Despite widespread fears of a sharp Chinese property market correction, developer Country Garden has revived a US dollar bond deal, with its confidence boosted after Hong Kong property tycoon Lee Shau-kee bought some of its debt in a separate transaction.
The Guangdong-based Chinese builder had held back from tapping public markets after meeting with investors in Hong Kong, Singapore, London and New York, and deciding that market conditions were unfavourable, the FT's Josh Noble writes.
However, late on Tuesday, Country Garden agreed to sell $250m of 5-year debt directly to the family office of Mr Lee, chief executive of Hong Kong developer Henderson Land. The privately placed bond will pay a yield of 7.5 per cent, according to a filing with the Hong Kong stock exchange on Wednesday morning.
