China Everbright plans to issue 3.22%, 3.37% six-, seven-year bonds

By Marisa Wong

Morgantown, W.Va., Nov. 23 – China Everbright Ltd. announced it will issue RMB 3 billion of six- and seven-year corporate bonds, with an up to RMB 1 billion over-allotment option.

The six-year bonds will carry a coupon of 3.22%, and the seven-year bonds will bear interest at 3.37%. The coupon rates were determined through a bookbuilding.

Everbright Securities Co. Ltd. is the lead underwriter.

There are no restrictions on how the total issue amount is to be allocated between the two types of bonds. The company and the lead underwriter will determine the proportions.

The six-year bonds will have a coupon adjustment option and put option at the end of the third year, and the seven-year bonds will have a coupon adjustment option and put option at the end of the fourth year.

This will be the company’s second tranche of corporate bonds under its up to RMB 12.8 billion planned issuance approved in June. The first tranche – RMB 4 billion of 2.92%, 3.24% five-year bonds – was issued in July.

Proceeds will be used to repay the group’s debt and to replenish its general working capital, as previously noted.

China Everbright is a Hong Kong-based financial conglomerate in China.

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