HK property company issues yuan bond for first time

Sino-Ocean Land, a Hong Kong-listed company in China, issued renminbi bond for the first time of 5 billion yuan ($782 million) on Tuesday.

The rate of the bond, ranging from 3.78 percent to 5 percent, has the lowest interest rates among all the renminbi bonds issued by Chinese property companies.

Three types of bond are provided. The shortest three-year type will be issued for 2 billion yuan, at an interest rate of 3.78 percent. The five-year type and the 10-year type will be issued for 1.5 billion yuan respectively.

More renminbi bonds of up to 5 billion yuan may be issued in the future. The money will be used as settlement of existing debts and general working capital.

The company has already issued dollar bonds with total amount of $2.4 billion in July, 2014 and January, 2015.

"The new domestic financing tunnel can help us avoid the currency risk of overseas financing and keep lowering the cost," said CEO Li Ming.

Domestic credit rating agency CCXI gave Sino-Ocean Land the highest AAA rating and pointed out that the company has a stable financial position as well as high-quality business resources to increase its profit.