By Marisa Wong
Morgantown, W.Va., Dec. 16 – KWG Property Holding Ltd. said it will issue RMB 2.5 billion of 4.94% type 1 bonds and RMB 800 million of 6.15% type 2 bonds.
The issue sizes and coupons were determined through a book-building process, according to a company announcement on Wednesday.
The domestic corporate bonds will be issued through wholly owned subsidiary Guangzhou Hejing Real Estate Development Ltd.
China Securities Co., Ltd. is the underwriter.
As previously announced, the type 1 bonds have a term of six years. The issuer will have the option to raise the coupon rate for the type 1 bonds after the end of the third year at which time investors will also have a put option.
The type 2 bonds have a term of seven years. The issuer may raise the coupon rate for the type 2 bonds after the end of five years at which point investors will also have a put option.
Proceeds will be used for general working capital purposes.
United Credit Ratings Co., Ltd. assigned an AA+ rating to the bonds.
KWG Property is a developer based in Guangzhou, China.
| Issuer: | Guangzhou Hejing Real Estate Development Ltd.
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| Issue: | Domestic corporate bonds
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| Amount: | RMB 3.3 billion
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| Underwriter: | China Securities Co., Ltd.
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| Announcement date: | Dec. 15
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| Pricing date: | Dec. 16
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| Rating: | United Credit Ratings: AA+
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| Type 1 bonds
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| Amount: | RMB 2.5 billion
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| Maturity: | Six years
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| Coupon: | 4.94%
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| Put option: | After three years
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| Type 2 bonds
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| Amount: | RMB 800 million
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| Maturity: | Seven years
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| Coupon: | 6.15%
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| Put option: | After five years
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