New Issue: China Everbright sells $300 million perpetuals with 3.8% initial rate

By Marisa Wong

Los Angeles, Oct. 21 – China Everbright Ltd. priced $300 million of senior perpetual capital securities (Baa3) at par on Tuesday, according to a company announcement.

The securities are callable after three years.

The distribution rate is initially 3.8% and resets on the first call date and every three years after that to the sum of the initial spread of 361.2 basis points plus Treasuries plus a margin of 400 bps.

If a step-up event occurs, such as a change of control, covenant breach or event of default, the distribution rate will increase by 400 bps.

China Everbright Securities (HK) Ltd., China Everbright Bank Co., Ltd., Hong Kong Branch, China International Capital Corp. Hong Kong Securities Ltd., Merrill Lynch (Asia Pacific) Ltd., Natixis, ABCI Capital Ltd., Bocom International Securities Ltd., Cantor Fitzgerald (Hong Kong) Capital Markets Ltd., CEB International Capital Corp. Ltd., China Securities (International) Corporate Finance Co. Ltd., Citigroup Global Markets Ltd., CMBC Securities Co. Ltd., Huatai Financial Holdings (Hong Kong) Ltd., ICBC International Securities Ltd., Morgan Stanley & Co. International plc, Nomura International (Hong Kong) Ltd., SPDB International Capital Ltd., Standard Chartered Bank, Tai Fung Bank Ltd. and Zhongtai International Securities Ltd. are the joint lead managers and joint bookrunners.

Everbright Securities, China Everbright Bank, CICC, BofA Securities and Natixis are also the joint global coordinators.

The securities are expected to be issued on Oct. 27.

Proceeds will be used to refinance offshore debt, for offshore asset management business development and to replenish working capital.

China Everbright is a Hong Kong-based financial services company.

Issuer:	China Everbright Ltd.
Issue:	Senior perpetual capital securities
Amount:	$300 million
Maturity:	Perpetual
Bookrunners:	China Everbright Securities (HK) Ltd., China Everbright Bank Co., Ltd., Hong Kong Branch, China International Capital Corp. Hong Kong Securities Ltd., Merrill Lynch (Asia Pacific) Ltd., Natixis, ABCI Capital Ltd., Bocom International Securities Ltd., Cantor Fitzgerald (Hong Kong) Capital Markets Ltd., CEB International Capital Corp. Ltd., China Securities (International) Corporate Finance Co. Ltd., Citigroup Global Markets Ltd., CMBC Securities Co. Ltd., Huatai Financial Holdings (Hong Kong) Ltd., ICBC International Securities Ltd., Morgan Stanley & Co. International plc, Nomura International (Hong Kong) Ltd., SPDB International Capital Ltd., Standard Chartered Bank, Tai Fung Bank Ltd. and Zhongtai International Securities Ltd.
Coupon:	3.8% initially, resets every three years to Treasuries plus 761.2 bps; if a step-up event occurs, rate will increase by 400 bps
Price:	Par
Call option:	At par beginning Oct. 27, 2023
Put option:	At 101 upon change of control
Pricing date:	Oct. 20
Settlement date:	Oct. 27
Rating:	Moody’s: Baa3

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