By Marisa Wong
Morgantown, W.Va., March 28 – KWG Property Holding Ltd. priced RMB 2.2 billion of six-year and 10-year bonds, according to a company announcement.
Specifically, the company priced RMB 600 million of six-year type 1 bonds with a coupon of 3.9% and RMB 1.6 billion of 10-year type 2 bonds with a coupon of 4.8%.
The company previously announced that it would offer up to RMB 1 billion of bonds with an up to RMB 1.2 billion over-allotment option.
The type 1 bonds were expected to bear interest at 3¼% to 4.8%, and the type 2 bonds were expected to carry a coupon of 4¼% to 6%. The final coupon was determined through a book-building process.
After three years the issuer will be able to increase the coupon on the type 1 bonds, and after five years the issuer may raise the rate on the type 2 bonds.
Investors will also have a put option at the end of three years and five years, respectively.
The bonds were issued through wholly owned subsidiary Guangzhou Tianjian Real Estate Development Ltd.
China Securities Co., Ltd. is the underwriter.
The bonds were sold from March 25 to March 28.
Proceeds will be used for general working capital purposes.
China Chengxin Securities Ratings Co., Ltd. assigned a rating of AAA to the bonds.
KWG Property is a developer based in Guangzhou, China.
| Issuer: | Guangzhou Tianjian Real Estate Development Ltd.
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| Issue: | Domestic corporate bonds
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| Amount: | RMB 2.2 billion
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| Underwriter: | China Securities Co., Ltd.
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| Offer period: | March 25-March 28
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| Rating: | China Chengxin: AAA
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| Type 1 bonds
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| Amount: | RMB 600 million
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| Maturity: | Six years
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| Coupon: | 3.9%, may be increased after three years
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| Put option: | At the end of three years
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| Price talk: | 3¼%-4.8%
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| Type 2 bonds
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| Amount: | RMB 1.6 billion
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| Maturity: | 10 years
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| Coupon: | 4.8%, may be increased after five years
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| Put option: | At the end of five years
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| Price talk: | 4¼%-6%
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