Greentown taps dim sum arbitrage opportunity

Greentown China tapped the market on Monday night with a Rmb2.5 billion $405 million debut three-year dim sum bond, becoming the latest China property company to take advantage of liquidity in the dim sum bond market.

The deal offered cost savings compared to the dollar market and Greentown attracted an order book in excess of Rmb16 billion $2.6 billion, suggesting there was still plenty of unfulfilled demand that other borrowers could potentially tap.

“There’s plenty of unsatisfied demand for offshore renminbi bonds, so we could see more issuers come to market,” says one source.

The dim sum market has been widening to include...