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Sunac China sets issue size at RMB 5 billion and coupons at 4½%, 5.7%
By Marisa Wong
Morgantown, W.Va., Aug. 14 – Sunac China Holdings Ltd. announced that wholly owned subsidiary Tianjing Sunac Zhidi Co., Ltd. and the lead underwriter for its first-tranche bonds have set the total issue size at RMB 5 billion.
The company plans to issue RMB 2.5 billion of type 1 bonds and RMB 2.5 billion of type 2 bonds.
The coupon will be fixed at 4½% for the type 1 bonds and 5.7% for the type 2 bonds.
Type 1 bonds will have a term of five years and include an option to increase the coupon rate after the end of the third year as well as a put option. Type 2 bonds will also have a term of five years.
The company previously announced that it planned to offer RMB 3 billion of non-guaranteed bonds with an over-allotment option for RMB 3 billion of additional bonds.
On Thursday, the company said it planned to issue RMB 2 billion of type 1 bonds and RMB 1 billion of type 2 bonds.
The coupon for the type 1 bonds was talked at 3½% to 5½%, and the coupon for the type 2 bonds was talked at between 4.2% and 6.2%. The final interest rates were determined through a book-building process.
Shenwan Hongyuan Securities Underwriting Sponsor Co., Ltd. is acting as lead underwriter and China Securities Co., Ltd. as joint underwriter for the first-tranche bonds.
The offer period will run from Aug. 14 to Aug. 17.
As reported, the China Securities Regulatory Commission approved Sunac’s proposed issuance of up to RMB 6 billion of domestic corporate bonds earlier this month.
The company had said it plans to offer the bonds in tranches, with the first tranche to be completed within 12 months and the remaining tranches to be completed within 24 months.
Sunac is a Tianjin, China-based residential and commercial property developer.
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