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Bonds
BusinessBanking & Finance

Chinese property firm Dalian Wanda to tap offshore bond markets for second time this year with US$300 million offering

  • The notes have been oversubscribed by more than one-and-a-half times as of 7pm local time on Monday, sources say
  • Lead manager Credit Suisse says China’s property sector is slowly reviving and is optimistic more deals wiill ensue

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Dalian Wanda Commercial Management’s moves in the offshore market come as Beijing tries to shore up its housing market, a key pillar of China’s economic growth. Photo: Reuters
Pearl Liu
Dalian Wanda Commercial Management is poised to issue US$300 million of high-yielding bonds in the coming days, its second dollar-denominated note offering in less than a month, according to people familiar with the matter.
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The company, Chinese conglomerate Dalian Wanda Group’s commercial property management arm, was marketing the three-year notes with an initial price guidance of 12.5 per cent earlier on Monday, the people said. It was oversubscribed by more than one-and-a-half times by 7pm Hong Kong time.

The company raised US$400 million from the sale of two-year notes on January 13 to yield 12.375 per cent, which were oversubscribed by two-and-a-half times, according to sources. The new offering is likely to offer the same yield, they added.

“We are glad to see the sector reviving, and after this second deal, hopefully we will see more,” said Terence Chia, head of debt capital markets syndicate for Asia-Pacific at Credit Suisse, which led the deal. “Investors were hurt by the defaults and the turmoil in the sector, and [are] glad to see the [property] market is slowly recovering. But still they will be very selective and only choose quality names.”

The bank has a couple of deals in the pipeline and hopes they will be completed “over the next month or so”, Chia said.

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Dalian Wanda Commercial Management, which owns and operates hundreds of Wanda Plazas across the country, declined to comment when contacted by the Post.
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