Sunshine 100 closes rare high-yield CB

Beijing-headquartered property developer printed a $200 million dollar convertible bond, offering offshore investors rare exposure to high-yield credit in the CB market.
Sunshine 100 International New Town in Tianjin, China
Sunshine 100 International New Town in Tianjin, China

Chinese property developer Sunshine 100 Holdings raised $200 million from its debut convertible bond sale on Thursday, turning to equity investors to partially refinance an existing 12.75% vanilla bond that falls due next year.

The B-B- rated company's switch from straight debt to convertible debt financing came as a surprise to some bankers. Asia's sub-investment grade rated companies have shunned the Asia ex-Japan convertible bond market in recent years, relying on conventional bonds and bank loans to hit their funding targets.

That gave the five year deal puttable and callable after three years a scarcity value that...

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