China’s Longfor to offer up to RMB 3 billion five-, seven-year bonds

By Cady Vishniac

Detroit, Jan. 4 – Longfor Group Holdings Ltd. has announced the first of three tranches of domestic corporate bonds in 2021 in the form of up to RMB 3 billion of five- and seven-year notes, according to a market release.

The notes will be issued by Longfor subsidiary Chongqing Lonfu Development Co. Ltd. on Jan. 6 and Jan. 7.

The issuer will be allowed to adjust the coupon of the five-year bond after three years, at which point investors will be able to sell back the bonds. The coupon on the seven-year bond will be adjustable after five years, with those bondholders similarly able to sell back the bonds upon the coupon adjustment.

The company expects the coupon for the five-year bond to be in the range of 3.6% to 4.6%, with the coupon for the seven-year bond ranging from 4% to 5%. The final coupon will be announced Tuesday after book building is complete.

China Chengxin International Credit Rating Co., Ltd. has rated the bonds AAA.

Longfor is a Beijing investment holding company.

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