Greentown completes turnaround with $400 million bond

Wharf’s strategic stake and talk of a ratings upgrade help the Chinese developer mark its return to international bond markets.

Greentown China completed an impressive turnaround on Monday, raising $400 million from the bond market just three years after breaching covenants on its last bond.

Since then, sales at the Chinese property developer have improved and, in June last year, Hong Kong’s Wharf Holdings invested $650 million to take its stake in Greentown to 24.6%, up from 2%.

That injection of capital, together with some asset sales, has helped Greentown deleverage its balance sheet and encouraged the rating agencies to consider an upgrade.

The $400 million Greentown raised on Monday will certainly help. Moody’s analyst Jiming Zou said last week, when the agency announced...

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