Greenland saves over 100bp on new Safe rules

The state-owned Chinese developer raises a $1 billion dual-tranche bond — the first new offshore guaranteed instrument from the mainland after policy reform.

Chinese property developer Greenland Holdings sold a $1 billion dual-tranche bond on Wednesday, making use of the recent relaxation of rules governing cross-border guarantees in China.

The rules part of China’s attempts to loosen capital controls became effective on June 1 and allow onshore companies to merely register cross-border payment guarantees with Safe rather than seek the regulator’s approval.

Previously the regulator rarely approved offshore funding using explicit guarantees deemed much safer than keepwell deeds and when it did grant approval it was mostly to large state-owned entities deemed  economically strategic such as steel, oil and gas, credit analysts said.

Keepwell deeds, similar...

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