New Issue: Tongling State-owned Capital sells $200 million 6% credit enhanced bonds due 2025

By William Gullotti

Buffalo, N.Y., Oct. 13 – China’s Tongling State-owned Capital Operation Holding Group Co., Ltd. announced it priced $200 million 6% credit enhanced bonds due 2025 at par, according to a listing notice with an appended offering circular on Thursday.

The Regulation S bonds are supported by an irrevocable standby letter of credit issued by Huishang Bank Corp., Ltd.

The issuer may redeem the notes early for taxation reasons at par plus interest. Bondholders will also be able to put the notes at par plus interest if a change of control or on-registration event occurs.

ABC International, China Industrial Securities International, CEB International, Huaan Securities (Hong Kong), Industrial Bank Co., Ltd., Hong Kong Branch, Guoyuan Securities (Hong Kong), CNCB Capital, Citic Securities, China Galaxy International, Haitong International, China Merchants Securities (HK) and Guolian Securities International are the joint lead managers and joint bookrunners for the offering with ABC, China Industrial, CEB and Huaan also serving as joint global coordinators.

Proceeds from the offering will be used to refinance existing offshore debt.

Application has been made to list the bonds on the Stock Exchange of Hong Kong Ltd.

Located in China’s Anhui Province, the issuer is a financial service and capital operation platform.

Issuer:	Tongling State-owned Capital Operation Holding Group Co., Ltd.
LoC issuer:	Huishang Bank Corp., Ltd.
Amount:	$200 million
Issue:	Credit enhanced bonds
Maturity:	Oct. 12, 2025
Bookrunners:	ABC International, China Industrial Securities International, CEB International, Huaan Securities (Hong Kong), Industrial Bank Co., Ltd., Hong Kong Branch, Guoyuan Securities (Hong Kong), CNCB Capital, Citic Securities, China Galaxy International, Haitong International, China Merchants Securities (HK) and Guolian Securities International
Trustee:	CMB Wing Lung (Trustee) Ltd.
Counsel to issuer:	Fangda Partners (England), Jingtian & Gongcheng (China)
Counsel to underwriters:	Linklaters (England), Allbright Law Offices (China)
Coupon:	6%
Price:	Par
Yield:	6%
Call:	For taxation reasons at par plus interest
Change of control:	At par plus interest
No-registration event:	At par plus interest
Pricing date:	Sept. 29
Issue date:	Oct. 12
Distribution:	Regulation S
ISIN:	XS2511295334

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