Poly attracts muted orderbook as investors stay selective

Poly Real Estate prints its debut $500 million, but has to pay a 30bp new-issue premium.
One of Poly's developments in Qingdao, described as an aristocratic seaside manor
One of Poly's developments in Qingdao, described as an aristocratic seaside manor

Poly Real Estate, China’s second-biggest developer, has tested the waters with a $500 million debut bond, but investors’ reception to the deal proved that they remained cautious, particularly towards paper out of China. The deal attracted a muted order book of $1.5 billion.

“I think investors are rightly being very selective at present,” said one banker away from the deal. “They wanted to be compensated for the keepwell deed and macro concerns.”

Poly Real Estate was the first Chinese company to price since China Huaneng’s bond in early June. But in contrast to that deal, which lurched across the finish line thanks to support from the Chinese...

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