中国开发商新城控股下周将在海外发行3亿美元债券   2025-06-15

Seazen Group said it plans to issue US dollar bonds worth USD300 million next week to finance the repayment of two debts, making it the first private Chinese builder to tap the offshore market this year.

Seazen has set the initial yield guidance on the fixed-rate notes at 11.88 percent, the Shanghai-based issuer announced last Thursday. The proceeds of the sale, along with the company’s own funds, will be used to repay two USD300 million bond issues that mature in July and October.

The elevated yield reflects the group’s ongoing cash‑flow challenges. Net cash flow at Seazen Holdings, the unit overseeing its real estate business, tumbled 85 to CNY1.5 billion (USD210 million) last year and sank 91 percent last quarter from a year ago, while sales plunged 55 percent in the five months ended May 31.

Seazen’s dollar-denominated bond sale signals that Chinese regulators may be opening the offshore bond market to private developers, which should be broadly positive for the sector, according to a report by JPMorgan Chase. But for those builders permitted to issue such bonds, it may be more symbolic than transformative because only a restored operating cash flow can lead to a sustainable recovery.

Greentown China Holdings, which is backed by state-owned capital, issued two US dollar bonds in February worth USD500 million, with a coupon rate of 8.45 percent. It is the only Chinese developer to issue offshore bonds so far this year.

The yield on offshore bonds issued by Chinese builders averaged between 6 percent and 8 percent from 2020 to 2023, peaking in 2023, according to data from real estate research firm CRIC.

Seazen’s shares finished flat at HKD2.27 (29 US cents) each in Hong Kong last Friday. The stock has climbed 25 percent since the end of last year.

Source: Yicai Global