Hong Kong’s Yuexiu to offer up to RMB 3 billion five-, six-year bonds

By Marisa Wong

Morgantown, W.Va., Aug. 25 – Yuexiu Property Co. Ltd. said its 95% owned subsidiary, Guangzhou City Construction & Development Co. Ltd., will issue a second tranche of corporate bonds with an initial size of RMB 2 billion and an up to RMB 1 billion over-allotment option.

The bonds will be divided into two types: six-year bonds with a coupon adjustment option, a call option and a put option at the end of three years and five-year bonds with a fixed coupon.

The company said it will begin marketing the second-tranche bonds and will determine the coupon rates through a book-building process.

In July 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.

Earlier this month the company issued its first tranche, consisting of RMB 1 billion of 2.95% three-year bonds and RMB 2 billion of 3% five-year bonds.

Proceeds from the second tranche will be used to repay bank loans and to replenish liquid capital.

Yuexiu is a property developer based in Hong Kong.

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