Lisbon, March 18, 2020 – On March 11th, Bison Bank served as Joint Lead Managers and Joint Bookrunners on four tranches of US$ 2.0 billion bond issue, under a Medium-Term Note Programme for China Cinda (2020) I Management Ltd., a wholly owned subsidiary of China Cinda (HK) Holdings Company Ltd.
The four tranches of notes consisted of a 3 year US$700 million fixed-rate bond issue with a coupon rate of 2.000%, a 5 year US$500 million fixed-rate bond issue with a current coupon rate of 2.500%, a 7 year US$300 million fixed-rate bond issue with a current coupon rate of 3.000% and a 10 year US$500 million fixed-rate bond issue with a coupon rate of 3.125%. The Notes were unconditionally and irrevocably guaranteed by China Cinda (HK) Holdings Company Ltd.
With the good momentum of the Chinese bond market, despite the existing global market conditions, the bond investors order size reached the amount of US$10.8 billion. This allowed the Issuer to tighten up the pricing range and pushed down the bond yields.
China Cinda (HK) Holdings Company Limited (“Cinda HK”), is a wholly owned subsidiary of Cinda, a leading asset management company (“AMC”) in China. Cinda HK is the sole strategic offshore investing and financing platform of Cinda Group (China Cinda Asset Management Co., Ltd.) (“China Cinda”). With a successful track record of more than 20 years, Cinda HK has swiftly achieved its strategic mission, linking Cinda Group with offshore capital markets and paving the way for oversea expansion.
China Cinda is a key player in the China’s financial system with strong support from the government and regulatory bodies. It provides multi-licensed, multifunctional and comprehensive financial services in areas such as distressed asset management, asset management, banking, securities, trust, financial leasing, investment, futures and consumer finance.
The Issue was rated “A3” by Moody’s and “A” by Fitch. In addition, the Guarantor has been assigned a rating of “A3” (stable) by Moody’s, “A-” (stable) by Standard & Poor’s and “A” (stable) by Fitch. Proceeds will be used for working capital, investment and other general corporate purpose.
The USD 2.0 billion issue size was the largest issuance among Chinese asset management companies so far. This is also the first time for Bison Bank to participate in China Cinda overseas USD bond issuance. As of now Bison Bank acted as Joint Lead Manager and Joint Bookrunner on 3 of China Asset Management Companies overseas bond issuances- China Orient Asset Management Co. Ltd, China Huarong Asset Management Co. Ltd. and China Cinda Asset Management Co, Ltd.