According to latest statement, Sinic Holdings (Group) Company Limited (the “Company“, stock code: 2103) is pleased to announce that the Company successfully completed issuance of US$250 million 364-Day Senior Notes (“The Notes”) on October 12, with orders over US$1.5 billion, obtaining 6 times over-subscription.
The coupon rate of the Notes was 9.50%, and the final pricing of the Notes was 40 basis points lower than the guidance of the initial price. The yield of the new Notes has decreased significantly compared to the previous same tenor notes, which proves the Company’s improving investor recognition in the capital markets.
On 12 October, Sinic Holdings entered into the purchase agreement with Guotai Junan International, BOC International, UBS, Haitong International, Credit Suisse, CMB International, Barclays, BNP PARIBAS, CCB International, China CITIC Bank International, HSBC and Orient Securities (Hong Kong) in connection with the Notes. The Notes will mature in 2021 and will bear interest at a rate of 9.50% per annum, payable in arrears on 19 April 2021 and 18 October 2021.
The Company intends to use the net proceeds of the Notes issue to refinance certain existing indebtedness and for general working capital purposes. The Company may also adjust its plans in response to changing market conditions, and, thus, reallocate the use of the net proceeds.
Sinic Holdings has successfully attracted active subscription from investors in the market, receiving subscription of over 88 institutional investors from various countries and regions, including mainland China, Hong Kong, Europe and other countries, which fully demonstrated the recognition of investors in the market for the creditability and the management team of the Company.
The new 364-day senior notes was assigned rated B+ by the international credit rating agency Fitch and the Company was assigned global scale long-term issuer corporate credit ratings of “B+” (Outlook “stable”), “B”(Outlook “stable”) and “B2” (Outlook “stable”) by Fitch, Standard & Poor’s and Moody’s respectively.
