (35.HK), a diversified Hong Kong-listed property operator and developer founded by renowned businessman Mr. Deacon Chiu.

About Yango Holdings

Founded in 1995 by patriotic Chinese merchant Mr. Lin Tengjiao, Yango Holdings is a leading private enterprise in China. Yango Holdings engages in five key industries which include Yango Finance Group (banking, insurance, and securities), Yango Education Group (kindergarten and K12 schools chains, undergraduate university), Yango Healthcare Group (general hospitals and specialized hospitals), Yango International Trade Group (energy and bulk commodities), as well as Yango City Group (Top 20 Real Estate Company in China). Yango City Group Co., Ltd. (000671.CH), a subsidiary company, has been listed on the Shenzhen Stock Exchange since 2002. Yango Holdings is also one of the founding shareholders of China Minsheng Investment Group.