SHANGHAI Zendai Property Ltd, which develops real estate in China, raised US$150 million from its first dollar-denominated bond sale, according to an e-mail sent to investors, Bloomberg News reported yesterday.
The Hong Kong-listed developer priced the five-year fixed-rate notes to yield 10 percent, or 5.19 percentage points above United States Treasuries, the term sheet shows. Merrill Lynch & Co manages the sale.
The bonds are rated five levels below investment grade at B2 by Moody's Investors Service, and one level higher at B+ by Standard & Poor's.
Shanghai Zendai's profit rose 14 percent to HK$230.5 million (US$30 million) in 2006 as it sold more properties in China. At the end of 2006, it had HK$814 million of bank loans, with HK$351 million due in one year, according to its earnings report.
Real estate up
Property prices in 70 large and medium-size Chinese cities rose 5.3 percent in February from a year earlier, according to a government survey. New home prices increased 9.9 percent in the southern city of Shenzhen and 9.7 percent in Beijing.
Lai Fung Holdings Ltd, a Hong Kong-based developer of property in China, in March sold US$200 million of seven-year bonds priced to yield 9.125 percent. The securities, rated B+ by S&P, now trade at 4.47 percentage points more than US Treasuries, according to Merrill Lynch.