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China Evergrande, Sunac issue 4th dollar bonds in six months

Hong Kong

CHINA Evergrande Group and Sunac China Holdings have sold US$2 billion and US$750 million in senior notes respectively, in what was the fourth issuance of dollar bonds for both these developers in six months.

The dollar bond market has seen a rapid rise in issuance by Chinese property developers since the beginning of the year, as a broad stock market rally and investor expectations for fewer interest rate rises have boosted risk appetite.

Evergrande said in a filing late on Monday that the coupon rates of the three-year, four-year and five-year bonds were 9.5 per cent, 10 per cent and 10.5 per cent, respectively. It will use the proceeds to refinance existing debt and for capital expenditures, it said.

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Taken together with the latest issuance, Evergrande has sold US$7.8 billion of bonds in the past six months, while Sunac has sold US$2.5 billion. The notes due October 2023 issued by Sunac, the fourth largest developer in China, carry an interest of 7.95 per cent, according to a filing on Tuesday. REUTERS