VTB Capital acted as joint lead manager and bookrunner on the successful placement of CNH 1.5 billion high-yield bond issue in the Reg-S format for Powerlong Real Estate Holdings Limited. Powerlong is a leading real estate company in China specializing in the development and operation of high-quality, large-scale, integrated commercial, retail and residential complexes. The bonds, which have a three year maturity, will be listed on the Singapore Stock Exchange and priced with a coupon of 10.75%.
VTB Capital participated in the transaction alongside a syndicate of global investment banks, including Bank of America Merrill Lynch, Credit Suisse, HSBC and UBS, as well as recognized regional players such as Goutai Junan and Haitong International.
Riccardo Orcel, Deputy CEO of VTB Group, Head of Global Banking at VTB Capital, said: “We are highly committed to further developing our presence in the Asian market. This placement is sound evidence of our progress in China and once again showcases VTB Capital’s expertise in the local debt capital markets. More and more clients are finding that having an Emerging Markets dedicated bank such as VTB Capital on their deal can bring value-added capabilities and commitment to a transaction. This can make a genuine difference to the success of their bond issue.”
The placement marks VTB Capital’s fourth DCM transaction for Asian issuers in 2014. VTB Capital became the only Russian investment bank that acted as a joint lead manager and joint bookrunner in the placement of a USD 300 million Reg-S high-yield bond issue for Logan Property Holdings and the placement of CNH 1 billion offshore Renminbi bonds in the Reg-S format for Beijing Capital Company Limited. VTB Capital also led the placement of a USD 125 million high-yield bond issue for Redco Properties Group Limited.
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