Chinese Estates (0127), together with chief executive Kimbee Chan Hoi-wan and Joseph Lau Luen-hung's family, has subscribed for Kaisa Group's (1638) US dollar bond issue for a total of US$300 million (HK$2.34 billion).
Of this amount, US$150 million will be acquired by the mainland developer.
Kaisa is issuing US$500 million senior notes due 2025 to refinance the notes due 2024 and other existing medium- to long-term offshore debt that will become due within one year.
The notes bear an interest rate of 11.7 percent per annum, payable semi-annually, commencing November 11.
A Chinese Estates spokesman said the developer is focused on investments in major mainland companies of high calibre and has invested in dozens of mainland stocks or bonds.
Meanwhile, mainland developer China Overseas Land & Investment (0688) said its operating profit rose 10.3 percent to 6.18 billion yuan (HK$7.4 billion) for the first quarter. Revenue grew by 31.9 percent to 27.28 billion yuan while contracted sales jumped 49.7 percent to 89.41 billion yuan due to a low base a year ago when the domestic market was hard hit by the Covid-19 pandemic. Shares of China Overseas Land & Investment slid 0.1 percent.