Evergrande's Second Batch of 15 Billion Domestic Bonds Well-received Again, with a New Low Interest Rate of 5.3%

2015-07-07 22:20 2030

HONG KONG, July 7, 2015 /PRNewswire/ -- Evergrande (HK.3333), underlying stock of Shanghai-Hong Kong Stock Connect, announced on July 7 that the second batch of 15 billion of the approved 20 billion domestic bonds was successfully issued. An original report from Sina Leju follows.

According to the announcement, the second batch of bonds this time included the four-year and seven-year bonds, where the interest rate of 8.2 billion seven-year bonds was 6.98%, and the interest rate of 6.8 billion four-year bonds was 5.30%, creating the lowest bond rate record throughout the history of Evergrande. According to the insiders, "the bonds issued this time are to replace short-term bonds with long-term bonds, and to replace high-interest bonds with low-interest bonds, so as to reduce the debt-payment pressure and financing cost."

Data showed that Evergrande issued 15 billion bonds this time, creating the single largest-scale record in domestic bond issuance of private enterprises and real estate enterprises. Previously, only central enterprises, banks or other large-scale financial institutions could reach such scale of bond issuance.

On June 16, Evergrande announced that it would issue no more than 20 billion bonds in China, and were offered the highest credit rating AAA by three largest and most authoritative rating agencies in China, which was the first time in China.

Subsequently, Evergrande's first batch of 5 billion domestic bonds successfully issued at the interest rate of 5.38% on June 18, over-subscribed more than several times, and Evergrande became the domestic bond issuance pioneer among the red chips. Evergrande's second batch of 15 billion domestic bonds was also well-received in the market, over-subscribed 4 times of basic issuance scale of 5 billion bonds, with a new lower interest rate.

Source: Sina Leju
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