Urgent refinancing needs are driving two Chinese property developers, Fantasia Holdings Group and Greenland Hong Kong Holdings, to sell US dollar bonds. But high coupons are needed to get them away. So desperate is Fantasia’s situation, in fact, that its bond coupon is 15%, the highest for a US dollar bond from Asia so far this year.
Fantasia’s three-year non-put two US dollar bond is being marketed on Thursday at a final price guidance of 15%, and has an expected rating of B3 from Moody's, which is highly speculative and below investment grade. The purpose of the paper is to refinance existing debt.
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