By William Gullotti
Buffalo, N.Y., April 17 – China’s Joy City Property Ltd.’s indirect non-wholly owned subsidiary, Cofco Commercial Property Investment Co., Ltd., issued RMB 1 billion of 3.34% domestic bonds with a five-year tenor (Chengxin: AAA), according to an announcement on Monday.
The first tranche of the bonds priced with an initial coupon rate of 3.34%, which may be adjusted by the company at the end of the third year.
Bondholders will also be able to exercise put rights at the end of the third year.
As previously reported March 23, Joy City received approval to sell up to RMB 4 billion of the fixed-rate bonds in tranches with tenors of up to 10 years.
Bank of China Ltd. and China International Capital Corp., Ltd. are the joint underwriters for the offering, with Bank of China as lead.
Proceeds will be used to replenish capital which was used for the redemption of the domestic corporate bonds issued by the company in March 2020.
The bonds will be listed on the Shenzhen Stock Exchange.
Joy City is a real estate company based in Hong Kong and is a member of the Cofco Group.
| Issuer: | Cofco Commercial Property Investment Co., Ltd.
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| Amount: | RMB 1 billion
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| Issue: | Domestic corporate bonds, first tranche
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| Tenor: | Five years
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| Underwriters: | China Securities Co., Ltd. (lead) and China Merchants Securities Co., Ltd.
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| Coupon: | 3.34% initial rate, resettable at the end of the third year
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| Put option: | Exercisable at the end of the third year
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| Settlement date: | April 17
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| Rating: | Chengxin: AAA
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