Beijing Capital Land joins hybrid bond rush

The Chinese developer is the latest borrower to tap the perpetual debt market as investors pay for greater pickup in paper that has a high call incentive in year five.

Beijing Capital Land raised a $450 million perpetual offering that is callable in year five, the latest Asian borrower to tap the hybrid capital market in recent weeks.

Investors clamoured for the structurally appealing note as the likelihood of being called in year five is high, said sources close to the transaction. It received a total order book of more than $3.5 billion from 150 accounts, with 89% of the notes going to Asian investors and the rest to European investors.

Because of the overwhelming demand, Beijing Capital Land was able to tighten pricing from initial price levels of 7.375% area to 7.125%, a good 25bp worth...

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