Published on 4/3/2023 in the Prospect News Emerging Markets Daily.
New Issue: Chengdu Longteng Water sells RMB 529.7 million 5% credit enhanced bonds due 2026 at par
By William Gullotti
Buffalo, N.Y., April 3 – China’s Chengdu Longteng Water Resources Development Co., Ltd. sold RMB 529.7 million 5% credit enhanced bonds due 2026 at par, according to a listing notice and an offering circular on Monday.
The Regulation S bonds are supported by an irrevocable standby letter of credit issued by Mianyang City Commercial Bank Co., Ltd.
Essence International, ABC International, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Wilson Securities, Donghai International, Dongxing Securities (Hong Kong), Guotai Junan International, Shenwan Hongyuan (H.K.) and Hung Sing Securities Ltd. are the joint lead managers and joint bookrunners for the offering, with Essence and ABC also acting as joint global coordinators.
Proceeds from the offering will be used for project funding and replenishing working capital.
Listing for the bonds is expected on the Chongwa (Macao) Exchange effective April 3.
Owned by and operating in China’s Qionglai Municipality, the company is primarily focused on entrusted construction, water supply, sewage treatment, water supply installation and irrigation.
| Issuer: | Chengdu Longteng Water Resources Development Co., Ltd.
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| LoC issuer: | Mianyang City Commercial Bank Co., Ltd.
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| Issue: | Credit enhanced bonds
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| Amount: | RMB 529.7 million
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| Maturity: | March 31, 2026
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| Bookrunners: | Essence International, ABC International, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Wilson Securities, Donghai International, Dongxing Securities (Hong Kong), Guotai Junan International, Shenwan Hongyuan (H.K.) and Hung Sing Securities Ltd.
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| Trustee: | CMB Wing Lung (Trustee) Ltd.
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| Counsel to issuer: | Latham & Watkins LLP (England), JunHe LLP (China)
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| Counsel to underwriters: | Ashurst Hong Kong (England, Hong Kong), Commerce & Finance Law Offices (China)
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| Coupon: | 5%
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| Price: | Par
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| Yield: | 5%
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| Change of control: | At par
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| Pricing date: | March 28
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| Issue date: | March 31
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| Listing date: | April 3
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| Distribution: | Regulation S
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