China’s Country Garden to issue RMB 4 billion 4.95% four-year bonds

By Marisa Wong

Morgantown, W.Va., Nov. 9 – Country Garden Holdings Co. Ltd. said it set the coupon for its previously proposed RMB 4 billion of domestic corporate bonds at 4.95%.

The interest rate was determined through a bookbuilding process, according to a company announcement on Monday.

The planned bonds will have a term of four years. At the end of the second year, the issuer can adjust the coupon and investors can exercise their put option.

The company announced on Oct. 30 that it planned to issue the bonds in the fourth quarter.

GF Securities Co., Ltd. is the lead manager.

Wholly owned subsidiary Zengcheng Country Garden Property Development Co. Ltd. will be the issuer.

This will be the first tranche under the company’s previously proposed RMB 8 billion of domestic bonds.

Proceeds will be used for refinancing existing debt and for general working capital purposes.

Country Garden is a Foshan, China-based real estate developer focused on large-scale residential communities.

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