By William Gullotti
Buffalo, N.Y., Nov. 4 – China Cinda Asset Management Co., Ltd. issued $1.7 billion of non-cumulative perpetual offshore preference shares (B1) with a 4.4% starting dividend, according to an offering circular on Thursday.
Starting Nov. 3, 2026, the 4.4% dividend will reset and be resettable every five years with an 8.41% ceiling.
The rate will reset to Treasuries plus 323.2 basis points.
The offshore preference shares will be convertible to H shares, in whole or in part, at the option of the issuer in the case a trigger event occurs. The initial compulsory conversion price is HK$4.52 per H share with a fixed exchange rate of $1 to HK$7.7522.
The shares are callable, in whole or in part, starting on the first reset date and on any dividend payment date thereafter if redemption preconditions are satisfied.
The joint global coordinators, joint lead managers and joint bookrunners for the offering were BofA Securities, Bocom International, CCB International, China Merchants Securities (HK), China Securities International, Cinda International, Guotai Junan International, ICBC International, Mizuho Securities, Nanyang Commercial Bank, Standard Chartered Bank and UBS.
Also serving as joint lead managers and joint bookrunners were ANZ, Bank of Communications, BOC International, Chengtong Hong Kong, China Everbright Bank Hong Kong Branch, China International Capital Corp., CLSA, CMBC Capital, Deutsche Bank, J.P. Morgan, SMBC Nikko and SPDB International.
Proceeds will be used to replenish the company’s additional tier 1 capital.
Listing for the Regulation S shares is expected on the Hong Kong Exchange effective Nov. 4.
Based in Beijing, China Cinda provides asset management, consulting, investment, financial and risk management services to individuals and businesses.
| Issuer: | China Cinda Asset Management Co., Ltd.
|
| Issue: | Non-cumulative perpetual offshore preference shares
|
| Amount: | $1.7 billion
|
| Tenor: | Perpetual
|
| Bookrunners: | BofA Securities, Bocom International, CCB International, China Merchants Securities (HK), China Securities International, Cinda International, Guotai Junan International, ICBC International, Mizuho Securities, Nanyang Commercial Bank, Standard Chartered Bank, UBS, ANZ, Bank of Communications, BOC International, Chengtong Hong Kong, China Everbright Bank Hong Kong Branch, China International Capital Corp., CLSA, CMBC Capital, Deutsche Bank, J.P. Morgan, SMBC Nikko and SPDB International
|
| Counsel to issuer: | Linklaters (Hong Kong), King & Wood Mallesons (China)
|
| Counsel to bookrunners: | Allen & Overy (Hong Kong), Haiwen & Partners (China)
|
| Dividend: | 4.4%, starting rate; resets every five years to Treasuries plus 323.2 bps with an 8.41% cap
|
| Price: | Par of RMB 100
|
| Yield: | 4.4%
|
| Call option: | At liquidation preference on first reset date and on any dividend payment date thereafter, in whole or in part, if redemption preconditions are satisfied
|
| Pricing date: | Oct. 27
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| Issue date: | Nov. 3
|
| Listing date: | Nov. 4
|
| Rating: | Moody’s: B1
|
| Distribution: | Regulation S
|
| ISIN: | XS2397254579
|
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