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Fosun International Issues USD Bond at Lowest-ever Coupon Successfully Replacing Existing Indebtedness and Further Optimizing Financing Structure

On 16 March 2017, Fosun International Limited (656.HK, “Fosun International” or the “Company”) successfully priced a US$800 million five-year non-call three years senior bond, with Credit Suisse acting as Sole Global Coordinator, and Credit Suisse, AMTD, Fosun Hani, Haitong International, as well as Huarong Financial acting as Joint Lead Managers and Joint Bookrunners.

 

Fosun International is a leading investment group taking roots in China with a global foothold and a select portfolio of businesses growing with China’s economic development. It is one of China’s largest investment groups with over 20-year track record, and was listed on the Main Board of the Hong Kong Stock Exchange since July 2007. The Company was ranked No.434 on “The 2016 Global 2000” of Forbes.

 

This is the first USD bond transaction by Chinese issuer in Asia market after the Federal Open Market Committee raised benchmark rates by 25bps at their March meeting. The Company’s management precisely captured the favorable market window to launch, and attracted over US$3.5 billion of orders from prestigious fund houses, asset managers, international banks and private banks based in Hong Kong, Singapore, Germany, Belgium, Switzerland, etc, successfully revising the final price guidance to 5.250% and closed the US$800 million issuance.

 

The final order book was over 4.4x oversubscribed. Asian investors were allocated 95% of the deal, European investors received 5%. By investor type, 49% were allocated to Fund Managers, 38% to Banks and 13% to Private Banks.

 

The use of proceeds would be refinancing as well as replacement of indebtedness with relatively high costs. Total debts will not increase as a result of this exercise.

 

This transaction consisted of over 230 investors including reputable Asian and European institutional investors, which marked strategic importance to the Company's continued efforts to diversify its financing channels and enhance its influence in the global markets.

 

Through this transaction, Fosun has locked in relatively lower financing costs for a longer maturity in the current market environment, and dynamically increased the proportion of fixed rate liabilities. It also marked Fosun’s largest size and lowest coupon bond transaction in history, and making this transaction another classic case in recent Asia USD bond primary market.