- Fosun International Becomes the First Chinese Privately-owned Enterprise to Issue Euro Currency Bond in a Public Offering Successfully
- Release Time: Oct 31, 2019
SHANGHAI, 31 Oct 2019 - Fosun International Limited (“Fosun International”; HKEx stock code: 00656) announced yesterday that it successfully issued €400 million 3.5-year Senior Unsecured Notes in a public offering on the Irish Stock Exchange. At 2:30pm Beijing time/ 7:30am European time, on 30 Oct, the company announced the deal with Initial Pricing Guidance (“IPG”) of 4.875% area. The bookbuilding momentum was strong and orderbook grew rapidly to surpass €800 million in two hours. In the afternoon of European time, orderbook continued to swell to peak at €2.5 billion. The final landing of 4.35% represented a 52.5bps tightening from the IPG. The successful issuance marked another milestone of Fosun International in the international bond markets, following its debut USD bond offering back in 2011.
It is the first time for a Chinese enterprise to issue high-yield euro bond in a public offering, and a Chinese privately-owned enterprise to issue senior unsecured bond in the European market on its standalone credit ratings.. The successful issuance not only broadened Fosun International’s offshore financing channels, but also set a new benchmark for enterprises in China and the emerging markets to go international and attract the participation of international capital in corporate financing. The sustained momentum of bookbuilding shows that European bonds investors have strong confidence in the operating condition and stable long-term development of Fosun International in the future. Meanwhile, under high entry barriers set by European investors, Fosun endeavors to further improve its capabilities in corporate governance, environmental protection, social responsibilities, and credit management, and to enhance the level of internationalization and corporate transparency of the enterprise.
The bond issuance was supported by over 200 high-quality investment institutions across countries and regions including Europe, Singapore, Hong Kong, and Taiwan. Final orderbook amounted to over €2.3 billion (reaching 5.7-times oversubscription). In terms of investor mix, of which 82% of the orders came from fund managers and insurers with the rest of 18% came from commercial banks and private banks. In terms of geographical distribution, 47% orders came from continental Europe, 24% the UK, 21% Hong Kong, 6% Singapore and 2% from Taiwan.
Some of the investors of the euro bond are investors of Fosun International’s USD bond. And through extensive marketing exercises over the years, Fosun International was able to bring in new investors who together have provided a strong boost to the bookbuilding momentum. In return, the issuance also provided a safe and reliable, high-quality assets with steady long-term return to global bond investors. The Company would like to extend its gratitude to both existing and new partners who showed great support in this transaction, with a hope that we can share the fruits of development and prosperity from Company’s long-term growth. And we look forward to the continuous support from investors in the future.
Fosun International Limited is a technology-driven consumer group that has been listed on the main board of the Hong Kong Stock Exchange (00656.HK) since 2007. Founded in 1992, Fosun operates three business lines, in Health, Happiness and Wealth, creating world-class products and services for families around the world. In 2018, Fosun recorded revenues of RMB 109.4 billion (c.US$ 16.5 billion) with total assets worth RMB 681.51 billion (c.US$ 99.13 billion) as of 30 June 2019.