Yuexiu Real Estate (00123) subsidiary plans to issue no more than 2 billion yuan of corporate bonds

According to Zhitong Finance App News, Yuexiu Real Estate (00123) announced that the issuance scale of 2026 third corporate bonds (2026 third corporate bonds) issued by Guangzhou Urban Construction and Development Co., Ltd. (issuer), an indirect Chinese subsidiary with 95% interest, will not exceed RMB 2 billion. The third installment of 2026 corporate bonds will be divided into two types: (i) 5-year fixed coupon interest corporate bonds (type 1 bonds), and issuers can choose to adjust coupon interest rates at the end of the third year. Furthermore, at the end of the third year: (a) the issuer has the right to redeem the entire outstanding share of the Type 1 bond; and (b) the holder of the Type 1 bond has the right to resell all or part of the Type 1 bond to the issuer; and

(ii) 7-year fixed coupon interest corporate bonds (Type 2 bonds), and the issuer may choose to adjust the coupon interest rate at the end of the fifth year. Furthermore, at the end of the fifth year: (a) the issuer has the right to redeem the full outstanding share of the Type 2 bond; and (b) the holder of the Type 2 bond has the right to resell all or part of the Type 2 bond to the issuer. In 2026, the third instalment of corporate bonds will introduce inter-type rebate options. The payback ratio is not limited. The issuer and lead underwriter will decide by consensus whether to exercise the inter-type rebate option based on the issuance and subscription situation and within the total issuance scale.

The issuer and the 2026 third corporate bond have each received an “AAA” credit rating from Chengxin International Credit Rating Co., Ltd. from credit rating agencies.