Genertec Universal approved for up to RMB 2 billion renewable bonds

By William Gullotti

Buffalo, N.Y., Dec. 19 – China Universal Leasing Co., Ltd., a wholly owned subsidiary of Genertec Universal Medical Group Co. Ltd., plans to issue up to RMB 2 billion of renewable corporate bonds (//Lianhe: AAA) at par of RMB 100, according to a company announcement on Monday.

The company received regulatory approval to issue up to RMB 2 billion of the bonds in installments within the next 24 months. The first installment, divided into two tranches, will not exceed RMB 480 million.

The upcoming offering will mark the company’s 10th issuance of 2022.

The first tranche, dubbed type 1, have a base term of one year, with the second tranche (type 2) having a base term of two years.

In each case, the bonds will have a repricing period equal to its base term. At the end of the base term, the issuer will have the option to extend the term by another equivalent repricing period or repay the bonds in full.

The bonds will bear fixed interest for the duration of the base term, as determined during the subscription period via bookbuilding, which will reset upon exercise of the extension option. The coupon rate for the subsequent term will be adjusted to the aggregation of the benchmark interest rate for the respective term, the initial interest rate spread and an additional 300 basis points.

In addition to the recurring extension option, both tranches will also feature an unlimited clawback feature, a deferred interest payment right and a call option.

Citic Securities Co., Ltd., Tianfeng Securities Co., Ltd. and Orient Securities Investment Banking Co., Ltd. are the joint lead underwriters for the offering.

Proceeds from the planned offering are intended to supplement the issuer’s operating funds.

The notes are expected to be issued off-line from Dec. 20 and subsequently listed on the Shanghai Exchange.

The health care company is based in Hong Kong.

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