Hong Kong-Based Enterprise Marks Milestone in Onshore Bond Market
Shangri-La Asia Limited (HKEX: 00069/SGX: S07) has successfully issued its first 5-year Panda Bond, raising RMB 400 million. This landmark issuance, a first for a Hong Kong-based enterprise, was part of Shangri-La’s RMB 20 billion MTN Programme. Alongside the 5-year tranche, a RMB 600 million 3-year MTN was also issued. This follows the RMB 1 billion 3-year note issued in June 2024.
The 3-year note, with a coupon rate of 2.27%, was subscribed 3.25 times, while the 5-year note, with a 2.5% coupon, was subscribed 1.98 times. Both tranches received AAA ratings from China Lianhe Credit Rating Co., Ltd., consistent with Shangri-La’s earlier issuance. The proceeds from this issuance will be used for general corporate purposes.
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Comments from Key Participants
Mr. Zhu Lei, Head of Debt Capital Markets, Investment Banking Department at Bank of China (BOC), highlighted the significance: “This is the first 5-year Panda Bond issuance by a Hong Kong-based enterprise. The 3-year Panda MTN coupon rate is a record low, affirming investor confidence in Shangri-La.”
Mr. Li Shouyi, Member of the Investment Banking Committee and Head of Division I, Fixed Income and Financing Department at China Merchants Securities (CMS), expressed enthusiasm for the continued collaboration: “This is our second time working with Shangri-La following the successful inaugural issue in June. We look forward to continuing this successful relationship.”
Mr. Wang Xinghai, Executive Vice President of China Merchants Bank (CMB) Shenzhen Branch, commented on the partnership: “CMB is delighted to participate in Shangri-La’s Panda Bond issuance. We are encouraged by the good results and look forward to continuing our all-round strategic cooperation.”
Mr. Alfred Wu, Head of Corporate Finance and Treasury at Shangri-La, emphasized the benefits of the issuance: “This successful issuance allows us to continue expanding and deepening our funding sources onshore while better matching our currency and asset geographical exposure. We are very pleased with the strong support received from investors.”
About the Organizations
Bank of China (BOC), established in 1912, is the longest continuously operating Chinese bank. It offers a wide range of financial services and is the most globalized and integrated Chinese bank, with operations in 64 countries and regions.
China Merchants Securities (CMS), a leading investment bank in China, provides comprehensive professional services including wealth management, investment banking, and asset management. Supported by China Merchants Group, CMS is known for its market-oriented approach and innovation in the capital market.
China Merchants Bank (CMB), China’s first joint-stock commercial bank, has grown into a significant banking group listed in Shanghai and Hong Kong. CMB is known for its customer-centric and tech-driven approach, ranking 179th on the Fortune Global 500 List and receiving the “Best Bank in China” award from Euromoney for five consecutive years.
Shangri-La Group, one of the world’s premier developers and managers of hotel and investment properties, owns and manages over 100 hotels globally. The Group is renowned for its substantial pipeline of upcoming projects and its strong presence in Asia.
This successful issuance marks a significant milestone for Shangri-La and underscores investor confidence in the company’s financial stability and strategic direction.
Source: Shangri-La Launches First 5-Year Panda Bond by a Hong Kong-Based Enterprise
