By Marisa Wong
Morgantown, W.Va., March 9 – China Eastern Airlines Corp. Ltd. priced ¥50 billion of credit enhanced bonds at par on Friday, according to a company announcement.
The guaranteed bonds will be issued in three series, each with a three-year tenor. The series 1 bonds, totaling ¥10 billion carry a coupon of 0.33%; the series 2 bonds, totaling ¥20 billion, carry a coupon of 0.64%; and the series 3 bonds, totaling ¥20 billion, have a coupon of 0.64%.
The series 1 bonds (Japan Credit: AA) are guaranteed by Sumitomo Mitsui Banking Corp., Hong Kong Branch. The series 2 bonds (A1) are supported by a letter of credit issued by Bank of China Ltd., Tokyo Branch. The series 3 bonds (A1) are supported by a letter of credit issued by Industrial and Commercial Bank of China Ltd., Shanghai Municipal Branch.
SMBC Nikko Capital Markets Ltd. and DBJ Securities Co., Ltd. are the bookrunners for the series 1 bonds. Bank of China, Mizuho Securities Asia Ltd., SMBC Nikko Capital Markets, Daiwa Capital Markets Singapore Ltd., Morgan Stanley & Co. International plc and Nomura International plc are the bookrunners for the series 2 and series 3 bonds.
SMBC Nikko Capital Markets, Bank of China and Mizuho Securities Asia are the joint global coordinators for the entire bond issue.
The Shanghai-based airline plans to use proceeds to refinance debt.
| Issuer: | China Eastern Airlines Corp. Ltd.
|
| Issue: | Credit enhanced bonds
|
| Amount: | ¥50 billion
|
| Maturity: | March 16, 2021
|
| Pricing date: | March 9
|
| Settlement date: | March 16
|
|
|
| Series 1
|
| Guarantor: | Sumitomo Mitsui Banking Corp., Hong Kong Branch
|
| Amount: | ¥10 billion
|
| Coupon: | 0.33%
|
| Price: | Par
|
| Yield: | 0.33%
|
| Bookrunners: | SMBC Nikko Capital Markets Ltd. and DBJ Securities Co., Ltd.
|
| Rating: | Japan Credit Rating Agency, Ltd.: AA
|
|
|
| Series 2
|
| Guarantor: | Bank of China Ltd., Tokyo Branch
|
| Amount: | ¥20 billion
|
| Coupon: | 0.64%
|
| Price: | Par
|
| Yield: | 0.64%
|
| Bookrunners: | Bank of China, Mizuho Securities Asia Ltd., SMBC Nikko Capital Markets, Daiwa Capital Markets Singapore Ltd., Morgan Stanley & Co. International plc and Nomura International plc
|
| Rating: | Moody’s: A1
|
|
|
| Series 3
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| Guarantor: | Industrial and Commercial Bank of China Ltd., Shanghai Municipal Branch
|
| Amount: | ¥20 billion
|
| Coupon: | 0.64%
|
| Price: | Par
|
| Yield: | 0.64%
|
| Bookrunners: | Mizuho Securities Asia, Bank of China, SMBC Nikko Capital Markets, Daiwa Capital Markets Singapore, Morgan Stanley & Co. International and Nomura International
|
| Rating: | Moody’s: A1
|
|
|
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