Chinese developer Seazen raising $280 million via onshore bonds -term sheet

HONG KONG (Reuters) – Seazen Holdings, a large private property developer in China, is raising up to 2 billion yuan ($280 million) via onshore bonds, according to a deal term sheet and two sources with knowledge of the matter.

The three-year notes are expected to have a coupon of 3.5%-4.5% and will be guaranteed by state-owned China Bond Insurance Corp, the term sheet showed.

CITIC Securities is the lead underwriter for the deal, which is expected to be completed by end of this month, according to the document.

The sources were not authorised to speak to media and declined to be identified.

Seazen and CITIC did not respond to Reuters requests for comment.

Seazen, ranked No. 19 among Chinese private property developers in sales, according to real estate researcher CREIS, is one of a small number that have not defaulted on debt payment obligations.

It raised 850 million yuan via onshore bond issuance in July this year.

China’s highly indebted property sector has been reeling from a liquidity crunch since 2020. Defaults by developers since late 2021 have impeded economic growth, rattled global markets and have threatened a wider financial crisis.

Chinese regulators are drafting a list of 50 real estate developers eligible for a range of funding, Bloomberg News reported on Monday, citing people familiar with the matter.

The list, which includes both private and state-owned real estate developers, will guide financial institutions in providing support for the sector via bank loans, debt and equity financing, the report said.

($1 = 7.2111 Chinese yuan)

(Reporting by Xie Yu in Hong Kong and Hou Xiangming in Beijing; Editing by Sumeet Chatterjee and Edwina Gibbs)