China builders seize window for bond issues

Sentiment has improved after first interest rate cut in almost two years


CHINA'S property developers ended a month-long drought in the US dollar high-yield bond market this week, taking advantage of renewed interest in the sector following the central bank's interest rate cut.

Junk-rated developers Logan Property, Yuzhou Properties and Sunac China Holdings all tapped the market, raising a combined US$900 million. Greenfield project developer Zhuhai Da Heng Qin is currently marketing a debut offshore yuan bond, while China Aoyuan Property is also gearing up to issue a dim sum deal.

"Property companies will continue to access the offshore bond market on an opportunistic basis given the importance of pre-funding maturities," said Charles Macgregor, Singapore-based...

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