Global Logistic Properties (GLP) is to issue up to RMB10bn ($1.45bn) in RMB-denominated bonds (Panda bonds) on the Shanghai Stock Exchange.
The bonds will be issued in multiple tranches, depending on the company’s financing needs and pricing conditions.
Following regulatory approval from Chinese authorities, GLP issued a first tranche of RMB1.5bn.
Teresa Zhuge, co-president at GLP China, said the offering was more than three times oversubscribed by institutional investors.
GLP, the largest player in China’s modern logistics market, will use the proceeds to repay existing debt and to fund business growth in China.
“The issuance increases GLP’s financial flexibility and optimises its capital structure,” Zhuge said.
“We will continue with our natural hedge policy and implement financial strategies to broaden financing channels while pursuing growth opportunities.”
The issuance comprises three-year tenor bonds priced at an annual 3.12% and five-year tenor bonds priced at 3.58% per annum.
Aside from the listed issuances, GLP China is awaiting regulatory approval to issue up to a further RMB10bn in over-the-counter bonds in China’s interbank market.
These, similarly, will be issued in tranches.
GLP China has been given a long-term credit rating of AAA4, the highest possible rating in China, according to the company.