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Fosun International Re-tapped USD600million Bond at a New Record-low Yield
Fosun International Re-tapped USD600million Bond at a New Record-low Yield


On 21 Apr 2017, Fosun International successfully priced a USD 600 million tap issuance of 5-year senior notes at 4.95% yield, following this March's USD 800 million initial issuance at 5.25% coupon rate. The tap issuance marked a new record-low yield for the Company. Credit Suisse acted as sole global coordinator, and Credit Suisse, AMTD, Credit Agricole CIB, Fosun Hani, as well as Haitong International acted as joint lead managers and joint book-runners.

The bond was re-opened in response to the keen reverse enquiry from investors after the initial issuance, adding up to a total size of USD 1.4 billion upon completion. Based on statistics since the opening of China offshore bond market, this transaction recorded the lowest yield for Chinese issuers' same maturity offshore bond issuance with equivalent ratings, and ranked number one in the market in terms of single security issuance size among comparable non-property Chinese offshore issuers. The tap issuance once again attracted 110 market investors and sophisticated institutions all around the world, such as Hong Kong, Singapore, Japan, Taiwan, UK, continental Europe, etc. The final order book was 2.5x over-subscribed with USD 1.5 billion orders. Based on the final statistics, Asian investors were allocated 93% of the tap issuance, and 7% were European investors. By investor type, 75% of the issuance was allocated to fund houses, 16% international banks, and 9% private bank clients.

All proceeds from the transaction will be used to refinance the Group's maturing and higher cost debts. Under the USD interest rate hike environment, the transaction would help the company further increase the proportion of fixed rate debt, lengthen debt maturity profile, and further optimize debt structure.

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 HKEx since July 2007 (stock code: 0656.HK). The Company was ranked No.434 on "The 2016 Global 2000" of Forbes.