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(Bloomberg) -- Greentown China Holdings Ltd. priced a $350 million bond to refinance offshore debt, the first dollar note sold by a major Chinese property firm since 2023.
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The state-backed company is issuing the three-year note, callable after two, at a yield of 8.45%, according to a person familiar with the matter who asked not to be identified. That’s 40 basis points tighter than initial price guidance. Greentown earlier Thursday unveiled an offer to repurchase two dollar bonds maturing later this year that are trading near par.
In the wake of China’s prolonged property crisis, the country’s developers stopped selling dollar bonds after being voracious issuers of such debt. Dalian Wanda Group Co.’s property-management arm had been the last to do so, pricing two such notes in early 2023. Greentown’s previous dollar bond was sold three years ago.
“Greentown is a rare high-quality China property issuer that is still with solid funding channels and decent operations,” said Iris Chen, a credit desk analyst at Nomura International HK Ltd.
Thursday’s bond sale occurred on the heels of Bloomberg reporting that authorities are working on a proposal to help China Vanke Co., one of the country’s largest distressed builders, plug a funding gap of about 50 billion yuan ($6.8 billion) this year. The sector’s distressed firms continue to struggle amid still-soft new-home sales.
Like Vanke, Greentown is also linked to a state-owned company. China Communications Construction Group Ltd. owns 29% of Greentown’s equity, according to Greentown’s latest interim report.
--With assistance from Alice Huang and Trista Xinyi Luo.
(Updates throughout.)
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