New Issue: China’s UETD prices RMB 640 million credit enhanced notes due 2027 in two parts

By William Gullotti

Buffalo, N.Y., March 11 – UETD Construction & Development State-owned Capital Investment Operation (Group) Co., Ltd. priced RMB 640 million of credit enhanced notes due 2027 in two tranches at par, according to several listing documents on Monday.

The tandem offering is comprised of RMB 380 million 3.4% notes due Feb. 8, 2027 and RMB 260 million 3.6% notes due March 8, 2027.

The 3.4% notes are backed by an irrevocable standby letter of credit issued by Postal Savings Bank of China Co., Ltd., Urumqi Branch. Bank of Beijing Co., Ltd., Urumqi Branch issued the standby letter of credit backing the 3.6% notes.

China Industrial Securities International, Luso Bank Ltd., Industrial Bank Co., Ltd., Hong Kong Branch, CEB International, China Citic Bank International, Bank of China Macau Branch, Bocom International, CNCB Capital, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Bank of Communications Macau Branch, Raising International Securities Ltd., Yuan Tong Global Securities, Citic Securities, SunRiver International Securities Group Ltd., Donghai International, Huatai International and Caitong International are the joint lead managers and joint bookrunners for the 3.4% notes.

The joint lead managers and joint bookrunners for the 3.6% notes are China Industrial Securities International, Luso Bank Ltd., Industrial Bank Co., Ltd., Hong Kong Branch, CEB International, China Citic Bank International, Bank of China Macau Branch, Bocom International, CNCB Capital, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Bank of Communications Macau Branch, Raising International Securities Ltd., Yuan Tong Global Securities, Sinolink Securities (HK), CMBC Capital, Huatai International and Caitong International.

China Industrial Securities and Luso Bank are the joint global coordinators for both tranches.

Proceeds from the simultaneous offering will be used for the construction of the international dry port commercial trade zone of China-European liner assembly center logistics park infrastructure construction project (Phase I), Urumqi No. 1 terrace industrial park supporting service center construction project (Phase I) – low-income rental housing projects, Cultural, Scientific and Creative Talents Tower and other construction projects.

Listings for both tranches of Regulation S notes are expected on the Chongwa (Macao) Exchange effective March 11.

Located and operating in Urumqi, the capital of China’s Xinjiang Province, the issuer’s businesses include construction and management of infrastructure projects, property leasing, trade, landscape maintenance, shantytown redevelopment and sale of properties.

Issuer:	UETD Construction & Development State-owned Capital Investment Operation (Group) Co., Ltd.
Amount:	RMB 640 million
Issue:	Credit enhanced notes
Trustee:	Luso International Banking Ltd.
Counsel to issuer:	King & Wood Mallesons (England), Yingke Law Firm Shanghai Office (China), Rato, Ling, Lei & Cortes – Advogados (Macao)
Counsel to underwriters:	Ashurst Hong Kong (England, Hong Kong), Beijing DeHeng Law Offices (China), MdME (Macao)
Call:	For taxation reasons at par plus interest
Puts:	At par plus interest for a change of control or a no registration event
Pricing date:	March 1
Issue date:	March 8
Listing date:	March 11
Distribution:	Regulation S
3.4% notes
LoC issuer:	Postal Savings Bank of China Co., Ltd., Urumqi Branch
Amount:	RMB 380 million
Maturity:	Feb. 8, 2027
Bookrunners:	China Industrial Securities International, Luso Bank Ltd., Industrial Bank Co., Ltd., Hong Kong Branch, CEB International, China Citic Bank International, Bank of China Macau Branch, Bocom International, CNCB Capital, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Bank of Communications Macau Branch, Raising International Securities Ltd., Yuan Tong Global Securities, Citic Securities, SunRiver International Securities Group Ltd., Donghai International, Huatai International and Caitong International
Coupon:	3.4%
Price:	Par
Yield:	3.4%
ISIN:	MO0000000345
3.6% notes
LoC issuer:	Bank of Beijing Co., Ltd., Urumqi Branch
Amount:	RMB 260 million
Maturity:	March 8, 2027
Bookrunners:	China Industrial Securities International, Luso Bank Ltd., Industrial Bank Co., Ltd., Hong Kong Branch, CEB International, China Citic Bank International, Bank of China Macau Branch, Bocom International, CNCB Capital, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Bank of Communications Macau Branch, Raising International Securities Ltd., Yuan Tong Global Securities, Sinolink Securities (HK), CMBC Capital, Huatai International and Caitong International
Coupon:	3.6%
Price:	Par
Yield:	3.6%
ISIN:	MO0000000352

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