Investors snap up Wanda bonds in bet on China property revival
Chinese property developer Dalian Wanda’s second dollar bond sale in less than a month was quickly oversubscribed on Monday, pointing to a renewed hunger from global finance after years of concern with the financial health of China’s highly indebted real estate groups.
The sale of a three-year US dollar bond by Wanda received orders worth around $500mn, according to two people familiar with the deal, who said the developer had planned to raise as much as $300mn from the offering.
The latest debt sale by Wanda, which had already brought in $400mn from a bond issued in January, underscored a nascent recovery for high-yield dollar debt in Asia. Sales had all but evaporated over the past two years as Chinese authorities clamped down on excessive leverage in the sector. Issuer Wanda Properties Global set guidance for the bond’s yield at around 12.5 per cent.
万达最新发债突显出亚洲高收益美元债券初现复苏。万达此前已通过1月份发行的债券筹集了4亿美元资金。过去两年，随着中国政府打击房地产行业的过度杠杆，该行业债券发行几乎蒸发。此次债券发行人Wanda Properties Global为该债券的收益率设定的指导价为12.5%左右。