Shui On Development’s second round of
high yield bonds feature carve-out baskets on its covenant
package – a sign that covenants are becoming more
issuer-friendly on the burgeoning structure.
The company’s debut issue was launched
in December 2010, when it became the first ever synthetic high
yield renminbi bond to be sold in an offshore public market and
devised the now highly coveted structure.
The Rmb3.5 billion ($531 million), four-year renminbi
denominated and US dollar settled senior notes will have an
annual interest rate of 7.625%. Net proceeds amount to
approximately $520 million, which will be invested in temporary
cash investments to fund capital expenditures or repay existing
indebtedness. The Hong Kong-listed company has sought
application for the notes on the Singapore Securities