YUEXIU PROPERTY (00123) announced that its indirect Chinese subsidiary, Guangzhou Urban Construction Development Co., Ltd. (the "Issuer"), in which the company holds a 95% equity interest, has applied to the China Securities Regulatory Commission and the Shanghai Stock Exchange for registration to publicly issue corporate bonds with a total principal amount of up to RMB 9.6 billion to professional investors in China, with listing on the Shanghai Stock Exchange. The Issuer completed the issuance of the first tranche corporate bonds in 2025 with a total principal amount of RMB 1.4 billion on August 19, 2025.
The issuance scale of the second tranche corporate bonds (2025 Second Tranche Corporate Bonds) will not exceed RMB 1.5 billion. The 2025 Second Tranche Corporate Bonds will be divided into two varieties: (i) five-year fixed coupon rate corporate bonds (Variety One Bonds), where the Issuer may choose to adjust the coupon rate at the end of the third year. Additionally, at the end of the third year: (a) the Issuer has the right to redeem all outstanding portions of Variety One Bonds; and (b) holders of Variety One Bonds have the right to sell back all or part of their Variety One Bonds to the Issuer; and (ii) seven-year fixed coupon rate corporate bonds (Variety Two Bonds), where the Issuer may choose to adjust the coupon rate at the end of the fifth year. Additionally, at the end of the fifth year: (a) the Issuer has the right to redeem all outstanding portions of Variety Two Bonds; and (b) holders of Variety Two Bonds have the right to sell back all or part of their Variety Two Bonds to the Issuer.
The 2025 Second Tranche Corporate Bonds introduce inter-variety callback options with no restrictions on callback ratios. The Issuer and lead underwriters will determine whether to exercise the inter-variety callback options based on issuance subscription conditions through mutual consultation within the total issuance scale.
The Issuer and the 2025 Second Tranche Corporate Bonds have received an "AAA" credit rating from China Chengxin International Credit Rating Co., Ltd.