NewChina’s Haitong Securities to raise US$670 million in 5-year bonds

Haitong Securities is seeking to raise US$670 million in a five-year US dollar bond offering, four months after the Shanghai based brokerage raised US$3.9 billion in a private share placement in December.

In a statement with the Hong Kong stock exchange on Wednesday, its chairman Wang Kaiguo said the proceeds from the bond deal will be primarily used for increasing the share capital of Haitong International Securities and other general corporate purposes.

The offer price of the bonds will be 99.891 per cent of the face value, while paying a coupon rate of 3.5 per cent per year, it said.

The bonds will be marketed to professional investors only and will not be offered to retail investors in Hong Kong.

The bonds will mature on 21 April 2020.

On a separate note, Haitong International Securities, the offshore arm of China’s second-largest brokerage, raised HK$9 billion in a rights offering last month as it intends to expand its broking and margin lending businesses on the back of China’s pursuit of a market-led financial liberalisation.