Country Garden (COGARD) and China Merchants Bank (CMB) have entered into a “property merger and acquisition financing strategic cooperation agreement”. CMB will grant COGARD RMB 15bn ($2.4bn) for the latter’s property M&A business. Another property developer, Midea Real Estate said that they secured a similar deal from CMB worth RMB 6bn ($950mn). These come after Chinese authorities in December eased limits on borrowing by major property firms used to fund M&A in an effort to alleviate risks in the property sector.
Country Garden’s dollar bonds were trading weaker, with its 5.625% 2030s down 2.2 points to 60.25.
For the full story, click here