China SCE Property’s high yield issue
has carved-out permanent offshore non-guarantor subsidiaries
but included incurrence baskets slated for the same
subsidiaries. Giving the issuer both rights sets the deal apart
from other recent synthetic issuances by Chinese property
In January the issuer and its subsidiaries entered
an initial purchase agreement with Deutsche Bank and HSBC for
the issue of Rmb 2 billion ($300 million), dollar settled 10.5%
senior notes due 2016.
The offering arrived in the height of the offshore
synthetics fad, which in light of China’s clamp
down on inflation and remittance of funds in renminbi is
increasingly ambitious. It follows...