Despite widespread fears of a sharp Chinese property market correction, developer Country Garden has revived a US dollar bond deal, with its confidence boosted after Hong Kong property tycoon Lee Shau-kee bought some of its debt in a separate transaction.
The Guangdong-based Chinese builder had held back from tapping public markets after meeting with investors in Hong Kong, Singapore, London and New York, and deciding that market conditions were unfavourable, the FT's Josh Noble writes.
However, late on Tuesday, Country Garden agreed to sell $250m of 5-year debt directly to the family office of Mr Lee, chief executive of Hong Kong developer Henderson Land. The privately placed bond will pay a yield of 7.5 per cent, according to a filing with the Hong Kong stock exchange on Wednesday morning.
Sentiment towards Chinese developers has soured in recent weeks, with data showing falling prices and a slump in construction. That has hit prices for both shares and bonds.
Still, Country Garden will now launch a public bond offering on Wednesday, hoping to build on the vote of confidence from Mr Lee, Hong Kong's third richest man with a net worth of $20bn, according to Forbes.
中国地产开发商碧桂园(Country Garden)无惧人们对中国楼市出现剧烈调整的担忧，启动了又一次以美元计价债券的发行。原因是香港地产大亨李兆基(Lee Shau-kee)在另一起交易中买入了该公司部分债券，令该公司信心大增。
然而，周三晚些时候，碧桂园达成一项协议，向李兆基的家族理财室直接出售2.5亿美元5年期债券。根据一份周四早上提交给香港交易所(Hong Kong Stock Exchange)的文件，这笔私募债券的收益率为7.5%。