China Overseas $1.5bn triple-tranche deal

The largest-listed mainland developer in Hong Kong wows with Asia’s first triple-tranche Reg S deal, targeting investors on the longer-end of the curve.
The need to build land banks increases amid a buoyant real estate market on the Mainland.
The need to build land banks increases amid a buoyant real estate market on the Mainland.

China Overseas Finance raised a mammoth $1.5 billion triple-tranche senior unsecured bond on Wednesday, extending down the credit curve into the 30-year space, as the need to build land banks increases amid a buoyant real estate market on the mainland.

Considered Asia’s first triple-tranche Reg S bond and the largest dollar-denominated China real estate bond on record, the transaction is split into equal volumes of $500 million in five-, 10- and 30-year tranches, according to a term sheet seen by FinanceAsia.

China Overseas’ existing 2017s, 2022s and 2042s were the closest comparables for the bonds and were trading at 142bp, 269bp and 238bp above...

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