New World scores with tight bond return

The Hong Kong-listed property developer raised $600 million from a deal that appeared to price well inside fair value.

New World Development, controlled by local billionaire Henry Cheng Kar-shun, returned to the international bond markets this week, selling a $600 million unrated 10-year bond that got big demand from yield-hungry investors.

The Reg-S sale, issued under the name of New World China Land, came a week after China Aoyuan, a B2BBB- rated developer, drew an impressive order book of $2.5 billion for its $250 million three-year bond, as fixed-income investors seemingly shrugged off the potential for a correction in Hong Kong and China's red-hot residential property sector.

The need to chase yield remains intact, especialy as the supply of both...

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