“Chinese property companies are marketing U.S. dollar-denominated bonds, ending a three-week pause in issuance from the region. Debt risk in Asia fell to the least in almost 20 months.
Country Garden Holdings Co. (2007), based in China’s southern Guangdong province, is offering 10-year notes to yield about 7.75 percent, according to a person familiar with the matter.Kaisa Group Holdings Ltd. (1638), headquartered in Shenzhen, plans to sell seven-year bonds at 10.25 percent, a person with knowledge of that deal said, also asking not to be identified because the terms aren’t set. Hopson Development Holdings Ltd. (754) meanwhile hired banks to help arrange fixed-income investor update meetings from Jan. 7, a person familiar with the matter said.
The real-estate companies would be the first issuers in Asia to sell debt in the U.S. currency since Zoomlion Heavy Industry Science and Technology Co. issued $600 million of 10- year securities Dec. 13, according to data compiled by Bloomberg. The cost of insuring corporate and sovereign bonds from non-payment in Asia outside of Japan has fallen to the lowest level since April 2011, prices from credit-default swap traders show.
“Sentiment is good so they want to take the chance when the window is still open to raise funds,” said Louisa Lam, a Hong Kong-based credit analyst at HSBC Holdings Plc. “We’ve already seen a long pipeline building late last year, so this month will be quite positive.”
Companies in Asia pay an average 3.86 percent to sell dollar bonds, the least in data going back to 1996, according to Bank of America Merrill Lynch indexes as of Dec. 31. That compares with 2.57 percent for companies globally, also the least in 16 years….”
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