New carve-out in Chinese property
China SCE Propertys 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 developers.
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 Chinas clamp down on
inflation and remittance...