Country Garden raises $7.8b through bonds

Business | Bloomberg and Reuters 23 Nov 2018

Country Garden (2007) raised HK$7.83 billion in a convertible bond sale, as it takes on higher-cost funding to push out repayments.

China's biggest developer by sales priced its five-year convertible bonds with a 4.5 percent coupon, according to a Hong Kong exchange filing yesterday. The securities carry a 30 percent conversion premium.

Proceeds will be used to help fund a concurrent repurchase of zero-coupon convertible bonds due in January, the filing shows.

Any remaining proceeds will be used to refinance offshore debt.

JPMorgan Chase & Co and Goldman Sachs Group were joint global coordinators, while HSBC Holdings (0005) was a joint lead manager.

Shares of Country Garden fell 3.51 percent, closing at HK$9.34 after trading resumed in Hong Kong yesterday.

In other news, Chinese conglomerate HNA Group has turned to state-owned China Cinda Asset Management (1359), among the country's largest bad debt managers, for advice on asset disposals, according to sources.

HNA Group's vice president, Dennis Chen, the nephew of chairman Chen Feng, met with Cinda President Chen Xiaozhou on Tuesday to discuss cooperation, according to the people, who declined to be named as the information is confidential.

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