TCL Group plans to issue RMB 2 billion bonds, of which RMB 800 million will be used to repay debts
On June 4, TCL Group issued an announcement that it will issue bonds of no more than 2 billion yuan to qualified investors. The basic issuance scale will be 1 billion yuan, and over-allocation will not exceed 1 billion yuan (including 1 billion yuan). The issuer and the lead underwriter will decide whether to exercise the over-allotment option based on offline subscriptions, and the remaining portion will be issued within 24 months from the date of approval by the China Securities Regulatory Commission.
Regarding the use of funds, TCL Group stated that it intends to use the 800 million yuan of this issue to raise funds to repay debts, including repaying Guangfa Bank a total of 100 million yuan, China Export-Import Bank 600 million yuan, Agricultural Bank of China 100 million yuan, and a total of 800 million yuan yuan. The remaining funds will be used to supplement liquidity to meet daily production and operation needs, optimize capital structure and reduce operational risks.
The specific debt scope is shown in the table below:
According to the announcement, on July 7, 2017, TCL Group was approved by China Securities Regulatory Commission, Securities Regulatory Commission  No. 276, and publicly issued corporate bonds with a nominal value of no more than 8 billion yuan (including 8 billion yuan) to qualified investors. The issuer’s bonds are issued in installments, in which the current bonds are issued for the third issue of the bonds. The bonds are issued by the TCL Corporation for public offering of corporate bonds (Q1) to qualified investors in 2018. The bond is abbreviated 18TCL01 and the bond code is 112717.
The announcement also stated that this bond is a 5-year bond, and at the end of the third year the attached issuer adjusted the coupon rate option and the investor’s option to sell back.