Reorg Asia Credit Daily — China (Friday, May 20 2022)
Reorg Asia Credit Daily — China
China Bonds Up as Mortgage Reference Rate Cut
Chinese real estate high-yield prices rallied with the overall sector up two to three points today following the People’s Bank of China’s announcement earlier this morning that it would lower the five-year loan prime rate (LPR) by 15 bps to 4.45%. The five-year LPR is a reference rate for housing mortgages and the cut is seen as an effort by the central government to support the real estate market.
Country Garden Holdings’ $750 million 5.125% notes due 2025 were indicated up as much as five points to 73, its $700 million 3.3% notes due 2031 were up 2.5 pointsBlog to 57.5/58.5 and its $550 million 6.5% notes due 2024 were up four points to 80, according to two buysiders. As reported, the company’s onshore entity Country Garden Real Estate Co. has proposed to issue up to RMB 500 million ($74.9 million) 1+1+1 year corporate bond “22 Bidi 01” due May 24, 2025, with underwriters China Securities and China Securities Finance Corporation jointly providing credit default swap instruments as credit enhancement.
CIFI Holdings’ $555 million 6.55% senior notes due 2024 were up four points to 83/83.7, while its $150 million 4.8% notes due 2028 were up two points to 69, the buysiders said. According to reporting by onshore media outlet Cailianshe, CIFI also plans to issue domestic corporate bonds with credit default swap instruments.
Jinke Property is proposing to extend the principal payment of its RMB 1.25 billion ($184.1 million) corporate bond putable May 28 “20 Jinke 03” for 15 months, with 5%, 10%, 10%, 35% and 40% principal payment each quarter, respectively, according to two sources familiar with the matter. The company’s $325 million 6.85% notes due 2024 were indicated flat around 24. Onshore, its RMB 1.25 billion bond “20 Jinke 03” was indicated about 53.3 today, down 2.9 points, according to two buysiders.
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