Hengtou Securities to offer two bond types totaling RMB 4 billion

By William Gullotti

Buffalo, N.Y., April 11 – China’s Hengtou Securities plans to issue up to RMB 2 billion of subordinated bonds and up to RMB 2 billion of corporate bonds in China, according to an announcement on Thursday.

In each case, the bonds may be issued all at once or in tranches with maturities of up to three years.

Likewise, the related issuances will be priced at par of RMB 100 with a fixed-rate coupon determined during underwriting.

Additionally, Hengtou intends to apply to Finance Street Investment for a joint liability guarantee for both subordinated bonds and corporate bonds. Finance Street, via Huarong Zonghe Investment and Finance Street Xihuan Properties, is a substantial company shareholder with interest in approximately 29.99% of the total issued share capital.

Proceeds from the domestic bonds would be used to repay maturing debt, and funds from the offshore bonds would be used to develop the company’s margin financing business, develop its proprietary business and supplement liquidity.

The proposed issuance is subject to shareholders’ approval at the company’s extraordinary general meeting on May 17. If approved, the authorization will remain valid for 36 months.

The securities brokerage firm is based in Beijing.

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