China Merchants Expressway to redeem $5 bn in medium-term notes

China Merchants Expressway Network & Technology Holdings has formally announced its exercise of the issuer's redemption option for its 2023 first tranche medium-term notes. The redemption, totaling CNY 5 billion, is scheduled for November 2, 2025. The notes, with an initial issuance date of November 2, 2023, carried an interest rate of 3.18% for the current interest period and held an AAA credit rating.

The redemption announcement follows an earlier disclosure regarding the upcoming maturity of another series of notes. The 2022 third tranche medium-term notes, issued for CNY 15.5 billion on October 14, 2022, will mature on October 14, 2025. This series carried a coupon rate of 2.85% for its final interest period, with a total principal and interest payment of CNY 159,417,500 due to bondholders. Both series were managed by China Merchants Bank Co., Ltd. as lead underwriter.

These actions underscore China Merchants Expressway’s active approach to managing its debt obligations and capital structure.