Global Logistic Properties, a provider of logistics facilities, on Tuesday said it issued 1 billion Chinese yuan (US$152 million) of RMB-denominated bonds or panda bonds in China's interbank market.
The bonds have a five-year tenure and carry an annual coupon of 4.99 percent, Global Logistic Properties said in a statement.
A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in China.
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 on the back of strong support from institutional investors, the warehouse operator said.
"The issuance is consistent with our policy to naturally hedge by financing operations in local currency and diversifying our sources of funding. As part of our ongoing efforts to maintain a strong balance sheet, we are looking to increase our financial flexibility and optimize our capital structure," Teresa Zhuge, Co-President of GLP China said.
GLP China has an AAA credit rating and has issued 2.5 billion yuan of panda bonds to-date.
The company said it plans to further issue panda bonds in multiple tranches, depending on its financing needs and market conditions.
