evergrande-raises-750-million-from-highyield-bond

Evergrande raises $750 million from high-yield bond

EvergrandeÆs $750 million high-yield issue hits the market on a day when trading suffers in response to President ObamaÆs proposed new limits on US banks.
 Evergrande's chairman Xu Jiayin
Evergrande's chairman Xu Jiayin

For an outsider looking in, Evergrande's bond deal was going to be a tough sell. China has recently tightened regulations for the property sector and, in the US, the regulatory environment is closing in on banks.

Indeed, critics were a bit circumspect about the timing of the deal, but Evergrande Real Estate went ahead and priced a $750 million high-yield Reg-S bond in the early hours of Friday morning Hong Kong time, on the back of a very tough trading day in the US. The five-year notes pay a coupon of 13% and were re-offered at par, which means the yield to maturity January 27, 2015 is also 13%. At the...

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