Nanyang Commercial Bank started marketing its inaugural dollar-denominated Basel III additional tier one (AT1) offering at the Asia market open, with initial price guidance for the perpetual non call five year set in the 5.375% area by joint global co-ordinators Bank of America Merrill Lynch, BOC International, Cinda International, Citic CLSA Securities, Credit Suisse and UBS.
Joint bookrunners and joint lead managers also include ANZ, CCB International, CICC HK Securities, Deutsche Bank, Morgan Stanley and Wells Fargo Securities. The leads took the issuer to meet fixed income accounts in Hong Kong and Singapore earlier this week.
The A3 rated issuer from Hong Kong is an indirect wholly-owned subsidiary of China Cinda Asset Management Co, which sold its inaugural AT1 in September 2016. That was the first Chinese non-bank AT1 and also the year's largest dollar deal ($3.2bn) from the country at the time.
More recently from Hong Kong, Bank of East Asia priced a well supported $500m 5.625% perp NC5 at par in mid-May. China Citic Bank International, meanwhile, has a $500m 4.25% perp NC5 from September last year.
Nanyang Commercial Bank is rated A3 by Moody’s with a stable outlook and its Reg S bonds, to be listed in Hong Kong, are rated Ba2. Its common equity tier one capital ratio was 14.31% as of end 2016, down from 16.2% a year ago.
On the corporate side, Melco Resorts Finance from Macau, via joint global co-ordinators and joint boorunners ANZ and Bank of America Merrill Lynch as well as joint bookrunners BOC International, ICBC (Asia) and ICBC (Macau), announced an 8NC3 bond with initial guidance in the 5.25% area.
The company, formerly known as MCE Finance, will use the proceeds from the 144A/Reg S bond to refinance its outstanding $1bn 5% 2021 from January 2013.
A global roadshow was held in Hong Kong, Singapore, London and the US. The senior notes are expected to be rated Ba3 by Moody’s and BB- by S&P.
Although the issuer is a wholly-owned subsidiary of US-listed casino and resort developer Melco Resorts & Entertainment, Melco Resorts will not guarantee the bond.
The outing follows Melco Resorts’ recent repurchase of Crown Asia Investments' remaining 11.2% shareholding in Melco Crown Entertainment, a Macau joint venture between Lawrence Ho and Australian billionaire James Packer.
Dr Peng Telecom & Media, rated Ba2/BB/—, also came out on Thursday with its maiden bond, following investor calls on Tuesday.
Sole global co-ordinator, lead manager and bookrunner DBS released initial price thoughts for a three year in the 5.5% area.
Dr Peng will guarantee the senior notes, to be sold by Dr Peng Holding Hong Kong. The Reg S bonds will be rated on par with the borrower.
The Chengdu, Sichuan-based company is China’s largest private telecommunications operator by total revenue in 2016. It is listed in Shanghai and offers broadband internet access and application services as its core business. It held a non-deal roadshow in mid-April, visiting Hong Kong and Singapore.
Last but not least, Indonesia’s Agung Podomoro Land (APL), via joint leads BNP Paribas and Citi, is taking bids for its debut dollar issuance. Guidance for the 7NC4 has been set in the 6.25% area.
The guaranteed senior unsecured note is the property developer’s international debut, and is being sold by APL Realty Holdings. About $155m of the proceeds from the trade will be used for debt repayment, with the remaining going towards general corporate purposes.
Moody’s has assigned an expected Ba3 rating to the notes.