Evergrande swings wrecking ball through Asian high yield

Property company's bond deal demonstrates all that is wrong with Asia's debt capital markets as fund managers express their disgust.

It should have been one of the year's landmark deals. 

When property company China Evergrande announced an exchange offering for most of its short-dated debt on June 8, its actions were widely applauded. 

Credit analysts and the ratings agencies all underscored the range of measures the company had been taking to improve its liquidity position and extend the maturity profile of its debt. 

Standard Poor's said it did not consider Evergrande's prospective $3.2 billion transaction a distressed exchange and assigned the new money bond issue accompanying it a B- rating.

Only one month earlier, SP had rated...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222