Evergrande’s Massive Bond Shows ‘Degree of Desperation’: Lucror

“They appear to be trying to get as much money as they can,” says Charles Macgregor, head of emerging markets at Lucror Analytics in Singapore. “We expect that other high yield borrowers could also be desperate for funds given the NDRC’s crackdown on US dollar issuance.”

 “Investors are facing indigestion after Evergrande’s jumbo sale and this could mean poor performance for following deals.”

“We expect that Evergrande’s revenue-to-debt ratio may improve but other metrics may stay the same or deteriorate.”

Evergrande’s 8.75% bonds quoted at 94.4 on Friday, below par re-offer, according to Bloomberg-compiled prices.

NOTE: Co. sold $3.8 billion of new issues; total came to $6.6 billion including bond exchanges

NOTE: China Evergrande 8NC4 Dollar Notes Plunge After Primary Fanfare

Bloomberg News
June 23, 2017, 01:30:59 GMT

Reporting by Denise Wee, Lianting Tu; Editing by Andrew Monahan and Ken McCallum