CLCT prices $112m worth of FTZ offshore bonds at 3.8%

The bonds are due in three years.

CapitaLand China Trust’s (CLCT) wholly-owned subsidiary, CLCT MTN, has priced its inaugural free trade zone (FTZ) offshore yuan bonds due 2026 at 3.80%, payable annually in arrear.

The bonds will be listed and traded on the SGX-ST. 

Net proceeds from the bond issuance will be on-lent to CLCT to refinance its existing indebtedness and/or to meet working capital requirements outside China.  

In a bourse filing, CLCT’s manager said that the bonds worth CNY600m or $112m mark the company’s first issuance of bonds denominated in CNY within the China (Shanghai) Pilot Free Trade Zone.

“FTZ offshore CNY bonds are issued within the China (Shanghai) Pilot Free Trade Zone and are recorded in China Central Depository & Clearing Co., Ltd., offering foreign issuers a gateway to access a unique CNY investor pool and product,” CLCT’s manager said.