Gemdale offers to buy back all its offshore USD and yuan bonds

Singapore

GEMDALE, a China real estate company, is buying back all its offshore US dollar and Chinese yuan bonds because it can now get cheaper funding at home.

Bondholders are likely to welcome the buyback as the prices offered are at a premium; it will also be a relief for the offshore investors as the dim sum market has seized up over fears of further weakness in the yuan. Offshore CNY or CNH has fallen about 3 per cent against the US dollar since the beginning of the year.