2021.01.08
Times China Breaks Records in Term and Interest of Bonds by Issuing USD350 Million of Bonds with a Term of Six Years and 5.75% Interest
On January 8, Times China (1233.HK) announced the issuance of USD350 million worth of bonds with an annual coupon rate of just 5.75% and a term of six years, thereby setting records with respect to the longest term and lowest interest rate among corporate overseas bonds. Income from this issuance will be used for refinancing of existing debts, which will effectively optimize the debt structure and reduce the fund cost.
The announcement received enthusiastic response from the market, and immediately it brought qualified orders from many world-famous sovereign funds and asset management companies. Times China signed purchase agreements with Deutsche Bank, UBS, Credit Suisse, CLSA, Guotai Junan International, Haitong International, BofA Securities, China CITIC Bank International, Citibank, CMBC Capital, HeungKong Capital, J.P. Morgan and Nomura. Thus, the bonds issued were priced at 5.75%, narrowing by 40 basis points in comparison to the original price. The acceptance of the program was indicative of the company's strong recognition throughout the international capital market.
Given its extensive development in the Greater Bay Area, Times China has learned to persist but do so with prudence. Amid the global pandemic of 2020 and the implementation of new financing regulations for real-estate enterprises, three major international rating agencies -- S&P, Moody's and Fitch Ratings--maintained their Times China credit ratings. Each remained positive in regard to the company's ability to tolerate risk. In the future, Times China will continue to insist on growth with quality as it pursues sound development with the balance of growth, benefit and risk.
