Wanda raises $400 mln in dollar bonds in milestone for China property sector

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Wanda raises $400 mln in dollar bonds in milestone for China property sector
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Dalian Wanda Commercial Management raised $400 million in a U.S. dollar bond, a term sheet seen by Reuters showed, in the first publicly sold dollar bond by a Chinese property-related firm since late 2021 when the sector's debt crisis came to a head.

Investor confidence in China's property sector has been hit by a string of debt defaults, and bond exchanges to extend repayments since late 2021 when the liquidity troubles of China Evergrande GroupFinal pricing for Wanda's 11%, two-year bond was set with a yield of 12.375%, compared to the initial price guidance given to investors of 12.625%, the term sheet showed.

"This deal reopened the dormant China property and high-yield bond market, and received an active and positive reaction," it added. Blackrock, Fidelity, Pictet AM and PAG did not immediately respond to requests for comment. Invesco declined to comment. Moody's assigned a rating of Ba3 to the notes, while Fitch Ratings assigned BB. Both are high-yield grades.

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