Deals
Dashed Dreams of Sunac Bailout Sends Kaisa Bonds Lower
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Kaisa Group Holdings Ltd.’s dollar bonds slid after Sunac China Holdings Ltd.’s announcement it would buy some of the company’s projects in Shanghai left it unclear whether more transactions between the two are still to come.
Kaisa’s $500 million of 10.25 percent 2020 notes fell 10.7 cents to 63.4 cents on the dollar as of 5:50 p.m. in Hong Kong, sending yields to 23.4 percent. Kaisa missed a $23 million interest payment on the securities last month, putting it at risk of becoming the first Chinese real estate company to default on its U.S. currency debt. Shares in Sunac remained suspended, prompting speculation talks are continuing.