GLP gets nod to issue onshore Belt and Road bonds in China

LOGISTICS facilities provider Global Logistic Properties (GLP) is set to be the first company to issue onshore Belt and Road (B&R) bonds.

GLP announced on Friday in a Singapore Exchange filing that its Chinese arm, GLP China, has received approval from the China Securities Regulatory Commission (CSRC) to issue up to 12 billion yuan (S$2.45 billion) of B&R bonds on the Shenzhen Stock Exchange.

The funds raised will be used to repay existing debt arising from GLP's recent purchase of logistics assets in Europe.

"GLP China has an AAA credit rating and plans to issue the B&R bonds in multiple tranches, depending on GLP's financing needs and market conditions," the company said.

B&R bonds are used to finance projects related to the One Belt One Road initiative that aims to connect Asian and European economies over land and sea.

Teresa Zhuge, co-president of GLP China, said: "We are pleased to be the first company to receive this landmark approval and this marks the launch of our B&R bonds. We will continue to maintain a strong balance sheet including further diversifying our funding sources to support our long-term growth objectives."

GLP shareholders voted in favour of Nesta Investment Holdings' privatisation bid on Nov 30, 2017. With the privatisation, contract manufacturer Venture Corporation has replaced GLP on the Straits Times Index (STI) with effect from Jan 5.