The first Chinese property developer to default on its debt in 2015, Kaisa Group has regained credit ratings and is returning to the debt markets with a US dollar bond.
Chinese offshore property bond issuance has more than doubled this year, while the average yield-to-maturity for non-investment grade bonds in the sector has risen to its highest level ever.
Urgent refinancing needs have driven Fantasia and Greenland to sell US dollar bonds. But with the coupon on Fantasia’s paper at 15%, they are having to pay up for the privilege.
As policy is relaxed, more Chinese real estate firms are looking onshore for funding. Recent deals include bonds from Evergrande, Shimao Property and Yuzhou Properties.