China’s KWG gives coupon, term details in up to RMB 3.3 billion bonds

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – KWG Property Holding Ltd. gave details of its plans to issue up to RMB 3.3 billion of domestic corporate bonds through wholly owned subsidiary Guangzhou Hejing Real Estate Development Ltd. in a Monday notice.

The issuer said it plans to issue the bonds in a single tranche with the right of over-allotment.

The domestic bonds consist of two types. Type 1 will have a six-year term and a coupon of 4.2% and 5.7%. After three years, the issuer will have an option to raise the coupon, and holders will have a put option.

Type 2 will have a seven-year term, with a put option and an option for the coupon to be raised after five years. The coupon rate will be determined by a book-building process.

The bonds are to be issued on Wednesday or Thursday.

China Securities Co., Ltd. will act as underwriter for the issue.

Proceeds will be used for general working capital purposes.

United Credit Ratings Co., Ltd. has assigned an AA+ rating to the bonds.

KWG Property is a developer based in Guangzhou, China.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.