LGFV bond hopes undimmed as market shrugs off default

By Addison Gong
23 Aug 2018

The first onshore China default from a local government financing vehicle (LGFV) has come as a shock to bankers and investors, but the negative news has not had a big impact on sentiment in the international bonds market. One LGFV sold a dollar bond this week and more are lining up, writes Addison Gong.

Hangzhou Jianggan District Urban Construction and Comprehensive Development Co, an LGFV, raised $200m from a capped three year transaction at 6.8% and at par on Monday, just a week after an onshore bond default by the Sixth Division State-Owned Asset Management of Xinjiang Production and Construction Corps (XPCC). ...

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