By Marisa Wong
Morgantown, W.Va., April 26 – KWG Property Holding Ltd. announced it will issue two types of bonds totaling RMB 6.5 billion.
KWG will issue RMB 1 billion of type 1 bonds with a coupon of 5.6% and RMB 5.5 billion of type 2 bonds with a coupon of 5.8%, according to a company announcement.
The issue sizes and coupons were set following a book-building exercise.
The type 1 bonds have a term of seven years, and after four years the issuer will be able to adjust the coupon and investors will have a put option. The type 2 bonds also have a term of seven years, but the coupon adjustment option and put option will be after the end of the fifth year.
The domestic corporate bonds will be issued through wholly owned subsidiary Guangzhou Tianjian Real Estate Development Ltd.
China Securities Co., Ltd. is the underwriter for the issue.
Proceeds will be used for general working capital purposes.
KWG Property is a developer based in Guangzhou, China.
| Issuer: | Guangzhou Tianjian Real Estate Development Ltd.
|
| Issue: | Domestic corporate bonds
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| Amount: | RMB 6.5 billion
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| Maturity: | Seven years
|
| Underwriter: | China Securities Co., Ltd.
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| Announcement date: | April 7
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| Pricing date: | April 26
|
|
|
| Type 1
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| Amount: | RMB 1 billion
|
| Coupon: | 5.6%, may be adjusted after four years
|
| Put option: | After end of fourth year
|
|
|
| Type 2
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| Amount: | RMB 5.5 billion
|
| Coupon: | 5.8%, may be adjusted after five years
|
| Put option: | After end of fifth year
|
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