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GLP China issues 1b renminbi bonds on China's interbank market
GLP has issued one billion renminbi (S$205 million) bonds in China's interbank market.
The mainboard-listed global logistics provider, which is in the midst of privatisation, said on Tuesday that the panda bonds have a five-year tenure and carry an annual coupon of 4.99 per cent.
Proceeds will be used for the repayment of existing debt and to fund business growth in China. The offering was more than 2.6 times oversubscribed with strong support from institutional investors.
Teresa Zhuge, co-president of GLP China, said the company is the first international company to issue panda bonds on both the Shanghai Stock Exchange and China's Interbank Market. "The issuance is consistent with our policy to naturally hedge by financing operations in local currency and diversifying our sources of funding," she added. "As part of our ongoing efforts to maintain a strong balance sheet, we are looking to increase our financial flexibility and optimise our capital structure."
GLP China has an AAA credit rating (the highest possible rating in China) issued by Shanghai Brilliance Credit Rating & Investors Service Co Ltd and China Chengxin Credit Ratings Company Ltd and has issued 2.5 billion renminbi of panda bonds to date.
GLP is expected to be delisted by April 2018 having received approval from the Singapore Exchange.