Chinese property developer tests investor appetite with new perpetuals

Author: | Published: 23 May 2011

A Beijing real-estate developer has tested investor appetite under China’s challenging credit environment, with a first-of-its-kind perpetual bond. .

Sino-Ocean Land this week unveiled its landmark $400 million perpetual subordinated capital securities issue, the first such issue by a Chinese property company. The initial 10.25% distribution, paid semiannually, is reset every 5 years to a rate equal to the total of the 5-year Treasury rate and any additional margins.