HONG KONG, Sept 10 (IFR) - Guangxi Communications Investment Group is marketing three-year US dollar senior unsecured bonds at initial price guidance of 4.00% area.
The deal, which will price as early as today, has already received significant anchor orders and indications of interest, according to leads.
The benchmark Reg S issue has expected ratings of Baa2/BBB (Moody’s/ Fitch), on par with the issuer.
Proceeds will be used for business development and debt repayment.
CCB International, China Securities International, Bank of China and BoCom International are joint global coordinators as well as joint bookrunners and joint lead managers with ICBC International, DBS Bank, CEB International, China Minsheng Banking Corp Hong Kong branch and China Citic Bank International.
Guangxi Zhuang State-owned Assets Supervision and Administration Commission owns the issuer, which is responsible for the construction and development of transportation infrastructure, including expressways and toll roads, in the autonomous region.
The group's other businesses include refined oil and trading of steel, asphalt and mineral products.
Moody's on August 22 upgraded the issuer's senior unsecured rating to Baa2 from Baa3 citing the increased likelihood of support following its recent merger with Guangxi Railway Investment Group, making it the province's dominant toll-road operator and sole railway platform.
"The company's substantially enlarged role in the strategic transportation infrastructure sector has increased its importance at provincial and national level even further, resulting in the additional notch of government support uplift," said Boris Kan, senior credit officer at Moody's.
Guangxi Communications Investment last tapped the offshore bond market in January 2018 with a US$200m 3.875% three-year bond priced at 99.669 to yield 3.993%, or Treasuries plus 182.5bp.
(Reporting by Carol Chan; Editing by Steve Garton)
((C.Chan@thomsonreuters.com; +852 2912 6604;))