On 29 May 2020, Admiralty Harbour acted as a Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager in assisting Sichuan Languang Development Co., Ltd.’s (600466.SH), successful issuance of US$250m 11.0% senior unsecured bonds due in June 2022. The issuing yield was price at 11.5%, marking a significant 37.5bps tightening from the IPG.
The Company is rated B1 (Stable) by Moody’s and B+ (Stable) by S&P, the expected issue rating is B2 (Stable) by Moody’s and B (Stable) by S&P. The successful issuance is a testimony of the importance of forward planning and close collaborating between issuers and managers. Admiralty Harbour alongside with the Company management seized the proper market window despite great macro challenges and deteriorating fundamentals. The fund raised has greatly alleviated the liquidity pressure posed by the Company’s expiring bonds in September 2020. Total book was over 4x of issue size, a proven sign that despite overall cautious market sentiment, order momentum are still strong when issuances are effectively priced.
About Sichuan Languang
Founded in 1993, the Parent Guarantor has developed into a comprehensive real estate development enterprise in the PRC. With more than 20 years of experience and primarily engaging in the businesses of real estate and healthcare, the Company conduct its primary business in the real estate sector. Moreover, the Parent has achieved significant progress in the pharmaceutical and 3D bio-printing business segments and developed more invention and researches to promote the application of the related key technologies and products. For the years ended December 31, 2017, 2018 and 2019, its operating revenue from real estate business was RMB22,916.2 million, RMB28,486.8 million and RMB36,415.0 million respectively, accounting for 93.33%, 92.42% and 92.1% of the total revenues for the respective years.