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[h=2]S’pore condos for mainland rich funded by bonds[/h]
November 8th, 2013 |
Author: Online Press
A worker enters a construction site in the Fun City
apartment complex, developed by China Vanke Co., in the Fangshan district of
Beijing. Vanke has teamed up with Keppel Land Ltd. for the development of 726
flats in east Singapore.
(6 Nov) – Faced with curbs on luxury residences and fundraising at home, China’s biggest mainland-listed
property developer is building apartments for wealthy Chinese in Singapore and
raising debt in the city’s currency.
China Vanke Co., which also plans developments in San Francisco and Hong
Kong, sold S$140 million ($113 million) of four-year notes with a 3.275 percent
coupon on Oct. 31, according to data compiled by Bloomberg. That’s a premium on
the average 1.8 percent coupon for Chinese bonds in the currency. The yield on
the company’s five-year U.S. dollar bonds fell 54 basis points since June, to
4.14 percent on Nov. 5, data compiled by Bloomberg show.
Vanke has teamed up with Keppel Land Ltd. for the development of 726 flats in
east Singapore as foreign
Chinese buyers have emerged as the top overseas buyers of residential property
in the city-state this year. Mainland builders are accelerating projects abroad
as people from the world’s most-populous country seek access to education,
healthcare and citizenship abroad, said London-based broker Savills Plc.
“Chinese developers have been looking offshore for funding for many years now
but there’s more impetus to do it now after the government turned the credit
taps off,” said James Macdonald, Shanghai-based head of research at Savills
China. “Being able to turn to overseas bond markets is important to Chinese
developers as these markets are not tied to government policy and prices are
dictated by the market.”
Read more:
http://www.bloomberg.com/news/2013-...inland-rich-funded-by-bonds-china-credit.html
A worker enters a construction site in the Fun City
apartment complex, developed by China Vanke Co., in the Fangshan district of
Beijing. Vanke has teamed up with Keppel Land Ltd. for the development of 726
flats in east Singapore.
(6 Nov) – Faced with curbs on luxury residences and fundraising at home, China’s biggest mainland-listed
property developer is building apartments for wealthy Chinese in Singapore and
raising debt in the city’s currency.
China Vanke Co., which also plans developments in San Francisco and Hong
Kong, sold S$140 million ($113 million) of four-year notes with a 3.275 percent
coupon on Oct. 31, according to data compiled by Bloomberg. That’s a premium on
the average 1.8 percent coupon for Chinese bonds in the currency. The yield on
the company’s five-year U.S. dollar bonds fell 54 basis points since June, to
4.14 percent on Nov. 5, data compiled by Bloomberg show.
Vanke has teamed up with Keppel Land Ltd. for the development of 726 flats in
east Singapore as foreign
Chinese buyers have emerged as the top overseas buyers of residential property
in the city-state this year. Mainland builders are accelerating projects abroad
as people from the world’s most-populous country seek access to education,
healthcare and citizenship abroad, said London-based broker Savills Plc.
“Chinese developers have been looking offshore for funding for many years now
but there’s more impetus to do it now after the government turned the credit
taps off,” said James Macdonald, Shanghai-based head of research at Savills
China. “Being able to turn to overseas bond markets is important to Chinese
developers as these markets are not tied to government policy and prices are
dictated by the market.”
Read more:
http://www.bloomberg.com/news/2013-...inland-rich-funded-by-bonds-china-credit.html
