Powerlong offers negative premium on bond return

US dollar_Adobe_24July
By Morgan Davis
04 Aug 2020

Powerlong Real Estate Holdings received huge support from investors for its $200m bond on Monday. The deal’s modest size and expectations of limited imminent supply from Chinese property credits helped the firm get away with a negative new issue premium of about 10bp.

The borrower, which is rated B1/B+, has already visited the dollar market once this year. In June, the real estate company tapped its 6.95% 2023 bond for an additional $250m, taking the total deal size to $420m. The trade attracted more than $2bn at its peak.


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