Hong Kong-listed developer China Resources Land Ltd. is issuing two categories of medium-term notes with a combined amount of up to 4.00 billion yuan under its 20 billion yuan debt program, subject to certain conditions.
The proposed issuance of 2.00 billion yuan in three-year bonds and another 2.00 billion yuan in five-year bonds will represent the second tranche of notes that will be offered under the program, which was approved by the National Association of Financial Market Institutional Investors on April 8, 2016. The first tranche of the medium-term notes was issued in July 2017.
CITIC Securities Co. Ltd. and Agricultural Bank of China Ltd., the joint principal underwriters of the issuance, were both given the authority to adjust the size of each category in the proposed offering.
Proceeds from the issuance will be used to finance the group's projects and improve its liquidity, according to a filing.
Separately, China Resources Land said it obtained a HK$1.80 billion five-year term loan facility from an unnamed bank. The validity of the facility is subject to China Resources (Holdings) Co. Ltd. being the single largest shareholder of the borrower with a stake of at least 35% in China Resources Land.
China Resources Land secured the facility after recently procuring a separate five-year HK$2.00 billion term loan.
As of March 29, US$1 was equivalent to 6.29 Chinese yuan.