Evergrande extends equity-linked craze

Booming market gets another boost as China’s third-largest home seller pulls off $2.3 billion convertible bond issue. But lacklustre demand initially saw the deal undergo a last-ditch restructure.
Evergrande chairman Hui Ka Yan became China's second richest man after his stock rose fivefold in the past 12 months.
Evergrande chairman Hui Ka Yan became China's second richest man after his stock rose fivefold in the past 12 months.

China Evergrande Group is the latest to join the convertible craze after the highly-leveraged home seller raised HK$18 billion $2.3 billion from a five-year issue on Tuesday, becoming the fifth Chinese property developer to tap the primary market this month.

Evergrande’s new deal came hot on the heels of a pair of its smaller rivals, namely Future Land and Powerlong Real Estate, which printed $555 million worth of one-year convertible bonds on Monday. That was after Cifi Holdings sold $357 million of bonds last week and  Country Garden pulled off a $2 billion deal two weeks earlier.

Guangdong-based Evergrande was a clear...

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