Investors demand premium from Aoyuan

China_property_Adobe_27July
By Morgan Davis
23 Feb 2021

China Aoyuan Group had to pay up to sell a $350m bond on Monday, as investors demanded compensation for the property company’s low rating and the deal’s long tenor.

Aoyuan, which is rated B1/B+/BB, announced its six non-call four year trade on Monday morning at the 6.2% area.

The borrower's $350m 6.2% 2026 notes were trading at a bid yield to maturity of 5.458% pre-announcement. Analysts at CreditSights used that as a reference point to ...

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