Lisbon, November 16, 2020 – On November 9th, Bison Bank served as Joint Lead Manager and Joint Bookrunner on the dual tranche US$ 750 million bond issue for China Orient Asset Management (International) Holding Limited (“COAMI”), a wholly owned subsidiary of China Orient Asset Management Company Limited (“COAMC” or the “Group”).
The two tranches of notes consisted of a 5 year US$ 450 million fixed-rate bond issue with a coupon rate of 1.875% and a 10 year US$ 300 million fixed-rate bond issue with a coupon rate of 2.750%. The Notes were issued under the SPV Joy Treasure Assets Holdings Inc. and unconditionally and irrevocably guaranteed by COAMI.
Final order book for the 5 year at reoffer was over US$ 5.0 billion (11 times oversubscribed), and final order book for the 10 year at reoffer was over US$ 4.8 billion (16 times oversubscribed), making the collective order book over US$ 9.8 billion. This allowed the Issuer to tighten the spreads by 45 and 48 basis points, respectively. The 13 times over subscription of the offering underlines the solid dynamism of Chinese Capital Market and the continued trend of strong and growing global investor demand for high quality Chinese financial assets.
COAMC is a leading asset management company in China. COAMI is the Group’s primary overseas platform focusing on investment and asset management. As the Group’s flagship international investment platform, COAMI serves as a bridge between domestic resources and oversea markets for the Group and plays a key role in spearheading the Group’s cross border and international businesses.
Capitalising on its investment track record and strong support from the Group, COAMI has established long-standing relationships with leading global financial institutions and partners in both China and overseas. COAMI intends to maintain and optimize its investment scale and scope by taking advantage of special opportunities emerging in cross border markets, such as distressed lending, liquidity crises management, refinancing, and non-performing assets and loans in Hong Kong.
The Issue was rated “A” by Fitch and “BBB+” by Standard & Poor’s. The Guarantor has been assigned a rating of “A” (stable) by Fitch and “BBB+” (stable) by Standard & Poor’s. Proceeds will be used for repayment of existing offshore indebtedness.
This was the third time for Bison Bank to participate in COAMI overseas US$ bond issuance, successfully bringing new European investors to the Issuer.