AMTD completes US$1bn senior bond offerings for CMBC HK Branch
On 6 March, 2018, China Minsheng Banking Corp. Ltd. (1988.HK, “China Minsheng Bank” or the “Bank”) Hong Kong Branch successfully priced its Reg S dual-tranche bond offering, comprised of US$400mm 3-year Senior Fixed Rate Notes and US$600mm 5-year Senior Floating Rate Notes (the “Transaction”) under its Hong Kong Branch‘s existing US$5.0bn MTN Programme, with AMTD acting as the Joint Bookrunner and Joint Lead Manager.
AMTD has established strategic partnership with China Minsheng Bank Hong Kong Branch. On 24th November, 2017, AMTD and China Minsheng Bank Hong Kong Branch entered into a comprehensive strategic cooperation agreement, of which both parties will leverage the advantage of its platform and resources and collaborate in various aspects that will lead to a win-win cooperation for financial institutions in China and Hong Kong. These areas include corporate accounts business, treasury and corporate finance, fundraising in international capital markets, asset management, equity transaction, structural products, leverage buyout, internet platform and in the new economy-related industries. Besides, following the issuance of the US$500mm 3-year Fixed Rate Notes offering in April 2017, US$800mm Floating Rate Notes offering in September 2017 and US$700mm Senior Bond offering in November 2017, AMTD has assisted the Bank to raise capital in overseas debt capital markets in all of its USD bond offerings since 2017. The Transaction also represents the 12th overseas bond offerings of Chinese financial institutions assisted by AMTD since 2017, demonstrating AMTD’s ability to provide services for different types of financial institutions through various overseas fundraising channels.
The Issuer, China Minsheng Banking Corp., Ltd., Hong Kong Branch, is rated BBB- Stable (S&P) while both the MTN programme and the Transaction are rated BBB- (S&P). The Transaction represents the 5th drawdown of the Bank’s US$5.0bn MTN programme. Benefited from China Minsheng Bank’s strong financial performance and asset quality, prudent risk management systems and synergies achieved among its three major business segments, coupled with the efforts of the syndicate group including AMTD, the Transaction was successful and well received by the market. The final order books were over US$2.5bn, which allowed the Bank to tighten the final pricing of the 3-year Senior Fixed Rate Notes and 5-year Senior Floating Rate Notes from their initial pricing guidance of CT3+140bps area and 3mL+130bps area to CT3+115bps and 3mL+105bps respectively.
The Transaction represents the 62nd offshore bond offering completed by AMTD since 2016 and the 5th deal this year, demonstrating AMTD’s influence and strong execution capability in the international debt capital markets. In addition, AMTD has served multiple Chinese and overseas financial institutions to conduct fundraising in the international capital markets since 2016. Apart from assisting China Minsheng Bank Hong Kong Branch to complete its overseas bond offerings, AMTD has also completed USD bond offerings for Bank of Jinzhou Co., Ltd. (416.HK), Bank of Zhengzhou Co., Ltd. (6196.HK), Bank of Qingdao Co., Ltd. (3866.HK), Sun Hung Kai & Co. (86.HK), China Huarong Asset Management (2799.HK), Sirius International Insurance Group, Zhongrong International Trust, Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch, Zhongtai International and Fenghui Leasing; as well as the H-share IPOs of Everbright Securities (6178.HK), Guangzhou Rural Commercial Bank (1551.HK), Zhongyuan Bank (1216.HK), Bank of Tianjin (1578.HK) and Bank of Qingdao (3866.HK) etc.