Moody’s: Guangzhou R&F unaffected by new notes

Moody's Investors Service said that Guangzhou R&F Properties Co., Ltd.'s issuance of dollar-denominated notes has no immediate impact on its Ba3 corporate family rating or R&F Properties (HK) Co. Ltd.’s B1 corporate family rating.

The outlooks remain stable.

On Jan. 2, Guangzhou R&F announced that Easy Tactic Ltd., a wholly owned subsidiary of R&F Properties (HK), issued $265 million notes due 2022.

The notes will be guaranteed by R&F Properties (HK) and supported by a keepwell deed and an equity interest purchase undertaking between Guangzhou R&F, R&F Properties (HK) and the trustee.

R&F Properties (HK) is a wholly owned subsidiary of Guangzhou R&F.

Bond proceeds will be mainly used for the company's overseas projects and general working capital purposes, including the refinancing of part of its offshore bonds.

"The new notes issuance will improve the company's liquidity and lengthen its debt maturity profile. The lower coupon of this new notes – versus previous USD notes – will also reduce the company's funding costs," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

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