Hong Kong’s Yuexiu sets coupons for upcoming bonds at 2.97%, 3.19%

By Marisa Wong

Morgantown, W.Va., Aug. 29 – Yuexiu Property Co. Ltd. said its 95% owned subsidiary, Guangzhou City Construction & Development Co. Ltd., has set the coupon rates for its second tranche of corporate bonds.

Based on book-building results, the coupon rate will be 2.97% for the six-year bonds and 3.19% for the five-year bonds.

As previously announced, the second-tranche 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 second tranche has an initial size of RMB 2 billion and an up to RMB 1 billion over-allotment option.

The company said it will issue the bonds on Monday and Tuesday.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.