A tale of two property bond issues

Longfor Properties and Kerry Properties both tapped the dollar bond market at the end of last week, but they experienced contrasting fortunes.
Longfor chairwoman Wu Yajun ranked eighth among the richest people in China by Forbes in October 2010.
Longfor chairwoman Wu Yajun ranked eighth among the richest people in China by Forbes in October 2010.

The end of last week saw continued bond issuance from Asian property companies. But the two transactions, one high-yield and one investment grade, were a contrast in demand and performance.

Longfor Properties

First, the winner. Longfor Properties, a leading mainland Chinese firm, raised $750 million in a heavily subscribed five-year deal on Thursday.

The Regulation-S144a issue pays a 9.5% semi-annual coupon and was re-offered to investors at par. The final maturity date is April 7, 2016, but the issue can be called by Longfor at 104.75 and 102.375 after three and four years respectively.

The senior unsecured notes are...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222