Sunac China unit talks RMB 1 billion second tranche bonds at 3.8%-4.8%

By Marisa Wong

Morgantown, W.Va., Aug. 31 – Sunac China Holdings Ltd. announced that wholly owned subsidiary Tianjing Sunac Zhidi Co., Ltd. plans to offer RMB 1 billion of non-guaranteed bonds.

These second tranche 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.

The coupon will be in the range of 3.8% to 4.8%. The final interest rates will be determined through a book-building process.

Shenwan Hongyuan Securities Underwriting Sponsor Co., Ltd. will act as lead underwriter, and China Securities Co., Ltd. will act as joint underwriter for the issuance.

The bonds are expected to be issued on Sept. 1.

As previously announced, 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 recently issued RMB 5 billion of first tranche bonds, as reported.

Sunac is a Tianjin, China-based residential and commercial property developer.

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