KUALA LUMPUR (July 20): Country Garden Holdings sold up to US$600 million (RM2.57 billion) of five-year bonds in Hong Kong yesterday, reported the South China Morning Post.
The developer, one of the largest in China, said the bonds would pay a coupon of 4.74% and would have an option for the company to redeem before maturity.
Country Garden’s move, which followed a number of issuances, means that curbs against Chinese property developers to raise funds have now been relaxed.
The developer said the bonds would pay a coupon of 4.74% and would have an option for the company to redeem prior to the maturity.
Goldman Sachs and Deutsche Bank were the joint global coordinators and proceeds will be used for refinancing early redemption of the 2019 Notes and for general working capital needs, the Hong Kong English daily reported.
Developers such as Longfor and Greentown China have also sold bonds offshore.
China enacted curbs last year that made it hard for mainland Chinese developers to issue onshore corporate bonds.
The South China Morning Post also reported that the country’s National Development and Reform Commission also halted granting quotas for offshore dollar bond issuance in the second quarter of this year.
Country Garden hit the news when the Chinese government in January banned its citizens from converting yuan into other currencies for overseas property purchases in an effort to further curb capital outflows.
As a result, many Chinese purchasers of foreign developments such as Country Garden’s Forest City megaproject in Johor cannot send money out of China to continue making payments.