Published on 12/8/2022 in the Prospect News Emerging Markets Daily and Prospect News Green Finance Daily.
New Issue: Kunming Rail Transit prices $253 million 8˝% green bonds due 2025
By William Gullotti
Buffalo, N.Y., Dec. 8 – China’s Kunming Rail Transit Group Co., Ltd. priced $253 million of 8˝% green bonds due 2025 (Baa1//BBB+) at par, according to a listing notice with an appended offering circular on Thursday.
The bonds may be redeemed early at par plus interest for taxation reasons. Bondholders will be able to exercise put rights at 101 for a change of control or at par if a no-registration event occurs.
China International Capital Corp., Bank of China, CEB International, ABC International, Guotai Junan International, Citic Securities, CNCB Capital, Essence International, Haitong International and Hua Xia Bank Co., Ltd., Hong Kong Branch are the joint lead managers and joint bookrunners, with China International, Bank of China, CEB, ABC and Guotai Junan also acting as joint global coordinators.
Proceeds from the offering will be used for refinancing under China's National Development and Reform Commission and green finance framework.
Listing for the Regulation S bonds is expected on the Hong Kong Exchange effective Dec. 8.
The Kunming, China-based company operates in the urban transit systems industry.
| Issuer: | Kunming Rail Transit Group Co., Ltd.
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| Issue: | Green bonds
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| Amount: | $253 million
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| Maturity: | Dec. 7, 2025
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| Bookrunners: | China International Capital Corp., Bank of China, CEB International, ABC International, Guotai Junan International, Citic Securities, CNCB Capital, Essence International, Haitong International and Hua Xia Bank Co., Ltd., Hong Kong Branch
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| Trustee: | Citicorp International Ltd.
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| Counsel to issuer: | Freshfields Bruckhaus Deringer LLP (England), Grandall Law Firm (China)
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| Counsel to underwriters: | Linklaters (England), King & Wood Mallesons (China)
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| Coupon: | 8˝%
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| Price: | Par
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| Yield: | 8˝%
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| Call: | For taxation reasons at par plus interest
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| Puts: | At 101 plus interest for a change of control; at par plus interest for a no-registration event
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| Pricing date: | Dec. 1
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| Issue date: | Dec. 7
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| Listing date: | Dec. 8
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| Ratings: | Moody’s: Baa1
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| Fitch: BBB+
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| Distribution: | Regulation S
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| ISIN: | XS2558634791
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