Kaisa Group issues US$400 million bonds tapping 144A market

Asian investors account for 58% of subscription orders while European and US investors account for 41%

Kaisa Group Holdings Limited (together with its subsidiaries, the “group”), a property developer established in Shenzhen with a nationwide presence in China, has successfully issued US$400 million 11.95% senior notes due October 2022.

Following a successful global non-deal roadshow in September, the offering received overwhelming responses from US and European investors, who accounted for over 40% of the transaction.

Asian, European and US institutions accounted for 58%, 23% and 19% of the subscription orders respectively. Over 81% of the notes were allocated to fund managers, with the remaining 14% and 5% going to financial institutions and private banks respectively.

Kaisa Group says, “This is the first time the company has issued senior notes under a 144A exercise since 2014 and it is also the first 144A issuance by a Chinese property developer since 2015. The offering helps the company enlarge its investor base and arouse US investors’ interest in both primary offering subscription and secondary market trading.”

“The offering will lengthen Kaisa’s debt maturity profile and support its liquidity profile. Looking forward, the group will continue to proactively manage its debt and optimize its debt structure through diversifying onshore and offshore financing channels in order to further reduce funding costs,” Kaisa Group adds.

Credit Suisse, Deutsche Bank, Barclays, BOC International, China CITIC Bank International and Haitong International are the joint global coordinators, joint bookrunners and joint lead managers of the notes issue. Fulbright Securities Limited and Kaisa Financial Group are the joint bookrunners and joint lead managers. The company intends to use the net proceeds of the offering to refinance its existing medium to long-term offshore indebtedness which will become due within one year.

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