China Jinmao’s Franshion unit to sell RMB 2.2 billion five-year bonds

By Tali Rackner

Norfolk, Va., Dec. 7 – China Jinmao Holdings Group Ltd.’s indirect wholly owned subsidiary, Franshion Properties Investment Management (Shanghai) Co., Ltd., plans to issue RMB 2.2 billion of domestic corporate bonds. The bonds will be guaranteed by China Jinmao.

The bonds have a term of five years.

The coupon is expected to be between 3½% and 4.2% and will be determined based on the book-building process with the lead underwriters.

After three years, the coupon may be adjusted and investors may sell back their bonds.

As previously reported, the China Securities Regulatory Commission approved the company’s application for the proposed bonds on Nov. 24, according to a company announcement.

The bonds will be issued in a single tranche within six months.

Citic Securities Co., Ltd. will act as lead underwriter, and Goldman Sachs Gao Hua Securities Co. Ltd. will act as co-lead underwriter.

Proceeds will be used to repay bank loans and to replenish general working capital.

China Jinmao is a Hong Kong-based investment holding company that invests in and develops real estate in mainland China.

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