China Aoyuan Property Group Ltd.'s Aoyuan Group Co. Ltd. subsidiary secured approval from the China Securities Regulatory Commission for its proposed issuance of up to 1.5 billion yuan in domestic corporate bonds.

Aoyuan Group intends to fully utilize the shelf with a plan to issue 1.5 billion yuan of three-year term corporate bonds at a coupon rate of 8.50%. The terms of the offering were determined upon the Oct. 9 completion of a book building exercise, according to a filing.

The Hong Kong-listed parent of the issuing company noted that Aoyuan Group may adjust the coupon rate of the bonds, and investors can sell back at the end of the second year from the date of issuance.

Proceeds generated from the offering will be used to refinance certain debt of the group, China Aoyuan added.

As of Oct. 15, US$1 was equivalent to 6.92 yuan.