Yuexiu Property offers up to RMB 1.5 billion of bonds in two parts

By Mary-Katherine Stinson

Lexington, Ky., Dec. 19 – Yuexiu Property Co. Ltd.’s 95% owned subsidiary Guangzhou City Construction & Development Co. Ltd. is preparing for its fourth tranche of corporate bonds (Chengxin: AAA) under its approved application to sell up to RMB 9.4 billion of bonds, according to a notice.

As with the company’s previous three tranches of corporate bonds, issued Feb. 21 for a total of RMB 1.9 billion, March 24 for a total of RMB 1.5 billion and June 13 for a total of RMB 2 billion, respectively, the fourth tranche will also come in two parts.

The fourth tranche will consist of a fixed-rate five-year bond and a fixed-rate seven-year bond.

The coupon rate will be determined via the bookbuilding process.

The five-year bonds, as with previous offerings, will give the issuer the opportunity to reset the rate in the third year. The seven-year bonds will have the opportunity to reset in the fifth year.

On the respective reset dates, each tranche of bonds will be both callable and putable.

Proceeds will be used to repay interest-bearing borrowings of the issuer and its subsidiaries.

Yuexiu is a property developer based in Hong Kong.

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