By Marisa Wong
Morgantown, W.Va., June 3 – China Shengmu Organic Milk Ltd. said indirect wholly owned subsidiary Inner Mongolia Shengmu High-tech Farming Co., Ltd. issued its second tranche of corporate bonds totaling RMB 600 million on June 2.
The five-year bonds were priced at par with a coupon of 4¾%.
The issuer will be able to adjust the coupon at the end of three years. If the issuer exercises that right, holders will be granted a put option.
Zhong De Securities Co. Ltd. is the lead underwriter, as previously noted.
In December 2015 the company announced plans to offer up to RMB 1.6 billion of domestic corporate bonds. The company completed the first tranche, totaling RMB 1 billion, on Dec. 29, 2015.
Proceeds will be used to adjust the company’s debt structure and to replenish general working capital.
The milk producer is based in Dengkou, China.
| Issuer: | Inner Mongolia Shengmu High-tech Farming Co., Ltd.
|
| Issue: | Corporate bonds, second tranche
|
| Amount: | RMB 600 million
|
| Maturity: | Five years
|
| Coupon: | 4¾%, may be adjusted at the end of three years
|
| Price: | Par of RMB 100
|
| Put option: | Yes, if issuer adjusts coupon at end of three years
|
| Underwriter: | Zhong De Securities Co. Ltd.
|
| Settlement date: | June 2
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