January Property Market Review
[16 January 2020 - Hong Kong] – Kaisa Group, is pleased to announce its successful issue of USD300 million 9.95% senior notes due July 2025. The offering has received overwhelming responses from 85 institutional investors with over USD1.3 billion of book orders. Asian, European and offshore US accounted for 61%, 28% and 11% of the subscription orders respectively. Around 82% of the notes were allocated to fund managers, with the rest of 18% to private banks and others respectively.
Kaisa Group said, “The Company managed to issue another USD300 million deal right after its USD500 million one completed a week ago, which indicated the investors’ confidence in Kaisa. Compared with its USD500 million 10.5% 5-year notes issued on Jan 9, the tenor of these new notes has been extended by 0.5 years to 5.5 years, and interest cost has been reduced by 55 basis points to 9.95%, which showed the Company’s determination in reducing its financing cost and improving its maturity profile. The 5.5-year paper also achieved longest tenor after the Exchange Offer done in 2017.”
Credit Suisse, BOC International and Kaisa Financial Group are the joint bookrunners and joint lead managers of the transaction. The Company intends to use the net proceeds of the offering to refinance its existing medium to long term offshore indebtedness which will become due within one year.
[9 January 2020 - Hong Kong] – Kaisa Group, a property developer established in Shenzhen with a countrywide foothold in China, is pleased to announce its successful issue of USD500 million 10.5% senior notes due January 2025. The offering has received overwhelming responses from over 150 institutional investors with over USD2.8 billion of book orders. Asian and European accounted for 73% and 27% of the subscription orders respectively. Around 91% of the notes were allocated to fund managers, with the rest of 6% and 3% to banks and private banks respectively.
Credit Suisse, Deutsche Bank and Haitong International are the joint global coordinators, joint bookrunners and joint lead manager of the transaction; and BOC International, Barclays, China CITIC Bank International, Kaisa Financial Group, Fulbright Securities Limited and HeungKong Financial are the joint bookrunners and joint lead managers of the deal. The Company intends to use the net proceeds of the offering to refinance its existing medium to long term offshore indebtedness which will become due within one year.
