China’s Country Garden sets 5.1% coupon for RMB 4 billion of bonds

By Wendy Van Sickle

Columbus, Ohio, Dec. 7 – Country Garden Holdings Co. Ltd. said it set the coupon for its previously proposed RMB 4 billion second tranche of domestic corporate bonds at 5.1%.

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.

GF Securities Co., Ltd. and CMS Securities Co. Ltd. are the joint lead managers.

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

This is the second of two tranches under the company’s 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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