China’s third-largest developer is sustaining its pace of deal making even as bond investors start to price in a higher risk of default.
The yield spread on Greenland Holdings Corp.’s US$600 million ($814 million) 5.875% 2024 notes over U.S. Treasuries has widened 48 basis points this year to 405.
There is a 6.98% probability it will miss debt payments in the next 12 months, according to the Bloomberg Default Risk model that tracks metrics including share performance, debt and cash flow. While the risk of default has declined from a late-January peak of 8%, it’s the highest among the nation’s biggest developers.
Greenland announced 2 billion yuan ($418 million) in Chinese acquisitions since December -- after buying properties in Los Angeles and Toronto in a global push since 2012 -- and on Friday said it will list hotel-focused real estate investment trusts in Singapore.
China International Capital Corp. said the expansion had burdened Greenland with debt and that the company’s reputation could be damaged after a Caixin magazine report on March 1 that 20.5%-owned affiliate Shanghai Yunfeng Group Co. was in default.
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The yield spread on Greenland Holdings Corp.’s US$600 million ($814 million) 5.875% 2024 notes over U.S. Treasuries has widened 48 basis points this year to 405.
There is a 6.98% probability it will miss debt payments in the next 12 months, according to the Bloomberg Default Risk model that tracks metrics including share performance, debt and cash flow. While the risk of default has declined from a late-January peak of 8%, it’s the highest among the nation’s biggest developers.
Greenland announced 2 billion yuan ($418 million) in Chinese acquisitions since December -- after buying properties in Los Angeles and Toronto in a global push since 2012 -- and on Friday said it will list hotel-focused real estate investment trusts in Singapore.
China International Capital Corp. said the expansion had burdened Greenland with debt and that the company’s reputation could be damaged after a Caixin magazine report on March 1 that 20.5%-owned affiliate Shanghai Yunfeng Group Co. was in default.
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