Jinmao launches tender for $600m perpetual convert

The flagship property unit of Sinochem Group hopes to buy back its outstanding -- and relatively rare -- perpetual bond as part of a capital management exercise.

Jinmao launches tender for $600m perpetual convert

China Jinmao Holdings announced on Tuesday a partial tender offer for its outstanding $600 million issue of perpetual subordinated convertible securities to help rejig its capital structure and ultimately lower its borrowing costs. 

The relatively debt-light, BBB-BBB-Baa3 rated property developer is offering to buy back the bonds at 108% of face value, representing a pickup of about 125 basis points over Tuesday’s closing price at 106.75.

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