Lisbon, June 5, 2019 – On May 23rd, Bison Bank served as one of Joint Lead Managers and Joint Bookrunners on three tranches of US$1.9 billion fixed-rate bond issuance, under the existing US$2.9 billion Medium Term Note Programme for Huarong Finance 2019 Co., Ltd., a wholly owned subsidiary of China Huarong International Holdings Ltd.
The three tranches of notes consisted of a 3 year US$300 million fixed-rate bond issuance with a coupon rate of 3.375%, a 5 year US$900 million fixed-rate bond issuance with a coupon rate of 3.75% and a 10 year US$700 million fixed-rate bond issuance with a coupon rate of 4.50%. The Notes were unconditionally and irrevocably guaranteed by China Huarong International Holdings Limited, with keepwell/EIPU from China Huarong Asset Management Co., Ltd.
China Huarong Asset Management Co., Ltd. is a joint stock limited company listed on the Hong Kong Stock Exchange. China Huarong 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 final order book stood at US$5.6bn, with the book exceeding US$10bn at one stage. The three-year had US$2bn of orders, with Asia EMEA allocation split of 95% to 5%. The five-year had over US$2.2bn of orders, with EMEA getting a 20% share and Asia getting 80%. The ten-year notes received US$1.4bn of orders, with Asia and EMEA being allocated 82% and 18% of the notes respectively.
The Reg S notes issue are rated Baa1 by Moody’s and A by Fitch. Huarong is rated A3 (Negative) Moody’s / BBB+ (Stable) S&P / A (Stable) Fitch.
Proceeds are used to repay outstanding offshore notes when they come due.