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Yuexiu Real Estate Investment Trust has proposed issuing USD 300 million of 6.50 percent guaranteed green notes due in 2029, along with CNY 690 million of 3.50 percent green notes of the same maturity. The issuance will be undertaken under its USD 1.5 billion guaranteed medium-term note programme. Proceeds from the USD tranche will mainly be used to refinance existing debt. The move reflects the trust's continued use of green financing to manage liabilities and strengthen its funding profile.
Yuexiu Real Estate Investment Trust has proposed a fresh fund-raising exercise through the issuance of guaranteed green notes, signalling a continued focus on refinancing and sustainable financing. The Hong Kong-listed trust has moved to tap overseas and onshore markets under its existing guaranteed medium-term note programme, which has an overall limit of USD 1.5 billion. Advertisement
The trust has proposed issuing USD 300 million worth of 6.50 percent guaranteed green notes that will mature in 2029. Alongside this, it also plans to issue CNY 690 million of 3.50 percent guaranteed green notes with the same maturity. Both tranches will be issued under the same programme framework, which has been used by the trust in earlier capital market exercises.
According to the filing, the entire USD 300 million tranche will be issued as a single aggregate principal amount. The proceeds from the proposed issue will primarily be deployed towards refinancing certain existing borrowings of Yuexiu REIT. A portion of the funds may also be used for other permitted purposes in line with the trust's financing and green funding framework.
Yuexiu REIT has been an active participant in the debt market over the past few years, particularly in green financing, as it aligns its funding strategy with environmental and sustainability-linked objectives. The trust had previously accessed green bond markets to diversify its funding base and extend debt maturities, especially at a time when refinancing risks have remained elevated across the broader Chinese property-linked sector.
The guarantee structure of the proposed notes is expected to provide additional comfort to investors amid ongoing volatility in global credit markets. By locking in fixed coupon rates and extending maturities to 2029, Yuexiu REIT appears to be seeking greater visibility on its debt servicing profile while maintaining liquidity flexibility.
The announcement comes at a time when Asian REITs are selectively returning to capital markets after a prolonged period of higher interest rates and cautious investor sentiment. Yuexiu REIT's move suggests confidence in its balance sheet positioning and access to funding despite broader sector challenges.
Source Reuters
5th Jun, 2025
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