New Issue: China’s Shenghai prices RMB 300 million 4½% credit enhanced bonds due 2027 at par

By William Gullotti

Buffalo, N.Y., Jan. 11 – Shenghai Investment Co., Ltd. priced RMB 300 million of 4½% credit enhanced bonds due 2027 at par, according to a listing notice and an offering circular on Thursday.

The bonds feature a keepwell deed provided by Qingdao Military-Civilian Integration Development Group Co., Ltd. and are further supported by an irrevocable standby letter of credit provided by Bank of Qingdao Co., Ltd., West Coast Branch.

China Industrial Securities International, Zhongtai International, Silk Road International, Huatai International, Industrial Bank Co., Ltd., Hong Kong Branch, Citic Securities, CMBC Capital, SunRiver International Securities Group Ltd. and China Credit International Securities are the joint lead managers and joint bookrunners for the Regulation S offering, with China Industrial, Zhongtai and Silk Road also serving as joint global coordinators.

Proceeds will be used for project construction and replenishment of working capital.

Listing for the bonds is expected on the Chongwa (Macao) Exchange effective Jan. 11.

The issuer is an indirect, wholly owned subsidiary of the keepwell provider incorporated in the British Virgin Islands on Sept. 28, 2023. The keepwell provider is a state-owned platform involved in engineering and construction, trading, shipbuilding and other related businesses.

Issuer:	Shenghai Investment Co., Ltd.
Keepwell:	Qingdao Military-Civilian Integration Development Group Co., Ltd.
LoC issuer:	Bank of Qingdao Co., Ltd., West Coast Branch
Amount:	RMB 300 million
Issue:	Credit enhanced bonds
Maturity:	Jan. 10, 2027
Bookrunners:	China Industrial Securities International, Zhongtai International, Silk Road International, Huatai International, Industrial Bank Co., Ltd., Hong Kong Branch, Citic Securities, CMBC Capital, SunRiver International Securities Group Ltd. and China Credit International Securities
Trustee:	China Construction Bank (Asia) Corp., Ltd.
Counsel to issuer:	King & Wood Mallesons (England), Beijing DHH Law Firm (China), Maples and Calder (Hong Kong) LLP (BVI)
Counsel to underwriters:	Jun He Law Offices (England, Hong Kong), DeHeng Law Offices (China)
Coupon:	4½%
Price:	Par
Yield:	4½%
Call:	For taxation reasons at par
Change-of-control:	At par
Pricing date:	Jan. 3
Issue date:	Jan. 10
Listing date:	Jan. 11
Distribution:	Regulation S
ISIN:	XS2734722239

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