Primary hosts CIFI, Baoxin; China, U.S. tensions ramp up; trading slows ahead of holidays

By Christine Van Dusen

Atlanta, Dec. 19 – China’s CIFI Holdings (Group) Co. Ltd. and China’s Baoxin Auto Finance I Ltd. priced notes on a Monday that had some investors eyeing China as trading slowed ahead of the Christmas holiday.

“Political tensions were in focus over the weekend after China seized a U.S. naval drone in the South China Sea, with talks about its return ongoing,” a London-based analyst said. “The incident however didn’t stop U.S. President-elect Trump from lashing out at China by referring on Twitter to an ‘unprecedented act.’”

The response from China was fairly muted, he said.

“While we only saw modest swings in the U.S. dollar, further uncertainty looms once Trump and his cabinet start shaping their foreign relations,” he said.

In its new deal, China’s CIFI Holdings priced $285 million 5½% notes due Jan. 23, 2022 at par to yield 5½%, according to a company filing.

Credit Suisse, Haitong International, Standard Chartered Bank and GF Securities HK were the bookrunners for the Regulation S deal.

The proceeds will be used to refinance debt and for general corporate purposes.

CIFI is a Shanghai-based developer.

Also on Monday, China’s Baoxin Auto Finance priced a $100 million tap of its 8¾% perpetual senior notes at 99.355, according to a company filing.

CICC HK Securities was the bookrunner for the Regulation S deal.

The company priced $300 million of 8¾% senior perpetual securities at 99.355 on Dec. 8.

Baoxin is an automobile dealership based in Shanghai.

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