Country Garden pays up for largest high-yield corporate bond from China

Country Garden prices a $900 million seven-year non-call four bond at a generous 11.25% yield amid bearish reports on the property sector.

Country Garden, one of China's largest property developers, early yesterday morning priced a $900 million seven-year non-call four bond. The deal, which is the largest US dollar-denominated high-yield bond by a non-government-linked Chinese corporation, launched amid intensifying concerns over the increasing mountain of debt issued by China's real estate firms.

To raise $900 million, Country Garden had to dangle a juicy yield to investors. The bonds priced at a yield of 11.25% -- right on the final guidance --...

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