New Issue: China’s Yizheng Chengfa Overseas prices RMB 365 million 4% credit enhanced bonds

By William Gullotti

Buffalo, N.Y., Nov. 13 – Yizheng Chengfa Overseas Co., Ltd. priced RMB 365 million of 4% credit enhanced bonds due 2026 at par, according to a listing notice and an offering circular on Monday.

The Regulation S bonds have the benefit of a keepwell deed provided by parent company Yizheng City State-owned Assets Investment Development (Group) Co., Ltd. and further supported by an irrevocable standby letter of credit issued by Bank of Nanjing, Yangzhou Branch.

Orient Securities (Hong Kong), Fosun International Securities, CEB International, China Citic Bank International, Industrial Bank Co., Ltd., Hong Kong Branch, Initial Capital Securities, China Industrial Securities International, CNCB Capital, Citic Securities, Bank of Communications, GLAM Capital Ltd., ABC International and CMB Wing Lung Bank Ltd. are the joint lead managers and joint bookrunners for the offering, with Orient and Fosun also serving as joint global coordinators.

Proceeds will be used for project construction and replenishing working capital.

Listing for the bonds is expected on the Chongwa (Macao) Exchange effective Nov. 13.

The issuer is a special purpose financing entity incorporated in the British Virgin Islands in February 2022 and an indirect, wholly owned subsidiary of the guarantor. The guarantor is the core municipal infrastructure construction and comprehensive state-owned assets operating entity of the Yizheng Municipal Government, primarily engaging in land development, agent construction, project construction and housing sales.

Issuer:	Yizheng Chengfa Overseas Co., Ltd.
Keepwell:	Yizheng City State-owned Assets Investment Development (Group) Co., Ltd.
LoC issuer:	Bank of Nanjing, Yangzhou Branch
Amount:	RMB 365 million
Issue:	Credit enhanced bonds
Maturity:	Nov. 10, 2026
Bookrunners:	Orient Securities (Hong Kong), Fosun International Securities, CEB International, China Citic Bank International, Industrial Bank Co., Ltd., Hong Kong Branch, Initial Capital Securities, China Industrial Securities International, CNCB Capital, Citic Securities, Bank of Communications, GLAM Capital Ltd., ABC International and CMB Wing Lung Bank Ltd.
Trustee:	China Construction Bank (Asia) Corp., Ltd.
Counsel to underwriters:	Fangda Partners (England), Jingtian & Gongcheng (China), Ogier (BVI)
Coupon:	4%
Price:	Par
Yield:	4%
Call:	For taxation reasons at par plus interest
Put:	At par plus interest for a change of control
Pricing date:	Nov. 3
Issue date:	Nov. 10
Listing date:	Nov. 13
Distribution:	Regulation S
ISIN:	HK0000963345

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