After Chinese language property sector battered, Seazen checks market with greenback bond difficulty

Rivai H Tukimen

HONG KONG, Could 30 (Reuters) – Seazen Group Ltd (1030.HK) is planning to difficulty a U.S. greenback bond, a time period sheet confirmed, changing into one of many few Chinese language property builders this yr to check investor urge for food for a sector within the throes of a debt disaster.

There was little company bond exercise from Chinese language actual property builders after a lot of the trade grew to become gripped by a liquidity squeeze final yr.

The credit score crunch, triggered by tighter debt cap guidelines, has pushed some builders akin to China Evergrande Group (3333.HK) into default, rattling investor confidence within the sector which accounts for a couple of quarter of the nation’s whole financial output.

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Shanghai-based Seazen will difficulty a 364-day inexperienced bond with an anticipated yield of seven.95%, in accordance with a time period sheet seen by Reuters.

The corporate mentioned in a submitting on Monday it is going to assure inexperienced notes that its unit New Metro World Ltd has proposed issuing however gave no particulars. Seazen didn’t instantly reply to a request for remark.

State-backed Greentown China Holdings Ltd (3900.HK) and Sino-Ocean Group Holding Ltd (3377.HK) bought greenback bonds this yr that had been accompanied by credit score standby letters. Greentown additionally issued notes price $150 million that had been mixed with a 2020 difficulty.

Seazen intends to make use of the proceeds to refinance mid-to-long-term offshore debt due inside one yr in addition to for inexperienced initiatives, in accordance with the time period sheet which additionally confirmed Haitong Worldwide as the only real adviser.

Seazen has $400 million price of notes maturing in June and one other $400 million mixed due in August and September, Refinitiv information confirmed.

Citing weakening gross sales, a decrease liquidity buffer and constrained funding entry, Moody’s this month lower its company household score for Seazen debt to Ba2 from Ba1, and its backed senior unsecured score on bonds issued by New Metro World to Ba3 from Ba2. It put all on overview for additional downgrade.

Seazen’s shares fell 0.6% on Monday, whereas the Cling Seng Mainland Properties Index (.HSMPI) was principally flat.

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Reporting by Scott Murdoch; Writing by Clare Jim; Modifying by Christopher Cushing and Edwina Gibbs

Our Requirements: The Thomson Reuters Trust Principles.

https://www.reuters.com/enterprise/sustainable-business/chinas-seazen-plans-issue-795-364-day-green-bond-term-sheet-2022-05-30/

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