China's Gome makes its dollar bond debut

The Chinese electronics retailer completed its maiden US dollar bond sale as investors overlooked their corporate legacy and challenging operating outlook.

China’s Gome Electrical Appliances Holdings completed its first-ever US dollar-denominated bond offering last Friday, as the Hong Kong-listed retailer seeks to diversify its funding channel.

The company, rated BB by SP, was founded by shamed billionaire Huang Guangyu, who was handed a 14-year jail sentence for bribery, insider trading and illegal business dealings. Huang, a high-school dropout who became China’s richest man, retains a sizeable stake in the company.

Gome issued a profit warning on Febuary 22, telling investors it expected its 2016 profit to be down by between 65% and 75% compared to the previous year's figures. This is in part due to...

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