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China Evergrande Group -- Moody's: Evergrande's ratings unaffected by tap bond offering

Moody's Investors Service says that China Evergrande Group's B1 corporate family rating (CFR) and B2 senior unsecured debt rating are unaffected by the announced tap bond issuance on its existing $1.25 billion 9.5% notes due 2022, its $450 million 10.0% notes due 2023 and its $300 million 10.5% notes due 2024. Evergrande plans to use the proceeds from the tap issuance to refinance existing debt, for capital expenditure and for general corporate purposes. "The proposed tap bond issuance will not have a material impact on Evergrande's credit metrics, because a large portion of the proceeds will be used to refinance maturing debt," says Cedric Lai, a Moody's Vice President and Senior Analyst.