By Marisa Wong
Morgantown, W.Va., Aug. 4 – Yuexiu Property Co. Ltd. said its 95% owned subsidiary, Guangzhou City Construction & Development Co. Ltd., issued RMB 3 billion of bonds on Thursday.
The company issued RMB 1 billion of 2.95% three-year bonds and RMB 2 billion of 3% five-year bonds.
The company had offered RMB 1.5 billion of bonds with an up to RMB 1.5 billion over-allotment option.
The coupon rates for the two types of bonds were determined through a book-building process.
The coupon rate may be adjusted at the end of the third year for the five-year bonds.
The five-year bonds will also be callable and putable at the end of the third year.
The company had announced last week that the China Securities Regulatory Commission approved the public issue of guaranteed interest-bearing corporate bonds totaling up to RMB 8 billion. The company first proposed the bonds in May and named Guangzhou Securities Co., Ltd. and Jiuzhou Securities Co., Ltd. as the joint lead underwriters.
Proceeds from the first-tranche bonds will be used to repay bank loans and to replenish liquid capital.
Yuexiu is a property developer based in Hong Kong.
Issuer: | Guangzhou City Construction & Development Co. Ltd.
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Issue: | Corporate bonds, first tranche
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Amount: | RMB 3 billion
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Underwriters: | Guangzhou Securities Co., Ltd. and Jiuzhou Securities Co., Ltd.
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Offer period: | Aug. 1 to Aug. 3
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Settlement date: | Aug. 4
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Type 1 bonds
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Amount: | RMB 1 billion
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Maturity: | Three years
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Coupon: | 2.95%
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Type 2 bonds
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Amount: | RMB 2 billion
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Maturity: | Five years
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Coupon: | 3%, may be adjusted at the end of the third year
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Call option: | At the end of the third year
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Put option: | At the end of the third year
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