Hydoo coughs up 13% yield on $130m exchange, new issue

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By Addison Gong
03 May 2018

There are two phrases that don’t often go together in the capital markets: ‘13% yield’ and ‘two year bond’. But that eye-watering funding cost was just what China’s Hydoo International Holding paid on its latest exchange offer, marking the highest yield for a dollar bond since 2015. Bankers think there will be plenty more where that came from, writes Addison Gong.

Property developer Hydoo switched holders of its existing $160m 13.75% December 2018 bond into a new two year this week. The deal, which had a 61.5% exchange rate, was the first exchange-plus-new-money offering in nearly a year, since China Evergrande Group and Kaisa Group Holdings’ ...

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