By Marisa Wong
Morgantown, W.Va., Aug. 15 – Sunac China Holdings Ltd. announced that wholly owned subsidiary Sunac Real Estate Group Co., Ltd. will issue RMB 1.2 billion of 3.44% five-year bonds and RMB 2.8 billion of 4% seven-year bonds.
The company determined the issue sizes and coupons following a book-building process.
The company announced last week that it planned to offer RMB 1 billion of non-guaranteed bonds with an over-allotment option for RMB 3 billion of additional bonds.
These first-tranche bonds consist of two types. 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 have a term of seven years, with an option to increase the coupon rate after the end of the fifth year and also a put option.
The coupon for the type 1 bonds was talked at 3% to 4.2%, and the coupon for the type 2 bonds was talked at 3½% to 5%.
Guotai Junan Securities Co., Ltd. is the lead underwriter, with China Securities Co., Ltd. as joint underwriter for the issuance.
The offer period will run from Aug. 15 to Aug. 16.
The China Securities Regulatory Commission had approved in June Sunac’s proposed issuance of up to RMB 4 billion of domestic corporate bonds.
Sunac is a Tianjin, China-based residential and commercial property developer.
| Issuer: | Sunac Real Estate Group Co., Ltd.
|
| Issue: | Domestic corporate bonds, first tranche
|
| Amount: | RMB 4 billion
|
| Underwriters: | Guotai Junan Securities Co., Ltd. (lead), China Securities Co., Ltd. (joint)
|
| Offer period: | Aug. 15-Aug. 16
|
|
|
| Type 1
|
| Amount: | RMB 1.2 billion
|
| Maturity: | Five years
|
| Coupon: | 3.44%, adjustable after the end of the third year
|
| Put option: | After the end of the third year
|
| Talk: | 3% to 4.2%
|
|
|
| Type 2
|
| Amount: | RMB 2.8 billion
|
| Maturity: | Seven years
|
| Coupon: | 4%, adjustable after the end of the fifth year
|
| Put option: | After the end of the fifth year
|
| Talk: | 3½% to 5%
|
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