Seazen Plans Up to CNY 1.5B China Bond Insurance-Guaranteed MTNs, New Onshore Corporate Bond Issuance

Seazen Group recently told certain investors that it is planning a new round of up to CNY 1.5 billion ($205.3 million) three-year medium-term notes with guarantee from China Bond Insurance Co. Ltd., while it is also seeking to issue new onshore corporate bonds, two sources familiar with the matter said.

The company said that it currently expects to launch the China Bond-guaranteed MTNs as soon as in early November with an expected coupon ranging from 3.3% to 4.3%, said the same sources. Seazen is in the process of working with China Bond Insurance on potential collateral of the deal, which one of the sources said is likely to be its Wuyue Plaza shopping malls.

As Reorg reported, Seazen management said in an August investor call that it planned to use the unencumbered Wuyue Plaza assets on any future China Bond MTN issues. At the time, Seazen said it had 39 unencumbered plazas in operation and 28 more in the pipeline, as reported.

In July, Seazen Group’s onshore subsidiary Seazen Holdings issued CNY 850 million 4% three-year MTNs with full guarantee from China Bond Insurance, as reported.

In June, Seazen Holdings successfully issued CNY 1.1 billion dual-tranche credit enhanced corporate bonds, with CNY 400 million three-year 4.5% guaranteed bonds due 2026, and CNY 700 million two-year 6.3% due 2025 bonds supported by credit default swaps, as reported.

Last year, Seazen Holdings also issued CNY 2 billion three-year 4.3% MTNs in December and CNY 1 billion three-year 3.28% MTNs in September; both are guaranteed by China Bond Insurance.

Seazen could not be reached for immediate comment.

Below is Seazen's capital structure: