A deluge of issuers from mainland China, Hong Kong and Macau are storming back into the offshore dollar bond market this year, driving total issuance to its highest level since 2022, reports Bloomberg. Among them is Seazen Group Ltd., a struggling developer that tested the waters a few months ago with a $300 million deal—the first dollar-note sale by a major private-sector Chinese builder since 2023. A unit of the firm—once ranked among the nation’s 10 largest homebuilders by contracted sales—on Tuesday priced $160 million of two-year notes at a hefty 13% yield, according to a person familiar with the matter. Proceeds will be used to repay debt and for general corporate purposes.
The deal underscores the reopening of fundraising channels that had slammed shut during China’s unprecedented property crisis and economic slowdown. With the shifting interest-rate environment, companies are now able to refinance on more palatable terms and begin rebuilding trust in sectors many global investors had long considered untouchable.
Corporate issuers from mainland China, Hong Kong and Macau have increased dollar note sales 21% to $80 billion so far this year, the most for any similar period since 2022.