Hong Kong’s Yuexiu sets coupons for upcoming bonds at 2.95%, 3.15%

By Marisa Wong

Morgantown, W.Va., Sept. 26 – Yuexiu Property Co. Ltd. said its 95% owned subsidiary, Guangzhou City Construction & Development Co. Ltd., has set the coupon rates for its third tranche of corporate bonds totaling RMB 2 billion.

Based on book-building results, the coupon rate will be 2.95% for the five-year bonds and 3.15% for the seven-year bonds.

As previously announced, the third-tranche 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 issue the bonds Monday through Wednesday.

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. Earlier this month the company issued its second tranche, 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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