Country Garden Unit Sells Local Bond at 4.5%

Country Garden Real Estate Group Co, a unit of Country Garden sold an onshore yuan bond raising RMB 500mn ($74mn) with a 3Y tenor at a yield of 4.5%. The bond has an adjustable coupon and a put option in the first and second year. The issuance comes at a time when the Chinese government has taken various steps to lift the property sector that is under pressure due Covid lockdowns, declining sales, and falling home prices amid record defaults on debt. Bloomberg reports that three real estate companies, Country Garden, Longfor Group, and Midea Real Estate planned to sell a combined RMB 2bn ($299mn) of debt. 

Country Garden’s dollar bonds were trading higher with its 3.875% 2030s up over 0.8 points to 59.55 yielding 11.51%.