Evergrande sells downsized $1b bond

The Chinese developer launches first single-B rated bond of 2015 at a fixed-rate of 12% but failed to garner enough demand for its original target size of $1.5 billion.

Evergrande Real Estate sold a downsized $1 billion five-year bond on Tuesday night that is callable in year three, signalling continued poor investor sentiment towards the broader Chinese property sector despite ebbing concerns towards Kaisa.

The Guangdong-based Chinese developer, which launched the deal with final guidance fixed at 12% on Tuesday morning, downsized the offering from an initial target size of $1.5 billion, suggesting the pricing was far more aggressive than anticipated.

We haven't seen this type of marketing strategy for a while, said Oscar Chow, head of Asia credit research at Mitsubishi UFJ Securities Hong Kong to FinanceAsia. They should've come out with...

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