Shimao prices challenging $350 million high-yield bond

Shimao Property last night priced a challenging $350 million seven-year non-call-four at a yield of 11% amid growing investor concern over looming new supply.

China property developer Shimao Property last night priced a $350 million bond at a yield of 11%.

The seven-year non-call-four deal proved challenging for the leads Morgan Stanley and Standard Chartered as investors had concerns over the heavy calendar of issuance from China property companies and some fatigue had settled into the sector as a whole.

The initial price whisper on the bonds was in the 11% area and the bookrunners tightened the final guidance to 10.875% to 11%, with the bonds pricing at the wide end of that range and being issued at par.

The leads built an orderbook of $765 million from...

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