Country Garden raises $300m in high-yield bond issue

Guangzhou-based developer Country Garden has raised US$300 million in a five-year, high-yield bond issue, the South China Morning Post reported. About 45% of the money raised came from hedge funds and money investors, with the rest coming from insurance firms, private investors and commercial banks, a source familiar with the issuance said. Country Garden completed the bond issue in two days, which the source said indicates high investor interest in bonds. Ratings agency Moody’s said Country Garden had enjoyed stable sales performance despite a slow market, but indicated a negative outlook for the company’s bonds due to a lack of experience in developments outside Guangdong.