HNA's costly bond sale raises red flag

Is HNA's bond yield too good to be true? Some investors warn of risks beneath the hood.

HNA Group, one of the most acquisitive Chinese conglomerates, was out in the international bond markets on Thursday with one of the most eye-catching deals of the year for the wrong reasons.

The group, which has been subject to intense speculation about its shareholder structure and the strength of its political backing, initially marketed a capped $300 million 363-day note around the 9% mark, before fixing the coupon at 8.875% according to a term sheet seen by FinanceAsia.

The unrated deal’s extremely high coupon contrasts sharply with the current trading level of single-B rated Asian high yield credits, which range from the...

¬ 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