Evergrande crisis locks Chinese developers out of global debt market
Chinese property developers’ issuance of dollar debt has come to a near standstill as the escalating Evergrande crisis severs other real estate companies’ access to global capital markets.
High yield dollar bond issuance by Chinese developers during the year to date is down a record 97 per cent compared to the first quarter of 2021, according to Financial Times calculations based on data from Refinitiv.
So far just two deals worth less than $295mn in total have gone through, compared with more than $8.7bn in the first three months of last year raised across 30 deals. At the same time, developers’ costs to borrow on international markets has leapt to an all-time high.