Chongqing Longhu Development Co. Ltd., an indirect subsidiary of Longfor Properties Co. Ltd., issued the first tranche of rental apartments special bonds worth 3 billion yuan to qualified investors.
Chongqing received the consent of China Securities Regulatory Commission to offer up to 5 billion yuan of the special bonds in tranches on Dec. 28, 2017, according to a release.
The first tranche of bonds will run for a five-year term and carry a 5.6% coupon rate. Following the third year, the company may adjust the coupon rate, while the investors will be entitled to sell back the non-guaranteed bonds.
Longfor subsidiary Longfor Chongqing Enterprise Development lodged an application to issue rental housing bonds in December 2017, with intentions to pool proceeds from the proposed offering into seven Chinese rental housing developments in Shanghai, Nanjing, Chengdu and Wuhan.
As of March 21, US$1 was equivalent to 6.33 yuan.