Locals go for bonds issued by China firms

RICH local investors, in search of alternatives, are snapping up bonds issued by Chinese companies, including those sold by property developers.

A $400 million, three- year 6.2 per cent issue for Yanlord Land Group late last month received $5 billion orders and was 12.5 times subscribed. It came on the heels of a maiden SGD issue by Far East Horizon Ltd, which attracted $3.8 billion in orders for its $400 million three-and- a-half-year 4.25 per cent bonds.

Last week, Central China Real Estate (CCRE) sold $200 million three-year bonds at 6.5 per cent and received orders of $1 billion.