PRIMARY CREDIT WATCH

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CCB Leasing (CAYMAN) Gets $4.1b Orders for US$500m 5Y Bonds Co. sells bonds at +190bp, IPT +215bp area.

  • By investor type
    • Fund managers 53%
    • Banks 29%
    • Private banks 8%
    • Insurers/sovereign wealth funds 7%
    • Others 3%
  • By region
    • Asia 89%
    • Europe 11%

MARKET DEALT +184 bp

Zhuhai Huafa Investor Meetings for CNH Bonds From Tomorrow

Investor meetings in Hong Kong, Singapore from tomorrow.

  • Issuer: Huarui Investment Holding Co.
  • Guarantor: Zhuhai Huafa Group Co.
  • Guarantor rating: –/–/BBB
  • Expected ratings: –/–/BBB
  • GC/JLM/JBR: CS
  • Reg S

Glorious Property Bond Rises 7pts After Co. Settles Amount Owed

GloPro 13.25% 2018 rises 7pts to 62.306 as of 9:07am in Hong Kong, according to Bloomberg data.

  • Bonds fell 11.325pts day before.

Shanshui USD 2020 Bonds Rise ~3 Pts, Shareholders Mull Takeover

SHASHU 7.50% 2020 rises 3.2pts to 93.77 as of 9:14am in Hong Kong, according to Bloomberg prices.

  • Bonds further up from a 4.3pt increase day before.

ADANI PORTS – US$ BENCHMARK 5YR

ISSUER: Adani Ports and Special Economic Zone Limited
ISSUER RATINGS:  Moody’s: (P)*Baa3 / Stable; S&P: BBB- /Stable; Fitch: BBB- (EXP)**/Stable
EXPECTED ISSUE RATINGS: Moody’s: Baa3; S&P: BBB-; Fitch: BBB-
STATUS: Fixed Rate Senior Unsecured Notes
FORMAT: 144A / Reg S
ISSUE SIZE:  US$ Benchmark
COUPON:Fixed Rate, Semi Annual, in arrears (30/360)
TENOR:5-year
INITIAL PRICE GUIDANCE: T5+210 area
TERMS: SGX Listing, US$200k/1k Denominations, English Law
JOINT BOOKRUNNERS:      Bank of America Merrill Lynch, Barclays,
Citigroup (B&D), and Emirates NBD Capital
JOINT LEAD MANAGERS:    Bank of America Merrill Lynch, Barclays, Citigroup, Emirates NBD Capital and SBI Capital Markets

EXPECT $500M DEAL SIZE

COMPARABLES:
HPHTSP 2.875% 03/20 (Baa1/BBB+)        T+145
DP WORLD LTD 3.25% 05/20   (Baa3/-/BBB-)      T+160
RELIANCE INDUSTRIES 4.5% 10/20    (Baa2/BBB+)        T+155
RELIANCE INDUSTRIES 4.125% 01/25  (Baa2/BBB+)        T+190
BHARTI AIRTEL 4.375% 06/25 (Baa3/BBB-/BBB-)   T+196

BOCOM AT1 REGS USD PERPNC5 – PRICE GUIDANCE 5.25% AREA

ISSUER:  Bank of Communications Co., Ltd. (the “Bank”)
ISSUER RATINGS:  A2 (stable) Moody’s / A- (stable) S&P / A (stable) Fitch
ISSUE: Basel-III Compliant Additional Tier 1 Capital Offshore Preference Shares
EXPECTED ISSUE RATING:     Ba3 (Moody’s)
CURRENCY:   USD
RANKING: Subordinated to all liabilities of the Bank (including any Tier 2 capital instruments) or obligations issued or guaranteed by the Bank that
rank or are expressed to rank senior to the Offshore Preference Shares, equal to Parity Obligations (including Domestic Preference Shares and any other
offshore preference shares of the Bank issued from time to time) and senior to ordinary shares
FORMAT: Reg S Only
ISSUE SIZE: USD Benchmark
TENOR: Perpetual NC 5 Years
PRICE GUIDANCE: 5.25% area
PAR VALUE: RMB 100 per preference share
LIQUIDATION PREFERENCE:   USD 20 per preference share
DIVIDEND RATE: Fixed rate, subject to fixed reset periods; payable annually
DIVIDEND RATE RESET:       On the 5th anniversary and every 5 years thereafter, reset to a new fixed dividend rate equal to the  prevailing 5-year U.S. Treasury Rate plus a fixed initial spread
DIVIDEND CANCELLATION: Cancellable at the discretion of the Bank on a
non-cumulative basis, subject to shareholders’ approval. Also, dividend payments subject to Bank having sufficient after-tax distributable profits
and meeting relevant capital requirements.
DIVIDEND STOPPER: Yes, applicable to ordinary share dividends and Parity Obligation Dividends
OPTIONAL REDEMPTION:  On the 5th anniversary and at every Dividend Payment Date thereafter subject to satisfaction of applicable Redemption Preconditions and CBRC approval
MANDATORY CONVERSION: Upon occurrence of Additional Tier 1 Capital
instrument Trigger Event, the Offshore Preference Shares will be converted in whole or in part into the Bank’s H Shares to the extent necessary for the
Additional Tier 1 Capital Instrument Trigger Event to cease to continue; upon occurrence of the Non-Viability Trigger Event, the Offshore Preference
Shares will be converted fully into the Bank’s H Shares
INITIAL MANDATORY CONVERSION PRICE: HKD 6.51 per H Share subject to certain adjustments (Any conversion will be at fixed exchange rate of USD1.00 to HKD7.7555)
TRIGGER EVENT: (i) Additional Tier 1 Capital Instrument Trigger Event: CET1 CAR falling to 5.125% or below; (ii) Non-Viability Trigger Event: the earlier of 1) the CBRC deciding that without a write-off or conversion of the Bank’s capital, the Bank would become non-viable; or 2) any relevant authorities deciding that a public sector injection of capital or equivalent support is necessary, without which the Bank would become non-viable
VOTING RIGHTS: Offshore Preference Shares carry voting rights only  in certain limited circumstances.
DETAILS: HKSE listing / Offshore Preference Shares / PRC Law
MINIMUM SUBSCRIPTION
AND TRANSFER AMOUNT:USD 200,000/integral multiples of USD 1,000
(or 50 Offshore preference shares)
JOINT GLOBAL COORDINATORS: Bank of Communications Co., Ltd. Hong Kong Branch, BOCOM International, Deutsche Bank, HSBC
JOINT BOOKRUNNERS: Bank of Communications Co., Ltd. Hong Kong Branch, BOCOM International, Deutsche Bank, HSBC, CITIC CLSA Securities, CCB International, Goldman Sachs (Asia) L.L.C., Citi and J.P. Morgan
B&D:   Deutsche Bank
TIMING: As early as today

