SINGAPORE (Jan 5): Global Logistic Properties (GLP) has received approval from the China Securities Regulatory Commission (CSRC) to issue up to RMB 12 billion ($2.46 billion) of RMB-denominated ‘Belt & Road’ (B&R) bonds on the Shenzhen Stock Exchange.

B&R bonds are used to finance projects related to China’s One Belt One Road (OBOR) initiative, which seeks to connect Asia and Europe over land and sea.

In a Friday announcement, GLP says it plans to issue the bonds in multiple tranches, depending on its financing needs and market conditions.

The group intends to use the proceeds to repay existing debt incurred from its recent acquisition of logistics assets in Europe.

With the recent regulatory approval, GLP is set to become the first company to issue onshore B&R bonds, which would further diversify the group’s funding sources to support business growth, it adds.

“We are pleased to be the first company to receive this landmark approval and this marks the launch of our B&R bonds. We will continue to maintain a strong balance sheet including further diversifying our funding sources to support our long-term growth objectives,” comments Teresa Zhuge, co-president of GLP China.

Following its acquisition by a Chinese private equity consortium, Nesta Investment Holdings, GLP is aiming to de-list from the Singapore Exchange (SGX) by April 14 this year.

This story, written by Michelle Zhu for The Edge Singapore, first appeared on Jan 5.