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Kaisa Hires Citi, UBS, Credit Suisse for Dollar Bonds

April 12 (Bloomberg) -- Kaisa Group Holdings Ltd., a property developer in China’s Pearl River Delta, hired Credit Suisse Group AG, Citigroup Inc. and UBS Group AG to help it sell senior notes denominated in U.S. dollars.

Proceeds from the bonds will be used to repay debt including an $86 million loan as well as to finance existing and new real estate projects, the company said in a statement to the Hong Kong stock exchange today.

Kaisa, which develops about 3 million square meters of land every year, according to its Web site, raised HK$3.45 billion ($445 million) in a Hong Kong initial share sale in December. The company has no syndicated loans or bonds outstanding, according to data compiled by Bloomberg.

Chinese developers are tapping capital markets to fund new projects as bank lending slows. Banks in China extended a less-than-estimated 510.7 billion yuan ($74.8 billion) of new loans in March after the central bank ordered them to set aside bigger reserves against losses and urged them to pace loan growth.

Moody’s Investors Service assigned a B1 rating to Kaisa and B2, the fifth-highest speculative-grade, to its notes.

“The bond rating has been lowered by one notch to reflect the risk of legal and structural subordination, as subsidiary and secured debt will still comprise more than 20 percent of the company’s total assets,” the risk assessor said in a statement.

Kaisa plans to meet investors in Asia, Europe and the U.S. this month, a person familiar with the matter said, asking not to be identified as the plan is private.

To contact the reporter on this story: Katrina Nicholas at knicholas2@bloomberg.net

To contact the editor responsible for this story: Will McSheehy at wmcsheehy@bloomberg.net

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