China developer Greentown to issue $150 million additional bonds to refinance debt (updated)

Greentown China Holdings

18/02/2025 11:29

(Updates with issue size in paragraph 1, pricing in paragraph
4)
    By Clare Jim and Rishav Chatterjee
       Feb 18 (Reuters) - Greentown China  3900.HK  said on
Tuesday it will issue additional dollar bonds worth $150 million
to help refinance its existing borrowings, after offering the
first dollar bond sale in the sector in two years last week. 
    The state-backed property developer last week said it sold
$350 million worth of 8.45% senior notes due in 2028, the first
dollar bond sale by a Chinese property developer since early
2023, in a sign that some investor appetite for
speculative-grade China property debt could be returning.
    The additional bonds will have the same tenor and coupon to
form a single series, Hangzhou-based Greentown said in a filing.
The proceeds from the new issues will be used partly to fund the
repurchase of two of its dollar bonds.
    The offering price of the additional notes will be 100.5%
and the issue yield will be 8.258%, it added.
    The developer last week offered to buy back part of the $741
million of outstanding bonds due in April 2025 and July 2025.
The firm will determine the maximum acceptance amount of the
repurchase after the offer expires on February 20. 
    The Hong Kong-listed company's refinancing comes amid
heightened investor caution following a spate of defaults in
China's property sector as residential and commercial markets
continued to struggle.
    S&P Global Ratings said in a note on Friday that Greentown's
proposed notes could boost the developer's liquidity and provide
room for new investments.
    S&P added that the issue showed Greentown's access to
funding channels might be expanding beyond onshore bonds and
onshore banks, noting that it had issued 1 billion yuan ($137.37
million) of onshore bonds in January.    
    Deutsche Bank and HSBC are the joint bookrunners of the
proposed additional notes offering. 
     
    ($1 = 7.2797 Chinese yuan renminbi)

 (Reporting by Rishav Chatterjee in Bengaluru and Clare Jim in
Hong Kong; Editing by Mrigank Dhaniwala, Kate Mayberry and Susan
Fenton)
 ((mailto:Rishav.Chatterjee@thomsonreuters.com;))