By Marisa Wong
Madison, Wis., April 28 - Citic Securities Co. Ltd. announced it issued RMB 6 billion of four-year subordinated bonds on Monday.
The bonds carry a coupon of 5.9% and are callable at the end of the first year.
This is Citic's first tranche of subordinated bonds for 2014.
As previously announced, the China Securities Regulatory Commission granted the company approval to issue up to RMB 15 billion of subordinated bonds.
In January 2013, Citic proposed onshore and offshore debt financing instruments totaling up to RMB 40 billion. Thus far, the company has issued three tranches of onshore and offshore debt instruments. The fourth and final tranche - consisting of RMB 15 billion of subordinated bonds - is expected to be completed within the first half of 2014.
According to an announcement in March, Citic is proposing further issuances of onshore and offshore corporate debt financing instruments. The company is looking to issue onshore renminbi-denominated debt financing instruments in one or more tranches as well as offshore debt financing instruments in one or more tranches denominated in dollars, renminbi or other currencies.
The combined size of the issuances will be no more than RMB 40 billion. The maturities of the instruments will not exceed 10 years.
The proposed further issuances are subject to shareholders' approval at an upcoming general meeting. If granted, the approval would be valid for 36 months.
| Issuer: | Citic Securities Co. Ltd.
|
| Issue: | Subordinated bonds
|
| Amount: | RMB 6 billion
|
| Maturity: | Four years
|
| Coupon: | 5.9%
|
| Call option: | At end of first year
|
| Settlement date: | April 28
|
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