Evergrande scales new heights with Asia's largest high-yield bond

Evergrande sells Rmb9.25 billion of synthetic offshore renminbi bonds on Friday, while Hopson prices its $300 million bond with a 11.75% yield.

Guangzhou-based property developer Evergrande Real Estate early Friday morning priced a Rmb9.25 billion $1.4 billion dual-tranche synthetic offshore renminbi bond. The Reg-S bond is denominated in renminbi and settled in US dollars. The deal is the largest Asian high-yield bond ever and the largest Reg-S bond since 2001.

Bank of America Merrill Lynch was the global co-ordinator and joint bookrunner with BOC International, Citi and Deutsche Bank.

Evergrande is the third Chinese real estate company to issue a renminbi bond in the synthetic format, following Shui On Land and SCE Property. The high-yield bond underscores a growing acceptance of local currency-denominated but US dollar-settled bonds. Tailored to meet global investor appetite for exposure to...

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