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Bond Market News

Wanda and Seazen’s Dollar Bonds Drop

Dollar bonds of Wanda Properties fell as much as 5-8 points after reports of parent Dalian Wanda being in talks with major Chinese banks for a loan relief plan. Sources said that Dalian Wanda asked major Chinese banks to extend its principal repayments for some onshore borrowings amid its liquidity struggle in recent months. The sources said that it was seeking to refinance all onshore loans due this year without repaying the principal and ICBC was among the creditor banks that issued the loans. As per China’s 16-point rescue package rolled out in November, developers can seek “reasonable” extension of existing fundraising for as long as one year. Its 7.25% 2024s fell 8 points to 61.63 cents on the dollar.

Seazen’s dollar bonds also featured among the biggest losers, dropping by 2-3 points across the curve. Seazen reported contracted sales of ~RMB 7.162bn ($1.03bn) for April, a drop of 21% YoY and 10% MoM. Broadly, Chinese property developers’ bonds have been trending lower ever since concerns about Wanda came to the fore, hurting investor sentiment in the sector. Seazen’s 2025s and 2026s are trading at ~55-60 and its 2024s are at ~72-74 cents on the dollar.

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