Tianjin Binhai New Area Construction revives dollar bond offering

Tianjin Binhai New Area Construction & Investment Group is reviving a US dollar bond offering with a more generous yield after a failed attempt in July.

HONG KONG, Sept 11 (IFR) - Tianjin Binhai New Area Construction & Investment Group is reviving a US dollar bond offering with a more generous yield after a failed attempt in July.

The Chinese local government financing vehicle is marketing three-year US dollar bonds at final price guidance of 6.00%. The issue size will be around US$300m, according to the leads.

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

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

The Reg S deal will price as early as today. Proceeds will be used for general corporate purposes.

BHCI in July 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 yesterday withdrew its rating on BHCI, following a downgrade to BBB– from BBB on August 22.

(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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