Yuexiu Real Estate (00123) subsidiary plans to issue 2.1 billion yuan of corporate bonds

According to the Zhitong Finance App, Yuexiu Real Estate (00123) announced that the issuance scale of the 2026 Fourth Corporate Bonds (2026 Fourth Issue) of the Company's indirect Chinese subsidiary Guangzhou Urban Construction Development Co., Ltd. (issuer), with 95% interest, will not exceed RMB 2.1 billion.

The fourth 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 full outstanding share of the Type 1 bond; and (b) the Type 1 bondholder has the right to resell all or part of the Type 1 bond to the issuer; and (ii) a seven-year fixed coupon interest rate corporate bond (Type 2 bond), and the issuer can choose to adjust the coupon 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 fourth installment 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 fourth corporate bond have each received an “AAA” credit rating from Chengxin International Credit Rating Co., Ltd. from credit rating agencies.

The issuer will determine the coupon interest rate for Type 1 Bonds and Type 2 Bonds after the bookkeeping and filing. Proceeds from issuing the fourth installment of corporate bonds in 2026, after deducting the issuance fee, will be used to repay maturing corporate bonds and exercise rights to redeem corporate bonds.