By Marisa Wong
Morgantown, W.Va., Sept. 2 – Yuexiu Property Co. Ltd. said its 95% owned subsidiary, Guangzhou City Construction & Development Co. Ltd., issued its second tranche of corporate bonds, totaling RMB 3 billion, on Thursday.
The bonds consist of RMB 2.5 billion of 2.97% six-year bonds and RMB 500 million of 3.19% five-year bonds.
As previously announced, the six-year bonds have a coupon adjustment option, a call option and a put option at the end of three years.
The second tranche had an initial size of RMB 2 billion and an up to RMB 1 billion over-allotment option.
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.
In August 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.
| Issuer: | Guangzhou City Construction & Development Co. Ltd.
|
| Issue: | Corporate bonds, second 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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| Settlement date: | Sept. 1
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|
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| Six-year bonds
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| Amount: | RMB 2.5 billion
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| Maturity: | Six years
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| Coupon: | 2.97%, adjustable at the end of three years
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| Call option: | At the end of three years
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| Put option: | At the end of three years
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|
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| Five-year bonds
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| Amount: | RMB 500 million
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| Maturity: | Five years
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| Coupon: | 3.19%
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