High-yield back as Yuzhou closes heavily subscribed bond

Fujian-based developer Yuzhou Properties attracts a $9 billion book for its $250 million high-yield bond.

Yuzhou Properties demonstrated last night that the high-yield market is alive and kicking after pricing a $250 million deal.

The five-year non-call-three bond priced at 11.95%, at the tight end of the 12% plus or minus 5bp final guidance and a significant 55bp inside the initial guidance of 12.5%.

The deal attracted an order book of $9 billion 35 times more than was on offer. Bankers away from the deal have commented that the inflated orders on recent deals have reached “ridiculous levels”, but deals were struggling to get any orders at all not so long ago.

China Hongqiao and Xac Bank were both...

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