Sanyou chemical industry
The proposed bond raising is 600 million yuan, half of which is used for debt repayment source: capital state
On February 20, capital bangxun and Sanyou chemical (600409. SH) released the public issuance of corporate bonds (phase I) (epidemic prevention and control bonds) in 2020.
According to the announcement, Sanyou Chemical Co., Ltd. issued corporate bonds (hereinafter referred to as "the bonds") in 2019, which has been approved by CSRC  No. 2763 document. The bonds are issued by stages, of which Tangshan Sanyou Chemical Co., Ltd. will publicly issue corporate bonds (phase I) (epidemic prevention and control bonds) (hereinafter referred to as "the bonds") in 2020 with a scale of no more than 600 million yuan (including 600 million yuan).
The raised funds of the bonds will be used for: (1) the 300 million yuan is intended to be used to repay the interest bearing debts. By the end of September 2019, Sanyou chemical had a short-term loan balance of 3460695600 yuan, a non current liability balance of 417570000 yuan, a long-term loan balance of 114498000 yuan, a bond payable balance of 3414600300 yuan, an interest bearing liability of 33.3647 million yuan in long-term payables, and an interest bearing liability of 8471.2106 million yuan in total. Novel coronavirus (2) the remaining funds deducting the issuance cost and repayment of the company's due debts are used to supplement the company's circulating fund, which is not less than 10% of the total amount of the total fund raised to support the related business of epidemic prevention and control, including, but not limited to, the raw materials needed for the production of new coronavirus pneumonia related products. The raised funds of this bond for epidemic prevention and control are mainly used for the production of clean high whiteness viscose staple fiber, sy-z170 special resin, sodium hypochlorite and other products.
Capital state understands that the current bond of Sanyou Chemical Co., Ltd. has a term of 3 years, a coupon rate inquiry range of 3.50% - 4.50%, a par value of 100 yuan each, and an issue price of 100 yuan per bond. The credit rating of the bonds is AA +. In addition, the interest payment date of this bond is February 24 of 2021-2023, and the maturity date is February 24, 2023.
Sanyou chemical said that the offline issuance of the bonds is only for qualified investors. QFII participates in offline subscription by signing subscription agreement with the main underwriter. The minimum number of offline subscriptions for QFII is 5000 (50000, 5 million yuan), and those over 5000 must be an integral multiple of 5000 (50000, 5 million yuan). The term of offline issuance is 2 trading days, i.e. the first day of issuance is from February 24, 2020 to February 25, 2020.
Prior to the listing of the bonds, the net assets of Sanyou chemical at the end of the latest period were RMB 11.91 billion (total owner's equity in the consolidated statements as of September 30, 2019), and the asset liability ratio according to the consolidated statements was 53.40% (the asset liability ratio according to the parent company was 42.20%); Prior to the listing of the bonds, the average annual distributable profit of Sanyou chemical in the last three fiscal years is RMB 1.413 billion (the average net profit attributable to the owners of the parent company in the consolidated statements 2016-2018), which is expected to be no less than 1.5 times of the one-year interest of the bonds.
Sanyou chemical is mainly engaged in the production and sales of viscose staple fiber, soda ash, caustic soda, PVC, mixed methylcyclosiloxane and other products. The company was listed on June 18, 2003.