Country Gardens (2007 HK; Baa3/BB+/BBB-) & Logan Group (3380 HK; Ba2/BB/BB)
Real Estate
Hong Kong property developer Country Gardens and Logan Group both tapped the convertible bond market during the week leading to the New Chinese Lunar Year with 4-year USD 500m and USD 250m equivalent issues, aiming to refinance offshore debt. These partial refinancings may pave the way for more equity-linked issues and invite investors to re-consider the battered property market as the PBOC ease monetary conditions and revisit access to liquidity.
Edition: 128
- 04 February, 2022
A closer look at Chinese Developers’ JV exposure
Real Estate
Lucror’s Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. In this report, they discuss how Chinese developers have increasingly been using JV projects to scale up. In 2020, an average of c.40% of developers’ contracted sales came from unconsolidated JV projects, significantly higher than 23% in 2017. Companies flagged with extensive JV exposure and possibly considerable off-balance sheet debt include Yuzhou, Sino-Ocean, Jinmao, CIFI, KWG, Logan and Times Property.
Edition: 114
- 09 July, 2021