Regions

Modern Land offer attractive to investment hungry China

October 30
3:47 PM 2013

According to term sheet seen by FinanceAsia, Modern Land had priced a USD150 million five year note with an included callable option for the third year. This offered to investors an attractive yield pickup as investors grew weary for China property names.

The said transaction was B2/B rated Reg S registered executed within 10 hours. It also comes at the time when the ten year US Treasury yields have declined to just 2.48%, according to sources with knowledge of the deal.

The deal ended up pricing at 14% as the joint syndicates' strategy announced an initial price guiance of 14% based on healthy demand from investors. According to the source, who sought anonymity, "(The deal received) strong anchor orders of over USD100 million following a debut and extensive road show. Recent credit ratings by Moody's and Fitch further boosted investors' appetite."

The said bond offer received an order book of USD185 million from over 30 accounts. The majority of investors came from Asia, totalling 97.5% of orders booked while the remainder were for European investors.

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