6.800% Private Placement of fixed rate notes due 2019
Haitong Bank acted as a Joint Lead Manager on US$80m 6.800% private placement of senior unsecured fixed-rate notes for Yongcheng Zunyi Road and Bridge Construction (Group) Limited (the Issuer). The notes will be unrated and unlisted. The net proceeds of the notes will be used for refinancing existing debt (including repayment of loans from banks, trust companies, leasing companies and other financial institutions and repayment of other borrowings incurred in operations and other debts), for general corporate purposes and for working capital purposes (including capital for its construction projects).
The Group is based in the Huichuan District of Zunyi City in China’s Guizhou province and primarily derives its income from its project construction business and urban infrastructure construction business. Prior to 2016, the Group had also been engaged in a land management business although since 2016, the Group has not recognised any revenue from this business.
The Issuer was established on 17 November 1993 and has a registered capital of RMB3.6 billion. It is wholly-owned by the Zunyi State Asset Supervision and Administration Commission and ultimately controlled by the Zunyi Municipal People’s Government. It has received strong financial, policy and other support from the Zunyi Municipal People’s Government. The Group has undertaken a number of major infrastructure construction projects and social functional projects in the urban area of Zunyi City in recent years.