Shangri-La Asia points its first panda bond

Shangri-La Asia has issued its first panda bond, which is a primary for a Hong Kong listed hospitality group. 

The Rmb1 billion ($140 million) three-year word is collectively managed by Financial institution of China, China Retailers Securities and Mizuho Financial institution (China), in response to a June 5 media launch.

Shangri-La had arrange a Rmb20 billion medium time period notes (MTN) programme, and this Rmb1 billion issuance is the primary tranche of that programme and was subscribed 4.09 instances. The coupon charge is 2.5% after reaching a AAA-rating by China Lianhe Credit score Ranking on each Shangri-La and the Rmb1 billion concern. Proceeds raised from the issuance can be used for “basic company functions”, the discharge mentioned. 

A panda bond is a Chinese language Rmb denominated bond from an issuer outdoors of mainland China. 

Shangri-La Asia is a part of the Shangri-La Group and is headquartered in Hong Kong and has a regional headquarters in Singapore. IT is listed on the Hong Kong Inventory Change (HKEX) and the Singapore Change (SGX).   

Within the media launch, Chua Chee Wui, Shangri-La’s chief monetary officer and govt director, mentioned: “The profitable debut of our inaugural panda bond demonstrates buyers’ confidence in Shangri-La. This additional diversifies our funding sources and marks our first foray into the onshore Rmb capital markets, and in addition helps us handle our group’s international forex publicity and higher match our property geographical publicity.”

Zhu Lei, head of debt capital markets, funding banking division, Financial institution of China, mentioned: “That is the first-ever panda bond issued by a Hong Kong listed hospitality group. This issuance was subscribed 4.09 instances, which displays Shangri-La’s robust creditworthiness, glorious monetary and strong enterprise fundamentals”.

Additionally within the launch, Huo Da, board chairman, govt director and chief Information officer of China Retailers Securities, added: “That is the primary time we’re working with Shangri-La on company debt issuance. That is the bottom coupon charge of panda MTN for an offshore non-state-owned entity.”

Kenya Yoshiura, president, vice chairman of Mizuho Financial institution (China), mentioned: “We now have been working with Shangri-La on numerous offshore transactions for a while now and comfortable to partake in our first mainland China on-shore hospitality transaction with Shangri-La.”

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