Sunac China raised $552mn via a reopening or tap of their existing bonds. It raised:
- $342mn via a tap of their 5.95% 2024s at a yield of 5.85%, a massive 50bp inside initial guidance of 6.35% area. The bonds received orders over $1.1bn, 3.2x issue size. Asia took 97% and Europe 3%. Asset/fund managers were allocated 85%, private banks 14%, and banks and financial institutions 1%. Despite tighter pricing from initial guidance, the tap offers a new issue premium of 18bp over their initially issued 2024s that are currently yielding 5.67%
- $210mn via a tap of their 6.50% 2025s at a yield of 6.3%, a strong 45bp inside initial guidance of 6.75% area. The bonds received orders over $860mn, 4.1x issue size. Asia took 87% and Europe 13%. Asset/fund managers received 70%, private banks 20%, and banks and financial institutions 10%. The new 2025s also offer a new issue premium of 25bp over their initially issued 2025s yielding 6.05%.
The bonds have expected ratings of B1/B+/BB. Proceeds will be used for offshore debt refinancing.