Perenna Kei’s Logan Property may be headed into the bond market
She’s young, kinda hot, and would like you to lend her real estate company some cash.
Logan Property Holdings, the Shenzhen-based real estate developer which is controlled by property princess Perenna Kei is braving a skeptical market to test out a sale of dollar-denominated bonds.
According to a Bloomberg story, Logan is offering five-year notes with a yield of 11.25 to 11.375 percent. The sale comes during a slowdown in corporate bond issues by Chinese real estate developers since the failure of a Ningbo property firm in March, and an ongoing slide in the country’s real estate market.
Bloomberg data shows that the sale by Logan would be only the seventh such issue during Q2 2014, compared to 14 sales during the first quarter.
Beating Out Zuck’s Buddy to Become Youngest Billionaire
24-year-old Perenna became the world’s youngest billionaire last December, courtesy of her family company’s successful IPO on the Hong Kong stock exchange, and thanks to her father, Logan chairman and CEO Ji Haipeng, bequeathing 85 percent of his company stock to his daughter through a family trust.
The graduate of the University of London, who is a non-executive director of Logan, was born five years after the next youngest billionaire, Dustin Moskovitz, who co-founded Facebook with Mark Zuckerberg.
Developers Wading Back into the Bond Market
During the last 30 days China’s real estate developers have sidled back into the overseas bond markets, after the collapse of Zhejiang Xingrun Real Estate during March put a scare into investors.
State-run China Overseas Land and Investment priced a US$1 billion two-tranche bond on April 29th, and Shanghai-based residential developer Yanlord Land priced a S$400 million (US$319 million) three year security the same day.
Also, on April 30th, China Chengtong Development Group priced the first ever dim sum bond to use an RMB-denominated standby letter of credit (SBLC). The three year deal priced at 4% with a size of RMB 600 million ($96 million).
Country Garden Holdings delayed a bond issue earlier this month due to lack of investor interest, but later revived it after interest from a Hong Kong tycoon. Also, Hong Kong-listed developer Shui On Land successfully convinced investors earlier this month to exchange US$793 million of outstanding debt due next year for new bonds with maturities of four and six years, and for cash.
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