Greentown China Issues $350 Million Bond in First Dollar Note Sale by Major Chinese Property Firm Since 2023
* Issuer: Greentown China Holdings Ltd.
* Bond Value: $350 million
* Purpose: Offshore debt refinancing
* Yield: 8.45%
* Maturity: Three years, callable after two
* Pricing Guidance: 40 basis points tighter than initial
* Previous Dollar Bond Issuance: Three years ago
Background:
Amid China's property crisis, developers have suspended dollar bond issuances. Greentown's bond sale is the first such issuance by a major Chinese property firm since early 2023.
Analysis:
* Greentown remains a financially sound property issuer with stable operations and funding channels.
* The bond sale follows reports of government proposals to assist distressed developers such as China Vanke.
* Greentown is affiliated with state-owned China Communications Construction Group, which owns 29% of its equity.
Key Insight:
Greentown's bond issuance signals a renewed confidence in the Chinese property sector, indicating that some developers have weathered the crisis and are accessing capital.