Tianjin Binhai New Area Construction launches US$300m 3yr at 6.00%

Tianjin Binhai New Area Construction & Investment Group has launched a US$300m three-year bond offering at 6.00%, in line with guidance.

HONG KONG, Sept 11 (IFR) - Tianjin Binhai New Area Construction & Investment Group has launched a US$300m three-year bond offering at 6.00%, in line with guidance.

The revived deal offers a more generous yield than a first failed attempt in July.

Zhaobing Investment (BVI) is the issuer of the Reg S notes and BHCI is the guarantor.

The senior unsecured notes have expected ratings of Baa2/BBB+ (Moody's/Fitch), in line with the guarantor.

Proceeds will be used for general corporate purposes.

In July, the Chinese local government financing vehicle was forced to postpone a three-year US dollar bond offering after concerns over the finances of its local government parent led to a rare snub from international investors. Marketing of the Reg S deal began on July 11 at 5.10% area and final guidance of 5.00% (+/–5bp) was announced in the evening, before the deal was pulled around midnight.

The revamped offer is around 100bp more generous than that attempt.

Standard Chartered Bank, Bank of China, HSBC, ABC International, Guotai Junan International, Industrial Bank Hong Kong branch, Haitong International and CCB International are joint global coordinators. They are also joint lead managers and joint bookrunners with BNP Paribas, China Citic Bank International, Everbright Sun Hung Kai, CMBC Capital, CMB Wing Lung Bank, Orient Securities (Hong Kong), Shanghai Pudong Development Bank Hong Kong branch and Zhongtai International.

BHCI was established in 2006 by the Tianjin municipal government to manage major projects in the Tianjin Binhai New Area.

S&P withdrew its rating on BHCI at the company’s request yesterday, following a downgrade to BBB– from BBB on August 22.

Moody's and Fitch did not undertake any rating actions after the July deal postponement.

(Reporting by Carol Chan; Editing by Vincent Baby)

((C.Chan@thomsonreuters.com; +852 2912 6604;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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