Recently, Yuexiu Property successfully issued green dim sum bonds of RMB2.85 billion, with a three-year term and a coupon rate of 3.30%. The issuance is not only the largest of its kind in the property sector to date, but also represents the lowest issuance yield of dim sum bonds issued by a Chinese property developer in the past five years.
Prudent operation underscores industry-leading financing strength
During the period of profound industry restructuring, Yuexiu Property has consistently adhered to its philosophy of “operating with prudence”. Through refining financial management, continuously optimising debt structure and maintaining robust cash flow, it has established differentiated core competitiveness. The issuance received enthusiastic market response, with the final spread narrowing by a significant 40 basis points from the initial price guidance, the largest spread narrowing for offshore RMB bonds issued by a Chinese property developer since August 2020. The strong market performance fully reflects the high recognition of investors for the Company’s credit standing and development strategy.
Yuexiu Property has been given investment-grade ratings and deemed having “stable outlook” by S&P Global and Fitch Ratings. The sizeable issuance, smooth and of low-cost, has provided a strong impetus to the company to seize market opportunities and expand its high-quality business.
Green finance drives strategic transformation Helps build new sustainable development ecosystem
The successful issuance of the green dim sum bonds is not only a testament to Yuexiu Property’s financing capabilities, but also a strategic move of the Company to implement ESG principles and drive green transformation. In accordance with the Company’s Sustainable Finance Framework, an equivalent amount of the proceeds from the bond issuance will be allocated in full to eligible green projects, specifically supporting qualified initiatives in areas such as green buildings, energy efficiency, pollution prevention and control, and climate change mitigation, targeting to drive green and low-carbon operations throughout the lifecycle of these projects, starting from the source.
On the practical front, Yuexiu Property has continued to push boundaries. On top of creating a good number of near-zero energy consumption projects, it has achieved an innovative breakthrough in the carbon asset sector. Its Zhonggang Leatherware Mall was listed on 22 September as the nation's first carbon credit product of wholesale market building type. The green dim sum bond issuance will help tighten the link of the strategic “green projects → green financing → green development” closed-loop of the company, helping it consolidate its leadership in the field of sustainable development throughout the lifecycle of buildings.
The record-breaking green dim sum bond issuance tells of the recognition of the capital market for Yuexiu Property's fundamental emphasis on operating with prudence and sustainable development strategy. Looking ahead, the company will maintain its dual-pronged approach: on the financial front, continue to optimize capital structure to fortify its foundation for development; in terms of green practices, to deepen low-carbon management throughout the lifecycle of buildings, exploring ways to transform and strive for synergistic gains in profitability, social value and living up to environmental responsibility.
