Seazen Holdings Issues ¥400M Bond Secured by Commercial Property

Seazen Holdings Group Co., Ltd. is issuing 400 million yuan in new corporate bonds. The company announced this on September 16 for professional investors. The issuance is split into two tranches with distinct pricing structures. Tranche 1 is sized at 300 million yuan with a coupon rate inquiry range of 6.00% to 7.00%. Tranche 2 is sized at 100 million yuan with a coupon rate inquiry range of 4.00% to 5.00%. Interest rate inquiries are scheduled for September 21. The final rates will be published on the Shanghai Stock Exchange website on the same day.

The security for Tranche 1 consists of mortgage guarantees on commercial property. All mortgaged assets are located in Guigang Wuyue Plaza. The issuer holds legal ownership of these buildings. This arrangement serves as collateral for the maturity repayment of the first tranche. The prospectus confirms that the mortgagor provides this guarantee. The second tranche does not specify the same property-based security structure in the immediate disclosure. The total face value per bond is 100 yuan. The issuance price is also set at 100 yuan per bond. The maturity period for both tranches is two years.

Refinancing existing corporate obligations

Proceeds from this issuance will replace issuer funds used to repay old debt. Specifically, the money will cover the principal of the bond labeled 23 Xincheng 01. That previous instrument was issued on June 16, 2023. Its size was 400 million yuan with a coupon rate of 4.50%. It had a three-year maturity. The bond completed its principal and interest repayment in June of this year. It was delisted following that settlement. The current issuance effectively rolls over the obligation previously cleared. This pattern aligns with common refinancing strategies in the sector.

Seazen Holdings also issued medium-term notes earlier this year. The first tranche was launched in July 2026. The size of that issuance was 750 million yuan. It carried a five-year maturity. The coupon rate was set at 2.8%. The subscription multiple reached 2.45 times. China Bond Credit Enhancement Investment Co., Ltd. provided a guarantee. The funds were used to repay the principal of the debt financing instrument 23 Seazen Holdings MTN001. That specific instrument matured in July. This demonstrates a continuous cycle of borrowing to settle prior liabilities.

Guigang Wuyue Plaza serves as collateral

The commercial asset in Guigang is central to this financing. It is the third time this year the asset has been leveraged. Previous arrangements also relied on the Wuyue Plaza property. The asset acts as a foundation for accessing the bond market. This strategy allows the company to secure funding despite broader market conditions. The use of operating commercial assets for collateral is a specific tactic. It differentiates this deal from unsecured corporate issuances. The property provides tangible backing for the 300 million yuan tranche. This reduces perceived risk for professional investors.

The source of this market data is GN auto markets and bonds reporting. The details confirm the asset-based nature of the deal. The company continues to rely on this single core asset. The rolling of debt through new issuances remains the primary method. The two-month gap between the medium-term notes and this corporate bond is notable. Both instruments served to clear maturing principal. The market is observing this pattern among private real estate firms. Other companies have employed similar strategies recently. The reliance on specific physical assets for credit enhancement is a key feature here.

Market context for real estate debt

Other real estate enterprises have also issued bonds recently. Binjiang Group issued 600 million yuan in medium-term notes in March. The coupon rate for that deal was 2.75%. The maturity was two years. It also issued 600 million yuan in short-term financing notes. The trend of repaying old debts with new ones is widespread. This rolling model is common in the sector. It allows companies to maintain liquidity without immediate cash outflows. The current Seazen issuance fits this broader industry behavior. The specific terms reflect the risk profile of the collateral.