Hong Kong’s Yuexiu set to offer RMB 2 billion five-, seven-year bonds

By Wendy Van Sickle

Columbus, Ohio, Sept. 23 – Yuexiu Property Co. Ltd. said its 95% owned subsidiary, Guangzhou City Construction & Development Co. Ltd., will issue a third tranche of corporate bonds with a size of RMB 2 billion.

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

The company said it will begin marketing the third-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.

In August, the company issued the first two tranches, the first consisting of RMB 1 billion of 2.95% three-year bonds and RMB 2 billion of 3% five-year bonds and the second consisting of RMB 2.5 billion of 2.97% six-year bonds and RMB 500 million of 3.19% five-year bonds.

Proceeds from the third 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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