New Issue: Hengrui sells RMB 48 million new, RMB 140 million tap of 7.8% guaranteed bonds

By William Gullotti

Buffalo, N.Y., Jan. 31 – Hengrui International (BVI) Co., Ltd. sold RMB 48 million of 7.8% guaranteed bonds due 2026 at par and RMB 140 million more 7.8% guaranteed bonds due 2027 at 99.991, according to multiple listing documents on Wednesday.

Each series of Regulation S bonds is guaranteed by parent company Zibo Zhangdian District State-owned Assets Operation Co., Ltd.

The additional bonds due 2027 will be initially listed under a temporary ISIN and will later be consolidated with the initial RMB 150 million issued Jan. 5 to form a single series under the same indenture.

Haitong Bank, Zhongtai International, Shanghai Pudong Development Bank Hong Kong Branch and Shenwan Hongyuan (H.K.) are the joint lead managers and joint bookrunners for the new two-year notes, with Haitong and Zhongtai also serving as joint global coordinators.

The joint lead managers and joint bookrunners for the tap offering are Haitong Bank, Shanghai Pudong Development Bank Hong Kong Branch, Shenwan Hongyuan (H.K.), China Citic Bank International, Tung Yat Securities Ltd., Zhongtai International, Guolian Securities International, Far East Horizon International and Realord Asia Pacific Securities, with Haitong reprising its role as sole global coordinator.

Proceeds from both offerings will be used for project investment and supplementing working capital.

Listings for the bonds are expected on the Chongwa (Macao) Exchange effective Jan. 31.

The issuer is a wholly owned subsidiary of the guarantor, incorporated in the British Virgin Islands on May 25, 2022. The guarantor is a state-owned enterprise in China’s Zhangdian District, engaging in businesses that include engineering, real estate management, human resources services, public utilities, state-owned asset operations and trading.

Issuer:	Hengrui International (BVI) Co., Ltd.
Guarantor:	Zibo Zhangdian District State-owned Assets Operation Co., Ltd.
Amount:	RMB 188 million
Issue:	Guaranteed bonds
Trustee:	China Construction Bank (Asia) Corp., Ltd.
Counsel to issuer:	Morgan, Lewis & Bockius (England), Shandong Jointide (Jinan) Law Firm (China)
Counsel to underwriters:	Herbert Smith Freehills (England, Hong Kong), Grandall Law Firm (Jinan) (China), Ogier (BVI)
Call:	For taxation reasons at par plus interest
Puts:	At 101 plus interest for a change of control; at par plus interest for a no registration event
Pricing date:	Jan. 25
Issue date:	Jan. 30
Listing date:	Jan. 31
Distribution:	Regulation S
2026 bonds
Amount:	RMB 48 million
Maturity:	Jan. 30, 2026
Bookrunners:	Haitong Bank, Zhongtai International, Shanghai Pudong Development Bank Hong Kong Branch and Shenwan Hongyuan (H.K.)
Coupon:	7.8%
Price:	Par
Yield:	7.8%
ISIN:	XS2756269291
Additional 2027 bonds
Amount:	RMB 140 million, add-on
Maturity:	Jan. 5, 2027
Bookrunners:	Haitong Bank, Shanghai Pudong Development Bank Hong Kong Branch, Shenwan Hongyuan (H.K.), China Citic Bank International, Tung Yat Securities Ltd., Zhongtai International, Guolian Securities International, Far East Horizon International and Realord Asia Pacific Securities
Coupon:	7.8%
Price:	99.991, plus accrued and unpaid interest from and including Jan. 5
Yield:	7.8%
ISINs:	XS2756287517 (temporary, pre-consolidation), XS2732861104
Total issue:	RMB 290 million, including initial RMB 150 million issued Jan. 5

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