CICC, acting as Joint Global Coordinator, successfully assisted AAC Technologies Holdings Inc. (2018.HK, “AAC Technologies” or the “Company”) to complete its debut international bond issuance on Nov 20, 2019. The bond is a 3.000% coupon USD388 million Senior Fixed-rate Notes, with tenor of 5-year (non-callable for the first 3 years). Both the issuer and the notes are rated Baa1 by Moody’s. AAC Technologies is a scarce investment grade non-property developer issuer in the Chinese corporate international bond market. The debut issuance marks a significant milestone in both the Chinese corporate international bond market and international financing of TMT industry. 

AAC Technologies is one of the world’s leading solutions providers for smart devices, offering advanced solutions enabled by its cutting-edge and proprietary technologies to the global consumer electronics industry. The Company has leading technologies in materials research, simulation, algorithms, design, automation and process development, and provided top microtechnique solution in acoustics, optics, electromagnetic drives and precision mechanics and MEMS components. The Company ranked the first by net profit among Chinese electronics component supplier. Meanwhile it is one of the world’s top suppliers of miniaturised speakers and horizontal vibration motors. As the swift development of the Company’s optics sector, it is expected that AAC Technologies would be one of the world’s top 3 suppliers of plastic lenses in 2019.

As Joint Global Coordinator, CICC led the project execution and made significant contribution to the success of the deal. CICC also assisted and guided AAC Technologies to efficiently complete the relevant regulatory approval, deal preparation, and marketing and distribution etc., and launched the deal at the favorable issuance window during the promising progress between China–United States trade talk. CICC, as the roadshow logistics bank, accompanied the Company to conduct roadshow in Hong Kong and Singapore, and have in-depth communication with over 100 leading international investors. The roadshow team highlighted the comparatives advantages as a global leading solutions provider for smart devices and the Company’s superior position in the global consuming electronics industry. The investors’ interest were raised as the Q3 result released and the bond roadshow followed, which were also reflected in the Company rising stock price, and this subsequently helped the Company to achieve wide-recognition during the bond issuance.

The precise pricing strategy suggested by the Joint Global Coordinators enabled the issuance to be highly appraised by international investors, and achieved a great success in the end. The bond was announced with initial price guidance of T5+175bps on the pricing day, which attracted orders from many high quality international investors which led to a strong orderbook of over USD 1.8 billion. Backed by the quality orders, the final price was tightened 25bps to T5+150bps, realizing a 3.1-times oversubscription volume. The overwhelming demand demonstrated global international investors’ high recognition to AAC Technologies’ strong credit profile. This bond issuance not only broadens AAC’s international financing channels, but also improves its capital market investor coverage and helps the Company to secure low cost funds to further develop its core businesses in the anticipation of 5G network. 

CICC, with in-depth coverage of high-quality private enterprises (POE), has extensive experience in serving Chinese non-real estate private enterprises in the international debt capital market. The issue marks another landmark transaction facilitated by CICC as Global Coordinator, following the preceding benchmark deal of Car Inc. USD bonds, Grand Auto USD bonds etc. This is also CICC’s first investment grade international bond issuance by non-real estate Chinese private enterprises, acting as the project global coordinator. CICC was highly recognized by the Company with our high-quality professional services, which further solidifies CICC’s leading position as fixed-income underwriter in the international capital market.