China Merchants Holdings (International) (CMHI) has raised USD700 million by selling bonds to support the development of its port business.
CMHI issued USD700 million fixed-coupon guaranteed notes, consisting of two tranches including a 5-year tranche of USD200 million and a 10-year tranche of USD500 million, a statement of CMHI said on 3 August.
The proceeds will be used to support the capital needs for the development of the company’s comprehensive port business.
The coupon rates of the 5-year and 10-year tranches are 3.50% and 4.75% and will be due by 2020 and 2025, respectively. These notes will be listed on the Hong Kong Stock Exchange.
The issue is rated BBB+ by Standard & Poor’s and Baa1 by Moody’s, with a stable outlook.
Li Jianhong, chairman of the board of directors of CMHI, said, “The company’s capital structure has been further enhanced since the issuance of the mandatory convertible securities in June 2014, with net gearing ratio subsided to a relatively low level of 13.9% by the end of December 2014. Our financial ratios, even after the issuance of the USD700 million guaranteed notes, will still be at a healthy level, which is in line with the prudent financial policies the company has always adhered to.”