Genertec Universal unit to issue RMB 1 billion renewable bonds

By William Gullotti

Buffalo, N.Y., March 22 – China Universal Leasing Co., Ltd., a wholly owned subsidiary of Genertec Universal Medical Group Co. Ltd., plans to issue up to RMB 1 billion of renewable corporate bonds (Lianhe: AAA) at par, according to a company announcement on Wednesday.

The par-priced bonds will bear fixed interest for the duration of the two-year base term, as determined during the subscription period via bookbuilding, which will reset upon exercise of the extension option.

The repricing period will be equal to the 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 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, the bonds will also 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.

Proceeds will be used for supplementary operating funds.

Trading in the bonds on China’s inter-bank bond market is expected to start March 23.

The company previously received regulatory approval to issue up to RMB 2 billion of the bonds in installments, of which RMB 1.52 billion has already been issued.

The health care company is based in Hong Kong.

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