CMPort Successfully Issued US$1.5 billion Fixed Coupon Guaranteed Notes
The Board of Directors (the “Board”) of China Merchants Port Holdings Co., Ltd. (“CMPort” or the “Company”) is pleased to announce the successful issuance of US$ 1.5 billion fixed-coupon guaranteed notes, consisting of two tranches including a 5-year tranche of US$900 million and a 10-year tranche of US$600 million (the “Notes”) on 6 August 2018. The coupon rates of the 5-year and 10-year tranches are 4.375% and 5%, and will be due by 2023 and 2028, respectively. The Notes will be listed on the Hong Kong Stock Exchange. The proceeds will be used to support the daily operation of the Company including repayment of existing loans. The Notes are rated Baa1 by Moody’s and BBB by Standard & Poor’s, both with stable outlook.
The amount of US$1.5 billion is the largest scale of issuance of notes in the history of CMPort. After pricing, there are 3.9 times and 7.5 times over-subscription for the 5-year tranche and the 10-year tranche, respectively. The successful launching of the Notes also reflects the recognition and confidence of the international investors on the Company’s future development. Bank of China (Hong Kong), DBS Bank, HSBC, MUFG Securities and UBS AG are appointed as Joint Global Coordinators of the issue, while Agricultural Bank, ANZ Bank, Mizuho Securities, Standard Chartered Bank are appointed as Joint Book Runners.
Mr. Lu Shengzhou, the Chief Financial Officer of CMPort, said, “The net gearing ratio of the Company was 21.5% as at 31 December 2017, which was comparatively low among the peers in port Industry. After the issuance of the US$1.5 billion Notes, the Company's financial status will still maintain at a healthy level, which is in line with the prudent financial policies of the Company has always adhered to.”
Mr. Lu Shengzhou further emphasised, “CMPort's strategic vision is to become the World's leading comprehensive port service provider. From 2018 until now, we have successfully acquired the second largest container terminal in Brazil - Paranaguá Container Terminal, as well as the world’s largest coal export port in Australia - Port of Newcastle. Meanwhile, CMPort energetically promote "Port-Park -City" development model. The Company is in its era with valuable opportunities for overseas expansion, the issuance of the Notes is well-prepared for our future business development. Finally, we always aim to maximise shareholder value while enhancing profitability, thereby delivering better returns for our shareholders. ”
