By Marisa Wong
Madison, Wis., July 7 – China’s Evergrande Real Estate Group Ltd. said it issued RMB 15 billion of domestic bonds on Tuesday.
The bonds include RMB 6.8 billion of 5.3% four-year bonds and RMB 8.2 billion of 6.98% seven-year bonds.
The coupon for the four-year bonds may be increased after the end of the second year, and the coupon for the seven-year bonds may be increased after the fifth year.
The bonds are also putable after two years and five years, respectively.
This is the company’s second tranche of domestic corporate bonds. As announced on June 17, the company applied to issue up to RMB 20 billion of domestic corporate bonds in stages.
The initial tranche was for RMB 5 billion of five-year bonds. Price talk ranged from 4.3% to 5.8%.
The first tranche is putable at the end of the third year, at which time the company may elect to increase the coupon.
Evergrande previously announced Guotai Junan Securities Co. Ltd., Citic China Securities Co. Ltd. and China Merchants Securities Co., Ltd. as joint lead underwriters.
The real estate developer is based in Guangzhou, China.
| Issuer: | Evergrande Real Estate Group Ltd.
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| Issue: | Domestic corporate bonds, second tranche
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| Amount: | RMB 15 billion
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| Underwriters: | Guotai Junan Securities Co. Ltd., Citic China Securities Co. Ltd. and China Merchants Securities Co., Ltd.
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| Settlement date: | July 7
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| Four-year bonds
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| Amount: | RMB 6.8 billion
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| Maturity: | Four years
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| Coupon: | 5.3%, may step up at end of second year
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| Put option: | At end of second year
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| Seven-year bonds
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| Amount: | RMB 8.2 billion
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| Maturity: | Seven years
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| Coupon: | 6.98%, may step up at end of fifth year
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| Put option: | At end of fifth year
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