Hydoo, high yield, high price

Chinese trade centre developer executes a debut international bond but has to offer investors a 14% yield to clear the market.

Chinese trade centre developer Hydoo International Holdings successfully executed its debut international bond offering on Tuesday but only after offering investors an eye-watering 14% yield to clear the market.

The double-digit return set a new line in the sand for the higher yielding end of the Chinese property sector. For while there are other outstanding transactions with similarly high coupon levels, they were all originally sold with five non-call three structures, which typically command slightly higher yields to compensate for the call option.

By contrast, Hydoo's $100 million B3B-B rated deal had a three-year bullet structure. The Reg S transaction was priced mid-morning on Tuesday...

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