High-yield Chinese property developers raised more funds via shorter-term USD bonds so far in 3Q21 than through longer-term paper, reversing the trend in the previous two quarters, as the overall issuance volumes from the sector continued to slide amid troubles at China Evergrande Group.
So far in 3Q21, USD 3.97bn HY bonds with tenors of two years or less have been priced by Chinese developers, outpacing the USD 1.35bn with tenors of greater than four years. In the entire 2Q21, these figures were USD 3.32bn and USD 3.83bn, respectively, while for 1Q21, they were USD 4.49bn versus USD 6.57bn.
Kaisa Group raised USD 600m across three deals so far this quarter, all less-than-one-year notes. In 1H21, the developer raised USD 1.88bn from seven deals and all have tenors greater than two years. Shimao Group priced a USD 300m 3.975% two-year and USD 748m 5.2% five-year-four-months dual-tranche deal earlier this month, much shorter tenors compared with its USD 872m 3.45% due-2031s issued in January.
Chinese HY real-estate issuers priced USD 8.07bn notes so far this quarter, 28.4% lower than the USD 11.27bn printed in the whole of 2Q21, which itself was down 34.2% from USD 17.13bn raised in 1Q21.