COMPARABLES :
AT1
ICBCAS (Ba2/BB/*)   US$2.94BN  6.00%  PNC-Dec 19   104.25   4.888% YTC
BCHINA (Ba2/BB-/*)  CNY39.94BN 6.75%  PNC-Oct 19   106.70   4.954% YTC
WOORIB (Ba2/BB/*)   US$500M    5.00%  30NC-Jun 20  99.750   5.057% YTC
T2
BOCOM  (*/*/BBB+)       US$1.2BN   4.50%  Oct 24  101.74   T5+238   Z+246
BCHINA (Baa3/BBB+/BBB+) US$3BN     5.00%  Nov 24  101.99   T10+240  Z+242
CCB    (*/BBB+/BBB+)    US$2BN     3.875% May 25  98.991   T5+245   Z+239

Fukoku Life US$ Hybrid

Issuer: Fukoku Mutual Life Insurance Company (“Fukoku Life”)
Issuer Ratings: A2 Stable (Moody’s) / A Stable (S&P)
Exp Security Ratings:     Baa1 (Moody’s) / BBB+ (S&P)
Format:  Reg S
Type: Step-up callable perpetual subordinated notes (fixed to floating rate)
Subordination: Upon the occurrence of subordination event of Fukoku Life, and so long as it continues, the Bonds shall be subordinated in right of payment to all Senior Indebtedness
Maturity:  Perpetual
First Call Date: uly 28, 2025 and on every interest payment date thereafter
Settlement:  July 28, 2015 (T+4)
Size:  US$ Benchmark
Coupon:  [X]% semi-annually for the first 10 years and 3m$LIBOR + [X]bps (step-up by 100bps) quarterly thereafter
Initial Price Guidance:   5.25% area
Optional Deferral: Fukoku Life may, at its sole discretion, elect to defer payment of all accrued interest that would otherwise be due to be paid on an interest payment date
Mandatory Deferral: Fukoku Life shall be required to defer payment of all accrued interest if a capital deficiency event has occurred and is continuing, or any payment in relation to Liquidation Parity Indebtedness has been deferred and continues to be in deferral
Arrears of Interest: Arrears of Interest shall accrue on a cumulative basis and remain payable for so long as the Bonds remain unpaid. Interest on Arrears of Interest deferred at Fukoku Life’s option shall compound at a rate equivalent to the applicable fixed or floating rate. Arrears of Interest due to mandatory deferral shall bear no interest
Compulsory Interest Payment: Unless a capital deficiency event has occurred, Fukoku Life will be required to pay interest on any Interest Payment Date where in the period of six months prior to such interest payment date: (i) any dividend or distribution is declared  payable or a payment of interest is made on any Liquidation Parity Indebtedness, save where such dividend, distribution or payment is mandatory in accordance with the terms and conditions of such  ecurity, or (ii) any repurchase, redemption or acquisition by Fukoku Life or any of its subsidiaries of Liquidation Parity Indebtedness, save where Fukoku Life or, as the case may be, the relevant subsidiary is not able to defer, pass or eliminate the payment or other obligation in respect of such repurchase, redemption or acquisition
Denoms:  $200,000 x $1,000
Listing:  Singapore Exchange Securities Trading Limited
Books: GS (B&D) / Nomura / Citi / Mizuho Securities
Use Of Proceeds: General Corporate Purposes

COMPARABLES :
DAI-ICHI LIFE  5.1% 2049  CALLABLE 10/2024 (A3/A-/BBB+)  105.25  4.40% YTW
DAI-ICHI LIFE   7 .25% 2049  CALLABLE 07/2021 (A3/A-/BBB+) 116.125 4.18% YTW
NIPPON LIFE 5% 2042 CALLABLE 10/2022 (A3/A-/BBB+) 103.75   4.39% YTW
NIPPON LIFE 5.1%   2044 CALLABLE 10/2024 (A3/A-/BBB+) 104.5 4.5% YTW
FUKOKU MUTUAL LIFE 6 .5%  2049 CALLABLE 09/2023 (Baa1/BBB+/BBB) 113.00    4.57% YTW
SOMPO JAPAN 5.325% 2073  CALLABLE 03/2023 (A3/A-/A-) 106.25 4.36% YTW
SUMITOMO LIFE 65% 20 CALLABLE 09/2023 (A3/BBB+/BBB+) 113.25 4.54% YTW
MITSUI SUMITOMO   7%   2072  CALLABLE 03/2022 (A3/A-/A-) 115.875 4.23% YTW

 

Category : Market, Rates/Bonds