Yuexiu Property plans up to RMB 2 billion five-, seven-year bonds

By Wendy Van Sickle

Columbus, Ohio, May 12 – Yuexiu Property Co. Ltd. said the board of directors of its 95% owned subsidiary, Guangzhou City Construction & Development Co. Ltd., has set the maximum size for its first issuance of corporate bonds (Chengxin: AAA) in 2022 at RMB 2 billion, according to an announcement on Thursday.

The fixed-coupon bonds will be divided into two types.

Type 1 will have a five-year tenor, with an option for the issuer to adjust the coupon at the end of the third year and an option for the issuer to call the bonds and holders to sell back the bonds at the end of the third year as well.

Type 2 will have a seven-year tenor, with an option for the issuer to adjust the coupon at the end of the fifth year and an option for the issuer to call the bonds and holders to sell back the bonds at the end of the fifth year.

The coupon rates will be determined by a bookbuilding.

Proceeds will be used for repayment of the principal and interest of the company’s other existing corporate bonds.

Yuexiu is a property developer based in Hong Kong.

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