Indebted Sunac China works hard to sell $1b bond

The Chinese property developer offered an attractive pickup versus Evergrande to attract yield-hungry investors and hired an array of bankers to eke out $2.2b worth of demand. Still the bonds traded down in the after market.

Sunac China knew it would be hard work to sell $1 billion-worth of bonds given the recent scrutiny of its string of acquisitions, the fact it was on credit-watch negative and an eye-popping leverage ratio. So it took no chances.

The Tianjin-based home builder offered an attractive yield pick-up over its larger rival Evergrande and hired a wide array of bankers to market eke out investors looking for fixed income assets. 

Sunac China's Reg S sale needed to overcome concerns following a slew of high-profile acquisitions in the past few months, including a Rmb43.8 billion $6.51 billion purchase of 13 cultural and tourism projects from Dalian...

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