The first LGFV and SBLC deal for Admiralty Harbour
On 22 May 2020, Admiralty Harbour successfully assisted Tianjin Lingang Investment Holding Co., Ltd. (the “Company”) in its issuance of US$68m 3.7% senior notes due 2023 (the “Transaction”). The Transaction marks the beginning of Admiralty Harbour’s venture into local government funding vehicle (LGFV) bonds and Standby Letter of Credit (SBLC) structure. China Zheshang Bank Co., Ltd. Tianjin Branch provided the SBLC for the Transaction, while Admiralty Harbour acted as Joint Bookrunner and Joint Lead Manager.
Tianjin Lingang Investment Holding Co., Ltd. is indirectly wholly owned by Tianjin State-owned Assets Supervision and Administration Commission of the State Council (Tianjin SASAC). The Company is the sole construction entity in Tianjin’s Lingang Area, focusing on coastal reclamation/coastal mudflat development and infrastructure construction. In addition, it is also one of the major entities in Lingang Area that engages in logistics services and other businesses. The company recorded total assets of RMB 9.1 billion and total revenue of RMB 6.3 billion at the end of 2019. The SOE profile with solid SBLC backing transaction profile drew solid interest from the market.