HONG KONG, March 9 (Reuters) - Shimao Property said on Friday it will issue 950 million yuan ($149.7 million) dim sum bonds, the fourth Chinese developer to sell the yuan-denominated bond offshore in two weeks.
Chinese developers are returning to the dim sum market after a 17-month pause as appetite for yuan offshore grows amid a tight onshore lending market, increasing U.S. dollar rates and rising yuan prospect.
“U.S. dollar issuance is virtually impossible under the large supply backdrop, plus offshore yuan got decent demand,” said Eva Lau, an investor relations manager at Shimao.
Shimao’s three-year dim sum bond, which will bear an interest rate of 5.75 percent, will be listed in Singapore.
Shimao said it plans to use the net proceeds outside China to refinance its existing debt and for business development and other general corporate purposes.
Shui On Land, a Hong Kong-based developer with a mainland focus, was the first to return to the dim sum market, a 1.6 billion yuan deal announced early last week. Since then, China Jinmao and Country Garden have also announced issuance. ($1 = 6.3470 Chinese yuan) (Reporting by Clare Jim; Editing by Gopakumar Warrier)