AMTD completes US$300mm 5yr bond offering for China South City

On 13 November 2017, China South City Holdings Ltd. (1668.HK, the “Company”) successfully priced a Reg-S US$300mm 5-year senior bond offering (the “Transaction” or the “Bond”), with AMTD acting as Joint Bookrunner and Joint Lead Manager. Following the US$300mm 3-year senior bond offering in March 2017 which AMTD also acted as Joint Bookrunner and Joint Lead Manager, AMTD has once again assisted the Company with another successful transaction, demonstrating AMTD’s leadership in the international debt capital markets and prominent execution capabilities to tap the offshore USD bond market.

The Transaction was directly issued by the Company with guarantees and share pledges from its certain non-PRC subsidiaries. The Bond will be listed on the Singapore Stock Exchange (SGX) while the proceeds will be used for refinancing the Company’s existing indebtedness on construction and development and general corporate purpose. The Company is rated B / B (S&P / Fitch), while the issue ratings are B- / B (S&P / Fitch). Benefiting from the Company’s unique flexible business model and solid credit profile, the Transaction was well-received by international capital markets. During the bookbuilding process, largest orderbook amounted to more than US$1.1bn representing 3.7x oversubscription to its offering size, allowing the Company to tighten the final yield to 7.75% from initial pricing guidance of 7.875% area. The Transaction attracted many institutional investors including asset managers, banks and PBs, which demonstrated the high recognition of the Company’s credit profile and its prudent business development by the international capital market. Similar to most of the transactions that we lead-managed, AMTD once again contributed one of the largest price insensitivity lead orders and allocation in the Transaction.

AMTD has completed 57 and 37 offshore bond offerings since 2016 and year-to-date, demonstrating AMTD's leadership and influences in the international debt capital markets. Other than China South City, AMTD has successfully assisted multiple Chinese and Hong Kong property developers to access the international capital markets since 2016. AMTD has maintained a long term relationship with various bond issuers and has repeatedly assisted them to tap the most constructive window in the international debt capital markets. In addition to working with China South City, AMTD has repeatedly served multiple Chinese and Hong Kong property developers for their USD bond issuances, including Yango Group（000671.SZ）, China Aoyuan Property (3883.HK), China Logistics Property Holdings (1589.HK), Oceanwide Holdings (000046.SZ), Logan Property (3380.HK), Yida China (3639.HK), Fujian Yango Holdings, China South City (1668.HK), Yuzhou Properties (1628.HK), Guangzhou R&F (2777.HK), Ronshine China (3301.HK), Xihu Zhongbao ( 600208.CH), Jiayuan International (2768.HK), Regal Hotels (78.HK) and Far East Consortium International (35.HK) etc.