KWG Property upsizes bond to $400 million despite Wen's speech

KWG Property tested investors’ appetite for single-B rated bonds from property companies late Thursday night when it became the second Chinese real estate company to print a dollar bond this week, following hot on the heels of Agile Property.

The deal was upsized from the targeted $300 million to $400 million despite Chinese premier Wen Jiabao’s speech on Wednesday, which subsequently led to a sell-off in China real estate stocks and bonds. Wen had said that China’s home prices are still far from reasonable an indication that property curbs are likely to be in place for longer than expected.

Despite this, the deal attracted a $1.5...