By William Gullotti
Buffalo, N.Y., July 7 – China Railway XunJie Co., Ltd., an indirect wholly owned subsidiary of China Railway Group Ltd. incorporated in the British Virgin Islands, provided details for its $500 million sale of 4% guaranteed bonds due 2027 (expected: //A-), according to listing notices and an offering circular on Thursday.
The parent company will guarantee the bonds, which were priced at 99.557.
The bonds may be redeemed early for taxation reasons at par plus interest. Bondholders will be able to exercise put rights at 101 plus interest for a change of control and at par plus interest if a non-registration event occurs.
BOCI Asia Ltd. and Standard Chartered Bank are the joint global coordinators, joint lead managers and joint bookrunners for the Regulation S offering.
Also serving as joint lead managers and joint bookrunners are CLSA Ltd., HSBC Ltd., China International Capital Corp., Hong Kong Securities Ltd., ICBC International Securities Ltd. and CMB International Capital Ltd.
Proceeds will be used to repay offshore debt and for general corporate purposes.
Listing for the bonds is expected on the Hong Kong Exchange effective July 7.
The construction group is based in Beijing.
| Issuer: | China Railway XunJie Co., Ltd.
|
| Guarantor: | China Railway Group Ltd.
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| Amount: | $500 million
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| Issue: | Guaranteed bonds
|
| Maturity: | July 6, 2027
|
| Bookrunners: | BOCI Asia Ltd., Standard Chartered Bank, CLSA Ltd., HSBC Ltd., China International Capital Corp., Hong Kong Securities Ltd., ICBC International Securities Ltd. and CMB International Capital Ltd.
|
| Trustee: | China Construction Bank (Asia) Corp., Ltd.
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| Counsel to issuer: | Jia Yuan Law Office (Hong Kong, China), Ogier (BVI)
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| Counsel to underwriters: | Davis Polk & Wardwell (England), Commerce & Finance Law Offices (China)
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| Coupon: | 4%
|
| Price: | 99.557
|
| Call: | For taxation reasons at par plus interest
|
| Change of control: | At 101 plus interest
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| Non-registration event: | At par plus interest
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| Pricing date: | June 28
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| Issue date: | July 6
|
| Listing date: | July 7
|
| Expected rating: | Fitch: A-
|
| Distribution: | Regulation S
|
| ISIN: | XS2486840544
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