hainan

GRAND CHINA AIR (HK) GUARANTEED SGD 3Y
_ New Grand China Air (HK) SGD 3Y announced post roadshow. Deal is anchored
– Guarantors: Hainan Airlines Co. Ltd. and Grand China Air Co. Ltd.
– Initial price guidance: 6.25% area
– Issue size: TBC
– Timing: As early as today

Comparable Bonds:
Hainan Airlines 6.25% 2017 CNH – 99.75, 6.35% which swaps to 4.50% in SGD (indicative)
Singapore Airline 3.22% 2020 SGD – 2.82% indicative yield

Grand China Air is managed under a parent company called Grand China Airlines Holding Company (GCAHC) which is held jointly by Hainan province government (48.6%), George Soros (18.6%), and the HNA group (32.8%).

Grand China Airlines Holding Company owns 29.06% of Hainan Airlines, a listed company in Shanghai Composite which is their cash-cow although their revenue is growing a lot more than their operating …