Country Garden, one of China's largest property developers, early yesterday morning priced a $900 million seven-year non-call four bond. The deal, which is the largest US dollar-denominated high-yield bond by a non-government-linked Chinese corporation, launched amid intensifying concerns over the increasing mountain of debt issued by China's real estate firms.
To raise $900 million, Country Garden had to dangle a juicy yield to investors. The bonds priced at a yield of 11.25% -- right on the final guidance -- and at an 821.4bp spread over Treasuries. The coupon was fixed at 11.125%.
Goldman Sachs and J.P. Morgan were joint global co-ordinators as well as joint bookrunners together with Deutsche Bank.
The new bonds,...
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