China Education Group Holdings Limited has signed a subscription agreement with UBS AG Hong Kong Branch, China International Capital Corporation Hong Kong Securities and other banks to place US$200.00 million of 5.625% senior unsecured bonds maturing on 24 June 2029. The issue price is 98.963% of par, implying gross proceeds of approximately US$197.93 million.
Interest will accrue from 24 June 2026 at 5.625% per annum, payable semi-annually each 24 June and 24 December, commencing 24 December 2026. The bonds rank pari passu with the company’s other senior unsecured obligations and carry a negative-pledge covenant. Early redemption features include: • Tax call: full redemption at par plus accrued interest upon specified tax events. • Change-of-control put: investors may require redemption at 101% of principal plus accrued interest. • Company options: Make-whole call any time before 24 May 2029; par call from 24 May 2029 to maturity.
Completion is subject to customary conditions; the subscription agreement permits termination upon certain events. Application has been filed for listing the bonds on The Stock Exchange of Hong Kong for professional investors only, with eligibility confirmation already received. S&P has assigned a “BBB” rating to both the bonds and the issuer, with a stable outlook.
Net proceeds, after deducting fees and expenses, will be earmarked for debt refinancing and general corporate purposes, including capital expenditures and working capital.
China Education Group is a Hong Kong–listed provider of vocational education services operating in China, Australia and the United Kingdom. Its management system holds ISO-9001 certification, and Deloitte has recognised the group as one of China’s “Best Managed Companies” for seven consecutive years. The World Bank Group designates the company as an “inclusive business.”
Stakeholders are advised that the bond issuance remains subject to final completion conditions and that caution should be exercised when dealing in the company’s securities.
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