Mainland developer Greentown to issue US$350 million bond to refinance debt.

State-backed developer Greentown China said it would issue a US$350 million bond to help refinance its existing borrowings, the first major issuance of dollar-denominated debt by a mainland property firm since early 2022.

The three-year notes issued by the Hangzhou-based company have a yield of 8.45 per cent, according to a filing on Friday with the Hong Kong stock exchange. Greentown said it would use the proceeds to refinance its debt and buy some of its outstanding notes.

While the domestic bond issuance market has “stayed somewhat open for selected developers throughout”, Greentown’s deal was the first of its kind by a Chinese home builder since a property crisis kicked off a few years ago, which could help “boost its liquidity and provide headroom for new investments”, S&P Global Ratings analysts said on Friday.

Source: SCMP